The IFRS-based 2011 and 2012 statements of cash flows published by the Danone Group, a French food processor, are provided in the following table. Briefly describe each of the line items, and comment on the company's cash management policies.

Supplemental disclosures

(a) Including net debt as of transfer date.
(b) DANONE call options purchased by the Company.
(c) On net debt.

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Consolidated Statement of Cash-Flows Year Ended December 31 Notes 2011 (in milions) Net income Share of profits of associates Dividends received from associates Depreciation and amortization Other components of net income with no cash impact Other components of net income with a cash impact Cash flows provided by operating activities, excluding 2012 1,855 (46) 30 637 63 1,787 (54) 35 670 113 (26) 2,443 (92) changes in net working capital (Increase) decrease in inventories (Increase) decrease in trade receivables Increase (decrease) in trade payables Change in other receivables and payables 2,525 49 274 62 Changes in working capital requirements Cash flows provided by (used in) operating activities Capital expenditure Proceeds from disposal of property, plant, and equipment Net cash outflow on purchases of subsidiaries and financial 306 73 162 2,605 (885) 152 26 2,858 (976) 193 investments (291) Net cash inflow on sales of subsidiaries and financial investments (Increase) decrease in long-term loans and other long-term 23 Cash flows provided by (used in) investing activities Increase in issued capital and additional paid-in capital Purchases of treasury shares (net of disposals) and of 26 (1,071) 37 35 DANONE call options Dividends paid to Danone shareholders Transactions with non-controlling interests Net cash-flows on hedging derivatives Bonds issued or raised during the period Bonds repaid during the period Increase (decrease) in other current and non-current (701) (835) (339) (70) 1,530 (173) 783) 19, 26 (20) 822 (912) 20 20 financial debt Increase (decrease) in short term investments Cash flows provided by (used in) financing activities Effect of exchange rate changes Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (100) (831) (1,484) (61) 242 1,027 1,269 20 (158) 23 (1,864) 26 (27) 1,054 1,027 Payments during the year of net interest . income tax 195 170 548 633