PDF, 1.2 MB - Pfleiderer AG

15. Deferred income
16. Discontinued operations
consolidated financial statements notes pfleiderer ag 95
as lease payments for cars not used in the 1st quarter of 2003. Accruals have also been
formed for outstanding severance payments to 34 industrial and 7 office members of staff in a
plant since closed down belonging to the Wood-Based Panels Business Center.
Deferred income includes income from the sale of receivables due over the coming years from
a lease agreement (non-recourse financing). The deferred income item is released (affecting
income) in installments corresponding to the actual lease payments as of their due dates. The
outstanding residual amount from non-recourse financing stood at 10,432 thousand euros as
of December 31, 2002. Normal interest rate conditions apply. The agreement terminates on
May 1, 2007.
During fiscal 2002, the Company disposed of the Insulation Technology and Doors and Windows
Business Centers. The Windows Business Unit was disposed of in June 2002 through a
management buy-out of Pfleiderer Fenster GmbH & Co. KG by employees of this company. The
Doors Business Unit was disposed of by selling Pfleiderer Bauelemente GmbH & Co. KG and its
affiliates to the Danish doors manufacturer Vest-Wood A/S, Logstor, Denmark. The transaction
took effect as of October 31, 2002.
The operative business of the Insulation Technology Business Center was sold to the
Spanish company Uralita S.A., Madrid, this transaction taking effect as of November 30, 2002.
This disposal included the sale of investments in 11 affiliates, a separate asset deal covering
the sale of all intangible assets and property, plant and equipment with a few insignificant
exceptions, as well as all inventories owned by Pfleiderer Dämmstofftechnik GmbH & Co. KG.
The remaining assets and debts of those companies not sold are shown in the Consolidated
Balance Sheet under discontinued operations.
Disposal of discontinued operations resulted in a loss of 36,209 thousand euros in spite
of the positive cash flow of 170,112 thousand euros. The following table shows the results of
the disposal:
‘000 euros
Agreed aggregate selling price 225,000
plus cash funds, less interest-bearing liabilities
(of which bank loans of 29,450 thousand euros) – 54,888
Cash received from sale of discontinued operations 170,112
Disposal of assets and debts of operations sold – 189,448
Ancillary selling expenses and follow-up costs of sale – 18,021
– 37,357
plus income from deferred taxes 1,148
Loss from sale of discontinued operations – 36,209