Current and Noncurrent Assets
Noncurrent assets rose to €4.00 billion (2010: €3.55 billion), a gain of €448.4 million or 13 percent. At 64 percent, though, the share of noncurrent assets within total assets remained constant compared with the previous year (2010: 64 percent). Current assets also rose year over year. They total €2.24 billion (2010: €1.95 billion), an increase of 15 percent. In terms of their share of total assets, current assets, at 36 percent, were more or less at the prior-year level (2010: 36 percent). The gain on the assets side of the statement of financial position is due primarily to increased capital expenditures, higher inventories, and additions to the securities portfolio.
Intangible Assets, Property, Plant and Equipment, and Investment Property
Intangible assets, property, plant and equipment, and investment property totaled €3.53 billion as per the reporting date (2010: €3.06 billion). Depreciation and amortization reduced fixed assets by €459.6 million (2010: €417.2 million), while impairments led to a decrease of €41.4 million. In contrast, investment spending increased fixed assets by €981.2 million (2010: €613.9 million). This strong increase is primarily the result of capital expenditures in the new polysilicon facilities at Nünchritz, and in the new polysilicon site in Charleston, Tennessee, scheduled for completion in 2013. Exchange-rate effects of €46.6 million increased fixed assets.
Investments in Joint Ventures and Associates Accounted for Using the Equity Method
The carrying amount of investments in joint ventures and associates accounted for using the equity method changed to €124.5 million (2010: €111.7 million), as a result of capital increases and generated earnings. The net result from investments in joint ventures and associates was €7.7 million (2010: €-38.0 million).
Noncurrent Financial Assets and Securities
In 2011, WACKER continued to invest part of its liquidity in securities. In the third quarter, some of these funds were invested in long and short-term securities allocated to an institutional investment fund. The funds will be available for future investment activity. Our portfolio additionally includes securities of various bond issuers with terms of over 12 months. The value of these noncurrent securities holdings was €162.5 million as per the reporting date (2010: €210.8 million). The other noncurrent assets amount to €176.8 million (2010: €164.7 million). They include loans to associated companies totaling €130.0 million (2010: €88.8 million) and tax receivables and deferred tax assets of €22.5 million (2010: €26.2 million).
Current assets increased over their 2010 level due to higher inventories and increased liquidity. They rose €287.4 million to €2.24 billion (2010: €1.95 billion), an increase of 15 percent. As of year-end 2011, inventories were much higher than a year earlier, coming in at €713.7 million (2010: €530.7 million). The rise was due to strong business and production volumes, and inventory build-up for silicon metal. At €566.1 million, trade receivables declined year over year (2010: €596.0 million). As in the previous year, inventories and trade receivables together made up about 20 percent of total assets at the reporting date.
Other current assets were also higher than in 2010, rising €134.3 million to €961.2 million (2010: €826.9 million) – a 16-percent increase. The total included current securities of €237.2 million, consisting of the fund investment we undertook in the third quarter and the reclassification of securities from noncurrent to current. These liquid reserves will be available for use in long-term investment projects. Cash and cash equivalents amounted to €473.9 million at year-end 2011 (2010: €545.2 million). Other current assets primarily include derivatives for foreign exchange hedging of €16.9 million (2010: €22.6 million), investment-grant receivables of €38.1 million (2010: €68.9 million) and tax receivables of €117.3 million (2010: €87.1 million).