Electrolux 2010 Annual Report Download - page 141

NOTE 8 Leasing
Financial leases
At December 31, 2010, the net carrying amount of the Group’s
financial leases totals SEK 149m (4) and includes the lease for the
North American head office in Charlotte. Future financial lease
payments amount to SEK 166m.
Operating leases
The future amount of minimum lease-payment obligations are
distributed as follows:
Operating leases
2011 727
2012–2015 1,456
2016– 610
Total 2,793
Expenses in 2010 for rental payments (minimum leasing fees)
amounted to SEK 807m (903). Among the Group’s operating
leases there are neither material contingent expenses, nor
restrictions.
NOTE 9 Financial income and financial expenses
Group Parent Company
2010 2009 2010 2009
Financial income
Interest income
From subsidiaries — — 641 727
From others 329 255 48 83
Dividends from subsidiaries — — 2,560 3,178
Other financial income 3 1 2 1
Total financial income 332 256 3,251 3,989
Financial expenses
Interest expenses
To subsidiaries — — –233 –244
To others –404 –544 –275 –432
Exchange-rate differences
On loans and forward con-
tracts as hedges for foreign
net investments — — 218 –75
On other loans and borrow-
ings, net –16 41 279 530
Other financial expenses –36 –30 –18 –12
Total financial expenses –456 –533 –29 –233
Interest income from others, for the Group and the Parent
Company, includes gains and losses on financial instruments
held for trading. Interest expenses to others, for the Group and
the Parent Company, include gains and losses on derivatives
used for managing the Group’s interest fixing and premiums on
forward contracts in the amount of SEK –109m (–108) used as
hedges for foreign net investments. For information on financial
instruments, see Note 18 on page 51.
NOTE 7 Items affecting comparability
Group
2010 2009
Restructuring and impairment
Appliances plant in L'Assomption, Canada –426 —
Reduced workforce in Major Appliances, Europe –356 —
Appliances plant in Revin, France –71 —
Appliances plant in Forli, Italy –136 —
Appliances plant in Motala, Sweden –95 —
Appliances plant in Alcalá, Spain — –440
Appliances plants in Webster City and Jefferson, USA — –560
Office consolidation in USA — –218
Appliances plant in Changsha, China — –162
Appliances plant in Porcia, Italy — –132
Appliances plant in St. Petersburg, Russia — –105
Reversal of unused restructuring provisions 20 56
Total –1,064 –1,561
Classification by function in the income statement
Group
2010 2009
Cost of goods sold –1,062 –1,356
Selling expenses — –40
Administrative expenses –2 –165
Other operating income and expenses — —
Total –1,064 –1,561
Items affecting comparability in 2010 relates to restructuring costs
for the phase out of the cooker production factory in Motala, Swe-
den, and downsizing in several other production units within Major
Appliances Europe. Included in the 2010 charge is also the clo-
sure of the cooker production facility in L’Assomption, Canada,
announced in December 2010.
Items affecting comparability in 2009 covers the restructuring
costs for the closures of the Changsha refrigerator plant in China
and the laundry-products factories in St. Petersburg in Russia,
Alcalá in Spain, and in Webster City in USA. In connection with the
closing of the Webster City factory, also production at the Jefferson
satellite plant will be discontinued. Under this heading, also the
restructuring costs related to the downsizing of the washing-
machine production in Porcia, Italy, and the consolidation of the US
corporate-office operations to a single head office are included.
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