Philips 2009 Annual Report Download - page 176

Acquisitions
net cash
outflow
net assets
acquired1)
other intangible
assets goodwill
Partners in
Lighting 561 47 217 297
Color
Kinetics 515 (29) 187 357
1) Net of cash acquired
Divestments
cash inflow1)
net assets
divested2)
recognized
gain (loss)
LG Display 1,548 895 653
1) Net of cash divested
2) Includes the release of cumulative translation differences
Partners in Lighting (PLI)
On February 5, 2007, Philips acquired PLI, a leading European
manufacturer of home luminaires. Philips acquired 100% of the shares of
PLI from CVC Capital Partners, a private equity investment company, at
a net cash consideration of EUR 561 million paid upon completion of the
transaction. As of the date of acquisition, PLI is consolidated as part of
the Lighting sector.
The condensed balance sheet of PLI, immediately before and after
acquisition date:
before acquisition date1) after acquisition date
Assets and liabilities
Goodwill 293 297
Other intangible assets − 217
Property, plant and
equipment 76 97
Other non-current
financial assets
(liabilities) (30) 1
Working capital 75 114
Provisions − (14)
Deferred tax assets/
liabilities 8 (67)
Cash 23 23
445 668
Financed by
Group equity (46) 584
Loans 491 84
445 668
1) Unaudited figures
The goodwill recognized is related to the complementary technical
skills and talent of PLI’s workforce and the synergies expected to be
achieved from integrating PLI into the Lighting sector.
Other intangible assets comprise:
amount
amortization
period in years
Customer relationships and patents 156 20
Trademarks and trade names 61 20
217
For the period from February 5 to December 31, 2007, PLI contributed
EUR 407 million to Sales and EUR 24 million to Income from
operations.
Color Kinetics
On August 24, 2007, Philips completed the acquisition of 100% of the
shares of Color Kinetics, a leader in designing and marketing innovative
lighting systems based on Light Emitting Diode (LED) technology for a
net cash consideration of EUR 515 million. As of the date of acquisition,
Color Kinetics is consolidated as part of the Lighting sector.
The condensed balance sheet of Color Kinetics, immediately before and
after acquisition date:
before acquisition date1) after acquisition date
Assets and liabilities
Goodwill − 357
Other intangible assets − 187
Property, plant and
equipment 7 7
Working capital 10 16
Deferred tax liabilities − (52)
Cash 71 71
88 586
Financed by
Group equity 88 586
88 586
1) Unaudited figures
The goodwill recognized is related mainly to the complementary
expertise of the Color Kinetics workforce and the synergies expected
to be achieved from integrating Color Kinetics into the Lighting sector.
Other intangible assets comprise:
amount
amortization
period in years
Trademarks and trade names 1 1
Developed and core technology 113 10-20
In-process research and patents 1 0.5
Customer relationships 68 7-18
Other 4 2-10
187
For the period from August 24 to December 31, 2007, Color Kinetics
contributed Sales of EUR 25 million and a loss from operations of EUR 8
million.
11 Group financial statements 11.12 - 11.12
176 Philips Annual Report 2009