Consolidated financial statements
1
3
LISI 2014FINANCIALREPORT
I
57
2.5.4Provisions
2.5.4.1Changes inprovisionsbreakdownas follows:
(In€'000)
At January 1, 2013
Provisions (net of
reversals)
At December 31, 2013
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, 2014
Pensionsand retirement
32,336 (2,926) 29,410 2,600 (3,708)
(281)
6,592
0 7,406
421 42,439
Long-servicemedals
3,753
132 3,885
426
(29)
0
0
0
299
0 4,581
Environment-related risks
16,476 (2,771) 13,705 2,210 (3,635)
(168)
0
0 2,530
413 15,056
Disputesandother risks
4,288 (828)
3,460 1,304 (2,197)
(362)
0 (573)
6,013
38 7,684
Guarantees toclients
6,358
813 7,171
584
0
(41)
0
0 1,630
0 9,344
Industrial reorganization
0 2,200 2,200
0 (2,220)
0
0
0
0
103
83
For taxes
843
5 848
320
0 (480)
0
0
0
0
688
For lossoncontract
0
0
0
0
0
0
0
0 3,600
0 3,600
Sub-totalnoncurrentprovisions
64,054 (3,375) 60,679 7,444 (11,790) (1,331)
6,592 (573) 21,478
976 83,474
For lossoncontract
270
178 448
428 (272)
0
0
0
0
0
604
Industrial reorganization
1,239 (460)
779
0 (395)
(2)
0
137
0
8
526
Restructuring
600 7,886 8,486
904 (4,022)
0
0
0
500
0 5,868
Environment-related risks
339
(32)
307
146 (127)
(41)
0
0
0
0
284
Disputes
233
199 432 1,027 (574)
(138)
0
113
5
0
866
For taxes
257 (218)
39
0
(39)
0
0
0
0
0
0
Otherrisks
13,545 (2,975) 10,570 6,866 (5,318)
(71)
0 323 2,334
55 14,758
Subtotalshort-termprovisions
16,484 4,577 21,061
9,371 (10,747)
(252)
0 573 2,839
63 22,907
GrandTotal
80,539 1,201 81,740 16,815 (22,537) (1,584)
6,592
0 24,317 1,038 106,381
ofwhichasrecurringoperatingprofit
15,881 (15,201) (1,584)
ofwhichasnon-recurringoperatingprofit
934 (7,336)
0
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.
In accordancewith the revised IAS 19, all actuarial gains and losses are
recognized under "Other comprehensive income" as a provision for
pensions. The amounts shown for the newly-consolidated entity result
fromtheacquisitionoftheManoirGroup in June2014.
-Environment:
Recognitionof liabilities links to requirements toupholdenvironmental
standards in the various countries inwhich the company operates and
morespecificallywithregardtosoilpollutionon industrialsites.Thecost
of monitoring and compliance in concert with local authoritiesmakes
up a large part of these provisions. The amounts shown for the newly-
consolidated entity result from the acquisition of theManoir Group in
June2014. Thebulkof theprovisions relates to thedecontamination risk
ofsoilsandbuildings.
-Disputesandotherrisks:
This covers litigation or disputes with partners and service providers.
Riskassessmenthasbeencalculatedbasedon theestimatedcostof the
outcomeofanydisputeorpossibletransactions.Assessmentofexpected
returnscannotbecalculatedasofyet.Theamountsshownforthenewly-
consolidated entity result from the acquisition of theManoir Group in
June2014.Thebulkoftheprovisionsrelatestovarioustaxandwagerisks.
- Industrial reorganization:
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
