financial report and registration document 2011 - Groupe SEB

5 Notes
Consolidated fi nancial statements
to the consolidated fi nancial statements
The Group also booked a €3.6 million impairment loss for its Scales
manufacturing facility at Rumilly (France) to take account of a decline in
production volumes following the decision to relocate the production of
budget scales to China.
2009
In 2009, following the deterioration in activity in the United States, especially
in the premium segment, a €20.4 million impairment loss was recognised
on All-Clad goodwill.
Impairment losses were also recorded on certain European manufacturing
assets:
� Omegna (Italy), for €5.0 million, due to the reorganisation announced
in September resulting in a signifi cant reduction in production capacity;
� Mayenne (France), for €2.5 million, following the downgrading of
production forecasts for coffee makers and instant hot water dispensers;
� Rumilly Drinks unit (France), for €1.2 million, due to the downgrading of
production forecasts for instant hot water dispensers;
� Rumilly Scales unit (France), for €0.6 million.
Note 6.3. GAINS AND LOSSES ON ASSET
DISPOSALS AND OTHER
2011
In 2011 this item mainly included:
� a €13.8 million gain recorded in February 2011 on the disposal of Plant 3 in
São Paulo, Brazil, following an agreement signed by Groupe SEB do Brasil
in August 2008 to sell this facility. The sale was conditional upon the
Group providing the purchaser with a decontamination certifi cate and
carrying out certain decontamination works at the site. These works were
performed in 2009 and 2010;
� the compensation received in settlement of the Pentalpha dispute (see
Note 29.1 – Signifi cant events and litigation);
� €1 million in expenses related to acquisitions carried out during the year;
� a €4 million net expense recognised in relation to new and settled disputes
that do not represent material amounts when taken individually.
98 GROUPE SEB Financial Report and Registration Document 2011
2010
In 2010 this item mainly included:
� a €2.6 million provision recognised for the dispute with one of the Group’s
former distributors in the Middle-East. Although the Group believes it
has complied strictly with the terms of the contract, the provision has
been booked to cover the uncertainties of the local judicial process and
other factors;
� a loss of €1.5 million on the disposal of a logistics warehouse in Germany;
� an additional €0.7 million provision for the dispute with a Chinese importer
described in Note 29.1 and the 2009 Registration Document, increasing
the total amount from €1.2 million to €1.9 million at 31 December 2010.
2009
In 2009, the Group booked a €1.2 million provision for a dispute with a
Chinese importer. The Group’s German companies paid exceptional
contributions of €1.0 million to the pension guarantee fund due to the
bankruptcy of certain companies participating in the plans in early 2009.
NOTE 7 FINANCE COSTS AND OTHER FINANCIAL INCOME AND EXPENSE
(in € millions) 2011 2010 2009
FINANCE COSTS (19.1) (12.0) (22.6)
Interest cost on long-term employee benefi t obligations (5.1) (5.6) (6.4)
Exchange gains and losses (0.5) 4.8 1.7
Income and expenses from fi nancial instruments 0.1 (0.1) (1.8)
Other (2.6) (3.0) 1.9
OTHER FINANCIAL INCOME AND EXPENSE (8.1) (3.9) (4.6)
The interest cost on long-term employee benefi t obligations corresponds
to the difference between the discounting adjustment for the year – arising
from the fact that benefi t payments are one year closer to being paid –
and the expected return on the corresponding plan assets. Discounting
adjustments to other long-term liabilities and provisions are also included
under this caption.
Exchange gains and losses on manufacturing and sales transactions
denominated in foreign currencies are included in “Operating result from
activity” (formerly “Operating margin”). Gains and losses on borrowings in
foreign currencies and related hedges are reported under “Other fi nancial
income and expense”.
Income and expenses from fi nancial instruments correspond to amortisation
of the time value of hedging instruments, and derivative instruments for
which the hedging relationship has not been documented.