Philips 2005 Annual Report Download - page 155

Philips Annual Report 2005 155
20
Accrued liabilities
Accrued liabilities are summarized as follows:
2004 2005
Personnel-related costs:
Salaries and wages 548 570
Accrued holiday entitlements 209 238
Other personnel-related costs 152 153
Fixed-assets-related costs:
Gas, water electricity, rent and other 104 98
Taxes:
Income tax payable 277 524
Other taxes payable 9 −
Communication & IT costs 64 65
Distribution costs 84 89
Sales-related costs:
Commissions payable 29 57
Advertising and marketing-related costs 122 126
Other sales-related costs 306 228
Material-related accruals 187 152
Interest-related accruals 135 134
Deferred income 486 523
Derivative instruments - liabilities 149 228
Liabilities for restructuring costs (see note 4) 114 66
Other accrued liabilities 307 381
3,282 3,632
21
Provisions
Provisions are summarized as follows:
2004 2005
long-
term
short-
term
long-
term
short-
term
Pensionsfordened-benetplans
(see note 22) 893 86 909 90
Otherpostretirementbenets
(see note 23) 435 29 311 39
Postemploymentbenetsand
obligatory severance payments 133 50 102 54
Deferred tax liabilities (see note 6) 174 54 298 27
Restructuring (see note 4) 18 16 − −
Product warranty 25 339 21 361
Loss contingencies
(environmental remediation and
product liability) 233 60 201 102
Other provisions 205 147 214 196
2,116 781 2,056 869
The changes in total provisions excluding deferred tax liabilities are as
follows:
2003 2004 2005
Balance as of January 1 3,161 2,766 2,669
Changes:
Additions 866 893 978
Utilizations (914) (831) (1,100)
Releases (179) (91) (69)
Translation differences (165) (61) 131
Changes in consolidation (3) (7) (9)
Balance as of December 31 2,766 2,669 2,600
Product warranty
Theprovisionforproductwarrantyreectstheestimatedcostsof
replacement and free-of-charge services that will be incurred by the
Company with respect to products sold. The changes in the provision
for product warranty are as follows:
2003 2004 2005
Balance as of January 1 377 387 364
Changes:
Additions 404 427 488
Utilizations (351) (426) (476)
Releases (16) (10) (7)
Translation differences (27) (8) 20
Changes in consolidation −(6) (7)
Balance as of December 31 387 364 382
Loss contingencies (environmental remediation and product liability)
This provision includes accrued losses recorded with respect to
environmental remediation and product liability (including asbestos)
obligations which are probable and reasonably estimatable. Please refer
to note 29.
The changes in this provision are as follows:
2003 2004 2005
Balance as of January 1 263 284 293
Changes:
Additions 101 82 27
Utilizations (38) (52) (48)
Releases (2) (2) (2)
Translation differences (40) (19) 33
Balance as of December 31 284 293 303
2020
2121
−
−
− −
−
foreachofthevesucceedingyearsare:
−
−
Reclassicationfromunconsolidatedcompanies −
onpage132foraspecicationofgoodwillbysector.
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1919