financial report and registration document 2011 - Groupe SEB

6 Notes
Company fi nancial statements
to the Company fi nancial statements
NOTE 10 NET NON-RECURRING EXPENSE
(in € millions) 2011 2010
Group relief 0.0 0
Net provision for group relief to be transferred to subsidiaries (19.4) (6.9)
Gains and (losses) on sales of own shares (2.8) (13.7)
Other (1.0) 0.4
Non-recurring expense transfer 3.2 10.3
TOTAL (19.9) (9.9)
A total of 640,421 SEB S.A. shares were sold during the year, generating a net
loss of €2.8 million. Of the total losses recorded on sales of SEB S.A. shares
during the period from December 2010 to November 2011, €3.2 million was
billed back to the French subsidiaries (non-recurring expense transfer).
NOTE 11 GROUP RELIEF
Under group relief rules, tax savings resulting from tax losses incurred by
companies in the tax group are initially recognised by SEB S.A. and are
transferred back to the companies concerned if and when they return to
profi t.
The tax benefi t recorded in 2011 corresponds to the difference between:
� the tax group’s income tax benefi t of €28.9 million, breaking down as
follows:
� €3.5 million in defi nitively acquired tax savings,
� a €25.7 million benefi t resulting from the tax losses of the members
of the tax group arising during the year (including €4.6 million for the
Company’s own tax losses and €1 million related to differences in tax
rates),
NOTE 12 INCOME TAX ANALYSIS
Income tax for 2011 can be analysed as follows:
Group relief is discussed in Note 11 and provisions for contingencies in
Note 5.
� a €0.3 million expense resulting from the use of tax loss carryforwards;
and
� a €0.3 million benefi t related to tax audits concerning prior years.
To neutralise the effects of group relief, a provision is recorded under “Nonrecurring
expenses” to cover the tax loss carryforwards generated by
members of the tax group other than SEB S.A. The provisions are reversed
through “Non-recurring income” when the tax loss carryforwards are utilised.
Movements during the year were as follows:
� a €20.5 million addition to provisions for tax losses of subsidiaries other
than SEB S.A. arising during the year;
� a €1.2 million reversal in respect of tax losses utilised, of which €0.8 million
related to recent tax audits.
(in € millions) Before tax Tax expense/(benefi t) After tax
Profi t from ordinary activities 68.4 (4.7) 63.7
Net non-recurring expense (19.8) (7.1) (26.9)
Tax loss carryforwards generated/(utilised) 11.9 11.9
Group relief 29.2 29.2
TOTAL 48.6 29.2 77.8
150 GROUPE SEB Financial Report and Registration Document 2011