Philips 2005 Annual Report Download - page 5

Philips Annual Report 2005 5
Notestothegroupnancialstatements
140 Discontinued operations
140 Acquisitions and divestments
143 Earnings before interest and tax
144 Restructuring and impairment charges
146 Financial income and expenses
147 Income taxes
148 Investments in unconsolidated companies
150 Minority interests
150 Cumulative effect of change in accounting principles
151 Earnings per share
152 Receivables
152 Inventories
152 Other current assets
152 Othernon-currentnancialassets
153 Non-current receivables
153 Other non-current assets
153 Property, plant and equipment
154 Intangible assets excluding goodwill
154 Goodwill
155 Accrued liabilities
155 Provisions
156 Pensions
159 Postretirementbenetsotherthanpensions
161 Other current liabilities
161 Short-term debt
162 Long-term debt
163 Other non-current liabilities
163 Leases
163 Other commitments and contingent liabilities
165 Stockholders’ equity
165 Cash from derivatives
165 Proceedsfromothernon-currentnancialassets
165 Assets received in lieu of cash from the sale of businesses
166 Related-party transactions
166 Share-based compensation
171 Information on remuneration of the individual members
of the Board of Management and the Supervisory Board
173 Fairvalueofnancialassetsandliabilities
174 Othernancial instruments, derivatives and currency risk
174 Subsequent events
NotestotheIFRSnancialstatements
192 Discontinued operations
192 Acquisitions and divestments
194 Earnings before interest and tax
195 Financial income and expenses
196 Income taxes
197 Investments in unconsolidated companies
199 Minority interests
200 Earnings per share
200 Other current assets
200 Other non-current assets
201 Property, plant and equipment
202 Intangible assets excluding goodwill
202 Goodwill
203 Accrued liabilities
203 Provisions
204
Pensionsandpostretirementbenetsotherthanpensions
206 Short-term debt
206 Long-term debt
207 Other non-current liabilities
207 Leases
208 Assets received in lieu of cash from the sale of businesses
208 Fairvalueofnancialassetsandliabilities
209 Othernancialinstruments,derivativesandcurrencyrisk
209 Subsequent events
Notestothecompanynancialstatements
214 Receivables
214 Investmentsinafliatedcompanies
215 Othernon-currentnancialassets
215 Property, plant and equipment
215 Intangiblexedassets
215 Other current liabilities
215 Short-term debt
215 Provisions
216 Long-term debt
216 Stockholders’ equity
216 Net income
216 Employees
216 Obligations not appearing in the balance sheet
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Use of non-US GAAP information
InpresentinganddiscussingthePhilipsGroup’snancialposition,operatingresultsandcash
ows,managementusescertainnon-USGAAPnancialmeasures.Thesenon-USGAAPnancial
measures should not be viewed in isolation as alternatives to the equivalent US GAAP measure(s)
and should be used in conjunction with the most directly comparable US GAAP measure(s).
A discussion of the non-US GAAP measures included in this document and a reconciliation of
such measures to the most directly comparable US GAAP measure(s) can be found in the
section Other information on page 120 of this document.
Fair value information
InpresentingthePhilipsGroup’snancialposition,fairvaluesareusedforthemeasurementof
various items in accordance with the applicable accounting standards. These fair values are based
on market prices, where available, and are obtained from sources that are deemed to be reliable.
Users are cautioned that these values are subject to change sover time and are only valid at the
balance sheet date. When a readily determinable market value does not exist, fair values are
estimated using valuation models. The models that are used are appropriate for their purpose.
Theyrequiremanagementtomakesignicantassumptionswithrespecttofuturedevelopments
which are inherently uncertain and may therefore deviate from actual developments. Critical
assumptionsusedaredisclosedinthenancialstatements.Incertaincases,independent
valuations are obtained to support management’s determination of fair values.