Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019€ / sharesshares | |
Document And Entity Information [Line Items] | |
Entity Central Index Key | 0000313216 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Entity File Number | 001-05146-01 |
Entity Registrant Name | KONINKLIJKE PHILIPS NV |
Entity Incorporation, State or Country Code | P7 |
Entity Address, Address Line One | Philips Center |
Entity Address, Address Line Two | Amstelplein 2 |
Entity Address, Postal Zip Code | 1096 BC |
Entity Address, City or Town | Amsterdam |
Entity Address, Country | NL |
Entity Common Stock, Shares Outstanding | shares | 890,973,790 |
Entity Listing, Par Value Per Share | € / shares | € 0.20 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Business Contact [Member] | |
Document And Entity Information [Line Items] | |
Entity Address, Address Line One | Philips Center |
Entity Address, Address Line Two | Amstelplein 2 |
Entity Address, Postal Zip Code | 1096 BC |
Entity Address, City or Town | Amsterdam |
Entity Address, Country | NL |
Contact Personnel Name | Marnix van Ginneken |
City Area Code | +31 20 |
Local Phone Number | 59 77232 |
Contact Personnel Email Address | marnix.van.ginneken@philips.com |
Consolidated statements of inco
Consolidated statements of income - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Profit or loss [abstract] | |||||||
Sales | € 19,482 | [1] | € 18,121 | [2] | € 17,780 | ||
Cost of sales | 10,607 | 9,568 | 9,600 | ||||
Gross margin | 8,875 | 8,554 | 8,181 | ||||
Selling expenses | 4,682 | 4,500 | 4,398 | ||||
General and administrative expenses | 631 | 631 | 577 | ||||
Research and development expenses | 1,884 | 1,759 | 1,764 | ||||
Other business income | 155 | 88 | 152 | ||||
Other business expenses | 188 | 33 | 76 | ||||
Income from operations | [3] | 1,644 | 1,719 | 1,517 | |||
Financial income | [3] | 117 | 51 | 126 | |||
Financial expenses | [3] | 233 | 264 | 263 | |||
Investments in associates, net of income taxes | [3] | 1 | (2) | (4) | |||
Income before taxes | 1,529 | 1,503 | 1,377 | ||||
Income tax expense | [3] | 337 | 193 | 349 | |||
Income from continuing operations | 1,192 | [4],[5] | 1,310 | [4],[5] | 1,028 | [6] | |
Discontinued operations, net of income taxes | [7] | (19) | [4],[5] | (213) | [4],[5] | 843 | [3],[6] |
Net income | [3],[7] | 1,173 | [5] | 1,097 | [5] | 1,870 | |
Net income attributable to Koninklijke Philips N.V. shareholders | [6] | 1,167 | 1,090 | 1,657 | |||
Net income attributable to non-controlling interests | € 5 | € 7 | € 214 | ||||
Income from continuing operations attributable to shareholders | € 1.31 | € 1.41 | € 1.10 | ||||
Net income attributable to shareholders | [6] | 1.29 | 1.18 | 1.78 | |||
Income from continuing operations attributable to shareholders | 1.30 | 1.39 | 1.08 | ||||
Net income attributable to shareholders | [6] | € 1.28 | € 1.16 | € 1.75 | |||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[2] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[3] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[6] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[7] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement of comprehensive income [abstract] | ||||||
Net income for the period | [1],[3] | € 1,173 | [2] | € 1,097 | [2] | € 1,870 |
Remeasurement | 30 | (8) | 102 | |||
Income tax effect on remeasurements | (3) | 19 | 78 | |||
Net current-period change, before tax | 82 | (147) | ||||
Reclassification directly into retained earnings | (5) | |||||
Total of items that will not be reclassified to Income Statement | 114 | (179) | 25 | |||
Net current period change, before tax | 218 | 383 | (1,177) | |||
Income tax effect on net current-period change | 0 | 29 | (39) | |||
Reclassification adjustment for (gain) loss realized | (4) | |||||
Reclassification adjustment for (gain) loss realized, in discontinued operations | (16) | 6 | (191) | |||
Net current period change, before tax | (66) | |||||
Income tax effect on net current-period change | 1 | |||||
Reclassification adjustment for loss (gain) realized | (1) | |||||
Net current-period change, before tax | (53) | (13) | 33 | |||
Income tax effect on net current-period change | (6) | (11) | 3 | |||
Reclassification adjustment for loss (gain) realized | (33) | 31 | 17 | |||
Total of items that are or may be reclassified to Income Statement | 225 | 315 | (1,000) | |||
Other comprehensive income for the period | 340 | 136 | (975) | |||
Total comprehensive income for the period | 1,512 | 1,233 | 895 | |||
Shareholders of Koninklijke Philips N.V. | 1,507 | 1,225 | 805 | |||
Non-controlling interests | € 5 | € 8 | € 90 | |||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of financial position [abstract] | ||||
Property, plant and equipment | [1] | € 2,866 | € 1,712 | |
Goodwill | 8,654 | 8,503 | ||
Intangible assets excluding goodwill | 3,466 | 3,589 | ||
Non-current receivables | 178 | 162 | ||
Investments in associates | 233 | 244 | ||
Other non-current financial assets | 248 | 360 | ||
Non-current derivative financial assets | 1 | 1 | ||
Deferred tax assets | 1,865 | 1,828 | ||
Other non-current assets | 47 | 47 | ||
Total non-current assets | 17,557 | 16,447 | ||
Inventories | 2,773 | 2,674 | ||
Other current financial assets | 1 | 436 | ||
Other current assets | 476 | 469 | ||
Current derivative financial assets | 38 | 36 | ||
Income tax receivable | 177 | 147 | ||
Current receivables | 4,554 | 4,035 | ||
Assets classified as held for sale | 13 | 87 | ||
Cash and cash equivalents | [2],[3] | 1,425 | 1,688 | |
Total current assets | 9,459 | 9,572 | ||
Total assets | 27,016 | 26,019 | ||
Equity | [2] | 12,597 | 12,088 | |
Common shares | 179 | 185 | ||
Reserves | 652 | 548 | ||
Other | 11,766 | 11,355 | ||
Non-controlling interests | [2] | 28 | 29 | |
Group equity | [2] | 12,625 | 12,117 | |
Long-term debt | [1],[2] | 4,939 | 3,427 | |
Non-current derivative financial liabilities | 124 | 114 | ||
Long-term provisions | 1,603 | 1,788 | ||
Deferred tax liabilities | 143 | 152 | ||
Non-current contract liabilities | 348 | 226 | ||
Non-current tax liabilities | [4] | 186 | 181 | |
Other non-current liabilities | 71 | 72 | ||
Total non-current liabilities | 7,413 | 5,959 | ||
Short-term debt | [1],[2] | 508 | 1,394 | |
Current derivative financial liabilities | 67 | 176 | ||
Income tax payable | 100 | 118 | ||
Accounts payable | 2,089 | [5],[6] | 2,303 | |
Accrued liabilities | 1,632 | 1,537 | ||
Current contract liabilities | 1,170 | 1,303 | ||
Short-term provisions | 556 | 363 | ||
Liabilities directly associated with assets held for sale | 0 | 12 | ||
Other current liabilities | 856 | 737 | ||
Total current liabilities | 6,978 | 7,943 | ||
Total liabilities and group equity | € 27,016 | € 26,019 | ||
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies | |||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||
[4] | Due to IFRIC 23 adoption, non-current tax liabilities are now shown as a separate caption on the balance sheet. For more details refer to the Significant accounting policies | |||
[5] | Amounts in this table are undiscounted | |||
[6] | This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Statement of cash flows [abstract] | |||||||
Cash and cash equivalents at beginning of period | [2] | € 1,688 | [1] | € 1,939 | [1] | € 2,334 | |
Net income (loss) | [2],[3] | 1,173 | [4] | 1,097 | [4] | 1,870 | |
Results of discontinued operations, net of income tax | [2] | (19) | [4],[5] | (213) | [4],[5] | 843 | [3],[6] |
Depreciation, amortization, and impairment of fixed assets | [2] | 1,402 | 1,089 | 1,025 | |||
Impairment of goodwill and other non-current financial assets | [2] | 97 | 1 | 15 | |||
Share-based compensation | [2] | 98 | 97 | 116 | |||
Net gain on sale of assets | [2] | 77 | 71 | 107 | |||
Interest income | [2] | 27 | 31 | 40 | |||
Interest expense on debt, borrowings, and other liabilities | [2] | 174 | 165 | 186 | |||
Income taxes | [2] | 337 | 193 | 349 | |||
Investments in associates, net of income taxes | [2] | 6 | 2 | ||||
Decrease (increase) in working capital | [2] | 819 | 179 | (101) | |||
Decrease (increase) in receivables and other current assets | [2] | (274) | (97) | 64 | |||
Decrease (Increase) in inventories | [2] | (175) | (394) | (144) | |||
Increase (decrease) in accounts payable, accrued and other current liabilities | [2] | (369) | 311 | 181 | |||
Decrease (increase) in non-current receivables, other assets and other liabilities | [2] | 122 | (49) | (358) | |||
Increase (decrease) in provisions | [2] | 27 | (271) | (252) | |||
Other items | [2] | (5) | (59) | 261 | |||
Interest paid | [2] | 172 | 170 | 215 | |||
Interest received | [2] | 27 | 35 | 40 | |||
Dividends received from investments in associates | [2] | 12 | 20 | 6 | |||
Income taxes paid | [2] | 363 | 301 | 284 | |||
Net cash provided by (used for) operating activities | [2] | 2,031 | 1,780 | 1,870 | |||
Net capital expenditures | [2] | 978 | 796 | 685 | |||
Purchase of intangible assets | [2] | 156 | 123 | 106 | |||
Expenditures on development assets | [2] | 339 | 298 | 333 | |||
Capital expenditures on property, plant and equipment | [2] | 518 | 422 | 420 | |||
Proceeds from sales of property, plant and equipment | [2] | 35 | 46 | 175 | |||
Net proceeds from (cash used for) derivatives and current financial assets | [2] | 385 | (175) | (198) | |||
Purchase of other non-current financial assets | [2] | 63 | 34 | 42 | |||
Proceeds from other non-current financial assets | [2] | 162 | 77 | 6 | |||
Purchase of businesses, net of cash acquired | [2] | 255 | 628 | 2,344 | |||
Net proceeds from sale of interests in businesses, net of cash disposed of | [2] | 146 | 70 | 64 | |||
Net cash provided by (used for) for investing activities | [2] | (603) | (1,486) | (3,199) | |||
Proceeds from issuance (payments on) short-term debt | [2] | 23 | 34 | 12 | |||
Principal payments on short-term portion of long-term debt | [2] | 761 | 1,161 | 1,332 | |||
Proceeds from issuance of long-term debt | [2] | 847 | 1,287 | 1,115 | |||
Re-issuance of treasury shares | [2] | 58 | 94 | 227 | |||
Purchase of treasury shares | [2] | 1,376 | 1,042 | 642 | |||
Proceeds from sale of Signify (Philips Lighting) shares | [2] | 1,065 | |||||
Transaction costs paid for sale of Signify (Philips Lighting) shares | [2] | 5 | |||||
Dividends paid to shareholders of Koninklijke Philips N.V. | [2] | 453 | 401 | 384 | |||
Dividends paid to shareholders of non-controlling interests | [2] | 2 | 3 | 2 | |||
Net cash provided by (used for) financing activities | [2] | (1,665) | (1,192) | 55 | |||
Net cash provided by (used for) continuing operations | [2] | (237) | (898) | (1,274) | |||
Net cash provided by (used for) discontinued operations | [2] | (25) | 647 | 1,063 | |||
Net cash provided by (used for) continuing and discontinued operations | [2] | (262) | (251) | (211) | |||
Effect of changes in exchange rates on cash and cash equivalents | [2] | (2) | 0 | (184) | |||
Cash and cash equivalents at end of period | [1],[2] | € 1,425 | € 1,688 | € 1,939 | |||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[3] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[4] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[5] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[6] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Millions | Total | Equity attributable to owners of parent [member] | Issued capital [member] | Non-controlling interests [member] | Reserve of cash flow hedges [member] | Reserve of exchange differences on translation [member] | [1] | Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | [2] | Retained earnings [member] | Share premium [member] | Treasury shares [member] | ||
Equity at beginning of period at Dec. 31, 2016 | € 13,453 | € 12,546 | € 186 | € 907 | € 10 | € 1,234 | € 36 | € 8,178 | € 3,083 | € (181) | ||||
Total comprehensive income (loss) | 895 | 805 | 90 | 12 | (823) | (66) | 1,681 | |||||||
Dividend distributed | 478 | 384 | (2) | 94 | 742 | (356) | ||||||||
Sale of shares of Philips Lighting (now Signify) | 1,039 | 327 | 712 | (19) | 346 | |||||||||
Deconsolidation Philips Lighting (now Signify) | (1,602) | (12) | (1,590) | 54 | (66) | |||||||||
Purchase of treasury shares | 318 | 318 | 318 | |||||||||||
Re-issuance of treasury shares | 133 | 133 | 3 | (205) | 334 | |||||||||
Forward contracts | 1,079 | 1,079 | 1,018 | 61 | ||||||||||
Share call options | (160) | (160) | 95 | (255) | ||||||||||
Share-based compensation plans | 151 | 151 | 151 | |||||||||||
Income tax share-based compensation plans | 8 | 8 | 8 | |||||||||||
Equity at end of period at Dec. 31, 2017 | 12,023 | [3] | 11,999 | 188 | 24 | 23 | 392 | (30) | 8,596 | 3,311 | (481) | |||
IFRS 9 And 15 Adjustment | (29) | (29) | (4) | (25) | ||||||||||
Total comprehensive income (loss) | 1,233 | 1,225 | 8 | (33) | 347 | (147) | 1,058 | |||||||
Dividend distributed | 403 | 400 | (2) | 3 | 738 | (336) | ||||||||
Purchase of treasury shares | 514 | 514 | 514 | |||||||||||
Re-issuance of treasury shares | 61 | 61 | (4) | (276) | 341 | |||||||||
Forward contracts | (319) | (319) | 124 | (443) | ||||||||||
Share call options | (51) | (51) | 34 | (85) | ||||||||||
Share-based compensation plans | 107 | 107 | 107 | |||||||||||
Cancellation of treasury shares | (5) | (779) | 783 | |||||||||||
Income Tax Share-based Compensation Plans | 11 | 11 | 11 | |||||||||||
Equity at end of period at Dec. 31, 2018 | 12,117 | [3] | 12,088 | 185 | 29 | (10) | 739 | (181) | 8,266 | 3,487 | (399) | |||
IFRS 16 adjustment | [4] | (33) | (33) | (33) | ||||||||||
Total comprehensive income (loss) | 1,512 | 1,507 | 5 | (13) | 239 | 82 | 1,200 | |||||||
Dividend distributed | 456 | 453 | (2) | 2 | 775 | (319) | ||||||||
Purchase of treasury shares | 621 | 621 | 621 | |||||||||||
Re-issuance of treasury shares | 31 | 31 | 11 | (246) | 266 | |||||||||
Forward contracts | 706 | (706) | ||||||||||||
Share call options | 28 | (30) | (58) | |||||||||||
Share-based compensation plans | 101 | 101 | 101 | |||||||||||
Cancellation of treasury shares | (8) | (1,308) | 1,316 | |||||||||||
Income Tax Share-based Compensation Plans | 10 | 10 | 10 | |||||||||||
Minority buy-out | (6) | (3) | (3) | (3) | ||||||||||
Transfer of gain on disposal of equity investments at FVTOCI to retained earnings | 204 | 204 | ||||||||||||
Equity at end of period at Dec. 31, 2019 | € 12,625 | [3] | € 12,597 | € 179 | € 28 | € (24) | € 978 | € (303) | € 8,296 | € 3,671 | € (201) | |||
[1] | Cumulative translation adjustments related to investments in associates were EUR 44 million EUR 45 million EUR 46 million | |||||||||||||
[2] | Previously available-for-sale financial assets. | |||||||||||||
[3] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||||||||
[4] | Impact of IFRS 16 adoption. Reference is made to the Significant accounting policies |
Consolidated statements of ch_2
Consolidated statements of changes in equity (Parenthetical) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity | [1] | € 12,625 | € 12,117 | € 12,023 |
Reserve of exchange differences on translation | 44 | 45 | 46 | |
IFRS 16 [Member] | ||||
Equity | 12,084 | |||
IFRS 9 and 15 adjustment [member] | ||||
Equity | 11,993 | |||
Equity attributable to owners of parent [member] | ||||
Equity | 12,597 | 12,088 | 11,999 | |
Equity attributable to owners of parent [member] | IFRS 16 [Member] | ||||
Equity | 12,055 | |||
Equity attributable to owners of parent [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | 11,970 | |||
Issued capital [member] | ||||
Equity | 179 | 185 | 188 | |
Issued capital [member] | IFRS 16 [Member] | ||||
Equity | 185 | |||
Issued capital [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | 188 | |||
Non-controlling interests [member] | ||||
Equity | 28 | 29 | 24 | |
Non-controlling interests [member] | IFRS 16 [Member] | ||||
Equity | 29 | |||
Non-controlling interests [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | 24 | |||
Reserve of cash flow hedges [member] | ||||
Equity | (24) | (10) | 23 | |
Reserve of cash flow hedges [member] | IFRS 16 [Member] | ||||
Equity | (10) | |||
Reserve of cash flow hedges [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | 23 | |||
Reserve of exchange differences on translation [member] | ||||
Equity | [2] | 978 | 739 | 392 |
Reserve of exchange differences on translation [member] | IFRS 16 [Member] | ||||
Equity | [2] | 739 | ||
Reserve of exchange differences on translation [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | [2] | 392 | ||
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | ||||
Equity | [3] | (303) | (181) | (30) |
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | IFRS 16 [Member] | ||||
Equity | [3] | (181) | ||
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | [3] | (34) | ||
Retained earnings [member] | ||||
Equity | 8,296 | 8,266 | 8,596 | |
Retained earnings [member] | IFRS 16 [Member] | ||||
Equity | 8,232 | |||
Retained earnings [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | 8,571 | |||
Share premium [member] | ||||
Equity | 3,671 | 3,487 | 3,311 | |
Share premium [member] | IFRS 16 [Member] | ||||
Equity | 3,487 | |||
Share premium [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | 3,311 | |||
Treasury shares [member] | ||||
Equity | (201) | € (399) | (481) | |
Treasury shares [member] | IFRS 16 [Member] | ||||
Equity | € (399) | |||
Treasury shares [member] | IFRS 9 and 15 adjustment [member] | ||||
Equity | € (481) | |||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||
[2] | Cumulative translation adjustments related to investments in associates were EUR 44 million EUR 45 million EUR 46 million | |||
[3] | Previously available-for-sale financial assets. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies [Abstract] | |
Disclosure of significant accounting policies [text block] | 1 The Consolidated financial statements in the Group financial statements section have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU) and with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code. All standards and interpretations issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee effective 2019 have been endorsed by the EU; consequently, the accounting policies applied by Philips also comply with IFRS as issued by the IASB. These accounting policies have been applied by group entities. The Consolidated financial statements have been prepared under the historical cost convention, unless otherwise indicated. The Consolidated financial statements are presented in euros, which is the presentation currency. Due to rounding, amounts may not add up precisely to the totals provided. Use of estimates The preparation of the Consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. These estimates inherently contain a degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions. In the process of applying the accounting policies, management has made estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the reported amounts of assets and liabilities within the next financial year, as well as to the disclosure of contingent liabilities at the date of the Consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The company evaluates these estimates and judgments on an ongoing basis and bases the estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that Philips believes are reasonable under the circumstances. Existing circumstances and assumptions about future developments may change due to circumstances beyond the company’s control and are reflected in the assumptions if and when they occur. The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. The company revises material estimates if changes occur in the circumstances or if there is new information or experience on which an estimate was or can be based. The areas where the most significant judgments and estimates are made are goodwill, deferred tax asset recoverability, impairments, classification and measurement of financial instruments, the accounting for an arrangement containing a lease, the assessment whether a lease option to extend or cancel a lease in which the company is a lessee is reasonably certain to be exercised or not, revenue recognition, tax risks and other contingencies, assessment of control, classification of assets and liabilities held for sale and the presentation of items of profit and loss and cash flows as continuing or discontinued, as well as when determining the fair values of acquired identifiable intangible assets, contingent considerations and investments based on an assessment of future cash flows (e.g. earn out arrangements as part of acquisitions). For further discussion of these significant judgements and estimates, reference is made to the respective accounting policies and notes within these Consolidated financial statements that relate to the above topics. Further judgment is applied when analyzing impairments of goodwill and intangible assets not yet ready for use that are performed annually and whenever a triggering event has occurred to determine whether the carrying value exceeds the recoverable amount. These analyses are generally based on estimates of discounted future cash flows. Furthermore, the company applies judgment when actuarial assumptions are established to anticipate future events that are used in calculating post-employment benefit expenses and liabilities. These factors include assumptions with respect to interest rates, rates of increase in healthcare costs, rates of future compensation increases, turnover rates and life expectancy. Changes in presentation from the prior year Accounting policies have been applied consistently for all periods presented in these consolidated financial statements, except for the items mentioned below and the impact of the adoption of IFRS 16 Leases, for which reference is made to the section New standards and interpretations of this note. In addition, certain prior-year amounts have been reclassified to conform to the current year presentation. Change in Segment reporting From January 1, 2019, Philips realigned the composition of its reporting segments. The most notable changes are the shifts of the Sleep & Respiratory Care business from the Personal Health segment to the renamed Connected Care segment and most of the Healthcare Informatics business from the renamed Connected Care