technicolor - 2019 Universal registration document

6 FINANCIAL STATEMENTS INCOME TAX

Income tax

NOTE 5

Under French tax law, Technicolor SA is the head Company of the income tax they would have paid if they were taxable separately on a French tax consolidation group consisting in 14 companies. Therefore, standalone basis.

Technicolor SA is responsible to the French Tax Authorities for all corporate income tax matters and is allowed to collect from other members of the French tax consolidation group the amount of corporate

The Company tax losses to carry forward indefinitely by the French tax consolidation group are estimated at €1.8 billion as of December 31, 2019 due mainly to the Cathode Ray Tubes activity disposed in 2005.

Breakdown of booked income tax

5.1

2019

2018

(in million euros)

Income tax booked by French subsidiaries and passed on to Technicolor SA (1)

(11)

49

Tax consolidated research tax credit Tax consolidated Audiovisual tax credit

5 2

16

1

Provision for income tax expense under tax consolidation

- 1

(8)

Prior Year Adjustment of income tax expense under tax consolidation

4

Unused foreign tax credits

(1) (7)

-

Other (2)

(17)

TOTAL INCOME TAX 45 Under French consolidation regime, Technicolor gets a tax income from consolidated French subsidiaries. This year, tax cost related to tax Group concerns mainly a previous year (1) adjustment towards Thomson Licensing SAS for €12 million. Corresponds mainly to research tax credit, and Audiovisual tax credit, to be repaid to subsidiaries. (2) There is no provision for the income tax expense under tax consolidation in 2019 as Technicolor SA tax consolidation is no longer tax payer. In the absence of tax integration, the Company would only show some unused tax credits for €1 million. Variation of deferred or latent tax bases 5.2 Temporarily non-deductible expenses related to Technicolor SA are the following: (11)

December 31, 2018

Variation December 31, 2019

(in million euros)

To be deducted the following year • Paid vacations

2 5 2 3 6 6

(1)

1

Provisions for risks

11

16

Other

(1)

1

To be deducted at a later date • Provisions for retirement Depreciation on current accounts

-

3 3

(3)

Provisions for risks

6

12

Other

17

(6)

11

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 274