APC 2014 Annual Report Download - page 177

BUSINESS REVIEW
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
Other operating income and expenses
For the year ended December31, 2014, other operating income (restated for the effect of discontinued operations and change in
and expenses amounted to a net income of EUR106million, consolidation method disclosed in note 1 of the consolidated
including costs linked to acquisitions for EUR114million, a financial statements), including mainly costs linked to acquisitions
EUR95million gain on the curtailment of employee benefit plans in for EUR52million, a EUR173million gain on the curtailment of
the UK, in France and in the US and miscellaneous other operating employee benefit plans in the US, in France and in Norway and
incomes and expenses amounting to a net expense of miscellaneous other operating incomes and expenses amounting
EUR69million. Costs linked to acquisitions are acquisition, to a net expense of EUR37million. Costs linked to acquisitions are
integration and separation costs on 2014 acquisitions, mainly acquisition, integration and separation costs on 2013 acquisitions,
Invensys. Net other operating expense includes mainly provisions notably Electroshield – TM Samara and acquisition costs linked to
for litigation or claims in 2014. Invensys. Net other operating expense includes mainly provisions
for litigation or claims and gain on disposal of fixed assets in 2013.
For the year ended December31, 2013, other operating income
and expenses amounted to a net income of EUR71million
Restructuring costs
For the year ended December31, 2014, restructuring costs amounted to EUR202million compared to EUR173million for the year ended
December31, 2013. These costs related to industrial and support functions restructurings.
EBITA and Adjusted EBITA
We define EBITA as earnings before interest, taxes and the year ended December31, 2013 to 13.9% for the year ended
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amortization of purchase accounting intangibles. EBITA comprises December31, 2014, mainly due to negative currency effect.
operating profit before amortization and impairment of purchase EBITA decreased by 3.0% from EUR3,254 million for the year
accounting intangible assets and before goodwill impairment. ended December31, 2013 (restated for the effect of discontinued
We define adjusted EBITA as EBITA before restructuring costs and operations and change in consolidation method disclosed in note 1
before other operating income and expenses, which includes of the consolidated financial statements) to EUR3,155million for
acquisition, integration and separation costs. the year ended December31, 2014, mainly linked to significant
integration costs for Invensys, a lower gain on curtailment of
Adjusted EBITA amounted to EUR3,463million for the year ended employee benefit plans and higher restructuring expenses in 2014
December31, 2014, compared to EUR3,356million for the year that did offset the positive impact of Invensys consolidation. As a
ended December31, 2013 (restated for the effect of discontinued percentage of revenue, EBITA decreased to 12.7% in 2014
operations and change in consolidation method disclosed in note 1 compared with 13.9% in 2013, in line with the lower Adjusted
of the consolidated financial statements), representing an increase EBITA margin and with integration and restructuring costs higher
of 3.2%, mainly due to Invensys acquisition and partially offset by than in 2013.
an unfavorable foreign exchange effect of EUR166million. As a
percentage of revenue, adjusted EBITA decreased from 14.3% for
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