Philips 2014 Annual Report Download - page 180

Company nancial statements 13.4 E F G
180 Annual Report 2014
EOther nancial assets
Other non-current nancial assets
The changes during 2014 were as follows:
Koninklijke Philips N.V.
Other non-current nancial assets in millions of EUR
2014
available
-for-sale
nancial
assets
loans and
receivables
nancial
assets at
fair value
through
prot and
loss total
Balance as of
January 1, 2014 86 190 7 283
Changes:
Reclassications 8 (121) – (113)
Acquisitions/
additions 10 60 – 70
Sales/
redemptions/
reductions (12) – – (12)
Impairments (4) – – (4)
Transfer to assets
classied as held
for sale (37) – – (37)
Value adjustments 45 4 (7) 42
Balance as of
December 31,
2014 96 133 – 229
Available-for-sale nancial assets
The Company’s investments in available-for-sale
nancial assets mainly consist of investments in
common stock of companies in various industries. An
amount of EUR 37 million has been reclassied to
assets held for sale in relation to the contribution
agreement between the Philips Pension Fund, Philips
and Dutch trade unions on July 1, 2013.
Loans and receivables
The reclassification line includes loans of EUR 121 million
transferred to Current financial assets (see below). The
acquisitions/additions line relates to a new loan of EUR 60
million issued to TPV Technology Limited.
Financial assets at fair value through prot and 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.
Current nancial assets
The amount of EUR 121 million 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.
FReceivables
Koninklijke Philips N.V.
Receivables in millions of EUR
2013 - 2014
2013 2014
Trade accounts receivable 80 105
Aliated companies 7,177 7,916
Other receivables 5 48
Advances and prepaid expenses 28 15
Derivative instruments - assets 210 385
Receivables 7,500 8,469
GShareholders’ equity
Common shares
As of December 31, 2014, the issued and fully paid share
capital consists of 934,819,413 common shares, each
share having a par value of EUR 0.20.
In June 2014, Philips settled a dividend of EUR 0.80 per
common share, representing a total value of EUR 729
million. Shareholders could elect for a cash dividend or
a share dividend. 60% of the shareholders elected for
a share dividend, resulting in the issuance of 18,811,534
new common shares. The settlement of the cash
dividend resulted in a payment of EUR 293 million
including tax and service charges.
The following table shows the movements in the
outstanding number of shares:
Koninklijke Philips N.V.
Outstanding number of shares in number of shares
2013 - 2014
2013 2014
Balance as of January 1 914,591,275 913,337,767
Dividend distributed 18,491,337 18,811,534
Purchase of treasury shares (27,811,356) (28,537,921)
Re-issuance of treasury shares 8,066,511 10,777,489
Balance as of December 31 913,337,767 914,388,869
Preference shares
The ‘Stichting Preferente Aandelen Philips’ has been granted
the right to acquire preference shares in the Company. Such
right has not been exercised. As a means to protect the
Company and its stakeholders against an unsolicited attempt
to (de facto) take over control of the Company, the General
Meeting of Shareholders in 1989 adopted amendments to
the Company’s articles of association that allow the Board
of Management and the Supervisory Board to issue (rights
to acquire) preference shares to a third-party. As of
December 31, 2014, no preference shares have been issued.
Option rights/restricted and performance
shares
The Company has granted stock options on its common
shares and rights to receive common shares in the
future. Please refer to note 28, Share-based
compensation, which is deemed incorporated and
repeated herein by reference.