FORM 20-F THOMSON multimedia - Technicolor

Our operating income under U.S. GAAP was also affected by the accounting treatment of
certain advantages granted by Thomson S.A. to our employees in connection with the employee
share offerings of 1999 and 2000 (an expense of 0 78 million in 2000 and a gain of 0 48 million in
2001). Since Thomson S.A. bore the cost of these advantages, they do not represent actual cash
expenses for the Group.
Please refer to Notes 29 and 30 of our consolidated financial statements for a further discussion
of the principal differences between French and U.S. GAAP.
Financial result
Net interest expense
Net interest expense amounted to 0 29 million in 2001, compared with 0 10 million in 2000. Net
interest expense included primarily the interest on promissory notes issued to Carlton in connection
with the acquisition of the Technicolor businesses and interest expense relating to the 1% convertible/exchangeable
bonds issued in 2000 and due in 2006 (obligations à option de conversion ou
d’échange en actions nouvelles, or ‘‘2000 OCEANEs’’).
Other financial expense
Other financial expense totaled 0 160 million in 2001, compared with 0 67 million in 2000. Other
financial expense in 2001 included primarily depreciation accruals on other investments (unconsolidated
investments), generally in technology companies. Other financial expense also included other
changes, such as pension plans interest cost in Germany. Please see Note 5 to our consolidated
financial statements for additional information on other financial expense.
Other income and expense
Other income and expense represented a net gain of 0 8 million in 2001, compared with a net
expense of 0 81 million in 2000. In 2001 this amount included gains on the disposal of investments,
realized mainly from the disposal of shares of unconsolidated investments and the liquidation of
related hedges.
Other income and expense also includes restructuring costs, which were 0 107 million in 2001
compared with 0 105 million in 2000. Restructuring costs in 2001 reflect mainly:
) the acceleration of the TIGER program within the Displays and Components division for
0 63 million for measures aimed at optimizing industrial capacity and reduction of structural
costs;
) the continuation in the United States, within the Consumer Products Division, of the GROWL
Program for productivity improvements for 0 27 million; and
) the continuation of the SAFE program for 0 25 million, principally related to the exit of certain
ATLINKS specific businesses and the closure of a manufacturing plant in Germany.
These accruals have been offset by reversals in provisions. For more information on
restructuring costs as they relate to our reengineering and restructuring programs see Note 6 to our
consolidated financial statements.
In 2001, the line item ‘‘Other income (expense), net’’ also included expenses related to a
reassessment of our product portfolio. We made the decision to carry out this substantial and
extensive reassessment of our product portfolio during the year, which related principally to products
not within the core of our activities or for which the outlook for profitability was limited. Ordinary
adjustments to our product portfolio would have been reflected in operating income. The costs of this
reassessment (0 48.5 million) and the depreciation of related assets (0 16.4 million) were recorded
under ‘‘Other income (expense), net’’. ‘‘Other income (expense), net’’ also included other items,
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