Ubisoft 2002 Annual Report Download - page 62

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On March 31, 2002, extraordinary income/expense included
the accumulated income/expense from companies that were
formerly controlled, and were then integrated into the scope of
consolidation during the fiscal year, together with the bonus
resulting from the purchase of the company's own shares,
the compensation received from a litigation settlement and
the Kmart bankruptcy.
On March 31, 2003, extraordinary income/expense is
primarily the result of:
a gain of 2.4 million related to litigation settlements,
an expense of 5.4 million due to the abandonment of cer-
tain projects,including 1.5 million on intangible assets and
3.9 million on licenses.
a provision of 22.9 million on 1,169,733 directly held shares
as of March 31, 2003.
gains of 20.7 million related to the buy-back of 1,200,699
convertible bonds (2.5% OCEANEs),realized during the fiscal
year.
2003
62
FINANCIAL
REPORT
VI.Extraordinary income/expense
Extraordinary income/expense is the result of operations not related to the normal activities of the company
(cf Art. 14 of decree of 11/29/1983). It breaks down as follows:
VII. Corporate tax
Corporate tax breaks down as follows:
Tax payable by French companies was calculated at the rate
in force on March 31, 2003,i.e. 33.33% plus 3%.
Since April 1, 2002, three companies have been fiscally
integrated: Ubi Soft Entertainment SA, Ubi EMEA SARL and
Ubi Soft France SA.In light of the tax losses of Ubi Soft France,
the corporate tax expenses of Ubi EMEA (K78) have been
totally absorbed.
During the financial year, a fiscal integration group was also
set up in the United States. Ubi Soft Holdings is the parent
company of a fiscal group including five companies:
Red Storm Entertainment Inc, Blue Byte Inc, Sinister Games
Inc, Ubi Soft Inc and Ubi.Com Inc. The companies were
integrated into the fiscal group on the date of acquisition
of the shares by Ubi Soft Holdings Inc.
Breakdown of corporate tax between operating income and
extraordinary income:
Breakdown of deferred taxes by main categories:
*including 8.6 for the transfer of TLC business assets to Red Storm and 3.9 for the restatement
of intangible assets
03.31.03 03.31.02
Current tax 14,606 2,869
Deferred tax (7,308) 6,347
Total 7,298 9,216
03.31.03 03.31.02
Leasing 25 70
ARD (deferred depreciation) (3,580) (7,695)
Margin on inventory 1,135 47
Elimination of intercompany transactions
(1,416) 790
Elimination of intercompany profit (226) (368)
Standardization (3,251) 13,425 *
Elimination of securities 5 78
Total -7,308 6,347
03.31.03 03.31.02
Deferred tax assets 17,254 14,185
Deferred tax liabilities 5,829 5,162
03.31.03 03.31.02
Extraordinary income/loss from management transactions 17,600 2,728
Extraordinary income/loss from capital transactions (19) (276)
Depreciation and provisions (24.434) (275)
Total extraordinary income/expense (6,853) 2,177
03.31.03 03.31.02
Tax on operating income 9,363 8,523
Tax on extraordinary income (2,065) 693
Total 7,298 9,216