AIRBUS - 2020 Financial Statement

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

Vehicle leases The Company leases cars for management and other functions. Vehicle leases typically run for an average period of three 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 compr ise contractual commi tments for future capi tal expenditures and contractual commitments for purchases of “Land, leasehold improvements and buildings including buildings on land owned by others” (€335 million as of 31 December 2020, 2019: €429 million).

22. Other Investments and Other Long-Term Financial Assets

31 December

2020 2,245

2019

(In € million)

Other investments

2,516

1,610

1,937

Other long-term financial assets

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

3,855

4,453

468

449

Current portion of other long-term financial assets

Total

4,323

4,902

Other investments mainly compr ise the Company’s participations and include the remaining investment in Dassault Aviation (9.90%, 2019: 9.90%) amounting to € 742 million at 31 December 2020 (2019: €968 million). In December 2019, a reassessment of the OneWeb financial assets was performed leading to a decrease in the fair value of the equity investment by €45 million recorded through OCI, and a depreciation of a loan by €31 million recorded through financial result. In March 2020, OneWeb Communications f i led under Chapter 11 of the US Bankruptcy Code. Consequently, the related financial assets were fully impaired, leading to a decrease in the fair value of the equity investment by € -137 million recorded through OCI and a depreciation of a loan by € -136 million recorded through financial result.

On 3 July 2020, OneWeb entered into an agreement with a consortium led by Her Majesty’s Government HMG and Bharti Global Limited for the acquisition of the OneWeb business in connection with its court-supervised sale process. On 20 November 2020, OneWeb announced the achievement of all regulatory approvals together with its emergence from Chapter 11 of the US Bankruptcy Code. The completion of the transaction has no material impact on the Consolidated Financial Statements as of 31 December 2020. Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of €1,841 million as of 31 December 2020 (2019: € 2,036 million), and the sales financing activities in the form of finance lease receivables and loans from aircraft financing.

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23. 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.

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Airbus / Financial Statements 2020