Company: SGBAF
Filing Date: 2025-04-01
Form Type: DRS/A
Source: 0000950123-25-003272
Chunk: 202

Company: SES S.A.
Filing Date: 2025-04-01
Form: DRS/A
Chunk 202
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 on a straight-line basis over the duration of the respective contracts, including any free-of-charge periods. Using a straight-line measure of
progress most faithfully depicts SES’s performance because SES makes available a consistent level of capacity over each distinct time period. For certain performance obligations, a cost-based input method is used to recognize revenue if it was
determined that a basis reflecting the costs incurred to date relative to the total costs expected to be incurred better reflects the pattern of transfer of control of the services to the customer. Revenue will cease to be recognized if there is an
indication of a significant deterioration in a customer’s ability to pay for the remaining goods or services.

Impairment testing for goodwill, other indefinite-life intangible assets, and space segment assets including assets under construction

SES determines whether
goodwill and other indefinite-life intangible assets are impaired at least on an annual basis. The key assumptions used in respect of goodwill and other indefinite-life intangible assets impairment testing are the determination of cash-generating
units (“CGU”) and the estimation of their value-in-use. Establishing the
value-in-use requires SES to make an estimate of the expected future post-tax cash flows from the CGU and to choose a suitable post-tax discount rate and terminal growth
rate to calculate the present value of those cash flows. These are described in Note 16 to SES’s consolidated financial statements.

For SES’s satellites including those under construction, the estimation of the value-in-use requires estimations of the future commercial revenues to be generated by each satellite, particularly related to new markets or services and the impact of past
in-orbit anomalies and their potential impact on the satellite’s ability to provide its expected commercial service. These are described in Notes 14 and 15 to SES’s consolidated financial statements.

Tax and legal matters

SES
applies estimates and judgements in respect of certain taxation and legal matters.

SES operates in numerous tax jurisdictions and
management is required to assess tax issues and exposures across its entire operations and to accrue for potential liabilities based on its interpretation of country-specific tax law and best estimates. Also, judgement needs to be applied in respect
of transfer pricing structures and hence potential tax exposures which may be identified in the different jurisdictions where SES operates. SES reviews in detail the transfer pricing structures in place and records provisions where this seems
appropriate on a case-by-case basis.

SES recognizes
deferred tax assets primarily in connection with the carry-forward of unused tax losses and tax credits. SES reviews the tax position in the different