Universal Registration Document 2019

44 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 in millions of euros 2018 discount rate 2019 discount rate Infinite growth rate for 2018 Infinite growth rate for 2019 2019 net assets 2019 utility value 2019 terminal value % of terminal value in the 2019 discounted value LISI AEROSPACE 7.5% 7.1% 2.0% 1.6% 785 2,077 1,743 84% LISI AUTOMOTIVE 7.9% 7.9% 2.0% 1.6% 505 531 433 82% LISI MEDICAL 6.8% 6.7% 2.0% 1.6% 199 224 201 90% TOTAL 1,489 2,832 2,377 84% The test did not show any loss of value. Tests of sensitivity to theassumptionsmadewere implemented and concerned the main indicators in the calculations of the valuation tests: discount rate, infinite growth rate, elements contributing to cash flows. ■ Change in the benchmark discount rate selected of +0.3%; ■ Change in the infinite growth rate of 0.5%. ■ Change in cash flow components of -5.0%. In 2019, as in 2018, these changes, taken individually, in the main assumptions did not result in utility values below net book values. b) Other intangible assets Concessions, trademarks and software programs are recognized at historic cost and are subject to a depreciation plan. Intangible fixed assets acquired through a business combination are recognized at their acquisition-date fair value. Intangible fixed assetswith finite useful lives are subject to depreciation over this period, while intangible fixed assets with indefinite useful lives are subject to an impairment test for every new balance sheet. Depreciation is recognized as an expense using the straight- line method over the estimated useful life of the intangible fixed assets except when this is indefinite. Estimated useful lives are as follows: ■ Trademarks: 10 – 20 years; ■ Software programs: 1 – 10 years. Statement of other intangible assets at close: (in thousands of euros) Concessions, patents and similar rights Other intangible fixed assets TOTAL GROSS VALUES AT DECEMBER 31, 2018 72,533 36,762 109,295 Other changes 310 310 Acquisitions 3,804 1,821 5,625 Disposals (1,145) (484) (1,629) Scope changes (807) 1,204 397 Exchange rate differences 10 177 187 GROSS VALUES AT DECEMBER 31, 2019 74,395 39,790 114,185 DEPRECIATION AT DECEMBER 31, 2018 59,625 22,695 8,320 Other changes Depreciation allowance 4,119 1,880 5,999 Depreciation reversals (1,147) (3,926) (5,073) Scope changes (733) 2,191 1,458 Exchange rate differences 8 80 88 DEPRECIATION AT DECEMBER 31, 2019 61,872 22,920 84,792 NET VALUES AT DECEMBER 31, 2019 12,523 16,871 29,393 The amounts shown in scope changes are the result of the sale of INDRAERO SIREN and LISI AEROSPACE Creuzet Maroc.