APC 2005 Annual Report Download - page 106

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104
Note 23 - Research and
development
R
esearch and development costs break down as
fol
lows:
2005 2004
Research and development costs
recognized as an expense (1) 433.2 489.0
Capitalized development costs 108.9 46.0
Total Research and
Development costs of the year 542.1 535.0
(1) Of which
136.3 million recognized in gross margin and
23.2 million in commercial costs.
Amortization of capitalized development costs came
to 8.5 million in 2005.
Note 25 - Other operating income
and expenses
Other operating income and expenses for 2005 broke
down as follows:
2005 2004
Restructuring (107.0) (88.0)
Gains or losses on
the disposal of current assets 3.5 8.9
Impairment of goodwill (note 4) (8.4) -
Other 8.7 38.4
Other operating income
and expenses (103.2) (40.7)
In 2005, restructuring plans mainly involved redeploy-
ing production facilities in Europe.
Revenue and operating margin by business:
Revenue
2005 2004
Electrical Distribution 7,307 6,509
Automation & Control 2,892 2,717
Growth Platforms 1,480 1,123
11,679 10,349
Operating margin (in %) 2005 2004
Electrical Distribution 13.9% 12.8%
Automation & Control 12.7% 12.0%
Growth Platforms 12.2% 11.6%
13.4% 12.4%
Note 24 - Depreciation,
amortization and provision
expense
Depreciation, amortization and provision expense
recognized in operating expenses were as follows:
2005 2004
Included in cost of sales:
Depreciation and amortization (234.7) (231.0)
Provisions (29.5) (21.5)
Included in selling, general
and administrative expenses
Depreciation and amortization (133.4) (131.4)
Provisions 28.2 28.5
Depreciation, amortization
and provision expense (369.4) (355.4)
Dec. 31, 2004 Europe North Asia- Rest of Total
America Pacific the world
Revenue (1) 5,266 2,501 1,828 754 10,349
Segment profit (Ebit) 672 314 207 94 1,286
Balance sheet
Property, plant and
equipment and intangible assets 1,529 353 432 44 2,358
Goodwill 2,254 1,432 681 95 4,462
Working capital requirement 1,166 370 418 207 2,161
Capital employed (2) 4,949 2,155 1,531 346 8,981
(1) Based on destination of sales.
(2) Based on assets' location.