AIRBUS - 2019 Financial Statements

2.5 Operational Assets and Liabilities Notes to the IFRS Consolidated Financial Statements /

Vehicle Leases The Company leases cars for management and other functions. Vehicle leases typically run for an average period of 3 years and do not provide renewal options. Other Leases The Company also leases IT equipment, machinery and other equipment that combined are insignificant to the total leased asset portfolio.

Off-Balance Sheet Commitments Commitments related to property, plant and equipment comprise contractual commitments for future capital expenditures and contractual commitments for purchases of “Land, leasehold improvements and buildings including buildings on land owned by others” (€429 million as of 31 December 2019, 2018: €256 million).

21. Other Investments and Other Long-Term Financial Assets

31 December

2019

2018

(In € million)

Other investments

2,516

2,267

1,937

1,544

Other long-term financial assets

4,453

3,811

Total non-current other investments and other long-term financial assets

Current portion of other long-term financial assets

449

489

Total

4,902

4,300

Other investments mainly comprise the Company’s participations. The significant participations at 31 December 2019 include the remaining investment in Dassault Aviation (9.90%, 2018: 9.89%) amounting to € 968 million (2018: €999 million).

Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of € 2,036 million as of 31 December 2019 (2018: € 1,523 million), and the sales financing activities in the form of finance lease receivables and loans from aircraft financing.

22. Contract Assets and Contract Liabilities, Trade Receivables and Trade Liabilities

Contract assets represent the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditioned by something other than the passage of time ( e.g. revenue recognised from the application of the PoC method before the Company has a right to invoice). Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration, or for which an amount of consideration is due from the customer ( e.g. advance payments received). Net contract assets and contract liabilities are determined for each contract separately. For serial contracts, contract liabilities are presented in current contract liabilities, if revenues are expected within the next twelve months or material expenses for the manufacturing process have already occurred. For long- term production contracts ( e.g. governmental contracts such as

A400M, Tiger, NH90), contract liabilities are classified as current when the relating inventories or receivables are expected to be recognised within the normal operating cycle of the long-term contract. Trade receivables arise when the Company provides goods or services directly to a customer with no intention of trading the receivable. Trade receivables include claims arising from revenue recognition that are not yet settled by the debtor. Trade receivables are initially recognised at their transaction prices and are subsequently measured at amortised cost less any allowances for impairment. Gains and losses are recognised in the Consolidated Income Statement when the receivables are derecognised, impaired or amortised. Impairment and allowances of trade receivables and contract assets are measured at an amount equal to the life- time expected loss as described in “– Note 37: Information about Financial Instruments”.

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Airbus / Financial Statements 2019