2010Annual Report - Schneider Electric CZ, s.r.o.
2010Annual Report - Schneider Electric CZ, s.r.o.
2010Annual Report - Schneider Electric CZ, s.r.o.
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6 COMPANY FINANCIAL STATEMENTS<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
232<br />
further 2,151,390 shares were issued as part of the EUR17 million<br />
employee share issue while 2,709,882 stock options were exercised<br />
for EUR22 million.<br />
Own shares<br />
In 2010, <strong>Schneider</strong> <strong>Electric</strong> SA transferred to employees 33,074 own<br />
shares, acquired at a cost of EUR2 million. The total number of own<br />
shares held at the reporting date stood at 4,582,476, representing<br />
a total of EUR266 million.<br />
7.2 - Additional paid-in capital<br />
Additional paid-in capital rose by EUR561 million over the fi nancial<br />
year, including EUR295 million from the 2009 stock dividend,<br />
EUR127 million from the employee share issue and EUR139 million<br />
from the exercise of stock options.<br />
7.3 - Retained earnings<br />
Note 8 Provisions for contingencies and pension accruals<br />
Pursuant to the third resolution of the Annual and Extraordinary<br />
Shareholders’ Meeting of April 23, 2010, EUR12 million of the<br />
EUR476 million in 2009 distributable earnings was allocated to the<br />
legal reserve. EUR529 million was paid out in dividends (including<br />
EUR66 million deducted from retained earnings), EUR199 million of<br />
which was in cash.<br />
Dec. 31, 2009 Increases Decreases Dec. 31, 2010<br />
Provisions for contingencies<br />
Disputes 929 - (914) 15<br />
Other 30 - - 30<br />
Provisions for pension accruals<br />
959 - (914) 45<br />
Pension accruals 31,779 1,900 (1,975) 31,704<br />
8.1 - Contingencies<br />
Management is confi dent that overall the balance sheet provisions<br />
for disputes of which it is currently aware and in which the Company<br />
is involved should be suffi cient to ensure that these disputes do<br />
not have a material impact on its fi nancial position or income. This<br />
is particularly true of the provisions set aside to cover the potential<br />
consequences of a current dispute in Belgium involving former senior<br />
executives and managers of the Company.<br />
In February 2010, the Company reversed a EUR1 million contingency<br />
provision funded in 2002 with respect to a non-trading real-estate<br />
company.<br />
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC<br />
32,738 1,900 (2,889) 31,749<br />
8.2 - Pension accruals<br />
The Company has various obligations towards its current and retired<br />
senior executives and managers. Following an actuarial valuation<br />
carried out in 2010, the provision for these obligations was increased<br />
to EUR32 million.<br />
The Company applied the corridor method to the actuarial gains<br />
and losses arising from this valuation (see “accounting principles”).<br />
At December 31, 2010, cumulative actuarial gains and losses totaled<br />
EUR5 million. From 2010, a total of EUR1.3 million, exceeding 10%<br />
of the obligation, is being amortised over 10 years.