segment to the Diagnosis & Treatment segment. The new segment structure had no significant impact on the headroom or lead to goodwill impairment as disclosed in Goodwill Consequential changes to comparative segment disclosures have been processed in Receivables Provisions Information by segment and main country Change in presentation of non-current portion of income tax payable due to IFRIC 23 Following the adoption of IFRIC 23 Uncertainty over Income Tax Treatments, the company has changed the presentation of uncertain tax positions in the Consolidated balance sheets. The Other tax liability included in the line Other non-current liabilities is reclassified to the new Non-current tax liabilities line item on the face of the Consolidated balance sheets. For the comparative figures per December 31, 2018 an amount of EUR 181 million is reclassified from Other non-current liabilities to Income tax payable (under non-current liabilities). Further reference is made to Income taxes Specific choices within IFRS In certain instances, IFRS allows alternative accounting treatments for measurement and/or disclosure. Philips has adopted one of the treatments as appropriate to the circumstances of the company. The most important of these alternative treatments are mentioned below. Tangible and intangible fixed assets Under IFRS, an entity shall choose either the cost model or the revaluation model as its accounting model for tangible and intangible fixed assets. In this respect, items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The useful lives and residual values are evaluated annually. Furthermore, the company chose to apply the cost model, meaning that costs relating to product development, the development and purchase of software for internal use and other intangible assets are capitalized and subsequently amortized over the estimated useful life. Further information on Tangible and Intangible fixed assets can be found in Property, plant and equipment Intangible assets excluding goodwill Employee benefit accounting IFRS does not specify how an entity should present its service costs related to pensions and net interest on the net defined-benefit liability (asset) in the Consolidated statements of income. With regards to these elements, the company presents service costs in Income from operations and the net interest expenses related to defined-benefit plans in Financial expense. Further information on employee benefit accounting can be found in Post-employment benefits Cash flow statements Under IFRS, an entity shall report cash flows from operating activities using either the direct method (whereby major classes of gross cash receipts and gross cash payments are disclosed) or the indirect method (whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows). In this respect, the company chose to prepare the cash flow statements using the indirect method. Furthermore, interest cash flows are presented in cash flows from operating activities rather than in cash flows from financing or investing activities, because they enter into the determination of profit or loss. The company chose to present dividends paid to shareholders of Koninklijke Philips N.V. as a component of cash flows from financing activities, rather than to present such dividends as cash flows from operating activities, which is an allowed alternative under IFRS. Consolidated statements of cash flows can be found in Consolidated statements of cash flows Policies that are more critical in nature Revenue recognition Revenue from the sale of goods in the normal course of business is recognized at a point in time when the performance obligation is satisfied and it is based on the amount of the transaction price that is allocated to the performance obligation. The transaction price is the amount of the consideration to which the company expects to be entitled in exchange for transferring the promised goods to the customer. The consideration expected by the company may include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and volume rebates. The company adjusts the consideration for the time value of money for the contracts where no explicit interest rate is mentioned if the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds six months. Revenue for the sale of goods is recognized when control of the asset is transferred to the buyer and only when it is highly probable that a significant reversal of revenue will not occur when uncertainties related to a variable consideration are resolved. Transfer of control varies depending on the individual terms of the contract of sale. For consumer-type products in the segment Personal Health businesses, control is transferred when the product is shipped and delivered to the customer and title and risk have passed to the customer (depending on the delivery conditions) and acceptance of the product has been obtained. Examples of delivery conditions are ‘Free on Board point of delivery’ and ‘Costs, Insurance Paid point of delivery’, where the point of delivery may be the shipping warehouse or any other point of destination as agreed in the contract with the customer and where control is transferred to the customer. Revenues from transactions relating to distinct goods or services are accounted for separately based on their relative stand-alone selling prices. The stand-alone selling price is defined as the price that would be charged for the goods or service in a separate transaction under similar conditions to similar customers, which within the company is mainly the Country Target Price (CTP). The transaction price determined (taking into account variable considerations) is allocated to performance obligations based on relative stand-alone selling prices. These transactions mainly occur in the segments Diagnosis & Treatment businesses and Connected Care businesses and include arrangements that require subsequent installation and training activities in order to make distinct goods operable for the customer. As such, the related installation and training activities are part of equipment sales rather than separate performance obligations. Revenue is recognized when the performance obligation is satisfied, i.e. when the installation has been completed and the equipment is ready to be used by the customer in the way contractually agreed. Revenues are recorded net of sales taxes. A variable consideration is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such assessment is performed on each reporting date to check whether it is constrained. For products for which a right of return exists during a defined period, revenue recognition is determined based on the historical pattern of actual returns, or in cases where such information is not available revenue recognition is postponed until the return period has lapsed. Return policies are typically based on customary return arrangements in local markets. A provision is recognized for assurance-type product warranty at the time of revenue recognition and reflects the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to the products sold. For certain products, the customer has the option to purchase the warranty separately, which is considered a separate performance obligation on top of the assurance-type product warranty. For such warranties which provide distinct service, revenue recognition occurs on a straight-line basis over the extended warranty contract period. In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred for shipping and handling of internal movements of goods are recorded as cost of sales. Shipping and handling related to sales to third parties are recorded as selling expenses. When shipping and handling are part of a project and billed to the customer, then the related expenses are recorded as cost of sales. Shipping and handling billed to customers are distinct and separate performance obligations and recognized as revenues. Expenses incurred for sales commissions that are considered incremental to the contracts are recognized immediately in the Consolidated statements of income as selling expenses as a practical expedient under IFRS 15 Revenue from Contracts with Customers. Revenue from services is recognized over a period of time as the company transfers control of the services to the customer which is demonstrated by the customer simultaneously receiving and consuming the benefits provided by the company. The amount of revenues is measured by reference to the progress made towards complete satisfaction of the performance obligation, which in general is evenly over time. Service revenue related to repair and maintenance activities for goods sold is recognized ratably over the service period or as services are rendered. Royalty income from brand license arrangements is recognized based on a right to access the license, which in practice means over the contract period based on a fixed amount or reliable estimate of sales made by a licensee. Royalty income from intellectual property rights such as technology licenses or patents is recognized based on a right-to-use the license, which in practice means at a point in time based on the contractual terms and substance of the relevant agreement with a licensee. However, revenue related to intellectual property contracts with variable consideration where a constraint in the estimation is identified, is recognized over the contract period and is based on actual or reliably estimated sales made by a licensee. The company receives payments from customers based on a billing schedule or credit period, as established in our contracts. Credit periods are determined based on standard terms, which vary according to local market conditions. Amounts posted in deferred revenue for which the goods or services have not yet been transferred to the customer and amounts that have either been received or are due, are presented as Contract liabilities in the Consolidated balance sheets. Income taxes Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the Consolidated statements of income except to the extent that it relates to items recognized directly within equity or in other comprehensive income. Current tax is the expected taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Tax liabilities are recognized when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the company to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact the income tax expense in the period during which such a determination is made. Deferred tax assets and liabilities are recognized, using the consolidated balance sheets method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill; the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; and differences relating to investments in subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by the company and it is probable that it will not reverse in the foreseeable future. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity or on different taxable entities, but the company intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that there will be future taxable profits against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Deferred tax liabilities for withholding taxes are recognized for subsidiaries in situations where the income is to be paid out as dividend in the foreseeable future and for undistributed earnings of unconsolidated companies to the extent that these withholding taxes are not expected to be refundable or deductible. Changes in tax rates and tax laws are reflected in the period when the change was enacted or substantively enacted by the reporting date. Any subsequent adjustment to a tax asset or liability that originated in discontinued operations and for which no specific arrangements were made at the time of divestment, due to a change in the tax base or its measurement, is allocated to discontinued operations (i.e. backwards tracing). Examples are a tax rate change or change in retained assets or liabilities directly relating to the discontinued operation. Any subsequent change to the recognition of deferred tax assets is allocated to the component in which the taxable gain is or will be recognized. The above principles are applied to the extent the ‘discontinued operations’ are sufficiently separable from continuing operations. Further information on income tax can be found in Income taxes Provisions Provisions are recognized if, as a result of a past event, the company has a present legal or constructive obligation, the amount can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money. The increase in the provision due to passage of time is recognized as interest expense. The accounting and presentation for some of the company’s provisions is as follows: Product warranty – A provision for assurance-type product warranty is recognized when the underlying products or services are sold. The provision is based on historical warranty data and a weighing of possible outcomes against their associated probabilities. Environmental provisions – Measurement of liabilities associated with environmental obligations is based on current legal and constructive requirements. Liabilities and expected insurance recoveries, if any, are recorded separately. The carrying amount of environmental liabilities is regularly reviewed and adjusted for new facts and changes in law. Restructuring-related provisions – The provision for restructuring mainly relates to the estimated costs of initiated restructurings, the most significant of which have been approved by the Executive Committee, and which generally involve the realignment of certain parts of the industrial and commercial organization. When such restructurings require discontinuance and/or closure of lines of activities, the anticipated costs of closure or discontinuance are included in restructuring provisions. A liability is recognized for those costs only when the company has a detailed formal plan for the restructuring and has raised a valid expectation with those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. Before a provision is established, the company recognizes any impairment loss on the assets associated with the restructuring. Litigation provisions – In relation to legal claim provisions and settlements, the relevant balances are transferred to Other liabilities at the point when the amount and timing of cash outflows are no longer uncertain. Settlements which are agreed for amounts in excess of existing provisions are reflected as increases in Other liabilities. Further information on provisions can be found in Provisions Goodwill The measurement of goodwill at initial recognition is described in the Basis of consolidation note. Goodwill is subsequently measured at cost less accumulated impairment losses. Further information on goodwill can also be found in Goodwill Intangible assets other than goodwill Acquired finite-lived intangible assets are amortized using the straight-line method over their estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized at cost, with the exception of intangible assets acquired as part of a business combination, which are capitalized at their acquisition date fair value. The company expenses all research costs as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized as an intangible asset if the product or process is technically and commercially feasible, the company has sufficient resources and the intention to complete development and can measure the attributable expenditure reliably. The capitalized development expenditure comprises of all directly attributable costs (including the cost of materials and direct labor). Other development expenditures and expenditures on research activities are recognized in the Consolidated statements of income. Capitalized development expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of capitalized development expenditure is charged to the Consolidated statements of income on a straight-line basis over the estimated useful lives of the intangible assets. Further information on intangible assets other than goodwill can be found in Intangible assets excluding goodwill Discontinued operations and non-current assets held for sale Non-current assets and disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Consolidated balance sheets. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Consolidated balance sheets. A discontinued operation is a component of an entity that has either been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations; or is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a view to sell. If a discontinued operation is sold in stages as part of a single coordinated plan until it is completely sold, then the Investment in associate that is recognized upon sale of a portion that results in Philips having significant influence in the operation (rather than control) is continued to be treated as discontinued operation provided that the held for sale criteria are met. Non-current assets held for sale and discontinued operations are carried at the lower of carrying amount or fair value less cost of disposal. Any gain or loss from disposal, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Consolidated financial statements and related notes for all periods presented. Comparatives in the Consolidated balance sheets are not represented when a non-current asset or disposal group is classified as held for sale. Comparatives are represented for presentation of discontinued operations in the Consolidated statements of cash flows and Consolidated statements of income. Adjustments in the current period to amounts previously presented in discontinued operations that are directly related to the disposal of a discontinued operation in a prior period, and for which no specific arrangements were made at the time of divestment, are classified separately in discontinued operations. Circumstances to which these adjustments may relate include resolution of uncertainties that arise from the terms of the disposal transaction, such as the resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise from and are directly related to the operations of the component before its disposal, such as environmental and assurance-type product warranty obligations retained by the company, and the settlement of employee benefit plan obligations provided that the settlement is directly related to the disposal transaction. Further information on discontinued operations and non-current assets held for sale can be found in Discontinued operations and assets classified as held for sale Impairment Impairment of goodwill and intangible assets not yet ready for use Goodwill and intangible assets not yet ready for use are not amortized but are tested for impairment annually and whenever impairment indicators require. In case of goodwill and intangible assets not yet ready for use, either internal or external sources of information are considered indicators that an asset or a CGU may be impaired. In most cases the company identified its cash-generating units for goodwill at one level below that of an operating segment. Cash flows at this level are substantially independent from other cash flows and this is the lowest level at which goodwill is monitored by the Executive Committee. An impairment loss is recognized in the Consolidated statements of income whenever and to the extent that the carrying amount of a cash-generating unit exceeds the unit’s recoverable amount, whichever is the greater, its value in use or its fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from the sale of an asset in an arm’s length transaction, less costs of disposal. Further information on impairment of goodwill and intangible assets not yet ready for use can be found in Goodwill Intangible assets excluding goodwill Impairment of non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of an asset with the greater of its value in use and fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from a sale of an asset in an arm’s length transaction, less costs of disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the recoverable amount. The review for impairment is carried out at the level where cash flows occur that are independent of other cash flows. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if and to the extent that there has been a change in the estimates used to determine the recoverable amount. The loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment are recognized in the Consolidated statements of income. Impairment of financial assets The company recognizes an allowance for expected credit losses (ECLs) for trade receivables, contract assets, lease receivables, debt investments carried at fair value through Other comprehensive income (FVTOCI) and amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the company expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized in two stages. For credit risk exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (12-month ECLs). The company considers a financial asset to be in default when the counterparty is unlikely to pay its credit obligations to the company in full or when the financial asset is past due. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (lifetime ECLs). When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the company's historical experience and informed credit assessment and including forward-looking information, such as forecast economic conditions that affect the ability of the customers to settle the receivables. For all trade receivables, contract assets and lease receivables, the company applies |
Information by segment and main
Information by segment and main country | 12 Months Ended |
Dec. 31, 2019 | |
Information by segment and main country [Abstract] | |
