APC 2010 Annual Report Download - page 192
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CONSOLIDATED FINANCIAL STATEMENTS
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Leveraged plans
2010 2009
% Value % Value
Plan characteristics
Maturity (years) 5 5
Reference price (euros) 79.34 53.59
Subscription price (euros):
between 67.44 45.55
and 65.86 44.48
Discount(5):
between 15.0% 15.0%
and 17.0% 17.0%
Amount subscribed by employees 9.9 8.5
Total amount subscribed 105.4 85.7
Total number of shares subscribed (millions of shares) 1.6 1.9
Valuation assumptions
Interest rate available to market participant
(bullet loan)
(1) 4.1% 5.0%
Five year risk-free interest rate (euro zone) 2.1% 3.0%
Annual dividend rate 3.0% 3.0%
Annual interest rate
(repo)
1.0% 1.0%
Retail/institutional volatility spread 5.0% 5.0%
(a) Value of discount:
between 15.0% 11.7 15.0% 9.4
and 17.0% 8.0 17.0% 5.9
(b) Value of the lock-up period for market
participant 15.0% 18.8 14.9% 14.4
(c) Value of the opportunity gain(2) 1.9% 2.4 1.7% 1.7
Total expense for the Group (a-b+c) 1.89% to 3.89% 3.3 1.85% to 3.85% 2.5
Sensitivity
• decrease in interest rate for market participant(3) (0.5%) 3.3 (0.5%) 2.5
• increase in retail/institutional volatility spread(4) 0.5% 0.2 0.5% 0.2
Amounts in millions of euros, unless otherwise stated.
(1) Average interest rate charged on an ordinary, non-revolving personal loan, with a fi ve-year maturity to an individual with an average
credit rating.
(2) Calculated using a binomial model.
(3) A decline in the interest rate for market participants reduces the lock-up cost and increases the expense booked by the issuer.
(4) An increase in the retail/institutional volatility spread increases the opportunity gain for the employee and increases the expense booked
by the issuer.
(5) In some countries, due to local law, employees subscribe for undiscounted sums while the bank subscribes at a discount to provide the
leverage.
21.6 - Schneider Electric SA shares
At December31, 2010, the Group held 4,583,005 Schneider Electric shares in treasury stock, which have been recorded as a deduction
from retained earnings.
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC190