Philips 2014 Annual Report Download - page 131

5Group nancial statements 12.9
Annual Report 2014 131
Divestments
Apart from the divestment of the Lifestyle Entertainment
activities described in note 3, Discontinued operations
and other assets classied as held for sale , Philips
completed two other divestments of business activities
during 2014, which related to Healthcare and Lighting
activities. The two transactions involved an aggregate
consideration of EUR 43 million.
2013
There were four acquisitions in 2013. These acquisitions
involved an aggregated purchase price of EUR 10 million.
Philips completed five divestments of business activities
during 2013, mainly related to certain Healthcare service
activities. The transactions involved an aggregate
consideration of EUR 99 million.
5Interests in entities
In this section we discuss the nature of, and risks associated
with, the Company’s interests in its consolidated entities and
associates, and the effects of those interests on the
Company’s financial position and financial performance.
Interests in entities relates to:
• Interests in subsidiaries
• Investments in associates
Interests in subsidiaries
Wholly owned subsidiaries
The Group financial statements comprise the assets and
liabilities of approximately 400 legal entities. Set out below
is a list of material subsidiaries representing greater than 5%
of either the consolidated group sales, income from
operations or net income (before any intra-group
eliminations). All of the entities are 100% owned and have
been for the last 3 years.
Philips Group
Interests in materially wholly owned subsidiaries
in alphabetical order
2014
Legal entity name
Principal country
of business
Invivo Corporation United States
Philips (China) Investment Company, Ltd. China
Philips Consumer Lifestyle B.V. Netherlands
Philips Domestic Appliances and Personal Care Co China
Philips Electronics China B.V. Netherlands
Philips Electronics Japan, Ltd. Japan
Philips Electronics North America Corporation United States
Philips Electronics UK Limited United Kingdom
Philips GmbH Germany
Philips Lighting Poland S.A. Poland
Philips Lumileds Lighting Company Sdn. Bhd. Malaysia
Philips Medical Systems Technologies Ltd. Israel
Philips Nederland B.V. Netherlands
Philips Oral Healthcare, Inc. United States
Philips Respironics GK Japan
Philips Societa per Azioni Italy
Philips Ultrasound, Inc. United States
RI Finance, Inc. United States
RIC Investments, LLC United States
Not wholly owned subsidiaries
In total, 21 consolidated subsidiaries are not wholly
owned by the Company. Among the consolidated legal
entities is Philips Lighting Saudi Arabia created after the
acquisition of General Lighting Company (GLC) where
the Company owns 51% of the voting power. GLC was
acquired on September 2, 2014. The Company controls
this entity. The sales, income from operations and net
income of this entity is less than 1% of the consolidated
nancial data. The non-controlling interest of 49%
represents an amount of EUR 86 million as per
December 31, 2014. The non-controlling interest related
to GLC at the acquisition date was measured at the
holders’ proportionate interest in the recognized
amount of the identiable net assets, which means that
goodwill recognized by Philips in this transaction
relates only to the 51% interest acquired.
Also among the consolidated legal entities is Philips
India Limited where the Company owns 96% of the
voting power. The non-controlling interest of 4%
represents an amount of EUR 8 million as per December
31, 2014.
The sales, income from operations and net income of
the remaining not wholly owned subsidiaries (before
any intra-group eliminations) are less than 3% of the
consolidated nancial data of the Company and are
therefore not considered material.
Investments in associates
Philips has investments in a number of associates, none
of them are regarded as individually material.