Annual Report 2009
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Intangible assets excluding goodwill

The changes were as follows:

 
 
other intangible assets
product development
software
total
 
 
 
 
 
Balance as of January 1, 2009:
 
 
 
 
Cost
5,021
805
702
6,528
Accumulated amortization
(1,137)
(448)
(466)
(2,051)
Book value
3,884
357
236
4,477
 
 
 
 
 
Changes in book value:
 
 
 
 
Additions
14
188
91
293
Acquisitions
102
25
127
Amortization/deductions
(433)
(165)
(103)
(701)
Impairment losses
(3)
(16)
(3)
(22)
Translation differences
(18)
(4)
(22)
Other
10
(1)
9
Total changes
(328)
27
(15)
(316)
 
 
 
 
 
Balance as of December 31, 2009:
 
 
 
 
Cost
5,040
820
606
6,466
Accumulated amortization
(1,484)
(436)
(385)
(2,305)
Book Value
3,556
384
221
4,161

 
 
other intangible assets
product development
software
total
 
 
 
 
 
Balance as of January 1, 2008:
 
 
 
 
Cost
2,848
1,146
615
4,609
Accumulated amortization
(743)
(627)
(404)
(1,774)
Book value
2,105
519
211
2,835
 
 
 
 
 
Changes in book value:
 
 
 
 
Additions
3
154
118
275
Acquisitions
2,093
15
2,108
Amortization/deductions
(389)
(234)
(92)
(715)
Impairment losses
(84)
(84)
Translation differences
64
9
5
78
Other
8
(22)
(6)
(20)
Total changes
1,779
(162)
25
1,642
 
 
 
 
 
Balance as of December 31, 2008:
 
 
 
 
Cost
5,021
805
702
6,528
Accumulated amortization
(1,137)
(448)
(466)
(2,051)
Book Value
3,884
357
236
4,477

The additions for 2009 contain internally generated assets of EUR 188 million and EUR 76 million for product development and software, respectively (2008: EUR 154 million, EUR 96 million).

The acquisitions through business combinations in 2009 consist of the acquired intangible assets of Saeco for EUR 74 million and several other smaller acquisitions. The acquisitions through business combinations in 2008 consist of the acquired intangible assets of Respironics of EUR 1,186 million, Genlyte of EUR 860 million, and VISICU of EUR 33 million.

The amortization of Intangible assets is specified in note 3 Income from operations.

Other intangible assets consist of:

 
 
 
December 31, 2008
 
December 31, 2009
 
gross
accumulated amortization
gross
accumulated amortization
 
 
 
 
 
Brand names
895
(203)
939
(212)
Customer relationships
2,551
(358)
2,581
(534)
Technology
1,539
(559)
1,472
(712)
Other
36
(17)
48
(26)
 
5,021
(1,137)
5,040
(1,484)

The estimated amortization expense for other intangible assets for each of the next five years are:

 
2010
423
2011
382
2012
336
2013
308
2014
254

The expected useful lives of the intangible assets excluding goodwill are as follows:

 
Brand names
2-20 years
Customer relationships
2-25 years
Technology
3-20 years
Other
1-8 years
Software
3 years
Development
3-5 years

The expected weighted average remaining life of other intangible assets is 11.3 years as of December 31, 2009 (2008: 11.1 years).

The unamortized costs of computer software to be sold, leased or otherwise marketed amounted to EUR 95 million (2008: EUR 95 million). The amounts charged to the Consolidated statements of income for amortization or impairment of these capitalized computer software costs amounted to EUR 38 million (2008: EUR 33 million).

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This is an interactive electronic version of the Philips Annual Report 2009 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the Philips Annual Report 2009. The printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, IFRS basis of presentation, use of non-GAAP information, statutory financial statements and management report, reclassifications and analysis of 2008 compared to 2007.
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