financial report and registration document 2011 - Groupe SEB

IFRIC interpretation no. 6 adopted by the European Union in a regulation
published in the Offi cial Journal of the European Communities on 27 January
2006, which was early adopted by Groupe SEB in 2005, states that no
provision is required for historical waste, other than in respect of recycling
costs incurred during the reference period. As these costs are or will be offset
in most countries by an environmental charge payable by the consumer until
2011, the net cost of recycling historical waste will not have a material impact
on the Group’s income statement.
Concerning the treatment of products put on the market after the date of
transposition (13 August 2005 in the case of France), the directive states
that producers are individually responsible for guaranteeing fi nancing for the
recovery and recycling of the related waste.
To meet these obligations, Groupe SEB has joined collective pay-as-yougo
schemes similar to those in place for fi nancing historical waste. These
schemes are managed by coordinating organisations, such as Eco-Systèmes
SAS in France, in which Groupe SEB plays an active role.
The financial guarantees generally take the form of advances to these
organisations, based on the expected costs. While joining these schemes
does not exempt Groupe SEB from its individual liability, no provision (within
the meaning of IAS 37) is recognised as new products are brought to market,
because a producer can withdraw from the market concerned without
having to individually fulfi l its guarantee obligations, leaving the remaining
producers to jointly cover the costs of recycling. For this reason, provisions
NOTE 30 RELATED PARTY TRANSACTIONS
Financial Report and Registration Document 2011
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Consolidated fi nancial statements
Notes to the consolidated fi nancial statements
are recognised not when a product is introduced but when it has been on the
market during the period of reference. The provisions recorded corresponded
solely to the payment notices issued by the above organisations relating to
the Group’s contributions. These organisations can make adjustments during
later periods based on the actual amounts of the Group’s contributions.
Costs of recycling “new waste” are expected to rise in the coming years with
the probable increase in return rates and gradual introduction of recycling
schemes. These costs will also refl ect average product life cycles, changes
in sorted collection logistics costs and technological improvements related
to product design and recycling techniques.
Statutory employee training rights
Employees of Groupe SEB in France with permanent contracts are entitled to
20 hours’ training per year, which may be carried forward for up to six years.
If all or part of this entitlement is not used within six years, it is capped at 120
hours. The costs of supplying training as a result of this entitlement and of the
training allowances paid to employees who follow courses outside working
hours are covered by the employer. As the decision to incur these costs is
made by Group management and they relate to employee services to be
received in future periods, they are expensed as incurred. At 31 December
2011 the total amount of unused training hours accumulated by Groupe
SEB employees stood at 586,980 versus 590,810 at 31 December 2010 and
593,294 at 31 December 2009.
Note 30.1. TRANSACTIONS WITH ASSOCIATES AND NON-CONSOLIDATED COMPANIES
The consolidated fi nancial statements include transactions carried out in the normal course of business with associates and non-consolidated companies.
All of these transactions are carried out on arm’s length terms.
(in € millions) 2011 2010 2009
Revenue
Other income
Purchases
4.4 2.8 1.8
Other non-current fi nancial assets 0.4 0.2
Trade receivables
Trade payables
2.6 0.7 0.2
GROUPE SEB
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