Long-term debt and short-term debt

Long-term debt

 
 
(range of) interest rates
average rate of interest
amount outstanding 2013
due in 1 year
due after 1 year
due after 5 years
average remaining term (in years)
amount outstanding 2012
 
 
 
 
 
 
 
 
 
USD bonds
3.8 - 7.8%
5.6%
2,958
2,958
2,059
13.7
3,198
Convertible debentures
0 - 0%
12
Private financing
0 - 0%
2
Bank borrowings
0 - 7.8%
2.0%
466
260
206
203
3.6
469
Other long-term debt
0 - 19.0%
4.4%
48
48
1.0
52
 
 
 
3,472
308
3,164
2,262
 
3,733
Finance leases
0.7 - 15.1%
3.8%
199
54
145
53
6.3
243
 
 
5.0%
3,671
362
3,309
2,315
 
3,976
Corresponding data of previous year
 
5.2%
3,976
251
3,725
3,357
 
3,417

The following amounts of long-term debt as of December 31, 2013, are due in the next five years:

 
2014
362
2015
42
2016
26
2017
16
2018
910
Total
1,356
Corresponding amount of previous year
619

 
 
effective rate
2012
2013
Unsecured USD Bonds
 
 
 
Due 5/15/25; 7 3/4%
7.429%
75
72
Due 6/01/26; 7 1/5%
6.885%
126
120
Due 8/15/13; 7 1/4%
6.382%
108
Due 5/15/25; 7 1/8%
6.794%
78
74
Due 3/11/18; 5 3/4%1)
6.066%
948
907
Due 3/11/38; 6 7/8%1)
7.210%
758
726
Due 3/15/22; 3.750%1)
3.906%
758
726
Due 3/15/42; 5.000%1)
5.273%
379
363
Adjustments2)
 
(32)
(30)
 
 
3,198
2,958
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 offer 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 2013, none of the long-term and short-term debt was secured by collateral (2012: EUR nil million).

Short-term debt

 
 
2012
2013
 
 
 
Short-term bank borrowings
533
207
Other short-term loans
25
23
Current portion of long-term debt
251
362
 
809
592

During 2013, the weighted average interest rate on the bank borrowings was 6.4% (2012: 7.8%).

In the Netherlands, the Company issued personnel debentures with a 5-year right of conversion into common shares of Koninklijke Philips NV. Convertible personnel debentures may not be converted within a period of 3 years after the date of issue. These convertible personnel debentures were available to most employees in the Netherlands and were purchased by them with their own funds and were redeemable on demand. The convertible personnel debentures become non-convertible debentures at the end of the conversion period.

Although convertible debentures have the character of long-term financing, the total outstanding amounts have been classified as current portion of long-term debt. At December 31, 2013 the conversion period ended, so none were outstanding (2012: EUR 12 million). The conversion price varied between EUR 14.2 and EUR 24.6 with various conversion periods ending between January 1, 2013 and December 31, 2013. As of January 1, 2009, Philips no longer issues these debentures.

Furthermore, 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 corporate 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, 2013 Philips did not have any loans outstanding under either facility.

(0)
(0)
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.