Related-party transactions

In the normal course of business, Philips purchases and sells goods and services from/to various related parties in which Philips typically holds a 50% or less equity interest and has significant influence. These transactions are generally conducted with terms comparable to transactions with third parties.

 
 
2011
2012
2013
 
 
 
 
Sales of goods and services
278
288
305
Purchases of goods and services
117
130
143
 
 
 
 
Receivables from related parties
19
13
39
Payables to related parties
6
4
4

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:

  • A subordinated shareholder loan of EUR 51 million (fully drawn) can be extended depending on the venture’s funding needs. EUR 21 million of this loan is due in April 2015 and EUR 30 million due in April 2017,
  • A senior 12-month EUR 30 million bridge loan facility (undrawn) to the venture can be extended up to April 2017 depending on the venture’s funding needs,
  • A committed EUR 60 million loan facility (undrawn) that can be extended up to April 2018, depending on the venture’s funding needs.

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 (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.

In light of the composition of the Executive Committee during 2012 and 2013, the Company considered the members of the Executive Committee and the Supervisory board to be the key management personnel as defined in IAS 24 ‘Related parties’. In 2011, the Company considered the members of the Board of Management and the Supervisory Board to be the key management personnel.

For remuneration details of the Executive Committee, the Board of Management and the Supervisory Board see note (33) Information on remuneration.

For employee benefit plans see note (30) Post-employment benefits.

(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.