Philips 2004 Annual Report Download - page 109
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2003
During 2003 the Company completed several disposals of businesses. Also a number of
acquisitions and ventures were completed. All business combinations have been accounted for
using the purchase method of accounting. However, both individually and in the aggregate these
business combinations were immaterial in respect of the SFAS No. 141 disclosure
requirements.
The effects of divested activities in 2003 had no material impact on sales and income from
operations.
The most significant acquisitions and divestments are summarized in the next two tables and
described in the section below.
Acquisitions
cash outflow net assets
acquired
other intangible
assets
goodwill
InterTrust Technology Corporation 202 35 156 11
Philips BenQ Digital Storage 5 5 – –
Arcadyan venture 6 6 – –
Divestments
cash inflow net assets
divested
recognized gain
Speech Processing Telephony and Voice Control 34 14 20
TSMC 908 213 695
InterTrust Technology Corporation
In January the Company acquired 49.5% of the 99.3 million shares of InterTrust Technology
Corporation at a price of USD 4.25 per share. The investment is accounted for using the equity
method.
InterTrust develops and licenses intellectual property for Digital Rights Management and
trusted computing.
Speech Processing Telephony and Voice Control
In January the Company completed the sale of its Speech Processing Telephony and Voice
Control businesses to Scansoft Inc. of Peabody, Mass., United States, at a price of EUR 34
million, resulting in a gain of EUR 20 million.
Sales and income from operations related to the activities divested in 2003 were not material.
Philips BenQ Digital Storage
In March, the Company acquired 51% of the shares of Philips BenQ Digital Storage at a price of
EUR 5 million. Philips consolidated the venture from March 2003 onwards. The remaining
shares are owned by BenQ.
Philips and BenQ Corporation Taipei, Taiwan, established the company to cooperate in the
areas of new optical standards, research, and particularly in the definition of product roadmaps,
product development, manufacturing of products, and customer support for optical storage
devices for data applications.
108 Philips Annual Report 2004
Financial statements of the Philips Group