ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

Leverage
Millions of euros
2011 2010
Net financial debt: 6,991 6,587
Non-current bank borrowings 6,737 4,996
Current bank borrowings 2,217 3,215
Current financial assets and cash and cash equivalents (1,963) (1,624)
Equity: 5,645 6,063
Of the Parent 5,344 5,731
Of non-controlling interests 301 332
Leverage 124% 109%
h) Restriction on the distribution of funds by subsidiaries
Certain Group companies have clauses in their financing contracts that have to be met in order to
be able to distribute profits to shareholders.
17.- Provisions
The changes in the long-term provisions on the liability side of the consolidated balance sheets at
31 December 2011 and 2010 were as follows (in thousands of euros):
31/12/11 31/12/10
Beginning balance 526,174 483,707
Additions and period provisions 119,567 63,139
Reductions (47,897) (22,578)
Transfers 13,549 (2,047)
Other changes (1,611) 3,953
Ending balance 609,782 526,174
The Acciona Group operates in various businesses and numerous countries with very specific
industry regulations. In the normal course of its business, the Group is exposed to litigation
related to these business activities, including most notably: tax claims, claims relating to defects in
construction projects performed and claims relating to discrepancies regarding services rendered.
Certain of these risks are covered by insurance policies (third-party liability, construction defects,
etc.) and for the other risks identified, the required provisions are recognised. The detail of the
nature and amount of the main provisions is as follows:
a) Provisions are recognised for the constructive obligations of subsidiaries accounted for using
the equity method when the Group’s investments in associates have been reduced to zero. At 31
December 2011, the provision in this connection amounted to EUR 131 million (31 December
2010: EUR 85 million). The detail of the assets, liabilities, revenue and profit or loss for 2011 of
the associates for which a provision is recognised, in proportion to the Group's ownership interest
therein, is as follows:
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