technicolor - 2019 Universal registration document

6 FINANCIAL STATEMENTS OTHER INFORMATION

Europe Since 2014, Technicolor has also been defending, along with other defendants (Samsung, LG, Philips, etc.), several similar legal actions in various European jurisdictions alleging damages suffered as a result of anticompetitive behaviour in the CRT industry until 2005. All such cases are in the wake of the EU Commission decision of December 2012 pursuant to which Technicolor was fined €38.6M as a result of alleged involvement in a cartel. The cases are as follows: in the Netherlands, a case filed by Vestel, a Turkish TV manufacturer, • under Turkish law. Vestel also brought suit in Turkey, which was dismissed on procedural grounds in January 2019; in the Netherlands, a case filed by three Brazilian TV manufacturers • under Brazilian law;

in Germany, two cases against three German former TV • manufacturers (Grundig and Loewe/Metz) under German law. In 2018 and 2019, the German first instance court found all defendants liable in principle. Technicolor appealed these decisions. At this time, Technicolor is unable to assess the potential outcome from those cases and the resulting potential liability due to the complexity of the cases, as Technicolor is still defending certain of these on procedural grounds and/or as the claims have not all been fully substantiated. Depending on jurisdictions, decisions on quantum are not expected before 2021 or 2022. Technicolor also defended a case in the United Kingdom against Arcelik, a Turkish manufacturer, which was settled in February 2020.

Other information

NOTE 12

Trade accounts and other current assets and liabilities 12.1 Trade receivables and other current operating assets are valued at historical cost. A depreciation charge is recorded when recoverable value is lower than book value.

Income or charges are accrued when the service has been provided to or supplied by the company before the end of the financial year and when they can be measured with sufficient assurance.

Current liabilities mainly consist of debts with a maturity of less than one year. This caption includes tax and social security liabilities, trade payables and fixed assets payables.

Current assets mainly include current accounts of Group subsidiaries for €640 million (net of depreciation for €7 million). Accrued income are booked in the following captions:

2019

2018

(in million euros)

Trade receivables

41

29

of which accrued income

5

4

Other current assets

16

32

of which accrued income

7

21

Accrued charges are booked in the following captions:

2019

2018

(in million euros) Trade payables

15

16

of which accrued charges Other current liabilities

4

5

24

545

of which tax and social accrued charges

8 8

11 11

of which other accrued charges

Compliance with supplier and customer invoices contractual payment terms: At year end:

the amount including VAT of overdue supplier invoices represents 2.2% of fiscal year purchases amount excluding VAT; • the amount including VAT of overdue customer invoices represents 6.4% of fiscal year revenue sales excluding VAT. •

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 286