technicolor - 2019 Universal registration document

6 FINANCIAL STATEMENTS

SPECIFIC OPERATIONS IMPACTING THE CONSOLIDATED STATEMENT OF CASH FLOWS

Technicolor also defended a case in the United Kingdom against Arcelik, a Turkish manufacturer, which was settled in February 2020.

Environmental Protection Bureau (“EPB”) ordered remediation of the groundwater underneath the former facility. The groundwater remediation process is underway. EPB and TCETVT continue to negotiate over the scope of that work. Technicolor has reached an agreement with General Electric with respect to allocation of responsibility related to the soil and groundwater remediation. In addition to soil and groundwater contamination, the Group sells or has sold in the past products which are subject to recycling requirements and is exposed to changes in environmental legislation affecting these requirements in various jurisdictions. The Group believes that the amounts reserved and the contractual guarantees provided by its contracts for the acquisition of certain production assets will enable it to reasonably cover its safety, health and environmental obligations. However, potential problems cannot be predicted with certainty and it cannot be assumed that these reserve amounts will be precisely adequate.

ENVIRONMENTAL MATTERS Some of Technicolor’s current and previously-owned manufacturing sites have a history of industrial use. Soil and groundwater contamination, which occurred at some sites, may occur or be discovered at other sites in the future. Industrial emissions at sites that Technicolor has built or acquired expose the Group to remediation costs. The Group has identified certain sites at which chemical contamination has required or will require remedial measures. Soil and groundwater contamination were detected at a former manufacturing facility in Taoyuan, Taiwan that was acquired from GE in a 1987 transaction. In 1992, the facility was sold to a local developer. Soil remediation was completed in 1998. In 2002, the Taoyuan County

Specific operations impacting the consolidated statement

NOTE 11

of cash flows

GRI [102-10] [102-49]

Acquisitions and disposals of subsidiaries & investments 11.1 The details for the acquisition of subsidiaries and investments, net of cash position of companies acquired, are as below:

2019

2018

(in million euros)

LG

(2) (1) (3)

2

Others

(1)

Acquisition of investments

1

Less cash position of companies acquired ACQUISITION OF INVESTMENTS, NET

-

-

(3)

1

The details for the disposal of subsidiaries and activities, net of cash position of companies disposed off, are as below:

2019

2018

(in million euros)

Digital Cinema activity (1)

3

7

Others

(2)

1

Disposal of investments

1

8

Less cash position of companies disposed off DISPOSAL OF INVESTMENTS, NET

-

(3)

1

5

Activity transfered to Deluxe in 2015, with annual earnout payments. (1)

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