Notes to the Consolidated Financial Statements

1. Basic information and principles of the report

2. Changes in Group structure

3. Summary of significant accounting policies

4. Risk assessment and management

5. Management of capital

6. Marketable securities

7. Trade accounts receivable

8. Other current assets and current financial assets

9. Inventories

10. Property, plant and equipment

11. Other non-current assets and non-current financial assets

12. Goodwill and intangible assets

13. Short-term debt

14. Other current provisions and liabilities

15. Long-term debt

16. Derivative financial instruments

17. Retirement benefit plans

18. Participation plans

19. Deferred tax assets and liabilities

20. Other non-current provisions and liabilities

21. Contingencies

22. Capital stock and treasury shares

23. Earnings per share

24. Other operating expenses, net

25. Financial result, net

26. Income tax expenses

27. Research and development expenditures

  2014 2013
Research and development expenses, gross 55.8 50.9
Capitalized development costs -5.9 -3.3
Amortization of capitalized development costs 0.2 0.0
Research and development expenses, net 50.1 47.6

Geberit spends around 2.6% of revenue from sales (around 2.3% of sales) on research and development (R&D) every year. The expenditure has remained relatively constant over the years.

In 2014, gross research and development costs totaling MCHF 55.8 (PY: MCHF 50.9) were charged directly to the income statement. The costs are included in the items “Personnel expenses”, “Depreciation” and “Other operating expenses, net”.

For three major development projects, the capitalization criteria according to IAS 38.57 were met and costs of MCHF 5.9 (PY: MCHF 3.3) were capitalized.

28. Cashflow figures

29. Segment reporting

30. Related party transactions

31. Foreign exchange rates

32. Subsequent events

33. Additional disclosures on financial instruments

34. Group companies as of December 31, 2014