Universal Registration Document 2019

48 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 Financial assets and liabilities on the balance sheet (in thousands of euros) As of 12/31/2018 Breakdown by instrument category Net accounting value Fair value Fair value via earnings Available assets Loans and receivables Debt at depreciated cost Derivatives Non-current financial assets 8,923 8,923 8,923 Other non-current assets 480 480 480 Trade and other receivables 263,141 263,141 260,994 2,147 Cash and cash equivalents 156,879 156,879 156,879 Total financial assets 429,423 429,423 156,879 270,397 2,147 Non-current borrowings 337,354 337,354 336,165 1,189 Other non-current financial liabilities (excl. PCA) 1,734 1,734 1,734 Current borrowings 158,831 158,831 158,831 Trade and other accounts payable 298,469 298,469 296,197 2,272 TOTAL FINANCIAL LIABILITIES 796,388 796,388 792,927 3,461 The IFRS 7 standard requires the hierarchical ordering of the different valuation techniques used for each of the financial instruments. The categories are defined as follows: Level 1: direct reference to published prices of a market asset; Level 2: valuation technique based on measurable data; Level 3: valuation technique based on non-observable data. Classification of fair value by hierarchical level: (in thousands of euros) December 31, 2019 Level 1 Level 2 Level 3 Non-current financial assets 16,977 Other non-current assets 9 Trade and other receivables 1,333 273,739 Cash and cash equivalents 236,809 TOTAL FINANCIAL ASSETS 255,128 273,739 Non-current borrowings 412,310 Other non-current financial liabilities (excl. PCA) 4,519 Current borrowings 156,423 Trade and other accounts payable 839 269,608 TOTAL FINANCIAL LIABILITIES 574,091 269,608 3.4.1.5 - Other non-current assets (in thousands of euros) 12/31/2019 12/31/2018 OTHER DEBTORS 9 480 TOTAL OTHER NON-CURRENT FINANCIAL ASSETS 9 480 The receivable entered in the balance sheet on December 31, 2018 primarily covered a tax asset which was paid during the 2019 financial year. 3.4.2  /  Current assets 3.4.2.1 - Inventories Inventory is valued at the lower of cost or net realizable value. The cost of materials andmerchandise is calculated from their acquisition cost plus the costs incurred to bring them to their current location in their current condition. Finished products andwork in progress are valued at actual production cost over the period, including an appropriate portion of general costs based on normal production capacity. The net realizable value equates to the estimated sales price in the normal course of business, less the estimated cost of completion and estimated costs necessary to make the sale. Inventories are impairedwhen their net realization value is less than their cost of production, when they are damaged, obsolete, as well as each time there is a risk that they might not be disposed of under normal conditions, or when there is a risk that they will be disposed of over a period that is longer than what is generally accepted.