Contractual obligations

Contractual cash obligations at December 31, 20131)
 
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 is 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. 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 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

The long-term operating lease commitments are mainly related to the rental of buildings. A number of these leases originate from sale-and-leaseback arrangements. Operating lease payments under sale-and-leaseback arrangements for 2013 totaled EUR 42 million (2012: EUR 35 million).

The remaining minimum payments from operating leases originating from sale-and-leaseback arrangements are as follows:

 
2014
42
2015
37
2016
36
2017
35
2018
34
Thereafter
171

Finance lease liabilities

 
 
2012
2013
 
future minimum lease payments
interest
present value of minimum lease payments
future minimum lease payments
interest
present value of minimum lease payments
 
 
 
 
 
 
 
Less than one year
73
7
65
61
7
54
Between one and five years
137
25
113
112
20
92
More than five years
88
23
65
68
15
53
 
298
55
243
241
42
199

Philips entered into contracts with several venture capitalists where it committed itself to make, under certain conditions, capital contributions to investment funds to an aggregated amount of EUR 40 million (2012: EUR 48 million) until June 30, 2021. As at December 31, 2013 capital contributions already made to these investment funds are recorded as available-for-sale financial assets within Other non-current financial assets.

Based on its 30% share in the TP Vision venture, Philips had various commitments to provide further funding to the TP Vision venture at December 31, 2013 (see note (32) Related-party transactions).

On 20 January 2014, Philips has signed a term sheet to transfer its remaining 30% stake in the TP Vision venture, which will also impact the above commitments (see note (36) Subsequent events).

See also note (7) Discontinued operations and other assets classified as held for sale for further details on the Television business divestment.

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This is an interactive electronic version of the Philips Annual Report 2013 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the full Philips Annual Report 2013. This printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, IFRS basis of presentation, use of non-GAAP information, statutory financial statements and management report, reclassifications and analysis of 2013 compared to 2012.