technicolor - 2019 Universal registration document

FINANCIAL STATEMENTS DISCONTINUED OPERATIONS AND HELD FOR SALE OPERATIONS

Discontinued operations and held for sale operations

NOTE 12

GRI [102-10] [102-48] [102-49]

Discontinued operations 12.1 A discontinued operation is a component of the Group that either has been disposed of (by sale or otherwise) or is held for sale. In accordance with IFRS 5, to be disclosed as discontinued: the operation must have been stopped or be classified as “asset • held for sale”; the component discontinued must clearly be distinguishable • operationally and for reporting purposes; it must represent a separate major line of business (or • geographical area of business); it must be part of a single major plan of disposal or is a subsidiary • acquired exclusively for resale. The profit (loss) from discontinued operations is presented as a separate line item on the face of the statement of operations with a detailed analysis provided below. The statement of operations data for all prior periods presented are reclassified to present the results of operations meeting the criteria of IFRS 5 as discontinued operations. On July 30, 2018, the Group concluded the sale to InterDigital of its Patent Licensing Division for a total price of U.S.$220 million (€188 million) which generated a €210 million gain and a €116 million cash impact (see note 2.3 for details). On February 11, 2019, the Group announced being in exclusive negotiations with InterDigital for the divestiture of its Research & Innovation activity. As the sale was highly probable according to IFRS 5, the Research & Innovation activity was classified as Discontinued

In the statement of cash flows, the amounts related to discontinued operations are disclosed separately. When a non-current asset or disposal group no longer meet the held for sale criteria, the asset or disposal group ceases to be classified as held for sale. It is then measured at the lower of: its carrying value before the asset (or disposal group) was classified • as held for sale, adjusted for any depreciation, amortization that would have been recognized had the asset (or disposal group) not been classified as held for sale; and its recoverable amount at the date of the subsequent decision not • to sell. Recoverable value is the higher of fair value less costs to sell and value in use. Any adjustment to the carrying amount is included in profit and loss from continuing operations in which the assets ceased to be classified as held for sale. Operations and assets and liabilities classified as Assets and Liabilities held for sale in the Consolidated Statement of Financial Position as of December 2018. On May 31, 2019, the Group concluded the sale to Interdigital of its Research & Innovation business Other discontinued activities relate to remaining subsequent impacts of activities disposed of or abandoned such as Cathode Tubes activities from 2004 and 2005.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 257