| (in millions of euros) | Cumulative amount at 31/12/2018 | Increases | Decreases | Cumulative amount at 31/12/2018 |
|---|---|---|---|---|
| Software | Software Cumulative amount at 31/12/2018950 | Software Increases257 | Software Decreases32 | Software Cumulative amount at 31/12/20181,175 |
| Other | Other Cumulative amount at 31/12/2018124 | Other Increases10 | Other Decreases4 | Other Cumulative amount at 31/12/2018130 |
| Intangible assets | Intangible assetsCumulative amount at 31/12/20181,074 | Intangible assetsIncreases267 | Intangible assetsDecreases36 | Intangible assetsCumulative amount at 31/12/20181,305 |
| Land and buildings | Land and buildings Cumulative amount at 31/12/20187,338 | Land and buildings Increases284 | Land and buildings Decreases46 | Land and buildings Cumulative amount at 31/12/20187,576 |
| Nuclear power plants | Nuclear power plants Cumulative amount at 31/12/201840,379 | Nuclear power plants Increases2,549 | Nuclear power plants Decreases1,394 | Nuclear power plants Cumulative amount at 31/12/201841,534 |
| Machinery and plant other than networks | Machinery and plant other than networks Cumulative amount at 31/12/20188,641 | Machinery and plant other than networks Increases537 | Machinery and plant other than networks Decreases181 | Machinery and plant other than networks Cumulative amount at 31/12/20188,997 |
| EDF-owned networks | EDF-owned networks Cumulative amount at 31/12/2018502 | EDF-owned networks Increases30 | EDF-owned networks Decreases- | EDF-owned networks Cumulative amount at 31/12/2018532 |
| Other | Other Cumulative amount at 31/12/20181,061 | Other Increases135 | Other Decreases63 | Other Cumulative amount at 31/12/20181,133 |
| Property, plant and equipment owned by EDF | Property, plant and equipment owned by EDFCumulative amount at 31/12/201857,921 | Property, plant and equipment owned by EDFIncreases3,535 | Property, plant and equipment owned by EDFDecreases1,684 | Property, plant and equipment owned by EDFCumulative amount at 31/12/201859,772 |
| Land and buildings | Land and buildings Cumulative amount at 31/12/20186,479 | Land and buildings Increases146 | Land and buildings Decreases7 | Land and buildings Cumulative amount at 31/12/20186,618 |
| Machinery and plant other than networks | Machinery and plant other than networks Cumulative amount at 31/12/20181,066 | Machinery and plant other than networks Increases31 | Machinery and plant other than networks Decreases13 | Machinery and plant other than networks Cumulative amount at 31/12/20181,084 |
| Concession networks | Concession networks Cumulative amount at 31/12/20181,200 | Concession networks Increases79 | Concession networks Decreases15 | Concession networks Cumulative amount at 31/12/20181,264 |
| Other | Other Cumulative amount at 31/12/201810 | Other Increases- | Other Decreases- | Other Cumulative amount at 31/12/201810 |
| Property, plant and equipment operated under concessions | Property, plant and equipment operated under concessionsCumulative amount at 31/12/20188,755 | Property, plant and equipment operated under concessionsIncreases256 | Property, plant and equipment operated under concessionsDecreases35 | Property, plant and equipment operated under concessionsCumulative amount at 31/12/20188,976 |
| Tangible assets in progress | Tangible assets in progressCumulative amount at 31/12/2018177 | Tangible assets in progressIncreases25 | Tangible assets in progressDecreases108 | Tangible assets in progressCumulative amount at 31/12/201894 |
| TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENTCumulative amount at 31/12/201867,927 | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENTIncreases4,083 | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENTDecreases1,863 | TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENTCumulative amount at 31/12/201870,147 |
Due to the integrated management and interdependence of the different generation facilities that make up the French fleet (nuclear, thermal and hydropower plants), independently of their maximum technical capacities, EDF considers the entire fleet as a single CGU.
Even when there is no indication of any loss of value, an impairment test is performed due to the highly significant value of this CGU in the financial statements and its substantial exposure to market prices since discontinuation of the “yellow” and “green” regulated tariffs on 1 January 2016.
The recoverable value of the generation fleet is estimated by discounting future cash flows under EDF’s usual methodology, described in note 1.6, over the assets’ useful life, using an after-tax WACC of 5.1% at 31 December 2019. For nuclear assets currently in operation (except for Fessenheim), EDF’s benchmark model assumes that the useful life is extended to 50 years, in line with its industrial strategy. The nuclear capacity remains subject to a ceiling of 63.2GW in the test, consistent with France’s Energy Transition Law.
The capacity revenue assumptions used in the test are higher than the previous year, in line with the system fundamentals analysis in the benchmark scenario. The average auction price achieved in 2019 was €19.5/KW.
The impairment test takes into consideration the latest forecasts concerning Flamanville 3 (see note 2.1.1) which adjusted the schedule, setting the fuel loading date in late 2022, and revised the estimated cost of construction to €12.4 billion in 2015 euros, an increase of €1.5 billion from the previous estimate. The test takes into consideration the fact that most of these additional costs will be recorded as operating expenses.
The test results indicated a significant positive difference between the recoverable value and the book value of the generation fleet in France. The margin resulting from the test is higher than at 31 December 2018, as the higher costs and deferred commissioning of Flamanville 3 were outweighed by favourable effects, essentially concerning the lower discount rate and the positive effect of cash outflows in 2019.
The key assumptions used in the test include the useful life of nuclear assets, the long-term price scenario, the discount rate, developments in costs and investments, and the assumed capacity revenue. Each of these assumptions has been subjected to a sensitivity analysis, which does not call into question the existence of a positive difference between the recoverable value and book value. The test conducted at 31 December 2019 also takes into consideration the sensitivity associated with early closure proposals for certain nuclear units, as set out in the proposed multi-year energy programme. This did not affect the conclusions of the test.
