En Zodiac Aerospace Ra 2015-2016 Financial Report
En Zodiac Aerospace Ra 2015-2016 Financial Report
En Zodiac Aerospace Ra 2015-2016 Financial Report
Assets
(in thousands of euros) Notes Amount Amount
at Aug. 31, 2016 at Aug. 31, 2015
Goodwill (Notes 3.8 and 13.1) 1,994,687 2,023,354
Intangible assets (Notes 3.8, 13.2 and 13.3) 653,554 698,149
Property, plant and equipment (Note 14) 492,988 464,008
Investment in associates and joint ventures (Note 15) 1,605 8,352
Loans 24,533 20,587
Other non-current financial assets (Note 16) 12,257 14,016
Deferred tax assets (Note 11) 6,102 1,225
TOTAL NON-CURRENT ASSETS 3,185,726 3,229,691
Inventories (Notes 3.9 and 17) 1,360,124 1,340,700
Current tax assets (Note 11) 144,379 104,383
Trade receivables (Notes 2 and 3.10) 1,046,469 1,010,990
Advances to suppliers and employees 11,320 16,393
Other current assets (Note 18) 48,167 38,655
Other financial assets:
- loans and other current financial assets 6,466 11,970
Cash and cash equivalents (Note 19) 268,780 163,616
TOTAL CURRENT ASSETS 2,885,705 2,686,707
HELD-FOR-SALE ASSETS (1) 686 680
(1) At August 31, 2015 and August 31, 2016, the amounts pertained to buildings held for sale (see Note 14).
62
ZODIAC AEROSPACE
Consolidated Financial
Notes to the Consolidated Financial Statements Statements
U) Share-based compensation asset belongs, and which is the smallest group of compatible assets
that generates cash flows largely independent of those from other
As required by IFRS 2, stock option and purchase plans granted after
assets or groups of assets.
November 7, 2002 for which stock purchase rights had not been
vested at January 1, 2005 must be measured at the fair value calcu- At each balance sheet date, Group companies identify any events
lated for the date on which the options were granted. or circumstances that could result in an asset losing its value. Such
events or circumstances include significant long-term unfavorable
The Group has committed to awarding Zodiac Aerospace stock option changes affecting the Groups economic environment (sales markets,
plans to certain employees and Executive Board members. sources of supply, index and/or cost trends, etc.) or its assumptions
The fair value of services rendered by employees as consideration and targets (medium-term plan, profitability forecasts, market share,
for the options granted is expensed and recorded according to the order book, regulations, litigation, etc.).
services at the time they are rendered. This expense is measured on Where such events or circumstances exist, the recoverable amount
the basis of actuarial calculations built on behavioral assumptions of the individual asset is measured. Where its carrying value is higher
derived from past observations. The cost is spread over the benefit than its recoverable amount, the asset is treated as having lost value
vesting period. The total amount of the expense to be recognized is and its carrying value is reduced to reflect its recoverable value by
measured by reference to the fair value of the options granted, using recognizing an impairment loss.
the binomial model.
Where it is not possible to estimate the recoverable value of an indi-
The expense is booked under gains and losses recognized in equity. vidual asset, the recoverable value of the CGU to which the asset
belongs is calculated.
V) Revenues Where a test conducted on the assets of a Group company reveals
As required by IAS 18, Revenue, sales of finished goods and merchan- a loss of value in the CGU, this loss of value is allocated in the first
dise are recognized in Sales revenues when the risks and rewards instance to goodwill, then to the assets of the unit concerned pro-rata
incident to ownership are transferred, i.e., in most cases, when the of their carrying value.
goods are shipped.
