APC 2004 Annual Report Download - page 50

48
Balance sheet and
cash flow statement items
Total assets stood at 13,045 million at December
31, 2004.
Non-current assets
Non-current assets amounted to 7,153 million and
represented 54.8% of total assets, an increase of
9.1% from 2003.
This amount includes 4,078 million in net goodwill,
which rose 565 million over the period. Acquisitions
added a gross 1,002 million, of which 381 million
for MGE UPS, 267 for Andover Controls, 202 for
Clipsal and 118 for Kavlico. This was partially offset
by reclassification of the TAC trademark in an amount
of 92 million, an amortization charge of 217 mil-
lion and a 121 million negative currency effect.
Trademarks totaled 615 million following recogni-
tion of MGE UPS for 300 million, Clipsal for 152
million, TAC for 92 million, Andover for 31 million
and Security International (Andover Group) for 6
million.
Other intangible assets, primarily comprising soft-
ware, were stable at 231 million.
Property, plant and equipment (at cost) totaled
1,459 million. Acquisitions added 88 million and
were offset by 37 million in disposals an a 24 mil-
lion negative currency effect.
Total investments declined from 1,015 million to
508 million.
Investments accounted for by the equity method were
stable at 65 million, as the acquisition of a control-
ling interest in MGE Finances and disposal of VA Tech
Schneider HV offset the addition of Clipsal Asia
Holdings and Elau.
Non-consolidated investments net of reserves
declined from 370 million to 154 million, reflecting
the removal of Clipsal (185 million), which was fully
consolidated, and the Clipsal Asia joint venture (49
million), which was accounted for by the equity
method. This was partially offset by the addition of
Abacus (17 million) and Schneider Electric Relays
(27 million).
Other investments decreased from 585 million to
288 million. This reflects the consolidation of
Clipsal, which led to the elimination from the consoli-
dated balance sheet of a 259 million loan granted
by the Group at the end of 2003, and the consolida-
tion of MGE UPS, which led to the elimination in con-
solidation of 72 million in MGE UPS convertible
bonds held by the Group. This item also includes a
17 million receivable on the divestment of VA Tech
Schneider HV GmbH, which was paid in January
2005, and a 14 million receivable from Siemens in
settlement of a dispute.
Other non-current assets include net actuarial gains
and losses and unamortized prior service costs on
pension obligations in the United States, in an amount
of 262 million.
Current assets
Current assets declined 20% to 5,892 million and
represented 45.2% of total assets.
Inventories and works in progress rose by 21.8% to
1,370 million. Acquisitions accounted for half of the
increase, while the upturn in business accounted for
the rest.
Trade accounts receivable grew by 19.9% to 2,136
million. Acquisitions added 238 million. The remain-
der stems directly from higher sales.
Other accounts receivable and prepaid expenses
declined by 8.9% to 572 million. This item primarily
comprises tax receivables and foreign currency con-
version losses.
Deferred tax assets came to 753 million, primarily
reflecting a remaining deferred tax asset of 439 mil-
lion in respect of the loss incurred on the sale of
Legrand in 2002. The 48 million decrease stems
from the use of tax loss carryforwards in France and
a change in the tax rate used to calculate deferred
taxes on temporary differences expected to reverse in
2005 and 2006.
At December 31, 2004, total cash and cash equiva-
lents stood at 1,063 million compared with 3,087
million the year before, following the sale of short-
term investments worth around 2,054 million.
At December 31, 2003, the Group had a positive net
cash position 399 million. At December 31, 2004,
this position was again negative, with net debt totaling
485 million and representing 6.3% of equity.
Shareholders' equity
Shareholders' equity (excluding minority interests)
totaled 7,575 million, or 58.1% of the balance sheet
total. The 83 million decrease over the year is the
net result of the following:
Capital stock and additional paid-in capital declined
by 286 million following the cancellation of 347
million worth of Schneider Electric shares. This was
partially offset by the issuance of shares to cover the
exercise of stock options and the worldwide employee
stock purchase plan.
Retained earnings rose by 299 million, reflecting
income for the year of 565 million, the dividend paid
in 2003 in an amount of 334 million (including pré-
compte equalization tax of 88 million) and changes
in treasury stock in an amount of 65 million (net of
the capital decrease).
There was a negative 97 million change in the
cumulative translation adjustment.