APC 2015 Annual Report Download - page 184

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC182
BUSINESS REVIEW
4REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
2.5 Other operating income and expenses
For the year ended December31, 2015, other operating income
and expenses amounted to a net loss of EUR522million, mainly due
to net losses on sale of business (EUR223million), notably on Juno
divestment, and impairment of assets (EUR246 million), notably
on Transportation business related to the expected divestment
described above. Other main items included costs linked to
acquisitions for EUR118million (notably Invensys integration costs),
a EUR53million gain on the curtailment of employee benefi t plans
in the UK and in France .
For the year ended December31, 2014, other operating income and
expenses amounted to a net expensee of EUR106million, including
costs linked to acquisitions for EUR114 million, a EUR95 million
gain on the curtailment of employee benefi t plans in the UK, in
France and in the US and miscellaneous other operating incomes
and expenses amounting to a net expense of EUR69million. Costs
linked to acquisitions are acquisition, integration and separation
costs on 2014 and 2015 acquisitions, notably Invensys . Net other
operating expenses mainly includes mainly provisions for litigation
or claims in 2014.
2.6 Restructuring costs
For the year ended December 31, 2015, restructuring costs
amounted to EUR318million compared to EUR202million for the
year ended December 31, 2014. This increase in restructuring
costs is linked to the Simplify initiatives that were announced in early
2015 as part of the «Schneider is On» program.
2.7 EBITA and Adjusted EBITA
We defi ne EBITA as earnings before interest, taxes and amortization
of purchase accounting intangibles. EBITA comprises operating
profi t before amortization and impairment of purchase accounting
intangible assets and before goodwill impairment.
We defi ne adjusted EBITA as EBITA before restructuring costs
and before other operating income and expenses, which includes
acquisition, integration and separation costs.
Adjusted EBITA amounted to EUR3,641million for the year ended
December31, 2015, compared to EUR3,463million for the year
ended December31, 2014, representing an increase of 5.1%, mainly
due to a favourable foreign exchange effect of EUR254million. As a
percentage of revenue, adjusted EBITA decreased from 13.9% for
the year ended December31, 2014 to 13.7% for the year ended
December31, 2015.
EBITA decreased by 11.2% from EUR3,155 million for the year
ended December31, 2014 to EUR2,801million for the year ended
December31, 2015, mainly linked to net losses on sales of business,
impairment of assets and higher restructuring expenses in 2015
that did offset the increase in Adjusted EBITA. As a percentage of
revenue, EBITA decreased to 10.5% in 2015 compared with 12.7%
in 2014, in line with the lower Adjusted EBITA margin and with
losses on sales of business, impairments and restructuring costs
higher than in 2014.