APC 2012 Annual Report Download - page 243

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 241
COMPANY FINANCIAL STATEMENTS
6
NOTES TO THE FINANCIAL STATEMENTS
Note8 Provisions for contingencies and pension accruals
Dec.31, 2011 Increases Decreases Dec.31, 2012
Provisions for contingencies
Disputes 15 - - 15
Other 30 - - 30
45 - - 45
Provisions for pension accruals -
Pension accruals 31,721 2,133 (33,854) -
31,766 2,133 (33,854) 45
8.1 – Contingencies
Management is confi dent that overall the balance sheet provisions
for disputes of which it is currently aware and in which the Company
is involved should be suffi cient to ensure that these disputes do
not have a material impact on its fi nancial position or income. This
is particularly true of the provisions set aside to cover the potential
consequences of a pending dispute in Belgium involving former
senior executives and managers of the Company.
8.2 – Pension accruals
The Company has various obligations towards its current and
retired senior executives and managers. During2012, the Company
closed the previous plan to new comers and implemented a new
plan with progressing vesting rights based on seniority in the Group
and in Executive Committee. The fi nancing of this new plan was
externalized to AXA France Vie.
The Company applied the corridor method to the actuarial gains
and losses arising from this valuation (see “accounting principles”).
At December 31, 2012, cumulative actuarial gains and losses
totalled EUR13 million. From 2013, a total of EUR8.5 million,
exceeding 10% of the obligation, is being amortised over 10years.