Information by segment and main country [Text block] | 2 Philips Group Information on income statements in millions of EUR 2017 - 2019 sales sales including intercompany depreciation and amortization 1 Adjusted EBITA 2 3 2019 Diagnosis & Treatment 4 8,485 8,579 (564) 1,078 Connected Care 4,674 4,760 (327) 618 Personal Health 5,854 5,864 (186) 943 Other 469 542 (326) (76) Inter-segment eliminations (263) Philips Group 19,482 19,482 (1,402) 2,563 2018 Diagnosis & Treatment 7,726 7,825 (349) 872 Connected Care 4,341 4,516 (326) 662 Personal Health 5,524 5,538 (171) 860 Other 530 612 (244) (28) Inter-segment eliminations (369) Philips Group 18,121 18,121 (1,089) 2,366 2017 Diagnosis & Treatment 7,365 7,445 (301) 747 Connected Care 4,331 4,492 (355) 684 Personal Health 5,685 5,702 (181) 879 Other 400 535 (188) (157) Inter-segment eliminations (393) Philips Group 17,780 17,780 (1,025) 2,153 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information 3) For reconciliation Adjusted EBITA, refer to the table below. 4) In 2019 Philips’ Emerging Businesses were moved out of segment Other into segment Diagnosis & Treatment to enable these businesses with better access to downstream capabilities. While these businesses remain in (semi-)incubator phase, in 2019 they received a corporate funding out of segment Other of EUR 54 million As required by IFRS 8 Operating Segments, Philips operating segments are Diagnosis & Treatment businesses, Connected Care businesses and Personal Health businesses, each being responsible for the management of its business worldwide. From January 1, 2019, Philips realigned the composition of its reporting segments. The most notable changes are the shifts of the Sleep & Respiratory Care business from the Personal Health segment to the renamed Connected Care segment and most of the Healthcare Informatics business from the renamed Connected Care segment to the Diagnosis & Treatment segment. The 2018 and 2017 segment results have been reclassified according to the revised reporting structure. Philips focuses on improving people’s lives through meaningful innovation across the health continuum – from healthy living and prevention to diagnosis, treatment and home care. The Diagnosis & Treatment unites the businesses related to the promise of precision diagnosis and disease pathway selection, and the businesses related to image-guided, minimally invasive treatments. The Connected Care businesses focuses on patient care solutions, advanced analytics and patient and workflow optimization inside and outside the hospital, and aims to unlock synergies from integrating and optimizing patient care pathways, and leveraging provider-payer-patient business models. The Personal Health businesses focuses on healthy living and preventative care. The Executive Committee of Philips is deemed to be the chief operating decision maker (CODM) for IFRS 8 segment reporting purposes. The key segmental performance measure is Adjusted EBITA * The term Adjusted EBITA * * * * Adjusted EBITA * * Philips Group Reconciliation from net income to Adjusted EBITA 1 In millions of EUR 2017 - 2019 Philips Group Diagnosis & Treatment Connected Care Personal Health Other 2019 Net Income 1,173 Discontinued operations, net of income taxes 19 Income tax expense 337 Investments in associates, net of income taxes (1) Financial expenses 233 Financial income (117) Income from operations 1,644 660 267 844 (127) Amortization of intangible assets 350 177 141 25 8 Impairment of goodwill 97 19 78 EBITA 1 2,091 856 486 869 (119) Restructuring and acquisition-related charges 318 149 64 50 54 Other items 153 73 67 23 (11) Adjusted EBITA 1 2,563 1,078 618 943 (76) 2018 Net Income 1,097 Discontinued operations, net of income taxes 213 Income tax expense 193 Investments in associates, net of income taxes 2 Financial expenses 264 Financial income (51) Income from operations 1,719 629 399 796 (105) Amortization of intangible assets 347 98 140 31 79 EBITA 1 2,066 727 539 827 (27) Restructuring and acquisition-related charges 258 146 66 15 31 Other items 41 - 56 18 (33) Adjusted EBITA 1 2,366 872 662 860 (28) 2017 Net Income 1,870 Discontinued operations, net of income taxes (843) Income tax expense 349 Investments in associates, net of income taxes 4 Financial expenses 263 Financial income (126) Income from operations 1,517 512 424 834 (252) Amortization of intangible assets 260 57 138 39 26 Impairment of goodwill 9 9 EBITA 1 1,787 568 562 873 (217) Restructuring and acquisition-related charges 316 156 91 6 64 Other items 50 22 31 (3) Adjusted EBITA 1 2,153 747 684 879 (157) 1) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information Transactions between the segments are mainly related to components and parts included in the product portfolio of the other segments. The pricing of such transactions was at cost or determined on an arm’s length basis. Philips has no single external customer that represents 10% or more of sales. Philips Group Main countries in millions of EUR 2017 - 2019 sales 1 tangible and intangible assets 2 2019 Netherlands 522 2,148 United States 6,667 9,864 China 2,707 340 Japan 1,186 550 Germany 1,087 308 France 505 46 United Kingdom 470 611 Other countries 6,338 1,119 Total main countries 19,482 14,986 2018 Netherlands 510 1,666 United States 6,050 9,493 China 2,380 353 Japan 1,045 491 Germany 1,032 263 France 519 30 South Korea 498 3 Other countries 6,087 1,506 Total main countries 18,121 13,805 2017 Netherlands 414 1,154 United States 6,084 8,408 China 2,322 959 Japan 1,059 457 Germany 1,011 270 France 530 33 India 425 100 Other countries 5,935 1,263 Total main countries 17,780 12,644 1) The sales are reported based on country of destination. 2) Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill *) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Discontinued operations and ass
Discontinued operations and assets classified as held for sale | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued operations and assets classified as held for sale [Abstract] | |
Disclosure of discontinued operations [text block] | 3 In 2019, Discontinued operations consist primarily of certain other divestments formerly reported as discontinued operations. The below table summarizes the discontinued operations, net of income taxes results reported in the consolidated statements of income. Philips Group Discontinued operations, net of income taxes in millions of EUR 2017 - 2019 2017 2018 2019 Signify 896 (198) The combined Lumileds and Automotive businesses (29) 12 Other (24) (27) (19) Discontinued operations, net of income taxes 843 (213) (19) As explained below, in 2019, there were no results from discontinued operations for Signify and combined Lumileds and Automotive businesses. Signify As from December 31, 2018, Philips was no longer able to exercise significant influence with respect to Signify. The results related to Philips' retained interest in Signify until the moment the company lost significant influence were recognized in discontinued operations. These results related to an overall EUR 198 million loss, which reflected dividends received of EUR 32 million and a loss due to value adjustments of EUR 218 million. As of December 31, 2018 the remaining shareholding in Signify was part of continued operations. For further details, please refer to Other financial assets The following table summarizes the results of Signify included in the Consolidated statements of income as discontinued operations. Results of Signify in millions of EUR 2017 - 2018 2017 2018 Sales 6,319 Costs and expenses (5,776) (18) Result on the deconsolidation of discontinued operations 538 Fair value adjustment retained interest (104) (218) Dividend income 32 Income before tax 977 (204) Income tax expense (150) 7 Income tax on the deconsolidation of discontinued operations 61 US Tax Cuts and Jobs Act 8 Results from discontinued operations 896 (198) Discontinued operations: Combined Lumileds and Automotive businesses On June 30, 2017, Philips completed the sale of an 80.1% interest in the combined Lumileds and Automotive businesses to certain funds managed by affiliates of Apollo Global Management, LLC. In the first quarter of 2018 we reached a final settlement resulting in a gain of EUR 8 million. The combined businesses of Lumileds and Automotive were reported as discontinued operations as from the end of November 2014. For details on the retained interest in the combined Lumileds and Automotive businesses we refer to Other financial assets The following table summarizes the results of the combined businesses of Lumileds and Automotive in the Consolidated statements of income as discontinued operations. Philips Group Results of combined Lumileds and Automotive businesses in millions of EUR 2017 - 2018 2017 2018 Sales 804 Costs and expenses (630) 5 Result on the sale of discontinued operations (98) 8 Income before tax 76 13 Income tax expense (25) (1) Income tax on the sale of discontinued operations 26 US Tax Cuts and Jobs Act (107) Results from discontinued operations (29) 12 Discontinued operations: Other Certain costs related to other divestments, which were previously reported as discontinued operations, resulted in a net loss of EUR 19 million in 2019 (2018: a net loss of EUR 27 million; 2017: a net loss of EUR 24 million) . Discontinued operations cash flows The following table presents the net cash flows of operating, investing and financing activities reported in the Consolidated cash flow statements related to discontinued operations. Discontinued operations cash flows in millions of EUR 2017 - 2019 2017 2018 2019 Cash flows from operating activities 350 (15) (11) Cash flows from investing activities 856 662 (14) Cash flows from financing activities (144) Total discontinued operations cash flows 1,063 647 (25) In 2019, net cash used for discontinued operations consists primarily of settlements related to divestment formerly reported as discontinued operations. In 2018, discontinued operations cash flows mainly include EUR 642 million related to the sale of Signify shares and dividend received from Signify reported in investing activities. The sale of Signify shares in 2017 (prior to losing control) are included in cash flows from financing activities of continuing operations. In 2017, cash flows from operating activities reflect the period prior to the divestment of the combined Lumileds and Automotive businesses (six months of cash flows) and prior to the deconsolidation of Signify (eleven months of cash flows). In 2017, cash flows from investing activities includes the net cash outflow related to the deconsolidation of Signify of EUR 175 million, consisting of EUR 545 million proceeds from the sale of shares on November 28, 2017, offset by the deconsolidation of EUR 720 million of cash and cash equivalents, and proceeds of EUR 1,067 million received from the sale of the combined Lumileds and Automotive businesses. Assets classified as held for sale As of December 31, 2019, assets held for sale consisted of property, plant and equipment for an amount of EUR 13 million. As of December 31, 2018, assets held for sale consisted of property, plant and equipment for an amount of EUR 23 million, and assets and liabilities directly associated with assets-held-for-sale businesses of EUR 52 million. As of December 31, 2017, assets held for sale consisted of the retained interest in Signify for an amount of EUR 1,264 million, property, plant and equipment for an amount of EUR 40 million, and assets and liabilities directly associated with assets held for sale businesses of EUR 44 million. |
Acquisitions and divestments
Acquisitions and divestments | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and divestments [Abstract] | |
Disclosure of acquisitions and divestments [Text block] | 4 2019 Acquisitions Philips completed three acquisitions in 2019, with the Healthcare Information Systems business of Carestream Health being the most notable. The acquisitions involved an aggregated net cash outflow of EUR 199 million and a contingent consideration of EUR 11 million at fair value, the latter recognized as a Long-term provision. The aggregated impact on Goodwill and Other intangible assets was EUR 69 million and EUR 105 million respectively. Opening balance positions are provisional and subject to final purchase price adjustments, which are expected to be finalized in the third quarter of 2020. The primary provisional accounts subject to change are related to acquired intangible assets and goodwill. Divestments Philips completed two divestments in 2019 which resulted in an aggregated cash consideration of EUR 122 million and a gain of EUR 62 million. The most notable was the sale of Photonics business in Germany. 2018 Philips completed nine acquisitions in 2018. The acquisitions involved an aggregated net cash outflow of EUR 476 million and a contingent consideration (including 2019 purchase price adjustments) of EUR 361 million at fair value. Including 2019 purchase price adjustments, these acquisitions had an aggregated impact on Goodwill and Other intangible assets of EUR 444 million and EUR 416 million respectively. EPD Solutions Ltd. (EPD) was the most notable acquisition and is discussed below. The remaining eight acquisitions involved an aggregated net cash outflow of EUR 228 million and a contingent consideration (including 2019 purchase price adjustments) of EUR 116 million at fair value. Separately, the net cash outflow ranged from EUR 2 million to EUR 90 million. Including 2019 purchase price adjustments, these remaining acquisitions had an aggregated impact on Goodwill and Other intangible assets of EUR 173 million and EUR 189 million respectively. The purchase price adjustments for the other acquisitions in aggregate recognized in 2019, resulted in an increase of EUR 5 million Goodwill, a decrease of EUR 27 million Other intangible assets, a decrease of EUR 11 million contingent consideration and an increase of EUR 11 million related to various other assets and liabilities. EPD On July 9, 2018 Philips acquired 100% of the outstanding shares of EPD for an upfront cash consideration of EUR 250 million and a contingent consideration, due between December 31, 2018 and December 31, 2030. In connection with the contingent consideration, the company recognized a Long-term provision of EUR 239 million at closing of the transaction, which was increased to EUR 245 million due to purchase price adjustments processed in the course of 2019. The estimated fair value of the contingent consideration is re-measured at each reporting period. Therefore, any changes in the fair value impacts reported earnings in each reporting period, thereby resulting in variability in earnings. For more details about the fair value measurements please refer to Fair value of financial assets and liabilities EPD is an innovator in image-guided procedures for cardiac arrhythmias (heart rhythm disorders). As of the date of acquisition, EPD is part of the Diagnosis & Treatment segment. In 2018, acquisition-related costs of EUR 6 million were recognized in General and administrative expenses. The condensed opening balance sheet of EPD, including final purchase price adjustments processed in the course of 2019, was as follows: EPD Opening Balance sheet as of acquisition date in millions of EUR Goodwill 271 Intangible assets excluding goodwill 227 Cash 2 Accounts payable and other payables (2) Deferred tax liabilities (3) Provision for contingent consideration (245) Total assets and liabilities 250 Financed by equity (250) The purchase price adjustments to Goodwill, contingent consideration and Deferred tax liabilities recognized in 2019 resulted in an increase of respectively EUR 9 million, EUR 6 million and EUR 3 million. Goodwill recognized in the amount of EUR 271 million mainly represents expected revenue synergies leveraging the complementarity between EPD's cardiac imaging and navigation system solutions and Philips' interventional imaging systems. Other intangible assets comprised of EUR 227 million of Technology amortized over 10 years. The fair value of Technology is determined using the multi-period excess earnings method, which is a valuation technique that estimates the fair value of an asset based on market participants' expectations of the cash flows associated with that asset over its remaining useful life. The fair value of Technology is based on an estimate of positive future cash flows associated with incremental profits related to excess earnings until 2032, discounted at a rate of 14.4%. As from acquisition date, the contribution of EPD to revenue and net income in 2018 was not material. Divestments Philips completed two divestments in 2018. The divestments involved an aggregated cash consideration of EUR 68 million. |
Interests in entities
Interests in entities | 12 Months Ended |
Dec. 31, 2019 | |
Interests in entities [Abstract] | |
Disclosure of interests in other entities [text block] | 5 In this section we discuss the nature of the company’s interests in its consolidated entities and associates, and the effects of those interests on the company’s financial position and financial performance. Group companies Below is a list of material subsidiaries as per December 31, 2019 representing greater than 5% of either the consolidated group Sales, Income from operations or Income from continuing operations (before any intra-group eliminations) of Group legal entities. All of the entities are fully consolidated in the group accounts of the company. Philips Group Interests in group companies in alphabetical order 2019 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips Medizin Systeme Böblingen GmbH Germany Philips GmbH Germany Philips Japan, Ltd. Japan Philips Electronics Nederland B.V. Netherlands Philips Consumer Lifestyle B.V. Netherlands Philips Ultrasound, Inc. United States Philips Oral Healthcare, LLC United States Philips North America LLC United States Respironics, Inc. United States Information related to Non-controlling interests As of December 31, 2019, six consolidated subsidiaries are not wholly owned by Philips (December 31, 2018: six). In 2019, Sales to third parties and Net income for these subsidiaries in aggregate are EUR 581 million (December 31, 2018: EUR 627 million) and EUR 9 million (December 31, 2018: EUR 27 million) respectively. Investments in associates Philips has investments in a number of associates. None of them are regarded as individually material. During 2019, Philips purchased three investments in associates, which involved an aggregate amount of EUR 1 million. Involvement with unconsolidated structured entities Philips founded three Philips Medical Capital (PMC) entities, in the United States, France and Germany, in which Philips holds a minority interest. Philips Medical Capital, LLC in the United States is the most significant entity. PMC entities provide healthcare equipment financing and leasing services to Philips customers for diagnostic imaging equipment, patient monitoring equipment, and clinical IT systems. The company concluded that it does not control, and therefore should not consolidate the PMC entities. In the United States, PMC operates as a subsidiary of De Lage Landen Financial Services, Inc. The same structure and treatment are applied to the PMC entities in the other countries, with other majority shareholders. Operating agreements are in place for all PMC entities, whereby acceptance of sales and financing transactions resides with the respective majority shareholder. After acceptance of a transaction by PMC, Philips transfers control and does not retain any obligations towards PMC or its customers, from the sales contracts. At December 31, 2019, Philips’ stake in Philips Medical Capital, LLC had a carrying value of EUR 25 million (December 31, 2018: EUR 24 million). The company does not have any material exposures to losses from interests in unconsolidated structured entities other than the invested amounts. |
Income from operations
Income from operations | 12 Months Ended |
Dec. 31, 2019 | |
Income from operations [Abstract] | |
