2010 annual report - touax group

Annual report 2010
(€ thousands) 2009 Provision Reversal 2010
Shipping containers 71 90 (144) 17
Modular Buildings 73 21 (4) 90
River barges 12 2 (13) 1
Unallocated 105 142 (136) 111
TOTAL 261 256 (298) 219
The following assumptions were made to assess superannuation
commitments:
• Employees’ predicted length of service, calculated using probability
coefficients for the various age groups,
• A discount rate of 3.8%,
• Pay rising at 1.5%,
• Retirement at age 65.
note 24. Other long-term liabilities
(€ thousands) 2010 2009 2008
Shipping Containers 2,123
Modular buildings 1,466 1,562 59
TOTAL 1,466 1,562 2,182
In 2009, the Modular Buildings division implemented a new type
of sales contract called “sales with buy-back agreement." This
agreement requires the recognition of the Group's repurchase
agreement as well as the deferred income concerning the lease
of modular buildings. This had an impact of €1,466,000 on
December 31, 2010.
The deferred initial commissions of the Trust 2001 have been
totally written-back from other long-term liabilities (€2.1 million)
in 2009.
note 25. Other current liabilities
(€ thousands) 2010 2009 2008
Capital creditors 256 602 7,299
Tax and social security liabilities 16,834 14,137 12,261
Accounts payable 25,482 35,004 22,540
Other current liabilities 923 1,863 1,189
Deferred revenue 5,939 7,166 4,464
TOTAL 49,433 58,772 47,753
Operating liabilities are mainly investors’ income due from the
Shipping Containers, Freight Railcars and Modular Buildings
divisions (€23.3 million on December 31, 2010, €18.5 million on
December 31, 2009).
In 2009, a conditional sale with an investor in the Shipping
Containers division for $20 million, i.e. €13.9 million, was booked.
This debt was reimbursed in 2010 because the sale did not
go through.
note 26. Risk Management
➜ Market risk
Financial and market risks include currency risk, interest-rate
risk, equity risk, and counterparty risk.
Currency risk and exchange rate risk are managed centrally
within the Treasury and Finance Department which provides
monthly reports to the Executive Committee.
Interest rate and currency risks are monitored through monthly
reporting by subsidiaries to the Treasury and Finance Department;
these reports include borrowings from outside
establishments as well as loans agreed between Group subsidiaries.
The information is checked, analyzed, consolidated and
forwarded to the Executive Committee. The Treasury and
Finance Department makes recommendations concerning the
handling of interest rate and currency risks, and decisions are
made by the Group's Executive Committee. Standard software
tools are used to ensure that the Group’s need to monitor these
risks is duly accommodated.
➜ Credit Risk
Credit risk is expanded upon in note 18.1.1.
➜ Liquidity Risk and Counterparty Risk
Liquidity risk is managed by the Group's Treasury and Finance
Department which reports to the Group's Administrative and
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