Philips 2009 Annual Report Download - page 194

On February 18, 2010, Philips signed a new five-year EUR 1.8 billion
revolving credit facility to replace the existing USD 2.5 billion facility.
21 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
2008
Eurobonds 6.1-6.1% 6.1% 750 − 750 − 1.4 750
USD bonds 1.4-7.8% 5.7% 2,494 − 2,494 1,803 13.0 2,547
Convertible
debentures 1.5-1.5% 1.5% 51 51 − − − 81
Private financing 1.0-6.0% 4.6% 7 6 1 − 2.2 8
Bank borrowings 0.4-14.8% 3.2% 277 4 273 3 4.0 11
Finance leases 0.7-11.8% 3.1% 138 31 107 41 4.1 140
Other long-term
debt 2.0-18.1% 5.5% 69 54 15 1 3.1 65
3,786 146 3,640 1,848 3,602
Corresponding data
of previous year 5.7% 3,602 136 3,466 1,892 3,067
The following amounts of long-term debt as of December 31, 2009, are
due in the next five years:
2010 146
2011 1,047
2012 22
2013 464
2014 259
Total 1,938
Corresponding amount of previous year 1,710
In January 2009, Philips drew upon a EUR 250 million 5-year floating rate
long-term loan for general business purposes. The interest rate for this
new loan was 2.735% at December 31, 2009.
effective
rate 2008 2009
Unsecured Eurobonds
Due 5/16/11; 6 1/8% 6.122% 750 750
Unsecured USD Bonds
Due 5/15/25; 7 3/4% 7.429% 70 69
Due 6/01/26; 7 1/5% 6.885% 118 115
Due 8/15/13; 7 1/4% 6.382% 101 99
Due 5/15/25; 7 1/8% 6.794% 73 71
Due 11/03/11; 3 3/8%1) 3.128% 248 243
Due 11/03/13; 4 5/8%1) 4.949% 355 347
Due 11/03/18; 5 3/4%1) 6.066% 887 868
Due 11/03/38; 6 7/8%1) 7.210% 710 694
Adjustments2) (15) (12)
2,547 2,494
1) The provisions applicable to these bonds, issued in March 2008, contain a
‘Change of Control Triggering Event’. 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 the series at a purchase price equal to
101% of the principal amount, plus accrued and unpaid interest, if any.
2) Adjustments relate to issued bond discounts, transaction costs and fair value
adjustments for interest rate derivatives.
Secured liabilities
In 2009, EUR 3.5 million of long-term and short-term debt was secured
by collateral of EUR 3.7 million manufacturing assets (2008: EUR 3.4
million).
22 Other non-current liabilities
Other non-current liabilities are summarized as follows:
2008 2009
Accrued pension costs 932 1,307
Income tax payable 1 1
Asset retirement obligations 20 25
Other tax liability 452 486
Other liabilities 35 110
1,440 1,929
Please refer to note 5 for a specification on the income tax payable.
23 Contractual obligations
payments due by period
less than 1
year 1-3 years 3-5 years
more
than 5
years total
Long-term debt 115 1,022 704 1,807 3,648
Finance leases 31 47 19 41 138
Operating leases 175 237 123 131 666
321 1,306 846 1,979 4,452
For an explanation of long-term debt, see note 21; for other long-term
liabilities, see note 22. Property, plant and equipment includes EUR 138
million (2008: EUR 140 million) for finance leases.
Long-term operating lease commitments totaled EUR 666 million
(2008: EUR 710 million). These leases expire at various dates during the
next 20 years.
21 22 23 11 Group financial statements 11.12 - 11.12
194 Philips Annual Report 2009