financial report and registration document 2011 - Groupe SEB

NOTE 13 OFF-BALANCE SHEET COMMITMENTS
(in € millions)
Financial Report and Registration Document 2011
6
Company fi nancial statements
Notes to the Company fi nancial statements
31 December 2011 31 December 2010
Notional amount Market value Notional amount Market value
MARKET CONTRACTS
Currency swaps (foreign currency borrower) 248.8 (2.6) 261.5 4.5
Currency swaps (foreign currency lender) - - 0 0
Forward sales of foreign currencies 143.2 4.5 111.2 3.8
Forward purchases of foreign currencies 203.8 (4.2) 66.9 (1.6)
Interest rate swaps 10.0 - 20 (0.2)
Aluminium derivatives 34.0 (3.8) 34 1.8
Nickel derivatives
CONTRACTS WITH SUBSIDIARIES
4.4 (0.5) 3.8 0.9
Currency swaps (foreign currency lender) 7.4 - 6.9 0.1
Forward purchases of foreign currencies 6.7 0.40 7.5 0.1
Aluminium derivatives 34.0 (3.8) 34 1.8
Nickel derivatives 4.4 (0.47) 3.8 0.9
The use and accounting treatment of fi nancial instruments are discussed
in Note 1.5.
The market value of financial instruments represents the gain or loss
that would be recognised if the contracts were settled on the market on
31 December 2011. It is estimated based on the exchange rate and interest
rate on 31 December 2011 or obtained from the counterparty banks.
Notional amounts represent the notional amounts of the contracts.
NOTE 14 PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS
Thierry de La Tour d’Artaise is a member of the top-hat pension scheme
set up for French members of the Group Executive and Management
Committees. This scheme, which is in addition to the applicable statutory
schemes, is made up of a defi ned contribution plan (known as the “Article 83”
plan) and a defi ned benefi t plan comprising:
� A deferred compensation plan, under which benefi ciaries are subject to
seniority conditions and the benefi ts are only payable if the executive is still
a member of the Group when he retires. The amount of benefi ts payable
under this plan in addition to the applicable statutory schemes represents up
to 25% of a reference remuneration calculated as the average of the target
remuneration for the executive’s fi nal three years of service with the Group.
� A supplementary pension plan, under which benefi ciaries are also subject
to seniority conditions and the benefi ts are only payable if the executive is
still a member of the Group when he retires. Entitlements under this plan
vest at an annual rate of 0.8% of a reference remuneration calculated as
the average of the target remuneration for the executive’s fi nal three years
with the Group. The number of years for which entitlements may accrue
under this plan has been capped at 20, representing a total of 16% of the
reference remuneration.
To qualify for the defi ned benefi t plan, Group executives must have been a
member of the Executive or Management Committee for at least eight years.
The aggregate benefi ts payable under both the top-hat scheme and the
applicable statutory schemes are capped at 41% of the reference remuneration.
In addition, on 19 March 2010, the Board of Directors decided to cap the
reference remuneration that serves as the basis for the pension benefi t
calculations at 36 times the annual Social Security ceiling applicable at the
executive’s retirement date.
The Group’s objective is to fund the entire benefi t obligation by making
regular top-up contributions to an external fund. Payments have been made
to the fund since 2008.
TERMINATION BENEFITS
Thierry de La Tour d’Artaise is not entitled to a termination benefi t in the
event of loss of offi ce.
His employment contract, signed when he joined the Group in 1994 and last
amended when he was appointed Chief Executive Offi cer, was suspended
on 1 March 2005 for the duration of his term as corporate offi cer.
In the same way as for other Executive Committee members, the contract
stipulates that in the event of termination of his employment contract at
Groupe SEB’s initiative, except as a result of gross negligence or serious
misconduct, or at his own initiative following a change of control of Groupe
SEB, Thierry de La Tour d’Artaise will be eligible for a total termination benefi t
equal to two years’ remuneration. Following adoption of France’s TEPA Act,
an addendum to this contract was signed making the termination benefi t
subject to performance conditions. The revised contract stipulates that the
termination benefi t, set at a maximum of two years’ gross salary and bonus,
will be adjusted based on the achievement rate of targets set over Thierry
de La Tour d’Artaise’s last four years of service, as follows:
� if average actual performance falls short of the targets by 50% or more,
no termination benefi t will be paid;
GROUPE SEB
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