TECHNICOLOR_REGISTRATION_DOCUMENT_2017
6 - FINANCIAL STATEMENTS
Notes to the consolidated financial statements
At December 31, 2016
There after
2017
2018
2019
2020
2021
Total 1,056
(in million euros)
Floating rate Term Loan Debt – principal Floating rate Term Loan Debt – accrued interest Other debt – principal and accrued interest TOTAL DEBT PRINCIPAL PAYMENTS
33
33
33
507
- - - -
450
5
-
- 1
- -
-
5
14
5
2
22
52
38
34 507
452 1,083
IFRS Adjustment
(33)
Debt in IFRS
1,050
Floating rate Term Loan Debt – interest TOTAL INTEREST PAYMENTS
46
44
43
34
16
32
215
46
44
43
34
16
32
215
The contractual cash flow obligations of the Group due to its current debt are considered to be equal to the amounts shown in the consolidated statement of financial position. Credit Lines The Group has a receivable backed committed credit facility in an amount of $125 million (€105 million at the December 31, 2017
exchange rate) which matures in 2021, a €250 million revolving credit facility maturing in 2021 (the “RCF”) and a €35 million bilateral credit facility maturing in 2019. None of these facilities was drawn at December 31, 2017. The availability of the receivables backed credit line varies depending on the amount of receivables.
2017
2016
(in million euros)
Undrawn, committed lines expiring in more than one year
390
369
Credit and counterparty risk management 8.2.4. Credit risk arises from the possibility that counterparties may not be able to perform their financial obligations to Technicolor. Credit risk on trade receivable is managed by each operational division based on policies that take into account the credit quality and history of customers. From time to time, the Group may decide to insure or factor without recourse trade receivables in order to manage underlying credit risk. The credit risk exposure on the Group’s trade receivables corresponds to the net book value of these assets. The maximum credit risk exposure on the group’s cash and cash equivalents was €319 million at December 31, 2017. The Group minimizes this risk by limiting the deposits made with any single bank and by making deposits primarily with banks that have strong credit ratings or occasionally by investing in diversified, highly liquid money
market funds. As of December 31, 2017, 90% of the group cash deposits are made with banks that have a counterparty rating of, at least A-1 according to Standard & Poor’s (90% as of December 31, 2016). The financial instruments used by the Group to manage its interest rate and currency exposure are all undertaken with counterparts having an investment grade rating. Credit risk on such transactions is minimized by the foreign exchange policy of trading short-term operations. The marked-to-market carrying values are therefore a good proxy of the maximum credit risk. Most of the foreign exchange operations are dealt with financial counterparties that have a credit rating of A-1.
222
TECHNICOLOR REGISTRATION DOCUMENT 2017
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