BIC_REGISTRATION_DOCUMENT_2017
FINANCIAL STATEMENTS Consolidated financial statements
Other income and expenses incurred in 2017 mainly include restructuring costs for -24.7 million euros related essentially to Graphic Europe reorganization costs (redundancy costs and inventory write down). Other income and expenses incurred in 2016 mainly include: Restructuring costs for -1.4 million euros related to the ● reorganization of the Graphic business ;
restructuring costs for -1.9 million euros related to distribution ● reorganization in the Middle East and Africa regions; restructuring costs for -1.7 million euros related to U.S. sales ● force reorganization; a favorable adjustment related to the change in the U.S. retiree ● medical plan for 0.9 million euros.
NOTE 6
FINANCIAL INCOME
Accounting policies Interest income is accrued on a time basis, by reference to the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset to the asset’s initial value. Dividend income from investments is recognized when the Shareholder’s right to receive payment has been established. Considering the nature of the BIC Group’s activities, interest and dividends received are disclosed as financial income in the consolidated income statement. All borrowing costs are recognized as expenses in the period in which they are incurred.
Dec. 31, 2016
Dec. 31, 2017
(in thousand euros)
Interest income from cash and cash equivalents
5,224 3,632
2,708 4,193 2,518 9,419
Interest on bank deposits
Moratorium interests related to the 3% CIT reimbursment
-
Income from cash and cash equivalents
8,856
Interest expense
2,349
(3,152)
Hedging instruments revaluation
(2,206) (4,198) (4,057)
674
Net financial foreign exchange difference Net finance income/(Net finance costs)
14,897 12,418 21,837
FINANCE (COSTS)/REVENUE
4,799
The increase in financial income during the year 2017 compared to the year 2016 comes from several factors: An inter-company loan of 125 million U.S. dollars used to ● purchase BIC Graphic North America and previously considered as a net investment in a foreign operation was repaid during the year. Following the sale of BIC Graphic, the exchange differences recorded in equity in the translation reserve have been recycled in
the income statement at December 31, 2017 for an amount of 18.2 million euros; Income from cash and cash equivalents increased compared to ● the previous period due to the moratorium interests related to the 3% CIT reimbursment (see Note 7). This effect was offset by lower investment volumes.
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BIC GROUP - 2017 REGISTRATION DOCUMENT
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