Philips 2007 Annual Report Download - page 215

Philips Annual Report 2007 221
Deferred tax assets and liabilities relate to the following balance sheet
captions, as follows:
assets liabilities net
2007
Intangible assets 43 (414) (371)
Property, plant & equipment 120 (55) 65
Inventories 164 (47) 117
Prepaid pension costs 18 (145) (127)
Other receivables 54 (15) 39
Other assets 42 (26) 16
Provisions:
- Pensions 304 − 304
- Restructuring − − −
- Guarantees 13 − 13
- Termination benets 19 − 19
- Other postretirement 133 − 133
- Other 422 (293) 129
Other liabilities 128 (35) 93
1,460 (1,030) 430
Set off of deferred tax positions (889) 889 −
571 (141) 430
assets liabilities net
2006
Intangible assets − (492) (492)
Property, plant & equipment 86 (60) 26
Inventories 158 (20) 138
Prepaid pension costs 10 (100) (90)
Other receivables 68 (20) 48
Other assets 366 (20) 346
Provisions:
- Pensions 259 − 259
- Restructuring 24 − 24
- Guarantees 15 − 15
- Termination benets 23 − 23
- Other postretiremen 94 − 94
- Other 444 (150) 294
Other liabilities 77 (25) 52
1,624 (887) 737
Set off of deferred tax positions (624) 624 −
1,000 (263) 737
In assessing the realizability of deferred tax assets, management considers
whether it is probable that some portion or all of the deferred tax
assets will not be realized. The ultimate realization of deferred tax
assets is dependent upon the generation of future taxable income
during the periods in which those temporary differences become
deductible. Management considers the scheduled reversal of deferred
tax liabilities, projected future taxable income and tax planning strategies
in making this assessment. In order to fully realize the deferred tax
asset, the Company will need to generate future taxable income in the
countries where the net operating losses were incurred. Based upon
the level of historical taxable income and projections for future taxable
income over the periods in which the deferred tax assets are deductible,
management believes as at December 31, 2007, it is probable that the
Company will realize all or some portion of the recognized benets
of these deductible differences.
At December 31, 2007, operating loss carryforwards expire as follows:
Total 2008 2009 2010 2011 2012
2013/
2017 later
un-
limited
4,496 8 11 5 14 10 6 884 3,558
The Company also has tax credit carryforwards of EUR 77 million, which
are available to offset future tax, if any, and which expire as follows:
Total 2008 2009 2010 2011 2012
2013/
2017 later
un-
limited
77 1 1 − 2 4 5 25 39
At December 31, 2007, operating loss and tax credit carryforwards
for which no deferred tax assets have been recognized in the balance
sheet, expire as follows:
Total 2008 2009 2010 2011 2012
2013
/2017 later
un-
limited
1,214 7 11 4 7 10 5 29 1,141
Classication of the income tax payable and receivable is as follows:
2006 2007
Income tax receivable − under current receivables 105 52
Income tax receivable − under non-current
receivables 25 14
Income tax payable − under accrued liabilities (519) (154)
Income tax payable − under non-current liabilities (36) (1)
43
Investments in equity-accounted investees
Results relating to investments in equity-accounted investees
2005 2006 2007
Company’s participation in income and
loss 514 (188) 246
Results on sales of shares 1,754 106 660
Gains and losses from dilution effects 190 13 −
Investment impairment / other charges (179) (70) (22)
2,279 (139) 884
Detailed information of the aforementioned individual line items is
set out below.
Company’s participation in income and loss
2005 2006 2007
LG.Philips LCD 148 (192) 241
LG.Philips Displays (42) − −
Others 408 4 5
514 (188) 246
43
Group nancial statements
Notes to the IFRS nancial statements
Company nancial statements 250 Corporate governance246 Reconciliation of
non-US GAAP information 258 The Philips Group in the last ten years 260
Investor information