APC 2011 Annual Report Download - page 225

2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 223
COMPANY FINANCIAL STATEMENTS
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NOTES TO THE FINANCIAL STATEMENTS
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3. Notes to the financial statements
(All amounts in thousands of euros unless otherwise indicated)
During the fi nancial year, Schneider Electric SA carried out
EUR215million in share capital increases, as follows:
•the employee share issue carried out on July 12, 2011 as
part of the worldwide Employee Stock Purchase Plan, for
EUR177million;
•the exercise of stock options, for EUR38million.
The Company carried out several bond issues during the fi nancial
year for a nominal aggregate of EUR1.7 billion, for fi nancing of
acquisitions on September1, 2011 and redeemed EUR500million
worth of bonds issued in 2006 upon maturity on July18, 2011.
Furthermore, on July21, 2010 the Company carried out a partial
redemption of the EUR750million bond issue maturing on July16,
2013 for a nominal amount of EUR263million on the basis of a
purchase price of EUR299 million. This deal gave rise to the
recognition of EUR36million in fi nancial expenses.
Following the merge of Digital Holding and Schneider Electric Japan
Holding of December2010 signed on March2011 with effective
date on January 1, 2011, the company know owns shares of
Schneider Electric Japan Holding for EUR21million.
Moreover, the Company sold, on December29, 2011, its shares
in Société Industrielle de Réassurance that she owned since
September11, 2009 for EUR3million verus a net book value of
EUR1million.
On December 30, 2011, the company invoiced to
SchneiderElectricIndustriesSAS a fi nancial compensation for the
use of Schneider Electric trademark, according to an agreement
signed on December15, 2011 for EUR1.2billion.
Lastly, the Company issued commercial paper in 2011, and the
outstanding balance of EUR190million at December31, 2011 were
redeemed in January2012.
Accounting principles
As in the prior fi nancial year, the fi nancial statements for the fi nancial
year ended December31, 2011 have been prepared in accordance
with French generally accepted accounting principles.
Non-current assets
Non-current assets of all types are stated at cost.
Intangible assets
Intangible rights are amortised over a maximum of fi ve years.
Property, plant and equipment
Items of property, plant and equipment are depreciated on a
straight-line basis over their estimated useful lives, ranging from
three to tenyears.
Shares in subsidiaries and affiliates
Shares in subsidiaries and affi liates are stated at acquisition cost.
Provisions for impairment may be funded where the carrying amount
is higher than the estimated value in use at the end of the fi nancial
year. This estimate is primarily determined on the basis of the
underlying net assets, earnings outlook and economic forecasts.
For the more recently-acquired investments, the analysis also takes
account of the acquired business goodwill.
For listed securities, the average stock price over the previous
month is used. Unrealised gains resulting from such estimates are
not recognised.
Own shares
Treasury stock is stated at weighted average cost.
In the case of treasury stock held for allocation on the exercise
of stock options, a provision is recorded if the exercise price is
lower than the carrying value of the related treasury shares or if the
average stock price for the month previous to the closing is lower
than the weighted average cost.
Pension obligations
The present value of termination benefi ts is determined using the
projected unit credit method.
Provisions are funded for the supplementary pension benefi ts
provided by the Company on the basis of the contractual terms of
top-hat agreements.
The Company applies the corridor method to actuarial gains and
losses arising from changes in estimates. Under this method, the
portion of net cumulative actuarial gains and losses exceeding 10%
of the projected benefi t obligation is amortised over 10years.
Significant events of the financial year