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4
Note 7. Long-term Investments
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
7.3. Loans to subsidiaries and affiliates
At year-end 2014, the net value of loans to subsidiaries and affiliates,
including accrued interest, was 0 (compared to €1,200.0 million at year-
end 2013).
The full balance due under the €1,200 million credit facility granted to
SFR in December 2011, with a maturity date of June 17, 2015, was sold
on November 27, 2014, as part of the sale of SFR to Numericable (see
“Significant Events”).
7.4. Loans and other long-term investments
Cash deposit placed in escrow account
On March 4, 2013, a letter of credit for €975 million, maturing in
March 2016, was issued in connection with Vivendi’s appeal against the
Liberty Media judgment (see Note 25, Litigation). This letter of credit is
guaranteed by a syndicate of 15 international banks with which Vivendi
signed a Reimbursement Agreement which includes an undertaking by
Vivendi to reimburse the banks for any amounts paid out under the letter
of credit.
On July 16, 2014, Vivendi strengthened the undertaking given under the
Reimbursement Agreement by placing a cash deposit of €975 million in
an escrow account. This cash deposit could be used in priority against
a claim made against Vivendi, if any, and if the banks were called with
respect to the letter of credit. This deposit significantly reduces the letter
of credit’s financing cost.
Cash deposit paid under liquidity agreement
As of December 31, 2014, the amount paid out by Vivendi during 2014
under the liquidity agreement totaled €5.0 million (out of an available
balance of €50 million) and was recorded in other financial assets. This
amount remains unchanged compared to December 31, 2013.
In addition, purchases and sales of shares were settled immediately. As
of December 31, 2014, Vivendi did not hold any shares under this liquidity
agreement nor did it hold any shares for this purpose as of December 31,
2013 (see Note 9, Treasury Shares).
7.5. Impairment
(in millions of euros)
Opening
accumulated
depreciation/
amortization
Charge
Reversal
recorded
in financial
income
Reversal recorded
in exceptional
income
(a)
Closing
accumulated
depreciation/
amortization
Investments in affiliates and Long-term portfolio securities
12,491.0
121.7
(11,195.7)
1,417.0
Loans to subsidiaries and affiliates
1,312.8
67.7
(10.1)
1,370.4
Other long-term investment securities
0.2
0.2
(0.1)
0.3
Loans and other long-term investments
0.0
0.0
Total
13,804.0
189.6
(10.1)
(11,195.8)
2,787.7
(a)
Including reversal of impairment on the SFR shares amounting to €11,193 million (see Note 4, Exceptional Items).
311
Annual Report 2014