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100
On October 19 and 20, 2000, Schneider Electric
issued two tranches of 6.1275% bonds due October
19, 2007, in principal amounts of 400 million and
50 million, respectively.
These bonds are traded on the Luxembourg stock
exchange.
On April 14, 1999, Schneider Electric issued 750 mil-
lion worth of 3.75% bonds due April 14, 2004. On May
28, 1999, a further 250 million worth of bonds was
issued at the same interest rate and with the same
maturity. The second issue is treated as a second
tranche of the first. The Group redeemed bonds total-
ing 49 million in 2003 and 951 million in 2004.
17.4 - Other information
At December 31, 2005, Schneider Electric SA had
unused confirmed credit lines of 1,038 million. These
lines of credit are available for the period.
Note 18 - Other non-current liabilities
Dec. 31, 2005 Jan. 1, 2005 Dec. 31, 2004
MGE UPS acquisition debt* 135.5 121.9 48.6
Clipsal acquisition debt 41.5 35.6 35.6
Magnecraft assets acquisition - 16.2 16.2
Abacus acquisition debt 1.8 4.0 4.0
Other non-current liabilities 178.8 177.7 104.4
* of which ST portion:
112 million.
The acquisition price for MGE UPS Systems includes
an earn-out payment estimated at 38 million as of
December 31, 2005 (versus 14 million as of January
1, 2005) and deferred consideration of 25 million (see
note 4).
In addition, application of IAS 32 and IAS 39 as from
January 1, 2005 led to the recognition of a put option
granted to minority shareholders of MGE UPS in an
amount of 72 million at December 31, 2005 (see
note 2).
The agreement covering the acquisition of Clipsal
includes a clause providing for the payment of part of
the price in 2007 as part of the seller’s guarantee. This
amount is being held in escrow (see note 8.2).
In January 2005, the Group paid the balance of the
acquisition price for Magnecraft’s assets, in an amount
of $22 million.
Note 19 - Commitments and contingent liabilities
19.1 - Guarantees given and received
Dec. 31, 2005 Dec. 31, 2004
Contract counterguarantees (1) 173.8 171.0
Mortgages and collateral (2) 17.8 33.4
Guarantees 1.0 4.2
Other commitments given (3) 209.4 209.1
Guarantees given 402.0 417.7
Other guarantees received 35.4 33.6
Guarantees received 35.4 33.6
(1) On certain contracts, customers require a guarantee from a bank that the contract will be fully executed by the Group.
For these contracts, the Group gives a counterguarantee to the bank. If a claim occurs, the risk linked to the commitment is assessed
and a provision for contingencies is recorded when the risk is considered probable and can be reasonably estimated.
(2) Certain loans are secured by property, plant and equipment and securities lodged as collateral.
(3) Other guarantees given primarily comprise letters of credit issued by Square D, as well as guarantees to certain lessors that rental
payments will be made until the end of the lease.