Philips 2015 Annual Report Download - page 126

Group nancial statements 12.9 4
126 Annual Report 2015
The following table summarizes the results of the
combined businesses of Lumileds and Automotive
included in the Consolidated statements of income as
discontinued operations.
Philips Group
Results of combined Lumileds and Automotive Lighting
businesses in millions of EUR
2013 - 2015
2013 2014 2015
Sales 1,268 1,416 1,619
Costs and expenses (1,134) (1,202) (1,320)
Income before taxes 134 214 299
Income tax expense (1) (73) (53)
Results from discontinued
operations 133 141 246
Upon disposal, the associated currency translation
dierences, part of Shareholders’ equity, will be
recognized in the Consolidated statement of income. At
December 31, 2015, the estimated release amounts to a
EUR 76 million gain.
The following table presents the assets and liabilities of
the combined Lumileds and Automotive business, as
Assets classied as held for sale and Liabilities directly
associated with assets classied as held for sale in the
Consolidated balance sheet as from 2014.
Philips Group
Assets and liabilities of combined Lumileds and Automotive
Lighting businesses in millions of EUR
2014- 2015
2014 2015
Property, plant and equipment 666 762
Intangible assets including goodwill 295 379
Inventories 248 285
Accounts receivable 278 314
Other assets 14 34
Assets classied as held for sale 1501 1,774
Accounts payable (134) (192)
Provisions (34) (39)
Other liabilities (149) (170)
Liabilities directly associated with
assets held for sale (317) (401)
Discontinued operations: Other
Certain results of other divestments, including the
Audio, Video, Multimedia & Accessories business and
the Television business, reported as discontinued
operations are included, with a net loss of EUR 1 million
in 2015 (2014: a net gain of EUR 49 million; 2013: a net
gain of EUR 5 million).
Other assets classied as held for sale
Assets and liabilities directly associated with assets
held for sale relate to property, plant and equipment for
an amount of EUR 1 million (December 31, 2014: EUR 23
million) and businesses net assets classied as held for
sale amounted to EUR 28 million at December 31, 2015
(December 31, 2014 EUR 19 million).
In 2015, property, plant and equipment divested assets
classied as held for sale amounted to EUR 43 million
with proceeds of EUR 88 million. Other non-current
nancial assets divested classied as held for sale
amounted to EUR 20 million with proceeds of EUR 20
million. Businesses divested net assets classied as
held for sale amounted to EUR 9 million. The
businesses divested had proceeds of EUR 59 million.
In 2014, property, plant and equipment divested assets
classied as held for sale amounted to EUR 17 million
with proceeds of EUR 19 million. Other non-current
nancial assets divested classied as held for sale
amounted to EUR 76 million with proceeds of EUR 76
million. Businesses divested net assets classied as
held for sale amounted to EUR 46 million. The
businesses divested had proceeds of EUR 45 million.
4Acquisitions and divestments
2015
Acquisitions
Philips completed four acquisitions in 2015. These
acquisitions involved an aggregated net cash outow
of EUR 1,116 million, with Volcano Corporation (Volcano)
being the most notable acquisition.
On February 17, 2015, Philips completed the acquisition
of Volcano for a total cash consideration of EUR 1,250
million. This amount involved the purchase price of
shares (EUR 822 million), the payo of certain debt
(EUR 405 million) and the settlement of outstanding
stock options (EUR 23 million). The overall cash position
of Volcano on the transaction date was EUR 158 million,
resulting in a net cash outow related to this acquisition
of EUR 1,092 million.
Volcano is a US-based global leader in catheter-based
imaging and measurement solutions for cardiovascular
applications and is very complementary to the Philips
vision, strategy, and portfolio in image-guided therapy.