Philips 2015 Annual Report Download - page 139

13 Group nancial statements 12.9
Annual Report 2015 139
The increase of EUR 275 million in translation
dierences was mainly due to the increase of the USD/
EUR rate which impacted the intangibles denominated
in USD.
The amortization of intangible assets is specied in
note 6, Income from operations.
Other intangible assets consist of:
Philips Group
Amortization of other intangible assets in millions of EUR
2014 -2015
Balance as of
December 31,
2014
Balance as of
December 31,
2015
gross
amortization/
impairments gross
amortization/
impairments
Brand names 1,018 (497) 1,102 (582)
Customer
relationships 3,045 (1,622) 3,324 (1,925)
Technology 1,543 (1,151) 1,977 (1,373)
Other 115 (101) 136 (113)
Other
intangibles 5,721 (3,371) 6,539 (3,993)
The estimated amortization expense for other
intangible assets for each of the next ve years is:
Philips Group
Estimated amortization expense for other intangible assets
in years
2016 357
2017 328
2018 318
2019 298
2020 281
The expected useful lives of the intangible assets
excluding goodwill are as follows:
Philips Group
Expected useful lives of intangible assets excluding goodwill
in years
Brand names 2-20
Customer relationships 2-25
Technology 3-20
Other 1-8
Software 1-10
Product development 3-7
The weighted average expected remaining life of other
intangible assets is 8.4 years as of December 31, 2015
(2014: 8.5 years).
The capitalized product development costs and
software, for which amortization has not yet
commenced, amounted to EUR 491 million as of
December 31, 2015 (2014: EUR 450 million).
At December 31, 2015 the carrying amount of customer
relationships of Respiratory Care & Sleep Management
was EUR 466 million (USD 509 million) with a remaining
amortization period of 8.2 years (2014: EUR 468 million,
USD 569 million; 9.2 years).
At December 31, 2015 the carrying amount of developed
technology related to systems for Volcano (now “Image
Guided Technology - Devices”) was EUR 150 million
(USD 164 million) with a remaining amortization period
of 14.1 years.
13 Other nancial assets
The changes during 2015 were as follows:
Philips Group
Other non-current nancial assets in millions of EUR
2015
availa-
ble-for-
sale -
nancial
assets
loans
and re-
ceiva-
bles
held-
to-ma-
turity
invest-
ments
nan-
cial as-
sets at
fair val-
ue
through
prot or
loss total
Balance as of
January 1, 2015 210 226 2 24 462
Changes:
Reclassica-
tions (18) (9) (27)
Acquisitions/
additions 31 35 - 5 71
Sales/
redemptions/
reductions (23) (13) (1) (37)
Impairment (4) - - (4)
Transfer from
and (to) assets
classied as
held for sale 1 (2) (1)
Value
adjustments 31 1 3 35
Translation and
exchange
dierences 4 (16) - 2 (10)
Balance as of
December 31,
2015 232 222 2 33 489
Available-for-sale nancial assets
The Company’s investments in available-for-sale
nancial assets mainly consist of investments in
common shares of companies in various industries. The
line reclassications mainly represents an investment
transferred to investments in associates due to the fact
that the Group is able to exercise signicant inuence.
The line additions/acquisitions includes investments of
EUR 21 million which relate to the acquisition of Volcano
(refer to note 4 Acquisitions and divestments). The
remainder mainly relates to capital calls for certain
investment funds. The line sales/redemptions/
reductions includes the sale of one of Volcano’s
investments for an amount of EUR 16 million and the
sale of certain government bonds for an amount of EUR
6 million.
Loans and receivables
The acquisitions/additions line mainly relates to vendor
loans issued to an amount of EUR 17 million in relation
to the sale of an equity interest. The current portion of
this loan (EUR 8 million) was in the course of 2015
reclassied to Current nancial assets. The remainder
of the loan will be redeemed in 2017.