Annual Report 2010 - CMVM

Notes to the Consolidated Financial Statements as at 31 December 201031 - BUILDING CONTRACTSIn the year ended on 31 December 2010, the costs and income recognised for building contracts in progress are as follows:2010Net income:Issued invoices 768,839Change in:- Deferred income - works (Note 39) (27,825)- Accrued income - works 19,461760,475Net costs:Invoiced costs 731,158Change in:- Provisions for guarantees (Note 36) (1,446)- Provisions for future losses (Note 36) 5,639735,351Calculated earnings (Note 7) 25,124Furthermore, as at 31 December 2010, the deductions made by customers on building contracts amounted to EUR 170 thousand.32 - SHARE CAPITALAs at 31 December 2010, the underwritten and paid-up share capital was represented by 420,000,000 shares with the nominal value of 1 Euro each (287,880,799 shares at1 Euro each as at 31 December 2009).As mentioned in the Introductory Note, in the year ended on 31 December 2010, TD,SA increased its share capital by EUR 132,119,201, corresponding to 132,119,201 shares.The increase was carried out by the integration of 132,119,201 shares of TD-EC, under the Public Exchange Offer conducted.As at 31 December 2010, TDG - Sociedade Gestora de Participações Sociais, S.A. directly owned 154,640,240 shares representing the share capital of Teixeira Duarte, S.A.,corresponding to 36.82% of the respective share capital (53.42% as at 31 December 2009).33 - RESERVES AND RETAINED EARNINGSLegal reserve: In accordance with current legislation, the Company is obliged to transfer at least 5% of its annual net profit to the legal reserve, until it reaches a minimum of20% of the capital. This reserve is not distributable to shareholders, but may be used to absorb losses, after all other reserves have been exhausted, or to increase the capital.Fair value reserve: The fair value reserve represents the difference between the cost value and market value of the financial assets available for sale, not yet recognised in theincome statement.Free reserves: Free reserves are available for distribution.Reserve of hedging operations: As described in Note 2.16 g), the reserve of hedging operations reflects the effective component (net of the tax effect) of the changes in thefair value of the derivative financial instruments classified as cash flow hedges.191