LISI FINANCIALREPORT2013 I
51
CONSOLIDATEDFINANCIALSTATEMENTS
3
2.5.4Provisions
2.5.4.1Changes inprovisionsbreakdownas follows:
(In€'000)
At January 1, 2012
Provisions (net of
reversals)
At December 31, 2012
Provisions
Reversals (amounts used)
Reversals (non used
amounts)
Actuarial gains / losses out
of shareholders' equity
Reclassifications
Entry into/exit from
consolidation scope
Translation differential
At December 31, 2013
Pensionsand retirement
27,155 5,181 32,336 2,165 (2,160)
(36) (2,720)
(175) 29,410
Long-servicemedals
3,420
333 3,753
246 (114)
3,885
Environment-related risks
10,817 5,659 16,476 2,371 (2,584) (2,407)
(151) 13,705
Disputesandother risks
5,594 (1,307)
4,288
826 (1,481)
(281)
121
(13)
3,460
Guarantees toclients
5,870
489 6,358
834
(21)
7,171
Industrial reorganization
150 (150)
11,505 (1,108)
(8,117)
(80)
2,200
For taxes
843
843
85
(80)
848
Subtotal long-termprovisions
53,849 10,205 64,054 18,031 (7,527) (2,724) (2,720) (8,017)
(419) 60,679
For lossoncontract
600 (330)
270
247
(69)
448
Industrial reorganization
1,325
(86)
1,239
(69)
(369)
(21)
779
Restructuring
2,222 (1,622)
600
(600)
8,486
8,486
Environment-related risks
333
6
339
164 (132)
(65)
307
Disputes
161
72
233
247
(49)
432
For taxes
256
1
257
(181)
(36)
39
Other risks
9,840 3,705 13,545 5,322 (6,282) (2,286)
(100)
400 (30) 10,569
Subtotalshort-termprovisions
14,737 1,747 16,484 5,980 (6,782) (2,987)
8,017
400 (52) 21,061
GrandTotal
68,586 11,952 80,539 24,012 (14,309)
(5,711) (2,720)
400 (471) 81,740
ofwhichasrecurringoperatingprofit
12,507 (13,570) (3,811)
ofwhichasnon-recurringoperatingprofit
11,505 (739) (1,900)
Themainprovisionsare inrespectof:
-Pensionsandretirement:
Legally-imposedobligationsinrespectofstaffsalaries,pensionpayments
or retirement indemnities. Taken into account were assumptions
regarding the level of thediscount rate, the turnover, and themortality
tables.Someofthesecommitmentsarebackedwithexternal funds.
TheGrouphas opted for early adoption of the revised IAS 19 standard
from January 1, 2012. Therefore, all actuarial gains and losses are
recognized in "Other comprehensive income" against provisions for
pensions.
-Environment:
Recognitionof liabilities links to requirements toupholdenvironmental
standards in the various countries inwhich the company operates and
morespecificallywithregardtosoilpollutionon industrialsites.Thecost
ofmonitoringandcompliance inconcertwith localauthoritiesmakesup
a largepartoftheseprovisions.
-Disputesandotherrisks:
This covers litigation or disputes with partners and service providers.
Riskassessmenthasbeencalculatedbasedon theestimatedcostof the
outcomeofanydisputeorpossibletransactions.Assessmentofexpected
returnscannotbecalculatedasofyet.
-Industrialreorganization:
This covers industrial reorganizationbased on assessments of the cost
of redeploying certain sites or entities. The assessment of the sums
recognized takes account of specific local regulatory stipulations. The
impairmentchargeof€11millionessentiallyrelatestothereorganization
of the screw fastenersbusiness in France, via the closureof theplant at
Thiantandthetransferof itsbusinesstothreeotherFrenchsites.
-Otherrisks:
Liabilitiesrecognizedunderthiscategorytake intoaccountrisksbasedon
various reports (industrial, regulatory, corporate, customer guarantees
andproducts)andconcernbothoftheGroup’smaindivisions.
