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COMPANY FINANCIAL STATEMENTS
87
LISI 2015 FINANCIAL REPORT
3.2.6 Provisions for risks and charges
(in €'000)
Amount at
year start for
the period
Provisions for
the period
Reversals for
the period
used
Reversals for
the period
unused
Amount at
year-end for
the period
Provision for long service medals
13
(1)
(3)
9
Provisions for charges
287
(200)
87
Provisions for taxes
320
(320)
Provision for stock options and the allocation of free
shares
1,519
801
(1,068)
1,250
Total
2,139
801
(1,588)
(3)
1,346
Provisions for charges mainly cover the setting up of a project designed to reduce the number of accidents at work.
3.3
/
DETAIL OF MAIN INCOME STATEMENT ITEMS
3.3.1 Financial income from investments
(in €'000)
Amount
Dividends received from subsidiaries
21,007
Dividends received outside the Group
-
Interest from loans to subsidiaries
4,132
Total
25,139
3.3.2 Breakdown of corporation tax
(in €'000)
Profit
(loss)
current
Profit (loss)
non-recurring
Profit (loss)
accounting
Pre-tax earnings
18,426
(186)
18,240
Income tax
0
Tax credits, IFA &
miscellaneous
25
25
Additional
contribution to the
corporate income
tax on the amount
distributed
(584)
(584)
Tax integration taxes
12,357
12,357
Net earnings
30,223
(186)
30,037
The LISI Group benefits from the tax integration regime,
which covers all its French subsidiaries. The tax integration
agreement stipulates that tax gains should be retained at the
parent company level. The overall amount of corporate income
tax at December 31, 2015 is a tax income.
3.4
/
FINANCIAL COMMITMENTS
Financial guarantees given
LISI S.A. has signed letters of intent with banks relating to
the commitments made by some of the Group’s subsidiaries.
Moreover, its agreements with some partners require
compliance with financial covenants.
Commitments given under the terms of the transaction for
the divestiture of LISI COSMETICS
Commitment for compensation granted in favor of the buyer
concerning any reassessments from the tax or environmental
authorities, subject to a deductible of €500 k, to exceeding a
minimum threshold of €35 k and to an upper limit of €6million.
Financial derivatives
LISI S.A. uses derivative financial instruments to hedge its
exposure to foreign exchange risk, and occasionally to hedge
its interest rate risks resulting from its financial activities. In
accordance with its cash management policy, LISI S.A. neither
holds nor issues derivatives for trading purposes.
The currency hedges are underwritten by LISI S.A. to cover all
of the LISI Group's needs.