Notes to the Consolidated Financial Statements
1. Basic information and principles of the report
2. Changes in Group structure
3. Summary of significant accounting policies
4. Risk assessment and management
5. Management of capital
6. Trade accounts receivable
7. Other current assets and current financial assets
9. Property, plant and equipment
10. Other non-current assets and non-current financial assets
11. Goodwill and intangible assets
12. Short-term debt
13. Other current liabilities and provisions
14. Long-term debt
15. Financial instruments
16. Retirement benefit plans
17. Participation plans
18. Deferred tax assets and liabilities
19. Other non-current liabilities and provisions
The Group is involved in several legal proceedings arising from the ordinary course of business. The Group believes that none of these proceedings either individually or in the aggregate is likely to have a material adverse impact on the Group’s financial position or operating results. The Group has established insurance policies to cover product liabilities and it makes provisions for potential product warranty claims.
The Group operates in many countries, most of which have sophisticated tax regimes. The nature of its operations and ongoing significant reorganisations result in complex legal structures for the Group and its subsidiaries. The Group believes that it performs its business in accordance with the local tax laws. However, it is possible that there are areas where potential disputes with the various tax authorities could arise. The Group is not aware of any dispute that either individually or in the aggregate is likely to have a material adverse effect on the Group’s financial position or operating results.
The product area Bathroom Ceramics was exposed to many challenges in the past. Declining export markets on a European level but also for the local demand in France led to production over-capacities and an ongoing cost pressure. As a result, in France the strategic options regarding the production sites of Allia SAS in La Villeneuve-au-Chêne and Digoin are being discussed. For this purpose, an information and consultation process was initiated with the central work council of the company. Closure of the two French production plants is considered in the contemplated project for the sites. This project is submitted to the information and consultation of Allia employee representative bodies. If this project would materialize the related cost could be in a range of MCHF 30 to MCHF 40. However, depending on the outcome of the negotiations and the finally chosen option, the amount could also be below or above this range.