APC 2015 Annual Report Download - page 240

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC238
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2015
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note29 Commitments and contingent liabilities
29.1– Guarantees and similar undertakings
Dec.31, 2015 Dec.31, 2014
Market counter guarantees(1) 3,431 3,548
Pledges, mortgages and sureties(2) 166 188
Other commitments given(3) 301 368
GUARANTEES GIVEN 3,898 4,104
Endorsements and guarantees received 89 90
GUARANTEES RECEIVED 89 90
(1) On certain contracts, customers require a guarantee from a bank that the contract will be fully executed by the Group. For these
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.
(2) Certain loans are secured by property, plant and equipment and securities lodged as collateral.
(3) Other guarantees given comprise guarantees given in rental payments.
29.2– Purchase commitments
Shares in subsidiaries and affiliates
Commitments to purchase equity investments correspond to put
options given to minority shareholders in consolidated companies
or relate to earn-out payments. At December 31, 2015, there is
one material put related to the 26% interests in Luminous that
was valued for an amount of EUR125million as other non-current
liabilities.
29.3– Contingent liabilities
Senior Management believes that the provisions recognized in
the balance sheet, in respect to the known claims and litigation
to 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 fi nancial position or results. This is notably the case for the
potential consequences of a current dispute in Belgium involving
former senior executives and managers of the Group.
Note30 Subsequent events
At the date of fi nancial statements approval by the board of directors, there is no material subsequent event.