APC 2010 Annual Report Download - page 209

CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In 2010, the consolidation of Areva Distribution assets contributed to
an increase in commitments given of EUR256million.
29.2 - Purchase commitments
Shares in subsidiaries and affiliates
Commitments to purchase equity investments correspond to put
options given to minority shareholders in consolidated companies
or relate to earn-out payments. The amount of these commitments
was not material at December31, 2010.
Information technology services
The Group is party to an agreement with Capgemini providing for
outsourcing (facilities management) of certain of its information
technology functions in Europe and deployment of a system of
shared SAP management applications. The fi rst pilot version of
the global system was implemented in India in April2007 and the
second version was deployed in mid-2008 in several European pilot
countries. At the end of 2010, Schneider Electric had capitalised
total costs (net of impairment) of EUR142million. The costs are
progressively amortised with effect from 2009, over a 7-year rolling
calendar and based on the number of users connected worldwide
as the system is deployed.
For 2010, the contractual facilities management costs amount to
EUR103million including the volume and indexing factors provided
for by the contract (EUR119million for 2009).
29.3 - Contingent liabilities
Senior Management believes that the provisions recognised in the
balance sheet, in respect of the known claims and litigation to which
the Group is a party, should be adequate to ensure that such claims
and litigation will not have any substantial impact on the Group’s
fi nancial position or results. This is notably the case for the potential
consequences of a current dispute in Belgium involving former senior
executives and managers of the Group.
The Group has entered into a company-wide agreement in respect
of individual training entitlement. It has applied the French accounting
treatment recommended by opinion 2004-F issued by the CNC’s
urgent issues committee. Expenditure on individual training is written
off as an expense during the period and therefore no provision is
made for it. As of December31, 2010, rights accrued but not used
by employees of French entities of the Group corresponded to
around 1,417,000 hours.
Note30 Subsequent events
Acquisition of APW in India
On January7, 2011 the Group announced the signature of an
agreement for the acquisition of the majority of the share capital
of APW President Systems Limited, a company specialising in
the design and manufacture of standard or custom-built electric
bays and cabinets for use in particular by telecom and information
technology end customers in India. APW President Systems Limited
employs around 380 people and achieved estimated revenue of
INR1.08billion (about EUR17million) for the twelve month period to
end September2010. The company has manufacturing facilities in
Bangalore and Pune, a large customer portfolio and a network of
sales offi ces in India.
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 207