Financial Report and Registration Document 2010 - Groupe Seb

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CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Employees by category (%) 2010 2009 2008
Direct labour 49.8 48.6 44.5
Other workers 40.6 41.4 44.5
Managers 9.6 10.0 11.0
TOTAL 100.0 100.0 100.0
NOTE 6
OTHER OPERATING INCOME AND EXPENSE
(in € millions) 2010 2009 2008
Restructuring costs (15.0) (41.3) (13.9)
Impairment losses (18.4) (29.7) (19.6)
Gains and losses on asset disposals and other (5.1) (2.8) 9.2
OTHER OPERATING INCOME AND EXPENSE, NET (38.5) (73.8) (24.3)
6.1. RESTRUCTURING COSTS
2010
Restructuring costs for the year amounted to €15.0 million, mainly
comprising:
in France, the new pension reform has extended the period during which
the Group will incur expenses under the pre-retirement plans introduced at
certain sites in 2006. The additional cost for 2010 amounted to €4.8 million;
in Brazil, the Group decided to insource all of its sales forces with the
aim of improving customer service quality and controlling the entire value
chain. The contracts with existing external sales representatives were
therefore terminated, leading to compensation costs of €6.5 million;
in China, responsibility for selling Tefal brand products was transferred
to the Supor sales force, leading to sales force rationalisation costs of
€2.4 million.
2009
Restructuring costs for 2009 amounted to €41.3 million, mainly comprising:
a plan to reorganise European iron manufacturing operations announced
on 11 February 2009. The related costs recognised in 2009 totalled
€7.9 million for the redundancy plan at the Erbach site in Germany;
in France, the reorganisation of iron manufacturing sites resulted in a
pre-retirement plan at the Pont-Évêque site;
provisions were also booked following the decision to combine the R&D
and marketing teams from the La Défense and Caen sites at a facility in
Burgundy to create a single, optimised “Electric Cooking Appliances” unit;
an additional provision was also booked as a result of the 2006 Vosges
site closure;
total restructuring costs in France therefore amounted to €20.4 million
in 2009;
in Italy, the Group announced job cuts in September 2009 at the Omegna
site, for which a €5.8 million provision was booked;
in light of the severe economic crisis in a number of markets,
the Group continued to realign its industrial (Brazil, United States),
administrative (Spain) and sales (Norway, United Kingdom) organisations,
giving rise to restructuring costs of €7.2 million in 2009.
2008
Restructuring costs for the year amounted to €13.9 million and mainly
concerned plans in the following countries:
France, for €5 million, corresponding to the additional costs of three plant
closures launched in 2006, mainly the increase in payroll taxes on early
retirement benefits and the cash cost of measures to assist the affected
employees for which provisions could not be booked according to IFRS;
the United Kingdom, for €6.6 million, related to the outsourcing of logistics
operations;
the United States, for €2.2 million, following the closure of the Medford,
Los Angeles and Budd Lake offices and the transfer of their sales and
marketing activities to the West Orange and Millville sites.
6.2. IMPAIRMENT LOSSES
2010
In application of the principle described in Note 1.4.3, certain manufacturing
cash-generating units (CGUs) were tested for impairment by comparing the
carrying amount of the assets of each CGU with their value in use, defined
as the sum of discounted future cash flows for the 5-year period covered by
the business plan. Terminal value was determined based on the expected
future cash flows to be derived from the assets in the last year of the plan.
CGUs comprising intangible assets with indefinite useful lives were tested
for impairment on a regular basis and CGUs comprising depreciable or
amortisable assets were tested only when there was an indication that they
may have been impaired. The main impairment tests and CGUs concerned
are discussed in Note 10 – Intangible Assets.
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GROUPE SEB
FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010
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