SCH2017_DRF_EN_Livre.indb

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Consolidated financial statements at December 31, 2017 Notes to the consolidated financial statements

Other operating income and expenses

NOTE 6

Other operating income and expenses break down as follows:

Full year 2017

Full year 2016

Impairment losses on assets Gains on asset disposals Losses on asset disposals

(92) 108

(87)

8

(8)

(42) (36)

Costs of acquisitions

(75) 103 (51) (15)

Pension plan curtailments and settlements

31 63

Others

OTHER OPERATING INCOME AND EXPENSES

(63)

In 2017, gains on asset disposals mostly include the impact of the disposal of Telvent DTN business. The line “Pension plan curtailments and settlements” includes mainly provision releases in the USA and France in 2017; and in 2016 in the USA and Switzerland.

The costs of acquisitions are the costs of acquisition, integration and separation related tomajor acquisitions and disposals from2016 to 2017. Others in 2017 includes mainly provisions for litigation on non- operating expenses. Others in 2016 includes mainly the release of a provision against a legal claim which was settled in the first half of 2016.

Restructuring costs

NOTE 7

Restructuring costs totalled EUR286 million over the period. They mainly relate to industrial and support function reorganizations in all geographies.

Amortization and impairment of purchase accounting intangibles

NOTE 8

Full year 2017

Full year 2016*

Amortization of purchase accounting intangibles Impairment of purchase accounting intangibles

(117)

(151)

(23)

-

AMORTIZATION AND IMPAIRMENT OF PURCHASE ACCOUNTING INTANGIBLES

(140)

(151)

* 2016 figures were restated for discontinued operations disclosed in note 1.

Impairment tests performed in 2017 have not led to impairment losses being recognized on the CGUs’ other assets. The sensitivity analysis on the test hypothesis shows that no impairment losses would be recognized in the following scenarios:

E a 0.5 point increase of the discount rate; E a 1.0 point decrease in the growth rate; E a 0.5 point decrease in the margin rate.

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