Philips 2005 Annual Report Download - page 202

Philips Annual Report 2005202
51
Intangible assets excluding goodwill
The changes during 2005 were as follows:
total
other
intangible
assets
product
development software
Balance as of
January 1, 2005:
Cost 4,142 1,254 2,146 742
Accumulated
amortization (1,853) (573) (737) (543)
Book value 2,289 681 1,409 199
Changes in book
value:
Acquisitions/
additions 1,438 647 697 94
Amortization/
deductions (653) (133) (407) (113)
Impairment losses (60) − (60) −
Translation
differences 145 125 12 8
Changes in
consolidation 16 (1) 17 −
Total changes 886 638 259 (11)
Balance as of
December 31, 2005:
Cost 5,745 2,108 2,881 756
Accumulated
amortization (2,570) (789) (1,213) (568)
Book value 3,175 1,319 1,668 188
The estimated amortization expense for these other intangible assets
foreachofthevesucceedingyearsare:
2006 182
2007 164
2008 164
2009 160
2010 148
The additions relate to the following categories:
total
other
intangible
assets
product
development software
Additions from
internal development 756 −684 72
Additions acquired
separately 41 9 13 19
Additions acquired
through business
combinations 658 638 17 3
1,455 647 714 94
The unamortized costs of computer software to be sold, leased or
otherwise marketed amounted to EUR 50 million at the end of 2005
(2004: EUR 25 million). The amounts charged to the income statement
for amortization or impairment of these capitalized computer software
costs amounted to EUR 13 million (2004: EUR 6 million).
52
Goodwill
The changes during 2005 were as follows:
2005
Book value as of January 1, 2005 1,463
Changes in book value:
Acquisitions 651
Sale of businesses (32)
Impairment losses −
Reclassicationfromunconsolidatedcompanies 13
Translation differences 209
Book value as of December 31, 2005 2,304
Goodwill assigned to sectors
2004 2005
Medical Systems 1,165 1,457
DAP 92 106
Consumer Electronics 34 13
Lighting 60 596
Semiconductors 105 130
Other Activities −2
Unallocated 7 −
1,463 2,304
Acquisitions in 2005 include the goodwill paid on the acquisition of
Lumileds and Stentor for EUR 523 million and EUR 114 million respectively.
In 2004, Philips recognized impairment charges of EUR 588 million for
its MedQuist subsidiary in the US.
Acquisitions in 2004 represent the goodwill paid on the acquisitions of
Philips-Neusoft Medical Systems in China and Gemini Industries in the US.
IFRS information