Philips 2007 Annual Report Download - page 152

Philips Annual Report 2007158
2007
The voluntary support of social plans for employees impacted by
the bankruptcy of certain LG.Philips Displays activities amounted
to EUR 22 million.
2006
The voluntary support of social plans for employees impacted by
the bankruptcy of certain LG.Philips Displays activities amounted
to EUR 61 million.
2005
Investment impairment charges in 2005 related to LG.Philips Displays
and a few smaller investments. In December 2005, as a result of
various factors including lower demand and increased pricing pressures
for CRT’s, the Company concluded that its investment in LG.Philips
Displays was impaired. Accordingly, the Company wrote off the
remaining book value of the investment and recorded an impairment
charge of EUR 126 million. Additionally, the Company recognized
the accumulated foreign translation loss related to this investment
of approximately EUR 290 million.
The Company also fully provided for the existing guarantee of
EUR 42 million provided to LG.Philips Displays’ banks.
Investments in, and loans to, equity-accounted investees
The changes during 2007 are as follows:
loans investments total
Investment in equity-
accounted investees as
of January 1, 2007 5 2,969 2,974
Changes:
Acquisitions/additions − 10 10
Sales/repayments (4) (1,040) (1,044)
Share in income/value
adjustments − 271 271
Dividends received − (48) (48)
Translation and exchange
rate differences (1) (276) (277)
Investments in equity-
accounted investees as of
December 31, 2007 − 1,886 1,886
Included in investments is EUR 404 million (2006: EUR 741 million),
representing the excess of the Company’s investment over its
underlying equity in the net assets of equity-accounted investees.
The principal amount is EUR 393 million (2006: EUR 731 million)
for LG.Philips LCD.
The total carrying value of investments in, and loans to, equity-
accounted investees is summarized as follows:
2006 2007
share-
holding % amount
share-
holding % amount
LG.Philips LCD 32.9 2,625 19.9 1,607
Other equity-accounted
investees 349 279
2,974 1,886
The fair value of Philips’ shareholdings in the publicly listed company
LG.Philips LCD, based on quoted market prices at December 31, 2007
was EUR 2,556 million.
The investments in equity-accounted investees are mainly included
in the sector Group Management & Services.
Summarized information of equity-accounted investees
Summarized nancial information for the Company’s investments in
equity-accounted investees, on a combined basis, is presented below:
2005 2006 2007
Net sales 20,083 13,599 15,799
Income (loss) before taxes 2,269 (626) 1,304
Income taxes 117 187 (169)
Other income (loss) (94) (36) (1)
Net income (loss) 2,292 (475) 1,134
Total share in net income (loss) of
equity-accounted investees recognized
in the consolidated statements
of income 513 (180) 271
December 31
2006 2007
Current assets 4,758 6,380
Non-current assets 9,788 6,406
14,546 12,786
Current liabilities (4,188) (3,340)
Non-current liabilities (3,453) (2,429)
Net asset value 6,905 7,017
Investments in and loans to equity-accounted
investees included in the consolidated balance sheet 2,974 1,886
128 Group nancial statements
Notes to the group nancial statements
188 IFRS information 240 Company nancial statements