Philips 2007 Annual Report Download - page 238

Philips Annual Report 2007244
G
Long-term debt
Long-term debt and short-term-debt is uncollateralized.
(range of)
interest rates
average
interest rate
amount
outstanding due in 1 year
due after 1
year
due after 5
years
average
remaining
term
(in years)
amount
out-standing
2006
Eurobonds 5.8-7.1% 6.0% 2,442 1,692 750 − 3.4 2,445
USD bonds 7.1-7.8% 7.3% 357 − 357 357 14.4 307
USD putable bonds − − − − − − − 77
Convertible debentures 0.8% 0.8% 103 103 − − − 136
Intercompany nancing 2.2-4.9% 4.3% 2,161 2,161 − − − 1,625
Other long-term debt 3.8-12.3% 6.5% 61 45 16 − 2.3 179
5,124 4,001 1,123 357 4,769
Corresponding data
previous year 4,769 1,806 2,963 384 3,604
The following amounts of the long-term debt as of December 31, 2007,
are due in the next ve years:
2008 4,001
2009 5
2010 8
2011 753
2012 −
4,767
Corresponding amount previous year 4,385
Convertible debentures include Philips personnel debentures. For more
information, please refer to the related note 61.
H
Stockholders’ equity
Common shares
As of December 31, 2007, the issued share capital consists of
1,142,826,763 common shares, each share having a par value
of EUR 0.20, which shares have been paid-in in full.
Preference shares
The ‘Stichting Preferente Aandelen Philips’ has been granted the right
to acquire preference shares in the Company. Such right has not been
exercised. As a means to protect the Company and its stakeholders
against an unsolicited attempt to (de facto) take over control of the
Company, the General Meeting of Shareholders in 1989 adopted
amendments to the Company’s articles of association that allow the
Board of Management and the Supervisory Board to issue (rights to
acquire) preference shares to a third party. As of December 31, 2007,
no preference shares have been issued.
Option rights/restricted shares
The Company has granted stock options on its common shares
and rights to receive common shares in the future. Please refer
to note 33, which is deemed incorporated and repeated herein
by reference.
Treasury shares
In connection with the Company’s share repurchase programs, shares
which have been repurchased and are held in treasury for (i) delivery
upon exercise of options and convertible personnel debentures and
under restricted share programs and employee share purchase programs,
and (ii) capital reduction purposes are accounted for as a reduction of
stockholders’ equity. Treasury shares are recorded at cost, representing
the market price on the acquisition date. When issued, shares are
removed from treasury stock on a FIFO basis. In order to reduce
potential dilution effects, a total of 53,140,867 shares were acquired
during 2007 at an average market price of EUR 30.73 per share, totaling
EUR 1,633 million, and a total of 11,140,884 shares were delivered
at an average exercise price of EUR 17.86 totaling EUR 199 million.
A total of 77,933,509 shares were held by the Company at December
31, 2007 (2006: 35,933,526 shares), acquired at an aggregate cost of
EUR 2,216 million.
Net income and dividend
A dividend of EUR 0.70 per common share will be proposed to the
2008 Annual General Meeting of Shareholders. An amount of EUR
3,940 million is expected to be added to retained earnings.
Legal reserves
As of December 31, 2007, the item ‘Legal reserve revaluation’, relates
to unrealized gains on available-for-sale securities of EUR 1,183 million
(2006: EUR 4,671 million), changes in the fair value of cash ow hedges
of EUR 28 million (2006: EUR 8 million) and the revaluation of assets
and liabilities of acquired companies in the context of multi-stage
acquisitions of EUR 133 million (2006: EUR 167 million). Unrealized
gains on available-for-sale securities declined mainly as a result of
the reduction of Philips’ interest in TSMC.
As of December 31, 2007, the item ‘Legal reserve afliated companies’
relates to investments in afliated companies (‘wettelijke reserve
deelnemingen’) of EUR 1,343 million (2006: EUR 1,291 million).
As of December 31, 2007, the item ‘Legal reserve currency translation
differences’ relates to a cumulative currency translation loss of
EUR 613 million (2006: prot of EUR 235 million).
Limitation in the distribution of stockholders’ equity
Pursuant to Dutch law certain limitations exist relating to the
distribution of stockholders’ equity. As a further explanation it
should be noted that, as of December 31, 2007, such limitations relate
to common stock of EUR 228 million (2006: EUR 228 million) as well
as to legal reserves included under ‘revaluation’ of EUR 1,344 million
(2006: EUR 4,846 million) and ‘afliated companies’ of EUR 1,343 million
(2006: EUR 1,291 million), totaling EUR 2,915 million (2006: EUR
6,600 million).
It is noted that any gains relating to currency translation differences
further reduce the distributable stockholders’ equity (as of December
31, 2006 in the amount of EUR 235 million). By their nature losses
relating to currency translation differences (as of December 31, 2007
in the amount of EUR 613 million) automatically reduce stockholders’
equity, and thereby distributable amounts.
I
Net income
Net income in 2007 amounted to a prot of EUR 4,655 million
(2006: a prot of EUR 4,664 million).
128 Group nancial statements 188 IFRS information 240 Company nancial statements
- Auditor’s report