EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Notes to the consolidated financial statements

ASSETS (in millions of euros)

Provisional opening values

Goodwill

-

Other intangible assets

1,236 1,100

Property, plant and equipment

Investments in associates and joint ventures

92

Financial assets

176 131 565

Deferred tax assets

Inventories

Trade receivables Current tax assets Other receivables

4,427

5

613

Cash and cash equivalents

-

8,345

TOTAL ASSETS

EQUITY AND LIABILITIES (in millions of euros)

Provisional opening values

Capital

707 103 810

Consolidated reserves Equity – Group share Non-controlling interests

10

820 984

TOTAL EQUITY

Provisions

Financial liabilities

12

Deferred tax liabilities

141 460

Trade payables

Current tax liabilities

1

Other liabilities

5,927 8,345

TOTAL EQUITY AND LIABILITIES

net deferred taxes, in the amount of €(131) million. ■ Revaluation of deferred taxes only concerned the tax effects associated with fair value adjustments applied for the purposes of determining the opening balance sheet (€554 million before tax). The main assumptions to which these opening balance sheet assets and liabilities are sensitive are: the royalty rate used to value the Framatome brand and the technology; ■ the margin rate; ■ the discount rate applied to future cash flows; ■ the attrition rate for customer contracts. ■

This balance sheet for the Framatome subgroup is presented before elimination of positions with Group entities, which mainly concern trade receivables and other liabilities. The main restatements resulting from fair value adjustments of the assets acquired and liabilities assumed concern intangible assets and affect the following items: fair value adjustment of intangible assets in the amount of €554 million, ■ comprising: €132 million for the Framatome brand, valued by the royalty relief method. ■ This brand is considered to have an indefinite useful life, €156 million for customer relations, valued by the excess earnings method. ■ When AREVA created the target Framatome group, some customer relations were stated at their real value of €246 million, leading to a total value of €402 million for customer relations. The useful life of these customer relations was determined for each business unit, giving an average of around 11 years, €266 million for technology, valued by the royalty relief method: codes and ■ methods, EPR technology, software, products, patents and trade secrets. When AREVA created the target Framatome subgroup, some of the technology was stated at its real value of €436 million, leading to a total value of €702 million for technology. The useful life of this technology was determined for each business unit, giving an average of 15 to 20 years;

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EDF I Reference Document 2017