Financial Report and Registration Document 2010 - Groupe Seb
Financial Report and Registration Document 2010 - Groupe Seb
Financial Report and Registration Document 2010 - Groupe Seb
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3 FINANCIAL<br />
CONSOLIDATED FINANCIAL STATEMENTS<br />
STATEMENTS<br />
CONTENTS<br />
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 67<br />
1.1. Basis <strong>and</strong> scope of consolidation 68<br />
1.2. Foreign currency translation 68<br />
1.3. Use of estimates 68<br />
1.4. Accounting policies <strong>and</strong> valuation methods 69<br />
1.5. Income statement presentation 72<br />
NOTE 2 CHANGES IN THE SCOPE OF CONSOLIDATION 73<br />
2.1. Changes in <strong>2010</strong> 73<br />
2.2. Changes in 2009 73<br />
2.3. Changes in 2008 73<br />
NOTE 3 SEGMENT INFORMATION 75<br />
3.1. Geographical segment information (by location of assets) 75<br />
3.2. Revenue by geographical location of the customer 77<br />
NOTE 4 OPERATING EXPENSES 78<br />
NOTE 5 EMPLOYEE BENEFITS EXPENSE 78<br />
NOTE 6 OTHER OPERATING INCOME AND EXPENSE 79<br />
6.1. Restructuring costs 79<br />
6.2. Impairment losses 79<br />
6.3. Gains <strong>and</strong> losses on asset disposals <strong>and</strong> other 80<br />
NOTE 7<br />
FINANCE COSTS AND OTHER FINANCIAL INCOME<br />
AND EXPENSE, NET 81<br />
NOTE 8 INCOME TAXES 81<br />
8.1. Income tax expense 81<br />
8.2. Effective tax rate 81<br />
8.3. Deferred tax assets <strong>and</strong> liabilities 82<br />
8.4. Other information 82<br />
NOTE 9 EARNINGS PER SHARE 83<br />
NOTE 10 INTANGIBLE ASSETS 83<br />
NOTE 11 PROPERTY, PLANT AND EQUIPMENT 86<br />
NOTE 12 LEASES 88<br />
NOTE 13<br />
INVESTMENTS IN ASSOCIATES, OTHER<br />
INVESTMENTS AND OTHER NON-CURRENT<br />
FINANCIAL ASSETS 88<br />
13.1. Investments 88<br />
13.2. Other non-current fi nancial assets 88<br />
NOTE 14 PRODUCT DEVELOPMENT COSTS 89<br />
NOTE 20 NON-CONTROLLING INTERESTS 93<br />
NOTE 21 PROVISIONS 93<br />
21.1. Product warranties 94<br />
21.2. Claims <strong>and</strong> litigation <strong>and</strong> other contingencies 94<br />
21.3. Restructuring provisions 94<br />
NOTE 22 EMPLOYEE BENEFITS 95<br />
22.1. Assumptions 95<br />
22.2. Analysis of pension <strong>and</strong> other post-employment benefi t obligations 96<br />
22.3. Recognised cost 97<br />
22.4. Movements in provisions 97<br />
22.5. Movements in pension <strong>and</strong> other post-employment benefi t<br />
obligations 98<br />
22.6. Analysis of plan assets 99<br />
22.7. Early retirement schemes 99<br />
NOTE 23 TRADE AND OTHER PAYABLES 100<br />
NOTE 24 BORROWINGS 100<br />
24.1. Total borrowings 100<br />
24.2. Net debt 102<br />
NOTE 25 FAIR VALUE OF FINANCIAL INSTRUMENTS 102<br />
25.1. <strong>Financial</strong> instruments 102<br />
25.2. Derivative instruments 104<br />
25.3. Information on assets <strong>and</strong> fi nancial liabilities measured at fair<br />
value 105<br />
NOTE 26 MARKET RISK MANAGEMENT 105<br />
26.1. Risk management 105<br />
26.2. Market risks 105<br />
26.3. Liquidity risk 108<br />
26.4. Credit risk 109<br />
NOTE 27 ENVIRONMENTAL EXPENDITURE 109<br />
NOTE 28 OFF-BALANCE SHEET COMMITMENTS 110<br />
28.1. Specifi c commitments 110<br />
28.2. Commitments arising in the ordinary course of business 110<br />
NOTE 29 CONTINGENT ASSETS AND LIABILITIES 110<br />
29.1. Contingent assets 110<br />
29.2. Contingent liabilities 111<br />
NOTE 30 RELATED PARTY TRANSACTIONS 111<br />
30.1. Transactions with non-consolidated companies 111<br />
30.2. Management remuneration <strong>and</strong> benefi ts 112<br />
NOTE 31 SUBSEQUENT EVENTS 112<br />
NOTE 15 INVENTORIES 89<br />
NOTE 16 TRADE RECEIVABLES 89<br />
NOTE 17 OTHER RECEIVABLES 90<br />
NOTE 18 CASH AND CASH EQUIVALENTS 90<br />
NOTE 32<br />
LIST OF CONSOLIDATED COMPANIES AT<br />
31 DECEMBER <strong>2010</strong> (SHOWING THE % INTEREST<br />
HELD BY THE GROUP) 113<br />
32.1. Fully consolidated companies 113<br />
32.2. Associates 115<br />
32.3. Non-consolidated companies 115<br />
NOTE 19 EQUITY 90<br />
19.1. Share capital 90<br />
19.2. Stock options <strong>and</strong> performance shares 91<br />
19.3. Reserves <strong>and</strong> retained earnings (before appropriation of profi t) 92<br />
19.4. Treasury stock 92<br />
66 FINANCIAL REPORT AND REGISTRATION DOCUMENT <strong>2010</strong> GROUPE SEB