FINANCIAL REPORT - Française des Jeux

44 — 2010 FINANCIAL REPORT
5.11.2. Reserves
The Group’s business of organising and operating betting games involves specifi c risks and commitments of particular signifi cance
which must be anticipated through appropriate coverage. Some of these risks and commitments are covered by the statutory reserve
of €257m, created by la Française des Jeux.
These risks are:
– operating risks that may arise at any time during the life cycle of the games (design, game equipment production, logistics, marketing,
etc.). They are measured, post-tax, at 0.3% of stakes, or €30m at the end of 2010, based on the 2009 fi nancial statements.
– rare and extreme-case counterparty risks transcending current risks for which models are available; they are covered by counterparty
funds and the permanent fund (Note 11.2). These risks are measured as and when a major change occurs in the gaming offer and
in players’ behaviour. At the end of 2009, they were covered to €100m by the statutory reserve;
– risks corresponding to the contractual liquidity commitment to the network of sale agents. These risks were measured, using a
contractual formula, at a post-tax amount of €126.7m at 31 December 2010.
5.12. PROVISIONS
5.12.1. Non-current liabilities associated with employee benefi ts
The following provisions have been made for employee benefi ts:
In thousands of euros 31.12.2008AllowancesReversals of provisions31.12.2009
usedunused
Pension obligations 9,019711- 302-9,428
Service recognition awards 2,437323- 71-2,689
Other non-current provisions -500--500
Non-current liabilities 11,4561,534- 373-12,617
In thousands of euros 31.12.2009AllowancesReversals of provisions 31.12.2010
usedunused
Pension obligations 9,428883- 380-9,931
Service recognition awards 2,689220- 76-2,833
Other non-current provisions 5001,935--2,435
Non-current liabilities 12,6173,038- 456-15,199
The parameters used for their determination are as follows:
31.12.2010 31.12.2009
Discount rate* 4.56%4.56%
Salary increase rate** 3.00%3.00%
of which infl ation 2.20%2.20%
Employee turnover rate** management2.40%2.40%
non-management1.70%1.70%
Mortality table INSEE TH-TF 2000-2002
* The discount rate is derived from the benchmark rate for AA corporate bonds with 10 and 15-year maturities.
** Age-adjusted.