Philips 2013 Annual Report Download - page 193

12 Company financial statements 12.4 - 12.4 A B C
Annual Report 2013 193
12.4 Notes
All amounts in millions of euros unless otherwise stated
Notes to the Company financial statements
AIntangible assets
Intangible assets includes mainly licenses and patents. The changes
during 2013 are as follows;
intangible assets
Balance as of January 1, 2013:
Cost 55
Amortization/ impairments (46)
Book value 9
Changes in book value:
Reclassifications 7
Additions 41
Amortization (2)
Total changes 46
Balance as of December 31, 2013:
Cost 67
Amortization/ impairments (12)
Book value 55
BFinancial fixed assets
The investments in group companies and associates are presented as
financial fixed assets in the balance sheet using the equity method.
Goodwill paid upon acquisition of investments in group companies or
associates is included in the net equity value of the investment and is not
shown separately on the face of the balance sheet.
Loans are provided to group companies and associates and are stated at
amortized cost, less impairment.
investments
in group
companies
investments
in associates loans total
Balance as of
January 1, 2013 10,407 87 6,103 16,597
Changes:
Reclassification − (3) − (3)
Acquisitions/
additions 2,632 − 529 3,161
Sales/redemptions (131) (2) (524) (657)
Net income from
affiliated companies 1,309 (8) − 1,301
Dividends received (340) − − (340)
Translation
dierences (458) (3) (235) (696)
Other 172 − − 172
Balance as of
December 31, 2013 13,591 71 5,873 19,535
A list of investments in group companies, prepared in accordance with the
relevant legal requirements (Dutch Civil Code, Book 2, Sections 379 and
414), is deposited at the Chamber of Commerce in Eindhoven, The
Netherlands.
In December 2013, investments in group companies increased by EUR 2,111
million due to the purchase of 25% of a group company which was
previously owned by another group company. This transaction was
executed in view of our continued eort to restructure and optimize our
foreign based intra-group finance activities. In addition, investments in
group companies also increased by EUR 517 million as a result of capital
injections. These transactions reflect most of the increase in the line
Acquisitions/additions.
COther non-current financial assets
available-
for-sale
financial
assets
loans and
receivables
financial
assets at
fair value
through
profit and
loss total
Balance as of January
1, 2013 84 221 20 325
Changes:
Reclassifications 3 − − 3
Acquisitions/
additions 9 − − 9
Sales/redemptions/
reductions − (1) − (1)
Impairments (7) (1) − (8)
Transfer to assets
classified as held for
sale (15) (30) − (45)
Value adjustments 12 1 (13) −
Balance as of
December 31, 2013 86 190 7 283
Available-for-sale financial assets
The Company’s investments in available-for-sale financial assets mainly
consist of investments in common stock of companies in various
industries. An amount of EUR 15 million has been reclassified to assets
held for sale in relation to the agreed contribution to the Philips Pension
Fund (please refer to note 30, Post-employment benefits and note 36,
Subsequent events).
Loans and receivables
During 2013 loans with face value EUR 30 million were transferred to
assets held for sale in relation to the agreed contribution to the Philips
Pension Fund (please refer to note 30, Post-employment benefits and
note 36, Subsequent events).
Financial assets at fair value through profit and loss
Included in this category are certain financial instruments that Philips
received in exchange for the transfer of its television activities. The initial
value of EUR 17 million was adjusted by EUR 11 million during 2012 and EUR
6 million in 2013 reported under Value adjustments. As of December 31,
2013 the fair value reported was nil. For more information please refer to
note 36, Subsequent events.
In 2010, Philips sold its entire holding of common shares in NXP
Semiconductors B.V. (NXP) to Philips Pension Trustees Limited (herein
referred to as “UK Pension Fund”). As a result of this transaction the UK
Pension Fund obtained the full legal title and ownership of the NXP
shares, including the entitlement to any future dividends and the proceeds
from any sale of shares. From the date of the transaction the NXP shares
became an integral part of the plan assets of the UK Pension Fund. The
purchase agreement with the UK Pension Fund includes an arrangement
that may entitle Philips to a cash payment from the UK Pension Fund on or
after September 7, 2014, if the total value yielded by the NXP shares has
increased by this date to a level in excess of a predetermined threshold,
which at the time of the transaction was substantially above the
transaction price, and the UK Pension Fund is in a surplus (on a swaps
basis) on September 7, 2014. The arrangement qualifies as a financial
instrument and is reported under Other non-current financial assets. The
Trustees of the UK Pension Fund have been selling the NXP shares in a
number of transactions since 2010. The remaining number of NXP shares
were sold in the course of 2013 and the total sale proceeds of the NXP
shares exceeded the predetermined threshold. However, as of December