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20.4 Notes to the annual financial statements
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
Sale of New NP
Following the memorandum of understanding signed on July 28, 2016, AREVA
SA, AREVA NP and EDF signed a share purchase agreement on November 15,
2016 which sets the terms and conditions for the sale of an interest giving EDF the
exclusive control of an entity tentatively called “NewNP”, a wholly owned subsidiary
of AREVA NP, which will combine the industrial operations of the design and supply
of nuclear reactors and equipment, fuel assemblies and services to the installed
base.
The selling price for 100% of the capital of New NP was set at 2.5 billion euros,
excluding any price adjustments and/or supplements.
20.4.1.2.
WRITE-DOWN OF INVESTMENTS IN AND LOANS
TO ASSOCIATES
In connection with the review undertaken at the end of 2016 of the business outlook
for the different Business Units, and considering the current market environment
and the difficulties encountered on certain construction or upgrade projects in
progress, the profitability outlook for some first-tier subsidiaries was revised
significantly downward.
The recoverable amounts resulting therefrom translate into the write-down of certain
investments in associates, of non-trade current accounts, of loans to associates held
by AREVA SA (see note 4.4.1), and of the provision for financial risk (see note 4.10.2).
The subsidiaries concerned are mainly:
p
AREVA NP;
p
AREVA Energies Renouvelables.
20.4.1.3.
SALE OF THE INTEREST IN ADWEN
Consistent with its objective of refocusing on the nuclear fuel cycle operations,
AREVA SA announced that at the conclusion of a three-month competitive process
designed to solicit and assess proposals from potential third-party investors, the
company’s Board of Directors had given authority to management to exercise the
option to sell its 50% interest in Adwen’s capital, signed on June 17, 2016 with
Gamesa.
This option to sell was exercised on September 14, 2016, and the sale closed on
January 5, 2017.
20.4.1.4.
CAPITAL INCREASE OF AREVA TA
On December 7, 2016, during the Extraordinary General Meeting of AREVA TA
Shareholders, a capital increase accompanied by the cancellation of the preemptive
subscription right of minority interests for the benefit of AREVA SA was decided.
The percentage of AREVA SA’s interest thus went from 83.6% to 85.1%.
20.4.1.5.
SALE OF AREVA TA
The company announced on December 17, 2015 and confirmed on January 27,
2016 the plan to sell AREVA TA, a company specialized in the design, construction,
commissioning and operational readiness of compact nuclear reactors for marine
propulsion and nuclear research facilities.
On December 15, 2016, the company signed a share purchase agreement for all of
its shares in AREVA TA with a consortium of buyers composed of the Agence des
participations de l’État (APE, 50.32% of the capital), the Commissariat à l’énergie
atomique et aux énergies renouvelables (CEA, 20.32%), and DCNS (20.32%). EDF
will keep its 9.03% interest in the capital.
The sale, for which the plan has already been the subject of consultation with
employee representative bodies and which has been approved by AREVA SA’s
governance, is scheduled to close in March or April 2017, subject in particular to
the publication of the ministerial orders related to the sale and the absence of any
unfavorable significant event with an impact of more than 55 million euros on the
value of the company’s equity. On the date the sale closes, the French State will
control AREVA TA.
20.4.2.
ACCOUNTING PRINCIPLES AND METHODS
The financial statements of AREVA SA for the year ended December 31, 2016
were prepared in accordance with French accounting standards as defined
in articles 121–1 and 121-2
et seq.
of the
Plan comptable général 2014.
The
accounting policies were applied in compliance with the provisions of the French
Commercial Code, the Accounting Decree of November 29, 1983 and the ANC
2014-03 regulations of the French Accounting Board related to the redrafting of
the
Plan comptable général
applicable to year-end closing.
20.4.2.1.
VALUATION OF PROPERTY, PLANT AND
EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment (PPE) and intangible assets are valued at their
acquisition or production cost, including start-up expenses.
They are depreciated based on the approach deemed most representative of the
loss of economic value of each component, with each component depreciated
based on its own useful life. Depreciation is calculated using the straight-linemethod
and rates normally applicable to these categories of assets.
The maximum depreciation periods are as follows:
p
3 years for off-the-shelf software;
p
10 years for integrated management software packages;
p
25 years for buildings;
p
10 years for building improvements and office furniture; and
p
5 years for office equipment, computers and transportation equipment.
Depreciation may be supplemented for certain assets when the value in use
becomes less than its carrying amount. The resulting carrying amount may be
considered to be economically justified.
20.4.2.2.
LONG-TERM INVESTMENTS
Long-term investments appear on the assets side of the balance sheet at their
transfer value or acquisition cost. The acquisition cost means the purchase price
plus costs directly related to the purchase, in particular commissions paid to acquire
the investment.
Investments in associates are written down when their original cost exceeds their
value in use, determined investment by investment.
This write-down is calculated based on the share of net assets held at year end.
This assessment also takes into account the subsidiaries’ estimated profitability or
market value, as well as events or situations subsequent to year-end.
2016 AREVA
REFERENCE DOCUMENT
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