APC 2007 Annual Report Download - page 162

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Note 2: Investments
2a - Shares in subsidiaries and affiliates
Dec. 31, 2006 Additions Disposals Dec. 31, 2007
Cost 1,819,483 2,822,032 (12,320) 4,629,195
Provisions (40,123) - 400 (39,723)
Net 1,779,360 2,822,032 (11,920) 4,589,472
2b - Other investment securities
Dec. 31, 2006 Increases Decreases Dec. 31, 2007
Schneider Electric SA 93,120 479,819 (505,439) 67,500
Other 117,943 - - 117,943
Provisions for other shares (16,497) - 65 (16,432)
Net 194,566 479,819 (505,374) 169,011
The main changes during the year concerned a 2.8 bil-
lion increase in the capital of US-based SEHI as part of
the APC acquisition. The shares were contributed to
Schneider Electric Industries SAS in December 2007.
The principal investments at December 31, 2007 were as
follows:
Other investment securities primarily include Schneider
Electric SA shares acquired for allocation on the exercise
of certain stock options. Treasury stock listed under "Other
investment securities" at December 31, 2004 was not re-
classified at December 31, 2005. However, all Schneider
Electric SA shares bought back since then for allocation
on the exercise of stock options are recognized under
"Marketable securities". Decreases correspond to shares
removed on the exercise of stock options (26.6 million in
2007 for this item).
In 2006, pursuant to the authorization granted by share-
holders at the Annual Meeting of May 3, 2006, Schneider
Electric SA implemented a liquidity contract during the year
to maintain a liquid market for its shares. "Other changes
in treasury stock" correspond to share purchases and
sales by the contract manager.
At December 31, 2007, 1,275,554 Schneider Electric SA
shares were recorded under "Other investment securities"
at a total cost of 67.5 million, of which 120,000 shares as-
signed to the liquidity contract in an amount of 11 million.
"Other" shares primarily consist of AXA shares, in an
amount of 101.5 million. Provisions for impairment almost
exclusively concern investments other than treasury stock
and AXA shares classified under this item.
At December 31, 2007, this item mainly comprised two
loans granted to Schneider Electric Industries SAS due
2008 and 2015, in an aggregate amount of 3,100.0 mil-
lion; a loan granted to Schneider Electric Holding Inc. in
2007 due 2008, in an amount of 502.1 million; a loan
granted to Boissière Finance SNC due 2010, in an
amount of 209.2 million; as well as accrued interest of
41.5 million.
Shares in subsidiaries Carrying value
and affiliates
Schneider Electric Industries SAS 4,344,481
Cofibel 136,898
Cofimines 82,609
Digital Holdings Co Ltd 21,249
Other (less than 20 million) 4,235
Total 4,589,472
2c - Advances to subsidiaries and affiliates
Dec. 31, 2006 Increases Decreases Dec. 31, 2007
Cost 2,980,848 1,851,319 (976,603) 3,855,564
Provisions (173) 9 - (164)
Net 2,980,675 1,851,328 (976,603) 3,855,400
160