Philips 2015 Annual Report Download - page 221

Reconciliation of non-GAAP information 15
Annual Report 2015 221
Net operating capital (NOC)
The Company believes that an understanding of the Philips Group’s nancial condition is enhanced by the disclosure
of net operating capital (NOC), as this gure is used by Philips’ management to evaluate the capital eciency of the
Philips Group and its operating sectors. NOC is dened as: total assets excluding assets classied as held for sale less:
(a) cash and cash equivalents, (b) deferred tax assets, (c) other non-current nancial assets and current nancial assets,
(d) investments in associates, and after deduction of: (e) long-term provisions and short-term provisions, (f) accounts
and notes payable, (g) accrued liabilities, (h) income tax payable, (i) non-current derivative nancial liabilities and
derivative nancial liabilities and (j) other non-current liabilities and other current liabilities.
Philips Group
Net operating capital to total assets in millions of EUR
2013 - 2015
Philips Group Healthcare
Consumer
Lifestyle Lighting
Innovation,
Group &
Services
2015
Net operating capital (NOC) 11,096 9,212 1,453 3,813 (3,382)
Exclude liabilities comprised in NOC:
- payables/liabilities 9,640 3,064 1,356 1,510 3,710
- intercompany accounts - 128 36 87 (251)
- provisions 3,225 903 235 446 1,641
Include assets not comprised in NOC:
- investments in associates 181 56 - 19 106
- current nancial assets 12 - - - 12
- other non-current nancial assets 489 - - - 489
- deferred tax assets 2,758 - - - 2,758
- cash and cash equivalents 1,766 - - - 1,766
Total assets excluding assets classied as held for sale 29,167 13,363 3,080 5,875 6,849
Assets classied as held for sale 1,809
Total assets 30,976
2014
Net operating capital (NOC) 8,838 7,565 1,353 3,638 (3,718)
Exclude liabilities comprised in NOC:
- payables/liabilities 9,379 2,711 1,411 1,422 3,835
- intercompany accounts - 125 65 129 (319)
- provisions 3,445 793 220 530 1,902
Include assets not comprised in NOC:
- investments in associates 157 80 - 20 57
- current nancial assets 125 - - - 125
- other non-current nancial assets 462 - - - 462
- deferred tax assets 2,460 - - - 2,460
- cash and cash equivalents 1,873 - - - 1,873
Total assets excluding assets classied as held for sale 26,739 11,274 3,049 5,739 6,677
Assets classied as held for sale 1,613
Total assets 28,352
2013
Net operating capital (NOC) 10,238 7,437 1,261 4,462 (2,922)
Exclude liabilities comprised in NOC:
- payables/ liabilities 8,453 2,541 1,275 1,672 2,965
- intercompany accounts - 124 75 105 (304)
- provisions 2,554 278 221 452 1,603
Include assets not comprised in NOC:
- investments in associates 161 85 - 20 56
- current nancial assets 10 - - - 10
- other non-current nancial assets 496 - - - 496
- deferred tax assets 1,675 - - - 1,675
- cash and cash equivalents 2,465 - - - 2,465
Total assets excluding assets classied as held for sale 26,052 10,465 2,832 6,711 6,044
Assets classied as held for sale 507
Total assets 26,559