APC 2013 Annual Report Download - page 238

5CONSOLIDATED FINANCIALSTATEMENTS ATDECEMBER 31, 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
26.3.2 Interest rate
overall borrowing costs. At December31, 2013, most of the
Group’s bond debt was at fixed rate. As a result, an increase in
The Group is exposed to risks associated with the effect of interest rates should not have any material impact on the Group’s
changing interest rates. Interest rate risk on borrowings is net financial expense.
managed at the Group level, based on consolidated debt and
taking into consideration market conditions in order to optimize
Dec. 31, 2013 Dec. 31, 2012
Fixed rate Variable rate Fixed rate Variable rate
Net position before hedging (6,578) (2,281) (6,906) (1,226)
Cash flow hedges (346) 346 (551) 551
Fair value hedges - - 575 (575)
Net position after hedging (6,924) (1,935) (6,882) (1,250)
26.3.3 Raw materials
purchasing departments of the operating units report their
purchasing forecasts to the Corporate Finance and Treasury
Group is exposed to fluctuations in energy and raw material Department. Purchase commitments are hedged using forward
prices, in particular steel, copper, aluminum, silver, lead, nickel, contracts, swaps and, to a lesser extent, options.
zinc and plastics. If we are not able to hedge, compensate for or
All commodities instruments are futures and options designated
pass on to customers any such increased costs, this could have
as cash flow hedge under IFRSstandards, of which:
an adverse impact on our financial results. The Group has,
however, implemented certain procedures to limit exposure to
rising non-ferrous and precious raw material prices. The
Dec. 31, 2013 Dec. 31, 2012
Carrying amount (2) (2)
Nominal amount (166) (236)
26.3.4 Share-based payment
Schneider Electric shares are hedged (cash flow hedges) in relation to the Stock Appreciation Rights granted to US employees, details are
as follow:
Dec. 31, 2013 Dec. 31, 2012
Outstanding shares 1,843,846 3,317,727
Carrying amount 46 70
Nominal amount (84) (141)
236 2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC