Connect - Schneider Electric
Connect - Schneider Electric
Connect - Schneider Electric
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3. Notes to the financial statements<br />
COMPANY FINANCIAL STATEMENTS<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
(All amounts in thousands of euros unless otherwise indicated)<br />
Significant events of the financial year<br />
During the fi nancial year, <strong>Schneider</strong> <strong>Electric</strong> SA carried out<br />
EUR215 million in share capital increases, as follows:<br />
• the employee share issue carried out on July 12, 2011 as<br />
part of the worldwide Employee Stock Purchase Plan, for<br />
EUR177 million;<br />
• the exercise of stock options, for EUR38 million.<br />
The Company carried out several bond issues during the fi nancial<br />
year for a nominal aggregate of EUR1.7 billion, for fi nancing of<br />
acquisitions on September1, 2011 and redeemed EUR500 million<br />
worth of bonds issued in 2006 upon maturity on July 18, 2011.<br />
Furthermore, on July 21, 2010 the Company carried out a partial<br />
redemption of the EUR750 million bond issue maturing on July 16,<br />
2013 for a nominal amount of EUR263 million on the basis of a<br />
purchase price of EUR299 million. This deal gave rise to the<br />
recognition of EUR36 million in fi nancial expenses.<br />
Accounting principles<br />
As in the prior fi nancial year, the fi nancial statements for the fi nancial<br />
year ended December 31, 2011 have been prepared in accordance<br />
with French generally accepted accounting principles.<br />
Non-current assets<br />
Non-current assets of all types are stated at cost.<br />
Intangible assets<br />
Intangible rights are amortised over a maximum of fi ve years.<br />
Property, plant and equipment<br />
Items of property, plant and equipment are depreciated on a<br />
straight-line basis over their estimated useful lives, ranging from<br />
three to ten years.<br />
Shares in subsidiaries and affiliates<br />
Shares in subsidiaries and affi liates are stated at acquisition cost.<br />
Provisions for impairment may be funded where the carrying amount<br />
is higher than the estimated value in use at the end of the fi nancial<br />
year. This estimate is primarily determined on the basis of the<br />
underlying net assets, earnings outlook and economic forecasts.<br />
Following the merge of Digital Holding and <strong>Schneider</strong> <strong>Electric</strong> Japan<br />
Holding of December 2010 signed on March 2011 with effective<br />
date on January 1, 2011, the company know owns shares of<br />
<strong>Schneider</strong> <strong>Electric</strong> Japan Holding for EUR21 million.<br />
Moreover, the Company sold, on December 29, 2011, its shares<br />
in Société Industrielle de Réassurance that she owned since<br />
September 11, 2009 for EUR3 million verus a net book value of<br />
EUR1 million.<br />
On December 30, 2011, the company invoiced to<br />
<strong>Schneider</strong> <strong>Electric</strong> Industries SAS a fi nancial compensation for the<br />
use of <strong>Schneider</strong> <strong>Electric</strong> trademark, according to an agreement<br />
signed on December 15, 2011 for EUR1.2 billion.<br />
Lastly, the Company issued commercial paper in 2011, and the<br />
outstanding balance of EUR190 million at December 31, 2011 were<br />
redeemed in January 2012.<br />
For the more recently-acquired investments, the analysis also takes<br />
account of the acquired business goodwill.<br />
For listed securities, the average stock price over the previous<br />
month is used. Unrealised gains resulting from such estimates are<br />
not recognised.<br />
Own shares<br />
Treasury stock is stated at weighted average cost.<br />
In the case of treasury stock held for allocation on the exercise<br />
of stock options, a provision is recorded if the exercise price is<br />
lower than the carrying value of the related treasury shares or if the<br />
average stock price for the month previous to the closing is lower<br />
than the weighted average cost.<br />
Pension obligations<br />
The present value of termination benefi ts is determined using the<br />
projected unit credit method.<br />
Provisions are funded for the supplementary pension benefi ts<br />
provided by the Company on the basis of the contractual terms of<br />
top-hat agreements.<br />
The Company applies the corridor method to actuarial gains and<br />
losses arising from changes in estimates. Under this method, the<br />
portion of net cumulative actuarial gains and losses exceeding 10%<br />
of the projected benefi t obligation is amortised over 10 years.<br />
2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 223<br />
6