Philips 2013 Annual Report Download - page 51

4 Group performance 4.1.23 - 4.1.23
Annual Report 2013 51
Contractual cash obligations at December 31, 2013
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) 3,472 308 2 900 2,262
Finance lease
obligations 241 61 78 34 68
Short-term debt 230 230 − − −
Operating leases 1,017 237 316 182 282
Derivative liabilities 337 112 93 92 40
Interest on debt3) 2,421 185 346 315 1,575
Purchase
obligations4) 184 81 76 26 1
Trade and other
payables 2,462 2,462 − − −
10,364 3,676 911 1,549 4,228
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 20% 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, 2013 approximately
EUR 343 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 post-
employment benefit plans in many countries in
accordance with legal requirements, customs and the
local situation in the countries involved. For a
discussion of the plans and expected cash outflows,
please refer to note 30, Post-employment benefits.
The Company had EUR 203 million restructuring-
related provisions by the end of 2013, of which EUR 128
million is expected to result in cash outflows in 2014.
Refer to note 21, Provisions for details of restructuring
provisions and potential cash flow impact for 2014 and
further.
A proposal will be submitted to the General Meeting of
Shareholders to declare a distribution of EUR 0.80 per
common share (up to EUR 740 million), in cash or shares
at the option of the shareholder, against the net income
for 2013. Further details will be given in the agenda for
the General Meeting of Shareholders, to be held on
May 1, 2014.
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 2013, 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 o-
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, 2012 and 2013.
Expiration per period
in millions of euros
total
amounts
committed
less than 1
year 1-5 years after 5 years
2013
Business-
related
guarantees 292 107 117 68
Credit-
related
guarantees 41 19 7 15
333 126 124 83
2012
Business-
related
guarantees 295 113 114 68
Credit-
related
guarantees 27 11 − 16
322 124 114 84