Provisions for risks and charges increased in 2010 by a total of 4,819 thousand euro. Changes in current and non-current provisions are shown below.
Provisions for non-current risks Cust. agent.
ind.provision
Equity investment
loss fund TOTAL
January 1, 2009 86.010 - 86.010
Allocations 7.595 - 7.595 Utilizations in the period (25.851) - (25.851)
January 1, 2010 67.754 - 67.754
Allocations 12.441 4.607.994 4.620.435 Utilizations in the period (13.105) - (13.105)
December 31, 2010 67.091 4.607.994 4.675.085
Provisions for current risks Guarantee fund TOTAL
January 1, 2009 3.089.000 3.089.000
Allocations 2.080.000 2.080.000 Utilizations in the period (2.751.000) (2.751.000)
January 1, 2010 2.418.000 2.418.000
- Allocations 2.645.000 2.645.000 Utilizations in the period (2.433.000) (2.433.000)
December 31, 2010 2.630.000 2.630.000
Provision for equity investment losses
This provision refers to the subsidiary PRIMA FINN-POWER GmbH. For more details on this subject, see Note 11.3 - "Equity investments in subsidiaries".
Guarantee fund
This refers to provisions for work on Company products under warranty and is proportionate to the warranty costs that will be incurred. With respect to 2009 the warranty provision increases by 212 thousand euro, confirming the increased volume of orders.
Provision for agents’ customer indemnity
This represents the indemnity payables matured at year-end towards agents due for interruption to the agency relationship, in accordance with current legislation.
128 NOTE 11.21 - TRADE PAYABLES
TRADE AND OTHER PAYABLES 31/12/10 31/12/09
Payables owed to suppliers 19.845.737 16.167.125
Amounts due to subsidiaries 7.031.053 2.873.525
Trade payables 26.876.790 19.040.650
Advances from customers 2.869.487 2.715.746
Advances from customers 2.869.487 2.715.746
Other payables due to subsidiaries 4.832.230 9.854.320
Social security payables 1.190.908 1.008.778
Amounts due to employees 1.361.830 1.241.324
Other short-term payables 228.181 318.966
Accruals and deferrals 470.370 442.799
Other 8.083.519 12.866.188
The trade payables at 31 December 2010 amounted to 26,877 thousand euro and, compared to the previous financial year, the item recorded an increase of 7,836 thousand euro, corresponding to the increased volume of business.
“Advances from customers” contains advances on orders for machines that have not been delivered, and advances generated by application of IAS 18 for machines that have been delivered but not yet accepted by the end customer and thus cannot be entered among revenues. The item is substantially unchanged with respect to the previous year and amounted, on December 31, 2010 to 2,869 thousand euro compared with 2,716 thousand euro at the end of 2009.
Other payables to subsidiaries consist of 4,832 thousand euro entirely attributable to the EQT settlement in 2009, down compared to the previous year (this item on 31/12/2009 amounted to 9,854 thousand euro).
Payables to employees refers to deferred and non-matured compensation for leave not taken, the variable quota of the production bonus and incentives matured by managers and sales personnel and for travel expenses advanced by and owed to employees.
NOTE 12.22 - FISCAL LIABILITIES FOR CURRENT TAXES
This item amounts to 683 thousand euro (928 thousand euro as of 31.12.09) and includes:
DEFERRED CURRENT TAX LIABILITIES 31/12/10 31/12/09
VAT to foreign branches 7.305 4.570 Regional Trade Tax (IRAP) 161.649 399.585 Income tax deductions (IRPEF) 488.001 469.653 Other tax payables 25.924 54.210
129 NOTE 11.23 - NET REVENUES FROM SALES AND SERVICES AND OTHER REVENUES
The Net revenues from sales and services consist of:
Revenues from sales and services
value % value % value % value % value %
Laser Systems 59.679 79,1% 14.289 18,9% 21.735 28,8% 21.457 28,4% 2.189 2,9% Customer and other
services 15.775 20,9% 6.944 9,2% 5.793 7,7% 2.230 3,0% 808 1,1%
TOTAL 75.454 100,0% 21.233 28,1% 27.528 36,5% 23.687 31,4% 2.997 4,0%
data expressed in euro/000
TOTAL ITALY EUROPE REST OF THE WORLD N. AMERICA
Revenues at 31/12/2010 stood at 75,454 thousand euro and were up 12,211 thousand euro from 2009, (on 31/12/2009 their value amounted to 63,243 thousand euro). For more details on the subject of revenues, see the Management Report.
Other revenues are as follows.
Other operating income 31/12/10 31/12/09
Grants for research projects 1.169.570 203.042 Services provided and costs charged back to subsidiaries 787.123 1.103.101
Collection of security deposits 432.707 -
Extraordinary income 309.375 441.682
Revenue for Research & Development 80.560 60.240
Insurance refunds 11.442 9.293
Other 124.248 284.421
TOTAL 2.915.025 2.101.779
The grants for research entered in the income statement refer to facilitations on an unsecured basis for research and development and refer, in particular, to a grant in the capital account relative to a program of technological innovation to be paid by the Ministry for Economic Development, amounting to about 1.1 million euro.
Services and cost chargebacks with respect to the various companies of the Group are ascribable to services provided by the parent company to subsidiaries in relation to accounting, IT and managerial assistance.
Collection of a deposit for 433 thousand euro refers to security on a contract (not a trade contract) which was not stipulated at the conditions foreseen due to a breach by the other party.
Non-operating losses mainly refer to adjustments to appropriations made in the previous year.
Revenues from research and develop activities stand at 81 thousand euro and refer to the 3- year Hipernano project, in association with the Polytechnic University of Turin.
NOTE 11.24 - INCREASES FOR INTERNAL WORKS
Capitalization for increases for internal work was 1,718 thousand euro in 2010 against 2,321 thousand euro the previous year.
The amount entered in the income statement for the year refers to 152 thousand euro for costs incurred for the construction of production equipment and 1,566 thousand euro for development costs relative to research projects. Technical feasibility and generation of likely future economic benefits were investigated for all capitalized projects.
The former category of costs is classified among tangible assets, and the latter among intangibles.
130 NOTE 11.25 - PERSONNEL COST
Personnel costs 31/12/10 31/12/09
Salaries and wages 12.526.197 11.366.524 Social security contributions 3.799.140 3.472.886 Fidelity Premium 55.407 55.063 Severance indemnities paid into complementary
pension funds 728.714 738.585 Other costs 688.057 556.916
TOTAL 17.797.515 16.189.973
Personnel costs went from 16,190 thousand euro in 2010 to 17,798 thousand euro in 2010. The increase of 1,608 thousand euro is not the result of an increase in the size of staff in numerical terms, but reflects the fact that in 2010 the company no longer had recourse to use of redundancy schemes, such as government-subsidized layoff programs, as it did the previous year. This is a direct consequence of the increased production volumes achieved by the company.
Changes during the year in the number of employees are detailed by category:
Personnel
movements 31/12/09 Hi red employmentCeased Promoti ons 31/12/10 Year average
Executives 11 - 1 +2 12 10 Front-line managers 15 1 2 +2(2) 14 15 Managers 10 3 - +4(2) 15 13 Office staff 189 6 11 +3(4) 183 184 Intermediate 2 - +2 4 3 Production workers 64 2 3 (5) 58 61 TOTAL Italy 291 12 17 - 286 287 Foreign Branch office - Switzerland 3 - - - 3