Consolidated financial statements
1
3
58
I
LISI 2014FINANCIALREPORT
€ 2.2 M reversal mainly concerns the implications of the transfer of
the former Racing business in the US to other Group companies. The
amounts shown for the newly-consolidated entity result from the
acquisitionoftheManoirGroup in June2014.
-Restructuring
The €4M reversal results from the implications of the transfer of the
Thiantplant'sbusinesstotwootherFrenchsites.
-Otherrisks:
Liabilitiesrecognizedunderthiscategorytake intoaccountrisksbasedon
various reports (industrial, regulatory, corporate, customer guarantees
andproducts)andconcernbothoftheGroup’smaindivisions.
This section covers the risks and expenses clearly specified as to their
purposewhosematurity remains likelyandwhichwill causeanoutflow
ofresourceswithoutconsideration.Themostsignificantamountsreflect
the unfavorable application for the Group of contractual terms, the
impact of the streamliningof production structures and litigationswith
third party partners. The amounts shown for the newly-consolidated
entity result from theacquisitionof theManoirGroup in June2014. The
amounts of the provisions concern in particular a provision for quality
risksof€1.1M intheLISIAEROSPACEdivision.
2.5.4.2Commitments to thepersonnel
Applicationofrevised IAS19asatJanuary1,2012
As stated in note 2.2 Accounting policies, the LISI Group has been
applyingrevised IAS19 from January1,2012.
Characteristics
In accordancewith the laws andpracticesofeachcountry inwhich the
Groupoperates, itoffers itsemployeesand formeremployees,subjectto
certain conditionsof service, thepayment of pensionsor compensation
onretirement.Such benefitscanbepaidaspartofdefined contribution
plansordefinedbenefitplans.
Definedbenefitplans
Generaldescriptionoftheplans
Retirementallowance(France):
Entitlements to retirement benefits are defined by applicable laws or
sectoralagreementswhentheyaremore favorable.
UK
BAIUKoperates adefinedbenefit pensionplan towhichall employees
who joined the company before April 2007 are entitled. Plan assets
are separate from the assets of the company andmanaged by a trust
administeredbyaboardoftrustees.
Theriskstowhichtheplanexposesthecompany include: investmentrisk,
inflation, longevityofpensioners,options, legislative.
USA
Hi Shear Corporationoperates adefinedbenefit pensionplan towhich
allemployeeswho joinedthecompanybeforeFebruary1991areentitled.
Theplanhasbeen closed since that date. Planassets are separate from
the assets of the company andmanaged by a trust administered by
a board of trustees. The risks towhich the plan exposes the company
include: investment risk, inflation, longevity of pensioners, options,
legislative.
AspertherevisedIAS19standard,therateofreturnonlong-termfundsis
identicaltothediscountrateforactuarialliability.Theratesofreturnthus
employedareequal to3.25% forAmerican insuranceplansand3.71% for
Britishones.
AsatDecember31,2014, theallocationofplanassetswasapproximately
52.5% inequitiesand47.5% inbonds for theUK,and20% inequitiesand
80% inbonds fortheUSA.
Thegeographicbreakdownof theGroup’scommitmentstostaffasatDecember31,2014 fordefinedbenefitplansandthemainassumptionsemployed
intheirassessmentareas follows:
(in€'000)
France
Germany
USA
UK
Other
Actuarialdebt
29,661
7,657
8,571
22,708
1,613
Discount rate
1.49%
2.11%
3.25%
3.71%
3.30%
Inflation -Wage increase
1.90%
1.50%
NA
3.62%
NA
