Philips 2007 Annual Report Download - page 163

Philips Annual Report 2007 169
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
individual line items in the statement of nancial position
(pensions and other post retirement benets)
Postretirement benets
−
Deferred tax liabilities
−
− −
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
All the postretirement benet plans are unfunded and therefore no plan asset disclosures are presented.
21
Netherlands other total
2007
Accumulated postretirement benet obligation
Projected benet obligation at beginning of year 10 363 373
Service cost − 3 3
Interest cost − 26 26
Actuarial gains − 47 47
Settlements − (6) (6)
Benets paid (3) (29) (32)
Translation differences − (19) (19)
Miscellaneous − 21 21
Projected benet obligation at end of year 7 406 413
Funded status (7) (406) (413)
Amounts recognized in the consolidated balance sheet
Non-current assets − − −
Current provisions (3) (20) (23)
Non-current provisions (4) (386) (390)
Net pension liability at year-end (7) (406) (413)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss − 96 96
Prior-service cost − (4) (4)
Transition obligation − 25 25
Accumulated other comprehensive income − 117 117
2006
Accumulated postretirement benet obligation
Projected benet obligation at beginning of year 50 397 447
Service cost − 4 4
Interest cost − 26 26
Actuarial gains − (12) (12)
Curtailments − (2) (2)
Benets paid (40) (25) (65)
Translation differences − (26) (26)
Miscellaneous − 1 1
Projected benet obligation at end of year 10 363 373
Funded status (10) (363) (373)
Amounts recognized in the consolidated balance sheet
Current provisions (10) (26) (36)
Non-current provisions − (337) (337)
Net pension liability at year-end (10) (363) (373)
Amounts recognized in accumulated other
comprehensive income
Net actuarial loss − 40 40
Prior-service cost − 2 2
Transition obligation − 32 32
Accumulated other comprehensive income − 74 74
Group nancial statements
Notes to the group nancial statements
Company nancial statements 250 Corporate governance246 Reconciliation of
non-US GAAP information 258 The Philips Group in the last ten years 260
Investor information