Disclosure of income from operations [Text block] | 6 For information related to Sales on a segment and geographical basis, see Information by segment and main country Philips Group Sales and costs by nature in millions of EUR 2017 - 2019 2017 2018 2019 Sales 17,780 18,121 19,482 Costs of materials used (4,918) (4,826) (5,321) Employee benefit expenses (5,824) (5,827) (6,307) Depreciation and amortization 1 2 (1,025) (1,089) (1,402) Shipping and handling (602) (605) (636) Advertising and promotion (939) (937) (972) Lease expense 2 3 4 (227) (225) (52) Other operational costs 5 (2,804) (2,947) (3,114) Other business income (expenses) 76 55 (34) Income from operations 1,517 1,719 1,644 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2) Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment 3) For 2019 Lease expense relating to short-term and low value leases amounts to EUR 52 million 4) Lease expense includes other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor for 2018: EUR 32 million EUR 38 million 5) Other operational costs contain items which are dissimilar in nature and individually insignificant in amount to disclose separately. These costs contain among others expenses for outsourcing services, mainly in IT and HR, 3rd party workers, consultants, warranty, patents, costs for travelling, external legal services and EUR 94 million EUR 81 million EUR 90 million Sales composition and disaggregation Philips Group Sales composition in millions of EUR 2017 - 2019 2017 2018 2019 Goods 13,974 13,973 14,810 Services 3,477 3,325 3,811 Royalties 329 402 381 Total sales from contracts with customers 17,780 17,700 19,003 Other sources 1 421 479 Sales 17,780 18,121 19,482 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million EUR 273 million At December 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations from a sale of goods and services was EUR 11,692 million. The company expects to recognize approximately 49% of the remaining performance obligations within 1 year. Revenue expected to be recognized beyond 1 year is mostly related to longer term customer service and software contracts. Philips Group Disaggregation of Sale per segment in millions of EUR 2019 2019 Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Diagnosis & Treatment 5,428 2,988 8,417 68 8,485 Connected Care 3,545 718 4,263 411 4,674 Personal Health 5,848 6 5,854 - 5,854 Other 162 308 469 - 469 Philips Group 14,982 4,021 19,003 479 19,482 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sale per segment in millions of EUR 2017-2018 2017 2018 Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Diagnosis & Treatment 7,365 5,034 2,631 7,665 61 7,726 Connected Care 4,331 3,351 630 3,981 360 4,341 Personal Health 5,685 5,519 5 5,524 - 5,524 Other 400 282 249 530 - 530 Philips Group 17,780 14,186 3,514 17,700 421 18,121 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2019 2019 Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Western Europe 3,165 931 4,096 38 4,134 North America 4,944 1,894 6,837 114 6,951 Other mature geographies 1,226 357 1,583 322 1,905 Total mature geographies 9,335 3,181 12,515 474 12,990 Growth geographies 5,647 840 6,488 5 6,492 Sales 14,982 4,021 19,003 479 19,482 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2017 - 2018 2017 2018 Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Western Europe 3,802 3,174 780 3,955 35 3,990 North America 6,409 4,542 1,696 6,238 100 6,338 Other mature geographies 1,707 1,270 339 1,609 283 1,892 Total mature geographies 11,918 8,987 2,815 11,802 418 12,221 Growth geographies 5,862 5,199 700 5,898 2 5,901 Sales 17,780 14,186 3,514 17,700 421 18,121 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Costs of materials used Cost of materials used represents the inventory recognized in cost of sales. Employee benefit expenses Philips Group Employee benefit expenses in millions of EUR 2017 - 2019 2017 2018 2019 Salaries and wages 1 4,856 4,849 5,251 Post-employment benefits costs 347 351 379 Other social security and similar charges: - Required by law 514 524 564 - Voluntary 108 103 112 Employee benefit expenses 5,824 5,827 6,307 1) Salaries and wages includes EUR 105 million EUR 102 million EUR 122 million The employee benefit expenses relate to employees who are working on the payroll of Philips, both with permanent and temporary contracts. For further information on post-employment benefit costs, see Post-employment benefits For details on the remuneration of the members of the Board of Management and the Supervisory Board, see Information on remuneration Employees The average number of employees by category is summarized as follows: Philips Group Employees in FTEs 2017 - 2019 2017 2018 2019 Production 27,697 30,774 35,640 Research & development 9,787 10,700 12,287 Other 26,314 26,175 24,301 Employees 63,798 67,649 72,228 3rd party workers 8,098 7,239 6,164 Continuing operations 71,895 74,888 78,392 Discontinued operations 43,497 Philips Group 115,392 74,888 78,392 Employees consist of those persons working on the payroll of Philips and whose costs are reflected in the Employee benefit expenses table. 3 rd Philips Group Employees per geographical location in FTEs 2017 - 2019 2017 2018 2019 Netherlands 11,308 11,427 11,679 Other countries 60,587 63,460 66,713 Continuing operations 71,895 74,888 78,392 Discontinued operations 43,497 Philips Group 115,392 74,888 78,392 Depreciation and amortization Depreciation of property, plant and equipment and amortization of intangible assets, including impairments, are as follows: Philips Group Depreciation and amortization 1 2 in millions of EUR 2017 - 2019 2017 2018 2019 Depreciation of property, plant and equipment 437 438 645 Amortization of software 50 64 75 Amortization of other intangible assets 260 347 350 Amortization of development costs 277 240 332 Depreciation and amortization 1,025 1,089 1,402 1) Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment 2) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Depreciation of property, plant and equipment is primarily included in cost of sales. Amortization of the categories of other intangible assets are reported in selling expenses for brand names and customer relationships and are reported in cost of sales for technology based and other intangible assets. Amortization of development cost is included in research and development expenses. Shipping and handling Shipping and handling costs are included in cost of sales and selling expenses in Consolidated statements of income Significant accounting policies Advertising and promotion Advertising and promotion costs are included in selling expenses in Consolidated statements of income Audit fees The table below shows the fees attributable to the fiscal years 2017, 2018 and 2019 for services rendered by the respective Group auditors. Philips Group Agreed fees 2017 - 2019 2017 2018 2019 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 9.0 8.9 17.9 7.2 5.0 12.2 8.4 6.0 14.4 -consolidated financial statements 9.0 4.4 13.4 7.2 2.4 9.6 8.4 3.4 11.8 -statutory financial statements 4.5 4.5 2.6 2.6 2.6 2.6 Audit-related fees 2 0.8 0.7 1.5 0.6 0.4 1.0 0.5 0.2 0.7 -Sustainability assurance 0.7 0.7 0.4 0.4 0.4 0.4 -Other 0.1 0.7 0.8 0.2 0.4 0.6 0.1 0.2 0.3 Fees 9.7 9.6 19.4 7.8 5.4 13.2 8.9 6.2 15.1 1) Ernst & Young Accountants LLP 2) Also known as Assurance fees Other business income (expenses) Other business income (expenses) consists of the following: Philips Group Other business income (expenses) in millions of EUR 2017 - 2019 2017 2018 2019 Result on disposal of businesses: - income 15 45 69 - expense (5) - (2) Result on disposal of fixed assets: - income 96 20 5 - expense (1) (1) - Result on other remaining businesses: - income 41 23 81 - expense (62) (32) (88) Impairment of goodwill 1 (9) (97) Other business income (expense) 76 55 (34) Total other business income 152 88 155 Total other business expense (76) (33) (188) 1) Further information on goodwill movement can be found in Goodwill The result on disposal of businesses was mainly due to divestment of non-strategic businesses. The result on disposal of fixed assets was mainly due to sale of real estate assets. The result on other remaining businesses mainly relates to revaluation of contingent consideration, non-core revenue and various legal matters. For more information, please refer to Acquisitions and divestments |
Financial income and expenses
Financial income and expenses | 12 Months Ended |
Dec. 31, 2019 | |
Financial income and expenses [Abstract] | |
Financial income and expenses [Text block] | 7 Philips Group Financial income and expenses in millions of EUR 2017 - 2019 2017 2018 2019 Interest income 40 31 27 Interest income from loans and receivables 1 12 8 10 Interest income from cash and cash equivalents 28 22 17 Dividend income from financial assets 64 2 52 Net gains from disposal of financial assets 1 6 2 Net change in fair value of financial assets at fair value through profit or loss 7 17 Other financial income 14 12 17 Financial income 126 51 117 Interest expense (222) (188) (196) Interest on debt and borrowings (177) (158) (167) Finance charges under lease contract (8) (7) (6) Interest expenses - pensions (37) (23) (22) Provision-related accretion and interest (22) (15) (22) Net foreign exchange losses (2) (2) (2) Impairment loss of financial assets (2) - - Net change in fair value of financial assets at fair value through profit or loss (1) Other financial expenses (15) (58) (13) Financial expense (263) (264) (233) Financial income and expenses (137) (213) (117) 1) Interest income from net investments in finance leases amounts to EUR 4 million In 2019, net financial expenses decreased by EUR 96 million year-on-year, mainly due to dividend income from investments, while 2018 included financial charges of EUR 46 million related to bonds redemptions. Net interest expense in 2019 was EUR 12 million higher than in 2018, mainly due to interest expense of EUR 20 million on lease liabilities recorded in 2019 following the adoption of IFRS 16. In 2018, net financial expenses were EUR 213 million, which was EUR 76 million higher than in 2017. Other financial expenses included financial charges related to the early redemption of USD bonds of EUR 46 million. Net interest expense in 2018 was EUR 25 million lower than in 2017, mainly due to lower interest expenses on pensions and lower interest expenses on net debt * Equity *) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes [Abstract] | |
Disclosure of income tax [text block] | 8 The income tax expense of continuing operations amounted to EUR 337 million (2018: EUR 193 million, 2017 EUR 349 million). The components of income before taxes and income tax expense are as follows: Philips Group Income tax expense in millions of EUR 2017 - 2019 2017 2018 2019 Netherlands 929 636 784 Foreign 451 869 744 Income before taxes of continuing operations 1 1,381 1,505 1,528 Netherlands: Current tax (expense) benefit (15) (25) (26) Deferred tax (expense) benefit (150) 16 (71) Total tax (expense) benefit of continuing operations (Netherlands) (165) (9) (97) Foreign: Current tax (expense) benefit (258) (289) (297) Deferred tax (expense) benefit 73 105 57 Total tax (expense) benefit of continuing operations (foreign) (184) (184) (240) Income tax expense of continuing operations (349) (193) (337) 1) Income before tax excludes the result of investments in associates. Income tax expense of continuing operations excludes the tax benefit of the discontinued operations of EUR 9 million (2018: EUR 14 million tax benefit, 2017: EUR 182 million tax expense), further detailed in section Discontinued operations and assets classified as held for sale The components of income tax expense of continuing operations are as follows: Philips Group Current income tax expense in millions of EUR 2017 - 2019 2017 2018 2019 Current year tax (expense) benefit (275) (318) (322) Prior year tax (expense) benefit 3 4 (2) Current tax (expense) (272) (314) (324) Philips Group Deferred income tax expense In millions of EUR 2017 - 2019 2017 2018 2019 Changes to recognition of tax loss and credit carry forwards 23 (2) 59 Changes to recognition of temporary differences 35 4 (32) Prior year tax (expense) benefit 6 15 (7) Tax rate changes (72) (26) 2 Origination and reversal of temporary differences, tax losses and tax credits (69) 130 (35) Deferred tax (expense) benefit (77) 121 (13) Philips’ operations are subject to income taxes in various foreign jurisdictions. The statutory income tax rate varies per country, which results in a difference between the weighted average statutory income tax rate and the Netherlands’ statutory income tax rate of 25.0% (2018: 25.0% 2017: 25.0%). A reconciliation of the weighted average statutory income tax rate to the effective income tax rate of continuing operations is as follows: Philips Group Effective income tax rate in % 2017 - 2019 2017 2018 2019 Weighted average statutory income tax rate in % 24.5 24.9 25.2 Recognition of previously unrecognized tax loss and credit carryforwards (2.3) (0.4) (3.9) Unrecognized tax loss and credit carryforwards 0.6 0.5 0.1 Changes to recognition of temporary differences (2.6) (0.3) 2.1 Non-taxable income and tax incentives (9.8) (11.9) (9.5) Non-deductible expenses 6.4 3.7 5.3 Withholding and other taxes 4 4.5 3.7 Tax rate changes 5.2 1.8 (0.1) Prior year tax (0.6) (1.3) 0.6 Tax expenses (benefit) due to other tax liabilities (1.7) (8.6) (1.6) Others, net 1.5 (0.1) 0.2 Effective income tax rate 25.3 12.8 22.1 The effective income tax rate is lower than the weighted average statutory income tax rate in 2019 mainly due to recurring favorable tax incentives relating to R&D investments and export activities. In addition, business integration in 2019 resulted in one-off non-cash tax benefits which are mainly due to recognition of previously unrecognized tax loss carryforwards and higher tax incentives on export activities, partly offset by tax costs presented in changes to recognition of temporary differences. The increase in effective income tax rate compared to 2018 is mainly due to lower non-cash benefits from tax audit resolutions and business integration, partly offset by lower provisions for tax risks. Deferred tax assets and liabilities Deferred tax assets are recognized for temporary differences, unused tax losses, and unused tax credits to the extent that realization of the related tax benefits is probable. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Net deferred tax assets relate to the following underlying assets and liabilities and tax loss carryforwards (including tax credit carryforwards) and their movements during the years 2019 and 2018 respectively are presented in the tables below. The net deferred tax assets of EUR 1,721 million (2018: EUR 1,676 million) consist of deferred tax assets of EUR 1,865 million (2018:EUR 1,828 million) and deferred tax liabilities of EUR 143 million (2018: EUR 152 million). Of the total deferred tax assets of EUR 1,865 million at December 31, 2019 (2018: EUR 1,828 million), EUR 239 million (2018: EUR 203 million) is recognized in respect of entities in various countries where there have been tax losses in the current or preceding period. Management’s projections support the assumption that it is probable that the results of future operations will generate sufficient taxable income to utilize these deferred tax assets. At December 31, 2019 the temporary differences associated with investments, including potential income tax consequences on dividends, for which no deferred tax liabilities are recognized, aggregate to EUR 327 million (2018: EUR 186 million). Philips Group Deferred tax assets and liabilities in millions of EUR 2019 Balance as of January 1, 2019 recognized in income statement other 1 Balance as of December 31, 2019 Assets Liabilities Intangible assets (162) 317 (23) 132 280 (148) Property, plant and equipment 12 38 8 58 67 (9) Inventories 257 (6) 1 252 259 (7) Other assets 50 (15) 21 56 90 (33) Pensions and other employee benefits 267 4 (1) 269 270 (1) Other liabilities 428 (119) 25 334 436 (102) Deferred tax assets on tax loss carryforwards 824 (231) 27 620 620 Set-off deferred tax positions (156) 156 Net deferred tax assets 1,676 (13) 59 1,721 1,865 (143) 1) Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation differences, acquisitions and divestments. Philips Group Deferred tax assets and liabilities in millions of EUR 2018 Balance as of January 1, 2018 recognized in income statement other 1 Balance as of December 31, 2018 Assets Liabilities Intangible assets (383) 299 (78) (162) 90 (252) Property, plant and equipment 23 (13) 2 12 32 (20) Inventories 231 18 8 257 265 (8) Other assets 74 (38) 15 50 77 (27) Pensions and other employee benefits 265 (17) 19 267 269 (2) Other liabilities 536 (137) 30 428 537 (109) Deferred tax assets on tax loss carryforwards 819 11 (6) 824 824 Set-off deferred tax positions (265) 265 Net deferred tax assets 1,565 121 (10) 1,676 1,828 (152) 1) Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation differences, acquisitions and divestments. The company has available tax loss and credit carryforwards, which expire as follows: Philips Group Expiry years of net operating loss and credit carryforwards in millions of EUR Total Balance as of December 31, 2018 Unrecognized balance as of December 31, 2018 Total Balance as of December 31, 2019 Unrecognized balance as of December 31, 2019 Within 1 year 2 1 3 0 1 to 2 years 3 1 6 3 2 to 3 years 16 4 1,680 1,679 3 to 4 years 1,911 1,906 14 7 4 to 5 years 18 6 519 3 Later 2,312 36 1,173 12 Unlimited 1,728 1,123 1,746 1,123 Total 5,990 3,077 5,141 2,826 At December 31, 2019, the amount of deductible temporary differences for which no deferred tax asset has been recognized in the balance sheet was EUR 31 million (2018: EUR 37 million). Tax risks Philips is exposed to tax risks. With regard to these tax risks a liability is recognized if, as a result of a past event, Philips has an obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Following the presentation change in 2019, refer to Note 1 “ Significant accounting policies Transfer pricing risks Philips has issued transfer pricing directives, which are in accordance with international guidelines such as those of the Organization of Economic Co-operation and Development. In order to reduce the transfer pricing uncertainties, monitoring procedures are carried out by Group Tax to safeguard the correct implementation of the transfer pricing directives. However, tax disputes can arise due to inconsistent transfer pricing regimes and different views on "at arm's length" pricing. Tax risks on general and specific service agreements and licensing agreements Due to the centralization of certain activities (such as research and development, IT and group functions), costs are also centralized. As a consequence, these costs and/or revenues must be allocated to the beneficiaries, i.e. the various Philips entities. For that purpose, service contracts such as intra-group service agreements and licensing agreements are signed with a large number of group entities. Tax authorities review these intra-group service and licensing agreements, and may reject the implemented intra-group charges. Furthermore, buy in/out situations in the case of (de)mergers could affect the cost allocation resulting from the intragroup service agreements between countries. The same applies to the specific service agreements. Tax risks due to disentanglements and acquisitions When a subsidiary of Philips is disentangled, or a new company is acquired, tax risks may arise. Philips creates merger and acquisition (M&A) teams for these disentanglements or acquisitions. In addition to representatives from the involved business, these teams consist of specialists from various group functions and are formed, among other things, to identify tax risks and to reduce potential tax claims. Tax risks due to permanent establishments A permanent establishment may arise when a Philips entity has activities in another country, tax claims could arise in both countries on the same income. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Disclosure of earnings per share [text block] | 9 Philips Group Earnings per share in millions of EUR unless otherwise stated 1 2017 - 2019 2017 2018 2019 Income from continuing operations 1,028 1,310 1,192 Income (loss) attributable to non-controlling interest, from continuing operations 11 7 5 Income from continuing operations attributable to shareholders 1,017 1,303 1,186 Income from Discontinued operations 843 (213) (19) Income (loss) attributable to non-controlling interest, from Discontinued operations 203 Income from Discontinued operations attributable to shareholders 639 (213) (19) Net income attributable to shareholders 1,657 1,090 1,167 Weighted average number of common shares outstanding (after deduction of treasury shares) during the year 928,797,650 922,987,190 902,981,911 Plus incremental shares from assumed conversions of: Options 3,161,267 2,007,703 1,288,001 Performance shares 10,757,785 8,632,652 5,896,049 Restricted share rights 2,008,162 2,223,382 2,524,606 Forward contracts 407,193 Dilutive potential common shares 16,334,406 12,863,738 9,708,656 Diluted weighted average number of shares (after deduction of treasury shares) during the year 945,132,056 935,850,928 912,690,567 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 1.10 1.41 1.31 Income from Discontinued operations attributable to shareholders 0.69 (0.23) (0.02) Net income attributable to shareholders 1.78 1.18 1.29 Diluted earnings per common share in EUR 2 Income from continuing operations attributable to shareholders 1.08 1.39 1.30 Income from Discontinued operations attributable to shareholders 0.68 (0.23) (0.02) Net income attributable to shareholders 1.75 1.16 1.28 Dividend distributed per common share in euros 0.80 0.80 0.85 1) Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 2) The dilutive potential common shares are not taken into account in the periods for which there is a loss, as the effect would be antidilutive |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of property, plant and equipment [text block] | 10 Philips Group Property, plant and equipment in millions of EUR 2019 land and buildings machinery and installations other equipment prepayments and construction in progress total owned right-of-use owned right-of-use owned right-of-use owned right-of-use owned right-of-use Balance as of December 31, 2018 621 504 383 203 1,712 IFRS 16 adjustment (80) 769 (209) 209 (45) 116 (334) 1,094 Balance as of January 1, 2019 Cost 1,069 813 1,253 415 1,442 152 203 3,967 1,381 Accumulated depreciation (528) (44) (958) (206) (1,104) (36) (2,590) (286) Book value 541 769 295 209 338 116 203 1,378 1,094 Change in book value: Capital expenditures/additions 5 373 34 96 40 59 425 3 505 532 Assets available for use 51 6 108 138 4 (306) (3) (9) 7 Acquisitions - 27 1 28 Depreciation (30) (157) (123) (80) (157) (57) (310) (293) Impairments (17) (1) (14) (1) (9) (1) - - (40) (2) Reclassifications (74) 47 5 (30) 20 1 1 (99) 68 Translations differences and other 4 (9) 9 18 (14) - - 31 (23) Total changes (61) 260 19 16 26 11 120 1 105 289 Balance as of December 31, 2019 Cost 876 1,355 1,272 510 1,548 233 323 1 4,019 2,099 Accumulated depreciation (395) (326) (957) (285) (1,184) (105) (2,536) (716) Book value 481 1,029 314 225 365 127 323 1 1,483 1,383 Philips Group Property, plant and equipment in millions of EUR 2018 land and buildings machinery and installations other equipment prepayments and construction in progress total Balance as of January 1, 2018 Cost 1,111 1,708 1,449 140 4,408 Accumulated depreciation (527) (1,217) (1,074) (2,818) Book value 584 491 376 140 1,591 Change in book value: Capital expenditures 20 126 64 337 546 Assets available for use 68 99 108 (275) - Acquisitions - (5) 7 2 Depreciation (56) (191) (162) (409) Impairments (5) (13) (12) (30) Translations differences and other 11 (2) 4 13 Total changes 37 13 7 63 121 Balance as of December 31, 2018 Cost 1,193 1,669 1,523 203 4,588 Accumulated depreciation (572) (1,164) (1,140) (2,876) Book value 621 504 383 203 1,712 Land with a book value of EUR 51 million (2018: EUR 56 million) is not depreciated. The increase in Property, plant and equipment mainly relates to the implementation of IFRS 16. The right-of-use assets recognized on the balance sheet is EUR 760 million as of January 1, 2019. The expected useful lives of property, plant and equipment are as follows: Philips Group Useful lives of property, plant and equipment in years Buildings from 5 to 50 years Machinery and installations from 3 to 20 years Other equipment from 1 to 10 years |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
