Philips 2008 Annual Report Download - page 238

59
Long-term debt
range of
interest rates
average rate of
interest
amount
outstanding due in 1 year
due after 1
year
due after 5
years
average
remaining term
(in years)
amount
outstanding
2007
Eurobonds 6.1-6.1% 6.1% 750 −750 −2.4 2,442
USD bonds 3.3-7.8% 5.9% 2,547 −2,547 1,841 14.0 357
Convertible
debentures 1.7-1.7% 1.7% 81 72 9 −2.6 103
Private
financing 1.0-12.4% 4.5% 8 1 7 −1.8 9
Bank
borrowings 1.0-16.3% 5.1% 11 −11 4 3.6 4
Finance Leases 1.0-11.3% 3.0% 140 9 131 46 3.9 94
Other
long-term debt 2.0-16.4% 5.2% 65 54 11 1 1.4 58
5.7% 3,602 136 3,466 1,892 3,067
Corresponding
data of previous
year 5.9% 3,067 1,854 1,213 416 3,222
The following amounts of long-term debt as of December 31, 2008,
are due in the next five years:
2009 136
2010 75
2011 1,020
2012 14
2013 465
Total 1,710
Corresponding amount of previous year 2,651
In March 2008, Philips placed a total of USD 3,100 million of debt
which consisted of a floating rate note for USD 350 million, and 3
fixed rate bonds totaling USD 2,750 million. The weighted average
interest rate of the new bonds was 5.66% at December 31, 2008.
Philips used the proceeds of this offering to refinance the EUR 1,691
million worth of notes that matured in the first half of 2008. As of
December 31, 2008, Philips had outstanding public bonds of EUR
3,297 million previously issued mostly in USD or EUR.
effective
rate 2007 2008
Unsecured Eurobonds
Due 2/06/08; 7 1/8% 7.302% 130 −
Due 5/14/08; 7% 7.094% 61 −
Due 5/16/08; 5 3/4% 5.817% 1,500 −
Due 5/16/11; 6 1/8% 6.122% 750 750
Adjustments1) 1−
2,442 750
Unsecured USD Bonds
Due 5/15/25; 7 3/4% 7.429% 67 70
Due 6/01/26; 7 1/5% 6.885% 113 118
Due 8/15/13; 7 1/4% 6.382% 97 101
Due 5/15/25; 7 1/8% 6.794% 70 73
Due 11/03/11; 3 3/8% 3.128% −248
Due 11/03/13; 4 5/8% 4.949% −355
Due 11/03/18; 5 3/4% 6.066% −887
Due 11/03/38; 6 7/8% 7.210% −710
Adjustments1) 10 (15)
357 2,547
Adjustments relate to issued bond discounts, transaction costs and fair value
1)
adjustments for interest rate derivatives.
The provisions applicable to all corporate bonds that have been
issued by the Company in March 2008, contain a ‘Change of Control
Triggering Event’. This means that if the Company would experience
such an event with respect to a series of corporate bonds the Company
may be required to offer to purchase the bonds of that series at a
purchase price equal to 101% of their principal amount, plus accrued
and unpaid interest, if any.
Secured liabilities
In 2008, EUR 3.5 million of long-term and short-term debt was
secured by collateral of EUR 3.4 million manufacturing assets
(2007: EUR nil).
60
Other non-current liabilities
Other non-current liabilities are summarized as follows:
2007 2008
Accrued pension costs 359 932
Income tax payable 1 1
Asset retirement obligations 21 20
Other tax liability 429 452
Other liabilities 84 35
894 1,440
Please refer to note 42 for a specification 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 127 1,027 462 1,846 3,462
Finance leases 9 68 17 46 140
Operating
leases 166 229 137 178 710
302 1,324 616 2,070 4,312
Philips Annual Report 2008238
180
Sustainability performance
244
Company financial statements
124
US GAAP financial statements
192
IFRS financial statements
Notes to the IFRS financial
statements