Philips 2013 Annual Report Download - page 155

11 Group financial statements 11.9 - 11.9
Annual Report 2013 155
April 1, 2012
Property, plant and equipment 91
Intangible assets including goodwill −
Write down to fair value less costs to sell −
Inventories 124
Other assets 25
Assets classified as held for sale 240
Provisions (6)
Liabilities classified as held for sale (6)
Discontinued operations: Other
Certain results of other divestments formerly reported as discontinued
operations are included with a net gain of EUR 5 million in 2013 (2012: a
result of EUR nil million; 2011: a net gain of EUR 27 million).
Other assets classified as held for sale
On July 1, 2013, Philips announced to transfer certain assets and cash
proceeds from the sale of certain assets to the Dutch pension plan. In total
EUR 94 million of related assets are qualified as held for sale as of
December 31, 2013. EUR 92 million relates to other non-current financial
assets. For more details see note 30, Post-employment benefits.
Assets and liabilities directly associated with assets held for sale relate to
property, plant and equipment for an amount of EUR 13 million (December
31, 2012 EUR 1 million) and business divestments of EUR nil million at
December 31, 2013 (December 31, 2012 EUR 15 million).
In 2013, the Company divested two Healthcare businesses formerly
reported under Assets classified as held for sale. For more details see
note 9, Acquisitions and divestments.
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 to be
received after the deal. 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, of EUR 65
million, of which EUR 37 million 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 sector 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 a 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 amounted 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.