REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

20. FINANCIAL INFORMATION CONCERNING THE COMPANY’S ASSETS AND LIABILITIES,
FINANCIAL POSITION AND PROFITS AND LOSSES
20.2 PARENT COMPANY FINANCIAL STATEMENTS FOR 2007
Guarantees given by Iliad on behalf of Group companies
Company
concerned Beneficiary
FREE DELL
NEWCOURT
FREE CISCO
SYSTEMS
CAPITAL
FREEBOX MEMEC
France SAS
Amount (in
thousands of
currency
units) Purpose of the guarantee
€679 Lease relating to IT equipment
€15,947 Financing for the purchase of equipment under 50 finance and equipment
leases
/ Guarantee for financial commitments made by Freebox
FREEBOX ASUS $30,000 Guarantee for financial commitments made by Freebox in relation to the
provision of electronic components
FREEBOX SEAGATE $6,000 Guarantee for financial commitments made by Freebox in relation to
the provision of electronic components
IH RUGELEC / Guarantee for financial commitments made by IH in relation to a
memorandum of understanding signed on December 11, 2003
IRE GENEFIM €50,000 12-year guarantee agreement effective from January 11, 2007
FREE
Infrastructure
BNP €3,000 Financial guarantee for commitments given by Free Infrastructure
FREE
Infrastructure
4.2.1 Collateralized debt
AXIONE €1,000 Guarantee for commitments made by Free Infrastructure in relation
to a turnkey contract for developing optical fiber networks
None of the property belonging to the Company has been used as collateral for any debt.
4.3 POST-EMPLOYMENT BENEFITS
Actuarial valuations of post-employment benefit obligations are made using the projected unit credit method,
with employee rights recorded on an accruals basis.
For each active participant, the benefit likely to be paid is estimated based on the rules defined in the applicable
collective bargaining agreement and/or company-level agreement, using personal data projected to the standard
age for payment of the benefit. The Company’s total obligations toward each participant (total actuarial value of
future benefits) are then calculated by multiplying the estimated benefit by an actuarial factor, which takes into
account the following:
• Assumptions concerning the employee’s probability of departure or death before the age of payment of
the benefit.
• The discounted value of the benefit at the measurement date.
These obligations are then allocated over each of the past and future years for which rights accrue for
beneficiaries under the plan. This allocation can be analyzed as follows:
• The portion of the Group’s obligation allocated to years prior to the measurement date (projected benefit
obligation) corresponds to obligations for services rendered. The projected benefit obligation represents
the Group’s obligation existing at the balance sheet date.
• The portion of the Company’s obligations allocated to the year following the measurement date (service
cost) corresponds to the probable increase in obligations due to the additional year’s service that the
participant will have provided to the Company at the end of the year.
The individual results of the measurement process are subsequently aggregated to obtain Company-level results.
The Company’s obligation in relation to post-employment benefits amounted to €39,000 at December 31, 2007.
This obligation was not recognized in the 2007 financial statements.
Iliad – Registration Document 2007 - 177