Page 285 - 2012 Annual Report

285
VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
III - CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 22 Borrowings and other financial liabilities
21.4. UMG LONG-TERM INCENTIVE PLAN
Effective January 1, 2010, UMG implemented long-term incentive
arrangements under which certain key executives of UMG are awarded
phantom equity units and phantom stock appreciation rights whose value
is intended to reflect the value of UMG. These units are simply units of
account and do not represent an actual ownership interest in either UMG
or Vivendi. The equity units are notional grants of equity that will be
payable in cash upon settlement no later than 2015 or earlier under certain
circumstances. The stock appreciation rights are essentially options on
those notional shares that provide additional compensation tied to any
increase in value of UMG over the term. The SAR’s are also settled in cash
only no later than 2015 or earlier under certain circumstances. There is a
guaranteed minimum payout of $25 million.
Payouts under the plan generally coincide with terms of employment, but
can be accelerated or reduced under certain circumstances. The values for
both payouts are based upon third party valuations. While the participants’
rights vest at the end of a fixed vesting period, compensation expense
is recognized over the vesting period as services are rendered. At each
closing date, the expense is recognized based on the portion of the vesting
period that has elapsed and the fair value of the units calculated using an
appropriate grant date model in accordance with IFRS 2.
As of December 31, 2012, the amount accrued under these arrangements
was €22 million (€14 million as of December 31, 2011). There have been
no payments made to date.
Note 22. Borrowings and other financial liabilities
(in millions of euros) Note
December 31, 2012 December 31, 2011
Total
Long-
term
Short-
term Total
Long-
term
Short-
term
Bonds 22.1 10,888 10,188 700 9,276 7,676 1,600
Bank credit facilities (drawn confirmed) 22.2 2,423 2,326 97 4,917 4,558 359
Commercial paper issued 22.2 3,255 - 3,255 529 - 529
Bank overdrafts 192 - 192 163 - 163
Accrued interest to be paid 205 - 205 200 - 200
Other 751 120 631 621 173 448
Nominal value of borrowings 17,714 12,634 5,080 15,706 12,407 3,299
Cumulative effect of amortized cost and reevaluation due to hedge accounting (1) 4 (5) (12) (8) (4)
Commitments to purchase non-controlling interests 8 8 - 11 10 1
Derivative financial instruments 23 36 21 15 5 - 5
Borrowings and other financial liabilities 17,757 12,667 5,090 15,710 12,409 3,301