86 / 168
86
3.2.8 Provisions for risks and charges
(in thousands of euros)
At 12/31/2016
Allowances
Reversals
At 12/31/2017
Provision for long service medals
11
2
13
Provisions for charges
50
50
Provision for stock options and the allocation of free shares
1,254
627
864
1,017
Provisions for fines
Provisions for exchange losses
443
6,410
443
6,410
TOTAL
1,709
7,088
1,308
7,489
3.3
I
DETAIL OF MAIN INCOME STATEMENT ITEMS
3.3.1 Financial income from investments
(in thousands of euros)
Amount
Dividends received from subsidiaries
28,003
Dividends received outside the Group
Interest from loans to subsidiaries
4,655
Total
32,658
3.3.2 Breakdown of corporation tax
(in thousands of euros)
Current profit (loss)
Non operating profit (loss)
Accounting result
Pre-tax earnings
7,138
198
7,336
Income tax
Tax credits, IFA & miscellaneous
25
25
Additional contribution to the corporate income tax on the amount
distributed
2,178
2,178
Tax integration taxes
10,572
10,572
Net earnings
19,913
198
20,111
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, 2017 is a tax income.
3.4
I
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 fromthe tax or environmental authorities, subject to
a deductible of €500,000, to exceeding aminimum threshold of €35,000
and to an upper limit of €6 million.
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.
LISI 2017 FINANCIAL REPORT
COMPANY FINANCIAL STATEMENTS
4