Philips 2009 Annual Report Download - page 175

Other intangible assets are comprised of the following:
amount
amortization
period in years
Core technology 355 9-13
Developed non-core technology 21 4-7
In-process R&D 3 3
Trade name 72 6
Customer relationships 732 16-18
Other 3 1-3
1,186
For the period from March 10 to December 31, 2008, Respironics
contributed Sales of EUR 831 million and EUR 10 million to Income
from operations.
VISICU
On February 20, 2008, Philips acquired 100% of the shares of VISICU, a
leading IT company which develops remote patient monitoring systems.
The acquisition of VISICU will facilitate the creation of products to
provide increased clinical decision support to hospital staff, while
allowing them to monitor a greater number of critically ill patients.
Philips paid a total net cash consideration of EUR 198 million. As of the
acquisition date, VISICU is consolidated as part of the Healthcare
sector.
The condensed balance sheet of VISICU, immediately before and after
the acquisition date:
before acquisition date1) after acquisition date
Assets
Goodwill − 175
Other intangible assets − 33
Property, plant and
equipment 1 −
Working capital (2) (4)
Other non-current
financial assets 3 −
Deferred tax assets/
liabilities 7 (4)
Deferred revenue (25) (2)
Cash 74 74
58 272
Financed by
Group equity 58 272
1) Unaudited figures
The goodwill recognized is related to the complementary technological
skills and talent of VISICU’s workforce and the synergies expected to be
achieved from integrating VISICU into the Healthcare sector.
Other intangible assets comprise:
amount
amortization
period in years
Core technology 20 7
In-process R&D 4 3
Patents and trademarks 1 6
Customer relationships 5 2-15
Backlog 3 1-3
33
For the period from February 20 to December 31, 2008, VISICU
contributed EUR 10 million to Sales and a loss from operations of
EUR 13 million.
Pro forma disclosures on acquisitions
The following table presents the year-to-date unaudited pro-forma
results of Philips, assuming Genlyte, Respironics and VISICU had been
consolidated as of January 1, 2008:
Unaudited
January-December 2008
Philips Group
pro forma
adjustments1)
pro forma
Philips Group
Sales 26,385 230 26,615
Income from operations 54 (29) 25
Net income (loss) (91) (13) (104)
Loss per share - in euros (0.09) (0.10)
1) Pro forma adjustments include sales, income from operations and net income
from continuing operations of the acquired companies from January 1, 2008 to
the date of acquisition.
Set-Top Boxes and Connectivity Solutions
On April 21, 2008, Philips completed the sale of its Set-Top Boxes (STB)
and Connectivity Solutions (CS) activities to UK-based technology
provider Pace Micro Technology (Pace). Philips received 64.5 million
Pace shares, representing a 21.6% shareholding, with a market value of
EUR 74 million at that date. Philips recognized a gain on this transaction
of EUR 42 million which was recognized in Other business income. Two
days later, Philips reduced its interest to 17%. The Pace shares were
treated as available-for-sale financial assets and presented under Other
non-current financial assets. In April 2009, Philips sold all shares in Pace.
Philips Speech Recognition Systems
On September 28, 2008, Philips sold its speech recognition activities to
US-based Nuance Communications for EUR 65 million. Philips realized
a gain of EUR 45 million on this transaction which was recognized in
Other business income.
2007
During 2007, Philips entered into a number of acquisitions and
completed several disposals of activities.
Acquisitions in 2007 were primarily Partners in Lighting and Color
Kinetics. The remaining acquisitions, both individually and in the
aggregate, were deemed immaterial with respect to the IFRS 3
disclosure requirements.
Sales and Income from operations related to activities divested in 2007,
included in the Company’s Consolidated statement of income 2007,
amounted to EUR 262 million and a loss of EUR 39 million, respectively.
The most significant acquisitions and divestments are summarized in the
next two tables and described in the section below.
11 Group financial statements 11.12 - 11.12
Philips Annual Report 2009 175