APC 2012 Annual Report Download - page 184

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC182
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31, 2012
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The costs of acquisitions are the costs of acquisition, integration
and separation related to major acquisitions in2011 and 2012.
The line “Pension plan curtailments” includes mainly a provision
release for medical care in the US of EUR21million.
The line “Others” includes mainly a reversal of provision for litigation
or claims expired on December 2012. In2011, the line “Others”
includes mainly a reversal of provision for litigation or claims expired.
Additionally, in2012, provisions in an amount of EUR27million were
recorded in other operating income and expenses.
Note7 Restructuring costs
Restructuring costs totaled EUR164million over the period. They mainly relate to industrial and support function reorganizations in Europe
(approximately EUR97million) and in North America (approximately EUR24million).
Note8 Amortization and impairment of purchase accounting intangibles
Full year 2012 Full year 2011
Amortization of purchase accounting intangibles (224) (208)
Impairment of purchase accounting intangibles (1) (3)
Goodwill impairment (250) (15)
AMORTIZATION AND IMPAIRMENT OF PURCHASE ACCOUNTING INTANGIBLES (475) (226)
The migration of the Group’s brands towards the Schneider
Electric brand (One Brand project) has led to the amortization
from January1, 2010 of the Xantrex, TAC and MGE brands over
a six-year period. The corresponding amortization expense totaled
EUR61million over the year.
The Buildings business segment faced challenging trading
environment in the past few years following the construction
downturn in its key mature markets, affecting its fi nancial
performance. When conducting the annual impairment tests at
year-end, the Group had to book a goodwill impairment of Buildings
CGU by EUR250million before tax effect. The sensitivity analysis on
the test hypothesis would lead to book an additional impairment on
Buildings CGU assets of:
•7% of assets for a 0.5point increase of the discount rate;
•4% of assets for a 1.0point decrease of the growth rate;
•4% of assets for a 0.5point decrease of margin rate.
Impairment tests performed on the other Group’s CGUs have not
led to impairment losses being recognized. The sensitivity analysis
on the test hypothesis 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.
Impairment losses totaling EUR15 million were recognized on
goodwill relating to two small businesses in Europe sold in2011.