Annual Report 2009
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Long-term debt

Auditor's report
Auditor's report on internal control
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range of interest rates
average rate of interest
amount outstanding
due in 1 year
due after 1 year
due after 5 years
average remaining term (in years)
amount outstanding 2008
 
 
 
 
 
 
 
 
 
Eurobonds
6.1-6.1%
6.1%
750
−
750
−
1.4
750
USD bonds
1.4-7.8%
5.7%
2,494
−
2,494
1,803
13.0
2,547
Convertible debentures
1.5-1.5%
1.5%
51
51
−
−
−
81
Private financing
1.0-6.0%
4.6%
7
6
1
−
2.2
8
Bank borrowings
0.4-14.8%
3.2%
277
4
273
3
4.0
11
Finance leases
0.7-11.8%
3.1%
138
31
107
41
4.1
140
Other long-term debt
2.0-18.1%
5.5%
69
54
15
1
3.1
65
 
 
 
3,786
146
3,640
1,848
 
3,602
Corresponding data of previous year
 
5.7%
3,602
136
3,466
1,892
 
3,067

The following amounts of long-term debt as of December 31, 2009, are due in the next five years:

 
2010
146
2011
1,047
2012
22
2013
464
2014
259
Total
1,938
Corresponding amount of previous year
1,710

In January 2009, Philips drew upon a EUR 250 million 5-year floating rate long-term loan for general business purposes. The interest rate for this new loan was 2.735% at December 31, 2009.

 
 
 
 
 
 
effective rate
2008
2009
Unsecured Eurobonds
 
 
 
Due 5/16/11; 6 1/8%
6.122%
750
750
 
 
 
 
Unsecured USD Bonds
 
 
 
Due 5/15/25; 7 3/4%
7.429%
70
69
Due 6/01/26; 7 1/5%
6.885%
118
115
Due 8/15/13; 7 1/4%
6.382%
101
99
Due 5/15/25; 7 1/8%
6.794%
73
71
Due 11/03/11; 3 3/8%1)
3.128%
248
243
Due 11/03/13; 4 5/8%1)
4.949%
355
347
Due 11/03/18; 5 3/4%1)
6.066%
887
868
Due 11/03/38; 6 7/8%1)
7.210%
710
694
Adjustments2)
 
(15)
(12)
 
 
2,547
2,494
1) The provisions applicable to these bonds, issued in March 2008, 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 2009, EUR 3.5 million of long-term and short-term debt was secured by collateral of EUR 3.7 million manufacturing assets (2008: EUR 3.4 million).

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This is an interactive electronic version of the Philips Annual Report 2009 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 Philips Annual Report 2009. The 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 2008 compared to 2007.
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