Financial Reporting - Rexel
Financial Reporting - Rexel
Financial Reporting - Rexel
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The variation in provisions is detailed in the table below:<br />
(in millions of euros) Restructuring Tax litigation<br />
Other<br />
litigation &<br />
warranty<br />
claims<br />
Vacant<br />
properties<br />
Total<br />
provisions<br />
At January 1, 2010 …………….. "" 37.7 29.7 51.7 62.1 181.2<br />
Change in consolidation scope ……"" - - (3.4) - (3.4)<br />
Increase ……………………………. "" 22.4 2.4 6.8 11.1 42.7<br />
Use ………………………………… "" (27.7) (5.1) (33.9) (19.0) (85.7)<br />
Release ………………………………"" (2.2) (5.7) (1.0) (2.7) (11.6)<br />
Translation differencies ……………"" 1.7 0.7 1.5 2.0 5.9<br />
Other changes ………………………"" (2.7) 0.4 (1.8) (0.4) (4.5)<br />
At December 31, 2010 ………… "" 29.2 22.4 19.9 53.1 124.6<br />
Change in consolidation scope ……"" (0.3) - 1.4 (3.1) (2.0)<br />
Increase ……………………………. "" 15.5 1.6 15.7 15.3 48.1<br />
Use ………………………………… "" (20.3) (2.8) (1.7) (16.4) (41.2)<br />
Release ………………………………"" (0.3) (1.5) (3.7) (0.7) (6.2)<br />
Translation differencies ……………"" (0.2) - (0.1) 1.9 1.6<br />
Other changes ………………………"" (5.2) - (3.2) 8.8 0.4<br />
At December 31, 2011 ………… "" 18.4 19.7 28.3 58.9 125.3<br />
Provisions mainly comprise:<br />
• Provisions for redundancy plans to adapt the Group’s structure to current trading conditions. These<br />
restructuring plans resulted in the closure of branches, distribution centers and administrative<br />
headquarters. Provisions for restructuring activities undertaken at December 31, 2011, mainly<br />
concerned, Europe for €15.3 million (€11.2 million in 2010), North America for €2.4 million<br />
(€8.3 million in 2010) and Asia-Pacific for €0.4 million (€0.7 million in 2010).<br />
• Tax litigation concerned mainly France for €16.8 million (€15.2 million in 2010) and Canada for<br />
€2.5 million (€4.0 million in 2010);<br />
• Other litigations and warranty claims amounted to €28.3 million, of which €8.8 million relating to<br />
litigation with French social security authorities, €4.3 million relating to warranty claims for products<br />
sold (€7.6 million in 2010), €6.6 million for employee claims (€2.6 million in 2010) and €2.2 million for<br />
commercial litigations (€2.7 million in 2010). In 2010, change in provisions mainly related to<br />
settlement of the Ceteco proceedings for €29.8 million, following the settlement agreement<br />
concluded on February 8, 2010;<br />
• Provisions for lease commitments related to vacant properties concerned mainly the United Kingdom<br />
for €41.5 million (€41.2 million in 2010), the United States for €10.7 million (€5.0 million in 2010) and<br />
France for €2.7 million (€2.9 million in 2010). This provision in the United Kingdom included a<br />
€27.6 million reserve for onerous contract in relation to closure of a distribution centre operated by<br />
Hagemeyer and various lease contracts for vacant properties amounting to €13.9 million.<br />
18. | EMPLOYEE BENEFITS<br />
The Group provides employee benefits under various arrangements, including defined benefit and defined<br />
contribution plans. The specific conditions of these plans vary according to the rules applying in each country<br />
concerned. These plans include pensions, lump-sum payments on retirement, jubilees, early retirement<br />
benefits, and health care and life insurance benefits in favor of former employees, including retired<br />
employees. The most significant funded retirement plans are in Canada, the United Kingdom, the United<br />
States, The Netherlands and Switzerland, and are managed through vehicles independent of the Group. In<br />
France and Italy, the obligations principally concern lump-sum payments on retirement and long service<br />
awards (jubilees), and are usually unfunded.<br />
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