134 / 186
ÉTATS FINANCIERS
6
PARENT COMPANY FINANCIAL STATEMENTS
NOTE 5
PROVISIONS
In thousands of euros
Amount at
beginning of year
Increases
Decreases
Amount
at year-end
Provisions for foreign exchange losses
902
3,567
902
3,567
Other provisions for contingencies and charges
(1)
1,039
13,948
836
14,151
Total provisions for contingencies and charges
1,941
17,515
1,738
17,718
Provisions for impairment in value of intangible assets
28
–
–
28
Provisions for impairment in value of property, plant and equipment
188
–
2
186
Provisions for shares in subsidiaries and affiliates
(2)
20,084
13,280
10,734
22,630
Provisions for loans
(3)
1,891
–
1,891
–
Provisions for treasury shares
–
–
–
–
Sub-total: Provisions for fixed assets
22,191
13,280
12,627
22,844
Provisions for impairment in value of trade receivables
199
–
199
–
Provisions for impairment in value of intra-Group receivables
(4)
406
432
–
838
Provisions for impairment in value of sundry debtors
(5)
391
–
391
–
Sub-total: Provisions for current assets
996
432
590
838
Total provisions for impairment in value
23,187
13,712
13,217
23,682
Total provisions
25,128
31,227
14,955
41,400
(1) Additions to and reversals of provisions for contingencies and charges in 2016 break down as follows:
•
a €7.3 million addition to provisions for tax risks. On 30 December 2016, Assystem SA and Assystem France signed a framework agreement relating to research tax credits for the
years 2010 to 2016. This agreement provided for Assystem SA to assume all of the financial risks and the risks relating to any other disputes arising in relation to these research tax
credits, effective from 31 December 2016. Consequently, Assystem SA has undertaken to assume all of the related financial consequences and has waived any related rights of recourse
against Assystem France with regard to claiming compensation, which it would be entitled to do in the event of any dispute. As consideration for this waiver of potential compensation, on
31 December 2016 Assystem France paid to Assystem SA an initial indemnity of €7.3 million (which may be subsequently increased by a further €5.0 million). This amount was recorded
as income for 2016. In parallel, Assystem SA recorded a €7.3 million provision for contingencies and charges on the liabilities side of its balance sheet;
•
a €6,631 thousand addition concerning the costs that the Company will incur as a result of its outstanding free share/performance share plans (of which €6,536 thousand will be rebilled
to the Group subsidiaries whose employees are beneficiaries under these plans);
•
an €836 thousand reversal concerning the costs incurred by the Company during 2016 for shares delivered under free share plans;
•
a €67 thousand addition to provisions for risks relating to subsidiaries concerning Assystem Italy.
(2) The main additions to provisions for shares in subsidiaries and affiliates concerned the following companies:
•
ASG: €56 thousand;
•
ASM Technologies: €226 thousand;
•
Silver Atena UK Ltd: €12,985 thousand.
Reversals of provisions for shares in subsidiaries and affiliates related to the following companies:
•
Extra Capital: €632 thousand, following this company’s liquidation;
•
Assystem Iberia: €7,712 thousand;
•
Assystem Portugal: €505 thousand;
•
Assystem Canada: €1,435 thousand;
•
Assystem International: €438 thousand;
•
ATIM: €12 thousand.
(3) The provision recognised previously to write down a loan to a Canadian subsidiary was reversed in full in 2016 following this company’s liquidation.
(4) Additions to provisions for impairment of intra-Group receivables concerned the following companies in 2016:
•
Assystem Solutions DMCC (€386 thousand);
•
Assystem Australia (€46 thousand).
(5) This provision reversal concerns dividends not received from a Moroccan subsidiary as the receivable owed to the Company was used to increase this subsidiary’s capital during the year.
ASSYSTEM
REGISTRATION DOCUMENT
2016
134