Disclosure of goodwill [text block] | 11 The changes in 2018 and 2019 were as follows: Philips Group Goodwill in millions EUR 2018 - 2019 2018 2019 Balance as of January 1: Cost 9,074 9,908 Impairments (1,343) (1,405) Book value 7,731 8,503 Changes in book value: Acquisitions 465 83 Impairments (97) Divestments and transfers to assets classified as held for sale (3) - Translation differences and other 310 165 Balance as of December 31: Cost 9,908 10,182 Impairments (1,405) (1,528) Book value 8,503 8,654 Goodwill increased by EUR 83 million in 2019 primarily as a result of several acquisitions of which none were individually material (refer to Acquisitions and divestments In 2018, goodwill increased by EUR 465 million, mainly from the acquisition of EPD Solutions for an amount of EUR 262 million and other acquisitions for an amount of EUR 203 million. The further increase of EUR 310 million is mainly due to translation differences which impacted the goodwill denominated in USD. Goodwill reallocations in 2019 and 2018 In 2019 there were several changes to the CGU structure following the reorganization announced in January 2019 in order to align business with customer needs (refer to Significant accounting policies In addition, there were also certain CGU movements and/or combinations within Business Groups (BGs) that did not result in a reallocation of goodwill, but resulted in changes to the BG structure. This did not have a significant impact on headroom or lead to goodwill impairments. In Q4 2019 CGU PIC/VH and Aging & Caregiving combined into one Population Health Management (PHM) CGU. Unrelated to this combination, prior to this in Q3 the then PIC/VH CGU recognized a goodwill impairment which is further explained below. In 2018, the activities of Patient Care & Monitoring Solutions in the segment Connected Care & Health Informatics were split over two new cash-generating units: Monitoring & Analytics and Therapeutic Care. As a result of the change, the goodwill associated with Patient Care & Monitoring Solutions was allocated over these two new units based on the estimated fair value of Monitoring & Analytics and Therapeutic Care relative to the Q4 2017 Patient Care & Monitoring Solutions value in use calculation. Impairments in 2019 During the third quarter of 2019, it was determined that the PIC/VH CGU within the segment Connected Care would miss its forecast mainly due to a deterioration in EBITA * During December 2019, it was determined that the Neuro CGU within the segment D&T would be shut down. The Neuro business provided an integrated neurology solution comprising full head HD EEG with diagnostic imaging to map brain activity and anatomy for a wide range of neuro disorders, and uses machine learning to improve diagnosis of various neuro disorders. The value of the CGU based on the value in use test presented a recoverable amount of nil, while the carrying amount of goodwill totaled EUR 19 million at the time of impairment. This resulted in a write-off of the full goodwill balance and a EUR 19 million impairment charge, which was booked in the line Other business expenses in the statement of income. Goodwill impairment testing For impairment testing, goodwill is allocated to cash generating units (typically one level below segment level, i.e. at the BG level), which represent the lowest level at which the goodwill is monitored internally for management purposes. Goodwill allocated to the cash generating units Image-Guided Therapy, Monitoring & Analytics and Sleep & Respiratory Care is considered to be significant in comparison to the total book value of goodwill for the Group at December 31, 2019. The amounts associated as of December 31, 2019 are presented below: Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2018 - 2019 2018 2019 Image-Guided Therapy 2,357 2,673 Monitoring & Analytics 1,354 1,360 Sleep & Respiratory Care 1,925 2,071 Other (units carrying a non-significant goodwill balance) 2,867 2,550 Book value 8,503 8,654 The basis of the recoverable amount used in the annual impairment tests for the units disclosed further in this note is the value in use. In the annual impairment test performed in the fourth quarter of 2019, the estimated recoverable amounts of the CGUs tested equaled or exceeded the carrying value of the units, therefore no impairment loss was recognized. Key assumptions - general Key assumptions used in the impairment tests for the units were sales growth rates, EBITA * The sales growth rates and EBITA * * The rates used for discounting the projected cash flows in goodwill impairment testing is based on a BG weighted cost of capital (WACC), which in turn is based on BG-specific inputs along with other inputs as mentioned below. The WACC is based on post-tax cost of equity and cost of debt, and is further calculated based on market data and inputs to accurately capture changes to the time value of money, such as the risk-free interest rate, the beta factor and country risk premium. In order to properly reflect the different risk-profiles of different businesses, a WACC is determined for each BG. As such, the beta factor is determined based on a selection of peer companies, which can differ per BG. Different BGs have different geographical footprints, resulting in BG-specific inputs for variables like country risk. Key assumptions and sensitivity analysis relating to cash-generating units to which a significant amount of goodwill is allocated Cash flow projections of Image-Guided Therapy, Monitoring & Analytics and Sleep & Respiratory Care are based on the key assumptions included in the table below, which were used in the annual impairment test performed in the fourth quarter: Philips Group Key assumptions in % 2019 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 9.3 6.4 2.5 8.8 Monitoring & Analytics 4.6 3.8 2.5 10.1 Sleep & Respiratory Care 8.1 4.8 2.5 9.7 1) Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2) Also referred to later in the text as compound long-term sales growth rate 3) The historical long-term growth rate is only applied to the first year after the 4 year extrapolation period, after which no further growth is assumed for the terminal value calculation The assumptions used for the 2018 cash flow projections were as follows: Philips Group Key assumptions in % 2018 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 8.1 5.2 2.3 9.3 Patient Care & Monitoring Solutions 6.5 4.0 2.3 9.9 Sleep & Respiratory Care 8.4 4.8 2.3 10.6 1) Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2) Also referred to later in the text as compound long-term sales growth rate 3) The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation The results of the annual impairment test of Image-Guided Therapy, Monitoring & Analytics and Sleep & Respiratory Care indicate that a reasonably possible change in key assumptions would not cause the value in use to fall to the level of the carrying value. Additional information relating to cash-generating units to which a non-significant amount relative to the total goodwill is allocated In addition to the significant goodwill recorded at the units mentioned above, the PHM CGU is sensitive to fluctuations in the assumptions as set out above. The most recent PHM goodwill impairment test used compound sales growth rates of 11.5% (initial forecast period) and 10.4% (extrapolation period), which is above past performance and market growth given the start-up nature of this business. A pre-tax discount rate of 10.1% was applied. Further to the test, it was noted that an increase of 50 basis points in the pre-tax discount rate, a 180 basis points decline in the compound long-term sales growth rate or a 9% decrease in terminal value would, individually, cause its recoverable amount to fall to the level of its carrying value. The goodwill allocated to PHM at December 31, 2019 amounts to EUR 176 million. Impairment tests are performed based on forward looking assumptions, using the most recent available information. By their nature, these assumptions involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from the plans, goals and expectations set forth in these assumptions. Any downward deviation in the mentioned key assumptions for the PHM CGU is likely to cause the recoverable amount to fall below the level of its carrying value. For the other cash generating units to which a non-significant amount relative to the total goodwill is allocated, any reasonable change in assumptions would not cause the value in use to fall to the level of the carrying value. *) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Information by segment and main country |
Intangible assets excluding goo
Intangible assets excluding goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets excluding goodwill [Abstract] | |
Disclosure of intangible assets excluding goodwill [Text block] | 12 The changes were as follows: Philips Group Intangible assets excluding goodwill in millions of EUR 2019 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2019 Cost 689 2,421 2,400 2,103 532 684 168 8,997 Amortization/ impairments (484) (1,488) (1,330) (1,483) (51) (480) (93) (5,408) Book value 205 934 1,070 621 481 204 75 3,589 Changes in book value: Additions - 28 (1) 338 129 4 497 Assets available for use 296 (296) - 1 Acquisitions 3 56 24 - (5) 77 Amortization (31) (119) (127) (229) (75) (6) (587) Impairments - - (66) (96) (8) - (171) Translation differences and other 7 20 32 - 8 - (9) 59 Total changes (21) (44) (110) (29) 41 54 (16) (124) Balance as of December 31, 2019 Cost 709 2,476 2,491 2,387 578 784 154 9,579 Amortization/ impairments (524) (1,587) (1,530) (1,795) (56) (527) (94) (6,113) Book Value 184 890 961 592 523 257 59 3,466 Philips Intangible assets excluding goodwill in millions of EUR 2018 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2018 Cost 670 2,342 1,985 1,848 487 605 105 8,042 Amortization/ impairments (392) (1,338) (1,161) (1,262) (51) (431) (84) (4,720) Book value 278 1,004 824 586 436 174 21 3,322 Changes in book value: Additions 7 14 295 92 1 408 Assets available for use 256 (256) Acquisitions 11 17 330 0 56 415 Amortization (34) (114) (116) (221) (59) (4) (549) Impairments (52) (16) (9) (16) (1) (5) (2) (101) Translation differences 3 36 27 15 8 2 3 94 Total changes (72) (70) 246 34 45 30 53 267 Balance as of December 31, 2018 Cost 689 2,421 2,400 2,103 532 684 168 8,997 Accumulated amortization (484) (1,488) (1,330) (1,483) (51) (480) (93) (5,408) Book Value 205 934 1,070 621 481 204 75 3,589 Acquisitions in 2019 involved Intangible assets of EUR 77 million in aggregate (2018: EUR 415 million ). For more information, please refer to Acquisitions and divestments Income from operations The expected useful lives of the intangible assets excluding goodwill are as follows: Philips Group Expected useful lives of intangible assets excluding goodwill in years Brand names 2-20 Customer relationships 2-25 Technology 3-20 Other 1-10 Software 1-10 Product development 3-7 The weighted average expected remaining life of brand names, customer relationships, technology and other intangible assets is 8.2 years as of December 31, 2019 (2018: 9.3 years). The most notable intangible asset as of December 31, 2019 relates to the Spectranetics customer relationships and technology with a carrying value of EUR 333 million and EUR 252 million and a remaining amortization period of 18 years and 13 years respectively. The most notable intangible asset of December 31, 2018 relates to Sleep & Respiratory Care customer relationships with a carrying value of EUR 278 million and a remaining amortization period of 5 years. |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2019 | |
Other financial assets [Abstract] | |
Disclosure of other financial assets [Text block] | 13 Other current financial assets In 2019, Other current financial assets decreased by EUR 435 million from EUR 436 million in 2018 to EUR 1 million in 2019. In 2019, according to Philips' overall objective to fully divest its ownership of Signify, Philips sold all of its remaining shares in Signify for total proceeds of EUR 549 million. A cumulative gain of EUR 114 million was recognized in other comprehensive income and reclassified to retained earnings upon disposal. In 2018, Other current financial assets increased by EUR 434 million from EUR 2 million in 2017 to EUR 436 million in 2018, reflecting mainly the interest in Signify of 16.5% as of December 31, 2018 (refer to Interests in entities Other non-current financial assets The changes during 2019 were as follows: Philips Group Other non-current financial assets in millions of EUR 2019 Non-current financial assets at FVTP&L Non-current financial assets at FVTOCI Non-current financial assets at Amortized cost Total Balance as of January 1, 2019 116 198 46 360 Changes: Acquisitions/additions 48 15 11 75 Sales/redemptions/reductions (48) (109) (17) (174) Value adjustment through OCI - (33) - (33) Value adjustment through P&L 18 - - 18 Translation differences and other 1 2 - 3 Reclassifications 1 (1) (1) (1) Balance as of December 31, 2019 136 72 40 248 Philips Group Other non-current financial assets in millions of EUR 2018 Non-current financial assets at FVTP&L Non-current financial assets at FVTOCI Non-current financial assets at Amortized cost Total Balance as of January 1, 2018 104 369 114 587 Changes: Acquisitions/additions 30 1 14 45 Sales/redemptions/reductions (20) (18) (78) (116) Value adjustment through OCI - (164) (164) Value adjustment through P&L (2) - (1) Translation differences and other 2 12 (4) 10 Reclassifications 2 (2) - - Balance as of December 31, 2018 116 198 46 360 The company’s investments in Other non-current financial assets mainly consist of investments in common shares of companies in various industries. At December 31, 2019, equity investments of EUR 45 million (2018: EUR 172 million) are accounted under the FVTOCI category based on the company's election at initial recognition mainly because such investments are neither held for trading purposes nor primarily for their increase in value and the elected presentation is considered to reflect the nature and purpose of the investment. In 2019, the main movements in Other non-current financial assets at FVTOCI related to the sale of the company's investment in Corindus Vascular Robotics for total proceeds of EUR 102 million. A cumulative gain of EUR 84 million was recognized in other comprehensive income and reclassified to retained earnings upon disposal. Value adjustments through OCI in 2019 mainly related to Luminescence and Corindus (refer to Fair value of financial assets and liabilities In 2019, a cumulative gain of EUR 204 million (2018: 0 million) was realized upon disposal of investments at FVOCI and reclassified from OCI to retained earnings. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2019 | |
Other assets [Abstract] | |
Disclosure of other non-current assets [text block] | 14 Other non-current assets Other non-current assets in 2019 were EUR 47 million(2018: EUR 47 million). These mainly related to prepaid expenses. Other current assets Other current assets include EUR 288 million (2018: EUR 276 million) accrued income and EUR 188 million (2018: EUR 193 million) for prepaid expense mainly related to Diagnosis & Treatment businesses and Connected Care businesses. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Disclosure of inventories [text block] | 15 Inventories are summarized as follows: Philips Group Inventories in millions of EUR 2018 - 2019 2018 2019 Raw materials and supplies 876 901 Work in process 366 403 Finished goods 1,432 1,469 Inventories 2,674 2,773 The write-down of inventories to net realizable value was EUR 138 million in 2019 (2018: EUR 159 million). The write-down is included in cost of sales. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Disclosure of trade and other receivables [text block] | 16 Non-current receivables Non-current receivables are associated mainly with customer financing in the Diagnosis & Treatment businesses amounting to EUR 31 million (2018: EUR 44 million), for Signify indemnification amounting to EUR 76 million and insurance receivables in Other in the US amounting to EUR 41 million (2018: EUR 41 million). Current receivables Current receivables of EUR 4,554 million (2018: EUR 4,035 million) at December 31, 2019 included trade accounts receivable (net of allowance) of EUR 4,280 million (2018: EUR 3,805 million), accounts receivable other of EUR 242 million (2018: EUR 203 million) and accounts receivable from investments in associates of EUR 32 million (2018: EUR 27 million). The accounts receivable, net, per segment are as follows: Philips Group Accounts receivables-net in millions of EUR 2018 - 2019 2018 2019 Diagnosis & Treatment 1,738 1,905 Connected Care 1,020 1,089 Personal Health 995 1,122 Other 53 163 Accounts receivable-net 3,805 4,280 The aging analysis of accounts receivable, net, is set out below: Philips Group Aging analysis in millions of EUR 2018 - 2019 2018 2019 current 3,222 3,591 overdue 1-30 days 228 251 overdue 31-180 days 270 333 overdue > 180 days 85 105 Accounts receivable-net 3,805 4,280 The above net accounts receivable represent current and overdue but not fully impaired receivables. The overdue balances have been netted off against the credit notes amounting to EUR 50 million. The changes in the allowance for doubtful accounts receivable are as follows: Philips Group Allowance for accounts receivable in millions of EUR 2018 - 2019 2018 2019 Balance as of January 1 215 194 Additions charged to expense 28 23 Deductions from allowance 1 (28) (9) Transfer to assets held for sale Other movements (21) 3 Balance as of December 31 194 211 1) Write-offs for which an allowance was previously provided. The allowance for doubtful accounts receivable has been primarily established for receivables that are past due. Included in the above balances as per December 31, 2019 are allowances for individually impaired receivables of EUR 200 million (2018: EUR 181 million) . Contract assets Current contract assets were EUR 247 million per December 31, 2019 (2018: EUR 232 million). The contract assets increased with EUR 15 million. The year-on-year change is mainly driven by timing differences between billing terms and services provided. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [abstract] | |
Disclosure of equity [Text block] | 17 Common shares As of December 31, 2019, authorized common shares consist of 2 billion shares (December 31, 2018: 2 billion; December 31, 2017: 2 billion) and the issued and fully paid share capital consists of 896,733,721 common shares, each share having a par value of EUR 0.20 (December 31, 2018: 926,195,539; December 31, 2017: 940,909,027). Preference shares As a means to protect the Company and its stakeholders against an unsolicited attempt to obtain (de facto) control of the Company, the General Meeting of Shareholders in 1989 adopted amendments to the Company’s articles of association that allow the Board of Management and the Supervisory Board to issue (rights to acquire) preference shares to a third party. The ‘Stichting Preferente Aandelen Philips’ has been granted the right to acquire preference shares in the Company. Such right has not been exercised as of December 31, 2019 and no preference shares have been issued. Authorized preference shares consist of 2 billion shares as of December 31, 2019 (December 31, 2018: 2 billion; December 31, 2017: 2 billion). Options, restricted and performance shares The Company has granted stock options on its common shares and rights to receive common shares in the future (see Share-based compensation Treasury shares In connection with the Company’s share repurchase programs (see next paragraph: Share repurchase methods for share-based compensation plans and capital reduction purposes), shares which have been repurchased and are held in Treasury for the purpose of (i) delivery upon exercise of options, restricted and performance share programs, and (ii) capital reduction, are accounted for as a reduction of shareholders’ equity. Treasury shares are recorded at cost, representing the market price on the acquisition date. When issued, shares are removed from treasury shares on a first-in, first-out (FIFO) basis. When treasury shares are reissued under the Company’s option plans, the difference between the cost and the cash received is recorded in retained earnings. When treasury shares are reissued under the Company’s share plans, the difference between the market price of the shares issued and the cost is recorded in retained earnings, the market price is recorded in capital in excess of par value. The following table shows the movements in the outstanding number of shares over the last three years: Philips Group Outstanding number of shares 2017 - 2019 2017 2018 2019 Balance as of January 1 922,436,563 926,191,723 914,184,087 Dividend distributed 11,264,163 9,533,223 9,079,538 Purchase of treasury shares (19,841,595) (31,993,879) (40,390,495) Re-issuance of treasury shares 12,332,592 10,453,020 8,100,660 Balance as of December 31 926,191,723 914,184,087 890,973,790 The following transactions took place resulting from employee option and share plans: Philips Group Employee option and share plan transactions 2017 - 2019 2017 2018 2019 Shares acquired 15,222,662 8,226,101 5,497,675 Average market price EUR 31.81 EUR 32.59 EUR 34.25 Amount paid EUR 484 million EUR 268 million EUR 188 million Shares delivered 12,332,592 10,453,020 8,100,660 Average price (FIFO) EUR 27.07 EUR 32.66 EUR 32.87 Cost of delivered shares EUR 334 million EUR 341 million EUR 266 million Total shares in treasury at year-end 10,098,371 7,871,452 5,268,467 Total cost EUR 331 million EUR 258 million EUR 180 million In order to reduce share capital, the following transactions took place: Philips Group Share capital transactions 2017 - 2019 2017 2018 2019 Shares acquired 4,618,933 23,767,778 34,892,820 Average market price EUR 32.47 EUR 32.58 EUR 34.29 Amount paid EUR 150 million EUR 774 million EUR 1,196 million Cancellation of treasury shares (shares) 24,246,711 38,541,356 Cancellation of treasury shares (EUR) EUR 783 million EUR 1,316 million Total shares in treasury at year-end 4,618,933 4,140,000 491,464 Total cost EUR 150 million EUR 141 million EUR 22 million Share purchase transactions related to employee option and share plans, as well as transactions related to the reduction of share capital, involved a cash outflow of EUR 1,376 million. A cash inflow of EUR 58 million from treasury shares mainly includes settlements of share-based compensation plans. Share repurchase methods for share-based compensation plans and capital reduction purposes During 2019, Royal Philips repurchased shares for share-based compensation plans and capital reduction purposes via three different methods: (i) share buy-back repurchases in the open market via an intermediary (ii) repurchase of shares via forward contracts for future delivery of shares (iii) the unwinding of call options on own shares. In 2019, Royal Philips also used methods (i) and (ii) to repurchase shares for capital reduction purposes. Forward share repurchase contracts In order to hedge commitments under share-based compensation plans, Philips entered into three forward contracts in the last quarter of 2018, involving 10,000,000 shares with a settlement date varying between October 2019 and November 2021 and a weighted average forward price of EUR 31.89. A total of 4,000,000 shares were acquired through forward contracts that were settled in the fourth quarter of 2019, which resulted in a EUR 130 million increase in retained earnings against treasury shares. As of December 31, 2019, 6,000,000 forward contracts connected to share-based compensation plans were outstanding. In order to reduce its share capital, Royal Philips also entered into six forward contracts in 2017. The forward contacts involved 31,020,000 shares with a settlement date varying between October 2018 and June 2019 and a weighted average forward price of EUR 32.22. In 2019, 18,600,000 forward contracts were exercised resulting in a EUR 576 million increase in Retained earnings against Treasury shares. As of December 31, 2018, 18,600,000 were outstanding. As of December 31, 2019, there were no forward contracts connected to share capital reductions outstanding. For further information on the forward contracts please refer to Debt Share call options During 2016 Philips bought EUR and USD-denominated call options to hedge options granted under share-based compensation plans before 2013. In 2019, the company unwound 855,039 EUR-denominated and 642,636 USD-denominated call options against the transfer of the same number of Royal Philips shares (1,497,675 shares) and an additional EUR 30 million cash payment to the buyer of the call options. The number of outstanding EUR denominated options were 1,168,600 and USD-denominated options were 1,127,582, as of December 31, 2019. Dividend distribution 2019 In June 2019, Philips settled a dividend of EUR 0.85 per common share, representing a total value of EUR 775 million including costs. Shareholders could elect for a cash dividend or a share dividend. Approximately 42% of the shareholders elected for a share dividend, resulting in the issuance of 9,079,538 new common shares. The settlement of the cash dividend involved an amount of EUR 453 million (including costs). A proposal will be submitted to the 2020 Annual General Meeting of Shareholders to pay a dividend of EUR 0.85 per common share, in cash or shares at the option of the shareholders, against the net income of the Company for 2019. 