technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 4 - Goodwill, intangible & tangible assets

Machinery & Equipment

Other Tangible Assets (1)

Land

Buildings

Total

(in million euros)

At December 31, 2018, net

3 3

19 62

89

122 387

233

Cost

1,110

1,562

Accumulated depreciation Exchange differences

- - - - - - - - - - - - - - - -

(43)

(1,021)

(265)

(1,329)

- - - -

1

3

4

Additions

2

65

67

Acquisitions of businesses

- -

- -

- -

Disposals

Depreciation charge

(3)

(39)

(28)

(69)

Impairment loss

- -

(2)

(2)

(4)

Other (2)

18

(58) 103 382

(40)

At December 31, 2019, net

3 3

16 60

69

191

Cost

1,075

1,520

Accumulated depreciation Exchange differences

(44)

(1,006)

(279)

(1,329)

(1)

(4)

(6)

(11)

Additions

- - -

- - -

37

37

Acquisitions of businesses

- -

- -

Disposals

Depreciation charge

(2)

(32)

(29)

(63)

Impairment loss

-

(4) 20 48

(1)

(5) (9)

Other (3)

(1) 12 52

(27)

AT DECEMBER 31, 2020, NET

3 3

77

140

Cost

884

269

1,208

Accumulated depreciation

-

(40)

(836)

(192)

(1,068)

Includes assets in progress. (1) In 2019, includes reclassification to Right-of-Use assets. (2) Corresponds to the transfer of tangible assets in progress to Machinery and Equipment and to the transfer in assets held for sale. (3) Right-of-use assets 4.4

The analysis of rent period, mainly for buildings, consider the non-cancellable contract period, cancellable contract period and extension options, when the Group is reasonably certain to exercise these extension options. The Group reassesses whether it is reasonably certain through appreciation of the following information: the depreciation period of the fittings; • the rent evolution compared to market prices; • the Visibility regarding business activity for each site. •

The Group has adopted IFRS 16 at the beginning of 2019. The standard provides a single lease accounting model, requiring the lessee to recognize assets and liabilities for all leases unless the term lease is 12 months or less or the underlying asset has low value. The initial value of the right-of-use asset is equal to the sum of the present value of the lease payments over the rent period and of directs costs incurred in entering or modifying the lease. The Group depreciates its right-of-use assets using the straight-line method, starting when the right-of-use asset is ready for use until the end of the lease.

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