APC 2014 Annual Report Download - page 257

COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Notes to the financial statements 3.
(All amounts in thousands of euros unless otherwise indicated)
Significant events of the financial year
During the financial year, Schneider Electric SE carried out On April25, 2014, Schneider Electric SE contributed its Invensys
EUR1,228million capital increases, as follows: shares to the company SAMOS then its company SAMOS shares
for EUR999million to Schneider Electric Industries SAS through
the employee share issuance carried out on July24, 2014 as
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capital increase.
part of the worldwide Employee Stock Purchase Plan, for
EUR206million; On May19, 2014, 2013 dividend was paid for EUR1,069million.
the capital increase related to Invensys acquisition for
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Two promissory notes were issued to BNP for EUR600million with
EUR999million, net of acquisition costs deducted by maturity date October21, 2014 and November21, 2014.
EUR12million; Since August2014, the company proceeded to its own shares
the exercise of performance shares, for EUR35million.
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buyback for 5,989,578 shares and EUR370million.
The company reimbursed two bonds for EUR707million as well as On December17, 2014, the company invoiced to Schneider
the USD300million loan from Boissière Finance. Electric Industries SAS a EUR442million consideration for the use
On January17, 2014, Schneider Electric SE acquired 26% of of Schneider Electric brand, in accordance with an agreement
Invensys plc through the issuance of 17,207,427new shares signed on December15, 2011.
Schneider Electric. The remaining 74% of Invensys were acquired The company issued commercial paper in 2014 and the
by the company SAMOS, subsidiary of Schneider Electric SE. corresponding EUR760million balance will mature within 2015.
On January31, 2014, market funds acquired in 2013 were
disposed for EUR1,452million.
Accounting principles
As in the prior financial year, the financial statements for the also takes account of the acquired business goodwill. For listed
financial year ended December31, 2014 have been prepared in securities, the average stock price over the previous month is
accordance with French generally accepted accounting principles. used. Unrealized gains resulting from such estimates are not
recognized.
Non-current assets
Own shares
Non-current assets of all types are stated at cost.
Treasury stock is stated at weighted average cost.
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Intangible assets
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
Intangible rights are amortized over a maximum of five years. than the carrying value of the related treasury shares or if the
average stock price for the month previous to the closing is lower
Property, plant and equipment
than the weighted average cost.
Pension obligations
Items of property, plant and equipment are depreciated on a
straight-line basis over their estimated useful lives, ranging from
three to ten years. The present value of termination benefits is determined using the
projected unit credit method.
Shares in subsidiaries and affiliates
Provisions are funded for the supplementary pension benefits
provided by the company on the basis of the contractual terms of
Shares in subsidiaries and affiliates are stated at acquisition cost. top-hat agreements.
Provisions for impairment may be funded where the carrying The company applies the corridor method to actuarial gains and
amount is higher than the estimated value in use at the end of the losses arising from changes in estimates. Under this method, the
financial year. This estimate is primarily determined on the basis of portion of net cumulative actuarial gains and losses exceeding
the underlying net assets, earnings outlook and economic 10% of the projected benefit obligation is amortized over 10years.
forecasts. For the more recently-acquired investments, the analysis
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2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC