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CONSOLIDATED FINANCIAL STATEMENTS
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LISI 2015 FINANCIAL REPORT
This remuneration paid in LISI shares or stock options is
recognized:
■■
over a period of four years from the allocation date, in
accordance with the vesting period of the rights contained in
the plan rules, with regard to call option plans;
■■
over a period of two year from the allocation date, in
accordance with the vesting period of the rights contained in
the plan rules, with regard to the allocation of performance
shares.
A share purchase plan (Group Savings Plan) is also available
for Group employees, in which they may purchase LISI
shares within the framework of a capital increase reserved
for employees or as part of a share buyback program. Shares
acquired by employees within the framework of these programs
are subject to certain sale and transfer restrictions. In the case
of capital increases reserved for employees as part of the Group
Savings Plan, the benefit offered to employees is the discount
on the subscription price, being the difference between the
subscription price of the shares and the share price at the award
date (with a maximum of 20% in accordance with French law).
This expense is recognized in its entirety at subscription date in
the case of the Group Savings Plan.
2.2.15 Debt
Interest-bearing loans are initially recognized at their fair
value less costs attributable to the transaction. They are then
measured at depreciated cost; the difference between the cost
and the repayment value is recognized in the income statement
for the period of the loans, in accordance with the effective rate
of interest method.
2.2.16 Trade and other accounts payable
Trade and other accounts payable are valued at fair value at first
recognition, and then at depreciated cost. When thematurity of
such financial assets is short, the sums obtained from applying
thismethod are very close to the nominal value of the payables,
which is then the value employed.
2.2.17 Definition of the concepts "current" and "non-
current" in the balance sheet
Assets and liabilities whose maturity is less than the operating
cycle, which is generally 12 months, are classified as current
assets and liabilities. If maturity is later than this, they are
classified as non-current assets and liabilities.
2.2.18 Overview of the income statement
The Group has opted to continue showing the following totals,
which are not strictly accounting ones, and whose definitions
are as follows:
■■
current Gross Operating Profit (EBITDA) includes added
value, administrative and sales expenses, costs of pensions
and the cost of remuneration in shares. It does not include
contributionsandwrite-offsfromdepreciationandprovisions;
■■
current Operating Profit (EBIT) includes Current Gross
Operating Profit (EBITDA) as well as contributions and write-
offs from depreciation and provisions;
■■
Operating Profit includes EBIT, and other non-recurring
operating income and expenses. These non-recurring items
are strictly defined as income and expenses resulting from
events or transactions that are clearly distinct from the
company’s ordinary activities and that are not expected to
reoccur on a regular basis, owing to:
- their unusual nature; and
- their randomoccurrence, such as expenses or compensation
received for losses, costs resulting from shutdowns,
restructurings, or site relocations, goodwill amortization,
and capital gains and losses on the sale of non-operating,
tangible and intangible assets.
2.2.18.1 Sale of goods and provision of services
Income from the sale of goods is recognized in the income
statement when the significant risks and advantages inherent
in ownership of the goods have been transferred to the buyer.
Sales revenues are shown after deduction of discounts. Sums
from royalties, patent fees and use of trademarks are posted to
sales revenues.
2.2.18.2 Payments for operating lease contracts
Payments for operating leases are recognized as expenses on a
straight-line basis over the period of the lease.
2.2.18.3 Payments for finance lease contracts
The minimum payments for finance leases, as described in
paragraph 2.2.8.2, are broken down into financial charges and
debt repayment. The financial charge is applied for each period
covered by the lease so as to have a constant, periodic interest
rate to apply to the declining balance.
2.2.18.4 Cost of finance and other financial charges and
income
The cost of finance includes:
■■
interest charges on loans calculated using the effective
interest rate method;
■■
interest charges included in payments made for a finance
lease and calculated using the effective interest rate method;
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interest income generated from current investments;
■■
variations in fair value of financial instruments;
■■
income from dividends of non-consolidated companies is
recognized in the income statement when the Group becomes
entitled to receive payments, i.e., in the case of quoted
securities, on the coupon date.