Pallet-Management-Services - AFM

| ANNUAL REPORT 2006 | IFCO SYSTEMS N.V. |
Other current liabilities
The major components of other current liabilities are as follows:
US $ in thousands As of December 31,
2006 2005
Interest payable 7,537 6,754
Logistic remuneration 7,403 6,201
Other 16,248 18,382
84
31,188 31,337
Due to the short term maturity the book value approximates
the fair value for other current liabilities as well as for trade and
other payables.
Exchange warrant reserve
Article 20.3 of the Company’s articles of association state,
that from the profits the Board of Managing Directors shall
first allocate an amount of fifty thousand euro (EUR 50,000),
with respect to the payment of the issue price on the shares
(EUR 0.01 per share) to be issued upon exercise of the
Exchange Warrants – see also The IFCO SYSTEMS share –,
to a reserve, which reserve will be used solely for the payment
of the issue price on the shares to be issued upon exercise of
the Exchange Warrants to the holders of the Exchange Warrants
(the “Exchange Warrant Reserve”).
According to this regulation, EUR 50,000 were included in the
Company’s retained earnings as of December 31, 2005.
On December 20, 2005, it was resolved that the warrant
exchange resulted in the issuance of up to 8,448,360 ordinary
shares of IFCO SYSTEMS N.V.. Therefore, in the extraordinary
General Meeting of Shareholders on January 9, 2006 the
shareholders of IFCO SYSTEMS N.V. unanimously adopted
the increase of the Exchange Warrant Reserve (Par Value
Subscription Reserve) from EUR 50,000.- to EUR 90,000.according
to Article 20.3 of the Articles of Association
of IFCO SYSTEMS N.V. by reallocation of an amount of
EUR 40,000.- from the Company’s free distributable share
premium reserve (retained earnings) to the Exchange Warrant
Reserve.
The expenses associated with the warrant exchange were
capitalized in the amount of US $0.7 million in 2005. In 2006
these capitalized expenses were reclassified to equity. The total
reduction of equity in 2006 resulting from the warrant exchange
is US $0.9 million as shown in the accompanying statements of
changes in equity.
Other reserves
Other reserves as outlined in the statement of changes in equity
relate to currency related differences.
Paid in Capital
Paid in capital mainly includes capital surplus from the issuance
of stock. There are no restrictions on the use of the paid in
capital.
6. Detail of certain income statement accounts
US $ in thousands Year ended December 31,
2006 2005
Included in cost of sales:
Depreciation 32,839 26,810
Employee benefits expense 108,959 98,024
Costs of inventories recognized
as an expense 160,855 142,473
Included in selling expenses:
Employee benefits expense 8,068 7,410
Included in general and
administrative expenses:
Depreciation 867 923
Employee benefits expense 18,166 20,234
Stock based compensation expenses as outlined in the income
statement mainly relate to general and administrative expenses.
Amortization of other assets as outlined in the income statement
mainly relate to general and administrative expenses.