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20.2 Notes to the consolidated financial statements for the year ended December 31, 2016
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
NOTE 13.
END-OF-LIFECYCLE OPERATIONS
The table below summarizes the AREVA group accounts affected by the treatment of end-of-lifecycle operations and their funding.
Assets
(in millions of euros)
December 31,
2016
December 31,
2015
Shareholders’ equity and liabilities
(in millions of euros)
December 31,
2016
December 31,
2015
End-of-lifecycle assets – AREVA share
(1)
-
322
-
Assets earmarked for end-of-lifecycle
operations
-
6,300 Provisions for end-of-lifecycle operations
-
6,921
1
End-of-lifecycle assets – third party
share
(2)
-
178
1
funded by third parties
(2)
-
178
1
Assets earmarked for end-of-life
cycle operations
(3)
-
6,122
1
funded by AREVA
-
6,743
(1) Amount of total provision to be funded by AREVA still subject to amortization.
(2) Amount of the provision to be funded by third parties.
(3) Portfolio of financial assets and receivables earmarked to fund AREVA’s share of the total provision.
END-OF-LIFECYCLE ASSETS
Continuing operations
(in millions of euros)
Net carrying
amount at
December 31,
2015
Increase Decrease
Net increase
in depreciation,
amortization
and provisions
Unwinding
Other
changes
Operations
held for sale
Net carrying
amount at
December 31,
2016
AREVA share
322
196
(11)
(23)
-
24
(509)
-
Third party share
178
-
(57)
-
4
2
(127)
-
TOTAL
500
196
(68)
(23)
4
26
(635)
-
Operations held for sale
The group’s share of assets is classified under property, plant and equipment on
the statement of financial position (see note 12).
In addition to the value of its property, plant and equipment, the group recognizes the
future share of the costs of end-of-lifecycle operations (nuclear facility dismantling,
legacy waste retrieval and packaging, waste shipping and waste disposal) for which
it has financial responsibility; the group’s share is amortized according to the same
schedule as the underlying property, plant and equipment. It also recognizes a third
party share of assets for dismantling and waste retrieval and packaging operations
to be funded by certain customers. Conversely, a provision is recorded to cover
the total estimated cost of end-of-lifecycle operations as soon as a facility starts up,
including any share funded by third parties.
The third-party share remaining in the end-of-lifecycle assets mainly corresponds
to the funding expected from CEA for its share of funding for the Pierrelatte site.
In 2016, this item decreased due to work performance and the transfer of certain
contracts to dismantling receivables.
The increase in the group’s share of assets, which concerns the operating facilities,
is mainly due to the change in the discount rate applied by the group (from 4.50%
to 4.10%).
PROVISIONS FOR END-OF-LIFECYCLE OPERATIONS
Continuing operations
(in millions of euros)
Net carrying
amount at
December 31,
2015
Reversals
(when risk has
materialized):
expenses for the
year Unwinding
Change in
assumptions,
revised
budgets, etc.
Operations
held for sale
Net carrying
amount at
December 31,
2016
Provision for nuclear facility dismantling
4,939
(140)
156
326
(5,281)
-
Provision for waste retrieval and packaging
1,982
(87)
65
102
(2,061)
-
PROVISIONS FOR END-OF-LIFECYCLE OPERATIONS
6,921
(227)
221
428 (7,342)
-
2016 AREVA
REFERENCE DOCUMENT
215