2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

PARENT COMPANY FINANCIAL STATEMENTSNotes to the fi nancial statements4Marketable securitiesMarketable securities are stated at the lower of cost and probablerealisable value.In the case of treasury shares, probable realisable value correspondsto the average share price for the last month of the year.Treasury shares held for allocation to employees on the exercise ofstock options are written down on a plan-by-plan basis if their carryingamount exceeds the option exercise price.Probable realisable value of other categories of marketable securitiesalso corresponds to the average market price for the last month ofthe year.ReceivablesReceivables are stated at their nominal value. Provisions are bookedto cover any default risks.Exchange differences on translatingforeign operationsAssets and liabilities denominated in foreign currencies are translatedinto Euros at the rate prevailing on the balance sheet date and gainsor losses arising on translation are recorded in the balance sheetunder “Unrealised exchange gains” or “Unrealised exchange losses”.A provision is recorded for unrealised exchange losses.ProvisionsIn accordance with CRC standard 2000-06 relating to liabilities, thecompany records a provision to cover its obligations to third partieswhere the settlement of the obligation is expected to result in anoutflow of resources embodying economic benefits for the third partyand where the amount concerned can be estimated with sufficientreliability.The Company grants its employees retirement bonuses, determinedon the basis of length of service.In accordance with CNC recommendation 2003 R-01, the projectedbenefit obligation representing the full amount of the employees’accrued entitlements is recognised in the balance sheet as a provision.The amount set aside is calculated using the projected unit creditmethod, taking into account payroll taxes.Actuarial gains and losses on retirement benefit obligations arerecognised in profit by the corridor method. This method consists ofrecognising a specified portion of the net cumulative actuarial gainsand losses that exceed the greater of (i) 10% of the present value ofthe defined benefit obligation and (ii) 10% of the fair value of any planassets. The portion of actuarial gains and losses recognised for eachdefined benefit plan is the excess that fell outside the 10% “corridor” atthe previous reporting date, divided by the expected average remainingworking lives of the employees participating in that plan.The Company has also set up stock option and share grant plans forexecutives and employees.A liability is recognised when it is probable that the company will allotexisting shares to plan beneficiaries measured on the probable outflowof economic benefits, which is the probable cost of purchasing theshares if they are not already held by the company or their “entrycost” on the date of their allocation to the plan. If the stock optionsor stock awards are contingent upon the employee’s presence inthe company for a specific period, the liability is deferred over thevesting period.No liability is recognised for plans settled in new shares.No liability is recognised if the Company has not yet decided at theyear-end whether to settle the plans in new or existing shares.Other provisions concern specifically identified liabilities andcharges.Currency and interest rate instrumentsThe Company uses various financial instruments to reduce its exposureto currency and interest rate risks. The nominal amounts of forwardcontracts entered into by the Company are included in off-balancesheet commitments. Gains and losses arising on interest rate hedgesare recognised in the income statement on an accruals basis.Recurring profitRecurring profit includes all income and expense relating to theCompany’s ordinary activities.Non-recurring income/(expense)Non-recurring income and expense result from events or transactionsthat do not relate to Casino, Guichard-Perrachon’s ordinary activities asa holding company in view of their nature, frequency or amounts.Income tax expenseCasino, Guichard-Perrachon is the head of a tax group that includesthe majority of its subsidiaries (285 at 31 December 2010). Eachcompany in the tax group accounts for taxes as if it were taxed ona stand-alone basis.Registration Document 2010 | Casino Group133