TELEPERFORMANCE_Registration_document_2017

CONSOLIDATED FINANCIAL STATEMENTS

7

7.6 Notes to the consolidated financial statements

7.6 Notes to the consolidated financial statements (in millions of euros)

CONTENTS OF THE NOTES TO THE CONSOLIDATED COMPAGNY FINANCIAL STATEMENTS

A. Principal accounting policies, judgements and estimates 173 Note A.1 Reporting entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Note A.2 Basis of preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Note A.3 Impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Note A.4 Determination of fair values . . . . . . . . . . . . . . . . . . . . . 174 Note A.5 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 B. Scope of consolidation 175 Note B.1 Accounting policies and methods . . . . . . . . . . . . . . . 175 Note B.2 Change in consolidation scope . . . . . . . . . . . . . . . . . . 176 C. Operational activity 177 Note C.1 Property, plant and equipment . . . . . . . . . . . . . . . . . . . 177 Note C.2 Other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Note C.3 Accounts receivable – Trade and Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Note C.4 Share-based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Note C.5 Short-term employee benefits . . . . . . . . . . . . . . . . . . . 182 Note C.6 Employee termination payments . . . . . . . . . . . . . . . . 182 Note C.7 Employee benefits – Defined contribution plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Note C.8 Other long-term employee benefits . . . . . . . . . . . . . 182 Note C.9 Accounts payable – Trade and Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Note C.10 Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 NOTE C.11 External expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 NOTE C.12 Other operating income and expenses . . . . . . . . . . 184 NOTE C.13 Segment reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 D. Goodwill 186 NOTE D.1 Accounting policies and methods . . . . . . . . . . . . . . . 186 NOTE D.2 Determination of the principal cash- generating units (“CGUs”) or groups of cash-generating units . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186

Treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190

NOTE F.2

NOTE F.3

Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190

G. Financial assets and liabilities

191

NOTE G.1

Accounting policies and methods . . . . . . . . . . . . . . . . 191

NOTE G.2

Financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

NOTE G.3

Financial result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

NOTE G.4

Financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

NOTE G.5

Foreign exchange hedging operations . . . . . . . . . . 194

NOTE G.6

Carrying amount and fair value of financial assets and financial liabilities by category . . . . . 196

NOTE G.7

Financial risk management . . . . . . . . . . . . . . . . . . . . . . 197

NOTE G.8

Exposure to exchange risk from translation of the financial statements of foreign subsidiaries on consolidation . . . . . . . . 199

NOTE G.9

Foreign currency exchange rates . . . . . . . . . . . . . . . . . 200

H. Cash flows

200

NOTE H.1

Non-cash items of income and expense . . . . . . . . 200

NOTE H.2

Change in working capital requirements . . . . . . . . 200

NOTE H.3

Acquisition of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . 200

NOTE H.4

Explanation of the change in net debt in 2017 . . . 200

NOTE H.5

Analysis of cash and cash equivalents presented in the consolidated statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

I.

Provisions, litigation, commitments and other contractual obligations

201

NOTE I.1

Accounting policies and methods . . . . . . . . . . . . . . . 201

NOTE I.2

Change in provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

NOTE I.3

Post-employment benefits: defined benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

NOTE I.4

Guarantees and other contractual obligations . 202

NOTE I.5

Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204

J. Related party disclosures

204

NOTE D.3

Determination of the recoverable amount of CGUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 Change in goodwill and Allocation of goodwill by CGU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 Sensitivity analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188

NOTE J.1

Related party transactions . . . . . . . . . . . . . . . . . . . . . . . 204

NOTE D.4

NOTE J.2

Remuneration of company officers (Executive Committee – Comex) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204

NOTE D.5

K. Audit fees of the statutory auditors of Teleperformance SE (excluding those paid to members of their international networks)

E. Income tax

188

NOTE E.1

Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

204

NOTE E.2

L. Events after the reporting date

204

F. Equity and Earnings per share

190

M. Scope of consolidation

205

NOTE F.1

Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190

172

Teleperformance bb - bb Registration documentbb 2017