Global Reporting Initiative (GRI) table 4.0

KPMG has audited Chapter 11 Group financial statements and Chapter 12 Company financial statements, as well as sections 4.2 Social performance, 4.3 Environmental performance and Chapter 13 Sustainability statements. Where in the table cross-reference is made to these parts, the information is included in the scope of one of these audits. For the other information in the report, KPMG has assessed whether this information is consistent with the information in the aforementioned parts. Where there is no cross-reference to a section in the Report, assurance is not applicable. Please refer to sections 11.10, 12.5 and 13.4 for the independent auditor’s reports.

General Standard Disclosures
 
profile disclosure
description
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Strategy and analysis
 
 
 
 
G4-1
Statement from the most senior decision-maker of the organization (incl. strategy relates to sustainability, impacts of the activities in relation to the stakeholders)
 
 
G4-2
Description of key impacts, risks, and opportunities
 

 
 
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Organizational profile
 
 
 
 
G4-3
Name of the organization
 
 
G4-4
Primary brands, products, and/or services
 
 
G4-5
Location of organization’s headquarters
 
 
G4-6
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report
 
 
G4-7
Nature of ownership and legal form
 
 
G4-8
Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries)
 
 
G4-9
Scale of the reporting organization
 
 
G4-10
Total workforce by employment type, gender, employment contract and region
 
 
G4-11
Percentage of employees covered by collective bargaining agreements
For all Philips businesses, guidance is applicable regarding collective bargaining agreements.
The actual percentage of employees covered by collective bargaining agreements is managed and monitored at local level. Philips considers this percentage on consolidated level not relevant.
 
 
G4-12
Describe the organization’s supply chain (incl. product or service providers, engaged suppliers in total number, type, and location, payments made to suppliers)
Related content: Supplier Sustainability Involvement Program
 
 
G4-13
Significant changes during the reporting period relating to size, structure, or ownership or its supply chain (incl. changes in location, operations, facilities, capital information and supplier information)
 
 
G4-14
Explanation of whether and how the precautionary approach or principle is addressed by the organization
 
 
G4-15
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses
 
 
G4-16
Memberships in associations (such as industry associations)
Sustainability statements - “Stakeholders”
 

 
 
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Identified material aspects and boundaries
 
 
 
G4-17
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures
(List all entities in the consolidated financial statements)
 
 
G4-18
Process for defining report content and the Aspect Boundaries and explain how the Reporting Principles has been implemented
 
 
G4-19
List all the material Aspects identified
 
 
G4-20
The Aspect Boundary within the organization:
Whether the Aspect is material within the organization;
The list of entities included in G4-17 for which the Aspect is or is not material;
Specific limitation regarding the Aspect Boundary within the organization
 
 
G4-21
The Aspect Boundary outside the organization:
Whether the Aspect is material outside the organization;
The list of entities for which the Aspect is material, relate to geographical location;
Specific limitation regarding the Aspect Boundary outside the organization
 
 
G4-22
Explanation of the effect of any re-statements
Sustainability statements - “Comparability and completeness”
 
 
G4-23
Significant changes from previous reporting periods in the Scope and Aspect Boundaries
 

 
 
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description
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Stakeholder engagement
 
 
 
 
G4-24
List of stakeholder groups engaged by the organization
Sustainability statements - “Stakeholders”
 
 
G4-25
Basis for identification and selection of stakeholders with whom to engage
Sustainability statements - “Stakeholders”
 
 
G4-26
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
Sustainability statements - “Stakeholders”
 
 
G4-27
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting;
Report the stakeholder groups that raised each of the key topics and concerns
Sustainability statements - “Stakeholders”
 

 
 
profile disclosure
description
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Report profile
 
 
 
 
G4-28
Reporting period
 
 
G4-29
Date of most recent previous report
 
 
G4-30
Reporting cycle
 
 
G4-31
Contact point for questions regarding the report or its contents
 
 
G4-32
Table identifying the location of the Standard Disclosures in the report
 
 
G4-33
Policy and current practice with regard to seeking external assurance for the report
 

 
 
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Governance
 
 
 
 
 
G4-34
Governance structure of the organization
(incl. report the committees responsible for decision-making on economic, environmental and social impacts)
 
 
G4-35
Process for delegating authority for economic, environmental and social topics
 
 
G4-36
Whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body
 
 
G4-37
Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics (to whom, any feedback)
 
 
G4-38
The composition of the highest governance body and its committees
 
 
G4-39
Indicate whether the Chair of the highest governance body is also an executive officer
 
 
G4-40
Process for determining the qualifications and expertise of the members of the highest governance body
 
