Philips 2014 Annual Report Download - page 227

Reconciliation of non-GAAP information 15
Annual Report 2014 227
Net Operating Capital (NOC)
The Company believes that an understanding of the Philips Group’s nancial condition is enhanced by the disclosure
of net operating capital (NOC), as this gure is used by Philips’ management to evaluate the capital eciency of the
Philips Group and its operating sectors. NOC is dened as: total assets excluding assets classied as held for sale less:
(a) cash and cash equivalents, (b) deferred tax assets, (c) other non-current nancial assets and current nancial assets,
(d) investments in associates, and after deduction of: (e) provisions, (f) accounts and notes payable, (g) accrued liabilities,
(h) other non-current liabilities and other current liabilities.
Philips Group
Net operating capital to total assets in millions of EUR
2012 - 2014
Philips Group Healthcare
Consumer
Lifestyle Lighting
Innovation,
Group & Services
2014
Net operating capital (NOC) 8,838 7,565 1,353 3,638 (3,718)
Exclude liabilities comprised in NOC:
- payables/liabilities 9,379 2,711 1,411 1,422 3,835
- intercompany accounts – 125 65 129 (319)
- provisions 3,445 793 220 530 1,902
Include assets not comprised in NOC:
- investments in associates 157 80 – 20 57
- current nancial assets 125 – – – 125
- other non-current nancial assets 462 – – – 462
- deferred tax assets 2,460 – – – 2,460
- cash and cash equivalents 1,873 – – – 1,873
Total assets excluding assets classied as held for
sale 26,739 11,274 3,049 5,739 6,677
Assets classied as held for sale 1,613
Total assets 28,352
2013
Net operating capital (NOC) 10,238 7,437 1,261 4,462 (2,922)
Exclude liabilities comprised in NOC:
- payables/liabilities 8,453 2,541 1,275 1,672 2,965
- intercompany accounts – 124 75 105 (304)
- provisions 2,554 278 221 452 1,603
Include assets not comprised in NOC:
- investments in associates 161 85 – 20 56
- current nancial assets 10 – – – 10
- other non-current nancial assets 496 – – – 496
- deferred tax assets 1,675 – – – 1,675
- cash and cash equivalents 2,465 – – – 2,465
Total assets excluding assets classied as held for
sale 26,052 10,465 2,832 6,711 6,044
Assets classied as held for sale 507
Total assets 26,559
2012
Net operating capital (NOC) 9,316 7,976 1,205 4,635 (4,500)
Exclude liabilities comprised in NOC:
- payables/ liabilities 10,287 2,760 1,718 1,695 4,114
- intercompany accounts – 71 42 37 (150)
- provisions 2,956 355 315 581 1,705
Include assets not comprised in NOC:
- investments in associates 177 86 – 22 69
- other non-current nancial assets 549 – – – 549
- deferred tax assets 1,919 – – – 1,919
- cash and cash equivalents 3,834 – – – 3,834
Total assets excluding assets classied as held for
sale 29,038 11,248 3,280 6,970 7,540
Assets classied as held for sale 43
Total assets 29,081