Universal Registration Document 2020

13.1.2 Non-monetary changes in working capital

Non-monetary changes include the effect of changes in the scope of consolidation, foreign exchange effects, changes in fair values and the effect of reclassifications. The variation in non-monetary changes compared to 2019 is principally due to a €320 million foreign exchange effect (particularly on inventories, trade receivables and trade payables due to the decline of the pound sterling against the Euro) and changes in the fair value of derivatives related to operations, amounting to €239 million.

13.1.3 Monetary changes in working capital

(in millions of euros)	Notes	2020	2019⁽¹⁾
Change in inventories	Change in inventories Notes 13.2	Change in inventories 2020 (873)	Change in inventories 2019 ⁽¹⁾ 191
Change in trade receivables	Change in trade receivables Notes 13.3	Change in trade receivables 2020 842	Change in trade receivables 2019 ⁽¹⁾ 199
Change in trade payables	Change in trade payables Notes 13.4	Change in trade payables 2020 (861)	Change in trade payables 2019 ⁽¹⁾ (48)
Change in the Compensation receivable for Public Energy Service charges (CSPE receivable)	Change in the Compensation receivable for Public Energy Service charges (CSPE receivable) Notes 13.3.4	Change in the Compensation receivable for Public Energy Service charges (CSPE receivable) 2020 (328)	Change in the Compensation receivable for Public Energy Service charges (CSPE receivable) 2019 ⁽¹⁾ (864)
Change in other receivables and payables⁽²⁾	Change in other receivables and payables ⁽²⁾ Notes 13.3.4 and 13.5	Change in other receivables and payables ⁽²⁾ 2020 (459)	Change in other receivables and payables ⁽²⁾ 2019 ⁽¹⁾ 997
CHANGE IN WORKING CAPITAL	CHANGE IN WORKING CAPITAL Notes	CHANGE IN WORKING CAPITAL 2020 (1,679)	CHANGE IN WORKING CAPITAL 2019 ⁽¹⁾ 475

(1) Restated for the impacts of IFRS 5 due to the change in scope of E&P operations (see note 1.4.2).

(2) The change in other receivables and payables includes monetary changes in CO2 emission rights and green certificates presented in intangible assets in the balance sheet, and derivatives related to operations.

Monetary changes in working capital were down by €(1,679) million in 2020, principally due to the significant increase in inventories (rise in stocks of capacity certificates and energy savings certificates – see note 13.2) and changes in terminated positions and margin calls in the trading activity. These two factors also account for most of the difference in the change in working capital between 2019 and 2020.

13.2 Inventories

Accounting principles and methods

Inventories are recognised at the lower of acquisition cost or net realisable value, except for inventories held for trading activities, which are carried at market value. Inventories consumed are generally valued by the weighted average unit cost method.

Cost includes all direct materials costs, labour costs, and a share of indirect production costs.

Nuclear fuel

Inventory accounts include:

nuclear materials, whatever their form during the fuel production cycle;
and fuel components in the warehouse or in the reactor.

The stated value of nuclear fuel and materials and work-in-progress is determined based on direct processing costs including materials, labour and subcontracted services (e.g. fluoration, enrichment, fabrication, etc.).

In accordance with regulatory obligations specific to each country, inventories of fuel (new or not entirely consumed) may also comprise expenses for spent fuel management and long-term radioactive waste management, with corresponding provisions or debts in the liabilities, or full and final payments made when the fuel is loaded.

In France, in application of the concept of “loaded fuel” as defined in the ministerial order of 21 March 2007, the cost of inventories for fuel loaded in the reactors but not yet irradiated includes expenses for spent fuel management and long-term radioactive waste management. The corresponding amounts are taken into account in the relevant provisions.

In compliance with IAS 23, interest expenses incurred in financing inventories of nuclear fuels are charged to expenses for the period provided these inventories are manufactured in large quantities on a repetitive basis.

Nuclear fuel consumption is determined by component (natural uranium, fluoration, enrichment, fuel assembly fabrication) as a proportion of the expected output when the fuel is loaded in the reactor. These quantities are valued at weighted average cost of inventories. Inventories are periodically corrected in view of forecast spent quantities based on neutronic measurements and physical inventories.

Other inventories

Other inventories comprise:

other fuels, comprising fossil fuels required for operation of fossil-fired power plants and gas stocks;
other operating supplies, consisting of operating materials and equipment such as spare parts supplied under a maintenance programme (excluding capitalised strategic safety spare parts);
goods and services in progress, particularly relating to the businesses of EDFRenewables, Dalkia and Framatome;
other inventories, mainly consisting of certificates issued under the various environmental schemes (see notes 5.4.3 and 10.2) and capacity obligation mechanisms (capacity guarantees in France – see note 5.1).

Other non-trading operating inventories are generally valued at weighted average cost including direct and indirect purchasing costs.

Impairment of spare parts principally depends on the turnover of these parts.