Philips 2014 Annual Report Download - page 145

14 15 16 Group nancial statements 12.9
Annual Report 2014 145
Loans and receivables
The reclassication line includes loans of EUR 121
million transferred to Current nancial assets (see
below). The acquisitions/additions line mainly relates
to a new loan of EUR 60 million issued to TPV
Technology Limited.
Financial assets at fair value through prot or loss
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”). The purchase agreement with the UK Pension
Fund included an arrangement that entitled Philips to
a cash payment from the UK Pension Fund on or after
September 7, 2014, if certain conditions were met. As of
December 31, 2013, management’s best estimate of the
fair value of the arrangement was EUR 7 million. At the
date of expiration on September 7, 2014 the
arrangement did not represent any value. The decline
in fair value in 2014 is reported under value adjustments
in the table above and also recognized in Financial
income and expense.
Current nancial assets
The amount of EUR 125 million mostly relates to loans
issued to TPV Technology Limited. These loans are due
in 2015 and have therefore been reclassied from non-
current to Current nancial assets.
14 Other assets
Other non-current assets
Other non-current assets in 2014 are comprised of
prepaid pension costs of EUR 2 million (2013: EUR 5
million) and prepaid expenses of EUR 67 million (2013:
EUR 58 million).
For further details see note 20, Post-employment
benets.
Other current assets
Other current assets include prepaid expenses of EUR
411 million (2013: EUR 354 million).
15 Inventories
Inventories are summarized as follows:
Philips Group
Inventories in millions of EUR
2013 - 2014
2013 2014
Raw materials and supplies 1,029 962
Work in process 375 481
Finished goods 1,836 1,871
Inventories 3,240 3,314
The balance as per December 31, 2014 excludes EUR
248 million of inventories associated with Lumileds and
Automotive businesses and classied as Assets held for
sale. For more details, please refer to note 3,
Discontinued operations and other assets classied as
held for sale.
The write-down of inventories to net realizable value
amounted in 2014 to EUR 217 million (2013: EUR 178
million). The write-down is included in cost of sales.
16 Receivables
Non-current receivables
Non-current receivables are associated mainly with
customer nancing in Healthcare and insurance
receivables in Innovation, Group & Services. The
balance as per December 31, 2014 includes an
allowance for doubtful accounts of EUR 2 million (2013:
EUR 7 million).
Current receivables
The accounts receivable, net, per sector are as follows:
Philips Group
Accounts receivables-net in millions of EUR
2013 - 2014
2013 2014
Healthcare 1,978 2,112
Consumer Lifestyle 743 791
Lighting 1,567 1,438
Innovation, Group & Services 132 135
Accounts receivable-net 4,420 4,476
The balance of Lighting accounts receivables as per
December 31, 2014 excludes EUR 274 million of account
receivables associated with Lumileds and Automotive
businesses and classied as Assets held for sale. For
more details, please refer to note 3, Discontinued
operations and other assets classied as held for sale.
The aging analysis of accounts receivable, net, is set out
below:
Philips Group
Aging analysis in millions of EUR
2013 - 2014
2013 2014
current 3,671 3,719
overdue 1-30 days 287 251
overdue 31-180 days 305 335
overdue > 180 days 157 171
Accounts receivable-net 4,420 4,476
The above net accounts receivable represent current
and overdue but not impaired receivables.