APC 2006 Annual Report Download - page 74

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Minority interests increased by 28 million to 122
million, reflecting the 37 million profit for the period,
partially offset by dividend payments of 15 million.
Provisions
Current and non-current provisions totaled 1,729 mil-
lion, or 9.1% of the balance sheet total. Of this, 287
million covered items that are expected to be paid out
in less than one year.
This item primarily comprises provisions for pensions
and medical care in an amount of 1,159 million. The
decrease over the period corresponds to translation
adjustments (41 million) and actuarial gains and
losses, recognized net of tax in equity, for a negative
30 million. The changes in the scope of consolida-
tion, represented an increase of 27 million.
Provisions for contingencies totaled 570 million.
These provisions cover product risks (warranties, dis-
putes over identified defective products), for 145 mil-
lion, economic risks (tax risks, financial risks generally
corresponding to seller’s guarantees), for 161 million,
customer risks (customer disputes and losses on long-
term contracts), for 57 million, and restructuring, for
85 million.
In addition, provisions in an amount of 38 million
were set aside to cover delays and difficulties in
deploying information systems.
The Group acknowledges the European Commission’s
decision concerning two former subsidiaries’ alleged
participation in a high voltage switchgear cartel and set
aside the amount of the fine for 8.1 million.
The year’s acquisitions added 19 million to provi-
sions in the balance sheet, while translation adjust-
ments reduced provisions by 20 million.
Other non-current liabilities
Other non-current liabilities amounted to 90 million,
corresponding primarily to the put option granted to
minority shareholders of MGE-UPS (35 million). It
also includes the debt related to the seller’s guarantee
amount in relation with Clipsal’s acquisition (47 mil-
lion). This amount is being held in escrow.
Deferred taxes
Deferred tax assets came to 673 million, reflecting
unused tax losses, in an amount of 245 million, and
future tax savings on provisions for pensions, in an
amount of 362 million.
Deferred tax liabilities totaled 305 million and prima-
rily comprised deferred taxes recognized on trade-
marks purchased during acquisitions.
The 174 million change over the year stems primari-
ly from the use of 133 million in tax loss carryfor-
wards.
Parent company
financial statements
Schneider Electric posted total portfolio revenues of
557.1 million in 2006 compared with 337.8 million
the previous year. Profit before tax came to 663.3 mil-
lion versus 401.8 million in 2005. Net profit stood at
887.8 million versus 450.8 million in 2005.
Equity before appropriation of net profit amounted to
7,298.7 million at December 31, 2006 versus
6,848.9 million at the previous year-end, after taking
into account 2006 profit, dividend payments, and
shares issued on the exercise of stock options in an
amount of 60.7 million.
Subsidiaries
Schneider Electric Industries SAS
Revenue totaled 3.0 billion in 2006, the same as
2005.
Operating profit decreased by 22.1% to 216.5 million
from 278.0 million in 2005 and represented 7.2% of
revenue.
Net profit came to 863.2 million compared with
582.5 million in 2005.
Cofibel
Cofibel's portfolio consists entirely of Schneider Elec-
tric shares.
Profit before tax came to 4.8 million versus 4.0 mil-
lion in 2005.
Profit after tax stood at 4.7 million compared with
3.4 million the year before.
Cofimines
Profit from continuing operations before tax amounted
to 1.7 million, versus 1.1 million from 2005.
After taking into account corporate income tax, net
profit stood at 1.6 million same as 2005.
Compensation and benefits
paid to corporate officers
Details on compensation and benefits paid to corpo-
rate officers are provided in the chapter on Corporate
Governance.
Business review
72