APC 2009 Annual Report Download - page 134

2009 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC132
CONSOLIDATED FINANCIAL STATEMENTS
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note4 Research and development
Research and development costs break down as follows:
2009 2008
Research and development costs in cost of sales 143 161
Research and development costs in commercial expenses 7 16
Research and development costs in R&D costs (1) 403 402
Capitalised development costs 211 195
Total research and development costs of the year 764 774
(1) Of which, EUR 19million research and development tax credit in December2009 and EUR 26million research and development tax
credit in December2008.
Amortisation of capitalised development costs came to EUR 85million in 2009 and EUR 61million in 2008. In addition, exceptional impairment
losses of EUR 4million were recorded on capitalised development costs in 2009, compared with EUR 2million in 2008.
Note5 Depreciation, amortisation and provision expense
Depreciation, amortisation and provision expenses recognised in operating expenses were as follows:
2009 2008
Included in cost of sales:
Depreciation and amortisation (343) (305)
Provisions (10) (38)
Included in selling, general and administrative expenses:
Depreciation and amortisation (130) (147)
Provisions (90) (18)
DEPRECIATION, AMORTISATION AND PROVISION EXPENSE (573) (508)
In 2009, provisions in an amount of EUR 17million were recorded in
other operating income/expense. Impairment of other non-current
assets represented a net charge of EUR 134million, of which
EUR 122million were recorded as goodwill impairment and impairment
of purchase accounting intangibles (note8), and EUR 12million were
recorded in other operating income and expenses (note6).
Note6 Other operating income and expenses
Other operating income and expenses break down as follows:
2009 2008
Impairment losses on non-current assets (12) (9)
Gains on asset disposals 11 17
Losses on asset disposals (17) (7)
US pension plan curtailment 92 -
Others 14 26
OTHER OPERATING INCOME AND EXPENSES 88 27
Gains on asset disposals mainly refl ect the gain on the disposal of
Selectron assets for EUR 8million.
Losses on asset disposals and asset write-offs are primarily related
to the loss on disposal of a Wibe business for EUR 6million and to
an R&D project being terminated for EUR 6million.
The gain of EUR 92million on the US pension plan curtailment is
commented on in note22.