APC 2012 Annual Report Download - page 237

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 235
COMPANY FINANCIAL STATEMENTS
6
NOTES TO THE FINANCIAL STATEMENTS
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3. Notes to the financial statements
(All amounts in thousands of euros unless otherwise indicated)
Significant events of the financial year
During the fi nancial year, Schneider Electric SA carried out
EUR221million in share capital increases, as follows:
•the employee share issue carried out on July 19, 2012 as
part of the worldwide Employee Stock Purchase Plan, for
EUR123million;
•the exercise of stock options, for EUR98million.
The Company carried out a bond issue during the fi nancial year
for a nominal of USD800million, corresponding to EUR606million.
On February 29, 2012, the Company did pay to the French
tax authorities (“Direction Générale Entreprise des Impôts”)
EUR108 million as a payment for tax audit of Schneider Electric
Industrie SAS for years 2005 to2008.
On July 31, 2012, the Company received EUR6 million
corresponding to the litigation GIS Siemens high voltage.
On September7, 2012, the Company sold its investment in AXA
held since November26, 2009 for EUR122million for a book value
of EUR111million.
The Company create a carry-back receivable for EUR93 million
in2012 by carrying back the 2009 tax loss on the 2008 tax profi t.
This receivable was sold as non-recourse on December19, 2012
to a bank with a deduction of fees and interests of EUR3million.
On December 31, 2012, the Company booked provisions for
impairment on its investments in Cofi bel by EUR63 million, in
Cofi mines by EUR8 million and in Schneider Electric Japon by
EUR18million.
A provision was booked for the tax audit on 2009 tax group fi ling
that was paid in January2013.
Accounting principles
As in the prior fi nancial year, the fi nancial statements for the fi nancial
year ended December31, 2012 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.