Philips 2007 Annual Report Download - page 162

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Philips Annual Report 2007168
SFAS No. 158
In September 2006, SFAS No. 158 was issued. This statement requires an employer to recognize the funded status of a benet plan -
measured as the difference between plan assets at fair value and the benet obligation in the balance sheet. The offset of recognizing
the funded status is recorded in accumulated other comprehensive income (within stockholders’ equity). Additionally, the additional
minimum pension liability and related intangible assets are derecognized upon adoption of this standard. The following table
summarizes the effect of the adoption of SFAS No. 158, efffective December 31, 2006.
Incremental effect of applying FASB Statement No. 158 on
individual line items in the statement of nancial position
(pensions and other post retirement benets)
before
applica-
tion of
SFAS 158
additional
minimum
pension
liability SFAS 158
after
applica-
tion of
SFAS 158
Prepaid pension costs under
other non-current assets 2,758 4 (500) 2,262
Accrued pension costs under
other non-current liabilities (344) 412 (510) (442)
Provisions for pensions
under provision (868) 142 (152) (878)
Postretirement benets
other than pensions (299) − (74) (373)
Deferred tax assets
(non-current) 902 (198) 440 1,144
Deferred tax liabilities
grouped under provisions
(non-current) (496) − (12) (508)
Pension related
intangible assets 29 (29) − −
Total assets 38,780 (223) (60) 38,497
Total liabilities and equity (38,780) 223 60 (38,497)
Accumulated in other
comprehensive income (2,084) (331) 808 (1,607)
Total stockholders’ equity (23,474) (331) 808 (22,997)
21
Postretirement benets other than pensions
In addition to providing pension benets, the Company provides other postretirement benets, primarily retiree healthcare benets,
in certain countries. The Company funds other postretirement benet plans as claims are incurred.
The table below provides a summary of the changes in the accumulated postretirement benet obligations for 2006 and 2007 and
a reconciliation of the obligations to the amounts recognized in the consolidated balance sheets.
All the postretirement benet plans are unfunded and therefore no plan asset disclosures are presented.
128 Group nancial statements
Notes to the group nancial statements
188 IFRS information 240 Company nancial statements