Where loss of value is proven, any impairment recognized as goodwill
Revenues generated from sales of services are recognized over the becomes permanent. For other assets, loss of value indices are ana-
contract period and in accordance with the terms and conditions of lyzed on each subsequent balance sheet date, and where favorable
the contract. They are recognized where the outcome of the tran- changes have occurred in respect of estimates that previously resulted
saction can be estimated reliably, and by reference to the stage of in an impairment, a loss of value write-back is recognized in the state-
completion of the services provided by the Group. Revenues from the ment of profit and loss for the fiscal year.
performance of long-term contracts are recognized using the percen-
tage of completion method, and determined either as a percentage of X) Held-for-sale assets and discontinued
actual costs incurred in relation to projected total spending through operations
to completion, or using contractually defined technical stages and,
A non-current asset, or group of assets and liabilities, is recognized
particularly, the essential phases of the contracts performance (proof
as held for sale when the majority of its value will be recovered as the
of installation or delivery of equipment).
result of sale, rather than as a result of continued use.
Sales are shown net of all volume and trade discounts. Likewise, the cost
This definition applies if the asset is available for immediate sale and if
of sales-related marketing initiatives is deducted from sales revenue.
such a sale is highly probable. At the balance sheet date, held-for-sale
W) Impairment of assets assets are measured at their carrying value, which is less than their fair
Goodwill and intangible assets with an indefinite life are not amortized value minus selling costs.
but are subject to impairment testing whenever there is an indication
of impairment, and at least once per year for the fiscal year-end.
Y) IFRS financial information presentation principles
The Group has elected to segregate significant non-recurring items
Other non-current assets with a finite life (amortizable intangible
within its operating income.
assets and depreciable property, plant and equipment) are subject to
impairment testing whenever there is an indication that their carrying The non-recurring portion is shown after the Current operating
amount may not be recoverable. Capitalized development costs are income (COI) subtotal under the heading Non-current operating
tested for impairment project-by-project on the basis of discounted items; the resulting subtotal is Operating income.
projections of the future cash flows relative to each project. The Financial Debt aggregate used by the Group in its communica-
These tests compare the carrying amount of an asset with its reco- tion is the sum of the Current and Non-current Financial Liabilities
verable amount. items minus the Cash and Cash Equivalents item.
The recoverable value of an asset or group of assets is defined as the The presentation of the statement of financial position and statement
fair value (minus selling costs) or the value in use, whichever is the of profit and loss has been revised in accordance with IAS 1, Presen-
higher. Value in use is measured by discounting estimated future cash tation of Financial Statements.
2015 - 2016
flows using a reference rate that reflects the Groups weighted average On the statement of financial position, the assets and liabilities that are
cost of capital. part of the Groups operating cycle are classified as current.
Impairment tests are conducted for each asset individually, unless the All other assets and liabilities are classified as non-current.
asset taken in isolation does not generate cash inflows that are 73
In applying IAS 1 (revised), the Group has chosen to present income
largely independent of those from other assets or groups of assets. In
and expenses recognized in two financial statements: a statement of
ZODIAC AEROSPACE
this instance, as is the case with goodwill, which in principle does not
profit and loss and a statement of comprehensive net income.
generate independent cash inflows, the recoverable value of the asset
is determined by that of the cash-generating unit (CGU) to which the
Consolidated Financial
Statements Notes to the Consolidated Financial Statements
The decrease in the Patents and registered trademarks item includes 57,540k linked to the removal from the financial statements of the Contour
trademark which was fully depreciated in fiscal year 2015/2016. This brand which had been acquired by Zodiac Seats UK Limited in 2012, is no
longer used after all the Seats branch companies changed their commercial name (no other Seats branch company had a brand value recognized
on the statement of financial position). The cost of this impairment is presented on the Non-current operational items line of the statement of
profit and loss and generates a reduction of the consolidated tax expense of 11,508k.
Finance leases
Property, plant and equipment include the following leased assets:
(in thousands of euros) Aug. 31, 2016
Equipment, furnishings, fixtures and other
Gross amount 1,716
Accumulated amortizations 1,716
Net carrying amount
Due within 1 year
Due in 1 to 5 years
Due in more than 5 years
Future minimum payments
NOTE 17 - INVENTORIES
(in thousands of euros) Aug. 31, 2016 Aug. 31, 2015
Components and sub-assemblies 928,734 864,365
Work in progress 321,850 351,900
2015 - 2016