Ubisoft 2009 Annual Report Download - page 156

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The company only hedges its exposures on operating cash flows in the main significant foreign currencies
(US dollar, Canadian dollar and pound sterling). Its strategy is to hedge only one year at a time, so the
hedging horizon never exceeds 18 months.
The company first uses natural hedges provided by transactions in the other direction (development costs in
foreign currency offset by royalties from subsidiaries in the same currency). The parent company uses
foreign currency borrowings, forward sales or foreign-exchange options to hedge any residual exposures and
non-commercial transactions (such as inter-company loans in foreign currencies).
As of March 31, 2010, the amounts hedged giving rise to purchases and sales of foreign currencies
amounted to €48,985 thousand (see Note 2.3.6.2 Off-balance sheet commitments).
Note 23. Non-recurring items
Article 14 of the Decree of November 29, 1983 defines non-recurring items as those that are not related to
the normal operations of the company.
03.31.10 03.31.09
Non-recurring income:
Non-recurring income from management transactions 284 2.256
Non-recurring income from capital transactions 7,671 921
Non-recurring reversals 137,361 8,966
Non-recurring expenses:
Non-recurring expenses on management transactions 129 -
Non-recurring expenses on capital transactions 7,774 3,265
Non-recurring provisions 207,088 97,617
Non-recurring items -69,675 -88,739
As of March 31, 2010, non-recurring items mainly include:
- €206,985 thousand in allocations for accelerated tax depreciation on development
expenditure for software,
- €137,361 thousand in reversals for accelerated tax depreciation on development
expenditure for software.
Note 24. Income tax
As at March 31, 2010, the group includes Ubisoft Entertainment SA (head of the group), and all subsidiaries
whose head office is in France, with the exception of those created on the fiscal year.
Any tax savings arising from the use of losses at the tax group’s member companies will only be temporary,
since the company in question may use them at any time for its own purposes.
On a standalone basis (disregarding the tax consolidation group), Ubisoft Entertainment SA’s figures were as
follows:
03.31.10 03.31.09
Profit (loss) before tax from continuing operations -84,177 135,824
Non-recurring items -69,675 -88,739
Profit (loss) before tax -153,852 47,085
Income tax (credit) -786 13,532
Net accounting profit (loss) -153,066 33,553
Taxable income -171,576 40,340
Tax income comprises:
- cancellation of tax expense recorded net of tax credits by subsidiaries of the Group
integration tax for €1.431 thousand,
- head of group tax credits of €1,233 thousand,
- tax following a tax adjustment of €1,878 thousand (the company has accepted the
adjustment proposal from the tax authorities in connection with temporary differences).
As at March 31, 2010, the tax group generated a tax deficit of €171,576 thousand.