Philips 2012 Annual Report Download - page 47

5 Group performance 5.1.23 - 5.1.23
Annual Report 2012 47
Contractual cash obligations at December 31, 2012
in millions of euros 1)
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 are 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. The 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 the 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
Philips has no material commitments for capital
expenditures.
Additionally, Philips has a number of commercial
agreements, such as supply agreements, which provide
that certain penalties may be charged to the Company if
it does not fulfill its commitments.
Certain Philips suppliers factor their trade receivables
from Philips with third parties through supplier finance
arrangements. At December 31, 2012 approximately EUR
310 million of the Philips accounts payables were known
to have been sold onward under such arrangements
whereby Philips confirms invoices. Philips continues to
recognize these liabilities as trade payables and will settle
the liabilities in line with the original payment terms of the
related invoices.
Other cash commitments
The Company and its subsidiaries sponsor pension plans
in many countries in accordance with legal requirements,
customs and the local situation in the countries involved.
Additionally, certain postretirement benefits are provided
in certain countries. The Company is reviewing the
funding of pension plans in the Netherlands, the US and
UK. Refer to note 29, Pensions and other postretirement
benefits for a discussion of the plans and expected cash
outflows.
The Company had EUR 385 million restructuring-
related provisions by the end of 2012, of which EUR 277
million is expected to result in cash outflows in 2013.
Refer to note 20, Provisions for details of restructuring
provisions and potential cash flow impact for 2012 and
further.
A proposal will be submitted to the General Meeting of
Shareholders to declare a distribution of EUR 0.75 per
common share (up to EUR 685 million), in cash or shares
at the option of the shareholder, against the net income
for 2012 and the retained earnings of the Company.
Further details will be given in the agenda for the General
Meeting of Shareholders, to be held on May 3, 2013.
Guarantees
Philips’ policy is to provide guarantees and other letters
of support only in writing. Philips does not provide other
forms of support. At the end of 2012, the total fair value
of guarantees recognized by Philips in other non-current
liabilities amounted to less than EUR 1 million. The
following table outlines the total outstanding off-balance
sheet credit-related guarantees and business-related
guarantees provided by Philips for the benefit of
unconsolidated companies and third parties as at
December 31, 2011 and 2012.
Expiration per period
in millions of euros
total
amounts
committed
less than 1
year 1-5 years after 5 years
2012
Business-
related
guarantees 295 113 114 68
Credit-
related
guarantees 27 11 − 16
322 124 114 84
2011
Business-
related
guarantees 297 99 126 72
Credit-
related
guarantees 39 22 − 17
336 121 126 89