2011 Annual report - touax group

note 24. Other long-term liabilities
(€ thousands) 2011 2010 2009
Modular buildings 1,113 1,466 1,562
TOTAL 1,113 1,466 1,562
In 2009, the Modular Buildings division set up a new type of sales
agreement with a repurchase commitment. This agreement
involves recognizing the Group's repurchase commitment as
well as the deferred income relating to the lease of modular
buildings. Both these items are included in other long-term
liabilities.
The deferred front-end commission of Trust 2001 was wholly
deducted from the other long-term liabilities for a total of
€2.1 million in 2009.
note 25. Other current liabilities
(€ thousands) 2011 2010 2009
Capital creditors 4,563 256 602
Tax and social security liabilities 18,198 16,834 14,137
Accounts payable 23,576 25,482 35,004
Other current liabilities 8,790 5,939 7,166
Deferred revenue 2,914 923 1,863
TOTAL 58,042 49,433 58,772
The accounts payable mainly constitute income due to investors
in the Shipping Containers, Freight Railcars and Modular
Buildings businesses (€21.9 million at December 31, 2011,
€23.3 million at December 31, 2010).
In 2009, a conditional sale of $20 million, i.e. €13.9 million, had
been booked regarding an investor in the Shipping Containers
division. This debt was repaid in 2010, since the sale did not
take place.
note 26. Risk Management
➜ Market risk
Financial and market risks include currency risk, interest-rate
risk, equity risk, and counterparty risk.
Interest rate risk and exchange rate risk are managed centrally
within the Treasury and Finance Department which provides
monthly reports to the Executive Committee.
Interest rate risk and exchange rate risk 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
on the management of interest rate and exchange rate risks,
and decisions are made by the Group Executive Committee.
Standard office IT tools enable the Group’s to adequately
monitor these risks.
➜ Credit Risk
Credit risk is dealt with 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
Finance Department. Overall cash flow management at the
Group level allows to compensate for surplus cash and cash
requirements in order to limit the use of financial borrowing.
Liquidity risk management is assessed via the Group's
requirements defined in the three-year plan, the annual cash
flow budget, as well as via monthly and weekly forecasts.
All reports are sent to the Group's Executive Committee.
The objective for cash flow management is to meet the
Group's deadlines while maintaining the leeway decided by the
Group's Executive Committee and optimizing the financial
costs of the debt.
For that purpose, the Group has credit lines approved by its
banking partners, comprising revolving bank loans, a bond
issue (bond with redeemable equity warrant - OBSAR) in 2007
for pre-financing its assets, and credit lines for asset finance
leases, in order to optimize matching of debt servicing with the
income generated by assets.
All of the loans are negotiated or approved by the Treasury and
Finance Department in order to control the Group's commitments
both on and off the balance sheet.
Some loans include clauses with drawdown conditions (asset
eligibility) and others include financial commitments (ratios)
that the Group must abide by, as indicated in note 18.2.3.
In the short term, the Group's main liquidity risks concern the
non-renewal of revolving credit lines and the refinancing of the
OBSAR maturing in March 2012.
Consolidated financial statements
Financial information concerning the issuer’s assets, financial position and result 91