Philips 2014 Annual Report Download - page 134

Group nancial statements 12.9 7
134 Annual Report 2014
impairment charges amounted to EUR 28 million,
including EUR 26 million as result of reduced growth
expectations in Consumer Luminaires, see note 11,
Goodwill.
Other business income (expenses)
Other business income (expenses) consists of the
following:
Philips Group
Other business income (expenses) in millions of EUR
2012 - 2014
2012 2013 2014
Result on disposal of businesses:
- income 9 50 7
- expense (84) (1) (2)
Result on disposal of xed assets:
- income 222 18 18
- expense (7) (13) (1)
Result on other remaining businesses:
- income 41 54 38
- expense (507) (21) (271)
Other business income (expenses) (326) 87 (211)
Total other business income 272 122 63
Total other business expense (598) (35) (274)
In 2014, result on disposal of businesses was mainly due
to divestment of non-strategic businesses. For further
information, see note 4, Acquisitions and divestments.
In 2014, result on disposal of xed assets was mainly
due to sale of real estate assets.
In 2014, result on other remaining businesses mainly
relates to certain parts of the Cathode Ray Tube
antitrust litigation as mentioned in note 26, Contingent
assets and liabilities for which the Company concluded
it was able to make a reliable estimate of the cash
outow or was able to reach a settlement with the
relevant plaintis.
7Financial income and expenses
Philips Group
Financial income and expenses in millions of EUR
2012 - 2014
2012 2013 2014
Interest income 37 54 39
Interest income from loans and
receivables 20 32 22
Interest income from cash and
cash equivalents 17 22 17
Dividend income from available for
sale nancial assets 4 5 4
Net gains from disposal of nancial
assets 1 – 60
Net change in fair value of nancial
liabilities at fair value through prot
or loss 44 – –
Other nancial income 20 11 11
Financial income 106 70 114
Interest expense (363) (323) (290)
Interest on debt and borrowings (271) (245) (224)
Finance charges under nance
lease contract (7) (7) (7)
Interest expenses - pensions (85) (71) (59)
Provision-related accretion and
interest (22) (25) (80)
Net foreign exchange losses – (6) (1)
Impairment loss of nancial assets (8) (10) (17)
Net change in fair value of nancial
assets at fair value through prot or
loss (2) (9) (6)
Net change in fair value of nancial
liabilities at fair value through prot
or loss – (3) (2)
Other nancial expenses (40) (24) (19)
Financial expense (435) (400) (415)
Financial income and expenses (329) (330) (301)
Net nancial income and expense showed a EUR 301
million expenses in 2014, which was 29 million lower
than in 2013. Interest expense in 2014 was EUR 33
million lower than in 2013, mainly as a result of lower
average outstanding debt and lower interest related to
pensions. The gain from disposal of nancial assets in
2014 amounted to EUR 60 million, mainly from Neusoft,
Chimei Innolux, Gilde III and Sapiens. The impairment
charges in 2014 amounted to EUR 17 million, mainly
from shareholdings in Chimei Innolux, Prime
Technology, Timesys and loans to Open Gate Capital.
Provision-related accretion and interest in 2014
primarily consisted of interest expense related to the
jury verdict in the Masimo litigation, and accretion
expense associated with other discounted provisions
and uncertain tax positions.
Interest expense in 2013 was EUR 40 million lower than
in 2012, mainly as a result of lower average outstanding
debt and lower interest related to pensions in 2013. In
2013 impairment charges amounted to EUR 10 million,
mainly from shareholdings in Lighting Science Group
and Gilde III.