2018 In June 2018, Philips settled a dividend of EUR 0.80 per common share, representing a total value of EUR 738 million including costs. Shareholders could elect for a cash dividend or a share dividend. Approximately 46% of the shareholders elected for a share dividend, resulting in the issuance of 9,533,233 new common shares. The settlement of the cash dividend involved an amount of EUR 400 million (including costs). 2017 In June 2017, Philips settled a dividend of EUR 0.80 per common share, representing a total value of EUR 742 million including costs. Shareholders could elect for a cash dividend or a share dividend. Approximately 48% of the shareholders elected for a share dividend, resulting in the issuance of 11,264,163 new common shares. The settlement of the cash dividend involved an amount of EUR 384 million (including costs) Limitations in the distribution of shareholders’ equity As at December 31, 2019, pursuant to Dutch law, certain limitations exist relating to the distribution of shareholders’ equity of EUR 1,870 million. Such limitations relate to common shares of EUR 179 million, as well as to legal reserves required by Dutch law included under retained earnings of EUR 713 million and unrealized currency translation differences of EUR 978 million. The unrealized losses related to fair value through OCI financial assets of EUR 303 million and unrealized losses related to cash flow hedges of EUR 24 million qualify as revaluation reserves and reduce the distributable amount due to the fact that these reserves are negative. The legal reserve required by Dutch law of EUR 713 million included under retained earnings relates to any legal or economic restrictions on the ability of affiliated companies to transfer funds to the parent company in the form of dividends. As at December 31, 2018, these limitations in distributable amounts were EUR 1,558 million and related to common shares of EUR 185 million, as well as to legal reserves required by Dutch law included under retained earnings of EUR 634 million and unrealized currency translation differences of EUR 739 million. The unrealized losses related to fair value through OCI financial assets of EUR 181 million and unrealized losses related to cash flow hedges of EUR 10 million qualify as a revaluation reserve and reduce the distributable amount due to the fact that this reserve is negative. Non-controlling interests Non-controlling interests relate to minority stakes held by third parties in consolidated group companies. Capital management Philips manages capital based upon the IFRS measures, net cash provided by operating activities and net cash used for investing activities as well as the non-IFRS measure net debt * Net debt * * * * Philips Group Composition of net debt and group equity 1 in millions of EUR unless otherwise stated 2017 - 2019 2017 2018 2019 Long-term debt 4,044 3,427 4,939 Short-term debt 672 1,394 508 Total debt 4,715 4,821 5,447 Cash and cash equivalents 1,939 1,688 1,425 Net debt 1 2,776 3,132 4,022 Shareholders' equity 11,999 12,088 12,597 Non-controlling interests 24 29 28 Group equity 12,023 12,117 12,625 Net debt and group equity ratio 1 19:81 21:79 24:76 1) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information Adjusted income from continuing operations attributable to shareholders * * Philips Group Adjusted income from continuing operations attributable to shareholders 1 2 2018-2019 2018 2019 Net income 1,097 1,173 Discontinued operations, net of income taxes 213 19 Income from continuing operations 1,310 1,192 Continuing operations non-controlling interests (7) (5) Income from continuing operations attributable to shareholders 1 2 1,303 1,186 Adjustments for: Amortization of acquired intangible assets 347 350 Impairment of goodwill 97 Restructuring costs and acquisition-related charges 258 318 Other items 41 153 Net finance expenses 57 14 Tax impact of adjusted items (365) (280) Adjusted Income from continuing operations attributable to shareholders 1 2 1,643 1,839 1) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information 2) Shareholders in this table refers to shareholders of Koninklijke Philips N.V. *) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt [Abstract] | |
Disclosure of debt [Text block] | 18 Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby revolving credit facility that can be used for general group purposes, such as a backstop of its Commercial Paper Program. Philips issued and repaid commercial paper in 2019. As of December 31, 2019, Philips did not have any loans outstanding under either facility. In February 2019, Philips successfully exercised, with existing terms and conditions, the second of two 1-year extension options of its EUR 1 billion committed standby revolving credit facility, extending the maturity date to April 21, 2024. The facility does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. The provisions applicable to all USD-denominated corporate bonds issued by the company in March 2008 and March 2012 (due 2038 and 2042) 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 might be required to offer to purchase the bonds that are still outstanding at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any. Furthermore, the conditions applicable to the EUR-denominated corporate bonds issued in 2017, 2018 and 2019 (due 2023, 2024, 2026 and 2028) contain a similar provision (‘Change of Control Put Event’). Upon the occurrence of such an event, the company might be required to redeem or purchase any of such bonds at their principal amount together with interest accrued. As of January 1, 2019 lease liabilities of EUR 803 million were recognized upon the adoption of IFRS 16 and additional lease liabilities of EUR 256 million were recognized through December 31, 2019. For further details please refer to Significant accounting policies In March 2018, Philips refinanced a loan of EUR 178 million with a new long-term loan of EUR 200 million bearing interest based on 6-month Euribor. In April 2018, Philips completed the early redemption of all the 3.750% USD bonds due 2022 with an aggregate principal amount of USD 1 billion, resulting in financial charges of EUR 24 million. For the purpose of the redemption, a EUR 900 million loan was entered into, which was repaid in May 2018 through the issuance of fixed-rate EUR bonds with an aggregate principal amount of EUR 1 billion (EUR 500 million0.750% due 2024 and EUR 500 million1.375% due 2028). 6.875% USD bonds due 2038 with an aggregate principal amount of USD 56 million and USD 16 million were redeemed in May and June 2018 respectively, resulting in financial charges of EUR 21 million. In Q4 2018, a nominal amount of EUR 423 million of forward contracts related to the EUR 1.5 billion share buyback program announced on June 28, 2017 matured. In addition, in Q4 2018, Philips entered into three tranches of forward purchases totaling 10 million shares for a nominal amount of EUR 319 million maturing through 2021 to cover its long-term incentive and employee stock purchase plans. Long-term debt The below tables present information about the long-term debt outstanding, its maturity and average interest rates in 2019 and 2018. Philips Group Long-term debt in millions of EUR unless otherwise stated 2019 amount outstanding in 2019 Current portion Non-current portion Between 1 and 5 years amount due after 5 years average remaining term (in years) average rate of interest USD bonds 1,328 1,328 1,328 17.1 6.3% EUR bonds 2,234 2,234 995 1,239 5.8 0.8% Forward contracts 188 126 62 62 1.2 Lease liability 1,381 272 1,109 618 491 4.3 2.4% Bank borrowings 206 1 205 5 200 5.1 0.3% Other long-term debt 17 17 1.0 1.8% Long-term debt 5,355 416 4,939 1,681 3,258 8.0 2.5% Philips Group Long-term debt in millions of EUR unless otherwise stated 2018 amount outstanding in 2018 Current portion Non-current portion Between 1 and 5 years amount due after 5 years average remaining term (in years) average rate of interest USD bonds 1,303 1,303 1,303 18.1 6.3% EUR bonds 1,988 500 1,488 497 991 5.0 0.7% Forward contracts 807 618 188 188 0.8 Finance leases 330 94 236 190 46 3.6 2.9% Bank borrowings 211 211 6 205 6.2 0.3% Other long-term debt 18 18 - - - 1.1 1.6% Long-term debt 4,657 1,230 3,427 882 2,545 7.9 2.3% Bonds The below table discloses the amount outstanding and effective rate of bonds. Philips Group Unsecured Bonds in millions of EUR unless otherwise stated 2018 - 2019 effective rate 2018 2019 Unsecured EUR Bonds Due 9/06/2023; 1/2% 0.634% 500 500 Due 9/06/2019; 3M Euribor +20bps 500 Due 5/02/2024; 3/4% 0.861% 500 500 Due 22/05/2026; 1/2% 0.608% 750 Due 5/02/2028; 1 3/8% 1.523% 500 500 Unsecured USD Bonds Due 5/15/2025; 7 3/4% 7.429% 55 56 Due 6/01/2026; 7 1/5% 6.885% 119 122 Due 5/15/2025; 7 1/8% 6.794% 74 75 Due 11/03/2038; 6 7/8% 7.210% 636 648 Due 3/15/2042; 5% 5.273% 438 446 Adjustments 1 (31) (35) Unsecured Bonds 3,291 3,562 1) Adjustments related to both EUR and USD bonds and concern bond discounts, premium and transaction costs. Leases The table below discloses the reconciliation between the total of future minimum lease payments and their present value. For further information regarding the adoption of IFRS 16, please refer to Significant accounting policies Philips Group Lease liabilities in millions of EUR 2018 - 2019 2018 2019 future minimum lease payments interest present value of minimum lease payments future minimum lease payments interest present value of minimum lease payments Less than one year 100 6 94 292 20 272 Between one and five years 206 16 190 698 80 618 More than five years 52 6 46 543 52 491 Lease liability 357 28 330 1,533 152 1,381 Short-term debt Philips Group Short-term debt in millions of EUR 2018 - 2019 2018 2019 Short-term bank borrowings 76 92 Forward contracts 88 Current portion of long-term debt 1,230 416 Short-term debt 1,394 508 During 2019, the weighted average interest rate on the bank borrowings was 14.2% (2018: 15.0%), reflecting a higher relative amount of borrowings in high interest rate countries. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Disclosure of provisions [text block] | 19 Philips Group Provisions in millions of EUR 2018 - 2019 2018 2019 long-term short-term total long-term short-term total Post-employment benefit (see note 20) 835 835 824 824 Product warranty 37 153 190 38 172 210 Environmental provisions 124 20 144 145 25 170 Restructuring-related provisions 45 68 114 31 125 156 Litigation provisions 17 9 26 14 40 55 Contingent consideration provisions 385 24 409 245 108 354 Other provisions 345 88 432 305 86 392 Provisions 1,788 363 2,151 1,603 556 2,159 Assurance-type product warranty The provisions for assurance-type product warranty reflect the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to products sold. The company expects the provisions to be utilized mainly within the next year. Philips Group Provisions for assurance-type product warranty in millions of EUR 2017 - 2019 2017 2018 2019 Balance as of January 1 259 201 190 Changes: Additions 283 248 291 Utilizations (270) (261) (274) Transfer to liabilities directly associated with assets held for sale (56) Translation differences and other (16) 2 3 Balance as of December 31 201 190 210 Environmental provisions The environmental provisions include accrued costs recorded with respect to environmental remediation in various countries. In the United States, subsidiaries of the company have been named as potentially responsible parties in state and federal proceedings for the clean-up of certain sites. Provisions for environmental remediation can change significantly due to the emergence of additional information regarding the extent or nature of the contamination, the need to utilize alternative technologies, actions by regulatory authorities as well as changes in judgments and discount rates. Approximately EUR 85 million of the long-term provision is expected to be utilized after one to five years, with the remainder after five years. For more details on the environmental remediation reference is made to Contingent assets and liabilities Philips Group Environmental provisions in millions of EUR 2017 - 2019 2017 2018 2019 Balance as of January 1 321 160 144 Changes: Additions 18 23 20 Utilizations (21) (15) (18) Releases (8) (4) (1) Changes in discount rate 11 (28) 9 Accretion 6 5 5 Transfer to liabilities directly associated with assets held for sale (146) Translation differences and other (20) 4 12 Balance as of December 31 160 144 170 The additions and the releases of the provisions originate from additional insights in relation to factors like the estimated cost of remediation, changes in regulatory requirements and efficiencies in completion of various site work phases. Restructuring-related provisions Philips Group Restructuring-related provisions in millions of EUR 2019 Jan. 1, 2019 additions utilizations releases other changes Dec. 31, 2019 Diagnosis & Treatment 57 51 (37) (10) - 61 Connected Care 22 33 (16) (9) (2) 28 Personal Health 9 33 (12) (4) - 25 Other 26 57 (31) (11) - 42 Philips Group 114 175 (97) (34) (1) 156 In 2019, the most significant restructuring projects impacted Diagnostic & Treatment and Other businesses and mainly took place in the Netherlands, US and Germany. The restructuring comprised mainly product portfolio rationalization and the reorganization of global support functions. The company expects the provisions to be utilized mainly within the next year. 2018 In 2018, the most significant restructuring projects impacted Diagnosis & Treatment, Connected Care & Health Informatics and Other businesses and mainly took place in the Netherlands, Germany and the US. The movements in the provisions for restructuring in 2018 are presented by segment as follows: Philips Group Restructuring-related provision in millions of EUR 2018 Jan. 1, 2018 additions utilizations releases Dec. 31, 2018 Diagnosis & Treatment 45 62 (38) (12) 57 Connected Care 15 24 (10) (8) 22 Personal Health 6 8 (5) (1) 9 Other 45 42 (45) (16) 26 Philips Group 112 136 (98) (37) 114 2017 In 2017, the most significant restructuring projects impacted Diagnosis & Treatment and Other businesses and mainly took place in the Netherlands and the US. The movements in the provisions for restructuring in 2017 are presented by segment as follows: Philips Group Restructuring-related provisions in millions of EUR 2017 Jan. 1, 2017 additions utilizations releases other changes 1 Dec. 31, 2017 Diagnosis & Treatment 16 54 (19) (5) (1) 45 Connected Care 11 24 (12) (7) (1) 15 Personal Health 4 12 (4) (5) (1) 6 Other 37 52 (27) (16) (1) 45 Lighting (now Signify) 133 9 (35) (3) (104) Philips Group 201 150 (96) (37) (107) 112 1) Other changes primarily relate to translation differences and transfers between segments Litigation provisions The company and certain of its group companies and former group companies are involved as a party in legal proceedings, including regulatory and other governmental proceedings. Philips Group Litigation provisions in millions of EUR 2017 - 2019 2017 2018 2019 Balance as of January 1 96 50 26 Changes: Additions 40 17 69 Utilizations (52) (29) (36) Releases (11) (11) (6) Accretion 3 2 2 Transfer to liabilities directly associated with assets held for sale (21) Translation differences and other (5) (3) - Balance as of December 31 50 26 55 The most significant proceedings The majority of the movements in the above schedule related to the Cathode Ray Tube (CRT) antitrust litigation. Cathode Ray Tube (CRT) antitrust litigation In 2019 the majority of the movements in relation to the CRT antitrust litigation related to additions. In 2017 and 2018 the majority of the movements were utilizations due to the transfer to other liabilities for which the company was able to reach a settlement. These settlements were subsequently paid out in the respective following year. For more details reference is made to Contingent assets and liabilities Other In 2018 the translation differences in the schedule above are mainly explained by the movements in the BRL/EUR rate which impacted the litigation provisions denominated in BRL. In 2017 the translation differences are mainly explained by the movements in the USD/EUR rate which impacted the litigation provisions denominated in USD. The company expects the provisions to be utilized mainly within the next three years. Contingent consideration provisions Philips Group Contingent consideration provisions in millions of EUR 2017-2019 2017 2018 2019 Balance as of January 1 11 66 409 Changes: Additions - 6 32 Utilizations - (48) (44) Releases (2) (1) (68) Accretion 2 12 14 Acquisitions 62 366 6 Translation differences and other (8) 9 4 Balance as of December 31 66 409 354 The provision for contingent consideration reflects the fair value of the expected payment to former shareholders of an acquiree for the exchange of control if specified future events occur or conditions are met, such as the achievement of certain regulatory milestones or the achievement of certain commercial milestones. The provision for contingent consideration can change significantly due to changes in the estimated achievement of milestones and changes in discount rates. In 2018 the acquisitions through business combinations mainly consists of a provision for contingent consideration of EUR 239 million relating to the acquisition of EPD. For more details on the EPD contingent consideration refer to Fair value of financial assets and liabilities The company expects the provisions to be utilized mainly within the next five years. Other provisions Philips Group Other provisions in millions of EUR 2017 - 2019 2017 2018 2019 Closing balance as of December 31 720 499 432 IFRS 16 adjustment (6) Opening balance as of January 1 720 499 426 Changes: Additions 304 169 143 Utilizations (238) (178) (127) Releases (87) (57) (61) Accretion (2) 2 1 Transferred to liabilities directly associated with assets held for sale (156) Translation differences and other (43) (3) 10 Balance as of December 31 499 432 392 The main elements of other provisions are: provisions for possible taxes/social security of EUR 46 million (2018: EUR 65 million); provisions for employee jubilee funds EUR 82 million (2018: EUR 73 million); self-insurance provisions of EUR 47 million (2018: EUR 45 million); provisions for decommissioning costs of EUR 33 million (2018: EUR 32 million); provisions for rights of return of EUR 40 million (2018: EUR 35 million); the releases in 2017, 2018 and 2019 are due to the reassessment of our positions in other provisions; the remaining provisions relate to a variety of positions, for example provision for disability of employees and provision for royalty obligations. The company expects the provisions to be utilized mainly within the next five years, except for: provisions for employee jubilee funds of which half is expected to be utilized after five years; provisions for decommissioning costs of which half is expected to be utilized after five years; provisions for rights of return to be utilized mainly within the next year. |
Post-employment benefits
Post-employment benefits | 12 Months Ended |
Dec. 31, 2019 | |
Post-employment benefits [Abstract] | |
