ANNUAL REPORT 2004 - ELMOS Semiconductor AG

MANAGEMENT BOARD ELMOS – THE COMPANY THE ELMOS SHARE CORPORATE GOVERNANCE
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The plan assets in the shape of reinsurance policies is offset against pension ex-
penses and developed in the past fiscal year as follows: Plan assets in the shape of
reinsurance policies came to 627,133 Euro as of December 31, 2003 and 797,881 Euro
as of December 31, 2004. Insurance contribution amounted to 175,269 Euro in 2004.
Actuarial loss (not realized) was 4,521 Euro in 2004.
There are also two contribution oriented pension plans for members of the Manage-
ment Board for which contributions of 104,153 Euro were paid in 2004.
Income taxes
Deferred tax assets and liabilities are based on differences between financial repor-
ting and tax bases of assets and liabilities and are measured using the enacted tax
rates and laws that will be in effect when the differences are expected to reverse.
The effect of a change in tax rates on deferred tax assets and liabilities is recognized
in the fiscal year that includes the enactment date.
Earnings per common share
Basic earnings per common share are based on the weighted-average number of com-
mon shares outstanding during the respective periods. Diluted earnings per common
share are based on the weighted-average number of common shares outstanding
adjusted to include the effects of potentially diluting share options.
3. INVENTORIES
Inventories are composed as follows:
Dec. 31, 2004
Euro
Dec. 31, 2003
Euro
Raw material 6,958,301 6,491,767
Work in process 11,136,905 11,335,590
Finished goods 7,052,528 4,305,111
25,147,734 22,132,468