Philips 2006 Annual Report Download - page 138

Philips Annual Report 2006138
Additions in 2006 of EUR 121 million are presented by sector
as follows:
personnel
costs
write-
down of
assets
other
costs total
Medical Systems 13 33 2 48
DAP 13 − − 13
CE 11 − 1 12
Lighting 41 5 2 48
Other Activities − − − −
78 38 5 121
The most signifi cant new projects in 2005
New projects in 2005 included the closure of the Audio/Video
Innovation Centre and the restructuring of the Mobile Infotainment
business in CE. Furthermore, within Lighting, further rationalization
took place in Lamps through downsizing of excess capacity and transfer
of production to low-wage countries. Within Other Activities, a number
of activities were prepared for their disentanglement or divestment.
The remaining restructuring projects in 2005 covered a number of
smaller projects, all relating to lay-offs.
The movements in the provisions and liabilities for restructuring costs
in 2005 are presented by sector as follows:
Dec. 31,
2004 additions utilized released
other
changes
1)
Dec. 31,
2005
Medical
Systems 2 2 (3 ) (1 ) − −
DAP 1 4 (2 ) − − 3
CE 33 67 (76 ) (1 ) − 23
Lighting 12 41 (44 ) (3 ) − 6
Other
Activities 59 41 (39 ) (3 ) (28 ) 30
107 155 (164 ) (8 ) (28 ) 62
1) Other changes primarily related to translation differences
Additions in 2005 of EUR 155 million are presented by sector
as follows:
personnel
costs
write-
down of
assets
other
costs total
Medical Systems 1 − 1 2
DAP 3 − 1 4
CE 54 − 13 67
Lighting 32 6 3 41
Other Activities 16 25 − 41
106 31 18 155
The most signifi cant new projects in 2004
The major new projects in 2004 were in CE, Lighting and
Other Activities.
The movements in provisions and liabilities for restructuring costs
in 2004 are presented by sector as follows:
Dec. 31,
2003 additions utilized released
other
changes
1)
Dec. 31,
2004
Medical
Systems 22 3 (14 ) (8 ) (1 ) 2
DAP 3 8 (10 ) − − 1
CE 55 140 (157 ) (2 ) (3 ) 33
Lighting 10 65 (56 ) (2 ) (5 ) 12
Other
Activities 81 58 (66 ) (6 ) (8 ) 59
171 274 (303 ) (18 ) (17 ) 107
1) Other changes primarily related to translation differences
Additions in 2004 of EUR 274 million are presented by sector
as follows:
personnel
costs
write-
down of
assets
other
costs total
Medical Systems 3 − − 3
DAP 8 − − 8
CE 61 50 29 140
Lighting 30 33 2 65
Other Activities 11 42 5 58
113 125 36 274
The releases of surplus in 2006, 2005 and 2004 were primarily
attributable to reduced severance due to a transfer of employees
who were originally expected to be laid off to other positions within
Philips. In 2004, the release was partly attributable to tools and
equipment sold, which was originally not anticipated in the plan.
The Company expects to make maximum cash expenditures of EUR
92 million in the next two years under restructuring programs that
existed at December 31, 2006.
112 Group fi nancial statements
Notes to the group fi nancial statements
172 IFRS information 218 Company fi nancial statements