Philips 2015 Annual Report Download - page 152

Group nancial statements 12.9 21 22
152 Annual Report 2015
Philips Group
Key assumptions in millions of EUR
2015
Dened benet obligation
Pension
Netherlands
Pension
other
Retiree
medical
Increase
Discount rate (1% movement) (468) (18)
Wage change (1% movement) 23
Ination (1% movement) 115
Longevity (see explanation) 80 7
Medical benet level (1% price
increase) 13
Decrease
Discount rate (1% movement) 550 20
Wage change (1% movement) (20)
Ination (1% movement) (104)
Philips Group
Key assumptions in millions of EUR
2014
Dened benet obligation
Pension
Netherlands
Pension
other
Retiree
medical
Increase
Discount rate (1% movement) (2,309) (1,056) (18)
Wage change (1% movement) 107 31 -
Ination (1% movement) 1,341 555 -
Longevity (see explanation) 492 267 7
Medical benet level (1% price
increase) - - 14
Decrease
Discount rate (1% movement) 2,998 1,250 19
Wage change (1% movement) (132) (28) -
Ination (1% movement) (1,185) (486) -
Longevity also impacts post-employment dened
benet obligation. The above sensitivity table
illustrates the impact on the dened-benet obligation
of a further 10% decrease in the assumed rates of
mortality for the Company’s major schemes. A 10%
decrease in assumed mortality rates equals
improvement of life expectancy by 0.5 - 1 year.
Changes in assumed healthcare cost trend rates can
have a signicant eect on the amounts reported for the
retiree medical plans. A 1%-point increase in medical
benet level is therefore included in the above table as
a likely scenario.
21 Accrued liabilities
Accrued liabilities are summarized as follows:
Philips Group
Accrued liabilities in millions of EUR
2014 - 2015
2014 2015
Personnel-related costs:
- Salaries and wages 502 567
- Accrued holiday entitlements 179 180
- Other personnel-related costs 119 196
Fixed-asset-related costs:
- Gas, water, electricity, rent and other 47 53
Communication and IT costs 51 46
Distribution costs 112 107
Sales-related costs:
- Commission payable 17 20
- Advertising and marketing-related costs 161 168
- Other sales-related costs 68 54
Material-related costs 132 147
Interest-related accruals 56 69
Deferred income 869 932
Other accrued liabilities 379 324
Accrued liabilities 2,692 2,863
22 Other liabilities
Other non-current liabilities
Other non-current liabilities are summarized as follows:
Philips Group
Other non-current liabilities in millions of EUR
2014 - 2015
2014 2015
Accrued pension costs 1,061 970
Deferred income 176 257
Other tax liability 499 454
Other liabilities 102 101
Other non-current liabilities 1,838 1,782
The decrease in the accrued pension costs is mainly
attributable to the US dened benet plan. See also
note 20, Post-employment benets.
For further details on tax related liabilities refer to
note 8, Income taxes.
Other current liabilities
Other current liabilities are summarized as follows:
Philips Group
Other current liabilities in millions of EUR
2014 - 2015
2014 2015
Accrued customer rebates that cannot be oset
with accounts receivables for those customers 535 544
Advances received from customers on orders
not covered by work in process 312 375
Other taxes including social security premiums 176 177
Other liabilities 368 177
Other current liabilities 1,391 1,273