Philips 2006 Annual Report Download - page 212

Philips Annual Report 2006212
The following table provides additional details regarding the
outstanding bonds.
December 31
effective
rate 2005 2006
Unsecured Eurobonds
Due 2/06/08; 7 1/8% 7.302 % 130 130
Due 5/14/08; 7% 7.094% 61 61
Due 5/16/08; 5 3/4% 5.817 % 1,500 1,500
Due 5/16/11; 6 1/8% 6.212 % 750 750
Adjustments
1) 6 4
2,447 2,445
Unsecured USD Bonds
Due 5/15/25; 7 3/4% 8.010 % 84 75
Due 6/01/26; 7 1/5% 7.426 % − 126
Due 8/15/13; 7 1/4% 7.554 % 121 109
Due 9/15/06; 8 3/8% 8.739 % 226 −
Adjustments
1) (2 ) (3 )
429 307
Unsecured USD Bonds subject
to put
Due 5/15/25, put date 5/15/07; 7 1/8% 7.361% 87 78
Due 6/01/26, put date 6/01/06; 7 1/5% 7.426% 140 −
Adjustments
1) (3 ) (1 )
224 77
1) Adjustments relate to issued bond discounts, transaction costs and fair value
adjustments for interest rate derivatives.
Secured liabilities
Certain portions of long-term and short-term debt have been
collateralized as follows:
collateral
amount of
the debt
property,
plant and
equipment other assets
Institutional fi nancing 15 − 11
Other debts 6 2 −
21 2 11
Previous year 155 428 190
55
Other non-current liabilities
Other non-current liabilities are summarized as follows:
2005 2006
Accrued pension costs 687 298
Income tax payable 59 36
Asset retirement obligations 22 7
Liabilities arising from guarantees 47 3
Liabilities for restructuring costs 12 3
Liabilities for employee stock-
options of subsidiaries 87 99
Other liabilities 172 149
1,086 595
56
Contractual obligations
payments due by period
less than
1 year 1-3 years 3-5 years
more
than 5
years total
Long-term debt 184 1,710 874 386 3,154
Capital leases 31 11 7 19 68
Operating
leases 144 245 155 250 794
For an explanation of long-term debt, see note 54. For an explanation
of other long-term liabilities, see note 55. Property, plant and
equipment includes EUR 68 million (2005: EUR 122 million) for capital
leases and other benefi cial rights of use, such as buildings rights and
hire purchase agreements.
Long-term operating lease commitments totaled EUR 794 million
at the end of 2006 (2005: EUR 881 million). These leases expire at
various dates during the next 20 years.
The long-term operating leases are mainly related to the rental of
buildings. A number of these leases originate from sale-and-leaseback
arrangements. In 2006, a small sale-and-operational-leaseback has been
concluded. In 2005, two sale-and-operational-leaseback arrangements
in the Netherlands were concluded, in which buildings were sold for
an aggregate amount of EUR 20 million, with leaseback rental periods
of 10 and 4 years. In 2004, no sale-and-operational-leaseback
arrangements were concluded. The rental payments for 2006 totaled
EUR 20 million (2005: EUR 23 million, 2004: EUR 24 million).
The remaining minimum payments are as follows:
2007 15
2008 13
2009 13
2010 9
2011 6
Thereafter 32
112 Group fi nancial statements 172 IFRS information
Notes to the IFRS fi nancial statements
218 Company fi nancial statements