Atari 2009 Annual Report Download - page 136

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
136
 Interest expense of €2.3 million, chiefly on shareholder advances to Group entities;
 Impairment allowances of €42 million on interests in subsidiaries and related receivables, including
€13.3 million for Atari Europe, €18.7 million for CUSH and €9.6 million for Atari Interactive Inc. and a
provision of €20.5 million for foreign exchange losses.
20. Non-recurring income and expense
Year ended March 31, 2009
- Operating activities 2,353 3,687 (1,334)
- Investing activities 196 1,467 (1,271)
- Amortization and provisions 49 773 (724)
- Other - - -
Total 2,598 5,927 (3,329)
Year ended March 31, 2008
- Operating activities - 5,818 (5,818)
- Investing activities 17,201 6,471 10,730
- Amortization and provisions 1,863 - 1,863
- Other - - -
Total 19,064 12,289 6,775
(€ thousands)
Income
Expense
Net
Non-recurring expenses on operating transactions for fiscal 2008-2009 consisted primarily of:
 €2.3 million in severance pay in relation to the redundancy measures;
 €1.1 million for the restructuring of the Atari Group;
 €0.3 million for unused premises and relocation costs.
Non-recurring income from investment transactions consisted primarily of the proceeds from the sale of:
 Group subsidiary Atari Brasil to Namco Bandai Partners for €0.1 million;
 Group subsidiary Atari Italia to Namco Bandai Partners for €0.2 million (2% of the share capital).
Non-recurring expenses on investment transactions consisted mainly of:
 the derecognition of investments in subsidiaries and associates held by Atari Brasil for €1.4 million;
 the derecognition of investments in subsidiaries and associates held by Atari Italia for €0.1 million.
“Amortization and provisions” consisted primarily of:
 the reversal of a provision of €0.8 million for severance benefits;
 the reversal of a provision for unused premises.
For the year ended March 31, 2008, non-recurring items consisted of the following:
 expenses on management transactions corresponding mainly to €3.7 million in respect of severance benefits,
€1.4 million for the restructuring of Atari Inc. and €0.5 million for unused premises.
 income from investment transactions consisted primarily of the proceeds from the sale of the Test Drive
Unlimited license to Atari Interactive Inc. for €3.2 million and a Hasbro license to Hasbro Inc. for USD 19 million
(€14 million).
 Expenses on investment transactions mainly comprised the cost of the Test Drive Unlimited license
(€3.4 million) and the payment to Atari Inc. of USD 4 million (€3.1 million) for the sale of a Hasbro license.
 "Amortization and provisions" reflects reversals of provisions for severance benefits (€1.0 million) and unused
premises (€0.8 million).
21. Corporate income tax and profit sharing
(€ thousands)
Year ended
March 31, 2009
Year ended
March 31, 2008
Corporate income tax
6
1 872
Profit-sharing plan
-
(21)
As the Company has large carryover losses, the breakdown of corporate income tax between regular income and non-
recurring income is not relevant.
The Company heads up a tax consolidation group (Article 223 A et seq. of the General Tax Code) that includes Atari
Europe, I Music, Eden Games and Atari Publishing. For the fiscal year ended March 31, 2009 tax consolidation resulted
in the recognition of deferred tax assets of €6,000, versus €1,872,000 the previous year.
Following a change in ownership, Atari France SAS ceased to be a member of the tax consolidation group with
retroactive effect from April 1, 2008.