Philips 2015 Annual Report Download - page 177

H I J K L Company nancial statements 13.4
Annual Report 2015 177
HDebt
Long-term debt
Koninklijke Philips N.V.
Long-term debt in millions of EUR, unless otherwise stated
2014 - 2015
(range of)
interest
rates
average
interest rate
amount
outstanding
in 2015
amount due
in 1 year
amount due
after 1 year
amount due
after 5 years
average
remaining
term (in
years)
amount
outstanding
in 2014
USD bonds 3.8 - 7.8% 5.6% 3,733 3,733 2,595 12 3,355
Intercompany
nancing 0.0 - 7.7% 1.9% 1,660 1,660 3,025
Bank borrowings 1.13-1.33% 1.3% 200 200 200 6 200
Other long-term debt 1.3-7.0% 3.9% 39 39 1 43
5,632 1,699 3,933 2,795 6,623
Corresponding data
previous year 6,623 3,068 3,555 2,533 5,751
The following amounts of the long-term debt as of
December 31, 2015, are due in the next ve years:
Koninklijke Philips N.V.
Long-term debt due in the next ve years in millions of EUR
2015
2016 1,699
2017
2018 1,138
2019
2020
Long -term debt 2,837
Corresponding amount previous year 4,090
Short-term debt
Short-term debt includes the current portion of
outstanding external and intercompany long-term debt
of EUR 1,699 million (2014: EUR 3,068 million), other
debt to group companies totaling EUR 11,578 million
(2014: EUR 10,929 million) and short-term bank
borrowings of EUR 1,245 million (2014: EUR 63 million).
IOther current liabilities
Koninklijke Philips N.V.
Other current liabilities in millions of EUR
2014 - 2015
2014 2015
Other short-term liabilities 63 59
Accrued expenses 138 127
Derivative instruments - liabilities 458 314
Other current liabilities 659 500
JEmployees
The number of persons employed by the Company at
year-end 2015 was 7 (2014: 9). For the remuneration of
past and present members of both the Board of
Management and the Supervisory Board, please refer to
note 29, Information on remuneration, which is deemed
incorporated and repeated herein by reference.
KContractual obligations and contingent
liabilities not appearing in the balance sheet
The Company has entered into a contract with a venture
capitalist where it committed itself to make, under certain
conditions, capital contributions to its investment funds
to an aggregated amount of EUR 22 million (2014: EUR 35
million) until June 30, 2021. As at December 31, 2015
capital contributions already made to this investment
fund are recorded as available-for-sale financial assets
within Other non-current financial assets. Furthermore,
the Company made commitments to third parties in 2015
of EUR 26 million (2014: EUR 10 million) with respect to
sponsoring activities. The majority of the amounts are due
over a term of 10 years.
General guarantees as referred to in Section 403, Book 2,
of the Dutch Civil Code, have been given by the Company
on behalf of several group companies in the Netherlands.
The liabilities of these companies to third parties and
investments in associates totaled EUR 1,374 million as of
year-end 2015 (2014: EUR 1,546 million).
Guarantees totaling EUR 698 million (2014: EUR 636
million) have also been given on behalf of other group
companies. As at December 31, 2015 there has been no
credit guarantees given on behalf of unconsolidated
companies and third-parties (2014: EUR 4 million). The
Company is the head of a fiscal unity that contains the
most significant Dutch wholly-owned group companies.
The Company is therefore jointly and severally liable for
the tax liabilities of the tax entity as a whole. For
additional information, please refer to note 26,
Contingent assets and liabilities, which is deemed
incorporated and repeated herein by reference.
LSubsequent events
Financing Volcano
In 2015, Philips nanced the acquisition of Volcano with
a short-term loan of USD 1.3 billion. Philips decided in
December 2015 to amend and extend the loan which
was actually executed in January 2016. The loan will
mature in December 2016.