PSA_GROUP_REGISTRATION_DOCUMENT_2017
CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2017 Notes to the consolidated financial Statements at December 2017
USE OF ESTIMATES 1.2. AND ASSUMPTIONS
plant and equipment (see Note 8.3), and the recoverable amount of investments in companies at equity (see Note 11.3); provisions (particularly restructuring provisions, pensions, warranty provisions for new cars as well as claims and litigation) (see Note 5.4.B, Note 7.1 and Note 10); sales incentives (see Note 5.1.A); residual values of vehicles sold with buyback commitment (see Note 8.2.C and Note 9.2); deferred tax assets (see Note 14). PERFORMANCE INDICATORS 1.3. In its financial communications, the Group publishes performance indicators that are not directly discernible from the summary consolidated financial statements. The main indicators defined in the notes to the financial statements are as follows: recurring operating income (loss) by segment (see Note 4.1 and Note 5); free cash flow and Operating free cash flow (see Note 16.5); net financial position (see Note 12.3); financial security (see Note 12.4).
The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions in order to determine the reported amounts of certain assets, liabilities, income and expense items, as well as certain amounts disclosed in the notes to the financial statements relating to contingent assets and liabilities. The estimates and assumptions used are those deemed by management to be the most pertinent and accurate in view of the Group’s circumstances and past experience. Estimates and assumptions are reviewed periodically. Nevertheless, given the uncertainty inherent in any projections, actual results may differ from initial estimates. For the preparation of the 2017 annual financial statements, special attention was paid to the following items: fair value of the assets acquired and liabilities assumed in the course of a business combination (see Note 2 on the acquisition of the Opel Vauxhall operations); the recoverable amount of the Peugeot Citroën DS and Opel Vauxhall Automotive Divisions intangible assets and property,
ACQUISITION OF THE OPEL VAUXHALL BUSINESS
NOTE 2
Description of the transaction A. The transaction includes the bulk of Opel Vauxhall’s automotive business, comprising the Opel and Vauxhall brands, six assembly and five component-manufacturing facilities, one engineering centre (Rüsselsheim in Germany). Opel Vauxhall will also continue to benefit from intellectual property licenses from GM until its vehicles progressively convert to Groupe PSA platforms over the coming years. The purchase price paid by Groupe PSA, for the automotive business of Opel and Vauxhall was €1,018 million (see details in 2.1.F).
On 6 March 2017, General Motors Co. (GM) and Groupe PSA signed an agreement for the acquisition of a majority interest in the Opel Vauxhall subsidiaries of General Motors and the European operations of GM Financial in partnership with BNP Paribas. These transactions were finalised in the second half of 2017 as follows. 2.1. ACQUISITION OF THE AUTOMOTIVE BUSINESS OF OPEL VAUXHALL On 31 July 2017, Groupe PSA completed the acquisition of Opel’s and Vauxhall’s automotive subsidiaries from GM.
Opening balance sheet B.
31 July 2017
(in million euros)
Purchase price
1,018 1,792 1,577
Intangible assets acquired
Property, plant and equipment acquired Other non-current assets acquired
517
Current assets acquired
4,120
Cash acquired
301
Provisions assumed
(1,390) (785) (3,171) (3,753)
Financial liabilities assumed Trade payables assumed Other liabilities assumed
Assets acquired and liabilities assumed
(792) 1,810
GOODWILL
169
GROUPE PSA - 2017 REGISTRATION DOCUMENT
Made with FlippingBook - Online catalogs