Financial fixed assets

The investments in group companies and associates are presented as financial fixed 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, The Netherlands.

Koninklijke Philips N.V.
Financial fixed assets in millions of EUR
2014
 
investments in group companies
investments in associates
loans
total
Balance as of January 1, 2014
13,591
71
5,873
19,535
Changes:
 
 
 
 
Reclassifications
35
(8)
27
Acquisitions/additions
2,379
6
749
3,134
Sales/redemptions
(1,107)
(348)
(1,455)
Net income from affiliated companies
(485)
16
(469)
Dividends received
(1,836)
(19)
(1,855)
Translation differences
687
7
676
1,370
Transfer to assets classified as held for sale
(7)
(7)
Other
(604)
(604)
Balance as of December 31, 2014
12,660
66
6,950
19,676

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During 2014, the increase in acquisitions/additions line is mainly related to the purchase of a group company amounting to EUR 2,165 million. The same group company made a capital repayment of EUR 562 million which is reflected as part of the movement in sales/redemptions and issued an interim dividend of EUR 1,458 million shown in the dividends received line. These transactions were executed in view of our continued effort to restructure and optimize our foreign based intra-group finance activities. The remaining movements in sales/redemptions reflect restructuring in the group.

Included in other, under Investments in Group companies, are remeasurements of EUR 683 million related to defined-benefit plans of group companies.

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