APC 2011 Annual Report Download - page 174

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172 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
CONSOLIDATED FINANCIAL STATEMENTS
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note8
Amortisation and impairment of purchase accounting intangibles
Note9
Other financial income and expense
2011 2010
Exchange gains and losses, net (40) 25
Financial component of defi ned benefi t plan costs (45) (49)
Dividends received 99
Net gains/(losses) on disposal of long-term investments (1) 3
Other fi nancial expense, net (37) (53)
OTHER FINANCIAL INCOME AND EXPENSE (114) (65)
Dividends are mainly received on AXA shares.
2011 2010
Amortization of purchase accounting intangibles (208) (213)
Impairment of purchase accounting intangibles (3) -
Goodwill impairment (15) (15)
AMORTIZATION AND IMPAIRMENT OF PURCHASE ACCOUNTING INTANGIBLES (226) (228)
The migration of the Group’s brands towards the Schneider
Electric brand (One Brand project) has led to the amortisation
from January1, 2010 of the Xantrex, TAC and MGE brands over
a six-year period. The corresponding amortisation expense totaled
EUR57million over the year.
Impairment losses totaling EUR15 million are recognised on
goodwill relating to two small businesses in Europe sold on second
semester.
Impairment tests performed on all the Group’s CGUs have not
led to impairment losses being recognised. Analysis of the test’s
sentitivity shows that no impairment losses would be recognized in
the following scenarios:
•a 0.5point increase of the discount rate;
•a 1.0point decrease of the growth rate;
•a 0.5point decrease of margin rate.