Philips 2005 Annual Report Download - page 152

Philips Annual Report 2005152
11
Receivables
Trade accounts receivable include installment accounts receivable of
EUR 17 million (2004: EUR 45 million).
Income taxes receivable (current portion) totaling EUR 71 million
(2004: EUR 46 million) are included under other receivables.
The changes in the allowance for doubtful accounts are as follows:
2003 2004 2005
Balance as of January 1 225 184 216
Additions charged to income 58 52 40
Deductions from allowance1) (27) (4) (16)
Other movements2) (72) (16) (48)
Balance as of December 31 184 216 192
1) Write-offs for which an allowance was previously provided
2) Including the effect of translation differences and consolidation changes
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Inventories
Inventories are summarized as follows:
2004 2005
Raw materials and supplies 1,023 1,258
Work in process 576 602
Finished goods 1,665 1,796
Advance payments on work in process (124) (176)
3,140 3,480
The amounts recorded above are net of reserves for obsolescence. The
changes in the reserves for obsolescence of inventories are as follows:
2003 2004 2005
Balance as of January 1 691 605 567
Additions charged to income 280 226 258
Deductions from reserve (284) (230) (234)
Other movements1) (82) (34) 35
Balance as of December 31 605 567 626
1) Including the effect of translation differences and consolidation changes
As of December 31, 2005, the carrying amount of inventories carried at
fair value less cost-to-sell is EUR 132 million (2004: EUR 145 million).
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Other current assets
Other current assets primarily consist of a current deferred tax asset of
EUR 482 million (2004: EUR 334 million), derivative instruments - assets
of EUR 143 million (2004: EUR 523 million) and prepaid expenses.
The Company has no trading securities.
14
Other non-current nancial assets
The changes during 2005 are as follows:
total
available-
for-sale
securities loans
restricted
liquid
assets other
Balance as of
January 1,
2005 876 662 22 134 58
Changes:
Acquisitions/
additions 278 20 – 39 219
Sales/
redemptions/
reductions (624) (622) – – (2)
Value
adjustments 116 53 3 7 53
Translation
and exchange
differences 27 – 3 3 21
Balance as of
December 31,
2005 673 113 28 183 349
Acquisitions and additions include the TPV convertible bond.
Available-for-sale securities at December 31:
2004 2005
number of
shares fair value
number of
shares fair value
JDS Uniphase 39,318,996 92 39,318,996 78
D&M Holdings − − 11,126,640 35
Atos Origin 10,321,043 516 − −
Great Nordic 6,830,687 54 − −
662 113
A summary of unrealized gains and losses on available-for-sale securities
at December 31 is as follows:
2004 2005
Total cost 476 113
Net unrealized gains 187 14
Net unrealized losses (1) (14)
Total fair value 662 113
In 2005, Philips sold its remaining stake in Atos Origin (10.3 million
shares) for an amount of EUR 554 million. The sale of Atos Origin
resulted in a gain of EUR 185 million, which has been recorded under
nancialincomeandexpenses(pleaserefertonote5).
Prior to this transaction, Philips’ shareholding represented 15.4% of
AtosOrigin’soutstandingshareswhichwerereclassiedin2004from
unconsolidated companies to available-for-sale securities in Other
non-currentnancialassets.
Groupnancialstatements