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Globe 2012 annual report
financial report
Independent Auditor's Report
GLOBE TELECOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
INDEPENDENT AUDITORS’ REPORT
ASSETS
December 31
Notes 2012 2011 2010
(In Thousand Pesos)
The Stockholders and the Board of Directors
Globe Telecom, Inc.
We have audited the accompanying consolidated financial statements of Globe Telecom, Inc. and Subsidiaries,
which comprise the consolidated statement of financial position as at December 31, 2012, 2011 and 2010, and the
consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated
statements of cash flows for the years then ended, and a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in
accordance with Philippine Financial Reporting Standards, and for such internal control as management determines
is necessary to enable the preparation and fair presentation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We
conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation
and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of
Globe Telecom, Inc. and Subsidiaries as at December 31, 2012, 2011 and 2010, and its financial performance and
its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.
SYCIP GORRES VELAYO & CO.
Gemilo J. San Pedro
Partner
CPA Certificate No. 32614
SEC Accreditation No. 0094-AR-3 (Group A),
February 4, 2013, valid until February 3, 2016
Tax Identification No. 102-096-610
BIR Accreditation No. 08-001998-34-2012,
April 11, 2012, valid until April 10, 2015
PTR No. 3670020, January 2, 2013, Makati City
Current Assets
Cash and cash equivalents 28, 30 P=6,759,755 P=5,159,046 P=5,868,986
Receivables - net 4, 28 12,105,437 10,119,505 8,374,123
Inventories and supplies 5 2,076,176 1,911,190 1,839,333
Derivative assets 28 421 9,766 19,888
Prepayments and other current assets - net 6, 28 12,308,248 5,586,419 4,704,198
33,250,037 22,785,926 20,806,528
Assets classified as held for sale 25.4 778,321 778,321 778,321
34,028,358 23,564,247 21,584,849
Noncurrent Assets
Property and equipment - net 7, 8 101,422,364 99,267,780 101,837,254
Investment property - net 8 – 191,645 214,192
Intangible assets and goodwill - net 7, 9 3,793,958 3,591,514 3,248,376
Investments in joint ventures 10 183,193 249,000 197,016
Deferred income tax - net 24 765,585 765,670 670,594
Other noncurrent assets - net 11, 18 8,239,618 3,209,477 2,875,686
114,404,718 107,275,086 109,043,118
Total Assets P=148,433,076 P=130,839,333 P=130,627,967
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses 12, 18, 28 P=29,735,614 P=23,042,514 P=22,115,203
Notes payable 14, 28 2,053,900 1,756,760 –
Current portion of long-term debt 14, 28 9,294,888 9,597,367 8,677,209
Unearned revenues 4 2,502,903 2,474,142 2,402,749
Derivative liabilities 28 235,633 208,247 93,336
Income tax payable 24 1,341,583 1,157,927 1,098,492
Provisions 13 203,191 166,773 224,388
45,367,712 38,403,730 34,611,377
Liabilities directly associated with the assets
classified as held for sale 25.4 459,760 583,365 697,729
45,827,472 38,987,095 35,309,106
Noncurrent Liabilities
Deferred income tax - net 24 2,473,115 3,929,414 4,620,490
Long-term debt - net of current portion 14, 28 50,430,632 37,324,579 41,694,261
Derivative liabilities 28 5,021 58,370 152,529
Other long-term liabilities - net of current portion 15, 28 2,942,152 2,111,719 1,982,453
55,850,920 43,424,082 48,449,733
Total Liabilities 101,678,392 82,411,177 83,758,839
Equity
Paid-up capital 17 34,095,976 33,967,476 33,946,004
Cost of share-based payments 16, 18 472,911 573,436 544,794
Other reserves 17, 28 (44,588) (124,902) (88,310)
Retained earnings 17 12,230,385 14,012,146 12,466,640
Total Equity 46,754,684 48,428,156 46,869,128
Total Liabilities and Equity P=148,433,076 P=130,839,333 P=130,627,967
See accompanying Notes to Consolidated Financial Statements.
February 5, 2013
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