Universal Registration Document 2021
3 RISKS, LITIGATION, AND CONTROLS RISK FACTORS
IMPAIRMENT OF NON-CURRENT ASSETS, INCLUDING GOODWILL
Risk identification
Risk monitoring and management
The Group’s management periodically assesses the carrying amount of the tangible and intangible assets using certain key assumptions, including budgeted data, cash flow projections and growth rates. The Group assesses the carrying amount of these assets more frequently if events or changes in circumstances indicate that their carrying amounts may not be recoverable.
If management’s estimates change or market conditions adversely evolve, the estimate of the recoverable value of the Group’s assets could decrease significantly. If the Group does not generate revenues from its businesses as anticipated, the businesses may not generate sufficient positive Operating Cash Flows. This, or other factors, may lead to a decrease in the value of the Group’s intangibles assets, including goodwill, resulting in impairment charges, which could have a material adverse effect on the Group’s results of operations or financial position. At December 31, 2021, the Group’s accounted for €773 million of goodwill and €510 million of intangible assets. In 2021, the Group did not identify any triggering event leading to an impairment charge (see note 4.5 to the Group’s consolidated financial statements). The Group may experience significant further impairment charges in future periods, particularly in the event the markets for the Group’s products and services experience further deterioration. For additional information on the impairment tests, see note 4.5 to the Group’s consolidated financial statements.
RESTRUCTURING PLAN
Risk identification
Risk monitoring and management
Panorama actions plans and related savings and costs are closely monitored by a Steering Committee. Each of the divisions CEOs and CFOs have set up specific plans with sufficient granularity to ensure a strict and timely monitoring of the plan’s execution. These granular plans by the divisions have been reviewed in detail by the Group COO and CFO. On a monthly basis, the COO is reviewing with each division’s management the progress and execution of the plan. When a deviation is observed, actions steps are taken to mitigate the risk of missing savings or additional restructuring costs. Every month, the plans are consolidated and reviewed by the Group CEO.
Panorama restructuring plan will lead to major costs savings and transformation throughout the Group. Risk of inefficiencies in executing or monitoring the implementation of the plan may result in unexpected restructuring expenses or lower than planned costs savings resulting in potential lower profitability of some business division(s) of the Group.
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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021
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