Financial Report and Registration Document 2010 - Groupe Seb

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CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Revenue is recognised when the significant risks and rewards of ownership
are transferred to the buyer – generally when the customer receives a
product – for an amount corresponding to the fair value of the consideration
received or receivable as determined after deducting rebates and discounts.
Advertising expense contributions billed by customers and the cost of
consumer promotions that do not fulfil the criteria for recognition as operating
expenses are recognised as a deduction from revenue. The reported amount
of revenue also includes miscellaneous revenues.
Freight and other costs billed to customers are treated as an integral part
of revenue.
Accruals are booked for deferred rebates granted to customers on the basis
of contractual or constructive commitments identified at the period-end.
1.5.2. Operating margin and operating expenses
The Group’s main performance indicator is operating margin, which
corresponds to revenue less operating expenses. Operating expenses
comprise the cost of sales, research and development costs, advertising
costs and distribution and administrative expenses. Statutory and
discretionary employee profit-sharing and non-recurring operating income
and expenses, as defined in Note 1.5.4, are excluded from the calculation.
1.5.3. Recurring operating profit
Recurring operating profit corresponds to operating margin less statutory
and discretionary employee profit sharing.
1.5.4. Operating profit
Operating profit comprises all the recurring and non-recurring income and
expenses generated in the course of the Group’s ordinary activities, including
income and expenses resulting from one-off decisions or transactions that
are unusual in terms of their amount. Non-recurring operating income and
expenses mainly include the following items (see Note 6 for details 6):
costs of significant restructuring plans;
impairment losses on property, plant and equipment and intangible assets,
including goodwill;
costs related to business combinations (excluding the costs of issuing
equity instruments or of new debt contracted for the purpose of the
business combination) and the remeasurement at fair value of any
previously held investment on the date control was obtained;
gains or losses recognised upon losing control of a subsidiary, including
the remeasurement at fair value of any investment retained;
gains and losses on very exceptional events (litigation, asset disposals, etc.
involving unusually large amounts) and changes in provisions booked for
these types of events.
1.5.5. Other income statement items
Accrued interest on interest-bearing instruments is recognised by the
effective interest method based on the purchase price.
Dividend income is recognised when the shareholder’s right to receive
payment is established.
Finance costs are recognised in the income statement on an accruals basis.
1.5.6. Earnings per share
Basic earnings per share correspond to profit attributable to owners of the
parent divided by the weighted average number of shares outstanding during
the period, excluding treasury stock.
Diluted earnings per share are calculated by adjusting the weighted average
number of shares outstanding to take into account the dilutive effect of stock
options and other equity instruments issued by the Company.
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NOTE 2
CHANGES IN THE SCOPE OF CONSOLIDATION
2.1. CHANGES IN 2010
No subsidiaries were acquired or divested in 2010. The only change in
the scope of consolidation concerned the Peruvian branch previously
consolidated by Groupe SEB Colombia, which is now a subsidiary called
Groupe SEB Peru and is fully consolidated by the Group. This internal
transaction had no impact on the consolidated financial statements.
Following approval by Colombian competition authorities in early December,
Groupe SEB signed a contract on 17 December with the main shareholders
of Colombia-based Imusa to acquire a majority interest in the Company.
Given the time required to comply with stock market regulations, the
transaction should be completed at end February 2011. This transaction
had no impact on the 2010 consolidated financial statements. (see Note 31 –
Subsequent events)
2.2. CHANGES IN 2009
No subsidiaries were acquired or divested in 2009. The only change in scope
of consolidation during the period concerned the Groupe SEB Retailing
subsidiary, which was accounted for by the equity method in 2008 and fully
consolidated from 1 January 2009. This change in consolidation method did
not have a material impact on the financial statements.
2.3. CHANGES IN 2008
Supor
Supor is China’s leading cookware manufacturer, with a very broad
product range that includes pressure cookers, woks and frying pans.
It also manufactures small home equipment, such as rice cookers, electric
pressure cookers, slow-cookers and induction hotplates, which are sold
GROUPE SEB
FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010
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