Philips 2015 Annual Report Download - page 127

5Group nancial statements 12.9
Annual Report 2015 127
Transaction-related costs that were recognized in
General and administrative expenses amounted to EUR
15 million. As of February 17, 2015, Volcano is 100%
consolidated as part of the Healthcare sector. The
condensed balance sheet of Volcano, immediately
before and after the acquisition was as follows:
Volcano
Balance sheet in millions of EUR
2015
before
acquisition date
after acquisition
date
Goodwill 133 627
Other intangible assets 87 320
Property, plant and equipment 105 105
Other assets 80 50
Other liabilities (41) (142)
Working Capital 112 156
Cash 158 158
Total assets and liabilities 634 1,274
Group Equity (219) (1,250)
Loans (415) (24)
Financed by (634) (1,274)
The goodwill is primarily related to synergies expected
to be achieved from integrating Volcano within the
Healthcare sector. The goodwill is not tax-deductible.
Other intangible assets are comprised of the following:
Volcano
Other intangible assets in millions of EUR
2015
amount
amortization
period in years
Installed base 62 6
Developed technology - Systems 155 15
Developed technology - Disposables 58 15
Developed technology - Peripheral
Therapeutics 26 15
IPR&D 6 n/a
Trade names 13 10
Total other intangible assets 320
For the period from February 17, 2015, Volcano
contributed sales of EUR 286 million and a loss from
operations of EUR 113 million, which includes
acquisition related costs of EUR 103 million.
Divestments
Philips completed seven divestments during 2015, with
the sale of the 20% interest in Assembléon Holding B.V.
and the sale of the Remote Control activities being the
most notable divestments. The seven divestments
involved an aggregated cash consideration of EUR 59
million.
2014
Acquisitions
Philips completed three acquisitions in 2014. These
acquisitions involved an aggregated purchase price of
EUR 171 million.
One of the acquisitions in 2014, was General Lighting
Company (GLC), domiciled in the Kingdom of Saudi
Arabia (KSA). This acquisition enables Philips to grow
its business in KSA, the largest economy in the Middle
East by GDP, particularly in LED lighting.
On September 2, 2014, the Company acquired 51% of
GLC from a consortium of shareholders for a total
amount of EUR 146 million (on a cash-free, debt-free
basis). Taking into account closing conditions, Philips
paid an amount of EUR 148 million.
Divestments
Apart from the divestment of the Audio, Video,
Multimedia & Accessories business
, Philips completed
two other divestments of business activities during 2014,
which related to Healthcare and Lighting activities. The two
transactions involved an aggregate consideration of EUR 43
million.
5Interests in entities
In this section we discuss the nature of, and risks
associated with, the Company’s interests in its
consolidated entities and associates, and the eects of
those interests on the Company’s nancial position and
nancial performance.
Interests in entities relates to:
• Interests in subsidiaries
• Investments in associates
Interests in subsidiaries
Wholly owned subsidiaries
The Group nancial statements comprise the assets
and liabilities of approximately 450 legal entities. Set
out below is a list of material subsidiaries representing
greater than 5% of either the consolidated group sales,
income from operations or net income (before any
intra-group eliminations). All of the entities are 100%
owned and have been for the last 3 years.