financial report and registration document 2011 - Groupe SEB

Note 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,
Note 21.2. CLAIMS AND LITIGATION AND OTHER CONTINGENCIES
Financial Report and Registration Document 2011
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Consolidated fi nancial statements
Notes to the consolidated fi nancial statements
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.
Certain subsidiaries are involved in claims and litigation with third parties. The corresponding provisions have been determined in accordance with the
principle described in Note 1.4.
At 31 December 2011, 2010 and 2009 the main provisions were as follows:
(in € millions) 2011 2010 2009
Supplier claims and litigation 5.5 1.9 2.6
Local government claims, litigation and contingencies 14.5 13.5 6.4
Commercial claims, litigation and contingencies 4.4 3.6 1.1
Employee claims, litigation and contingencies 13.6 14.2 15.1
Sales returns 0.6 1.0 3.2
Other claims, litigation and contingencies 15.4 16.2 3.5
TOTAL 54.0 50.4 31.9
Note 21.3. RESTRUCTURING PROVISIONS
Restructuring provisions break down as follows: :
(in € millions) 2011 2010 2009
Severance costs 14.9 22.8 36.8
Site closure costs 1.7 6.2 6.5
TOTAL 16.6 29.0 43.3
The short-term portion of the 2011 restructuring provision amounted to €6.7 million. The remaining €10.0 million concern costs expected to be incurred over
the next one to fi ve years, mainly for early retirement schemes and for rent on sites no longer being used.
NOTE 22 EMPLOYEE BENEFITS
Note 22.1. ASSUMPTIONS
Provisions for pension and other post-employment benefi t obligations,
determined as explained in Note 1.4, mainly concern France and Germany.
The obligations are estimated by qualifi ed actuaries using a certain number
of assumptions. These assumptions are revised once a year.
Discount rates are determined based on the yields of investment grade
corporate bonds with maturities that match the remaining life of the
obligations at the measurement date.
GROUPE SEB
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