Areva - Reference Document 2016

20

20.2 Notes to the consolidated financial statements for the year ended December 31, 2016 FINANCIAL INFORMATION CONCERNING ASSETS, FINANCIAL POSITION AND FINANCIAL PERFORMANCE

NOTE 13. END-OF-LIFECYCLE OPERATIONS

The table below summarizes the AREVA group accounts affected by the treatment of end-of-lifecycle operations and their funding.

December 31, 2016

December 31, 2015

Shareholders’ equity and liabilities (in millions of euros)

December 31, 2016

December 31, 2015

Assets (in millions of euros)

End-of-lifecycle assets – AREVA share (1) Assets earmarked for end-of-lifecycle operations 1 End-of-lifecycle assets – third party share (2)

-

322

-

-

6,300 Provisions for end-of-lifecycle operations

-

6,921

-

178

funded by third parties (2)

-

178

1

Assets earmarked for end-of-life cycle operations (3)

1

-

6,122

funded by AREVA

-

6,743

1

(1) Amount of total provision to be funded by AREVA still subject to amortization. (2) Amount of the provision to be funded by third parties. (3) Portfolio of financial assets and receivables earmarked to fund AREVA’s share of the total provision.

END-OF-LIFECYCLE ASSETS

Continuing operations

Net carrying amount at December 31, 2015

Net increase in depreciation, amortization and provisions

Net carrying amount at December 31, 2016

Other changes

Operations held for sale

(in millions of euros)

Increase Decrease

Unwinding

AREVA share

322 178 500

196

(11) (57) (68)

(23)

-

24

(509) (127) (635)

- - -

Third party share

-

-

4 4

2

TOTAL

196

(23)

26

Operations held for sale The group’s share of assets is classified under property, plant and equipment on the statement of financial position (see note 12). In addition to the value of its property, plant and equipment, the group recognizes the future share of the costs of end-of-lifecycle operations (nuclear facility dismantling, legacy waste retrieval and packaging, waste shipping and waste disposal) for which it has financial responsibility; the group’s share is amortized according to the same schedule as the underlying property, plant and equipment. It also recognizes a third party share of assets for dismantling and waste retrieval and packaging operations to be funded by certain customers. Conversely, a provision is recorded to cover

the total estimated cost of end-of-lifecycle operations as soon as a facility starts up, including any share funded by third parties. The third-party share remaining in the end-of-lifecycle assets mainly corresponds to the funding expected from CEA for its share of funding for the Pierrelatte site. In 2016, this item decreased due to work performance and the transfer of certain contracts to dismantling receivables. The increase in the group’s share of assets, which concerns the operating facilities, is mainly due to the change in the discount rate applied by the group (from 4.50% to 4.10%).

PROVISIONS FOR END-OF-LIFECYCLE OPERATIONS

Continuing operations

Reversals (when risk has materialized): expenses for the

Net carrying amount at December 31, 2015

Change in assumptions, revised budgets, etc.

Net carrying amount at December 31, 2016

Operations held for sale

(in millions of euros)

year Unwinding

Provision for nuclear facility dismantling Provision for waste retrieval and packaging

4,939 1,982 6,921

(140)

156

326 102

(5,281) (2,061)

- - -

(87)

65

PROVISIONS FOR END-OF-LIFECYCLE OPERATIONS

(227)

221

428 (7,342)

215

2016 AREVA REFERENCE DOCUMENT