APC 2011 Annual Report Download - page 198

196 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
CONSOLIDATED FINANCIAL STATEMENTS
5NOTES TO THE CONSOLIDATED FINANCIAL
Note23 Provisions
Economic
risks Customer risks Products risks Environmental risks Restructuring Other risks Provisions
Dec 31, 2009 418 80 264 44 210 132 1,148
Long-term portion 131 31 79 27 28 80 375
Additions 117 18 150 3 39 75 402
Discounting effect - - 1 - - (4) (3)
Utilizations (36) (9) (95) (2) (124) (34) (300)
Reversals of surplus
provisions (75) (9) (17) - (19) (8) (128)
Translation adjustments 16 4 16 2 5 3 46
Changes in the scope
ofconsolidation and other 174 2 90 8 13 12 299
Dec 31, 2010 614 86 409 55 124 176 1,464
Long-term portion 275 35 104 26 21 127 588
Additions 159 5 143 8 87 69 471
Discounting effect 1 - - - - - 1
Utilizations (82) (8) (109) (5) (77) (60) (341)
Reversals of surplus
provisions (53) (6) (29) (1) (9) (38) (136)
Translation adjustments 8 1 3 - - 2 14
Changes in the scope
ofconsolidation and other 92 9 3 - 12 51 167
Dec 31, 2011 739 87 420 57 137 200 1,640
Long-term portion 388 34 81 28 18 131 680
(a) Economic risks
These provisions cover, in particular, tax risks arising from audits
performed by local tax authorities and fi nancial risks arising primarily
on guarantees given to third parties in relation to certain assets
andliabilities.
Variations in scope of consolidation and others amount to
EUR92million and are principally related to Leader &Harvest, Steck
and Luminous acquisitions .
(b) Customer risks
These provisions are primarily established to covers risks arising
from products sold to third parties. This risk mainly consists of
claims based on alleged product defects and product liability.
Provisions for customer risks also integrate the provisions for
losses at completion for a number of long term contracts, for
EUR18million.
(c) Product risks
These provisions comprise:
•statistical provisions for warranties: the Group funds provisions
on a statistical basis for the residual cost of Schneider Electric
product warranties not covered by insurance;
•provisions for disputes over defective products;
•provisions to cover disputes related to recalls of clearly
identifi edproducts.
(d) Environmental risks
These provisions are primarily funded to cover cleanup costs.