Universal Registration Document 2021

Note 10 Property, plant and equipment and intangible assets (excluding french public electricity distribution concession assets)

Details of property, plant and equipment and intangible assets (excluding French electricity distribution concession assets) are as follows:

(in millions of euro)	*Notes*	31/12/2021	Assets in progress*	31/12/2020	Assets in progress*
(in millions of euro)Goodwill	*Notes*10.1	31/12/2021 10,945	Assets in progress* n.a.	31/12/2020 10,265	Assets in progress* n.a.
(in millions of euro) Other intangible assets	*Notes*10.2	31/12/2021 10,221	Assets in progress* 1,793	31/12/2020 9,583	Assets in progress* 1,581
(in millions of euro) Property, plant and equipment used in generation and other tangible assets owned by the Group, including right-of-use assets	*Notes*10.3	31/12/2021 98,237	Assets in progress* 45,220	31/12/2020 92,600	Assets in progress* 39,460
(in millions of euro) Right-of-use assets	*Notes*10.4	31/12/20214,146	Assets in progress*n.a.	31/12/20204,116	Assets in progress*n.a.
(in millions of euro) Property, plant and equipment operated under concessions other than French electricity distribution concessions	*Notes*10.5	31/12/2021 6,881	Assets in progress* 621	31/12/2020 6,858	Assets in progress* 574
(in millions of euro)TOTAL PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS (EXCLUDING FRENCH ELECTRICITY DISTRIBUTION CONCESSION ASSETS)	*Notes*	31/12/2021126,284	Assets in progress*47,634	31/12/2020119,306	Assets in progress*41,615

n.a. : not applicable.

* Assets in progress are presented in note 10.6.

10.1 Goodwill

Accounting principles and methods

Determination of goodwill

In application of IFRS 3, “Business combinations”(see note 3), goodwill is the difference between:

the sum of the following items:

the acquisition-date fair value of the price paid to acquire control;
the value of non-controlling interests in the entity acquired; and
for acquisitions achieved in stages, the acquisition-date fair value of the Group’s share in the acquired entity before it acquired control; and

the net value of the assets acquired and liabilities assumed, measured at
fair value at the acquisition date.

When this difference is negative it is immediately included in net income.

The fair values of assets and liabilities and the resulting goodwill are finalised within twelve months of the acquisition.

Measurement and presentation of goodwill

Goodwill on acquisition of subsidiaries is disclosed separately in the balance sheet. Impairment on this goodwill is reported under the heading “Impairment” in the income statement. After initial recognition, goodwill is carried at cost less any impairment recognised.

Goodwill on acquisition of associates and joint ventures is included in the investment’s net book value. Impairment on this goodwill is included under the heading “Share in income of associates and joint ventures”.

Goodwill is not amortised, but impairment tests are carried out as soon as there is an indication of possible loss of value, and at least annually, as described in note 10.8.

In 2021, goodwill primarily related to Framatome (€1,428 million) and EDF Energy (€8,095 million). The breakdown by operating segment is presented in note 4.1.

Changes in goodwill in 2021 and 2020 were as follows:

(in millions of euros)	31/12/2021	31/12/2020
Net book value at opening date	Net book value at opening date31/12/202110,265	Net book value at opening date31/12/202010,623
Acquisitions	Acquisitions 31/12/2021 143	Acquisitions 31/12/2020 139
Disposals	Disposals 31/12/2021 (1)	Disposals 31/12/2020 -
Impairment (note 10.8)	Impairment (note 10.8) 31/12/2021 -	Impairment (note 10.8) 31/12/2020 (31)
Translation adjustments	Translation adjustments 31/12/2021 537	Translation adjustments 31/12/2020 (439)
Other changes	Other changes 31/12/2021 1	Other changes 31/12/2020 (27)
NET BOOK VALUE AT CLOSING DATE	NET BOOK VALUE AT CLOSING DATE31/12/202110,945	NET BOOK VALUE AT CLOSING DATE31/12/202010,265
Gross value at closing date	Gross value at closing date 31/12/2021 11,715	Gross value at closing date 31/12/2020 11,032
Accumulated impairment at closing date	Accumulated impairment at closing date 31/12/2021 (770)	Accumulated impairment at closing date 31/12/2020 (767)

The changes in goodwill in 2021 primarily related to:

the acquisition of Rolls Royce Civil Nuclear I&C from Framatome for €92 million (see note 3.1);
translation adjustments (€537 million) resulting chiefly from the rise of the pound sterling against the Euro.

The changes in goodwill in 2020 primarily related to:

the acquisition of Pod Point by EDF Energy for €74 million, a company specialising in charging for electric vehicles in the United Kingdom;
the first consolidation of Energy2market for €37 million;
translation adjustments of €(439) million, principally due to the pound sterling’s depreciation against the euro.