APC 2015 Annual Report Download - page 238

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC236
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2015
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
26.3.2 Interest rate
The Group is exposed to risks associated with the effect of changing
interest rates. Interest rate risk on borrowings is managed at the Group
level, based on consolidated debt and taking into consideration
market conditions in order to optimize overall borrowing costs. At
December31, 2015, most of the Group’s bond debt was at fi xed
rate. As a result, an increase in interest rates should not have any
material impact on the Group’s net fi nancial expense.
Dec.31, 2015 Dec.31, 2014
Fixed rate Variable rate Fixed rate Variable rate
Net position before hedging (6,915) (714) (5,912) (1,760)
Cash fl ow hedges - - (129) 129
Net position after hedging (6,915) (714) (6,041) (1,631)
26.3.3 Raw material hedges
The Group is exposed to fl uctuations in energy and raw material
prices, in particular steel, copper, aluminum, silver, lead, nickel,
zinc and plastics. If we are not able to hedge, compensate for
or pass on to customers any such increased costs, this could
have an adverse impact on our fi nancial results. The Group has,
however, implemented certain procedures to limit exposure to
rising non-ferrous and precious raw material prices. The purchasing
departments of the operating units report their purchasing forecasts
to the Corporate Finance and Treasury Department. Purchase
commitments are hedged using forward contracts, swaps and, to
a lesser extent, options.
All commodities instruments are futures and options designated as cash fl ow hedge under IFRSstandards, of which:
Dec.31, 2015 Dec.31, 2014
Carrying amount (13) (11)
Nominal amount (158) (271)
26.3.4 Share-based payment
Schneider Electric shares are hedged (cash fl ow hedges) in relation to the Stock Appreciation Rights granted to US employees. D etails are
as follow:
Dec.31, 2015 Dec.31, 2014
Outstanding shares 795,312 1,277,326
Carrying amount 14 28
Nominal amount (35) (57)
26.4– Financial assets and liabilities subject to netting
In accordance with IFRS7 standards, this section discloses fi nancial instruments that are subject to netting agreements.
Dec.31, 2015
(a) (b) (c)=(a)-(b) (d) (e)=(c)-(d)
Gross amounts
Gross amounts offset
in the statement of
fi nancial position
Net amounts
presented inthe
statement of
fi nancialposition
Related amount
not offset in the
statement of
fi nancial position Net amount, as per IFRS7
Financial assets 1,855 1,716 139 58 81
Financial liabilities (2,081) (1,716) (365) (58) (307)
Dec.31, 2014
(a) (b) (c)=(a)-(b) (d) (e)=(c)-(d)
Gross
amounts
Gross amounts offset
in the statement of
fi nancial position
Net amounts presented
inthe statement of
fi nancialposition
Related amount not
offset in the statement of
fi nancial position Net amount, as per IFRS7
Financial assets 1,615 1,517 98 25 73
Financial liabilities (1,869) (1,517) (352) (25) (327)