TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Net cash from discontinued operations 12.1.2.

2017

2016

(in million euros)

Profit (Loss) from discontinued operations

46

80

Summary adjustments to reconcile loss from discontinued operations to cash used in discontinued operations: Depreciation and Amortization

8 5

8

Impairment of assets

-

Net changes in provisions (Profit) / Loss on asset sales

12

9

-

1

Other non-cash items (including tax) (1)

3

88

Changes in working capital and other assets and liabilities (2)

(114)

13

Income tax paid

1

(39) 160

NET OPERATING CASH GENERATED FROM DISCONTINUES ACTIVITIES (I) NET INVESTING CASH USED IN DISCONTINUED ACTIVITIES (II)

(39)

(1)

1 7

Proceeds from borrowings Repayments of borrowings

3

(6) (3)

-

NET FINANCING CASH GENERATED IN DISCONTINUED ACTIVITIES (III)

7

NET CASH FROM DISCONTINUING ACTIVITIES (I+II+III)

(43)

168

In 2016, it Included non-cash impact of settlements accrued in 2016 but not yet paid, on some risk and litigation (mainly Cathode Ray Tubes case “CRT”). (1) In 2017, it includes €77 million of CRT cash impact. (2)

Assets & liabilities held for sale 12.2. A non-current asset (or disposal group) is classified as held for sale when its carrying amount will be recovered principally through a sale transaction rather than through continuing use. This means the asset (or disposal group) is available for immediate sale and its sale is highly probable. A non-current asset (or disposal group) classified as held for sale is measured at the lower of its fair value less costs to sell and its carrying amount. Any impairment loss for write-down of the asset (or disposal group) to fair value (less costs to sell) is recognized in the statement of operations.

As of December 31, 2017, assets and liabilities of Patent Licensing business, which are part of the transaction described in note 1.1, have been classified as assets and liabilities held for sale.

December 31, 2017

(in million euros)

Patents

7 7

Assets classified as held for sale Liabilities classified as held for sale*

68

Include payroll and deferred income in relation with patents to be transferred. *

As of December 31, 2016, there was no activity classified as held for sale.

248

TECHNICOLOR REGISTRATION DOCUMENT 2017