Philips 2010 Annual Report Download - page 205

14 Company financial statements 14.4 - 14.4 E F G H I J K
Annual Report 2010 205
ELong-term debt and short-term debt
Long-term debt
(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
outstanding
2009
Eurobonds 6.1% 6.1% 750 750 − − − 750
USD bonds 1.4 - 7.8% 5.7% 2,687 262 2,425 1,943 12.0 2,494
Convertible debentures 0.3% 0.3% 38 38 − − − 51
Intercompany financing 0.1 - 6.5% 0.6% 211 211 − − − 571
Bank borrowings 2.6 - 3.0% 2.8% 250 − 250 − 3.1 250
Other long-term debt 3.3 - 18.1% 5.5% 54 51 3 − 1.9 61
3,990 1,312 2,678 1,943 4,177
Corresponding data previous year 4,177 675 3,502 1,803 4,155
The following amounts of the long-term debt as of December 31, 2010,
are due in the next five years:
2011 1,312
2012 −
2013 482
2014 250
2015 3
2,047
Corresponding amount previous year 2,374
Convertible debentures include Philips personnel debentures. For
more information, please refer to note 18.
Short-term debt
Short-term debt includes the current portion of outstanding external
and intercompany long-term debt of EUR 1,312 million (2009: EUR 675
million), other debt to group companies totaling EUR 5,869 million
(2009: EUR 4,335 million) and short-term bank borrowings of EUR 63
million (2009: EUR 57 million).
FOther current liabilities
2009 2010
Income tax payable − 79
Other short-term liabilities 23 40
Accrued expenses 252 227
Derivative instruments - liabilities 368 1,008
643 1,354
GNet income
Net income in 2010 amounted to a gain of EUR 1,446 million (2009: a
gain of EUR 410 million). The increase of net results in 2010 compared
to 2009 is especially realized by affiliated companies.
HEmployees
The number of persons employed by the Company at year-end 2010
was 11 (2009: 12) and included the members of the Board of
Management and the members of the Group Management Committee.
For the remuneration of past and present members of both the Board
of Management and the Supervisory Board, please refer to note 31,
which is deemed incorporated and repeated herein by reference.
IContingent liabilities not appearing in the balance
sheet
General guarantees as referred to in Section 403, Book 2, of the Dutch
Civil Code, have been given by the Company on behalf of several group
companies in the Netherlands. The liabilities of these companies to
third parties and investments in associates totaled EUR 1,434 million as
of year-end 2010 (2009: EUR 1,038 million). Guarantees totaling EUR
266 million (2009: EUR 294 million) have also been given on behalf of
other group companies and credit guarantees totaling EUR 29 million
(2009: EUR 33 million) on behalf of unconsolidated companies and third
parties. The Company is the head of a fiscal unity that contains the most
significant Dutch wholly-owned group companies. The Company is
therefore jointly and severally liable for the tax liabilities of the tax entity
as a whole. For additional information, please refer to note 24.
JAudit fees
For a summary of the audit fees, please refer to the Supervisory Board
report, table ‘Fees KPMG’ section 11.3, Report of the Audit
Committee, of this Annual Report.
KSubsequent events
Acquisiton of Optimum Lighting LLC
On January 5, 2011 Philips announced that it acquired Optimum
Lighting LLC, a privately owned company domiciled in the US,
specialized in customized energy-efficient lighting solutions for the
office, industry and retail segments.
Acquisition of Preethi business
On January 24, 2011, Philips announced that it has agreed to acquire the
assets of the Preethi business, a kitchen appliances company in India.
Upon closing of this transaction, which is subject to certain contractual
and other conditions such as regulatory approval, Preethi will become
part of the Domestic Appliances business group within Philips’
Consumer Lifestyle sector.
February 17, 2011
The Supervisory Board
The Board of Management