Universal Registration Document 2019

58 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 As at December 31, the Group’s net variable rate position broke down as follows: (in thousands of euros) 12/31/2019 12/31/2018 Loans – variable rates 45,712 54,800 Short-term banking facilities 8,273 16,441 Cash and cash equivalents (223,408) (143,479) NET POSITION PRIOR TO MANAGEMENT (169,423) (72,238) Interest rate SWAP 40,731 46,302 HEDGING 40,731 46,302 NET POSITION AFTER MANAGEMENT (210,154) (118,540) The approach taken consisted in taking into account as a calculation basis for the sensitivity to rates the net, lending and borrowing positions. As of December 31, 2019, the impact on the unhedged portion of a 100-basis point change in the variable rates was €2.1 million. 3.4.10  /  Deferred taxes The deferred taxes of the French companies were revalued to take into account the article of the Finance Act for 2019 for the progressive reduction of corporation tax to 25%. (in thousands of euros) 12/31/2019 12/31/2018 Deferred tax assets 17,312 11,894 Deferred tax liabilities (40,091) (37,745) NET DEFERRED TAXES (22,779) (25,851) Non-recognized deferred tax assets: The Company does not recognize its deferred tax assets whenever it has no sufficient assurance that it will recover carried forward deficits and tax credits. Deferred tax assets are only recognized if their recovery is probable. The losses brought forward that were not recognized in the balance sheet as of December 31, 2019, would generate deferred tax assets of €19.5 million, compared to €19.4 million in 2018. Deferred tax assets by early recoverability: 2019 2018 < 1 year 1 to 5 years +5 years Total -1 year 1 to 5 years +5 years Total 3,443 10,641 3,228 17,312 5,021 3,650 3,223 11,894 3.5  /  Detail of main income statement items 3.5.1  /  Sales revenue 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. IFRS 15 “Revenue fromContracts with Customers” introduces a single analysis grid regardless of the transactions (sale of goods, sale of services, granting of licenses, etc.) with five successive stages: ■ identification of the contract or contracts; ■ identification of the seller’s various contractual obligations (performance obligation); ■ determination of the price of the transaction; ■ allocation of the price of the transaction to the various obligations identified; ■ recognition of the sales revenue. As most of the subsidiaries consolidated in the LISI Group are industrial production sites, most of the sales revenue comes from the sale of finished products. However, the Group has specifically identified two types of transaction distinct from the one referred to previously: the first is late penalties (on delivery, quality deterioration, etc.) reported against sales revenue; the second relates to the invoicing of machine tooling treated as additional services resulting in the recognition of a sales revenue at the time of acceptance of themachine tooling and the initial samples. These principles are handled in accordance with IFRS 15. The Group reviews its sales contracts every financial year: the analysis confirms that recognition complies with IFRS 15. Sales revenues are shown after deduction of discounts. Sums from royalties, patent fees and use of trademarks are posted to sales revenues. The breakdown of sales revenues by business segment and country is shown in note 3.6.1. “Segment information.”