Philips 2009 Annual Report Download - page 174

Divestments
inflow of cash
and other
assets1)
net assets
divested
recognized
gain
Set-Top Boxes and
Connectivity Solutions 742) (32) 42
Philips Speech Recognition
Systems 653) (20) 45
1) Net of cash divested
2) Assets received in lieu of cost
3) Of which EUR 22 million cash
Genlyte
On January 22, 2008, Philips completed the purchase of all outstanding
shares of Genlyte, a leading manufacturer of lighting fixtures, controls
and related products for the commercial, industrial and residential
markets. Through this acquisition Philips established a solid platform for
further growth in the area of energy-saving and green lighting
technology. The acquisition created a leading position for Philips in the
North American luminaires market. Philips paid a total net cash
consideration of EUR 1,894 million. This amount included the cost of
331,627 shares previously acquired in August 2007, the pay-off of
certain debt and the settlement of outstanding stock options. The net
impact of the Genlyte acquisition on Philips’ net cash position in 2008,
excluding the pay-off of debt, was EUR 1,805 million. As of the
acquisition date, Genlyte is consolidated as part of the Lighting sector.
The condensed balance sheet of Genlyte, immediately before and after
the acquisition date:
before acquisition date1) after acquisition date
Assets and liabilities
Goodwill 254 1,024
Other intangible assets 102 860
Property, plant and
equipment 129 191
Working capital 134 160
Other current financial
assets − 3
Deferred tax liabilities (12) (300)
Provisions (18) (36)
Cash 57 57
646 1,959
Financed by
Group equity 568 1,951
Loans 78 8
646 1,959
1) Unaudited figures
The goodwill recognized is related to the complementary technological
expertise and talent of the Genlyte workforce and the synergies
expected to be achieved from integrating Genlyte into the Lighting
sector.
Other intangible assets are comprised of the following:
amount
amortization
period in years
Core technology and designs 81 1-8
In-process R&D 11 5
Group brands 142 2-14
Product brands 5 2-5
Customer relationships and patents 614 9-17
Order backlog 6 0.25
Software 1 3
860
For the period from January 22 to December 31, 2008, Genlyte
contributed EUR 1,024 million to Sales and EUR 34 million to Income
from operations.
Respironics
On March 10, 2008, Philips acquired 100% of the shares of Respironics,
a leading provider of innovative solutions for the global sleep and
respiratory markets. Respironics designs, develops, manufactures and
markets medical devices used primarily for patients suffering from
Obstructive Sleep Apnea (OSA) and respiratory disorders. The
acquisition of Respironics added new product categories in OSA and
home respiratory care to the existing Philips business. This acquisition
formed a solid foundation for the Home Healthcare Solutions business
of the Company. Philips acquired Respironics’ shares for a net cash
consideration of EUR 3,196 million. As of the acquisition date,
Respironics is consolidated as part of the Healthcare sector.
The condensed balance sheet of Respironics, immediately before and
after the acquisition date:
before acquisition date1) after acquisition date
Assets and liabilities
Goodwill 165 2,162
Other intangible assets 39 1,186
Property, plant and
equipment 123 137
Working capital 214 215
Other non-current
financial assets 11 10
Provisions (27) (27)
Deferred tax assets/
liabilities 35 (439)
Cash 135 135
695 3,379
Financed by
Group equity 647 3,331
Loans 48 48
695 3,379
1) Unaudited figures
The goodwill recognized is related to the complementary technical
skills and talent of the Respironics workforce and the synergies
expected to be achieved from integrating Respironics into the
Healthcare sector.
11 Group financial statements 11.12 - 11.12
174 Philips Annual Report 2009