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94
14.6 - Treasury stock
A share buyback program was authorized by shareholders at the Annual Meeting on May 6, 1999, and renewed
at the Annual Meetings held on May 5, 2000, June 11, 2001, May 27, 2002, May 16, 2003, May 6, 2004 and
May 12, 2005.
The purpose of the program is to reduce dilution, optimize the management of capital and cover stock option
plans. The last authorized program provides for the purchase of a maximum of 10% of the share capital within
a period of up to eighteen months from May 12, 2005. Under the programs of May 6, 2004 and May 12, 2005,
2,747,887 shares were purchased during the year ended December 31, 2005, for a total of 161.1 million.
At December 31, 2005, the Group held 8,070,011 Schneider Electric shares which have been recorded as a
deduction from retained earnings for a total of 364.3 million.
The main changes during the year stemmed from the remeasurement at fair value of the Group’s AXA shares
(see note 8 "Available-for-sale financial assets") and differences in actuarial gains and losses (see note 15 "Pen-
sion and other post-employment benefit obligations"). For information on changes in hedging instruments, see
note 20 "Financial instruments".
14.7 - Other reserves
Changes in other reserves were as follows:
Gains and losses from Actuarial Total
remeasurement at fair value gains and
Currency Hedges Available- losses
instruments of metal for-sale
purchases financial
assets
December 31, 2004 22.3 22.3
A
pplication of IAS 32/39 as from Jan. 1, 2005:
- Currency instruments 7.9 7.9
- Remeasurement of
available-for-sale financial assets 29.0 29.0
- Hedges of metal purchases 5.0 5.0
January 1, 2005 7.9 5.0 29.0 22.3 64.2
- Unrealized net gains (losses)
on available-for-sale financial assets 115.6 115.6
- Realized net gains (losses) on
available-for-sale financial assets reclassified
in the statement of income -
- Net gains (losses) on currency instruments (5.5) (5.5)
-
Net gains (losses) on hedges of metal purchases
3.5 3.5
-
Net gains (losses) on post-employment benefits
(78.0) (78.0)
December 31, 2005 2.4 8.5 144.6 (55.7) 99.8
Weighted average rate
Of which US plans
2005 2004
2005 2004
Discount rate 4.9% 5.4%
5.8% 6.2%
Rate of compensation increases 3.3% 3.4%
4.1% 4.1%
Expected yield on plan assets 8.2% 8.4%
9.0% 9.0%
Rate of healthcare cost increases 9.4% 9.2%
10.0% 10.0%
Note 15 - Pension and other post-employment benefit obligations
The Group has set up various plans for employees covering pensions, termination benefits, healthcare, life insur-
ance and other post-employment benefits, as well as long-term benefit plans for active employees, primarily in
France and Australia.
Actuarial valuations are generally performed each year. The assumptions used vary according to the economic
conditions prevailing in the country concerned, as follows: