Philips 2004 Annual Report Download - page 120

The remaining prior-year provisions available at December 31, 2004 relate to both personnel
and other costs. The Company expects to make cash expenditures of EUR 148 million in the
next two years under existing restructuring programs.
Other business income (expense)
Other business income (expense) consists of the following:
2002 2003 2004
Result on disposal of businesses 504 36 639
Result on disposal of fixed assets 65 88 56
Remaining business income (expense) (84) 124 18
Total 485 248 713
Significant gains and losses on the disposal of businesses consisted of:
2002 2003 2004
Initial public offering NAVTEQ 635
Remaining activities of PCMS 15
Speech Processing activities 20
Partial sale of PCMS 83
Communication, Security and Imaging business 71
Philips Broadband Networks 49
X-Ray Analytical 85
Earn-out of JDS Uniphase shares 113
Glass activities Display Components 40
Components activities in Japan 40
Other 23 1 4
Total 504 36 639
The result on disposal of businesses in 2004 primarily consists of a non-taxable gain of EUR 635
million on the initial public offering of NAVTEQ (please refer to note 5).
In 2004, remaining business income (expense) consists of a variety of smaller items, the most
significant being a EUR 51 million insurance recovery in respect of property damage from the
fire in Semiconductors Caen. Furthermore it includes the payment of EUR 133 million for the
settlement of litigation in the US with Volumetrics, net of an insurance benefit.
Remaining business income (expense) in 2003 included the release of a provision of EUR 50
million related to the purchase of shares of NAVTEQ. Moreover, income was positively
affected by insurance benefits and releases of provisions in relation to previous divestments. In
2002, remaining business income (expense) was mainly negatively affected by acquisition-related
costs in Medical Systems.
119Philips Annual Report 2004