NOTES TO THE STATEMENT OF CASH FLOWS
NOTE 36 NON CASH OPERATING EXPENSES In 2014, as in 2013, “Non-cash operating expenses” includes unrealized translation gains or losses on short-term balance sheet positions affecting the gain or loss on foreign exchange translation (see note 2.26 – Translation Methods), additional ﬁnancial provisions, the impact of measurement of stock options, and reversal of the provision for impairment of investments in non-consolidated subsidiaries.
NOTE 37 CHANGES IN WORKING CAPITAL REQUIREMENT In 2014, the net decrease of the working capital requirement amounted to €7,920,000 and comprised: • –€3,872,000 mainly corresponding to the decrease in trade accounts receivable, due to an improvement in cash collections (the variation in accounts receivable included “Deferred revenues” in the statement of ﬁnancial position, which for the most part comprised the share of recurring contracts billed but not yet recognized in revenues – see note 13); • +€1,435,000 corresponding to an increase in inventories; • +€753,000 arising from the increase of the receivable on the French tax administration (Trésor public) corresponding to the research tax credit and the competitiveness and employment tax credit receivable. This net amount corresponded to the difference between the 2014 tax credits after deduction from the corporate income tax due by Lectra SA, accounted for but not received (€6,482,000), and the 2010 research and development tax credit reimbursed in 2014 (€5,729,000); • −€2,917,000 corresponding to the increase of customers down payments in the statement of ﬁnancial position, due to new systems orders in Q4 2014 being higher than those in Q4 2013; • −€1,529,000 arising from the increase in the amount of variable compensation and proﬁt-sharing, payable in 2015 and relating to 2014, due to greater headcount and improved results; • −€982,000 corresponding to an increase in trade accounts payable; • −€808,000 arising from the change in other current assets and liabilities; taken individually, these changes are all immaterial. In 2013, the net increase of the working capital requirement amounted to €9,101,000 and broke down as follows: • +€5,005,000 mainly corresponding to an increase in trade accounts receivable, for the most part due to increased revenues in November and December 2013 compared to the same months of 2012; • –€584,000 corresponding to a decrease in inventories; • +€6,572,000 arising from the receivable on the French tax administration (Trésor public) corresponding to the (French) research tax credit and competitiveness and employment tax credit receivable for 2013, accounted for but not received, after deduction of the corporate income tax due by Lectra SA for the same year; • –€1,914,000 arising from the increase in trade payables. Finally, no change in other current assets and liabilities, taken individually, was material. At December 31, 2014, as at December 31, 2013, the ratio of accounts receivable net of down payments received and deferred revenues, measured in DSO (Days Sales Outstanding) represented less than ten days of revenues (inclusive of VAT).