Note 9 Other non-current assets

“Other non-current assets” consisted of the following:

(XLS:)

December 31, ($ in millions)

2011

2010

Pledged financial assets

286

293

Shares and participations

143

58

Derivatives (including embedded derivatives) (see Note 5)

105

184

Restricted cash

103

54

Loans granted (see Note 6)

52

56

Other

115

122

Total

804

767

The Company entered into tax-advantaged leasing transactions with U.S. investors prior to 1999. Cash deposits and held-to-maturity marketable securities (representing prepaid rents relating to these transactions) are reflected as “Pledged financial assets” in the table above, with an offsetting non-current deposit liability, which is included in “Other non-current liabilities” (see Note 13). Net gains on these transactions are being recognized over the lease terms, which expire by 2021.

“Shares and participations” represents mainly non equity-accounted investments in companies. Such shares and participations are principally carried at cost or, where the investee is listed on a stock exchange, at fair value (see Note 4).

“Restricted cash” in 2011 included cash set aside in a restricted bank account in connection with a capital reduction in two of the Company’s subsidiaries in order to meet certain future obligations in existence as of the date of the capital reduction. As such obligations are met, the amount of the restricted cash will be correspondingly reduced. The remaining balance at December 31, 2011, as well as the balance at December 31, 2010, contained individually insignificant amounts of restricted cash.

“Loans granted” in the table above primarily represents financing arrangements provided to customers (relating to products manufactured by the Company) and is reported in the balance sheet as outstanding principal amount less any write-offs or allowance for uncollectible loans. The Company determines the loan losses based on historical experience and ongoing credit evaluation of the borrower’s financial position. At December 31, 2011 and 2010, the doubtful debt allowance on loans granted was not significant. The change in such allowance during 2011 was also not significant.

Financial review

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