Philips 2008 Annual Report Download - page 247

A list of subsidiaries and affiliated companies, prepared in accordance
with the relevant legal requirements (Dutch Civil Code, Book 2,
Sections 379 and 414), is deposited at the office of the Commercial
Register in Eindhoven, Netherlands.
The transfer to Other non-current financial assets mainly relates
to the financial interest in LG Display. At the end of February 2008,
Philips’ influence on LG Display’s operating and financial policies
including representation on the LG Display board, was reduced.
Consequently, the 19.9% investment in LG Display was transferred
from Investments in affiliated companies to Other non-current financial
assets effective March 1, 2008, as Philips was no longer able to exercise
significant influence. Philips ceased to apply equity accounting for its
LG Display shares as of that date.
The line Acquisitions/additions especially reflects the impact of equity
injections and intercompany funding provided by the Company to
US-based group companies. These transactions enabled the group
companies to finance the three major acquisitions in 2008 (Genlyte
group Inc., Respironics Inc. and VISICU Inc.).
The line Other especially reflects actuarial gains and losses related
to defined-benefit plans of group companies.
C
Other non-current financial assets
investments
other
receivables total
Balance as of
January 1, 2008 2,730 5 2,735
Changes:
Transferred from
Investments in affiliated
companies 1,524 −1,524
Acquisitions/additions 79 50 129
Sales/redemptions (2,515) −(2,515)
Value adjustments/
impairments (925) (2) (927)
Balance as of
December 31, 2008 893 53 946
Other non-current financial assets include available-for-sale securities
and cost method investments that generate income unrelated to the
normal business operations.
The transfer from investments in affiliated companies mainly relates
to the interest in LG Display (see note B).
Sales/redemptions reflect the reduction of Philips’ interest in TSMC,
LG Display and D&M Holdings.
Value adjustments/impairments mainly relate to the interests in
LG Display, TPO Displays, Pace Micro Technology and NXP.
Other current liabilities
D
2007 2008
Income tax payable 25 12
Other short-term liabilities 85 107
Deferred income and accrued expenses 227 209
Derivative instruments – liabilities 145 706
482 1,034
C
D
A
B
E
Short-term debt
Short-term debt includes the current portion of outstanding long-term
debt of EUR 126 million (2007: EUR 1,840 million) and debt to other
group companies totaling EUR 2,792 million (2007: EUR 19,193
million). Institutional financing amounts to EUR 61 million (2007:
EUR 66 million).
Debt to other group companies is significantly lower compared to
previous years as a result of the adoption of a new practice to clear
cash transactions with US-based subsidiaries (see note A for a further
explanation).
F
Provisions
2007 2008
Pensions 5 −
Deferred tax liabilities 37 48
Other 12 19
Total provisions 54 67
of which long-term 49 67
of which short-term 5 −
E
F
Philips Annual Report 2008 247
254
Corporate governance
250
Reconciliation of
non-US GAAP information
262
Ten-year overview
266
Investor information