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Note 15 - Other Long-term Liabilities
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Other Long-term Liabilities, Disclosure [Text Block]
15—OTHER
LONG-TERM LIABILITIES
 
Other long-term liabilities consist of the following:
 
    December 31,
    2018   2017
Provision for retirement indemnities (Japan & France), less current portion    
2,222
      
2,008
  
Provision for employee termination indemnities (Italy) less current portion    
170
      
349
  
Provision for employee termination indemnities (Korea) less current portion    
30
      
–
  
Provision for Asset Retirement Obligation (Japan) less current portion    
118
      
101
  
Provision for warranty costs, less current portion    
191
      
184
  
Conditional government advances, less current portion    
1,039
      
1,039
  
Accrued interest less current portion    
30
      
–
  
Total    
3,800
      
3,68 1
  
 
Provision for asset retirement obligation in Japan is related to subsidiary’s offices and warehouses.
 
Pension, post-retirement and post-employment benefits for most of the Company’s employees are sponsored by European governments. In addition to government-sponsored plans, subsidiaries in Japan and France have defined benefit retirement indemnity plans in place. The provision for retirement indemnities at
December 31, 2018
represents an accrual for lump-sum retirement indemnity payments to be paid at the time an employee retires if he or she is still present at the Company at the date of retirement. This provision has been calculated taking into account the estimated payment at retirement (discounted to the current date), turnover and salary increases.
 
The provision is management best estimate based on the following assumptions as of year-end:
 
   
Pension Benefits - France
    2018   2017
Discount rate    
1.60
 %    
1.60
 %
Salary increase    
2.50
 %    
2.50
 %
Retirement age    
65
      
65
  
Average retirement remaining service period    
24
      
24
  
 
   
Pension Benefits - Japan
    2018   2017
Discount rate    
0.50
 %    
0.50
 %
Salary increase    
2.50
 %    
2.50
 %
Retirement age    
60
      
60
  
Average retirement remaining service period    
14
      
14
  
 
The discount rate retained is determined by reference to the high quality rates for AA- rated corporate bonds for a duration equivalent to that of the obligations. It derives from a benchmark per monetary area of different market data at the closing date.
 
In
2018,
provision presentation according to ASC
715
in thousands of euros:
 
    France   Japan
         
Non-current liabilities    
966
      
1,255
  
Current liabilities    
10
      
55
  
Accumulated other comprehensive income (loss)    
(161
 )    
(416
 )
Total    
815
      
895
  
 
In
2017,
provision presentation according to ASC
715
in thousands of euros:
 
    France   Japan
         
Non-current liabilities    
867
      
1,141
  
Current liabilities    
27
      
40
  
Accumulated other comprehensive income (loss)    
(165
 )    
(412
 )
Total    
729
      
769
  
 
 
The Company does
not
have a funded benefit plan. Detailed reconciliation of pension cost components (in thousands of euros) during fiscal year for each of the
three
years ending
December 31, 2018:
 
France   2018   2017   2016
             
Change in benefit obligations:                        
Benefit obligations at beginning of year    
895
      
842
      
694
  
Service cost    
67
      
66
      
45
  
Interest cost    
14
      
13
      
15
  
Actuarial (gain) / loss    
–
      
–
      
88
  
Amortization of net prior service cost    
1
      
1
      
–
  
Benefits paid    
–
      
(27
 )    
–
  
Benefit obligations at end of year
(1)
    
976
      
895
      
842
  
Unrecognized actuarial (gain) loss
(2)
 		    
141
      
144
      
147
  
Unrecognized prior service cost
(2)
    
20
      
22
      
23
  
Accrued pension cost    
815
      
729
      
672
  
 
(
1
)
The accumulated benefit obligation was
€692
thousand and
€627
thousand at
December 31, 2018
and
2017
respectively.
(
2
)
The amount in accumulated other comprehensive income (loss) to be recognised as components of net periodic benefit costs in
2019
is
€4
thousand.
 
Japan   2018   2017   2016
                         
Change in benefit obligations:                        
Benefit obligations at beginning of year    
1,182
      
1,162
      
906
  
Service cost    
131
      
118
      
81
  
Interest cost    
6
      
6
      
10
  
Amortization of net loss    
26
      
24
      
16
  
Actuarial (gain) / loss    
–
      
(12
 )    
147
  
Benefits paid    
(94
 )    
(17
 )    
(38
 )
Exchange rate impact    
(60
 )    
(99
 )    
40
  
Benefit obligations at end of year
(1)
    
1,311
      
1,182
      
1,162
  
Unrecognized actuarial (gain) loss
(2)
 		    
416
      
412
      
464
  
Unrecognized prior service cost
(2)
    
–
      
–
      
–
  
Accrued pension cost    
895
      
769
      
698
  
 
(
1
)
The accumulated benefit obligation was
€960
thousand and
€872
thousand at
December 31, 2018
and
2017,
respectively.
(
2
)
The amount in accumulated other comprehensive income (loss) to be recognised as components of net periodic benefit costs in
2019
is
€26
thousand.
 
The benefits expected to be paid in each of the next
five
fiscal years, and in the aggregate for the
five
fiscal years thereafter, are detailed in the table below:
 
    France   Japan
         
2019    
10
      
55
  
2020    
–
      
6
  
2021    
86
      
55
  
2022    
–
      
75
  
2023    
107
      
96
  
2024-2028    
277
      
743