Philips 2008 Annual Report Download - page 248

G
Long-term debt
Long-term debt and short-term-debt are 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
2007
Eurobonds 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% 81 72 9 −2.6 103
Intercompany financing 2.2-4.9% 3.0% 718 718 −−−2,161
Other long-term debt 4.7-16.4% 5.9% 59 54 5 −1.4 61
4,155 844 3,311 1,841 5,124
Corresponding data
previous year 5,124 4,001 1,123 357 4,769
The following amounts of the long-term debt as of December 31,
2008, are due in the next five years:
2009 844
2010 8
2011 1,001
2012 3
2013 458
2,314
Corresponding amount previous year 4,767
Convertible debentures include Philips personnel debentures.
For more information, please refer to note 58 and note 59.
H
Stockholders’ equity
Common shares
In 2008, the Company’s issued share capital was reduced by
170,414,994 shares, which were acquired pursuant to the EUR 5 billion
share repurchase program. As of December 31, 2008, the issued share
capital consists of 972,411,769 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, 2008,
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.
Any difference between the cost and the cash received at the time
treasury shares are issued, is recorded in capital in excess of par
value, except in the situation in which the cash received is lower
than cost, and capital in excess of par has been depleted.
In order to reduce potential dilution effects, the following
transactions took place:
2007 2008
Shares acquired 27,326,969 273
Average market
price EUR 29.65 EUR 24.61
Amount paid EUR 810 million −
Shares delivered 11,140,884 4,541,969
Average market
price EUR 30.46 EUR 23.44
Amount received EUR 199 million EUR 52 million
Total shares in
treasury at year-end 52,119,611 47,577,915
Total cost EUR 1,393 million EUR 1,263 million
In order to reduce capital stock, the following transactions took
place in 2007 and 2008:
2007 2008
Shares acquired 25,813,898 146,453,094
Average market
price EUR 31.87 EUR 22.52
Amount paid EUR 823 million EUR 3,298 million
Reduction of capital
stock −170,414,994
Total shares in
treasury at year-end 25,813,898 1,851,998
Total cost EUR 823 million EUR 25 million
Net income (loss) and distribution to shareholders
The net loss of 2008 will be accounted for in retained earnings.
A distribution of EUR 0.70 per common share will be proposed
to the 2009 Annual General Meeting of Shareholders.
Philips Annual Report 2008248
180
Sustainability performance
192
IFRS financial statements
124
US GAAP financial statements
145
Company financial statements
- Notes to the Company financial statements
- Auditor’s report