Atari 2010 Annual Report Download - page 102

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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
102
NOTE 23 – OFF-BALANCE SHEET COMMITMENTS
The table below summarizes the Group's off-balance sheet commitments:
(€ million) March 31, 2010 March 31, 2009 Notes
Commitments given
Guarantees given to suppliers (letters of credit)
-
-
Non-cancelable operating leases
15.5
18.8
1
Development and licensing agreements
1.0
16.1
2
Assignments of receivables (under “Dailly Act” arrangements, etc.)
-
-
Total commitments given
16.5
34.9
Commitments received
Bank guarantees (standby credit, letters of credit, documentary credit, etc.) 43.9 15.0 3
Other credit facilities secured by trade receivables
-
-
Total commitments received
43.9
15.0
(1) 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, 2010 March 31, 2009
Y+1 2.9 4.6
Y+2 3.0 2.9
Y+3 1.3 2.2
Y+4 1.0 0.9
Y+5 0.9 0.9
Subsequent years 6.4 7.3
Total minimum future lease payments – Continuing operations 15.5 18.8
(2) 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 € 1 million over the coming year, subject to the fulfillment of all contractually specified production
criteria. At March 31, 2009, this commitment represented €16.1 million.
(3) At March 31, 2010, the €43.9 million in commitments received correspond mainly to the undrawn BlueBay credit
facility.
Collateral provided as security for debt is disclosed in Note 13.
NOTE 24 – MANAGEMENT OF MARKET RISKS
24.1. RISK MANAGEMENT
Risk exposure is handled by the Group’s parent company based on conditions in the financial markets and in accordance
with procedures set by management. Foreign currency transactions are carried out in accordance with local regulations
and depending on access to the financial markets. Subsidiaries may do business directly with local banks under the
supervision of the parent company, provided that they comply with Group procedures and policies.
24.2. CURRENCY RISKS
The Group has not set up a currency hedging strategy for commercial transactions as there is an overall balance
between revenue and expenses in euros and US dollars, which are the Group’s main operating currencies.
Exposure to currency risk associated with the financing of subsidiaries is managed by the parent company, which sets up
specific hedges as required depending on the type of financing concerned. At March 31, 2010, the Group had not
hedged its overall exchange-rate exposure on these sums as they represent long-term financing for its US operations.
Nevertheless, as the Group's financial statements are presented in euros, assets, liabilities, revenue and expenses
denominated in other currencies have to be translated into euros at the applicable exchange rate in order to be reported
in the Group's consolidated financial statements. Whenever the value of the euro increases in relation to another