technicolor - 2018 Registration document

6 FINANCIAL STATEMENTS

NOTE 6 PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

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.

Intangible assets

Tangible assets

(in million euros)

At December 31, 2017, Net

9

3

Cost

27

17

Accumulated depreciation

(18)

(14)

Acquisitions

2

- -

Disposals (net of cumulated amortization) Depreciation and amortization AT DECEMBER 31, 2018, NET

(1) (2)

(3)

8

- - -

Cost

20

Accumulated depreciation

(12)

Following transfer of Group headquarter from Issy-les-Moulineaux to Paris, related tangible assets have been scrapped. As Technicolor SA sub-rents only a portion of the new Headquarter to one of its subsidiaries, no tangible assets were recognized in its balance sheet.

Tangible assets were consisting mainly of furniture and expenses for setting up and remodeling the head office in Issy-les-Moulineaux. They had been amortized over nine years, the lease term for the building, on a straight-line basis.

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TECHNICOLOR REGISTRATION DOCUMENT 2018