 
G4-41
Processes in place for the highest governance body to ensure, that conflicts of interest are avoided
 
 
G4-42
Roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals
 
 
G4-43
The measures taken to develop and enhance the highest governance body’s collective knowledge
 
 
G4-44
Processes for evaluating the highest governance body’s own performance
 
 
G4-45
Procedures of the highest governance body for overseeing the organization’s identification and management of performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles
 
 
G4-46
The highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics
 
 
G4-47
The frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities
 
 
G4-48
The highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered
 
 
G4-49
The process for communicating critical concerns to the highest governance body
 
 
G4-50
The nature and total number of critical concerns that were communicated to the highest governance body and the
mechanism(s) used to address and resolve them
 
 
G4-51
Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance
 
 
G4-52
The process for determining remuneration;
Whether remuneration consultants are involved
 
 
G4-53
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
 
 
G4-54
The ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country
Philips does not consider this indicator relevant, Philips makes an impact on local communities by the salaries it pays its employees. Salaries are based on industry norms as described in www.philips.com/gbp
(GBP - 4.4 Wages and payment)
 
 
G4-55
The ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country
Philips does not consider this indicator relevant, Philips makes an impact on local communities by the salaries it pays its employees. Salaries are based on industry norms as described in www.philips.com/gbp
 

 
 
profile disclosure
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Ethics and integrity
 
 
 
 
G4-56
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation
 
 
G4-57
The internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines
 
 
G4-58
The internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines
 

Specific Standard Disclosures
 
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Economic
 
 
 
 
Economic performance
 
 
 
 
G4-EC1
Direct economic value generated and distributed, including revenues, operating costs, employee wages and benefits, payments to providers of capital, payments to government (by country) and community investments;
EVG&D separately at country, regional or market level
 
 
G4-EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change
 
 
G4-EC3
Coverage of the organization’s defined-benefit plan obligations
 
 
G4-EC4
Significant financial assistance received from government
Philips does not receive significant financial assisstance from governments.
 
Market presence
 
 
 
 
G4-EC5
Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation
For all Philips businesses, guidance is applicable regarding equal and fair treatment and wages and payment.
(GBP - 4.3 Equal and fair treatment and 4.4 Wages and payment)
Actual ratios are managed and monitored at local level. Philips considers this ratio on consolidated level not relevant.
 
 
G4-EC6
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation
 
Indirect economic impacts
 
 
 
 
G4-EC7
Development and impact of infrastructure investments and services supported
 
 
G4-EC8
Significant indirect economic impacts, including the extent of impacts
 
Procurement practices
 
 
 
 
G4-EC9
Proportion of spending on local suppliers at significant locations of operation
Related content: Supplier sustainability
Related content: Involvement program
 

 
 
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Environment
 
 
 
 
Materials
 
 
 
 
 
G4-EN1
Materials used by weight or volume
 
 
G4-EN2
Percentage of materials used that are recycled input materials
 
Energy
 
 
 
 
 
G4-EN3
Energy consumption within the organization
 
 
G4-EN4
Energy consumption outside of the organization
Philips does not report this indicator in the Annual Report, but in the Carbon Disclosure Project (CDP) reporting.
 
 
G4-EN5
Energy intensity
 
 
G4-EN6
Reduction of energy consumption
 
 
G4-EN7
Reductions in energy requirements of products and services
 
Water
 
 
 
 
 
G4-EN8
Total water withdrawal by source
 
 
G4-EN9
Water sources significantly affected by withdrawal of water
Philips is not a water-intensive company, so this indicator is not applicable for Philips.
 
 
G4-EN10
Percentage and total volume of water recycled and reused
Philips is not a water-intensive company, so this indicator is not applicable for Philips.
 
Biodiversity
 
 
 
 
 
G4-EN11
Location and size of land owned, leased, managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas
This data is currently not available for all sites. Philips plans to report on this indicator in 2014.
 
 
G4-EN12
Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas
This data is currently not available for all sites. Philips plans to report on this indicator in 2014.
 
 
G4-EN13
Habitats protected or restored
This data is currently not available for all sites. Philips plans to report on this indicator in 2014.
 
 
G4-EN14
Total number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk
This data is currently not available for all sites. Philips plans to report on this indicator in 2014.
 