Disclosure of post-employment benefits [Text block] | 20 Employee post-employment benefit plans have been established in many countries in accordance with the legal requirements, customs and the local practice in the countries involved. The larger part of post-employment benefits are company pension plans, of which some are funded and some are unfunded. All funded post-employment benefit plans are considered to be related parties. Most employees that take part in a company pension plan are covered by defined contribution (DC) pension plans. The main DC plans are in the Netherlands and the United States. The company also sponsors a number of defined benefit (DB) pension plans. The benefits provided by these plans are based on employees’ years of service and compensation levels. The company also sponsors a limited number of DB retiree medical plans. The benefits provided by these plans typically cover a part of the healthcare costs after retirement. None of these plans are individually significant to the company and are therefore not further separately disclosed. The larger funded DB and DC plans are governed by independent Trustees who have a legal obligation to protect the interests of all plan members and operate under the local regulatory framework. The DB plans in the United States (US) and Germany (DE) make up most of the defined benefit obligation (DBO) and the net balance sheet position. The company also has DB plans in the rest of the world (Other); however these are individually not significant to the company and do not have a significantly different risk profile that would warrant separate disclosure. The adjacent table provides a break-down of the present value of the funded and unfunded DBO, the fair value of plan assets and the net balance sheet position in the US, DE and Other. Philips Group Post-employment benefits 2018-2019 United States Germany Other Countries Total 2018 2019 2018 2019 2018 2019 2018 2019 Present value of funded DBO (1,616) (1,738) (564) (630) (208) (317) (2,388) (2,684) Present value of unfunded DBO (132) (148) (330) (351) (149) (166) (610) (666) Total present value of DBO (1,747) (1,886) (894) (981) (357) (484) (2,998) (3,350) Fair value of plan assets 1,497 1,743 493 524 175 259 2,164 2,526 Net balance sheet position (251) (143) (401) (457) (182) (224) (834) (824) The United States The US DB pension plans are closed plans without future pension accrual. For the funding of any deficit in the US plan the Group adheres to the minimum funding requirements of the US Pension Protection Act. The assets of the US funded pension plans are in Trusts governed by fiduciaries. The non-qualified pension plans that cover accrual above the maximum salary of the funded qualified plan are unfunded. The company’s qualified pension commitments in the United States are covered via the Pension Benefit Guaranty Corporation (PBGC) which charges a fee to US companies providing DB pension plans. The fee is also dependent on the amount of unfunded vested liabilities. In 2018, the company paid an additional de-risking contribution into the US plan of EUR 130 million (USD 150 million). The company did not pay any additional de-risking contributions into the US plan in 2019. Germany The company has several DB plans in Germany which for the largest part are unfunded, meaning that after retirement the company is responsible for the benefit payments to retirees. Due to the relatively high level of social security in Germany, the company’s pension plans mainly provide benefits for the higher earners. The plans are open for future pension accrual. Indexation is mandatory due to legal requirements. Some of the German plans have a DC design, but are accounted for as DB plans due to a legal minimum return requirement. Company pension commitments in Germany are partly protected against employer bankruptcy via the “Pensions Sicherungs Verein” which charges a fee to all German companies providing pension promises. Philips is one of the sponsors of Philips Pensionskasse VVaG in Germany, which is a multi-employer plan. The plan is classified and accounted for as a DC plan. Risks related to DB plans DB plans expose the company to various demographic and economic risks such as longevity risk, investment risks, currency and interest rate risk and in some cases inflation risk. The latter plays a role in the assumed wage increase but more importantly in some countries where indexation of pensions is mandatory. The company has an active de-risking strategy in which it constantly looks for opportunities to reduce the risks associated with its DB plans. Liability-driven investment strategies, lump sum cash-out options, buy-ins, buy-outs and a change to DC are examples of the strategy. During 2019, no material de-risking activities have taken place. Investment policy in our largest pension plans Pension fund trustees are responsible for and have full discretion over the investment strategy of the plan assets. The plan assets of the Philips pension plans are invested in well diversified portfolios. The interest rate sensitivity of the fixed income portfolio is closely aligned to that of the plan’s pension liabilities for most of the plans. Any contributions from the sponsoring company are used to further increase the fixed income part of the assets. As part of the investment strategy, any improvement in the funded ratio over time is used to further decrease the interest rate mismatch between the plan assets and the pension liabilities. Summary of pre-tax costs for post-employment benefits and reconciliations The adjacent table contains the total of current and past service costs, administration costs and settlement results as included in Income from operations and the interest cost as included in Financial expenses. Philips Group Pre-tax costs for post-employment benefits in millions of EUR 2017 - 2019 2017 2018 2019 Defined-benefit plans 95 46 56 - included in income from operations 32 23 34 - included in financial expense 37 23 22 - included in Discontinued operations 26 Defined-contribution plans 397 327 346 - included in income from operations 315 327 346 - included in Discontinued operations 82 Post-employment benefits costs 492 374 401 Summary of the reconciliations for the DBO and plan assets The adjacent tables contain the reconciliations for the DBO and plan assets. Philips Group Defined-benefit obligations in millions of EUR 2018 - 2019 2018 2019 Balance as of January 1 3,109 2,998 Service cost 27 36 Interest cost 85 99 Employee contributions 4 12 Actuarial (gains) / losses – demographic assumptions 4 (52) – financial assumptions (131) 304 – experience adjustment 5 29 (Negative) past service cost (6) - Settlements - (5) Benefits paid from plan (152) (159) Benefits paid directly by employer (42) (41) Translation differences and other 94 130 Balance as of December 31 2,998 3,350 Philips Group Plan assets in millions of EUR 2018 - 2019 2018 2019 Balance as of January 1 2,137 2,164 Interest income on plan assets 62 77 Admin expenses paid (1) (1) Return on plan assets excluding interest income (129) 305 Employee contributions 4 12 Employer contributions 159 28 Settlements (0) (1) Benefits paid from plan (152) (159) Translation differences and other 83 103 Balance as of December 31 2,164 2,526 Plan assets allocation The asset allocation in the company’s DB plans at December 31 was as follows: Philips Group Plan assets allocation in millions of EUR 2018 - 2019 2018 2019 Assets quoted in active markets - Debt securities 1,294 1,476 - Equity securities - Other 161 209 Assets not quoted in active markets - Debt securities 12 9 - Equity securities 368 473 - Other 329 359 Total assets 2,164 2,526 The plan assets in 2019 contain 33% (2018: 33%) unquoted plan assets. Plan assets in 2019 do not include property occupied by or financial instruments issued by the company. Assumptions The mortality tables used for the company’s largest DB plans are: US: PRI-2012 with MP2019 improvement scale for qualified and retiree medical plan; PRI-2012 with MP2019 improvement scale + white collar adjustment for the unfunded non-qualified pension plan Germany: Heubeck-Richttafeln 2018 Generational The weighted averages of the assumptions used to calculate the DBO as of December 31 were as follows: Philips Group Assumptions used for defined-benefit obligations in the United States, Germany and the rest of the world 2018-2019 US Germany Other Total 2018 2019 2018 2019 2018 2019 2018 2019 Discount rate 4.2% 3.1% 1.5% 0.8% 2.7% 2.6% 3.2% 2.4% Inflation rate 2.3% 2.0% 1.8% 1.8% 1.6% 1.9% 2.1% 1.9% Salary increase 0.0% 0.0% 2.5% 2.5% 2.6% 2.8% 2.4% 2.6% Sensitivity analysis The table below illustrates the approximate impact on the DBO from movements in key assumptions. The DBO was recalculated using a change in the assumptions of 1% which overall is considered a reasonably possible change. The impact on the DBO because of changes in discount rate is normally accompanied by offsetting movements in plan assets, especially when using matching strategies. The average duration of the DBO of the DB plans is 11 years (US: 11, DE: 13 and Other: 11) as per 31 December 2019 (2018: 11 years). Philips Group Sensitivity of key assumptions in millions of EUR 2018-2019 2018 2019 Increase Discount rate (1% movement) (298) (340) Inflation rate (1% movement) 97 113 Salary increase (1% movement) 21 23 Longevity 1 65 90 Decrease Discount rate (1% movement) 367 401 Inflation rate (1% movement) (89) (107) Salary increase (1% movement) (20) (22) 1) The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on the DBO of a further 10% 10% 0.5 1 Cash flows and costs in 2020 The company expects considerable cash outflows in relation to post-employment benefits which are estimated to amount to EUR 424 million in 2020, consisting of: EUR 30 million employer contributions to funded DB plans (US: EUR 0 million, DE: EUR 15 million, Other: EUR 15 million); EUR 40 million cash outflows in relation to unfunded DB plans (US: EUR 10 million, DE: EUR 19 million, Other: EUR 11 million); and EUR 354 million employer contributions to DC plans (NL: EUR 173 million, US: EUR 127 million, Other: EUR 54 million). The service and administration cost for 2020 is expected to amount to EUR 41 million for DB plans. The net interest cost for 2020 for the DB plans is expected to amount to EUR 13 million. The cost for DC pension plans in 2020 is equal to the expected DC cash flow. |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued liabilities [Abstract] | |
Disclosure of accrued expenses and other liabilities [text block] | 21 Accrued liabilities are summarized as follows: Philips Group Accrued liabilities in millions of EUR 2018 - 2019 2018 2019 Personnel-related costs: - Salaries and wages 530 554 - Accrued holiday entitlements 111 118 - Other personnel-related costs 73 66 Fixed-asset-related costs: - Gas, water, electricity, rent and other 36 24 Communication and IT costs 55 48 Distribution costs 78 115 Sales-related costs: - Commission payable 6 8 - Advertising and marketing-related costs 179 186 - Other sales-related costs 28 25 Material-related costs 112 106 Interest-related accruals 36 38 Other accrued liabilities 293 343 Accrued liabilities 1,537 1,632 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other liabilities [Abstract] | |
Disclosure of other liabilities [text block] | 22 Other non-current liabilities Non-current liabilities were EUR 71 million at December 31, 2019 (December 31, 2018: EUR 72 million). Due to the implementation of IFRIC 23, as explained in the Significant accounting policies Consolidated balance sheets Non-current liabilities are associated mainly with indemnification and non-current accruals. Other current liabilities Other current liabilities are summarized as follows: Philips Group Other current liabilities in millions of EUR 2018 - 2019 2018 2019 Accrued customer rebates that cannot be offset with accounts receivables for those customers 422 427 Other taxes including social security premiums 178 241 Other liabilities 137 188 Other current liabilities 737 856 The other liabilities per December 31, 2018 and 2019 include reclassifications from litigation provisions to liabilities due to settlements reached. For more details reference is made to Litigation provisions in Provisions Contingent assets and liabilities Contract liabilities Non-current contract liabilities were EUR 348 million at December 31, 2019 (December 31, 2018: EUR 226 million) and current contract liabilities were EUR 1,170 million at December 31, 2019 (December 31, 2018: EUR 1,303 million). The current contract liabilities decreased with EUR 133 million. The year-on-year change is mainly driven by decrease in deferred balance for customer service contracts. The current contract liabilities as per December 31, 2018 resulted in revenue recognized of EUR 1,303 million in 2019. |
Cash flow statement supplementa
Cash flow statement supplementary information | 12 Months Ended |
Dec. 31, 2019 | |
Cash flow statement supplementary information [Abstract] | |
Disclosure of cash flow statement supplementary information [Text block] | 23 Cash paid for leases In 2019, gross lease payments of EUR 281 million included interest of EUR 26 million. Net cash used for derivatives and current financial assets In 2019, a total of EUR 166 million cash was paid with respect to foreign exchange derivative contracts related to activities for liquidity management and funding (2018: EUR 177 million outflow; 2017: EUR 295 million outflow). Purchase and proceeds from non-current financial assets In 2019, the net cash inflow of EUR 99 million was mainly due to the sale of the company’s investment in Corindus Vascular Robotics and other stakes, partly offset by an outflow due to capital contributions into investment funds. In 2018, the net cash inflow of EUR 43 million was mainly due to inflows from the repayment of loans receivable, the sale of stakes and capital distributions from investment funds, partly offset by an outflow due to capital contributions into investment funds. In 2017, the net cash outflow of EUR 36 million was mainly due to capital contributions in Gilde and Abraaj Growth Markets Fund and the acquisition of other stakes. Reconciliation of liabilities arising from financing activities In the 2019 opening balance sheet, EUR 803 million of lease liabilities were recognized due to the implementation of IFRS 16. For further details, please refer to Significant accounting policies Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2018 - 2019 Balance as of Dec. 31, 2018 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2019 Long term debt 2 4,657 86 37 575 5,355 USD bonds 1,303 25 1,328 EUR bonds 1,988 244 2 2,234 Bank borrowings 211 (5) 206 Other long-term debt 18 (1) 17 Leases 330 (152) 12 132 322 IFRS 16 new lease recognition 1,059 1,059 Forward contracts 3 807 (618) 188 Short term debt 2 164 23 (7) (88) 92 Short-term bank borrowings 76 23 (7) 92 Other short-term loans Forward contracts 3 88 (88) Equity (1,293) (1,774) 2,677 (390) Dividend payable (456) 456 Forward contracts 3 (894) 706 (188) Treasury shares (399) (1,318) 1,516 (201) Total (1,665) 1) Besides non-cash, other includes interest paid on leases, which is part of cash flows from operating activities 2) Long-term debt includes the current portion of long-term debt, and short-term debt excludes the current portion of long-term debt. 3) The forward contracts are related to the share buyback program and LTI plans Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2017 - 2018 Balance as of Dec. 31, 2017 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2018 Long term debt 2 4,595 126 45 (109) 4,657 USD bonds 2,137 (866) 31 - 1,303 EUR bonds 997 990 1 1,988 Bank borrowings 190 21 - - 211 Other long-term debt 20 (1) - - 18 Finance leases 281 (18) 13 53 330 Forward contracts 3 970 (163) 807 Short term debt 2 120 34 (29) 39 164 Short-term bank borrowings 71 34 (29) 76 Other short-term loans Forward contracts 3 49 39 88 Equity (1,500) (1,351) 1,558 (1,293) Dividend payable (404) 404 Forward contracts 3 (1,018) 124 (894) Treasury shares (481) (948) 1,030 (399) Total (1,192) 1) Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 2) Long-term debt includes the current portion of long-term debt, and short-term debt excludes the current portion of long-term debt. 3) The forward contracts are related to the share buyback program and LTI plans |
Contingent assets and liabiliti
Contingent assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Contingent assets and liabilities [Abstract] | |
Disclosure of contingent liabilities [text block] | 24 Contingent assets As per December 31, 2019, the company had no material contingent assets. Contingent liabilities Guarantees Philips’ policy is to provide guarantees and other letters of support only in writing. Philips does not stand by other forms of support. The total fair value of guarantees recognized on the balance sheet amounts to EUR nil Environmental remediation The company and its subsidiaries are subject to environmental laws and regulations. Under these laws, the company and/or its subsidiaries may be required to remediate the effects of certain manufacturing activities on the environment. Legal proceedings The company and certain of its group companies and former group companies are involved as a party in legal proceedings, regulatory and other governmental proceedings, including discussions on potential remedial actions, relating to such matters as competition issues, commercial transactions, product liability, participations and environmental pollution. While it is not feasible to predict or determine the outcome of all pending or threatened legal proceedings, regulatory and governmental proceedings, the company is of the opinion that the cases described below may have, or have had in the recent past, a significant impact on the company’s consolidated financial position, results of operations and cash flows. Civil Litigation Following the public investigations into alleged anticompetitive activities in the Cathode Ray Tubes industry that began in 2007 which resulted in a EUR 509 million fine against the company from the European Commission in December 2012, certain Philips Group companies were named as defendants in class action antitrust complaints by direct and indirect purchasers of CRTs filed in various federal district courts in the United States. These actions alleged anticompetitive conduct by manufacturers of CRTs and sought treble damages on a joint and several liability basis. In addition, sixteen individual plaintiffs, principally large retailers of CRT products who opted out of the direct purchaser class, filed separate complaints against the company and other defendants based on the same substantive allegations. All these actions were consolidated for pre-trial proceedings in the United States District Court for the Northern District of California. In addition, the state attorneys general of California, Florida, Illinois, Oregon, Washington and Puerto Rico filed actions against the company and other defendants seeking to recover damages on behalf of the states and their consumers. In succeeding years, all these actions, except for the case brought by Puerto Rico, have been settled or otherwise resolved, with the approval of one matter outstanding as described below. In 2016, the United States District Court for the Northern District of California initially approved the indirect purchaser settlement. However, following objections raised by representatives of certain states for which the original settlement did not allocate any funds, the United States Court of Appeals for the Ninth Circuit did not affirm approval of the settlement and remanded the settlement approval to the District Court in February 2019 for further consideration. A revised settlement with the indirect purchaser class is now pending before the District Court that excludes the objecting states and provides for a partial refund to defendants. The cases brought by these excluded states are expected to be resubmitted to the court. In 2007, certain Philips Group companies became defendants in proposed class proceedings in Ontario, Quebec and British Columbia, Canada, along with numerous other participants in the industry. In 2017, a settlement was reached for all three proposed class actions, which was approved by the courts in 2018. Starting in 2014, certain Philips Group companies became defendants in various cases brought by plaintiffs outside North America. These cases include consumer actions in Israel and the Netherlands, five cases in Germany involving German retailers and manufacturers, a case brought in the Netherlands by three Brazilian manufacturers and a case brought in the Netherlands, with parallel proceedings in Turkey, by a Turkish manufacturer, a case in Denmark involving a Danish manufacturer and three cases filed in the United Kingdom by a Turkish manufacturer, an Asian and UK reseller that purchased OEM monitors that included CRT’s. In 2018, the company settled the case in Denmark and three cases in Germany. In 2019, the company settled the case brought by the Turkish manufacturer in the Netherlands (with parallel proceedings in Turkey) as well as the case brought by the Asian company in the United Kingdom. These settlements had no material impact on the company’s results in 2018 and 2019. The remaining cases are still pending. In all cases, the same substantive allegations about anticompetitive activities in the CRT industry are made and damages are sought. Despite prior settlements, the company has concluded that due to the specific circumstances in the cases that settled and the particularities and considerable uncertainty associated with the remaining matters, based on current knowledge, potential losses cannot be reliably estimated with respect to some of the matters that are still pending. In 2019, the company was served with a claim filed by LG Electronics (LGE) in the Seoul Central District Court. LGE claims restitution of EUR 64.6 million, representing a portion of the fine that LGE paid to the European Commission relating to the joint venture LG.Philips Displays for which LGE and the company were jointly and severally liable. LGE alleges that based on the manner