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Note 16 - Other Long-term Liabilities
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Other Long-term Liabilities, Disclosure [Text Block]
16—
OTHER LONG-TERM LIABILITIES
 
Other long-term liabilities consist of the following:
 
    December 31,
    2019   2018
Provision for retirement indemnities (Japan & France), less current portion    
2,167
      
2,222
  
Provision for employee termination indemnities (Italy) less current portion    
-
      
170
  
Provision for employee termination indemnities (Korea) less current portion    
56
      
30
  
Provision for Asset Retirement Obligation (Japan) less current portion    
117
      
118
  
Provision for warranty costs, less current portion    
110
      
191
  
Conditional government advances, less current portion    
1,071
      
1,039
  
Accrued interest less current portion    
46
      
30
  
Total    
3,567
      
3,800
  
 
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, 2019
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’s best estimate based on the following assumptions as of year-end:
 
   
Pension Benefits - France
    2019   2018
Discount rate    
0.90
 %    
1.60
 %
Salary increase    
2.50
 %    
2.50
 %
Retirement age    
65
      
65
  
Average retirement remaining service period    
24
      
24
  
 
   
Pension Benefits - Japan
    2019   2018
Discount rate    
0.60
 %    
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
2019,
provision presentation according to ASC
715
in thousands of euros:
 
    France   Japan
         
Non-current liabilities    
960
      
1,207
  
Current liabilities    
10
      
22
  
Accumulated other comprehensive income (loss)    
(67
 )    
(136
 )
Total    
903
      
1,093
  
 
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
  
 
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, 2019:
 
France   2019   2018   2017
             
Change in benefit obligations:                        
Benefit obligations at beginning of year    
976
      
895
      
842
  
Service cost    
68
      
67
      
66
  
Interest cost    
16
      
14
      
13
  
Net loss or (gain)    
2
      
-
      
-
  
Actuarial (gain) or loss    
(93
 )    
 
      
 
  
Amortization of net prior service cost    
1
      
1
      
1
  
Benefits paid    
-
      
-
      
(27
 )
Benefit obligations at end of year
(1)
    
969
      
976
      
895
  
Unrecognized actuarial (gain) loss
(2)
    
48
      
141
      
144
  
Unrecognized prior service cost
(2)
    
18
      
20
      
22
  
Accrued pension cost    
903
      
815
      
729
  
 
(
1
)
The accumulated benefit obligation was
€693
thousand and
€692
thousand at
December 31, 2019
and
2018
respectively.
(
2
)
The amount in accumulated other comprehensive income (loss) to be recognized as components of net periodic benefit costs in
2020
is
€1
thousand.
 
Japan   2019   2018   2017
                         
Change in benefit obligations:                        
Benefit obligations at beginning of year    
1,311
      
1,182
      
1,162
  
Service cost    
140
      
131
      
118
  
Interest cost    
6
      
6
      
6
  
Amortization of net loss    
27
      
26
      
24
  
Actuarial (gain) / loss    
(294
 )    
-
      
(12
 )
Benefits paid    
(3
 )    
(94
 )    
(17
 )
Exchange rate impact    
42
      
(60
 )    
(99
 )
Benefit obligations at end of year
(1)
    
1,230
      
1,311
      
1,182
  
Unrecognized actuarial (gain) loss
(2)
    
136
      
416
      
412
  
Unrecognized prior service cost
(2)
    
-
      
-
      
-
  
Accrued pension cost    
1,093
      
895
      
770
  
 
(
1
)
The accumulated benefit obligation was
€1,062
thousand and
€960
thousand at
December 31, 2019
and
2018,
respectively.
(
2
)
The amount in accumulated other comprehensive income (loss) to be recognized as components of net periodic benefit costs in
2020
is
€1
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
         
2020    
10
      
22
  
2021    
80
      
72
  
2022    
-
      
109
  
2023    
67
      
118
  
2024    
-
      
163
  
2025-2029    
265
      
529