Philips 2006 Annual Report Download - page 192

Philips Annual Report 2006192
The following table presents MDS assets and liabilities, classifi ed
as discontinued operations in the consolidated balance sheet at
December 31, 2005:
December 31,
2005
Accounts receivable 135
Inventories 37
Property, plant and equipment 9
Other assets 9
Assets of discontinued operations 190
Accounts and notes payable 114
Other liabilities 29
Liabilities of discontinued operations 143
39
Acquisitions and divestments
2006
During 2006, the Company entered into a number of acquisitions
and completed several disposals of activities. All business combinations
have been accounted for using the purchase method of accounting.
Major business combinations in 2006 relate to the acquisitions of
Lifeline, Witt Biomedical, Avent and Intermagnetics.
The remaining business combinations, both individually and in the
aggregate, were deemed immaterial in respect of the IFRS 3
disclosure requirements.
Sales and Income from operations related to activities divested in 2006,
included in the Company’s consolidated statement of income for 2006,
amounted to EUR 975 million and a loss of EUR 21 million, respectively.
The most signifi cant acquisitions and divestments are summarized in
the next two tables and described in the section below.
Acquisitions
cash
outfl ow
net
assets
acquired
1)
other
intangible
assets goodwill
Lifeline 583 (77 ) 319 341
Witt Biomedical 110 (2 ) 29 83
Avent 689 (47 ) 392 344
Intermagnetics 993 (32 ) 255 770
1) Excluding cash acquired
Divestments
cash
infl ow
net
assets
divested
recog-
nized gain
CryptoTec 30 4 26
Philips Enabling Technologies (ETG) 45
1) 38 7
Philips Sound Solutions (PSS) 53
1) 41 12
FEI 154 51
2) 103
1) Net of cash divested
2) Includes the release of cumulative translation differences
Lifeline
On March 22, 2006, Philips completed an acquisition of Lifeline, a leader
in personal emergency response services. Philips acquired a 100%
interest in Lifeline by offering USD 47.75 per share in cash. The
business is included in Consumer Healthcare Solutions, part of the
Domestic Appliances and Personal Care sector.
The condensed balance sheet of Lifeline determined in accordance
with IFRS, immediately before and after acquisition date:
before
acquisition date
after
acquisition date
Assets
Goodwill 15 341
Other intangible assets 18 319
Property, plant and equipment 34 20
Other non-current fi nancial assets 22 19
Working capital 27 8
Deferred tax liabilities (6 ) (124 )
Cash 17 14
127 597
Financed by
Group equity 84 597
Loans 43 −
127 597
Other intangible assets comprise:
amount
amortization
period in years
Trademarks and trade names 114 indefi nite
Software 9 3-5
Customer relationships 196 5-20
319
112 Group fi nancial statements 172 IFRS information
Notes to the IFRS fi nancial statements
218 Company fi nancial statements