APC 2005 Annual Report Download - page 107

105
Consolidated Financial Statements
Note 26 - Finance costs and other
financial income and expense, net
Interest income and expense consist solely of income
and expense relating to financial assets (including
cash and short-term investments) and debt.
2005 2004
Interest income 40.3 36.1
Interest expense (156.4) (126.5)
Net gains/(losses) on the sale
of marketable securities 13.0 26.0
Finance costs, net (103.1) (64.4)
Dividend income 8.6 5.9
Exchange gains and losses, net 7.3 3.8
I
mpairment losses on financial assets (5.7) 1.1
Discounting adjustments of
non current assets and liabilities (7.8) (1.4)
Net gains/(losses) on disposal
of long term investments (2.8) -
Fair value adjustments* 0.6 -
Other financial expense, net (1.7) (4.3)
Finance costs and other financial
income and expense, net (104.6) (59.3)
*IAS 32/39 applied as from January 1, 2005.
(number of employees) 2005 2004
Production 40,792 39,092
Administration 47,878 45,102
Total average number
of employees 88,670 84,194
By region:
Europe 43,626 43,444
North America 21,724 19,028
Asia-Pacific 17,379 15,576
Rest of the world 5,941 6,146
The increase primarily reflects acquisitions during the
year.
Note 27 - Employees
27.1 - Number of employees
The average number of permanent and temporary
employees was as follows in 2005 and 2004:
27.2 - Employee benefits expense
2005 2004
Payroll costs (1) (3,485.8) (3,307.6)
Profit sharing
and incentive bonuses (62.4) (72.7)
Stock options (16.8) (8.9)
Total employee benefits
expense (3,565.0) (3,389.2)
(1) Including  47.9 million for pension and other post-
employment benefits and  22.6 million for other employee
benefits (see note 15).
2 7.3 - Management compensation and benefits
In 2005, directors’ fees of 0.7 million were paid to
the members of the Board of Directors.
Gross compensation and non-cash benefits paid to
members of the Executive Committee, including the
Chairman, for their functions within the Group totaled
7.7 million, of which 3.5 million for the variable por-
tion.
A
total of 3,335,100 options to purchase existing shares
or subscribe new shares have been granted to mem-
bers of Management through plans set up since 1998.
Pension and other post-employment benefit obliga-
tions with respect to members of Management
amounted to 32 million at December 31, 2005.
Restructuring costs included 68 million for France, of
which:
A 20 million provision for the “Ambition Industrielle”
plan to reorganize several plants in France as from
2006;
10 million in expenses to bring the R&D teams
together in Grenoble. This program began in 2004 and
should be completed in the first half of 2006;
20 million to finalize reorganization of the corpo-
rate functions and other plans.
As part of the redeployment of the Group’s IT systems,
10 million worth of equipment was scrapped. In addi-
tion, an 8 million provision was set aside to cover the
transfer of IT resources to Capgemini.
In the rest of Europe, restructuring costs totaled 27
million. The main items included a program to reduce
activity at a plant in Spain, for 8 million, and reorgan-
ization of operations in northern Europe, for 14.8 mil-
lion.
Among the other Operating Divisions, North America
announced a 7 million restructuring plan for the plant
in Waterman, Ontario (Canada).
Note 28 - Subsequent events
28.1 - Acquisitions
As part of its existing agreement with CIH Ltd., the
Group announced on January 12, 2006 that it would
acquire all the shares in its Clipsal Asia joint venture
for around $59 million. The transaction will be finalized
in 2006.