Philips 2004 Annual Report Download - page 147

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22 Other current liabilities
Other current liabilities are summarized as follows:
2003 2004
Advances received from customers on orders not covered by work in process 119 110
Other taxes including social security premiums 292 378
Other short-term liabilities 238 139
Total 649 627
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23 Short-term debt
2003 2004
Short-term bank borrowings 317 446
Other short-term loans 62 28
Current portion of long-term debt 1,481 487
Total 1,860 961
During 2004 the weighted average interest rate on the bank borrowings was 4.6% (2003: 4.1%
and 2002: 4.2%).
In December 2004, the Company entered into a USD 2.5 billion revolving credit facility with a
consortium of banks. This facility, which has a seven-year maturity, replaced an existing USD 3.5
billion revolving credit facility, which had a five-year maturity and had been in place since July
2002. The previous stand-by revolving credit facilities of 1999 and 2002 were never drawn
upon.
In the Netherlands, the Company issues personnel debentures with a 5-year right of conversion
into common shares of Royal Philips Electronics. Convertible personnel debentures may not be
converted within a period of 3 years after the date of issue. These convertible personnel
debentures are available to most employees and are purchased by them with their own funds
and are redeemable on demand. The convertible personnel debentures become
non-convertible debentures at the end of the conversion period.
As of 2004 convertible debentures are classified as current portion of long-term debt.
Corresponding figures for 2003 have been adjusted accordingly. At December 31, 2004 an
amount of EUR 160 million (2003: EUR 155 million) of personnel debentures was outstanding,
with an average conversion price of EUR 21.99. The conversion price varies between
EUR 16.81 and EUR 49.50, with various conversion periods ending between January 1, 2005 and
December 31, 2009.
146 Philips Annual Report 2004
Financial statements of the Philips Group