Philips 2012 Annual Report Download - page 145

12 Group financial statements 12.11 - 12.11
Annual Report 2012 145
2010 2011 2012
Sales 3,132 2,702 563
Costs and expenses (3,148) (2,913) (622)
Expected loss on sale of discontinued
operations − (380) 5
Income (loss) before taxes (16) (591) (54)
Income taxes (10) 76 23
Operational income tax (10) 49 28
Income tax on loss on sale of discontinued
operations − 27 (5)
Results from discontinued operations (26) (515) (31)
The following table presents the assets and liabilities of the Television
business, classified as held for sale and liabilities directly associated with
assets held for sale in the Consolidated balance sheets at December
31, 2011.
In the 2012 column the divested assets and liabilities are presented.
2011 20121)
Property, plant and equipment 46 91
Intangible assets including goodwill 44 −
Write down to fair value less costs to sell (90) −
Inventories 175 124
Other assets 26 25
Assets classified as held for sale 201 240
Provisions (7) (6)
Liabilities directly associated with assets held for sale (7) (6)
1) At fair value transferred assets
Non-transferrable balance sheet positions, such as accounts receivable,
accounts payable and restructuring and warranty provisions are
reported on the respective balance sheet captions.
For further information see notes, note 20, Provisions and note 24,
Contractual obligations.
Other assets classified as held for sale
Assets and liabilities directly associated with assets held for sale relate
to property, plant and equipment for an amount of EUR 1 million
(December 31, 2011 EUR 269 million) and business divestments of EUR
15 million at December 31 2012 (December 31, 2011 EUR 27 million).
On March 29, 2012, Philips announced the completion of the High Tech
Campus transaction with proceeds of EUR 425 million, consisting of a
EUR 373 million cash transaction and an amount of EUR 52 million that
will be received in future years. The gain from the transaction, after
deducting expenses related to other real estate efficiency measures
which are part of the EUR 800 million cost reduction program
announced in 2011, will be EUR 65 million, EUR 37 million of which
was recognized in the first quarter of 2012 in income from operations
while EUR 28 million was deferred to future periods and is recognized
periodically starting as of April 2012. The deferral of the gain relates to
the finance lease element in the sale and lease-back arrangement part
of the deal.
In 2012, Philips divested several industrial sites in sector Lighting, the
Speech Processing business in Consumer Lifestyle and a minor service
activity in sector Healthcare. The transactions of the industrial sites
resulted in a loss of EUR 95 million, consisting of contributed assets,
which were not fully recovered leading to an EUR 14 million impairment
on property, plant and equipment and EUR 81 million loss reported in
other business expense as result on disposal of businesses. As part of
these divestments onerous supply agreements were signed, which
amount to EUR 60 million at December 31, 2012. The speech
Processing business resulted in a gain of EUR 21 million gain reported
in other business income as result on disposal of business.