Philips 2014 Annual Report Download - page 149

18 19 Group nancial statements 12.9
Annual Report 2014 149
18 Debt
Long-term debt
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2013 - 2014
(range of)
interest rates
average rate
of interest
amount
outstanding
2014
amount due
in 1 year
amount due
after 1 year
amount due
after 5 years
average
remaining
term (in
years)
amount
outstanding
2013
USD bonds 3.8 - 7.8% 5.6% 3,355 – 3,355 2,333 12.7 2,958
Bank borrowings 0 - 7.8% 1.9% 258 51 207 201 5.7 466
Other long-term
debt 2.1 - 19.9% 4.9% 52 43 9 1 1.4 48
Institutional
nancing 3,665 94 3,571 2,535 3,472
Finance leases 0 - 14.4% 3.8% 195 54 141 43 3.8 199
Long-term debt 5.2% 3,860 148 3,712 2,578 3,671
Corresponding
data of previous
year 5.0% 3,671 362 3,309 2,315 3,976
The following amounts of long-term debt as of
December 31, 2014, are due in the next ve years:
Philips Group
Long-term debts due in the next ve years in millions of EUR
2013 - 2014
2015 148
2016 43
2017 32
2018 1,046
2019 13
Long term debt 1,282
Corresponding amount of previous year 1,356
Philips Group
Unsecured USD Bonds in millions of EUR unless otherwise stated
2013 - 2014
eective
rate 2013 2014
Due 5/15/25; 7 3/4% 7.429% 72 81
Due 6/01/26; 7 1/5% 6.885% 120 136
Due 5/15/25; 7 1/8% 6.794% 74 84
Due 3/11/18; 5 3/4%1) 6.066% 907 1,028
Due 3/11/38; 6 7/8%1) 7.210% 726 823
Due 3/15/22; 3 3/4%1) 3.906% 726 823
Due 3/15/42; 5%1) 5.273% 363 411
Adjustments2) (30) (31)
Unsecured USD Bonds 2,958 3,355
1) The provisions applicable to these bonds, issued in March 2008 and in
March 2012, 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 oer 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 2014, none of the long-term and short-term debt was
secured by collateral (2013: EUR nil million).
Short-term debt
Philips Group
Short-term debt in millions of EUR
2013 - 2014
2013 2014
Short-term bank borrowings 207 225
Other short-term loans 23 19
Current portion of long-term debt 362 148
Short-term debt 592 392
During 2014, the weighted average interest rate on the
bank borrowings was 8.3% (2013: 6.4%).
Philips has a USD 2.5 billion Commercial Paper Program
and a EUR 1.8 billion revolving credit facility that can be
used for general group purposes and as a backstop of
its commercial paper program. In January 2013, the EUR
1.8 billion facility was extended by 2 years until
February 18, 2018. As of December 31, 2014 Philips did
not have any loans outstanding under either facility.
19 Provisions
Philips Group
Provisions in millions of EUR
2013 - 2014
2013 2014
long-
term
short-
term
long-
term
short-
term
Provisions for dened-
benet plans (see note 20) 754 51 881 52
Other postretirement
benets (see note 20) 200 14 226 16
Product warranty 59 207 77 225
Environmental provisions 249 62 301 59
Restructuring-related
provisions 75 128 150 230
Litigation provisions 232 4 480 173
Other provisions 334 185 385 190
Provisions 1,903 651 2,500 945