Philips 2007 Annual Report Download - page 44

Philips Annual Report 200750
hedging of obligations under the long-term employee
incentive and employee stock purchase programs, and
a total of EUR 2,367 million of share repurchases for
cancellation between July and December 2006. Offsetting
the cash outows in part was a net cash inow of
EUR 145 million due to the exercise of stock options.
Financing
The consolidated balance sheet for the years 2007, 2006
and 2005 is presented below:
Condensed consolidated balance sheet
in millions of euros
20051) 20061) 2007
Cash and cash equivalents 5,143 5,886 8,769
Receivables 8,874 9,651 9,500
Assets of discontinued operations 4,484 431 333
Inventories 2,797 2,880 3,203
Equity-accounted investees 5,338 2,974 1,886
Other non-current nancial assets 729 8,055 3,183
Property, plant and equipment 2,999 3,084 3,180
Intangible assets 3,541 5,536 6,289
Total assets 33,905 38,497 36,343
Accounts payable and other liabilities 8,433 8,129 7,799
Liabilities of discontinued operations 1,627 169 157
Provisions 2,634 3,293 3,104
Debt 4,487 3,869 3,557
Minority interests 58 40 42
Stockholders’ equity 16,666 22,997 21,684
Total liabilities and equity 33,905 38,497 36,343
1) Restated to present the MedQuist business as a discontinued operation.
Please refer to the consolidated balance sheets which are part of the chapter
Group nancial statements.
Cash and cash equivalents
In 2007, cash and cash equivalents from continuing
operations increased by EUR 2,883 million to EUR
8,769 million at year-end. Cash proceeds from divestments
amounted to EUR 5,745 million, including a net cash
inow of EUR 3,895 million as a result of the sale of
shares in TSMC and EUR 1,547 million for LG.Philips
LCD. The share buyback programs led to a cash outow
of EUR 1,609 million. There were further cash outows
for acquisitions of EUR 1,502 million, including EUR
561 million for Partners in Lighting International, EUR
515 million for the acquisition of Color Kinetics, EUR 94
million for Health Watch, EUR 55 million for TIR Systems,
EUR 77 million for Digital Lifestyle Outftitters and EUR
74 million for Raytel Cardiac Services. Furthermore, a
dividend of EUR 659 million was paid. Currency changes
during 2007 decreased cash and cash equivalents by
EUR 112 million.
In 2006, cash and cash equivalents from continuing
operations increased by EUR 743 million to EUR
5,886 million at year-end.
Cash proceeds from divestments amounted to
EUR 7,218 million, including a net cash inow of EUR
7,059 million as a result of the sale of a majority stake
in the Semiconductors division. The share buyback
programs led to a cash outow of EUR 2,899 million.
There were further cash outows for acquisitions of
EUR 2,498 million, including EUR 583 million for the
acquisition of Lifeline, EUR 689 million for Avent,
EUR 993 million for Intermagnetics and EUR 110 million
for Witt Biomedical. Furthermore, a dividend of EUR
523 million was paid. Currency changes during 2006
decreased cash and cash equivalents by EUR 197 million.
Debt position
Total debt outstanding at the end of 2007 was EUR 3,557
million, compared with EUR 3,869 million at the end of 2006.
Changes in debt
in millions of euros
20051) 20061) 2007
New borrowings 74 106 29
Repayments (398) (543) (310)
Consolidation and currency effects 298 (181) (31)
Total changes in debt (26) (618) (312)
1) Restated to present the MedQuist business as a discontinued operation
During the year, total debt decreased by EUR 312 million.
Philips repaid EUR 113 million of bank facilities; repayments
under capital leases were EUR 24 million and EUR
15 million resulted from reductions in other long-term
debt. Repayments under short-term debt totaled EUR
158 million. New borrowings totaled EUR 29 million.
Other changes resulting from consolidation and currency
effects led to a reduction of EUR 31 million.
In 2006, total debt decreased by EUR 618 million. Philips
repaid EUR 208 million in a scheduled bond repayment.
The remaining repayments consisted of bank facilities
of EUR 277 million, capital lease transactions of EUR
8 million and EUR 50 million resulting from reductions in
other debt. New borrowings of EUR 106 million included
EUR 97 million from increased short-term borrowings.
8 Financial highlights 10 Message from the President 16 The Philips Group
Liquidity and
capital resources
62 The Philips sectors