Registration Document BOUYGUES

NOTE 1 • SIGNIFICANT
EVENTS OF THE YEAR
1.1 Holdings in subsidiaries
and affiliates
1.1.1 Financière des Bois Verts
Bouygues subscribed €25.5 million to a capital
increase on 18 November 2011, thereby acquiring
2,053,455 shares; the percentage interest was
unchanged at 100%.
1.1.2 Financière de l’Orée du Bois
Bouygues subscribed €2.5 million to a capital
increase on 14 December 2011, thereby acquiring
166,667 shares.
On the same day, a reduction in the share capital
was effected by cancellation of shares, which
resulted in 74,002 shares held by Bouygues being
cancelled; the percentage interest was unchanged
at 99.99%.
1.1.3 Serendipity Investment
On 14 February 2011, this investee made a partial
repayment of loans and advances amounting to
€3.5 million.
On 7 October 2011, Bouygues acquired 1,113,650
shares from Artémis, thereby increasing its interest
in Serendipity Investment from 50% to 100%.
Bouygues also assumed the Artémis current
account for €2.6 million.
1.2 Treasury shares
During the first half of 2011, Bouygues acquired
5,153,093 of its own shares for €169 million; these
shares were recognised in "Other long-term investment
securities".
At the Board meeting of 30 August 2011, these
shares were cancelled, together with those
acquired in 2010 for €154.7 million (total number
of shares cancelled: 9,973,287, initially acquired
for a total of €324 million).
Following a share repurchase tender offer launched
at the start of October 2011, Bouygues repurchased
41,666,666 of its own shares, representing
11.69% of the capital (based on the published
share capital at 31 October 2011), for a total
of €1,250 million. On 15 November 2011, the
Bouygues Board of Directors decided to cancel
these shares.
Following these transactions, the share capital
amounts to €314.9 million, consisting of
314,869,079 shares with a €1 par value (see
Note 8).
At 31 December 2011, Bouygues held 108,000 of
its own shares via a liquidity account opened on
3 February 2011.
1.3 2003 bond issue
This €750-million bond issue was redeemed in full
in February 2011.
1.4 Subsequent events
In anticipation of the forthcoming redemption of
bond issues on maturity, Bouygues carried out a
new bond issue on the following terms:
> Amount: €800 million
> Interest rate: 4.50%
> Issue date: 9 February 2012
> Maturity: 9 February 2022
NOTE 2 • ACCOUNTING
POLICIES
The financial statements have been prepared in
accordance with the current provisions of French
law.
2.1 Intangible assets
Expenditure on intangible assets is recognised in
accordance with the historical cost convention.
As a general principle, software acquired from third
parties is recognised as an intangible asset and
amortised on a straight-line basis over a maximum
of five years.
2.2 Property, plant and
equipment
Property, plant and equipment is recognised
at acquisition cost net of reclaimable taxes.
Transaction costs that do not form part of the
market value of the acquired asset are expensed
as incurred.
Depreciation is calculated on a straight-line basis,
according to the nature and estimated useful life of
each asset component.
2.3 Long-term investments
2.3.1 Holdings in subsidiaries and
affiliates and other long-term
investment securities
Holdings in subsidiaries and affiliates and other
long-term investment securities are recognised
at cost, including directly attributable acquisition
costs.
Holdings in subsidiaries and affiliates and other
long-term investment securities are also measured
at value in use, determined using objective
criteria (stock market price for quoted companies,
shareholders’ equity, profitability), forecast data
(economic outlook, earnings prospects), or any
other information indicative of the actual value of
the asset.
If value in use is less than cost, a provision for
impairment is recorded to cover the difference.
2.3.2 Long-term receivables
Long-term receivables are shown in the balance
sheet at face value. If the realisable value (taking
into account the probability of recovery) is less than
the carrying amount, a provision for impairment is
recorded to cover the difference.
2.4 Receivables and
payables expressed in
foreign currencies
Receivables and payables expressed in foreign
currencies are translated at the exchange rate prevailing
on the balance sheet date, or at the hedged
rate if the item is covered by a currency hedge.
Unrealised foreign exchange gains and losses are
taken to suspense accounts in the balance sheet;
unrealised losses are covered by a provision.
2.5 Short-term investments
The short-term investment portfolio is measured
in accordance with French accounting standards.
The realisable value of unlisted securities (equities,
negotiable debt instruments, and money-market
mutual funds) was determined by reference to
the latest estimate as at 31 December 2011.
BOUYGUES • 2011 Registration Document • FINANCIAL STATEMENTS • Parent company financial statements • 272