technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 9 - Employee benefit

9.2.1 SUMMARY OF THE PROVISIONS AND PLANS DESCRIPTION

Medical post-retirement benefits

Pension plan benefits

Total

2020

2020

2020

2019

2019

2019

(in million euros)

At December 31, 2019 Net periodic pension cost

369

340

6

6

375

346

7

10 (5)

- -

- - - - - -

7

10 (5)

Curtailment

(3)

(3)

Benefits paid and contributions

(30)

(26)

(1)

(31)

(26)

Change in perimeter

-

3

- - -

-

3

Actuarial (gains) losses recognized in OCI Currency translation adjustments and other

14

45

14

45

(6)

2

(6)

2

AT DECEMBER 31, 2020

350

369

5

6

355

375

Of which current

30

33

-

-

30

33

Of which non-current

320

336

5

6

324

342

Defined contribution plans 9.2.1.1 The pension costs of these plans correspond to the contributions paid by the Group to independently administered funds. These plans guarantee employee benefits that are directly related to contributions paid. The total contributions paid by Technicolor amounted to €18 million in 2020 (€20 million in 2019). Defined benefit plans 9.2.1.2 These plans mainly cover pension benefits, retirement indemnities and medical post-retirement benefits. In 2020, the geographical breakdown of such net obligations was as follows:

Germany

U.S. 105 (78)

UK France

Others

Total

(in million euros)

Present value of defined benefit obligation

273

148

13

25

564

Fair value of plan assets

-

(118)

-

(13)

(209)

RETIREMENT BENEFIT OBLIGATIONS

273 (17)

27 (7)

30 (5)

13

12 (2)

355 (31) N/A

Cash flows

-

Average duration (in years)

12

8

18

11

N/A

Pension benefits and retirements indemnities Pension plans maintained by the Group are mainly the following: In Germany, employees are covered by several vested unfunded defined benefit and defined contribution pension plans. These plans mainly provide employees with retirement annuities and disability benefits. Employees participate in plan based on final pay and services. The pension plans are no longer available to new entrants. The retirement age is between 60 and 63 years old. In the United States, the employees of Technicolor are covered by a defined benefit pension plan. Technicolor mainly operates two defined benefit pension plans: a cash balance pension plan that covers substantially all non-union employees, funded through a trust fund, and an additional pension plan for executive employees, closed to new participants. Benefits are equal to a percentage of the plan Member’s earnings each year plus a guaranteed rate of return on earned benefits until retirement.

A hard freeze occurred over 2009 on U.S. pension plans. The rights as of January 1, 2010 remain vested but no additional pay-based credits are added to the cash balance account under the Plans. Interest credit, however, continue to be added to employees’ account. The retirement age is 65 years old. In the United Kingdom, Technicolor mainly maintains a dedicated funded pension plan, which provides retirement annuity benefits. This plan is no longer available to new entrants. The retirement age is 65 years old. In France, the Group is legally required to pay lump sums to employees when they retire. The amounts paid are defined by the collective bargaining agreement in force and depend on years of service within the Group and employee’s salary at retirement. The retirement age is 62 years old but the average retirement age observed is 64 years old.

6

251

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020