Philips 2012 Annual Report Download - page 158

21 22 23 24 12 Group financial statements 12.11 - 12.11
158 Annual Report 2012
21 Other non-current liabilities
Other non-current liabilities are summarized as follows:
2011 2012
Accrued pension costs 1,191 1,163
Income tax payable 1 −
Asset retirement obligations 23 23
Other tax liability 566 488
Other liabilities 218 327
1,999 2,001
The decrease in the accrued pension costs is mainly attributable to the
funding of the Switzerland plans. See also note 29, Pensions and other
postretirement benefits.
For further details on tax related liabilities refer to note note 3, Income
taxes.
22 Accrued liabilities
Accrued liabilities are summarized as follows:
2011 2012
Personnel-related costs:
- Salaries and wages 459 590
- Accrued holiday entitlements 193 192
- Other personnel-related costs 159 148
Fixed-asset-related costs:
- Gas, water, electricity, rent and other 62 69
Distribution costs 96 114
Sales-related costs:
- Commission payable 62 52
- Advertising and marketing-related costs 121 149
- Other sales-related costs 236 118
Material-related costs 200 186
Interest-related accruals 65 75
Deferred income 878 824
Other accrued liabilities 495 654
3,026 3,171
23 Other current liabilities
Other current liabilities are summarized as follows:
2011 2012
Advances received from customers on orders not
covered by work in process 293 308
Other taxes including social security premiums 143 176
Other liabilities 611 1,071
1,047 1,555
On December 5, 2012 the Company announced that it received a fine
of EUR 313 million from the European Commission following an
investigation into alleged violation of competition rules in the Cathode-
Ray Tubes (CRT) industry. In addition, the European Commission has
ordered Philips and LG Electronics to be jointly and severally liable to
pay a fine of EUR 392 million for an alleged violation of competition
rules by LG.Philips Displays (LPD), a 50/50 joint venture between the
Company and LG Electronics. In 2006, LPD went bankrupt. The
aggregate of the amount of EUR 313 million and EUR 196 million (being
50% of the fine related to LPD) has been recorded under Other
liabilities.
24 Contractual obligations
Contractual cash obligations at December 31, 20121)
payments due by period
total
less than
1 year 1-3 years 3-5 years
after 5
years
Long-term debt2) 3,733 186 253 2 3,292
Finance lease
obligations 298 73 97 40 88
Short-term debt 558 558 − − −
Operating leases 1,219 240 368 236 375
Derivative liabilities 544 138 143 138 125
Interest on debt3) 2,802 201 376 360 1,865
Purchase obligations4) 289 133 105 36 15
Trade and other
payables 2,839 2,839 − − −
12,282 4,368 1,342 812 5,760
1) Data in this table is undiscounted
2) Long-term debt includes short-term portion of long-term debt and excludes
finance lease obligations
3) Approximately 28% of the debt bears interest at a floating rate. Majority of
the interest payments on variable interest rate loans in the table above reflect
market forward interest rates at the period end and these amounts may
change as market interest rate changes
4) Philips has commitments related to the ordinary course of business which in
general relate to contracts and purchase order commitments for less than 12
months. In the table, only the commitments for multiple years are presented,
including their short-term portion
Long-term operating lease commitments totaled EUR 1,219 million.
Majority of those leases will expire at various dates during the next 15
years. The long-term operating leases are mainly related to the rental
of buildings.
A number of these leases originate from sale-and-leaseback
arrangements. Operating lease payments under sale-and-leaseback
arrangements for 2012 totaled EUR 35 million (2011: EUR 16 million).
The increase in 2012 is related mainly to sale and lease back of real
estate belonging to the High Tech Campus.
The remaining minimum payments from operating leases originating
from sale-and-leaseback arrangements are as follows:
2013 41
2014 41
2015 38
2016 38
2017 39
Thereafter 237