Financial Reporting - Rexel

7.2 | Other expenses
Restructuring costs
In 2011, restructuring costs were mainly related to restructuring plans in Europe for €31.2 million (mainly in
Spain, in the United Kingdom and in The Netherlands), in North America for €6.3 million and in Asia-Pacific
for €1.9 million (mainly in New Zealand).
In 2010, restructuring costs were mainly related to the restructuring plans initiated in 2009 to adapt the
Group’s structure to market conditions, and were located in Europe for €48.3 million and in North America for
€12.6 million.
Losses on non-current assets disposed of
In 2011, losses on fixed assets were mainly composed of discarded equipment in relation to the merger of
four branches in Spain for €0.8 million and of €0.4 million impairment of assets in the United Kingdom.
In 2010, losses on non-current assets were related to the sale of two legacy non-core businesses of
Hagemeyer:
• Hagemeyer Cosa Liebermann in Asia (HCL Asia), a company operating as a wholesaler and dutyfree
agent of luxury goods in Asian countries, sold to DKSH Holding Ltd, a Swiss company, on
February 25, 2010 for total consideration of USD12.7 million (€9.0 million). Capital loss on this
disposal amounted to €6.4 million.
• Haagtechno B.V., a company in The Netherlands involved in import, warehousing and distribution of
electronic products manufactured by Panasonic, sold to Panasonic Marketing Europe GmbH on
June 30, 2010 for a total consideration of €15.5 million. Capital loss on this disposal amounted to
€2.7 million.
Goodwill and assets impairment
In 2011, impairments on goodwill have been recognized for €59.5 million and allocated to The Netherlands
for €47.2 million, to Slovenia for €7.6 million and to New Zealand for €4.7 million, due to the deterioration of
the expected performance of those cash generating units. In addition, impairment on Spanish fixed assets
other than goodwill has been recognized for €20.7 million (see note 10.1). Moreover, this line item includes
€7.0 million impairment of the assets of Hagemeyer Brands Australia Pty Ltd, disposed of in the third quarter
of 2011.
In 2010, impairment was recognized on the goodwill of The Netherlands, New Zealand and Slovenia for
respectively €23.5 million, €8.9 million and €4.2 million.
Acquisition-related costs
In 2011, the costs incurred in connection with acquisition projects amount to €5.6 million.
Other operating expenses
In 2011, other expenses were mainly related to litigations with social security authorities for €6.5 million, to
employee claims for €2.0 million and to tax claims for €0.8 million.
In 2010, other expenses referred mainly to a cost of €2.3 million as a warranty granted by the Group as part
of share sales and a cost of €0.5 million in impairment of the group of assets and liabilities held for sale,
relating to the distribution activity in Australia of Smeg electrical appliances.
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