Philips 2004 Annual Report Download - page 118

In 2004, asset write-downs are mainly related to Consumer Electronics, Other Activities and
Lighting, while in 2003 they are mainly related to Semiconductors.
Inventory write-downs as part of restructuring projects are recorded in the cost of sales and
amounted to EUR 33 million in 2004, of which EUR 26 million relates to Consumer Electronics,
(2003: nil, 2002: EUR 10 million) and EUR 7 million relates to Other Activities.
The movements in the provisions and liabilities for restructuring costs in 2004 are presented by
sector as follows:
balance additions utilized released other balance
Dec. 31, changes Dec. 31,
2003 2004
Medical Systems 22 3 (14) (8) (1) 2
DAP 3 8 (10) – – 1
Consumer Electronics 55 140 (157) (2) (3) 33
Lighting 10 65 (56) (2) (5) 12
Semiconductors 66 41 (58) (9) 1 41
Other Activities 85 58 (70) (6) (8) 59
Total 241 315 (365) (27) (16) 148
New projects in 2004 of EUR 315 million are presented by sector as follows:
personnel write- other total
costs down costs
of assets
Medical Systems 3 – – 3
DAP 8 – – 8
Consumer Electronics 61 50 29 140
Lighting 30 33 2 65
Semiconductors 40 – 1 41
Other Activities 11 42 5 58
Total 153 125 37 315
The movements in the liabilities for restructuring costs in 2003 are presented by sector as
follows:
balance additions utilized released other balance
Dec. 31, changes Dec. 31,
2002 2003
Medical Systems 41 18 (25) (11) (1) 22
DAP 6 – (3) – – 3
Consumer Electronics 84 72 (86) (14) (1) 55
Lighting 16 29 (33) (2) – 10
Semiconductors 76 309 (288) (27) (4) 66
Other Activities 203 62 (145) (29) (6) 85
Unallocated 1 – (1)– – –
Total 427 490 (581) (83) (12) 241
117Philips Annual Report 2004