TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS

Notes to the consolidated financial statements

OTHER OPERATING INFORMATION NOTE 5. Operating assets & liabilities 5.1. Non-current operating assets & liabilities 5.1.1. (in million euros)

2017

2016

Customer contract advances and up-front prepaid discount

10 28

24 32

Other

OTHER OPERATING NON-CURRENT ASSETS Payable on acquisitions of business & fixed assets

38

56

(32)

(50) (65) (38)

Deferred income

(2)

Other

(25)

OTHER OPERATING NON-CURRENT LIABILITIES

(59)

(153)

As part of its normal course of business, Technicolor makes cash (generally from 1 to 5 years). The contracts contain provisions that advances and up-front prepaid discount to its customers, principally establish pricing terms for services and volumes to be provided and within its Entertainment Services segment. These are generally in the other terms and conditions.

framework of a long-term relationship or contract and can take different forms. Consideration is typically paid as an advance to the customers in return for the customer’s various commitments over the life of the contracts. These contracts award to the Group a customer’s business within a particular territory over the specified contract period

Such advanced payments are classified under “Non-current assets”, recorded as “Contracts advances and up-front prepaid discount” and are amortized as a reduction of "Revenues" on the basis of units of production or film processed.

Inventories 5.1.2. Inventories are valued at acquisition or production cost. The production costs include the direct costs of raw materials, labor costs and a part of the overheads representative of the indirect production costs, and exclude general administrative costs. The cost of inventory sold is determined based on the weighted average method or the FIFO (first in – first out) method, depending on the nature of the inventory. When the net realizable value of inventories is lower than its carrying amount, the inventory is written down by the difference.

2017

2016

(in million euros) Raw materials

38 10

40 42

Work in progress

Finished goods and purchased goods for resale

214 262 (24) 238

179 261 (27) 234

Gross value

Less: valuation allowance TOTAL INVENTORIES

206

TECHNICOLOR REGISTRATION DOCUMENT 2017