Philips 2010 Annual Report Download - page 170

13 Group financial statements 13.11 - 13.11
170 Annual Report 2010
The condensed balance sheet of VISICU, immediately before and after
the acquisition date was as follows:
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 comprised of the following:
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 2008 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 three 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 the 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
the 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.