TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS Notes to the Parent Company Financial Statements

PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS NOTE 6.

INTANGIBLE ASSETS Intangible assets consist mainly of capitalized IT development projects, the cost of software, trademarks and rights to use patents. Ongoing software development projects are classified under “Intangibles in progress”. Once development is achieved, the software is capitalized or delivered to the subsidiaries concerned. Software developed or used internally is amortized from the date of use. Other IT development costs are capitalized and amortized on a straight-line basis over a maximum of three years, with some exceptions. Minor IT expenses are amortized over the financial year they are put in use. Software acquired or developed as well as licenses are amortized on a straight-line basis over the duration of their protection or over their useful life, whichever is shorter. TANGIBLE ASSETS Tangible assets consist mainly of furniture and expenses for setting up and remodeling the head office in Issy-les-Moulineaux. They are amortized for the most part over nine years, the lease term for the building, on a straight-line basis.

Intangible assets

Tangible assets

(in million euros)

At December 31, 2016, Net

9

3

Cost

26

15

Accumulated depreciation

(17)

(12)

Acquisitions

1

2

Depreciation and amortization AT DECEMBER 31, 2017, NET

(1)

(2)

9

3

Cost

27

17

Accumulated depreciation

(18)

(14)

266

TECHNICOLOR REGISTRATION DOCUMENT 2017