TELEPERFORMANCE_Registration_document_2017

CONSOLIDATED FINANCIAL STATEMENTS

7.6 Notes to the consolidated financial statements

NOTE C.2 Other intangible assets

Amortization Amortization is charged to the statement of income on a straight-line basis over the estimated useful lives of intangible assets unless such lives are indefinite. Other intangible assets are amortized from the date on which they are available for use. The estimated useful lives are as follows:

These mainly include:

■ brand names, customer relationships and technologies measured and recognized as part of a business combination; ■ software acquired by the Group with a finite useful life, which is recognized at cost less accumulated depreciation and impairment losses (see accounting policy, notebA.3 Impairment ). Expenditure relating to internally generated brands is expensed when incurred. Subsequent expenditure Subsequent expenditure on intangible assets is capitalized only when it increases the future economic benefits of the specific asset. All other costs are expensed as incurred.

Software

3 to 6byears 3 to 10byears 9 to 15byears

Brand names

Customer relationships

Other intangible assets are analyzed as follows:

Brand names and customer relationships

Gross

Software

Other

Total

AT DECEMBERb31 ST , 2015 Change in consolidation scope

157

331 808

2

490 878

70

b

Transfer Increase Decrease

3

b b b

-1

2

14

b b b

14

-5

-5

Translation differences AT DECEMBERb31 ST , 2016 Change in consolidation scope

6

58

64

245

1,197

1 2

1,443

b

b b b b

2

Transfer Increase Decrease

21 12

b b b b

21 12

-28 -21

-28

Translation differences AT DECEMBERb31 ST , 2017

-144

-165

229

1,053

3

1,285

Brand names and customer relationships

Accumulated amortization and impairment

Software

Other

Total -209

AT DECEMBERb31 ST , 2015

-122

-86

-1

7

Transfer Expense Decrease

-3

b

1

-2

-19

-42

b b b

-61

5

b

5

Translation differences AT DECEMBERb31 ST , 2016

-3

-1

-4

-142

-129

0

-271

Transfer Expense Decrease

-15 -30

b

-2 -1

-17

-108

-77

28 10

b

b b

28 29

Translation differences AT DECEMBERb31 ST , 2017

19

-149

-187

-3

-339

Brand names and customer relationships

Carrying amount

Software

Other

Total

AT DECEMBERb31 ST , 2015 AT DECEMBERb31 ST , 2016 AT DECEMBERb31 ST , 2017

35

245

1 1 0

281

103

1,068

1,172

80

866

946

At Decemberb31 st , 2017, brand names and customer relationships amounted to €87.6bmillion and €778.8bmillion, respectively. Following the acquisition of LanguageLine Solutions LLC in 2016, a total amount of €866.6bmillion was allocated to the brand name, the customer relationships and the technologies developed

internally. It was determined, after analysis, that the LLS brand name has an indefinite life and it is therefore not amortized. The carrying amount of this asset at Decemberb31 st , 2017bwas €87.6bmillion.

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Teleperformance bb - bb Registration documentbb 2017