Philips 2004 Annual Report Download - page 113

With a customer base of over 20,000 healthcare providers in the United States, the company
had annual revenues in excess of EUR 600 million in 2002.
Systemonic
On December 31, 2002 the Company completed the acquisition of Systemonic, a leading
developer of complete silicon system solutions. Systemonic has operations in the USA and
Germany. Based on a valuation completed in 2003, goodwill of EUR 28 million has been
recognized. In-process R&D that had no alternative future use amounting to EUR 8 million was
charged to income in 2002.
Marantz
Marantz is a leading branded manufacturer of premium home theatre and audio/video products
in which the Company had a 49% stake. In May 2002, Marantz and DENON, Ltd. merged
operations into D&M Holdings, Inc., maintaining the established Marantz and DENON brands.
After the merger, Philips’ share in D&M Holdings, Inc. is 14.7% and accordingly is no longer
accounted for under the equity method.
O
2Income from operations
For information related to sales and income from operations on a geographical and segmental
basis, see note 35.
Salaries and wages
2002 2003 2004
Salaries and wages 6,862 6,020 5,932
Pension costs 130 442 284
Other social security and similar charges:
- Required by law 995 851 769
- Voluntary 196 138 130
Total 8,183 7,451 7,115
See note 20 to the financial statements for further information on pension costs.
Employees
The average number of employees by category is summarized as follows:
2002 2003 2004
Production 105,897 92,605 88,408
Research & Development 22,877 21,213 20,406
Other 37,750 33,609 33,152
Permanent employees 166,524 147,427 141,966
Temporary employees 16,871 18,966 23,350
Total 183,395 166,393 165,316
Remuneration of the Board of Management and Supervisory Board
Please refer to note 33.
112 Philips Annual Report 2004
Financial statements of the Philips Group