Philips 2004 Annual Report Download - page 116

Please refer to the table below for a presentation of the December 31 balance and a
roll-forward within Other Activities during the fiscal year:
Dec. 31, 2003 additions utilized released Dec. 31, 2004
Personnel costs 22 11 (4) – 29
Write-down of assets – 42 (42) – –
Other costs 1 5 – (6) –
Total 23 58 (46) (6) 29
GIn Semiconductors, despite the improved market situation, further reduction of excess capacity,
overhead and R&D costs in Europe was realized. Costs related to these actions recognized in
the 2004 income statement amounted to EUR 41 million and consisted of:
Lay-off costs EUR 40 million (related to 700 people)
Other costs EUR 1 million (contract obligations)
Please refer to the table below for a presentation of the December 31 balance and a
roll-forward within Semiconductors during the fiscal year:
Dec. 31, 2003 additions utilized released Dec. 31, 2004
Personnel costs 40 40 (32) (9) 39
Other costs 4 1 (5)– –
Total 44 41 (37) (9) 39
GWithin Lighting, further rationalization took place in Lamps and Luminaires through the
downsizing of capacity and transfer of production. Costs related to these actions and asset
impairments in Spain and the Netherlands recognized in the 2004 income statement amounted
to EUR 65 million and consisted of:
Lay-off costs EUR 30 million (related to 300 people)
Write-down of assets EUR 33 million
Other costs EUR 2 million (contract obligations)
Please refer to the table below for a presentation of the December 31 balance and a
roll-forward within Lighting during the fiscal year:
Dec. 31, 2003 additions utilized released Dec. 31, 2004
Personnel costs 6 30 (25) – 11
Write-down of assets – 33 (33) – –
Other costs 3 2 (3)(2)–
Total 9 65 (61) (2) 11
The remaining new restructuring projects in 2004 for the Philips Group amounted to EUR 11
million and covered a number of smaller projects, which were all related to lay-offs.
115Philips Annual Report 2004