Financial Report and Registration Document 2010 - Groupe Seb

4 NOTES
COMPANY FINANCIAL STATEMENTS
TO THE COMPANY FINANCIAL STATEMENTS
9.4. ACCRUED EXPENSES
(in € millions) 2010 2009
Bank borrowings 3.1 4.1
Other borrowings 0.5 0.2
Trade payables 0.5 0.2
Accrued taxes and payroll costs 2.4 2.2
Other payables 0.3 0.4
TOTAL 6.8 5.4
NOTE 10
OTHER INCOME AND EXPENSE, NET
(in € millions) 2010 2009
Group relief 0 1
Provisions for group relief to be transferred to subsidiaries (6.9) (18.6)
Gains and (losses) on sales of own shares (13.7) (3.8)
Other 0.4 (0.1)
Exceptional expense transfer 10.3 0
TOTAL (9.9) (21.5)
A total of 1,433,074 SEB S.A. shares were sold during the year, generating
a net loss of €13.7 million. Of this amount, €10.3 million was billed back to
the French subsidiaries (exceptional expense transfer).
Group relief is discussed in Note 11 and provisions for contingencies in
Note 5.
NOTE 11
GROUP RELIEF
Under group relief rules, tax savings resulting from tax losses incurred by
companies in the tax group are initially recognised by SEB S.A. and are
transferred back to the companies concerned when they return to profit.
The tax expense reported in 2010 corresponded to the difference between:
the tax group’s income tax benefit of €14 million, as follows:
€2.1 million in definitively acquired tax savings,
a benefit of €18.9 million resulting from losses arising during the year,
an expense of €7.2 million resulting from the use of tax loss
carryforwards; and
an expense of €28.8 million resulting from a correction to prior year
results (2008 group relief).
To neutralise the effects of group relief, a provision is recorded under “Other
expenses” to cover the tax loss carryforwards generated by members of
the tax group other than SEB S.A. The provisions are reversed to “Other
income” when the tax loss carryforwards are utilised. Movements during
the year were as follows:
a €14.2 million addition to provisions for losses of subsidiaries other than
SEB S.A. arising during the year;
a €7.2 million reversal in respect of losses utilised.
128 FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010 GROUPE SEB