Other financial assets

Other non-current financial assets

The changes during 2014 were as follows:

Philips Group
Other non-current financial assets in millions of EUR
2014
 
available-for-sale financial assets
loans and receivables
held-to-maturity investments
financial assets at fair value through profit or loss
total
Balance as of January 1, 2014
192
273
3
28
496
Changes:
 
 
 
 
 
Reclassifications
5
(119)
(114)
Acquisitions/additions
23
69
1
93
Sales/redemptions/reductions
(15)
(2)
(2)
(19)
Impairment
(10)
(3)
(1)
(14)
Transfer to assets classified as held for sale
(38)
(38)
Value adjustments
50
6
(7)
49
Translation and exchange differences
3
2
(1)
5
9
Balance as of December 31, 2014
210
226
2
24
462

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Available-for-sale financial assets

The Company’s investments in available-for-sale financial assets mainly consist of investments in common stock of companies in various industries. An amount of EUR 38 million has been reclassified to assets held for sale mainly relating to the contribution agreement between the Philips Pension Fund, Philips and Dutch trade unions on July 1, 2013.

Loans and receivables

The reclassification line includes loans of EUR 121 million transferred to Current financial assets (see below). The acquisitions/additions line mainly relates to a new loan of EUR 60 million issued to TPV Technology Limited.

Financial assets at fair value through profit or loss

In 2010 Philips sold its entire holding of common shares in NXP Semiconductors B.V. (NXP) to Philips Pension Trustees Limited (herein referred to as “UK Pension Fund”). The purchase agreement with the UK Pension Fund included an arrangement that entitled Philips to a cash payment from the UK Pension Fund on or after September 7, 2014, if certain conditions were met. As of December 31, 2013, management’s best estimate of the fair value of the arrangement was EUR 7 million. At the date of expiration on September 7, 2014 the arrangement did not represent any value. The decline in fair value in 2014 is reported under value adjustments in the table above and also recognized in Financial income and expense.

Current financial assets

The amount of EUR 125 million mostly relates to loans issued to TPV Technology Limited. These loans are due in 2015 and have therefore been reclassified from non-current to Current financial assets.

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