Notes to the Financial Statements
Federation of Migros Cooperatives
Accounting standard
The financial statements of the Federation of Migros Cooperatives, Zurich, has been prepared in accordance with the regulations currently applicable under company law.
Balance sheet information
| CHF thousand | 31.12.2010 | 31.12.2009 | |
| Fire insurance values: | > Moveable property | 267'744 | 252'424 |
| > Real estate | 31'397 | 66'060 | |
| Undisclosed reserves released | 22'236 | 21'228 | |
| Sureties, guarantee commitments, charges in favour of third parties | 43'830 | 52'000 | |
| Liabilities in respect of staff pension schemes | 221'710 | 113'027 | |
Appropriation of net profit for the year
Proposal of the Board of Directors for the appropriation of net profit for the year:
| CHF thousand | 2010 | |
| Profit brought forward from previous year | 583 | |
| Profit for the current year | 14'381 | |
| Allocation of the Culture Percentage provisions1 | - 1'638 | |
| Net profit for the year for approval by the Assembly of Delegates | 13'326 | |
| Interest at 4% on FMC Cooperative capital | 600 | |
| Allocation to other reserves | 12'000 | |
| Carried forward to new account | 726 |
1The statutes state that at least 1/3% of the retail sales must be allocated to cultural, social and economic purposes. Every year it is determined whether too much or too little money has been spent on the Culture Percentage. Any unspent amounts must be spent within five years.
Risk management
The Federation of Migros Cooperatives Zurich operates a risk management system. The Board of Directors ensures that a risk assessment is carried out on time and in the appropriate manner. The Board is regularly informed by the Management about the risk situation of the company.
Based on a systematic risk analysis, the Board of Directors and the Chief Executives identify the main risks for the Federation of Migros Cooperatives and assess the likelihood of occurrence and financial effects. Measures implemented by the Board of Directors ensure that these risks are avoided, reduced or passed on.
Risks that have to be borne by the company are rigorously monitored. The results of the risk assessment are taken into consideration in the Board’s annual review of business strategy.
The last risk assessment was carried out by the Board of Directors on 04.12.2010 and established that risks were well covered by strategies, processes and systems.
Expenditure for cultural, social and economic policy purposes
| CHF thousand | 2010 | 2009 |
| Culture | 20'516 | 17'004 |
| Education | 4'797 | 13'535 |
| Social | 10'642 | 7'205 |
| Leisure | 4'803 | 2'640 |
| Economy | 2'179 | 1'860 |
| Administrative / infrastructure costs | 914 | 931 |
| Extraordinary expenditure (donation Haiti) | 1'000 | – |
| Total | 44'851 | 43'175 |
Asset transfers in 2010 under the Mergers Act
FMC transferred a property in Volketswil to Migros-Verteilbetrieb Neuendorf AG . In addition, two stockholdings of FMC were transferred to Migros Beteiligungen AG . Under the Mergers Act, these asset transfers within the group do not affect the rateable profits value. Throughout FMC this corresponded without exception to the regulations on residual values currently applicable under company law. The assets were partly transferred against payment and partly without payment. The below overview shows details of the asset transfers:
Transfer from FMC to the following group companies
| Recipient | Assets | % | Date | Transfer value in CHF thousand | ||
| Total | against payment | of which without payment | ||||
| Migros-Verteilbetrieb Neuendorf AG | Warehouse Volketswil | n.a. | 1.1.2010 | 19'776 | 19'776 | – |
| Migros Beteiligungen AG, Spreitenbach | Migrol AG | 97.5 | 21.6.2010 | 53'713 | – | 53'713 |
| Migros Beteiligungen AG, Spreitenbach | Scana AG | 100 | 21.6.2010 | 34'652 | – | 34'652 |
List of main equity interests
| Company | Domicile | Equity capital thousand | Equity interest in % | |
| Cremesso AG | Zürich | 200 | CHF | 100 |
| Denner AG | Zürich | 15'000 | CHF | 100 |
| EG Dritte Kraft AG | Wollerau | 600 | CHF | 100 |
| Ferrovia Monte Generoso SA | Mendrisio | 3'500 | CHF | 100 |
| Gries Deco Holding GmbH | DE-Niedernberg | 63 | EUR | 49.1 |
| LeShop SA | Ecublens | 4'500 | CHF | 90.5 |
| Migrolino AG (vormals Cevanova AG) | Bern | 6'000 | CHF | 100 |
| Migros Beteiligungen AG | Rüschlikon | 1'000 | CHF | 100 |
| Angehrn Holding AG | Gossau SG | 500 | CHF | 30 |
| Aproz Sources Minérales SA | Nendaz | 850 | CHF | 97.6 |
| Bischofszell Nahrungsmittel AG | Bischofszell | 6'000 | CHF | 100 |
| Chocolat Frey AG | Buchs | 4'000 | CHF | 100 |
| Delica AG | Birsfelden | 1'000 | CHF | 100 |
| Estavayer Lait S.A. | Estavayer-le-Lac | 3'500 | CHF | 100 |
| Ex Libris AG | Dietikon | 3'000 | CHF | 100 |
| Hotelplan Holding AG | Opfikon | 10'000 | CHF | 100 |
| Iloma Holding AG | Bolligen | 100 | CHF | 100 |
| Interio AG | Dietikon | 1'000 | CHF | 100 |
| Jowa AG | Volketswil | 10'000 | CHF | 100 |
| Liegenschaften-Betrieb-AG | Zürich | 18'000 | CHF | 100 |
| Limmatdruck AG | Spreitenbach | 6'000 | CHF | 100 |
| Magazine zum Globus AG | Spreitenbach | 33'000 | CHF | 100 |
| Mibelle AG | Buchs | 2'000 | CHF | 100 |
| Micarna AG | Courtepin | 10'000 | CHF | 100 |
| Midor AG | Meilen | 2'000 | CHF | 100 |
| Mifa AG Frenkendorf | Frenkendorf | 2'000 | CHF | 100 |
| Mifroma SA | Ursy | 3'000 | CHF | 100 |
| Migrol AG | Zürich | 52'000 | CHF | 97.5 |
| Migros Bank | Zürich | 700'000 | CHF | 100 |
| Office World AG | Zürich | 1'000 | CHF | 100 |
| Riseria Taverne S.A. | Torricella-Taverne | 100 | CHF | 100 |
| Scana Lebensmittel AG | Regensdorf | 9'000 | CHF | 100 |
| Migros Deutschland GmbH (restliche 51.2 % im Besitz der Genossenschaft Migros Basel) | DE-Lörrach | 10'000 | EUR | 48.8 |
| Migros (Hong Kong Ltd.) | HK-Kowloon | 100 | HKD | 100 |
| Migros-Verteilbetrieb Neuendorf AG | Neuendorf | 4'500 | CHF | 100 |
| Migros Verteilzentrum Suhr AG | Suhr | 35'000 | CHF | 100 |
| Migros Liegenschaften GmbH | DE-Lörrach | 5'120 | EUR | 94 |
| M Industry Canada Inc. | CA-Saint John NB | 300 | CAD | 100 |
| M Industry USA Inc. | Delaware | 700 | USD | 100 |
| SportXX AG | Zürich | 100 | CHF | 100 |
| SSP Informatik AG | Zürich | 100 | CHF | 100 |
| Swiss Industries GmbH | DE-Weil am Rhein | 125 | EUR | 100 |
| TKL Tiefkühllager AG | Neuendorf | 2'500 | CHF | 100 |