Emissions
 
 
 
 
 
G4-EN15
Direct greenhouse gas (GHG) emissions (Scope 1)
 
 
G4-EN16
Indirect greenhouse gas (GHG) emissions (Scope 2)
 
 
G4-EN17
Other indirect greenhouse gas (GHG) emissions (Scope 3)
 
 
G4-EN18
Greenhouse gas (GHG) emissions intensity
 
 
G4-EN19
Emissions of ozone-depleting substances (ODS)
 
 
G4-EN20
Emissions of ozone-depleting substances by weight
 
 
G4-EN21
NOx, SOx, and other significant air emissions
Philips does not report this indicator in the Annual Report, but in the Carbon Disclosure Project (CDP) reporting.
 
Effluents and Waste
 
 
 
 
G4-EN22
Total water discharge by quality and destination
Philips is not a water-intensive company, so this indicator is not applicable for Philips.
 
 
G4-EN23
Total weight of waste by type and disposal method
 
 
G4-EN24
Total number and volume of significant spills
 
 
G4-EN25
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention2 Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
 
 
G4-EN26
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s discharges of water and runoff
Biodiversity
This data is currently not available for all sites. Philips plans to report on this indicator in 2014.
 
Products and Services
 
 
 
 
G4-EN27
Extent of impact mitigation of environmental impacts of products and services
 
 
G4-EN28
Percentage of products sold and their packaging materials that are reclaimed by category
 
Compliance
 
 
 
 
 
G4-EN29
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
 
Transport
 
 
 
 
 
G4-EN30
Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce
 
Overall
 
 
 
 
 
G4-EN31
Total environmental protection expenditures and investments by type
 
Biodiversity
Philips does not monitor such expenditures at Group level
 
Supplier environmental assessment
 
 
 
 
G4-EN32
Percentage of new suppliers that were screened using environmental criteria
 
 
G4-EN33
Significant actual and potential negative environmental impacts in the supply chain and actions taken
 
Environmental grievance mechanisms
 
 
 
 
G4-EN34
Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms
 
Green Operations - environmental incidents
 

 
 
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Labor practices and decent work
 
 
Employment
 
 
 
 
 
G4-LA1
Total workforce by employment type, employment contract and region
 
 
G4-LA2
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation
Benefits provided are fully compliant with all applicable national laws.
(GBP Directives - 9.10 Employment conditions)
 
 
G4-LA3
Return to work and retention rates after parental leave, by gender
For all Philips businesses, guidance is applicable regarding equal and fair treatment.
(GBP Directives - 9.7 Equal and fair treatment)
Actual rates are managed and monitored at local level. Philips considers this rate on consolidated level not relevant.
 
Labor/Management relations
 
 
 
 
G4-LA4
Minimum notice periods regarding operational changes, including whether these are specified in collective agreements
For all Philips businesses, guidance is applicable regarding Employment conditions.
(GBP Directives - 9.10 Employment conditions)
Notice periods are managed and monitored at local level. Philips considers this data on consolidated level not relevant.
 
Occupational health and safety
 
 
 
 
G4-LA5
Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs
On sector level, different initiatives exist to help decrease the number and severeness of Lost Workday Injuries cases.
The percentage of total workforce represented is managed and monitored at local level. Philips considers this data on consolidated level not relevant.
 
 
G4-LA6
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender
Sustainability world map
On site level, insights exist in gender specific information. Philips considers this data on consolidated level not relevant.
 
 
G4-LA7
Workers with high incidence or high risk of diseases related to their occupation
 
 
G4-LA8
Health and safety topics covered in formal agreements with trade unions
(GBP - 4.1 Right to organize and 4.2 Health and safety)
The content of formal agreements with trade unions varies per country. The inclusion of Health and Safety topics in these agreements is monitored locally and not considered relevant to be reported at Group level.
 
Training and education
 
 
 
 
G4-LA9
Average hours of training per year per employee by gender, and by employee category
The number of enrollments and the training spend are managed and monitored on consolidated level. The hours of training per year per employee are managed and monitored on local level. Philips considers these data on consolidated level not relevant.
 
 
G4-LA10
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
 
 
G4-LA11
Percentage of employees receiving regular performance and career development reviews, by gender and by employee category
Philips implemented a semi-annual performance review, but does not track the percentage of employees benefitting from this centrally.
 
Diversity and equal opportunity
 
 
 
 
G4-LA12
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity
 
Equal remuneration for women and men
 
 
 
 
G4-LA13
Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
For all Philips businesses, guidance is applicable regarding equal and fair treatment and wages and payment. See www.philips.com/gbp
(GBP - 4.3 Equal and fair treatment and 4.4 Wages and payment). Actual ratios are managed and monitored at local level. Philips considers this ratio on consolidated level not relevant.
 
