EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

38.5

Contract liabilities

Contract liabilities represent an entity’s obligations to provide customers with goods or services for which it has already been paid, or for which payment is due. Changes in contract liabilities were as follows:

Amounts cancelled during the period with no impact on sales

Amounts transferred to sales during the period

Amounts recorded during the period

Effect of unwinding the discount

Change in scope of consolidation

Foreign exchange effect

31/12/2019

31/12/2018

(in millions of euros)

Advance payments received

1,858

1,915

(1,992)

(37)

(1)

-

18

1,761

Deferred income on long-term contracts Other deferred income

3,413

476 413

(545) (481)

(2)

64

4

2

3,412

577

-

-

-

-

509

These liabilities comprise the majority of advances and progress payments received, amounting to €1,761 million (principally concerning the Framatome, United Kingdom and France – Regulated Activities segments), and the majority of deferred income (on long-term and other contracts), amounting to €3,921 million (principally concerning the France – Generation and Supply segment). They thus total €5,682 million at 31 December 2019 (€5,848 million at 31 December 2018).

Contracts expiring in more than one year on which obligations are unfulfilled or partially fulfilled at the reporting date should generate sales revenues of approximately €12,388 million which have not yet been recognised. €1,330 million of these sales revenues will be recognised progressively until 2034 on the Exeltium contract, and the balance will be recognised over the operating period for contracts relating to jointly-operated power plants, and over the term of the contract for other firm sale contracts (excluding energy sales).

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EDF | Universal registration document 2019