TECHNICOLOR_REGISTRATION_DOCUMENT_2017
6 - FINANCIAL STATEMENTS
Notes to the consolidated financial statements
OTHER OPERATING INFORMATION NOTE 5. Operating assets & liabilities 5.1. Non-current operating assets & liabilities 5.1.1. (in million euros)
2017
2016
Customer contract advances and up-front prepaid discount
10 28
24 32
Other
OTHER OPERATING NON-CURRENT ASSETS Payable on acquisitions of business & fixed assets
38
56
(32)
(50) (65) (38)
Deferred income
(2)
Other
(25)
OTHER OPERATING NON-CURRENT LIABILITIES
(59)
(153)
As part of its normal course of business, Technicolor makes cash (generally from 1 to 5 years). The contracts contain provisions that advances and up-front prepaid discount to its customers, principally establish pricing terms for services and volumes to be provided and within its Entertainment Services segment. These are generally in the other terms and conditions.
framework of a long-term relationship or contract and can take different forms. Consideration is typically paid as an advance to the customers in return for the customer’s various commitments over the life of the contracts. These contracts award to the Group a customer’s business within a particular territory over the specified contract period
Such advanced payments are classified under “Non-current assets”, recorded as “Contracts advances and up-front prepaid discount” and are amortized as a reduction of "Revenues" on the basis of units of production or film processed.
Inventories 5.1.2. Inventories are valued at acquisition or production cost. The production costs include the direct costs of raw materials, labor costs and a part of the overheads representative of the indirect production costs, and exclude general administrative costs. The cost of inventory sold is determined based on the weighted average method or the FIFO (first in – first out) method, depending on the nature of the inventory. When the net realizable value of inventories is lower than its carrying amount, the inventory is written down by the difference.
2017
2016
(in million euros) Raw materials
38 10
40 42
Work in progress
Finished goods and purchased goods for resale
214 262 (24) 238
179 261 (27) 234
Gross value
Less: valuation allowance TOTAL INVENTORIES
206
TECHNICOLOR REGISTRATION DOCUMENT 2017
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