Philips 2005 Annual Report Download - page 156
Download and view the complete annual report
Please find page 156 of the 2005 Philips annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1
-
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
Philips Annual Report 2005156
Postemploymentbenetsandobligatoryseverancepayments
Theprovisionforpostemploymentbenetscoversbenetsprovidedto
former or inactive employees after employment but before retirement,
includingsalarycontinuation,supplementalunemploymentbenetsand
disability-relatedbenets.
The provision for obligatory severance payments covers the Company’s
commitment to pay employees a lump sum upon the employee’s
dismissal or resignation. In the event that a former employee has passed
away, the Company may have a commitment to pay a lump sum to the
deceased employee’s relatives.
Other provisions
Other provisions include provisions for employee jubilee funds totaling
EUR 109 million (2004: EUR 102 million) and expected losses on
existing projects/orders totaling EUR 26 million (2004: EUR 46 million).
22
Pensions
Employee pension plans have been established in many countries in
accordance with the legal requirements, customs and the local situation
in the countries involved. The majority of employees in Europe and
NorthAmericaarecoveredbydened-benetpensionplans.The
benetsprovidedbytheseplansarebasedonemployees’yearsof
serviceandcompensationlevels.Themeasurementdateforalldened-
benetpensionplansisDecember31.
Contributions are made by the Company, as necessary, to provide assets
sufcienttomeetthebenetspayabletodened-benetpensionplan
participants. These contributions are determined based upon various
factors, including funded status, legal and tax considerations as well as
local customs.
TheCompanyfundscertaindened-benetpensionplansasclaims
areincurred.Theprojectedbenetobligation,accumulatedbenet
obligation and fair value of plan assets for both funded and unfunded
dened-benetpensionplanswithaccumulatedbenetobligationsin
excess of plan assets are included in the table below:
2004 2005
Projectedbenetobligation 6,047 7,030
Accumulatedbenetobligation 5,776 6,669
Fair value of plan assets 4,380 5,036
Groupnancialstatements