Atari 2009 Annual Report Download - page 110

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
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newly-issued Atari ordinary shares, with the settlement procedures determined by the Company. At March 31, 2009 the
maximum potential number of new shares to be issued for the bonus payment was 3.558.963.
The Group could therefore be required to pay a maximum amount of approximately USD 47.5 million in cash by
October 5, 2010 at the earliest under the bonus and earn-out mechanism.
The fair value of the earn-out payment was €15.4 million at March 31, 2009, calculated based on forward-looking
revenue assumptions determined by Group management and using a 4% discount rate.
NOTE 24 – OFF-BALANCE SHEET COMMITMENTS
The table below summarizes the Group's off-balance sheet commitments:
(€ million) March 31, 2009 March 31, 2008 Notes
Commitments given
Guarantees given to suppliers (letters of credit) - 24.0 1
Non-cancelable operating leases 18.8 23.5 2
Development and licensing agreements 16.1 21.2 3
Assignments of receivables (under “Dailly Act” arrangements, etc.) - -
Total commitments given 34.9 68.7
Commitments received
Bank guarantees (standby credit, letters of credit, documentary credit, etc.) 15.0 36.3 4
Other credit facilities secured by trade receivables - 8.5 5
Total commitments received 15.0 44.8
(1) In the ordinary course of business, the Group provides payment guarantees in the form of letters of credit to its
principal suppliers. These guarantees primarily concern purchases from console manufacturers and third-party
publishers. Since this commitment essentially concerned the distribution activities at March 31, 2008, and given that
these activities have now been discontinued, the commitment represents a value of virtually nil at March 31, 2009.
(2) The Group is a party to non-cancelable leases. The schedule of minimum future lease payments to be made on these
leases is as follows:
March 31, 2009 March 31, 2008
Y+1
4.6 4.9
Y+2
2.9 5.1
Y+3
2.2 2.5
Y+4
0.9 1.2
Y+5
0.9 1.1
Subsequent years
7.3 8.7
Total minimum future lease payments – Continuing operations
18.8 23.5
(3) In the ordinary course of its business, the Group makes royalty payments to third parties under development
agreements entered into for certain products or under licensing agreements. At March 31, 2009, the Group had
undertaken to pay €16.1 million over the coming year, subject to the fulfillment of all contractually specified production
criteria. At March 31, 2008, this commitment represented €21.2 million.
(4) The data at March 31, 2009 reflect the letter received by the Company dated December 5, 2008 in which BlueBay
undertook to provide a shareholder loan representing a maximum of €15 million. At March 31, 2008, the €36.3 million in
commitments received correspond mainly to the undrawn Banc of America credit facility.
(5) The Group obtains financing for its distribution subsidiaries through the assignment of trade receivables. As this
activity has been discontinued, no commitment has been recorded with regard to factoring at March 31, 2009.
Collateral provided as security for debt is disclosed in Note 13.