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TomTom Annual Report and Accounts 2011
76
Notes to the Company Financial Statements | continued
6. OTHER RESERVES
(€ in thousands) Legal reserve
participations
Cumulative
translation
adjustment
Total legal
reserves
Stock
compensation
reserve Total
BALANCE AS AT 31 DECEMBER 2009 28,399 5,920 34,319 66,267 100,586
Currency translation differences 0 1,071 1,071 0 1,071
Transfer from retained earnings 7,956 0 7,956 0 7,956
Stock compensation expense 0 0 0 12,285 12,285
Issue of share capital 0 0 0 – 245 – 245
Release to retained earnings 0 0 0 – 6,645 – 6,645
Cash fl ow hedges 2,411 0 2,411 0 2,411
BALANCE AS AT 31 DECEMBER 2010 38,766 6,991 45,757 71,662 117,419
Currency translation differences 0 – 25 – 25 0 – 25
Transfer from retained earnings 21,846 0 21,846 0 21,846
Stock compensation expense 0 0 0 7,996 7,996
Issue of share capital 0 0 0 – 225 – 225
Release to retained earnings 0 0 0 – 18,343 – 18,343
Cash fl ow hedges 2,545 0 2,545 0 2,545
BALANCE AS AT 31 DECEMBER 2011 63,157 6,966 70,123 61,090 131,213
Legal reserves
Legal reserves are the non-distributable reserves that are recorded for an amount equal to the restricted reserves of the company’s
subsidiaries and the cumulative translation adjustment reserve. The restricted reserves of the subsidiaries include the hedging reserve that
has been recorded for the effective portion of changes in the fair value of derivatives held by the subsidiaries that are designated and
qualify as cash fl ow hedge. The hedge instrument matured in December 2011.
Stock compensation reserve
The stock compensation reserve represents the cumulative expense of issued share options that have been granted but not exercised,
together with the amount of tax benefi t relating to the tax deduction that exceeds the related cumulative expense.
7. BORROWINGS
Please refer to note 24 in the consolidated fi nancial statements.
Included in our borrowings are amounts due to group companies of €17 million (2010: €17 million) with similar conditions as the external
borrowings.
8. INTERCOMPANY PAYABLE
Intercompany payable comprises of loans provided by subsidiaries. The interest rate on the loan during 2011 is based upon LIBOR plus
a margin of 0.7%. Although no repayment period has been agreed the loan has a long-term nature.