Annual Report 2010 - SBM Offshore

Share premium
The share premium reserve is fully available for distribution
free of taxes for private investors, and amounts to
€ 543.3 million (31 December 2009: € 524.1 million).
Other reserves
The other reserves comprise the hedging reserve and
the foreign currency translation reserve. The movement
and breakdown of the other reserves can be stated as
follows:
in thousands of US$
Hedging reserve Translation
reserve
Total other
reserves
Balance at 1 January 2009 (251,335) (1,876) (253,211)
Cash flow hedges:
Recognised in equity 94,706 - 94,706
Transfer to financial income and expenses 11,093 - 11,093
Transfer to construction contracts and property, plant and equipment 29,420 - 29,420
Net investment hedge (1,306) - (1,306)
Currency translation differences:
Group companies - 13,646 13,646
Balance at 31 December 2009 (117,422) 11,770 (105,652)
Cash flow hedges:
Recognised in equity (7,231) - (7,231)
Transfer to financial income and expenses 38,349 - 38,349
Transfer to construction contracts and property, plant and equipment 31,842 - 31,842
Net investment hedge 1,346 - 1,346
Currency translation differences:
Group companies (6,737) (6,737)
Balance at 31 December 2010 (53,116) 5,033 (48,083)
Hedging reserve
The hedging reserve consists of the effective portion of
cash flow and net foreign investment hedging instruments
related to hedged transactions that have not yet
occurred.
Translation reserve
The foreign currency translation reserve is used to
record exchange differences arising from the translation
of the financial statements of foreign subsidiaries.
Financial Review / Financial Statements 2010
SBM Offshore – Annual Report 2010 157