2007 - Pinguely Haulotte

Consolidated financial statements of December 31st, 2007
Note 24 - Provisions
31/12/2006 Allowances Provisions Reversal of Transfers Assets 31/12/2007
used in unused and other held for
the period provisions changes sale
- Provisions for customer guarantees 3 279 4 465 (3 489) (28) 4 227
- Provisions for other contingencies 722 982 (26) (645) (3) (451) 579
- Provisions for other losses 670 129 (714) (3) (71) 11
Current provisions 4 671 5 576 (4 229) (645) (34) (522) 4 817
- Provisions for pension commitments 1 829 441 (66) (1) (486) 1 717
Non-current provisions 1 829 441 (66) 0 (1) (486) 1 717
Total provisions 6 500 6 017 (4 295) (645) (35) (1 008) 6 534
- Provision for guarantees: Haulotte Group records provisions for the cost of repairs or the replacement of products sold to customers
under warranty. The warranty period is usually one to two years. The allowance for the period is based on a statistical calculation for
the provision at year-end and reversals recognized at the end of the prior period presented above " Provisions used in the period ".
- Generally speaking, all lawsuits involving Group companies were reviewed at year-end, and based on the advice of legal counsel, the
appropriate provisions were recorded, when necessary, to cover the estimated risks.
- Provisions for pension commitments: see note 25.
Note 25 - Pension and related benefits
a) Assumptions
The only post-employment benefits granted to Group employees are pension indemnities and long-service awards.
Retirement commitments are estimated according to the projected unit credit method for end-of-career severance benefits according
to the procedures described in paragraph 3.9, on the basis of the following assumptions:
- A staff turnover rate based on available Group historical data;
- A salary increase rate based on the expected length of service, career development, the terms of collective bargaining agreements
and the rate of long-term inflation of 2% representing a total rate of 2,5%;
- A 4% discount rate based on the rate of long-term corporate bonds at December 31st, 2005. This rate includes the 2% rate of longterm
inflation,
- A retirement age for employees born before January 1st, 1950 of 62 for managers, 60 for clerical staff and workers, 55 for drivers;
- A retirement age for employees, born after January 1st, 1950 of 65 for managers, 63 for clerical staff and workers and 55 for drivers.
Concerning end-of-career severance benefits, the assumption retained is that of voluntary retirement that takes into account social
security contributions. This method of calculation complies with the French Pension Reform Act of August 21st, 2003 (Loi Fillon).
b) Changes in obligations over the period
Present value of the obligation at the opening (January 1st, 2007) 1 828
Cost of services rendered during the period 344
Interest credited in the period 93
Benefits paid in the period (123)
Liabilities held for sale (483)
Actuarial gains and losses 58
Present value of obligations at closing (December 31st, 2007) 1 717
The Group does not have hedge assets and actuarial gains and losses are recorded in the income statement.
ENGLISH