Financial Report and Registration Document 2010 - Groupe Seb

3 NOTES
CONSOLIDATED FINANCIAL STATEMENTS
TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in € millions) 1 January 2010 Increases Reversals Utilisations
Other
movements (a)
31 December
2010
Product warranties (Note 21.1) 39.0 24.7 1.1 26.4 (1.3) 34.9
Claims and litigation and other
contingencies (Note 21.2) 32.0 25.1 1.7 9.7 4.7 50.4
Restructuring provisions (Note 21.3) 43.3 8.4 4.5 18.8 (0.6) 29.0
TOTAL 114.3 58.2 7.3 54.9 (1.9) 114.3
(a) “Other movements” include translation adjustments and the effect of changes in the scope of consolidation.
(in € millions) 1 January 2009 Increases Reversals Utilisations
Other
movements (a)
31 December
2009
Product warranties (Note 21.1) 39.4 32.5 1.7 31.2 39.0
Claims and litigation and other
contingencies (Note 21.2) 29.7 24.1 6.1 15.4 (0.3) 32.0
Restructuring provisions (Note 21.3) 26.0 27.5 1.2 10.2 1.2 43.3
TOTAL 95.1 84.1 9.0 56.8 0.9 114.3
(a) “Other movements” include translation adjustments and the effect of changes in the scope of consolidation.
(in € millions) 1 January 2008 Increases Reversals Utilisations
Other
movements (a)
31 December
2008
Product warranties (Note 21.1) 34.4 37.3 32.4 0.1 39.4
Claims and litigation and other
contingencies (Note 21.2) 32.8 10.1 10.9 4.7 2.4 29.7
Restructuring provisions (Note 21.3) 43.6 11.0 2.9 24.9 (0.8) 26.0
TOTAL 110.8 58.4 13.8 62.0 1.7 95.1
(a) “Other movements” include translation adjustments and the effect of changes in the scope of consolidation.
21.1. PRODUCT WARRANTIES
Provisions are recorded for the estimated cost of repairing or replacing
products sold under warranty to customers and consumers. The warranty,
which is either legal or contractual, is generally for a period of one or two years.
Provisions for product recalls are recorded as soon as the recall is decided.
21.2. CLAIMS AND LITIGATION AND OTHER
CONTINGENCIES
Certain subsidiaries are involved in claims and litigation with third parties. The
corresponding provisions are determined in accordance with the principle
described in Note 1.4.
At 31 December 2010, the main provisions were as follows:
(in € millions) 2010 2009 2008
Supplier claims and litigation 1.9 2.6 1.5
Local government claims, litigation and contingencies 13.5 6.4 8.6
Commercial claims, litigation and contingencies 3.6 1.1 2.3
Employee claims, litigation and contingencies 14.2 15.1 11.3
Sales returns 1.0 3.2 5.7
Other claims, litigation and contingencies 16.2 3.5 0.3
TOTAL 50.4 31.9 29.7
21.3. RESTRUCTURING PROVISIONS
Restructuring provisions break down as follows:
(in € millions) 2010 2009 2008
Severance costs 22.8 36.8 17.0
Site closure costs 6.2 6.5 9.0
TOTAL 29.0 43.3 26.0
The short-term portion of the 2010 restructuring provision amounted to
€15.0 million. The remaining €14.0 million concern costs expected to be
incurred over the next one to five years, mainly for early retirement schemes
and for rent on sites no longer being used.
94 FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010 GROUPE SEB