technicolor - 2018 Registration document

FINANCIAL STATEMENTS

NOTE 12 DISCONTINUED OPERATIONS AND HELD FOR SALE OPERATIONS

12.1.2

NET CASH FROM DISCONTINUED OPERATIONS

December 31, 2018

2017*

(in million euros)

Profit (loss) from discontinuing activities

157

(5)

Summary adjustments to reconcile loss from discontinuing operations to cash used in discontinuing operations: Depreciation and amortization

1

8 5

Impairment of assets

4

Net changes in provisions

(15)

12

Profit (loss) on asset disposals (1) Other non-cash items (including tax)

(210)

-

10 50 (1)

3

Changes in working capital and other assets and liabilities

(113)

Income tax paid

6

NET OPERATING CASH GENERATED FROM DISCONTINUES ACTIVITIES (I) NET INVESTING CASH USED IN DISCONTINUED ACTIVITIES (II) (2)

(4)

(84)

115

(1)

Proceeds from borrowings Repayments of borrowings

-

3

(6)

(6)

NET FINANCING CASH GENERATED IN DISCONTINUED ACTIVITIES (III)

(6)

(3)

NET CASH FROM FROM DISCONTINUING ACTIVITIES (I+II+III) In 2017 amounts are re-presented according to IFRS 5. * In 2018, it includes the gain on sale of Patents Licensing business for €210 million. (1) In 2018, it includes the cash impact from the sale of Patents Licensing Business for €115 million. (2)

105

(88)

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

6

As of December 31, 2018, the assets and liabilities of the Patents Licensing division included in the transaction described under note 1.1 have been classified as assets and liabilities held for sale.

December 31, 2018 December 31, 2017

(in million euros)

Patents Assets classified as held for sale Liabilities classified as held for sale

28 51

7

68

As of December 31, 2018, assets and liabilities held for sale include: the assets and liabilities resulting from the cooperation agreement • with InterDigital, i.e. the deferred income corresponding to the services to be rendered by the research cooperation (€42 million);

the assets and liabilities of Research & Innovation activity. • As of December 31, 2017, the assets and liabilities of Patent Licensing business have been classified as assets and liabilities held for sale.

243

TECHNICOLOR REGISTRATION DOCUMENT 2018