Philips 2007 Annual Report Download - page 227

Philips Annual Report 2007 233
borrowings was 7.9% (2006: 6.3%).
nancing, the total outstanding amounts are classied as current
EUR 103 million (2006: EUR 136 million) of convertible personnel
−
−
−−−−−−−
−−−
Private nancing −
−
58
59
The following amounts of long-term debt as of December 31, 2007,
are due in the next ve years:
2008 1,854
2009 22
2010 13
2011 758
2012 4
2,651
Corresponding amount of previous year 2,817
As of December 31, 2007, Philips had outstanding public bonds of
EUR 2,799 million denominated in USD or EUR.
The following table provides additional details regarding the
outstanding bonds.
December 31
effective
rate 2006 2007
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
Adjustments1) 4 1
2,445 2,442
Unsecured USD Bonds
Due 5/15/25; 7 3/4% 8.010% 75 67
Due 6/01/26; 7 1/5% 7.426% 126 113
Due 8/15/13; 7 1/4% 7.554% 109 97
Due 5/15/25; 7 1/8% 7.361% − 70
Adjustments1) (3) 10
307 357
Unsecured USD Bonds,
subject to put
Due 5/15/25, put date 5/15/07; 7 1/8% 7.361% 78 −
Adjustments1) (1) −
77 −
1) Adjustments relate to issued bond discounts, transaction costs and fair value
adjustments for interest rate derivatives.
Secured liabilities
In 2007, no portions of long-term and short-term debt have been
collateralized (2006: EUR 21 million).
60
Other non-current liabilities
Other non-current liabilities are summarized as follows:
2006 2007
Accrued pension costs 298 261
Income tax payable 36 1
Asset retirement obligations 7 21
Liabilities for employee stock-options of subsidiaries 99 49
Other tax liability − 429
Other liabilities 155 35
595 796
Please refer to note 42 for a specication on the income tax payable
and the other tax liability.
61
Contractual obligations
payments due by period
less than
1 year 1-3 years 3-5 years
more
than 5
years total
Long-term debt 1,841 19 754 359 2,973
Capital leases 13 16 8 57 94
Operating
leases 142 231 134 217 724
For an explanation of long-term debt, see note 59. For an explanation
of other long-term liabilities, see note 60. Property, plant and
equipment includes EUR 94 million (2006: EUR 68 million) for capital
leases and other benecial rights of use, such as buildings rights and
hire purchase agreements.
Long-term operating lease commitments totaled EUR 724 million
(2006: EUR 787 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. Operating lease payments for 2007 totaled EUR 14
million (2006: EUR 20 million, 2005: EUR 23 million).
The remaining minimum payments are as follows:
2008 13
2009 13
2010 9
2011 6
2012 5
Thereafter 25
60
61
Group nancial statements
Notes to the IFRS 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