Philips 2015 Annual Report Download - page 144

Group nancial statements 12.9 19
144 Annual Report 2015
The following amounts of long-term debt as of
December 31, 2015, are due in the next ve years:
Philips Group
Long-term debts due in the next ve years in millions of EUR
2014 - 2015
2016 150
2017 53
2018 1,182
2019 18
2020 11
Long term debt 1,414
Corresponding amount of previous year 1,282
Philips Group
Unsecured USD Bonds in millions of EUR unless otherwise stated
2014 - 2015
eective
rate 2014 2015
Due 5/15/25; 7 3/4% 7.429% 81 91
Due 6/01/26; 7 1/5% 6.885% 136 152
Due 5/15/25; 7 1/8% 6.794% 84 94
Due 3/11/18; 5 3/4%1) 6.066% 1,028 1,144
Due 3/11/38; 6 7/8%1) 7.210% 823 915
Due 3/15/22; 3 3/4%1) 3.906% 823 915
Due 3/15/42; 5%1) 5.273% 411 458
Adjustments2) (31) (36)
Unsecured USD Bonds 3,355 3,733
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 2015, none of the long-term and short-term debt was
secured by collateral (2014: EUR nil million).
Short-term debt
Philips Group
Short-term debt in millions of EUR
2014 - 2015
2014 2015
Short-term bank borrowings 225 1,510
Other short-term loans 19 5
Current portion of long-term debt 148 150
Short-term debt 392 1,665
During 2015, the weighted average interest rate on the
bank borrowings was 1.6% (2014: 8.3%) due to the
bridging loan with low interest rate used for the Volcano
acquisition.
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 and will mature in
February 2018. As of December 31, 2015 Philips did not
have any loans outstanding under either facility.
19 Provisions
Philips Group
Provisions in millions of EUR
2014 - 2015
2014 2015
long-
term
short-
term
long-
term
short-
term
Provisions for dened-
benet plans (see note 20) 881 52 841 51
Other postretirement
benets (see note 20) 226 16 220 10
Product warranty 77 225 67 222
Environmental provisions 301 59 278 57
Restructuring-related
provisions 150 230 69 228
Litigation provisions 480 173 518 60
Other provisions 385 190 399 205
Provisions 2,500 945 2,392 833
Product warranty
The provision for product warranty reects the
estimated costs of replacement and free-of-charge
services that will be incurred by the Company with
respect to products sold. The Company expects the
provision to be utilized mainly within the next year.
Philips Group
Provision for product warranty in millions of EUR
2013 - 2015
2013 2014 2015
Balance as of January 1 319 266 302
Changes:
Additions 350 332 327
Utilizations (363) (316) (357)
Transfer to assets classied as held
for sale (24) (3) -
Translation dierences (16) 23 17
Balance as of December 31 266 302 289
Environmental provisions
The environmental provisions include accrued losses
recorded with respect to environmental remediation in
various countries. In the United States, subsidiaries of
the Company have been named as potentially
responsible parties in state and federal proceedings for
the clean-up of certain sites.
Provisions for environmental remediation can change
signicantly due to the emergence of additional
information regarding the extent or nature of the
contamination, the need to utilize alternative
technologies, actions by regulatory authorities as well
as changes in judgments and discount rates.