Connect - Schneider Electric
Connect - Schneider Electric
Connect - Schneider Electric
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5 CONSOLIDATED FINANCIAL STATEMENTS<br />
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
Note 11 Goodwill<br />
11.1 – Main items of goodwill<br />
Group goodwill is broken down by business as follows:<br />
174 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC<br />
Dec. 31, 2011 Net Dec. 31, 2010 Net<br />
Power 3,906 3,789<br />
Industry 2,176 1,732<br />
Buildings 1,642 1,345<br />
ITB 3,061 2,620<br />
Infrastructure 1,987 727<br />
TOTAL 12,773 10,213<br />
The 2010 goodwill is presented in order to take into account the business reorganisation that occurred in 2011.<br />
Square D goodwill was allocated to each business in proportion to operating income:<br />
Power Industry<br />
Square D Company 82% 18%<br />
11.2 – Movements during the year<br />
The main movements during the year are summarised as follows :<br />
2011 2010<br />
Net goodwill at opening 10,213 8,611<br />
Acquisitions* 2,356 938<br />
Disposals (21) (1)<br />
Impairment - (15)<br />
Translation adjustment 142 675<br />
Reclassifi cations 83 5<br />
Net goodwill at year end 12,773 10,213<br />
Cumulative impairment (178) (172)<br />
* On the basis of the exchange rate at acquisition date.<br />
Acquisitions<br />
There is a 12 month period after the date of acquisition for the<br />
Group to fi nalise the allocation of goodwill to these entities.<br />
The corresponding goodwill is therefore provisional.<br />
Goodwill generated by acquisitions made during the year<br />
totaled EUR2,356 million and correspond principally to Telvent<br />
(EUR1,001 million), the Chinese group L eader & Harvest<br />
(EUR347 million) and the Indian group Luminous (EUR260 million).<br />
Goodwill generated by 2010 acquisitions totaled EUR938 million,<br />
consisting mainly of Areva Distribution for EUR727 million,<br />
SCADAgroup in Australia for EUR110 million and Cimac in the<br />
United Arab Emirates for EUR33 million.<br />
Impairment<br />
Impairment tests performed on all the Group’s CGUs have not led<br />
to impairment losses being recognised.<br />
Other changes<br />
Translation adjustments concern principally goodwill on US dollars.