Philips 2015 Annual Report Download - page 130

Group nancial statements 12.9 7
130 Annual Report 2015
impairment charges amounted to EUR 28 million,
including EUR 26 million as result of reduced growth
expectations in Consumer Luminaires, see note 11,
Goodwill.
Other business income (expenses)
Other business income (expenses) consists of the
following:
Philips Group
Other business income (expenses) in millions of EUR
2013 - 2015
2013 2014 2015
Result on disposal of businesses:
- income 50 7 4
- expense (1) (2) (5)
Result on disposal of xed assets:
- income 18 18 79
- expense (13) (1) (9)
Result on other remaining businesses:
- income 54 38 54
- expense (21) (271) (36)
Other business income (expenses) 87 (211) 87
Total other business income 122 63 137
Total other business expense (35) (274) (50)
In 2015, result on disposal of businesses was mainly due
to divestment of non-strategic businesses. For further
information, see note 4, Acquisitions and divestments.
In 2015, result on disposal of xed assets was mainly
due to sale of real estate assets.
In 2015, result on other remaining businesses mainly
relates to non-core revenue and various legal matters.
In 2014 remaining business expense mainly relates to
certain parts of the Cathode Ray Tube antitrust litigation
as mentioned in note 26, Contingent assets and
liabilities for which the Company concluded it was able
to make a reliable estimate of the cash outow or was
able to reach a settlement with the relevant plaintis.
For more details reference is made to note 19,
Provisions - litigation provisions and note 26,
Contingent assets and liabilities - legal proceedings.
7Financial income and expenses
Philips Group
Financial income and expenses in millions of EUR
2013 - 2015
2013 2014 2015
Interest income 54 39 48
Interest income from loans and
receivables 32 22 21
Interest income from cash and
cash equivalents 22 17 27
Dividend income from available for
sale nancial assets 5 4 6
Net gains from disposal of nancial
assets - 60 20
Net change in fair value of nancial
assets at fair value through prot or
loss - - 4
Other nancial income 11 11 20
Financial income 70 114 98
Interest expense (323) (290) (350)
Interest on debt and borrowings (245) (224) (271)
Finance charges under nance
lease contract (7) (7) (7)
Interest expenses - pensions (71) (59) (72)
Provision-related accretion and
interest (25) (80) (35)
Net foreign exchange losses (6) (1) (11)
Impairment loss of nancial assets (10) (17) (46)
Net change in fair value of nancial
assets at fair value through prot or
loss (9) (6) -
Net change in fair value of nancial
liabilities at fair value through prot
or loss (3) (2) -
Other nancial expenses (24) (19) (25)
Financial expense (400) (415) (467)
Financial income and expenses (330) (301) (369)
Net nancial income and expense showed a EUR 369
million expenses in 2015, which was 68 million higher
than in 2014. Interest expense in 2015 was EUR 60
million higher than in 2014, mainly due to weaker EUR
against USD in relation to interest expenses on USD
bonds. The gain from disposal of nancial assets in 2015
amounted to EUR 20 million, mainly from Assembléon,
Silicon & Software Systems and other equity interest.
The impairment charges in 2015 amounted to EUR 46
million mainly due to valuation allowances on Other
current receivables. Provision-related accretion and
interest in 2015 primarily consisted of interest expense
related to the jury verdict in the Masimo litigation, and
accretion expense associated with other discounted
provisions and uncertain tax positions.
Interest expense in 2014 was EUR 33 million lower than
in 2013, mainly as a result of lower average outstanding
debt and lower interest related to pensions in 2014. The
gain from disposal on nancial assets in 2014 amounted
to EUR 60 million, mainly from Neusoft, Chimei Innolux,
Gilde III and Sapiens. In 2014 impairment charges
amounted to EUR 17 million. Provision-related
accretion and interest in 2014 primarily consisted of
interest expense related to the jury verdict in the