Philips 2005 Annual Report Download - page 203

Philips Annual Report 2005 203
53
Accrued liabilities
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 costs 187 152
Interest-related accruals 135 134
Deferred income 463 512
Derivative instruments - liabilities 149 228
Liabilities for restructuring costs (see note 4) 114 66
Other accrued liabilities 307 381
3,259 3,621
54
Provisions
2004 2005
long-term short-term long-term short-term
Pensionsfordened-
benetplans
(see note 55) 890 86 833 90
Other postretirement
benets
(see note 55) 683 29 446 39
Postemployment
benetsandobligatory
severance
payments 108 50 102 54
Restructuring 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
2,162 727 1,817 842
The changes in total provisions excluding deferred tax liabilities are as
follows:
2004 2005
Balance as of January 1 3,073 2,889
Changes:
Additions 839 910
Utilizations (837) (1,074)
Releases (89) (190)
Translation differences (68) 150
Changes in consolidation (29) (26)
Balance as of December 31 2,889 2,659
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:
2004 2005
Balance as of January 1 387 364
Changes:
Additions 427 488
Utilizations (426) (476)
Releases (10) (7)
Translation differences (8) 20
Changes in consolidation (6) (7)
Balance as of December 31 364 382
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 estimable. Please refer
to note 29.
The changes in this provision are as follows:
2004 2005
Balance as of January 1 284 293
Changes:
Additions 82 27
Utilizations (52) (48)
Releases (2) (2)
Translation differences (19) 33
Balance as of December 31 293 303
5353
5454
− −
−
foreachofthevesucceedingyearsare:
−
−
Reclassicationfromunconsolidatedcompanies
−
−
5151
5252