Atari 2009 Annual Report Download - page 135

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
135
For the fiscal year ended March 31, 2009, the Company paid aggregate compensation to members of the Board of
Directors of €929,000 (no directors‟ fees were paid during the fiscal year), compared with €8,398,000 for the fiscal year
ended March 31, 2008 (including €233,000 in directors‟ fees).
French Act no. 2004-391 of May 4, 2004 on lifetime occupational training and labor relations resulted in amendments to
Articles L.933-1 et L.933-6 of the French Labor Code (Code de travail) and provides that persons permanently employed
in the private sector are entitled to a minimum of 20 hours per annum of individual training. They may accumulate those
hours over a six-year period (up to a maximum ceiling of 120 hours). None of the Company‟s employees made use of
their statutory training rights during the 2008 calendar year. The Company‟s obligations under the statutory training
entitlement amounted to 467 hours on March 31, 2009, versus 515 hours one year previously.
18. Depreciation and amortization allowances and reversals – recognition and reversals of
operating provisions
(€ thousands)
Year ended
March 31, 2009
Year ended
March 31, 2008
Provisions for contingencies and losses
8
37
Provisions for the impairment of current assets
0
106
Total reversals
8
143
Depreciation and amortization:
- intangible assets
122
86
- property, plant and equipment
190
153
Amortization of expenses attributable to several periods
1,174
230
Provisions for contingencies and losses
0
110
Provisions for the impairment of current assets
-
-
Total depreciation and amortization
1,486
579
19. Net financial income and expense
Financial income:
- Foreign exchange gains 407 223
- Interest income 9,252 8,476
- Reversals of provisions and expense transfers 58,298 3,447
- Other financial income 81 28
- Proceeds from the sale of securities 552 267
Financial expenses:
- Foreign exchange losses 579 422
- Interest expense 919 1,868
- Depreciation, amortization and provisions 218,875 63,436
- Other financial expenses - -
Net financial expense
(151,783) (53,285)
(€ thousands)
Year ended
March 31, 2009
Year ended
March 31, 2008
Financial income for the year ended March 31, 2009 reflected:
 Interest income of €9.3 million, corresponding to interest charged on loans to other Group companies;
 reversals of provisions and expense transfers in the amount of €58.3 million, mainly comprising reversals of
provisions for contingencies on Learning Ltd (€5.5 million), Atari Japan (€1.1 million) and Atari Brazil
(€0.6 million), as well as reversals of provisions for currency risks (€24.3 million) and reversals of
provisions on investment securities held in California US Holding (€17.8 million), Gameone (€4.9 million),
Atari Brasil (€1.4 million) – Atari Brasil was sold during the year).
Financial expenses for the year ended March 31, 2009 included:
 Interest payable on the €30 million loan granted by BlueBay for €0.5 million.
This loan was granted by BlueBay for a period of three months and carried interest at 15%. The main
purpose of the loan was to finance the acquisition of Cryptic Studios, and was repaid in full following the
issue of the ORANE-BSA bonds in 2009. BlueBay also received a €0.9 million arrangement fee for the
loan.
 Interest expense of €0.4 million, chiefly on shareholder advances to Group entities.
 Impairment allowances on interests in subsidiaries and related receivables of respectively €144 million
(including €131.2 million for Atari Europe, €2.1 million for Infogrames Interactive Ltd, €7.5 million for Eden
Studio, and €2.8 million for Microprose Ltd) and €62.1 million (including €59.5 million for Atari Europe) and
a provision of €1.5 million euros for foreign exchange losses.
 Additions to provisions for financial risks to cover the net negative worth of certain subsidiaries, notably
Atari Europe, for €12 million.
Financial expenses for the year ended March 31, 2008 included: