Annual Report 2008
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Information by sector and main country

Auditor report 		Notes
Previous - Consolidated statements of stockholders' equity Next - Significant accounting policies
Sectors
 
sales
research and development expenses
income from operations
income from operations as a % of sales
results relating to equity-accounted investees
cash flow before financing activities
 
 
 
 
 
 
 
2008
 
 
 
 
 
 
Healthcare
7,649
(642)
638
8.3
6
(2,418)
Consumer Lifestyle
11,145
(407)
265
2.4
−
253
of which Television
4,980
(51)
(413)
(8.3)
−
(489)
Lighting
7,106
(305)
165
2.3
1
(1,139)
Innovation & Emerging Businesses
337
(268)
(226)
(67.1)
(2)
(126)
Group Management & Services
148
−
(525)
−
14
1,824
 
26,385
(1,622)
317
1.2
19
(1,606)
 
 
 
 
 
 
 
2007
 
 
 
 
 
 
Healthcare
6,638
(592)
713
10.7
7
236
Consumer Lifestyle
13,330
(492)
832
6.2
2
772
of which Television
6,270
(119)
(68)
(1.1)
−
(41)
Lighting
6,093
(276)
675
11.1
−
(648)
Innovation & Emerging Businesses
535
(269)
(82)
(15.3)
(9)
(164)
Group Management & Services
197
−
(297)
−
763
5,253
 
26,793
(1,629)
1,841
6.9
763
5,449
 
 
 
 
 
 
 
2006
 
 
 
 
 
 
Healthcare
6,562
(572)
713
10.9
9
(1,003)
Consumer Lifestyle
13,108
(553)
683
5.2
3
(39)
of which Television
6,559
(114)
155
2.4
−
207
Lighting
5,466
(269)
577
10.6
(4)
451
Innovation & Emerging Businesses
1,379
(265)
(76)
(5.5)
(12)
(49)
Group Management & Services
167
−
(699)
−
(153)
(1,832)
 
26,682
(1,659)
1,198
4.5
(157)
(2,472)
 
As of January 2008, Philips’ activities are organized on a sector basis, with each operating sector, Healthcare, Lighting and Consumer Lifestyle – being responsible for the management of its business worldwide. The Healthcare sector brings together the former Medical Systems division and Home Healthcare Solutions (formerly Consumer Healthcare Solutions) – which has been transferred from Innovation & Emerging Businesses. The former Consumer Electronics and Domestic Appliances and Personal Care divisions have been integrated in the Consumer Lifestyle sector. As a consequence of the aforementioned, prior-year financials have been restated. Prior-period Group and Healthcare financials have been revised to reflect immaterial adjustments of intercompany profit elimination on inventory (see Significant accounting policies, Reclassifications and revisions).

The following sectors are included in the table above: Healthcare, Consumer Lifestyle, Lighting, Innovation & Emerging Businesses (I&EB) and Group Management & Services (GM&S). A short description of these sectors is as follows:

Healthcare: Consists of the following businesses - Imaging Systems, Clinical Care systems, Home Healthcare Solutions, Healthcare Informatics and Patient Monitoring, and Customer Services.

Consumer Lifestyle: Consists of the following businesses - Television, Shaving & Beauty, Audio & Video Multimedia, Domestic Appliances, Peripherals & Accessories, Health & Wellness, and Licenses.

Lighting: Consists of the following businesses – Lamps, Professional Luminaires, Consumer Luminaires, Lighting Electronics, Automotive, Special Lighting Applications, and Lumileds.

I&EB: Consists of various activities and businesses which mainly support, but are not allocated to, a specific sector. This includes Corporate Technologies (such as Research, Intellectual Property & Standards, Molecular Healthcare, the Healthcare, Lifestyle and Lighting & Cleantech Incubators as well as Applied Technologies), Corporate Investments, New Venture Integration, and Design.

GM&S: Consists of the corporate center, as well as the overhead expenses of regional and country organizations. Also included are the costs of Philips’ global brand campaign and pension and other postretirement benefit costs not directly allocated to the other sectors.

Sectors
 
total assets
net operating capital
total liabilities excl. debt
long-lived assets
capital expenditures
depreciation of property, plant and equipment
 
 
 
 
 
 
 
2008
 
 
 
 
 
 
Healthcare
11,325
8,830
2,427
8,141
206
139
Consumer Lifestyle
3,521
728
2,791
1,113
174
170
of which Television
1,002
(245)
1,247
51
64
68
Lighting
7,156
5,648
1,490
5,113
303
328
Innovation & Emerging Businesses
504
153
221
217
6
31
Group Management & Services
10,535
(492)
5,665
576
82
57
 
33,041
14,867
12,594
15,160
771
725
 
 
 
 
 
 
 
2007
 
 
 
 
 
