Lenovo 2016 Annual Report Download - page 38

36 Lenovo Group Limited 2015/16 Annual Report
MANAGEMENT’S DISCUSSION & ANALYSIS
Interests in associates and joint ventures
Interests in associates and joint ventures are decreased by 12 percent mainly attributable to share of
losses from principal business activities of respective associates and joint ventures, and partly offset by
additional investments.
Deferred income tax assets
Deferred income tax assets amounted to US$1,001 million as at March 31, 2016, representing an increase
of 90 percent over last year. It is mainly attributable to tax losses and temporary differences in relation to
provisions and accruals arising from restructuring activities carried out during the year.
Available-for-sale financial assets
Available-for-sale financial assets are increased by 90 percent mainly attributable to additional investments
during the year.
Other non-current assets
Other non-current assets amounted to US$164 million as at March 31, 2016, representing an increase of
336 percent over last year, which is mainly attributable to the increase of indirect tax recoverable.
Current assets
2016
US$’000
2015
US$’000
Inventories 2,637,317 2,954,425
Trade receivables 4,403,507 5,217,740
Notes receivable 130,718 334,738
Derivative financial assets 27,021 184,534
Deposits, prepayments and other receivables 3,548,760 3,652,502
Income tax recoverable 140,237 136,857
Bank deposits 152,336 171,139
Cash and cash equivalents 1,926,880 2,855,223
12,966,776 15,507,158
Inventories
Inventories of the Group are decreased by 11 percent mainly attributable to the Group’s effort in working
capital management and one-time write off of smartphone inventories in relation to realignment of key
elements under Mobile Business Group.
Trade receivables and Notes receivable
Trade receivables and notes receivable decreased in line with business activities during the fourth quarter
of current year.
Derivative financial assets/liabilities
Derivatives relate to foreign currency forward contracts that are designated as hedges for the fair value
of recognized assets or liabilities or a firm commitment, or of highly probable forecast transactions.
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are
subsequently re-measured at their fair values.