Philips 2007 Annual Report Download - page 143

Philips Annual Report 2007 149
Lifeline
On March 22, 2006, Philips completed its acquisition of Lifeline,
a provider of personal emergency response services. Philips acquired
a 100% interest in Lifeline by paying USD 47.75 per share in cash.
As of the date of acquisition, Lifeline has been consolidated, as part
of Consumer
Healthcare Solutions, within the Innovation & Emerging
Businesses sector.
The following table summarizes the fair value of Lifeline’s assets
and liabilities acquired on March 22, 2006:
March 22, 2006
Total purchase price (net of cash) 583
Allocated to:
Property, plant and equipment 20
Other non-current nancial assets 19
Working capital 8
Deferred tax liabilities (124)
Intangible assets 319
Goodwill 341
583
Intangible assets comprise:
amount
amortization
period in
years
Trademarks and
trade names 114 indenite
Software 9 3-5
Customer relationships 196 5-20
319
Witt Biomedical
On April 26, 2006, Philips completed its acquisition of Witt Biomedical,
the largest independent supplier of hemodynamic monitoring and
clinical reporting systems used in cardiology catheterization laboratories.
As of the date of aquisition, Witt Biomedical has been consolidated
within the Medical Systems sector. Goodwill on this acquisition is
tax-deductible.
The following table summarizes the fair value of Witt Biomedical’s
assets and liabilities acquired on April 26, 2006:
April 26, 2006
Total purchase price (net of cash) 110
Allocated to:
Property, plant and equipment 1
Working capital 10
Deferred tax 4
Provisions (24)
Intangible assets 25
In-process R&D 4
Goodwill 90
110
Intangible assets comprise:
amount
amortization
period in
years
Backlog 7 1
Developed and core technology 11 4
Customer relationships and patents 6 10
Other 1 3
25
Avent
As of August 31, 2006, Philips completed its acquisition of Avent,
a provider of baby and infant feeding products in the United Kingdom
and the United States. Philips acquired Avent for EUR 689 million,
which was paid in cash upon completion of the transaction.
As of the date of acquisition Avent has been consolidated within
the Domestic Appliances and Personal Care sector.
The following table summarizes the fair value of Avent’s assets
and liabilities acquired on August 31, 2006:
August 31, 2006
Total purchase price (net of cash) 689
Allocated to:
Property, plant and equipment 35
Working capital 40
Deferred tax liabilities (122)
Intangible assets 392
Goodwill 344
689
Intangible assets comprise:
amount
amortization
period
in years
Trademarks and trade names 242 indenite
Customer relationships and patents 150 5-18
392
Intermagnetics
On November 9, 2006, Philips acquired Intermagnetics for USD 27.50
per share, which was paid in cash upon completion. Additionally, in
connection with the closing, Philips provided a loan to Intermagnetics
of approximately USD 120 million to pay off debt and certain other
obligations, including amounts related to the acceleration of stock-
based compensation and expenses incurred as a result of the
transaction. Since the date of acquisition, Intermagnetics has been
consolidated within the Medical Systems sector.
Group nancial statements
Notes to the group nancial statements
Company nancial statements 250 Corporate governance246 Reconciliation of
non-US GAAP information 258 The Philips Group in the last ten years 260
Investor information