technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 6 - Income Tax

6.2.1 CHANGE IN NET DEFERRED TAXES

Deferred tax liabilities

Total, net deferred tax assets

Deferred tax assets

(in million euros)

Year ended December 31, 2018

210 (27) (131)

(193)

17

Changes impacting continuing profit or loss

33

7

Other movement

132

1

Year ended December 31, 2019

52

(27)

25 10 (5) 30

Changes impacting continuing profit or loss

(30)

40

Other movement (1)

23 45

(28) (15)

YEAR ENDED DECEMBER 31, 2020

Mainly set off of deferred tax assets and liabilities of same maturities by taxable entity and tax impact on other comprehensive income. (1)

As of December 31, 2020, the net deferred tax assets amounting to €30 million mainly relate to the recognition of losses carried forward and other temporary differences in Canada, India, Mexico, Poland and Australia. As of December 31, 2019, the net deferred tax assets of €25 million mainly relate to the recognition of losses carried forward in Australia, Canada, India, Mexico and Poland.

6.2.2

SOURCE OF DEFERRED TAXES

2020 1,108

2019 1,278

(in million euros)

Tax losses carried forward

Tax effect of temporary differences related to: Property, plant and equipment

32

20 10

Goodwill

3

Intangible assets

(50)

(86)

Investments and other non-current assets

3 9

3 7

Inventories

Receivables and other current assets

19

19

Borrowings

140

142

Retirement benefit obligations

55

59

Restructuring provisions

9 6

3

Other provisions

19 38

Other liabilities current and non-current Total deferred tax on temporary differences Deferred tax assets/(liabilities) before netting Valuation allowances on deferred tax assets NET DEFERRED TAX ASSETS/(LIABILITIES)

12

6

238

234

1,346 (1,316)

1,512

(1,487)

30

25

Technicolor reports €2.3 billion of tax losses carried forward generated in countries where the Group still conducts business, in 2020, tax losses mainly arose from France, UK and U.S. Past Tax losses carried forward in U.S. have partly been forfeited after the debt restructuring that occurred in 2020 considered as a change of ownership.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 233