APC 2014 Annual Report Download - page 239

CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Commitments and contingent liabilities Note29
29.1 – Guarantees and similar undertakings
Dec.31, 2014 Dec.31, 2013
Market counter guarantees(1) 3,548 1,214
Pledges, mortgages and sureties(2) 188 47
Endorsements and guarantees
Other commitments given(3) 368 164
GUARANTEES GIVEN 4,104 1,425
Endorsements and guarantees received 90 83
GUARANTEES RECEIVED 90 83
On certain contracts, customers require a guarantee from a bank that the contract will be fully executed by the Group. For these (1)
contracts the Group gives a counter guarantee to the bank. If a claim occurs, the risk linked to the commitment is assessed and a
provision for contingencies is recorded when the risk is considered probable and can be reasonably estimated.
Certain loans are secured by property, plant and equipment and securities lodged as collateral.(2)
Other guarantees given comprise guarantees given in rental payments.(3)
29.2 – Purchase commitments
which the Group is a party, should be adequate to ensure that
such claims and litigation will not have any substantial impact on
the Group’s financial position or results. This is notably the case
for the potential consequences of a current dispute in Belgium
Shares in subsidiaries and affiliates
involving former senior executives and managers of the Group.
Commitments to purchase equity investments correspond to put The Group has entered into a company-wide agreement in
options given to minority shareholders in consolidated companies respect to individual training entitlement. It has applied the French
or relate to earn-out payments. At December31, 2014, there is accounting treatment recommended by opinion 2004-F issued by
one material put related to the 26% interests in Luminous that the CNC’s urgent issues committee. Expenditure on individual
was valued for an amount of EUR130million as other non-current training is written off as an expense during the period and
liabilities. therefore no provision is made for it. As of December31, 2014,
rights accrued but not used by employees of French entities of the
29.3 – Contingent liabilities
Group corresponded to around 1,651,781hours.
5
Senior Management believes that the provisions recognized in the
balance sheet, in respect to the known claims and litigation to
Subsequent events Note30
At the date of financial statements approval by the board of directors, there is no material subsequent event.
237
2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC