APC 2010 Annual Report Download - page 234

COMPANY FINANCIAL STATEMENTS
6NOTES TO THE FINANCIAL STATEMENTS
further 2,151,390 shares were issued as part of the EUR17million
employee share issue while 2,709,882 stock options were exercised
for EUR22million.
Own shares
In 2010, Schneider Electric SA transferred to employees 33,074 own
shares, acquired at a cost of EUR2million. The total number of own
shares held at the reporting date stood at 4,582,476, representing
a total of EUR266million.
7.2 - Additional paid-in capital
Additional paid-in capital rose by EUR561million over the fi nancial
year, including EUR295million from the 2009 stock dividend,
EUR127million from the employee share issue and EUR139million
from the exercise of stock options.
7.3 - Retained earnings
Pursuant to the third resolution of the Annual and Extraordinary
Shareholders’ Meeting of April23, 2010, EUR12million of the
EUR476million in 2009 distributable earnings was allocated to the
legal reserve. EUR529million was paid out in dividends (including
EUR66million deducted from retained earnings), EUR199million of
which was in cash.
Note8 Provisions for contingencies and pension accruals
Dec. 31, 2009 Increases Decreases Dec. 31, 2010
Provisions for contingencies
Disputes 929 - (914) 15
Other 30 - - 30
959 - (914) 45
Provisions for pension accruals
Pension accruals 31,779 1,900 (1,975) 31,704
32,738 1,900 (2,889) 31,749
8.1 - Contingencies
Management is confi dent that overall the balance sheet provisions
for disputes of which it is currently aware and in which the Company
is involved should be suffi cient to ensure that these disputes do
not have a material impact on its fi nancial position or income. This
is particularly true of the provisions set aside to cover the potential
consequences of a current dispute in Belgium involving former senior
executives and managers of the Company.
In February2010, the Company reversed a EUR1million contingency
provision funded in 2002 with respect to a non-trading real-estate
company.
8.2 - Pension accruals
The Company has various obligations towards its current and retired
senior executives and managers. Following an actuarial valuation
carried out in 2010, the provision for these obligations was increased
to EUR32million.
The Company applied the corridor method to the actuarial gains
and losses arising from this valuation (see “accounting principles”).
At December31, 2010, cumulative actuarial gains and losses totaled
EUR5million. From 2010, a total of EUR1.3million, exceeding 10%
of the obligation, is being amortised over 10years.
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC232