Areva - Reference Document 2016

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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 26. ADVANCES AND PREPAYMENTS RECEIVED

CONTINUING OPERATIONS

(in millions of euros)

December 31, 2016 December 31, 2015

Advances and prepayments on orders

30

1,868 1,026 2,895

Customer advances and prepayments invested in non-current assets

-

TOTAL

30

At December 31, 2016, advances and prepayments by maturity were as follows:

less than 1 year:

18 million euros 12 million euros

p

1-5 years:

p

p more than 5 years: - million euros

OPERATIONS HELD FOR SALE

(in millions of euros)

December 31, 2016 December 31, 2015

Operations held for sale in 2015 New NP

1,391

1,417

AREVA TA

280

265

Nuclear Measurements

-

10

Sub-total

1,672

1,692

Operations held for sale in 2016 NewCo

2,874 4,545

TOTAL (*) * see note 3.

1,692

This account comprises non-interest-bearing operating and Capex advances and prepayments received from customers pursuant to contractual commitments. The advances and prepayments are reimbursed by deduction from the revenue generated under these contracts, which primarily concern sales of fuel and uranium, and used fuel treatment and recycling. Interest-bearing advances are recognized in borrowings. Only advances and prepayments effectively collected are recognized as a liability.

Trade advances and prepayments on orders correspond to amounts received from customers under contracts that do not finance significant non-current assets. In the case of long-term contracts, the amount recorded on the balance sheet represents the net balance of advances and prepayments received and revenue invoiced or recognized on a percentage of completion basis; it also includes interest income calculated on cash surpluses generated by these advances and prepayments, the amount of which is determined contract by contract. Customer advances and prepayments invested in non-current assets correspond to amounts received from customers and used to finance capital expenditures for the performance of long-term contracts to which they have subscribed.

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2016 AREVA REFERENCE DOCUMENT