CONTENTS - Capgemini

90 ANNUAL
GROUP CONSOLIDATED FINANCIAL STATEMENTS
Capgemini
NOTE 14 – OTHER NON-CURRENT ASSETS
Other non-current assets can be analyzed as follows:
At December 31 (in millions of euros) 2004 (1) 2005 (1) 2006
Shares in non-consolidated companies 5 5 140
Carry-back tax credits 112 116 121
Deposits and other long-term investments 56 32 23
Derivative instruments 1 - 3
Other 11 11 8
TOTAL 185 164 295
(1) The balance sheets at December 31, 2004 and 2005 have been restated in line with the amendment to IAS 19 (see Note 2 – “Change in accounting
method”).
Shares in non-consolidated companies
At December 31, 2006, shares in non-consolidated companies chiefly
concern:
The 14.7% interest in Kanbay International, Inc. (“Kanbay”), representing
€132 million.
On November 21, 2006, Capgemini North America Inc. acquired
14.7% of the capital and voting rights of Kanbay (at a price
of USD 29 per share), a global IT services provider specializing
in the financial services industry. The share acquisition followed
contracts agreed with certain core shareholders as described in the
information document filed with the United States Securities and
Exchange Commission (SEC) on November 13, 2006.
In parallel, on October 26, 2006 Capgemini and Kanbay entered
into an agreement under which Capgemini undertook to acquire
the entire capital of Kanbay through its US subsidiary Capgemini
North America Inc., subject to certain conditions (see Note 28
– “Subsequent events”).
The interest in MEDecision, for a total amount of €5 million,
which was remeasured through equity following the initial public
offering in December 2006.
NOTE 15 – ACCOUNTS AND NOTES RECEIVABLE
Accounts and notes receivable can be analyzed as follows:
REPORT 2006 Capgemini
The 5% stake in Zacatii Consulting Inc. (formerly Capgemini Japan
K.K.) for €1 million, subject to a call/put option (see Note 25 – “Off
balance sheet commitments”).
Carry-back tax credits
On June 26, 2003 and June 28, 2004, Cap Gemini S.A. sold a
tax receivable of €90 million and an additional tax receivable of
€39 million to a credit institution for €74 million and €33 million,
respectively. These receivables are measured at amortized cost.
Deposits and other long-term investments
Deposits and other long-term investments consist of aides à la construction
(building aid program) loans in France, security deposits
and guarantees and other long-term loans.
Derivative instruments
Interest and currency rates hedges contracts are described in Note 18
– “Derivative instruments”.
At December 31 (in millions of euros) 2004 2005 2006
Accounts receivable 1,329 1,337 1,459
Provisions for doubtful accounts (37) (33) (25)
Accrued income 459 467 530
Work-in-progress 22 27 99
TOTAL 1,773 1,798 2,063