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CONSOLIDATED FINANCIAL STATEMENTS
62
LISI 2015 FINANCIAL REPORT
2.6.4 Provisions
2.6.4.1
Changes in provisions break down as follows:
(in €'000)
At January 1
st
, 2014
Provisions (net of reversals)
At December 31, 2014
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, 2015
Pensions and retirement
29,409 13,029 42,439 2,928 (2,950)
1 (5,442)
0 183 37,159
Long-service medals
3,885
696 4,581
168 (528)
(93)
6
0
0 4,133
Environment-related risks
13,706 1,349 15,056 3,036 (5,496)
(514)
(177)
0 381 12,286
Disputes and other risks
3,460 4,224 7,684 4,074 (4,726) (205)
250
0
34 7,111
Guarantees to clients
7,171 2,173 9,344 681
(142)
0
0
0
0 9,882
Industrial reorganization
2,200 (2,117)
83
0
(91)
0
0
0
8
0
For taxes
848 (160)
688
0 (320)
(368)
0
0
0
For loss on contract
0
3,600
0 (900)
0
0
2,700
Sub-total non-current
provisions
60,680 19,194 83,474 10,887 (15,153) (1,179) (5,436)
73
0 607 73,274
For loss on contract
448 156 605
137
(97)
644
Industrial reorganization
779 (253)
527
0
(33)
(141)
0
(13)
340
Restructuring
8,486 (2,618) 5,868
80 (3,333)
0
0
0
0 2,615
Environment-related risks
307 (23)
284 181
(79)
(107)
279
Disputes
432 434 866 533 (276) (465)
0
0
0 659
For taxes
39 (39)
0
0
0
0
0
0
Other risks
10,570 4,188 14,758 5,737 (5,752) (3,987)
0
0
0
57 10,814
Subtotal current provisions
21,061 1,846 22,907 6,668 (9,569) (4,700)
0
0
0
44 15,350
Grand total
81,741 21,039 106,381 17,555 (24,722) (5,879) (5,436)
73
0 651 88,623
of which as recurring operating
profit
14,379 (20,035) (5,266)
of which as non-recurring
operating profit
3,176 (4,687) (613)
The main provisions are in respect of:
- Pensions and retirement
Legally-imposed obligations in respect of staff salaries,
pension payments or compensation on retirement. Taken into
account were assumptions regarding the level of the discount
rate, the turnover, and the mortality tables. Some of these
commitments are backed with external funds.
In accordance with the revised IAS 19, all actuarial gains and
losses are recognized under "Other comprehensive income" as
a provision for pensions.
- Environment
Recognition of liabilities links to requirements to uphold
environmental standards in the various countries in which
the company operates and more specifically with regard to
soil pollution on industrial sites. The cost of monitoring and
compliance in concert with local authorities makes up a large
part of these provisions. The bulk of the provisions relates to
the decontamination risk of soils and buildings.
- Disputes and other risks
This covers litigation or disputes with partners and service
providers. Risk assessment has been calculated based on