Loreal 2011 Annual Report Download - page 169

167REGISTRATION DOCUMENT − L’ORÉAL 2011
2011 parent company Financial Statements
5
Notes to the parent company  nancial statements
NOTE24 Off-balance sheet commitments
24.1. Lease commitments
Operating lease commitments amount to €61.6million due in less than one year, €172.3million due between 1 and 5years and
€31.7million due after 5years.
The breakdown of finance lease commitments is provided in note13.
24.2. Other off-balance sheet commitments
Confirmed credit facilities are set out in note20.
Other off-balance sheet commitments can be broken down as follows:
€ millions 12.31.2011 12.31.2010 12.31.2009
Commitments granted in connection with employee retirement
obligations and related benefits(1) 508.5 536.6 441.7
Commitments to buy out non-controlling interests 6.8 6.4 8.5
Guarantees given(2) 662.1 657.5 614.3
Guarantees received 10.1 10.1 9.4
Capital expenditure orders 64.0 44.8 70.5
Documentary credits 4.8 3.9 3.5
(1) The discount rate used to measure these commitments at December31st, 2011 was 4.50% for plans providing for payment of capital and 4.75%
forannuity plans, compared with respectively, 4.25% and 4.50% at end-2010, and 5.00% and 5.25% at end-2009.
An agreement for the pooling of employee-related liabilities was set up in2004. Pursuant to this agreement, commitments are allocated among
theFrench companies in the Group and their financing is organised in proportion to their respective payroll costs (customised for each plan) so that
thecompanies are joint and severally liable for meeting the aforementioned commitments within the limit of the collective funds built up.
(2) This caption includes miscellaneous guarantees and warranties, including €659.4million at December31st, 2011 on behalf of direct and indirect
subsidiaries (€641.5million at December31st, 2010 and €593.1million at December31st, 2009). Seller’s warranties are also included in this amount as
appropriate.
NOTE25 Changes in working capital
Changes in working capital represented a negative €60.7million at December31st, 2011, compared to a positive €41.5million at
December31st, 2010 and a positive €30.1 million at December31st, 2009, and can be broken down as follows:
€ millions 12.31.2011 12.31.2010 12.31.2009
Inventories 0.2 -7.9 5.2
Receivables -93.0 -49.5 50.3
Payables 32.1 98.9 -25.4
Total -60.7 41.5 30.1
24.3. Contingent liabilities
In the ordinary course of its operations, L’Oréal is involved in
legal actions and is subject to tax assessments, customs controls
and administrative audits. The Company sets aside a provision
wherever a risk is found to exist and the related cost can be
reliably estimated.
At the present time, no exceptional event or dispute is highly
likely to have a material impact on the earnings, financial
position, assets or operations of the Company.