APC 2003 Annual Report Download - page 96

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Consolidated and Parent Company Financial Statements
94
In April 2001, the Group became aware that one of
its products, an emergency pushbutton installed on a
wide range of machines, failed to function in certain
circumstances. The Group initiated a comprehensive
product recall program. As of December 31, 2003,
approximately 16% of the 2.2 million installed push-
buttons had been located and repaired. A total of
€18.3 million was reserved for the entire product
recall program. At December 31, 2003, a provision of
€1.3 million remained to cover replacement costs
until the end of 2004, when the program will expire.
d. Other risks mainly include provisions recorded for
potential losses on asset sales, notably in Germany,
provisions for potential losses on assets related to a
foreign counterparty with which the Group is involved
in a complex litigation since the restructuring of Spie
Batignolles in 1995, and a provision for a claim under
the seller’s warranty given in connection with the for-
mation of a joint venture with Va Tech T&D GmbH.
The remaining provisions cover a variety of risks,
such as disputes, claims and various business risks.
Note 18. Long and Short-Term Debt
Long-term debt breaks down as follows:
(
€
millions)
Dec. 31, 2003 Dec. 31, 2002
Convertible and non-convertible bonds 2,151.0 1,450.0
Perpetual bonds 113.6 148.3
Bank and other borrowings 159.1 177.1
Obligations under capital leases (Note 6.2) 10.4 12.1
Employee profit-sharing 9.9 9.5
Less current portion (1) (1,008.7) (73.2)
Long-term debt 1,435.3 1,723.8
Short-term debt consists of the following:
(
€
millions)
Dec. 31, 2003 Dec. 31, 2002
Bank overdrafts 93.3 58.7
Commercial paper 60.2 395.0
Other short-term debt 53.8 86.0
Accrued interest 37.0 33.3
Current portion of long-term debt (1) 1,008.7 73.2
Short-term debt 1,253.0 646.2
Total long and short-term debt 2,688.3 2,370.0
(1) The
€
951 million 1999 bond issue due 2004 has been reclassified under short-term debt at December 31, 2003.
18.1 - Breakdown by maturity
(
€
millions)
Dec. 31, 2003 Dec. 31, 2002
2003 646.2
2004 1,253.0 1,077.8
2005 118.0 113.1
2006 44.8 32.5
2007 456.5 455.6
2008 754.9 2.5
2009 1.8 42.3
2010 and beyond 59.3
Total 2,688.3 2,370.0