AIRBUS - 2019 Financial Statements

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

Contract Assets, Contract Liabilities and Trade Receivables Significant changes in contract assets and contract liabilities during the period are as follows:

2019

2018

Contract assets

Contract liabilities

Contract assets

Contract liabilities

(In € million)

Revenue recognised that was included in the contract liability balance at 1 January Increases due to cash received, excluding amounts recognised as revenue Transfers from contract assets recognised at 1 January Increase as a result of changes in the measure of progress

-

(37,303)

-

(23,464)

-

38,312

-

23,472

(3,436)

- -

(2,740)

- -

3,941

3,074

As of 31 December 2019, trade receivables amounting to €203 million (2018: € 583 million) will mature after more than one year. The respective movement in the allowance for doubtful accounts in respect of trade receivables and contract assets during the period was as follows:

2019

2018

(In € million)

Allowance balance at 1 January

(269)

(252)

0

(5)

Foreign currency translation adjustment

39

28

Utilisations / disposals and business combinations

(167)

(40)

Additions

Allowance balance at 31 December

(397)

(269)

Trade Liabilities Trade liabilities of €14,808 million (2018: €16,237 million) decreased by € -1,429 million, mainly in Airbus. As of 31 December 2019, trade liabilities amounting to €107 million (2018: €29 million) will mature after more than one year.

2

23. Inventories

31 December 2019

31 December 2018

Gross amount

Write- down

Net book value

Gross amount

Write- down

Net book value

(In € million)

Raw materials and manufacturing supplies

3,860

(581)

3,279

3,827

(554)

3,273

22,553

(2,034)

20,519

23,119

(1,476)

21,643

Work in progress

4,729

(617)

4,112

3,949

(555)

3,394

Finished goods and parts for resale

3,704

(64)

3,640

3,631

(50)

3,581

Advance payments to suppliers

Total

34,846

(3,296)

31,550

34,526

(2,635)

31,891

Inventories of €31,550 million (2018: €31,891 million) decreased by € -341 million. This is driven by Airbus (€ -338 million) and Airbus Defence and Space (€ -651 million), partly offset by an increase at Airbus Helicopters (€+578 million). In Airbus, the decrease reflects a lower work in progress associated with the widebody programmes partly compensated by a higher work in progress associated with A320 programme. In Airbus Defence and Space, the reduction is mainly driven by a decrease in work in progress for the A400M reflecting the netting inventories with the respective portion of the onerous contracts provision. In Airbus Helicopters, the increase reflects higher inventory associated with the Super Puma programme.

In 2019, write-downs of inventories in the amount of € -1,071 million (2018: € -883 million) are recognised in cost of sales, whereas reversal of write-downs amounts to €55 million (2018: €264 million). At 31 December 2019, €19,448 million of work in progress and €3,901 million of finished goods and parts for resale were carried at net realisable value. Inventories recognised as an expense during the period amount to €50,888 million (2018: €44,437 million).

41

Airbus / Financial Statements 2019