Ubisoft 2016 Annual Report Download - page 140

Financial statements
5Consolidated fi nancial statements asatMarch31, 2016
The implementation of the share buyback program authorized by the
Extraordinary General Meetings on July 1, 2014 and September 23,
2015 allowed for the acquisition of 3,488,214 shares.
As at March 31, 2016, the Company held 3,647,838 own shares
with a value of €80,992 thousand. Own shares are deducted from
equity at cost of sale.
Transfers of fi nancial assets
Transferred fi nancial assets not derecognized in their entirety
Factoring agreements on unvested rights under the CTMM (partially derecognized)
In March 2011, the production subsidiary Ubisoft Entertainment Inc.
concluded a factoring agreement for claims relating to the unvested
rights of Investissement Québec under the so-called “CTMM” grant.
The risks associated with these receivables are transferred to
the counterparty of the factoring agreement; the receivables are
derecognized from the statement of fi nancial position of the Group.
Following an amendment made in March 2014, Ubisoft
Entertainment Inc. receives 85% of the sale price of the receivables
transferred at the transfer date. The remaining 15% is collected at the
time of actual payment of the grant by Investissement Québec, the
counterparty of the factoring agreement. As the risks and benefi ts
associated with 15% of transferred receivables were retained by the
Group, a portion of 15% of outstanding claims relating to unvested
rights of the organization Investissement Québec under the so-called
“CTMM” grant remains on the Group’s balance sheet.
(in €millions) Factoring agreement on the “CTMM” grant– Ubisoft EntertainmentInc.
Nature of the assets transferred Claim on a government agency on the right to receive a government grant
Nature of the risks and rewards
ofownership of the transferred assets
Default risk
Risk of late payment
Total carrying amount of assets before
the initial transfer €49.9M
Carrying amount of assets still recognized €7.5M
Carrying amount of the associated liabilities N/A
Nature of the relationship between
thetransferred assets and associated
liabilities
N/A
Restrictions on use of the assets
transferred arising from the transfer Legal ownership of the debt transferred to the counterparty
Financial assets derecognized in their entirety
In December 2013, the British and German sales and marketing
subsidiaries concluded a factoring agreement on trade receivables
from subsidiaries domiciled in their respective countries.
The risks associated with these receivables are transferred to the
counterparty of the factoring agreement; the receivables are fully
derecognized from the statement of fi nancial position of the Group.
However, these two subsidiaries operate a collection service on behalf
of the counterparty, a service that is constitutive of the continuing
involvement of the Group in trade receivables transferred under
these factoring contracts.
- Registration Document 2016
138