2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

3CONSOLIDATED FINANCIAL STATEMENTSNotes to the consolidated fi nancial statementsDuring the first half of 2010, the Chocolates TRS was unwound givingrise to a loss of €5 million.The Suramericana TRS contract states that Casino will receive thedifference between the market price (sale price of Citi’s interest)and a minimum sum of COP 21,804 per share for the interest soldby Suramericana, if positive, and will pay the difference to Citi ifnegative.The TRS on the 4.4% interest held by the other Colombian strategicpartners will have the same terms and conditions as the Chocolatesand Suramericana TRSs and will be effective for a maximum periodof three years and three months from the date of exercise of therelevant call or put options.Casino will receive or pay as applicable the difference between thesale price of the interest on the market and the TRS entry price (i.e.the sale price paid by Citi to the minority shareholders on the basisdescribed above).Casino has no contractual commitment nor the option to purchasethe shares from Citi at maturity of the TRS (net settlement in cash).The main risk for Casino is that the sale price received by Citi atmaturity of the TRS could be lower than the price paid by Citi tothe Colombian shareholders, and that Casino could be obliged topay Citi the difference, if negative, between the entry price (minorityshareholders’ put exercise price) and the exit price (market sale pricereceived by Citi).The risk has been measured on the basis of several factors:■■■the exercise price by the shareholders holding the 4.4% interestin Exito, which itself depends on when they elect to exercise theirput according to their assessment of market conditions and Exito’sfuture performance;the term of each TRS, which is a maximum of three years andthree months from the exercise date of the relevant put by theColombian partners;the market value of Exito shares on maturity of the TRSs.An independent bank has carried out several simulations to determinethe best time for the minority shareholders to exercise their put options.It has also estimated the market value of Exito shares at maturity ofthe TRSs using a multi-criteria approach based on forecast operatingperformance as set out in Exito’s business plan, investor expectationsand Exito’s share price.Given the specific features of these TRSs and the estimated associatedrisk (the share price was COP 23,360 on 31 December 2010), theGroup made a €17 million provision reversal at the year-end, fullyextinguishing the provision originally recognised. The “central case”(most probable) simulation gives a positive value of €18 million at theyear-end, which is not recognised in the financial statements. The “highcase” (more optimistic) and “low case” (less optimistic) simulationsgive a positive value of €31 million and €7 million respectively. In linewith the accounting treatment applied in previous years, no assetwas recognised at 31 December 2010 given the uncertainty of thesecash flows valuations.NOTE 27. PENSION AND OTHER POST-EMPLOYMENT BENEFITOBLIGATIONSThe Group’s obligations under defined benefit plans are measured on an actuarial basis. They mainly concern lump-sum retirement allowancesand length-of-service awards in France.Note 27.1. Defined benefit planNote 27.1.1. SummaryThe following table shows a reconciliation of the obligations of all group companies and the provisions recognised in the consolidated financialstatements at 31 December 2010 and 2009.€ millionsFrance International Total2010 2009 2010 2009 2010 2009Present value of projected benefit obligationunder funded plans 166 140 - - 166 140Fair value of plan assets (55) (62) - - (55) (62)Funding requirement 111 79 - - 111 79Present value of projected benefit obligationunder unfunded plans 13 11 18 17 31 28Unrecognised surplus (asset ceiling) - - - -LIABILITY RECOGNISEDIN THE BALANCE SHEET 124 90 18 17 143 107100 Casino Group | Registration Document 2010