Supplier assessment for labor practices
 
 
 
 
G4-LA14
Percentage of new suppliers that were screened using labor practices criteria
 
 
G4-LA15
Significant actual and potential negative impacts for labor practices in the supply chain and actions taken
 
Labor practices grievance mechanisms
 
 
 
 
G4-LA16
Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms
 

 
 
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Human rights
 
 
 
 
Investment
 
 
 
 
 
G4-HR1
Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
Philips does not monitor the percentage centrally.
 
 
G4-HR2
Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained
For all Philips businesses, guidance is applicable regarding employee training on human rights policies as part of the GBP. Total hours of employee training are managed and monitored at local level. Philips considers these data on consolidated level not relevant.
 
Non-discrimination
 
 
 
 
G4-HR3
Total number of incidents of discrimination and actions taken
 
Freedom of
association and collective bargaining
 
 
 
 
G4-HR4
Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights
 
Child Labor
 
 
 
 
 
G4-HR5
Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor
 
Forced or compulsory labor
 
 
 
 
G4-HR6
Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
 
Security practices
 
 
 
 
G4-HR7
Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations
The actual percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations is managed and monitored at local level. Philips considers this data on consolidated level not relevant.
 
Indigenous rights
 
 
 
 
G4-HR8
Total number of incidents of violations involving rights of indigenous people and actions taken
Philips is not operational in areas with indigenous people. Therefore this indicator is not relevant.
 
Assessment
 
 
 
 
 
G4-HR9
Total number and percentage of operations that have been subject to human rights reviews or impact assessments
The total number and percentage of operations that have been subject to human rights reviews or impact assessments are managed and monitored at local level. Philips considers this data on consolidated level not relevant.
 
Supplier human rights assessment
 
 
 
 
G4-HR10
Percentage of new suppliers that were screened using human rights criteria
 
 
G4-HR11
Significant actual and potential negative human rights impacts in the supply chain and actions taken
 
Human rights grievance mechanisms
 
 
 
 
G4-HR12
Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms
 

 
 
profile disclosure
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Society
 
 
 
 
Local Communities
 
 
 
G4-SO1
Percentage of operations with implemented local community engagement, impact assessments, and development programs
Philips has groupwide community involvement programs and policies that its sites implement and evaluate at local level. Philips does not consider the calculation of an overall percentage as relevant in this context.
 
 
G4-SO2
Operations with significant actual or potential negative impacts on local communities
Sustainability world map
 
Anti-corruption
 
 
 
 
 
G4-SO3
Total number and percentage of operations assessed for risks related to corruption and the significant risks identified
 
 
G4-SO4
Communication and training on anti-corruption policies and procedures
 
 
G4-SO5
Confirmed incidents of corruption and actions taken
 
Public Policy
 
 
 
 
 
G4-SO6
Total value of political contributions by country and recipient/beneficiary
Philips does not make political contributions as defined in www.philips.com/gbp
(GBP Directives - chapter 7 Dealing with governments, political parties and politicians)
 
Anti-competitive Behavior
 
 
 
 
G4-SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
 
Compliance
 
 
 
 
 
G4-SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
 
Supplier assessment for impacts on society
 
 
 
 
G4-SO9
Percentage of new suppliers that were screened using criteria for impacts on society
 
 
G4-SO10
Significant actual and potential negative impacts on society in the supply chain and actions taken
 
Grievance mechanisms for impacts on society
 
 
 
 
G4-SO11
Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms
Green Operations - “Environmental incidents”
 

 
 
profile disclosure
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Product responsibility
 
 
 
Customer health and safety
 
 
 
 
G4-PR1
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures
 
 
G4-PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes
Philips plans to report on this indicator in 2014. Information on current consumer product recalls can be found at www.recall.philips.com.
 
Product and service labeling
 
 
 
 
G4-PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements
 
 
G4-PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes
Philips plans to report on this indicator in 2014.
 
 
G4-PR5
Results of surveys measuring customer satisfaction
Philips measures the Net Promoter Scores, but does not disclose these for confidentiality reason.
 
Marketing communications
 
 
 
 
G4-PR6
Sale of banned or disputed products
Philips plans to report on this indicator in 2014. Refer also to www.philips.com/gbp
 
 
G4-PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes
Philips plans to report on this indicator in 2014. Refer also to www.philips.com/gbp
 
Customer privacy
 
 
 
 
G4-PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
 
Compliance
 
 
 
 
 
G4-PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services
 

Disclosure of management approach
Material aspects
DMA and Indicators
Omissions
 
Sustainability statements - “Key material aspects”
Sustainability statements - “Key material aspects”
Global Reporting Initiative (GRI) table 4.0 - “Specific Standard Disclosures”
Sustainability statements - “Key material aspects” (Footnote 1)

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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.