Philips 2004 Annual Report Download - page 112

Heat and Surface Treatment
The Company sold its Heat and Surface Treatment activities to Aalberts Industries of the
Netherlands in July.
X-ray Analytical
In September, the Company sold the major part of its X-ray Analytical business to Spectrics plc
of Egham, United Kingdom, a precision instrumentation and controls company, for EUR 150
million.
Philips Broadband Networks
In September, C-COR.net of State College, PA, United States, a global provider of broadband
communications technology systems and services, acquired Philips Broadband Networks for a
cash payment of approximately EUR 75 million.
Philips Medical Capital
Philips Medical Systems and Rabobank Group’s subsidiary De Lage Landen International set up a
venture to provide financing throughout the United States for the purchase of the full range of
diagnostic imaging equipment produced by Philips Medical Systems. The new venture is called
Philips Medical Capital and is based in Wayne, Pennsylvania (United States). De Lage Landen
owns a majority stake (60%) in the venture and has operational control. The venture became
operative in the fourth quarter of 2002.
The venture has been reviewed with respect to the consequences of FASB Interpretation No.
46 (R) ‘Consolidation of Variable Interest Entities’ in the first quarter of 2004. It was concluded
that the entity is a variable interest entity, however, it may not be consolidated because the
Company is not the primary beneficiary. Accordingly, equity accounting continued to be applied
during 2004.
Payer shavers
At the end of October, the Company concluded the sale of Payer Elektroprodukte to Hui
Holding Sdn. Bhd. of Malaysia. Payer Elektroprodukte is an Austria-based leading original
equipment manufacturer of electric foil shavers and was part of Philips’ DAP division.
Communication, Security and Imaging business
In October, the Company and Robert Bosch GmbH concluded the sale of Philips’ business unit
Communication, Security and Imaging.
Philips Contract Manufacturing Services
In November, the Company and Jabil Circuit Inc., a global leader in Electronic Manufacturing
Services, agreed on the sale of most of Philips Contract Manufacturing Services. In connection
with this transaction, the Company agreed to restructure four manufacturing operations. The
transaction resulted in cash inflows in 2002 of EUR 170 million, while in 2003 there were cash
outflows of EUR 53 million, related to restructuring costs provided for in 2002. A loss of
EUR 13 million, including a provision to restructure the above-mentioned operations, was
recorded on this transaction in 2002.
Health Care Products Group
At the end of November, the sale of the Health Care Products Group (HCP) to Platinum Equity
Holdings was concluded. HCP, part of Philips Medical Systems, was acquired as part of the
Marconi Medical Systems acquisition in 2001.
111Philips Annual Report 2004