Financial Reporting - Rexel
Financial Reporting - Rexel
Financial Reporting - Rexel
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
- €6.4 million of net revenue from the gain on disposals of commercial branches properties,<br />
principally in the United States;<br />
- €5.6 million of acquisition costs arising from completed and proposed transactions; and<br />
- €7.2 million of net expenses related to litigation with social security authorities for €4.4 million,<br />
to employee claims for €2.0 million and to VAT claims for €0.8 million.<br />
In 2010, other income and expenses had represented a net expense of €107.7 million, consisting<br />
mainly of:<br />
- €65.2 million of costs related to the restructuring plans initiated in 2009 to adapt the Group’s<br />
structure to market conditions, mainly in Europe for €48.3 million and in North America for<br />
€12.6 million;<br />
- €36.6 million of goodwill impairment relating to operations in The Netherlands (€23.5 million),<br />
New Zealand (€8.9 million) and Slovenia (€4.2 million);<br />
- €10.6 million loss related to the disposal of H.C.L. Asia and Haagtechno BV; and<br />
- €12.7 million of other income, comprised of a €3.7 million tax indemnification payment from<br />
the PPR Group under an indemnity granted to <strong>Rexel</strong> in 2005, €3.6 million stemming from the<br />
reduction of pension liabilities, €2.5 million relating to reversals of restructuring provisions in<br />
France, and €2.9 million of proceeds from disposals of building (mainly in Sweden).<br />
In the fourth quarter of 2011, other income and expenses represented a net expense of €77.0 million,<br />
compared to €64.1 million in 2010, consisting mainly of €47.1 million impairment of goodwill, tangible<br />
and intangible assets (€37.0 million in 2010), €24.6 million of restructuring costs (€25.8 million in<br />
2010), €9.3 million costs related to litigation and €5.2 million of net revenue from the gain on disposals<br />
of commercial branches properties.<br />
Net <strong>Financial</strong> income / (expense)<br />
In 2011, net financial expense was at €191.1 million, as compared to €203.1 million in 2010, as a<br />
result of the decrease of the average indebtedness. The effective interest rate was 7.2% in 2011 and<br />
7.1% in 2010.<br />
In the fourth quarter of 2011, the effective interest rate was 7.7%, as compared to 7.1% in the fourth<br />
quarter of 2010.<br />
The increase is due to the refinancing of the Senior Credit facilities by the €500 million Senior notes<br />
issued in May 2011, which have a longer term but a higher nominal interest rate.<br />
Share of profit/(loss) of associates<br />
In 2011, the share of profit of associates was a gain of €2.8 million, related to DPI (US consumer<br />
electronics retail distributor), compared to €4.7 million in 2010. The decrease in the share of DPI profit<br />
results from lower sales in 2011 as compared to 2010, due to more difficult market conditions in the<br />
United States.<br />
In the fourth quarter of 2011, the share of profit in DPI was €1.6 million, as compared to a €1.5 million<br />
for the same period in 2010.<br />
Tax expense<br />
The effective tax rate was 22.1% in 2011, compared to 20.5% in 2010. In 2011, the tax rate included<br />
the impact of UK tax losses carried forward indefinitely and incurred in previous periods that were<br />
recognized for the first time as a result of the Group’s ability to utilize these losses against future<br />
taxable profits. In 2010, the effective tax rate included the recognition of non-recurring French tax<br />
losses incurred in 2009.<br />
Net income<br />
Net income amounted to €319.0 million in 2011, an increase of 39.2% as compared to €229.2 million<br />
in 2010.<br />
In the fourth quarter of 2011, net income was largely stable at €60.5 million versus €61.5 million in the<br />
fourth quarter of 2010.<br />
8