 
Healthcare
6,779
4,802
1,909
4,025
166
91
Consumer Lifestyle
4,313
890
3,423
1,292
164
156
of which Television
1,303
(255)
1,558
68
58
53
Lighting
5,133
3,886
1,238
3,307
249
217
Innovation & Emerging Businesses
606
246
250
240
52
39
Group Management & Services
19,122
705
4,068
605
30
59
 
35,953
10,529
10,888
9,469
661
562
Discontinued operations
333
 
157
 
 
 
 
36,286
 
11,045
 
 
 
 
 
 
 
 
 
 
2006
 
 
 
 
 
 
Healthcare
6,695
4,699
1,935
4,126
83
77
Consumer Lifestyle
4,284
910
3,365
1,353
156
140
of which Television
1,306
(185)
1,491
68
40
43
Lighting
3,719
2,527
1,185
2,244
343
205
Innovation & Emerging Businesses
786
128
487
251
7
66
Group Management & Services
22,536
209
4,438
646
105
66
 
38,020
8,473
11,410
8,620
694
554
Discontinued operations
431
 
169
 
 
 
 
38,451
 
11,579
 
 
 
 
As of January 2008, Philips’ activities are organized on a sector basis, with each operating sector, Healthcare, Lighting and Consumer Lifestyle – being responsible for the management of its business worldwide. The Healthcare sector brings together the former Medical Systems division and Home Healthcare Solutions (formerly Consumer Healthcare Solutions) – which has been transferred from Innovation & Emerging Businesses. The former Consumer Electronics and Domestic Appliances and Personal Care divisions have been integrated in the Consumer Lifestyle sector. As a consequence of the aforementioned, prior-year financials have been restated. Prior-period Group and Healthcare financials have been revised to reflect immaterial adjustments of intercompany profit elimination on inventory (see Significant accounting policies, Reclassifications and revisions).
Goodwill assigned to sectors
 
carrying value at January 1
acquisitions
impairment
translation differences and other changes
carrying value at December 31
2008
 
 
 
 
 
Healthcare
2,446
2,405
−
320
5,171
Consumer Lifestyle
444
5
−
(66)
383
Lighting
1,244
1,036
(234)
100
2,146
Innovation & Emerging Businesses
1
−
−
−
1
Group Management & Services
−
−
−
−
−
 
4,135
3,446
(234)
354
7,701
 
 
 
 
 
 
2007
 
 
 
 
 
Healthcare
2,605
108
−
(267)
2,446
Consumer Lifestyle
481
7
−
(44)
444
Lighting
636
695
−
(87)
1,244
Innovation & Emerging Businesses
1
−
−
−
1
Group Management & Services
−
−
−
−
−
 
3,723
810
−
(398)
4,135
 

Main countries
 
sales
total assets
net operating capital
long-lived assets
capital expenditures
depreciation of property, plant and equipment
2008
 
 
 
 
 
 
Netherlands
1,012
9,564
3,699
1,271
157
152
United States
7,027
14,310
9,293
10,905
192
162
Germany
2,048
970
(328)
282
50
53
France
1,692
531
(81)
132
55
30
United Kingdom
1,016
731
415
526
13
9
China
1,754
1,319
(178)
236
60
47
Other countries
11,836
5,616
2,047
1,808
244
272
 
26,385
33,041
14,867
15,160
771
725
 
 
 
 
 
 
 
2007
 
 
 
 
 
 
Netherlands
1,159
14,008
1,969
1,200
163
151
United States
6,725
8,068
6,709
5,172
118
103
Germany
2,014
1,364
(219)
305
50
46
France
1,784
694
(131)
103
23
26
United Kingdom
1,250
1,037
692
720
13
8
China
1,707
1,231
(516)
168
36
42
Other countries
12,154
9,551
2,025
1,801
258
186
 
26,793
35,953
10,529
9,469
661
562
Discontinued operations
 
333
 
 
 
 
 
 
36,286
 
 
 
 
 
 
 
 
 
 
 
2006
 
 
 
 
 
 
Netherlands
1,088
10,646
3,479
1,132
242
162
United States
7,153
7,820
4,394
5,162
211
98
Germany
1,985
1,170
(449)
296
57
51
France
1,626
608
301
107
18
32
United Kingdom
1,186
1,194
717
792
4
6
China
1,740
1,115
(112)
176
31
42
Other countries
11,904
15,467
143
955
131
163
 
26,682
38,020
8,473
8,620
694
554
Discontinued operations
 
431
 
 
 
 
 
 
38,451
 
 
 
 
 
Prior-period amounts have been revised to reflect immaterial adjustments of intercompany profit elimination on inventory (see Significant accounting policies, Reclassifications and revisions).
Previous - Consolidated statements of stockholders' equity Next - Significant accounting policies
This is an interactive electronic version of the Philips Annual Report 2008 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 2008. 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, US GAAP basis of presentation, use of non-US GAAP information, statutory financial statements and management report, revision and reclassifications and analysis of 2007 compared to 2006.
133
135
Notes to the US GAAP financial statements
Notes to the IFRS financial statements
Notes to the Company financial statements
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