Philips 2005 Annual Report Download - page 145

Philips Annual Report 2005 145
Themostsignicantnewprojectsin2005
Within Consumer Electronics (CE), the Audio/Video Innovation Center
in Austria and Mobile Phone Business in France were closed. The gross
charge for these projects totaled EUR 67 million and consisted of:
Lay-off costs EUR 54 million and related to approximately 1,100 people
Other costs EUR 13 million
Please refer to the table below for a presentation of the December 31
balance and a roll-forward within CE during the year:
Dec. 31,
2004 additions utilized released
Dec. 31,
2005
Personnel costs 22 54 (62) (1) 13
Other costs 11 13 (14) – 10
33 67 (76) (1) 23
Within Other Activities, mainly PolyLed, CMS-Louviers, ETG and Power
Solutions activities have been rationalized. Costs related to these
actions totaled EUR 41 million and consisted of:
Lay-off costs EUR 16 million and related to approximately 380 people
Write-down of
assets EUR 25 million
Please refer to the table below for a presentation of the December 31
balance and a roll-forward within Other Activities during the year:
Dec. 31,
2004 additions utilized released
other
changes
Dec. 31,
2005
Personnel costs 39 16 (12) (3) (10) 30
Write-down of
assets – 25 (25) – – −
Other costs 20 – (2) – (18) −
59 41 (39) (3) (28) 30
Semiconductors continued their efforts for ongoing reduction of excess
capacity, overhead- and research and development costs in Europe.
Related restructuring costs recognized in the 2005 income statement
amounted to EUR 12 million and consisted of:
Lay-off costs EUR 10 million and related to approximately 225 people
Write-down of
assets EUR 2 million
Please refer to the table below for a presentation of the December 31
balance and a roll-forward within Semiconductors during the year:
Dec. 31,
2004 additions utilized released
Dec. 31,
2005
Personnel costs 39 10 (25) (4) 20
Write-down of
assets −2 (2) – −
Other costs 2 – (2) – −
41 12 (29) (4) 20
Within Lighting, ongoing rationalization took place in Lamps through the
downsizing of capacity and transfer of production to low-wage countries.
Costs related to these actions in Spain, the Netherlands and India
totaled EUR 35 million and consisted of:
Lay-off costs EUR 32 million and related to approximately 350 people
Other costs EUR 3 million
Please refer to the table below for a presentation of the December 31
balance and a roll-forward within Lighting during the year:
Dec. 31,
2004 additions utilized released
Dec. 31,
2005
Personnel costs 11 32 (35) (3) 5
Other costs 1 3 (3) – 1
12 35 (38) (3) 6
The remaining restructuring projects in 2005 for the Company
amounted to EUR 6 million and covered a number of smaller projects,
relating to lay-offs and certain other costs. Please refer to the table
below for a presentation of the December 31 balance and a roll-
forward within Remaining other projects during the year:
Dec. 31,
2004 additions utilized released
Dec. 31,
2005
Personnel costs 2 4 (2) (1) 3
Other costs 1 2 (3) – −
3 6 (5) (1) 3
The balance of restructuring liabilities as of December 31, 2005
amounted to EUR 82 million (2004: EUR 148 million), which is
presented in the balance sheet under accrued liabilities. At December
31, 2004, EUR 114 million was presented under accrued liabilities and
EUR 34 million under provisions.
The following tables present the changes in the restructuring liabilities
from December 31, 2002 to December 31, 2005:
Dec. 31,
2004 additions utilized released
other
changes1)
Dec. 31,
2005
Personnel costs 113 116 (136) (12) (10) 71
Write-down of
assets −27 (27) −−−
Other costs 35 18 (24) – (18) 11
148 161 (187) (12) (28) 82
1) Other changes primarily related to translation differences
Dec. 31,
2003 additions utilized released
other
changes1)
Dec. 31,
2004
Personnel costs 151 153 (173) (13) (5) 113
Write-down of
assets −125 (125) −−−
Other costs 86 37 (63) (14) (11) 35
237 315 (361) (27) (16) 148
1) Other changes primarily related to translation differences
thepensioncostsandcostsofotherpostretirementbenetplans
Resultsondisposalofxedassets
ofcertainactivitieswithintheCompany’smonitorsandatTVbusiness
disposalofxedassetsin2005mainlyrelatedtothesaleofbuildingsin
mostsignicantbeinginsurancerecoveriesofEUR 58 million, releases
benetsandreleasesofprovisionsrelatedtopreviousdivestments.
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