technicolor - 2019 Universal registration document

FINANCIAL STATEMENTS FINANCIAL ASSETS, FINANCING LIABILITIES & DERIVATIVE FINANCIAL INSTRUMENTS

In accordance with IFRS 13 – Fair Value measurement, 3 levels of fair value measurement have been identified for financial assets & liabilities: Level 1: quoted prices in active markets for identical assets or liabilities • that the entity can access at the measurement date; Level 2: internal models with observable parameters including the use • of recent arm’s length transactions (when available), reference to

other instruments that are substantially the same, discounted cash flow analysis, and option pricing models, making maximum use of market inputs and relying as little as possible on entity-specific inputs;

Level 3: internal models with non-observable parameters. •

The table below shows the breakdown of the financial assets and liabilities by accounting category.

Fair value measurement by accounting categories as of December 31, 2019

Fair value

Fair value through equity

Derivative instruments (see note 8.5)

Fair Value measure- ment

through profit & loss

At December 31, 2019, net

Amortized costs

At December 31, 2018, net

(in million euros)

Non-consolidated Investments Cash collateral & security deposits

17 13

-

17

- - - -

- Level 2

14

12

1 - -

- - -

Level 1

9

Loans & others

1

1

1 -

Subleases receivables

8

8

Other non-current financial assets Total non-current financial assets Cash collateral and security deposits Other current financial assets Derivative financial instruments Other financial current assets

22 39

10 24

12

1 - -

11

- - -

- -

Level 1

12

- 1

- -

2

1 Level 2

-

13 58

14

Cash

- -

58

- -

- -

Level 1 Level 1

134 157 291 305

Cash equivalents

7

7

Cash and cash equivalents Total current financial assets

65 78

Non current borrowings (1)

(979) (979)

(979)

-

-

-

(977) (977)

Borrowings

Derivative financial instruments Other non-current liabilities

(1) (1)

-

-

-

(1) Level 2

- -

Lease liabilities

(224)

(224)

-

-

-

(27)

6

Total non-current financial liabilities

(1,204)

(1,004)

Borrowings (1) Lease liabilities

(8)

(8)

- - -

- - -

- -

(6)

(87)

(87)

(14)

Other current financial liabilities Total current financial liabilities TOTAL FINANCIAL LIABILITIES

(2)

-

(2) Level 2

(4)

(97)

(24)

(1,301) (1,028) Borrowings are recognized at amortized costs. The fair value of the Term Loan debt is €853 million as of December 31, 2019 (€972 million as of December 31, 2018). This fair value is (1) based on quoted prices in active markets for term loan debts (Level 1).

Some cash collaterals for U.S. entities are classified as current because of their short maturity but are renewed automatically for periods of 12 months.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 233