Philips 2007 Annual Report Download - page 237

Philips Annual Report 2007 243
Notes to the Company nancial statements
all amounts in millions of euros unless otherwise stated
A
Receivables
2006 2007
Trade accounts receivable 138 169
Afliated companies 14,017 16,481
Other receivables 14 97
Advances and prepaid expenses 37 61
Deferred tax assets 53 65
Income tax receivable 2 −
Derivative instruments - assets 381 276
14,642 17,149
An amount of EUR 65 million included in receivables is due after
one year (2006: EUR 33 million).
B
Investments in afliated companies
The investments in afliated companies are included in the balance
sheet based on either their net asset value in accordance with the
aforementioned accounting principles of the consolidated nancial
statements or at amortized cost.
equity
investments loans total
Balance as of
January 1, 2007 15,184 1,914 17,098
Changes:
Acquisitions/additions 493 2,200 2,693
Sales/redemptions (1,034) (1,417) (2,451)
After-tax income from
afliated companies 781 − 781
Dividends received (1,350) − (1,350)
Recapitalization 1,398 (1,398) −
Translation differences (837) (293) (1,130)
Balance as of
December 31, 2007 14,635 1,006 15,641
A list of subsidiaries and afliated companies, prepared in accordance
with the relevant legal requirements (Dutch Civil Code, Book 2,
Sections 379 and 414), is deposited at the ofce of the Commercial
Register in Eindhoven, Netherlands.
The item sales/redemptions mainly reects the reduction of Philips’
equity investment in LG.Philips LCD.
A
B
C
Other non-current nancial assets
investments
other
receivables total
Balance as of
January 1, 2007 7,514 12 7,526
Changes:
Acquisitions/additions 3 − 3
Sales/redemptions (4,180) (7) (4,187)
Value adjustments (607) − (607)
Balance as of
December 31, 2007 2,730 5 2,735
Other non-current nancial assets include available-for-sale securities
and cost method investments that generate income unrelated to the
normal business operations.
The item sales/redemptions reects the reduction of Philips’ interest
in TSMC and the sale of its stake in JDS Uniphase and Nuance.
D
Other current liabilities
2006 2007
Income tax payable 73 25
Other short-term liabilities 88 85
Deferred income and accrued expenses 314 227
Derivative instruments – liabilities 190 145
665 482
E
Short-term debt
Short-term debt includes the current portion of outstanding long-
term debt of EUR 1,840 million (2006: EUR 181 million) and debt
to other Group companies totaling EUR 19,193 million (2006: EUR
18,058 million). Institutional nancing amounts to EUR 66 million
(2006: EUR 115 million).
F
Provisions
2006 2007
Pensions 6 5
Deferred tax liabilities − 37
Other 53 12
Total provisions 59 54
of which long-term 18 49
of which short-term 41 5
C
D
E
F
Group nancial statements Company nancial statements
nancial statements
250 Corporate governance246 Reconciliation of
non-US GAAP information 258 The Philips Group in the last ten years 260
Investor information