Annual Report 2006 ISS Global A/S

More documents

Recommendations

Info

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1 January – 31 December. Amounts in DKK millions 1. Significant accounting policies (continued) Pensions and similar obligations Net obligations in respect of defined benefit pension plans are calculated separately for each plan by estimating the amount of future benefits that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted. Discount rates are based on the market yield of high quality corporate bonds or government bonds in the country concerned approximating to the terms of ISS Global’s pension obligations. The calculations are performed by a qualified actuary using the Projected Unit Credit Method. When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognised as an expense in the income statement on a straight-line basis over the average period until the benefits vest. To the extent that the benefits vest immediately, the expense is recognised immediately in the income statement. All actuarial gains and losses are recognised directly in equity. Net pension assets are only recognised to the extent that ISS Global is able to derive future economic benefits in the way of refunds from the plan or reductions of future contributions. Other provisions comprises obligations concerning labour related matters, self-insurance, integration costs related to acquisitions, dismantling costs, and various other operational issues. The provisions are recognised when ISS Global has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. Derivatives are measured at fair value calculated according to generally accepted valuation methods and recognised in Other receivables or Other liabilities. For derivatives hedging the fair value of recognised assets and liabilities the value of the hedged asset or hedged liability is also stated at fair value in respect of the risk being hedged. When a hedging instrument expires or is sold, terminated or exercised but the hedged asset or hedged liability with a determinable maturity still exist, the adjustment recorded as part of the carrying amount of the hedged item is amortised to the income statement from that date onwards using the effective interest method. The effective part of the changes in the fair value of derivatives hedging future transactions is recognised directly in equity, net of tax. On realisation of the hedged item, value changes recognised under equity are reversed and recognised together with the hedged item. When a hedging instrument expires or is sold, terminated or exercised but the hedged future transactions are still expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance with the above policy when the transaction occurs. Derivatives that qualify as net investment hedges of subsidiaries, joint ventures and associates are recognised directly in equity, net of tax. For derivatives, which do not comply with the hedge accounting conditions, changes in fair value are recognised as Net finance costs in the income statement as they occur. Non-current assets held for sale Assets are classified as held for sale when the carrying amount of the assets will primarily be recovered through a sale within 12 months according to a formal plan rather than through continuing use. Assets held for sale are recognised at the lower of the carrying amount and fair value less costs to sell. Assets held for sale are not amortised or depreciated. Impairment losses on initial classification as held for sale are included in the income statement. The same applies to gains and losses on subsequent remeasurement. Assets and related liabilities are separated in the balance sheet and the main elements are specified in the notes to the financial statements. Discontinued operations comprises a component of ISS Global’s business that represent a separate major line of business or geographical area of which the operations and cash flows can be clearly distinguished, i.e. as a minimum a cash-generating unit. Classification as discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale. The profit or loss is separated in the income statement, assets and related liabilities are separated in the balance sheet, and the cash flows from operating, investing and financing activities are disclosed in the notes to the financial statements. _____________________________________________________________________________________________________________ ANNUAL REPORT 2006 / Consolidated Financial Statements 52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1 January – 31 December. Amounts in DKK millions 2. Segment information In line with the internal management structure, the geographical segment is the primary segment. Geographical (primary segment) 2006 External revenue France 9,641 United Kingdom 6,877 Norway 4,758 Denmark 2) 3,756 Sweden 3,558 Netherlands 3,481 Finland 3,173 Spain 3,142 Australia 2,691 Belgium and Luxembourg 2,534 Switzerland 1,875 Germany 1,842 Asia 3) 1,817 Austria 1,589 Latin America 4) 1,049 Central and Eastern Europe 5) 933 Israel 769 Ireland 575 Turkey 539 Portugal 364 Greece 237 Italy 199 New Zealand 155 Iceland 146 Greenland Regional items, not allocated 84 to countries - Total operations 55,784 Corporate functions/eliminations - Total 55,784 Total revenue 1) Operating profit before other items 9,642 6,879 4,758 3,757 3,558 3,481 3,173 3,142 2,691 2,534 1,875 1,842 1,818 1,589 1,049 933 769 575 539 364 237 199 155 146 84 - 55,789 (5) 55,784 595 433 341 248 226 244 157 192 171 165 143 74 124 106 50 60 51 49 33 25 15 23 5 12 4 (3) 3,543 (250) 3,293 Operating margin % 6.2 6.3 7.2 6.6 6.4 7.0 5.0 6.1 6.4 6.5 7.6 4.0 6.8 6.7 4.8 6.4 6.7 8.5 6.2 6.8 6.4 11.8 3.3 8.0 4.5 6.4 5.9 Operating profit 453 333 279 290 180 204 110 145 99 131 111 46 89 86 32 47 34 42 25 20 12 21 2 9 2 - (4) 2,798 - (2) 2,796 1) Internal revenue has not been disclosed due to immateriality. 2) Including the Faroe Islands. 3) Asia comprises Brunei, China, Hong Kong, India, Indonesia, Malaysia, the Phillippines, Singapore, Sri Lanka and Thailand. Share of result from associates 4) Latin America comprises Argentina, Brazil, Chile, Mexico and Uruguay. 5) Central and Eastern Europe comprises the Czech Republic, Croatia, Estonia, Hungary, Poland, Romania, Russia, Slovenia and Slovakia. Cash flow from operating activities 0 609 - 407 4 276 - 205 4 194 1 162 0 170 - 108 (26) 100 - 116 - 190 - 7 0 74 - 34 - (23) - 41 - 41 - 16 - 24 - 33 - (2) - 9 - 6 - 9 - 5 - (17) - (17) (52) 2,759 247 3,006 Continues _____________________________________________________________________________________________________________ ANNUAL REPORT 2006 / Consolidated Financial Statements 53
Page 1 and 2: ISS Global A/S Bredgade 30 DK - 126
Page 3 and 4: Key Figures Amounts in DKK millions
Page 5 and 6: growth. Furthermore, the effect of
Page 7 and 8: In 2006, ISS Global continued the p
Page 9 and 10: to costs related to a turnaround pl
Page 11 and 12: structure, ISS established an Opera
Page 13 and 14: Strategy ISS Global is a fully owne
Page 15 and 16: Geography ISS intends to increasing
Page 17 and 18: Openness and transparency In additi
Page 19 and 20: tors. The controllers perform follo
Page 21 and 22: Risk Factors ISS Global is a fully
Page 23 and 24: tual obligations could harm ISS’s
Page 25 and 26: If ISS fails to manage growth and i
Page 27 and 28: ISS may incur substantial liabiliti
Page 29 and 30: thus reduce or prevent dividend pay
Page 31 and 32: Independent Auditor’s Report To t
Page 33 and 34: Organic growth ISS Global uses esti
Page 35 and 36: 2006 primarily related to redundanc
Page 37 and 38: Tempo as well as a number of smalle
Page 39 and 40: including non-interest-bearing debt
Page 41 and 42: CONSOLIDATED CASH FLOW STATEMENT 1
Page 43 and 44: CONSOLIDATED STATEMENT OF TOTAL REC
Page 45 and 46: NOTES TO THE CONSOLIDATED FINANCIAL
Page 51: NOTES TO THE CONSOLIDATED FINANCIAL
Page 103 and 104:
CASH FLOW STATEMENT OF THE PARENT C
Page 105 and 106:
STATEMENT OF TOTAL RECOGNISED INCOM
Page 107 and 108:
NOTES TO THE FINANCIAL STATEMENTS O
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123:
Definitions EBITDA = Operating prof
show all

Annual Report 2006 ISS Global A/S

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?