Annual Report - EDP

notes to the EDP consolidated - Energias de Portugal, and company S.A. financial statementsNotes to for the the Consolidated years and ended Company 31 december Financial Statements 2012 and 2011for the years ended 31 December 2012 and 2011Operations performed from 1 January 2012 to 31 December 2012:EDP, S.A. Energia REVolume acquired (number of shares) 1,483,938 -Purchase price average (in Euros) 2.006 -Purchase total value (thousands of Euros) 2,977 -Volume sold (number of shares) -1,938,561 -Selling price average (in Euros) 2.153 -Sold total value (thousands of Euros) 4,173 -Final position (number of shares) 30,391,523 1,513,000Highest market price (in Euros) 2.480 -Lowest market price (in Euros) 1.640 -Average market price (in Euros) 2.048 -The volume and the selling prices disclosed above include the effect of the treasury stock atributable to employees, as mencioned in note 45.The treasury stock held by EDP, S.A., is within the limits established by the Company's articles of association and by the "Código das Sociedades Comerciais"(Companies Commercial Code). The treasury stock is stated at acquisition cost.32. RESERVES AND RETAINED EARNINGSThis caption is analysed as follows:GroupCompanyThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011Legal reserve 578,435 539,145 578,435 539,145Fair value reserve (cash flow hedge) -121,097 -40,625 -16,069 4,870Tax effect of fair value reserve (cash flow hedge) 34,979 13,537 4,938 -2,402Fair value reserve (available for sale investments) 45,350 43,012 8,238 9,166Tax effect of fair value reserve (available for sale investments) -1,408 -1,652 1,957 1,051Exchange differences arising on consolidation 24,268 121,469 - -Treasury stock reserve (EDP, S.A.) 97,611 105,335 97,611 105,335Other reserves and retained earnings 2,464,978 2,155,619 1,315,569 1,238,6903,123,116 2,935,840 1,990,679 1,895,855Legal reserveIn accordance with Article 295 of "Código das Sociedades Comerciais" (Companies Commercial Code) and EDP, S.A.'s articles of association, the legal reserve must beincreased by a minimum of 5% of the annual profit until it reaches 20% of the company’s share capital. This reserve can only be used to cover losses or to increaseshare capital.Fair value reserve (cash flow hedge)This reserve includes the effective portion of the cumulative net change in the fair value of the cash flow hedging financial derivative instruments.Fair value reserve (available-for-sale investments)This reserve includes the accumulated net change in the fair value of available-for-sale investments as at the balance sheet date, net of impairment losses. Thechanges in this consolidated caption for the period are as follows:GroupThousands of Euros Increases DecreasesBalance as at 31 December 2010 495,872 -313,343Changes in fair value 7,660 -190,098Transfer of impairment to profit or loss - 60,664Transfer to the income statement relating to assets sold -17,743 -Balance as at 31 December 2011 485,789 -442,777Changes in fair value 8,674 -13,939Transfer of impairment to profit or loss - 7,603Balance as at 31 December 2012 494,463 -449,113Changes in fair value reserve attributable to the EDP Group during the year ended 31 December 2012 are analysed as follows:Thousands of Euros Increases DecreasesBanco Comercial Português, S.A.5,452 -5,495REN - Redes Energéticas Nacionais, SGPS, S.A.- -953Tejo Energia, S.A.- -3,261Other 3,222 -4,2308,674 -13,939EDP - Annual Report 2012219