Annual Report 2008
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Intangible assets excluding goodwill

The changes during 2008 were as follows:

 
 
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
 

Other intangible assets in 2008 consist of:

 
 
 
January 1
 
December 31
 
gross
accumulated amortization
gross
accumulated amortization
 
 
 
 
 
Marketing-related
179
(31)
81
(26)
Customer-related
1,124
(195)
2,619
(380)
Contract-based
33
(10)
36
(17)
Technology-based
861
(417)
1,489
(575)
Patents and trademarks
651
(90)
796
(139)
 
2,848
(743)
5,021
(1,137)
 

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

 
2009
417
2010
399
2011
361
2012
335
2013
306
 

The expected weighted average remaining life of other intangible assets is 11.1 years as of December 31, 2008.

The additions acquired 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 acquired intangible assets mainly consist of customer relationships and patents of Respironics of EUR 732 million and Genlyte EUR 614 million, and core technology of Respironics of EUR 355 million and VISICU of EUR 20 million.

The unamortized costs of computer software to be sold, leased or otherwise marketed amounted to EUR 95 million (2007: EUR 63 million). The amounts charged to the income statement for amortization or impairment of these capitalized computer software costs amounted to EUR 33 million (2007: EUR 20 million).

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.
231
231
Notes to the US GAAP financial statements
Notes to the IFRS financial statements
Notes to the Company financial statements
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