Pallet-Management-Services - AFM

| ANNUAL REPORT 2006 | IFCO SYSTEMS N.V. |
The movement in the Company’s property, plant and
equipment during 2005 is as follows:
US $ in thousands Land Buildings RPCs Pallet
Pool
82
Machinery
and
Equipment
Furniture
and
Fixtures
Tractors
and
Trailers
Net book value, January 1, 2005 870 4,389 186,992 4,668 15,017 1,485 2,152 215,573
Currency translation loss – (67) (23,095) – (1,015) (96) – (24,273)
Additions – 438 73,190 – 9,302 523 5,727 89,180
Retirements (38) (669) (24) (4,668) (3,501) (89) (54) (9,043)
Depreciation and shrinkage – (623) (22,621) – (3,090) (637) (765) (27,736)
Net book value, December 31, 2005 832 3,468 214,442 – 16,713 1,186 7,060 243,701
Historical cost 832 7,221 323,419 – 41,271 5,907 12,290 390,940
Accumulated depreciation, amortization
and impairment – (3,753) (108,977) – (24,558) (4,721) (5,230) (147,239)
Net book value, December 31, 2005 832 3,468 214,442 – 16,713 1,186 7,060 243,701
In addition to the movements shown within the 2005 table
there has been a reduction of historical cost and accumulated
depreciation for crates of the old generation in Europe in a
volume of US $31.0 million that have been disposed within the
years up to 2005. Those two reductions had no impact to the
net book value of the Company’s RPCs.
In addition to the movements shown within the 2006 table
there has been a reduction of historical cost and accumulated
depreciation for crates of the old generation in North America in
a volume of US $15.2 million that have been disposed through
the end of 2006. Those two reductions had no impact to the net
book value of the Company’s RPCs.
Due to the change of the crate type demand of our customers,
we do not offer services for the yellow pool anymore. Based on
IAS 36 we have impaired the net book value of this pool. An
amount of US $1.5 million is included in depreciation of RPCs
in 2006 as a result of this impairment reducing the book value
to the fair value less cost to sell, which is based on market value
for granulate.
Of the RPCs above, cost of US $39.9 million and
US $36.8 million and accumulated amortization of
US $7.2 million and US $6.6 million are held under finance
leases as of December 31, 2006 and 2005, respectively.
Of the tractors and trailers above, cost of US $12.3 million
and US $5.4 million and accumulated amortization of
US $2.6 million and US $0.5 million are held under finance
leases as of December 31, 2006 and 2005, respectively.
5. Detail of certain balance sheet accounts
Goodwill
The changes in the carrying amount of goodwill are as follows
for 2006 and 2005:
Total
US $ in thousands 2006 2005
Beginning balance 152,920 155,874
Increase (decrease) due to foreign
exchange translation 2,779 (2,954)
Ending balance 155,699 152,920
Receivables
The major components of receivables are as follows:
US $ in thousands As of December 31,
2006 2005
Trade receivables 150,570 141,475
Less: Allowance for
doubtful accounts (4,935) (6,089)
145,635 135,386