LISI 2012 FINANCIAL REPORT
85
4
COMPANY FINANCIAL STATEMENTS
3.2.6 Provisions for risks and charges
(In €'000)
Amount
at year start
Provisions
Reversals
used
Reversals
unused
Amount
at year end
Provision for environmental risks
807
(807)
Provision for long service medals
5
1
6
Provisions for charges
450
150
(226)
374
Provision for stock options and the allocation
of free shares
1,175
349
(1,041)
483
Total
2,439
500
(1,267)
(807)
864
Provisions for charges mainly cover the setting up of a project
designed to reduce the number of accidents at work.
3.3
Detail of main income statement
items
3.3.1 Financial income from investments
(In €'000)
Amounts
Dividends received from subsidiaries
13,003
Dividends received outside the group
-
Interest from loans to subsidiaries
2,049
Total
15,052
3.3.2 Breakdown of corporation tax
(In €'000)
Profit (loss)
current
Profit (loss)
non-recurring
Profit (loss)
Pre-tax earnings
15,714
(138)
15,576
Income tax
(617)
46
(571)
Tax credits, IFA &
miscellaneous
4
4
Tax integration taxes
2,135
2,135
Net earnings
17,236
(92)
17,144
The LISI Group benefits from the tax integration regime, which
covers all its French subsidiaries. The tax integration agreement
stipulates that tax gains should be retained at the parent
company level. The overall amount of corporate income tax at
December 31, 2012 is a tax income.
3.4 Financial commitments
Financial guarantees given:
LISI S.A. has signed letters of intent with banks relating to
the commitments made by some of the Group’s subsidiaries.
Moreover, its agreements with some partners require
compliance with financial covenants.
Commitments given under the terms of the transaction for the
divestiture of LISI COSMETICS.
Commitment for compensation granted in favor of the buyer
concerning any reassessments from the tax or environmental
authorities during a period of two years with effect from
the date of divestiture, subject to a deductible of €500k, to
exceeding a minimum threshold of €35k and to an upper limit
of €6m.
Financial derivatives:
LISI S.A. uses derivative financial instruments to hedge its
exposure to foreign exchange risk, and occasionally to hedge
its interest rate risks resulting from its financial activities. In
accordance with its cash management policy, LISI S.A. neither
holds nor issues derivatives for trading purposes.
The currency hedges are underwritten by LISI S.A. to cover all of
the LISI Group's needs.
