Philips 2015 Annual Report Download - page 174

Company nancial statements 13.4 A B C D
174 Annual Report 2015
13.4 Notes
Notes to the Company nancial statements
ANet income
Net income from affiliated companies represents the share
of the company in the results of these affiliated companies.
BAudit fees
For a summary of the audit fees, please refer to the
Group Financial statements, note 6, Income from
operations, which is deemed incorporated and
repeated herein by reference.
CIntangible assets
Intangible assets includes mainly licenses and patents.
The changes during 2015 are as follows;
Koninklijke Philips N.V.
Intangible assets in millions of EUR
2015
Balance as of January 1, 2015:
Cost 87
Amortization/ impairments (30)
Book value 57
Changes in book value:
Additions 44
Amortization (20)
Total changes 24
Balance as of December 31, 2015:
Cost 131
Amortization/ impairments (50)
Book value 81
DFinancial xed assets
The investments in group companies and associates
are presented as nancial xed assets in the balance
sheet using the equity method. Goodwill paid upon
acquisition of investments in group companies or
associates is included in the net equity value of the
investment and is not shown separately on the face of
the balance sheet.
Loans provided to group companies are stated at
amortized cost, less impairment.
A list of investments in group companies, prepared in
accordance with the relevant legal requirements (Dutch
Civil Code, Book 2, Sections 379 and 414), is deposited
at the Chamber of Commerce in Eindhoven,
Netherlands.
Koninklijke Philips N.V.
Financial xed assets in millions of EUR
2015
investments
in group
companies
investments
in associates loans total
Balance as of
January 1, 2015 12,660 66 6,950 19,676
Changes:
Acquisitions/
additions 283 8,018 8,301
Sales/
redemptions (183) (6,225) (6,408)
Net income from
aliated
companies (66) (66)
Dividends
received (1,689) (1,689)
Translation
dierences 829 7 526 1,362
Balance as of
December 31,
2015 11,834 73 9,269 21,176
Investment in group companies
The acquisitions/additions line mainly relates to capital
injections into group companies. One group company
made a capital repayment of EUR 127 million which is
reected as part of the movement sales/redemptions.
The same group company paid an interim dividend of
EUR 1,464 million included in the dividends received
line. The remaining movements in sales/redemptions
reect restructuring transactions within the group.
Loans
In December 2015, the Company revisited its foreign
based intra-group nance activities. In this context
intra-group funding of certain group companies was
directly provided by Koninklijke Philips N.V. and no
longer via a foreign based group nance entity. The
newly provided direct funding by the Company,
resulted in loan additions by EUR 6,485 million. The
change resulted in the redemption of loans by EUR
5,314 million, which were initially provided by the
Company to the foreign based group nance entity.