Philips 2008 Annual Report Download - page 147

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.
Lifeline has been consolidated within the Healthcare sector.
The following table summarizes the fair value of Lifeline’s assets
and liabilities:
March 22, 2006
Total purchase price (net of cash) 583
Allocated to:
Property, plant and equipment 20
Other non-current financial 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 indefinite
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 Healthcare sector. Goodwill on this
acquisition is tax-deductible.
The following table summarizes the fair value of Witt Biomedical’s
assets and liabilities:
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 Consumer
Lifestyle sector.
The following table summarizes the fair value of Avent’s assets
and liabilities:
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 indefinite
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 Healthcare sector.
Philips Annual Report 2008 147
254
Corporate governance
250
Reconciliation of
non-US GAAP information
262
Ten-year overview
266
Investor information