Current and Noncurrent Assets
Noncurrent assets rose to €4.37 billion, up €376.7 million or 9 percent (2011: €4.00 billion). The share of noncurrent assets within total assets increased to 69 percent (2011: 64 percent). Conversely, current assets fell from €2.24 billion to €1.96 billion, down 13 percent from a year earlier. The share of total assets represented by current assets was 31 percent (2011: 36 percent). Higher investment spending, and the associated reduction in noncurrent and current liquidity, left their mark on the assets side of the balance sheet in 2012.
Intangible Assets, Property, Plant and Equipment, and Investment Property
Intangible assets, property, plant and equipment, and investment property totaled €3.95 billion as of the reporting date (2011: €3.53 billion). Depreciation reduced fixed assets by €526.3 million (2011: €459.6 million). In 2012, impairment losses amounted to €2.5 million (2011: €41.4 million). Investments increased fixed assets by €977.3 million (2011: €927.9 million). Most of these capital expenditures increased spending went into the Tennessee production site, where the original end-of-2013 completion date was extended to mid-2015. With this rescheduling, WACKER has aligned its polysilicon-capacity plans with customer demand. WACKER POLYSILICON invested a total of €698.1 million. Additional investments funded the expansion of business at WACKER SILICONES, WACKER POLYMERS and Siltronic. WACKER invested a total of €301.1 million within Germany (2011: €553.8 million) and €676.2 million abroad (2011: €374.1 million).
Investments in Joint Ventures and Associates Accounted for Using the Equity Method
Investments in joint ventures and associates accounted for using the equity method fell from €124.5 million at the end of 2011 to €41.0 million. The lower transfer prices for siloxane purchased from our associated company with Dow Corning has reduced cash inflows. WACKER therefore tested its 25-percent interest in the company for impairment and, on the basis of these reduced cash inflows, recognized an impairment of €77.0 million on its carrying amount. The net current result from investments in joint ventures and associates was €-5.6 million (2011: €-7.7 million).
Noncurrent Financial Assets and Securities
Other noncurrent assets rose 13 percent to €381.8 million (2011: €339.3 million). They include loans to joint ventures and associates totaling €256.2 million (2011: €130.0 million). In 2012, the financing of the associated company with Dow Corning for producing siloxane was revised to replace outside borrowing with shareholder loans. WACKER’s share of these loans amounted to €87.8 million. To expand 300 mm production, we funded our joint venture with Samsung with additional scheduled shareholder loans. WACKER invests part of its liquidity in long and short-term securities. These funds are available for future investment activity. As of the reporting date, WACKER held securities with maturities exceeding 12 months either directly or through an investment fund. The value of these securities was €61.1 million (2011: €162.5 million). As of December 31, 2012, noncurrent tax receivables and deferred tax assets amounted to €37.8 million (2011: €22.5 million).
Current assets declined 13 percent from the prior-year figure and amounted to €1.96 billion (2011: €2.24 billion). Liquidity was lower, mainly due to increased capital expenditures. Operating assets consisting of inventories were stable, while trade receivables rose slightly. As of year-end 2012, inventories were €712.1 million (2011: €713.7 million), with trade receivables at €600.2 million (2011: €566.1 million). The share of total assets represented by inventories and trade receivables together was unchanged from the previous year at about 20 percent.
Other current assets fell to €644.9 million, down 33 percent from a year earlier (2011: €961.2 million). This was caused in large part by the change in cash and cash equivalents, which were 59 percent lower than a year ago, falling from €473.9 million to €192.6 million at year-end 2012. The cash was mainly used to fund ongoing investment projects in 2012. Current securities with maturities of more than 3 months were constant at €243.0 million (2011: €237.2 million). Other current assets additionally include tax receivables of €90.8 million (2011: €117.3 million) and derivatives for foreign-exchange hedging of €8.5 million (2011: €16.9 million).