Philips 2007 Annual Report Download - page 154

Philips Annual Report 2007160
12
Other non-current nancial assets
The changes during 2007 are as follows:
available-
for-sale
securities
restricted
liquid
assets
cost-
method
invest-
ments other total
Balance as of
January 1, 2007 6,529 200 1,043 283 8,055
Changes:
Reclassications 19 − (19) − −
Acquisitions/
additions 15 11 5 34 65
Sales/
redemptions/
reductions (4,180) (109) − (25) (4,314)
Value
adjustments (607) − − 8 (599)
Translation and
exchange
differences − (1) (2) (21) (24)
Balance as of
December 31,
2007 1,776 101 1,027 279 3,183
Investments in available-for-sale securities
The Company’s investments in available-for-sale securities consist
of investments in shares of companies in various industries.
Major holdings in available-for-sale securities at December 31:
2006 2007
number of
shares fair value
number of
shares fair value
D&M Holdings 11,126,640 32 11,126,640 32
TSMC
4,066,046,793 6,395 1,311,490,224 1,699
6,427 1,731
During 2007, the Company further reduced its shareholding portfolio
of available-for-sale securities.
On March 12, 2007, Philips and TSMC jointly announced that the
companies agreed to a multi-phased plan to facilitate an orderly exit
by Philips from its shareholding in TSMC. The plan comprised a private
sale transaction to long-term nancial investors in Taiwan, the offering
of shares through a public offering in the United States (in the form of
American Depositary Shares) and the participation in stock repurchase
programs initiated by TSMC. As a consequence Philips disposed of
EUR 2,755 million TSMC shares and realized an aggregate gain of
EUR 2,528 million, which was presented under Financial income and
expense. As of December 31, 2007, Philips owns 4.96% of TSMC ‘s
share capital with a current market value of EUR 1,699 million.
On May 17, 2007, Philips sold its remaining stake of approximately
2.5% (4,914,875 common shares) of the issued share capital in
US-based JDS Uniphase. On September 14, 2007, Philips sold its
stake of approximately 2.5% (4,587,333 common shares) in US-based
Nuance Communications. The results on these transactions were
recognized under Financial income and expenses.
Included in other non-current nancial assets is a convertible bond
issued to the Company by TPV with a total fair value of EUR 190
million as at December 31, 2007. The bond has a maturity date of
September 5, 2010, with an option to convert the bond into shares
of TPV during the period September 5, 2008 until maturity.
Cost-method investments
The major cost-method investment is NXP, for an amount of EUR 854
million, of which the Company holds 19.9% of the cumulative preferred
shares and 17.5% of the common shares. The interest in NXP resulted
from the sale of a majority stake in the Semiconductors division in
September 2006. The Company performed an impairment review on
the cost of the investment in NXP and concluded that no impairment
needs to be recognized at December 31, 2007.
In June 2006, the merger of MDS with Toppoly was completed. As a
consequence of the transaction, Philips holds a 17.4% stake in TPO,
valued at amortized cost of EUR 103 million, net of an impairment
of EUR 77 million.
13
Non-current receivables
Non-current receivables include receivables with a remaining term of
more than one year, and the non-current portion of income taxes
receivable amounting to EUR 14 million (2006: EUR 25 million).
14
Other non-current assets
Other non-current assets in 2007 are comprised of prepaid pension
costs of EUR 2,703 million (2006: EUR 2,262 million), deferred tax
assets of EUR 971 million (2006: EUR 1,138 million) and prepaid
expenses of EUR 52 million (2006: EUR 47 million).
128 Group nancial statements
Notes to the group nancial statements
188 IFRS information 240 Company nancial statements