Philips 2005 Annual Report Download - page 124

Philips Annual Report 2005124
Consolidated statements of income of the Philips Group for the years ended December 31
in millions of euros unless otherwise stated
2003 2004 2005
Sales 27,937 29,346 30,395
Cost of sales (18,881) (19,485) (20,577)
Gross margin 9,056 9,861 9,818
Selling expenses (4,599) (4,549) (4,751)
General and administrative expenses (1,485) (1,326) (1,182)
Research and development expenses (2,571) (2,514) (2,553)
Write-off of acquired in-process research and development − − (6)
Impairment of goodwill (148) (596) −
Other business income (expense) 249 710 453
Earnings before interest and tax 502 1,586 1,779
Financial income and expenses (244) 216 108
Income before taxes 258 1,802 1,887
Incometaxbenet (expense) 15 (358) (586)
Income after taxes 273 1,444 1,301
Results relating to unconsolidated companies including net dilution gain of EUR 165 million
(2004: gain of EUR 254 million, 2003: gain of EUR 53 million) 506 1,422 1,681
Minority interests (56) (51) (31)
Income from continuing operations 723 2,815 2,951
Discontinued operations (14) 21 (83)
Income before cumulative effect of a change in accounting principles 709 2,836 2,868
Cumulative effect of a change in accounting principles, net of tax (14) − −
Net income 695 2,836 2,868
The years 2003 and 2004 are restated to present the MDS business as a discontinued operation (see note 1).
Theaccompanyingnotesareanintegralpartoftheseconsolidatednancialstatements
33 44
55
66
77
88
11
99
1010
Groupnancialstatements