technicolor - 2019 Universal registration document

FINANCIAL STATEMENTS INCOME TAX

6.2.1

CHANGE IN NET DEFERRED TAXES

Total, net deferred tax assets

Deferred tax assets

Deferred tax liabilities

(in million euros)

Year ended December 31, 2017

275 (54) (10) 210

(193)

82

Changes impacting continuing profit or loss

(1)

(55)

Other movement

1

(9)

Year ended December 31, 2018

(193)

17

Changes impacting continuing profit or loss

33

(26) 192 (27)

7

Other movement (1)

(191)

1

YEAR ENDED DECEMBER 31, 2019

52

25

Mainly set off of deferred tax assets and liabilities of same maturities by taxable entity. (1)

As of December 31, 2019, the net deferred tax assets of €25 million mainly relate to the recognition of losses carried forward in Australia, Canada, India, Mexico and Poland. Net deferred tax assets amounted to €17 million as of December 31, 2018. This increase was primarily due to the changes in the projections of our activities in Australia and Mexico.

6.2.2

SOURCE OF DEFERRED TAXES

2019 1,278

2018 1,365

(in million euros)

Tax losses carried forward

Tax effect of temporary differences related to: Property, plant and equipment

20 10

21 13

Goodwill

Intangible assets

(86)

(101)

Investments and other non-current assets

3 7

(3)

Inventories

8

Receivables and other current assets

19

18

Borrowings

142

131

Retirement benefit obligations

59

51

Restructuring provisions

3

6

Other provisions

19 38

22 40

Other liabilities current and non-current Total deferred tax on temporary differences Deferred tax assets/(liabilities) before netting Valuation allowances on deferred tax assets NET DEFERRED TAX ASSETS/(LIABILITIES)

6

234

206

1,512

1,571

(1,487)

(1,554)

25

17

Technicolor benefits, from tax losses carried forward in countries where the Group still conducts business, amount to €3.6 billion. These losses mainly arise from France (€1.8 billion) and the United States (€1.6 billion). In the United States, they will expire mainly after 2024.

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