in which the fine was calculated, the company should have paid proportionally more than it currently has. Public Investigations In April 2017, the company received a Civil Investigative Demand (CID) out of the US Attorney’s Office in Northern District of Iowa. The CID relates to an evaluation of the appropriateness of certain equipment financing programs available for the company’s sleep and respiratory care products. In addition, in late 2017, the company received an information request from the Department of Justice regarding the relationship between Philips Sleep & Respiratory Care business and sleep centers that use Philips products. The company has not been advised that the US government will assert any claim in connection with these matters and it continues to cooperate fully in both inquiries. In February 2018, the Italian Competition Authority (ICA) started an antitrust investigation to verify whether the company and certain other healthcare companies violated antitrust laws in the maintenance services aftermarket for medical diagnostic imaging devices. Following various interactions with the ICA during 2018 and 2019, the company concluded that it will be unable to resolve its differences with the ICA and therefore expects the ICA to take enforcement actions. The public prosecution service in Rio de Janeiro and representatives from the Brazilian antitrust authority CADE are conducting an investigation into tender irregularities in the medical device industry in Brazil. Philips is one of a number of companies involved in the investigation, and in July 2018 the Brazilian authorities visited the Philips site in Sao Paulo to obtain documentation in connection with the investigation. The company has been conducting an internal investigation into the matter and is discussing the results with the public prosecution service with a view to come to a resolution. In connection with this matter, the company also received inquiries from the US Securities and Exchange Commission (SEC) and US Department of Justice (DoJ). In responding to these inquiries regarding the investigation in Brazil, the company also provided the SEC and DoJ with information about similar compliance efforts in relation to tenders in the medical device industry in other jurisdictions including in China. Discussions with the SEC and DoJ focusing on Brazil and China are ongoing. Given the uncertain nature of the relevant events and liabilities, it is not practicable to provide information on the estimate of the financial effect, if any, or timing. The outcome of the uncertain events could have a material impact on the company’s consolidated financial position, results of operations and cash flows. Miscellaneous For details on other contractual obligations, please refer to liquidity risk in Details of treasury / other financial risks |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Disclosure of related party [text block] | 25 In the normal course of business, Philips purchases and sells goods and services from/to various related parties in which Philips typically holds between 20% and 50% equity interest and has significant influence. These transactions are generally conducted with terms comparable to transactions with third parties. For details of these parties in which Philips typically holds between 20% and 50% equity interest, refer to the Investments in associates section of Interests in entities Philips Group Related-party transactions in millions of EUR 2017 - 2019 2017 2018 2019 Sales of goods and services 196 232 158 Purchases of goods and services 62 67 53 Receivables from related parties 127 28 32 Payables to related parties 36 1 2 In addition to the table above, as part of its operations in the US, Philips sold non-recourse third-party receivables to PMC US amounting to EUR 288 million in 2019 (2018: EUR 244 million; 2017: EUR 151 million). As from December 31, 2018 Philips no longer has significant influence over Signify and therefore Signify ceased to be a related party as of that date. As a result, the table above does not include related-party transactions in relation to Signify for 2019 and receivables from and payables to Signify for 2018 or 2019. In light of the composition of the Executive Committee, the company considers the members of the Executive Committee and the Supervisory Board to be the key management personnel as defined in IAS 24 Related Party Disclosures. For remuneration details of the Executive Committee, the Board of Management and the Supervisory Board see Information on remuneration For Post-employment benefit plans see Post-employment benefits |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based compensation [Abstract] | |
Disclosure of share-based payment arrangements [text block] | 26 The purpose of the share-based compensation plans is to align the interests of management with those of shareholders by providing incentives to improve the company’s performance on a long-term basis, thereby increasing shareholder value. The company has the following plans: performance shares: rights to receive common shares in the future based on performance and service conditions; restricted shares: rights to receive common shares in the future based on a service condition; and options on its common shares, including the 2012 and 2013 Accelerate! grant. Since 2013 the Board of Management and other members of the Executive Committee are only granted performance shares. Performance shares as well as restricted shares can be granted to executives, certain selected employees and new employees. Prior to 2013 options were also granted. Under the terms of employee stock purchase plans established by the company in various countries, employees are eligible to purchase a limited number of Philips shares at discounted prices through payroll withholdings. Share-based compensation costs were EUR 105 million (2018: EUR 102 million; 2017: EUR 122 million). This includes the employee stock purchase plan of EUR 7 million, which is not a share-based compensation that affects equity. In the Consolidated statements of changes in equity EUR 101 million is recognized in 2019 and represent the costs of the share-based compensation plans, including EUR 3 million of costs of former Philips employees which are now employed with Signify. The amount recognized as an expense is adjusted for forfeiture. USD-denominated performance shares, restricted shares and options are granted to employees in the United States only. Performance shares The performance is measured over a three-year performance period. The performance shares have two performance conditions, relative Total Shareholders’ Return compared to a peer group of 20 companies including Philips (2018: 20 companies, 2017; 20 companies) and adjusted Earnings Per Share growth. The performance shares vest three years after the grant date. The number of performance shares that will vest is dependent on achieving the two performance conditions, which are equally weighted, and provided that the grantee is still employed with the company. The amount recognized as an expense is adjusted for actual performance of adjusted Earnings Per Share growth since this is a non-market performance condition. It is not adjusted for non-vesting or extra vesting of performance shares due to a relative Total Shareholders’ Return performance that differs from the performance anticipated at the grant date, since this is a market-based performance condition. The fair value of the performance shares is measured based on Monte-Carlo simulation, which takes into account dividend payments between the grant date and the vesting date by including reinvested dividends, the market conditions expected to impact relative Total Shareholders’ Return performance in relation to selected peers. The following weighted-average assumptions were used for the 2019 grants: Risk-free rate: (0.58)% Expected share price volatility: 20% The assumptions were used for these calculations only and do not necessarily represent an indication of Management’s expectation of future developments for other purposes. The company has based its volatility assumptions on historical experience measured over a ten-year period. A summary of the status of the company’s performance share plans as of December 31, 2019 and changes during the year are presented below: Philips Group Performance shares 2019 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2019 4,738,099 32.54 Granted 1,183,900 40.38 Notional dividends 1 90,183 39.15 Vested/Issued 3,187,475 24.81 Forfeited 246,510 37.24 Adjusted quantity 2 882,604 21.34 Outstanding at December 31, 2019 3,460,802 39.32 USD-denominated Outstanding at January 1, 2019 2,878,048 37.74 Granted 808,652 45.28 Notional dividends 1 57,569 44.82 Vested/Issued 1,865,456 28.36 Forfeited 174,758 44.36 Adjusted quantity 2 509,908 24.71 Outstanding at December 31, 2019 2,213,962 45.06 1) Dividend declared in 2019 on outstanding shares. 2) Adjusted quantity includes the adjustments made to performance shares outstanding due to updates on the actual and expected EPS. At December 31, 2019, a total of EUR 106 million of unrecognized compensation costs relate to non-vested performance shares (at December 31, 2018 EUR 111 million; at December 31, 2017 EUR 103 million). These costs are expected to be recognized over a weighted-average period of 1.87 years. Restricted shares The fair value of restricted shares is equal to the share price at grant date. The Company issues restricted shares that, in general, have a 3 year cliff-vesting period. A summary of the status of the Company’s restricted shares as of December 31, 2019 and changes during the year are presented below: Philips Group Restricted shares 2019 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2019 1 2,220,891 29.69 Granted 641,485 37.22 Notional dividends 2 45,433 34.44 Vested/Issued 920,463 24.65 Forfeited 120,481 33.50 Outstanding at December 31, 2019 1,866,864 34.63 USD-denominated Outstanding at January 1, 2019 1 1,905,867 33.58 Granted 614,062 41.83 Notional dividends 2 42,465 38.07 Vested/Issued 688,010 28.67 Forfeited 142,407 37.71 Outstanding at December 31, 2019 1,731,978 38.22 1) Excludes premium shares on Restricted shares granted before 2013. (20% additional (premium) shares that may be received if shares delivered under the plan are not sold for three-year period). 2) Dividend declared in 2019 on outstanding shares. At December 31, 2019, a total of EUR 59 million of unrecognized compensation costs relate to non-vested restricted shares (at December 31, 2018 EUR 59 million; at December 31, 2017 EUR 40 million). These costs are expected to be recognized over a weighted-average period of 1.82 years. Option plans The Company granted options that expire after ten years. These options vest after three years, provided that the grantee is still employed with the company. All outstanding options have vested as of December 31, 2019. The following tables summarize information about the Company’s options as of December 31, 2019 and changes during the year: Philips Group Options on EUR-denominated listed share 2019 options weighted average exercise price Outstanding at January 1, 2019 1,648,720 18.90 Exercised 659,128 18.86 Expired 54,885 15.42 Outstanding at December 31, 2019 934,707 19.14 Exercisable at December 31, 2019 934,707 19.14 The exercise prices range from EUR 12.63 to EUR 24.90. The weighted average remaining contractual term for options outstanding and options exercisable at December 31, 2019, was 1.5 years. The aggregate intrinsic value of the options outstanding and options exercisable at December 31, 2019, was EUR 23 million. The total intrinsic value of options exercised during 2019 was EUR 13 million (2018: EUR 15 million, 2017: EUR 29 million), Philips Group Options on USD-denominated listed share 2019 options weighted average exercise price Outstanding at January 1, 2019 1,633,868 26.13 Exercised 663,191 26.20 Expired 41,702 22.13 Outstanding at December 31, 2019 928,975 26.26 Exercisable at December 31, 2019 928,975 26.26 The exercise prices range from USD 16.76 to USD 33.51. The weighted average remaining contractual term for options outstanding and options exercisable at December 31, 2019, was 1.5 years. The aggregate intrinsic value of the options outstanding and options exercisable at December 31, 2019, was USD 21 million. The total intrinsic value of options exercised during 2019 was USD 11 million (2018; USD 16 million, 2017: USD 22 million). At December 31, 2019 there were no unrecognized compensation costs related to outstanding options. Cash received from exercises under the Company’s option plans amounted to EUR 28 million in 2019 (2018: EUR 57 million, 2017: EUR 128 million), The actual tax deductions realized as a result of USD option exercises totaled approximately EUR 2 million in 2019 (2018: EUR 3 million, 2017: EUR 5 million). The outstanding options as of December 31, 2019 are categorized in exercise price ranges as follows: Philips Group Outstanding options in millions of EUR unless otherwise stated 2019 options intrinsic value in millions weighted average remaining contractual term EUR-denominated 10-15 370,115 10.6 2.3 yrs 15-20 16,461 0.4 2.2 yrs 20-25 548,131 11.7 1.0 yrs Outstanding options 934,707 22.8 1.5 yrs USD-denominated 15-20 360,625 10.6 2.3 yrs 20-25 20,550 0.6 2.0 yrs 25-30 354,350 6.8 1.3 yrs 30-35 193,450 3.0 0.4 yrs Outstanding options 928,975 20.9 1.5 yrs The aggregate intrinsic value in the tables and text above represents the total pre-tax intrinsic value (the difference between the Company’s closing share price on the last trading day of 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders if the options had been exercised on December 31, 2019. The following table summarizes information about the Company’s Accelerate! options as of December 31, 2019 and changes during the year: Philips Group Accelerate! options 2019 options weighted average exercise price EUR-denominated Outstanding at January 1, 2019 296,750 16.57 Exercised 76,550 15.24 Outstanding at December 31, 2019 220,200 17.04 Exercisable at December 31, 2019 220,200 17.04 USD-denominated Outstanding at January 1, 2019 123,300 20.02 Exercised 40,800 20.02 Expired 7,500 20.02 Outstanding at December 31, 2019 75,000 20.02 Exercisable at December 31, 2019 75,000 20.02 The exercise prices of the Accelerate! options are EUR 15.24 and EUR 22.43 for EUR-denominated options and is USD 20.02 for USD-denominated options. The weighted average remaining contractual term for EUR-denominated Accelerate! options outstanding and exercisable at December 31, 2019 was 2.3 years. The weighted average remaining contractual term for USD-Accelerate! options outstanding and exercisable at December 31, 2019 was 2.1 years. The aggregate intrinsic value of the EUR-denominated Accelerate! options outstanding and exercisable at December 31, 2019, was EUR 5.8 million. The aggregate intrinsic value of the USD-denominated Accelerate! options outstanding and exercisable at December 31, 2019 was USD 2.2 million. The total intrinsic value of Accelerate! options exercised during 2019 was EUR 2 million for EUR-denominated options (2018: EUR 4 million) and USD 1 million for USD-denominated options (2018: USD 1 million). Cash received from exercises for EUR-denominated and USD-denominated Accelerate! options amounted to EUR 2 million in 2019 (2018: EUR 4 million). The actual tax deductions realized as a result of Accelerate! USD options exercises totaled approximately EUR 0.2 million in 2019 (2018: EUR 0.2 million). |
Information on remuneration
Information on remuneration | 12 Months Ended |
Dec. 31, 2019 | |
Information on remuneration [Abstract] | |
Disclosure of information on remuneration [Text block] | 27 Remuneration of the Executive Committee In 2019, the total remuneration costs relating to the members of the Executive Committee (consisting of 14 members, including the members of the Board of Management) amounted to EUR 30.0 million (2018: EUR 26.8 million; 2017: EUR 25.8 million) consisting of the elements in the following table. Philips Group Remuneration costs of the Executive Committee 1 in EUR 2017 - 2019 2017 2018 2019 Base salary/Base compensation 8,089,063 8,370,406 9,241,364 Annual incentive 2 6,345,576 5,651,996 5,566,763 Performance shares 3 4 6,371,297 8,896,369 11,143,320 Restricted share rights 3 885,343 492,237 168,404 Pension allowances 5 1,886,963 1,919,839 2,076,834 Pension scheme costs 408,695 411,028 440,003 Other compensation 6 1,861,803 1,013,128 1,331,990 Total 25,848,740 26,755,003 29,968,678 1) The Executive Committee consisted of 14 13 12 2) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. 3) Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares and restricted share rights at the vesting/release date 4) For 2019, a release of EUR 0 (2018: EUR 1,740,520; 2017: EUR 2,469,670) is included due to non-vesting of performance shares 5) Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 6) The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated At December 31, 2019, the members of the Executive Committee (including the members of the Board of Management) held 291,520 Remuneration of the Board of Management In 2019, the total remuneration costs relating to the members of the Board of Management amounted to EUR 9.7 million (2018: EUR 9.8 million; 2017: EUR 7.8 million), see table below. Philips Group Remuneration costs of individual members of the Board of Management 2017 - 2019 base compensation/salary annual incentive 1 performance shares 2 restricted share rights 2 pension allowances 3 pension schemecosts other compensation total costs 2019 F.A. van Houten 1,295,000 1,091,800 2,235,166 - 559,052 26,380 52,713 5,260,111 A. Bhattacharya 770,000 517,472 995,483 - 230,006 26,380 63,265 2,602,606 M.J. van Ginneken 571,250 335,685 713,815 - 171,018 26,380 38,278 1,856,426 2,636,250 1,944,957 3,944,464 - 960,076 79,140 154,256 9,719,143 2018 F.A. van Houten 1,205,000 1,264,286 2,319,460 588 537,181 25,708 39,042 5,391,265 A. Bhattacharya 718,750 637,536 942,220 129 217,823 25,708 53,522 2,595,688 M.J. van Ginneken 557,500 362,611 711,806 66 168,210 25,708 35,299 1,861,200 2,481,250 2,264,433 3,973,486 783 923,214 77,124 127,863 9,848,153 2017 F.A. van Houten 1,205,000 1,270,166 1,975,277 4,034 537,621 25,278 84,053 5,101,429 A. Bhattacharya 687,500 553,392 669,396 888 210,450 25,278 100,918 2,247,822 M.J. van Ginneken 91,667 69,168 100,022 75 27,796 4,213 13,120 306,061 P.A.J. Nota 606,250 429,886 (1,203,992) (188) 236,208 21,065 63,576 152,805 2,590,417 2,322,612 1,540,703 4,809 1,012,075 75,834 261,667 7,808,117 1) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. For more details on the annual incentives refer to 2019 Annual Incentive 2) Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares and restricted share rights at the vesting/release date 3) The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated. For further information on remuneration costs, see Total remuneration costs in 2019 The accumulated annual pension entitlements and the pension costs of individual members of the Board of Management are as follows: Philips Group Accumulated annual pension entitlements and pension-related costs in EUR unless otherwise stated 2019 age at December 31, 2019 accumulated annual pension as of December 31, 2019 total pension related costs F.A. van Houten 59 325,561 585,432 A. Bhattacharya 58 31,338 256,386 M.J. van Ginneken 46 44,169 197,398 Pension costs 1,039,216 When pension rights are granted to members of the Board of Management, necessary payments (if insured) and all necessary provisions are made in accordance with the applicable accounting principles. In 2019, no (additional) pension benefits were granted to former members of the Board of Management. Remuneration of the Supervisory Board The remuneration of the members of the Supervisory Board amounted to EUR 1.2 million (2018: EUR 1.1 million; 2017: EUR 951 thousand. Former members received no remuneration. The members of the Supervisory Board do not receive any share-based remuneration. Therefore, at December 31, 2019 the members of the Supervisory Board held no stock options, performance shares or restricted shares. The individual members of the Supervisory Board received, by virtue of the positions they held, the following remuneration: Philips Group Remuneration of the Supervisory Board in EUR 2017 - 2019 membership committees other compensation 1 total 2019 2 J. van der Veer 155,000 35,000 7,000 197,000 C.A. Poon 115,000 50,167 22,000 187,167 H.N.F.M. von Prondzynski 33,333 16,333 5,667 55,333 J.P. Tai 25,000 10,250 5,500 40,750 N. Dhawan 100,000 18,000 27,000 145,000 O. Gadiesh 100,000 19,833 12,000 131,833 D.E.I. Pyott 100,000 41,500 17,000 158,500 P.A.M. Stoffels 100,000 - 14,500 114,500 A.M. Harrison 100,000 9,333 12,000 121,333 M.E. Doherty 41,667 1,500 8,333 51,500 870,000 201,917 131,000 1,202,917 2018 2 J. van der Veer 140,000 27,500 12,000 179,500 C.A. Poon 96,250 36,625 22,000 154,875 H.N.F.M. von Prondzynski 85,000 36,625 14,500 136,125 J.P. Tai 85,000 34,625 22,000 141,625 N. Dhawan 85,000 14,250 24,500 123,750 O. Gadiesh 85,000 14,250 22,000 121,250 D.E.I. Pyott 85,000 25,250 32,000 142,250 P.A.M. Stoffels 38,333 - 8,333 46,667 A.M. Harrison 31,667 - 10,667 42,333 731,250 189,125 168,000 1,088,375 2017 2 J. van der Veer 135,000 25,000 7,000 167,000 C.A. Poon 90,000 32,500 17,000 139,500 H.N.F.M. von Prondzynski 80,000 32,500 19,500 132,000 J.P. Tai 80,000 32,500 32,000 144,500 N. Dhawan 80,000 13,000 27,000 120,000 O. Gadiesh 80,000 13,000 19,500 112,500 D.E.I. Pyott 80,000 23,000 32,000 135,000 625,000 171,500 154,000 950,500 1) The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel (effective 2015) and the entitlement of EUR 2,000 2) As of 2013, part of the remuneration of members of the Supervisory Board living in the Netherlands is subject to VAT. The amounts mentioned in this table are excluding VAT Supervisory Board members’ and Board of Management members’ interests in Philips shares Members of the Supervisory Board and of the Executive Committee are prohibited from writing call and put options or similar derivatives of Philips securities. Philips Group Shares held by Board members 1 in number of shares 2019 December 31, 2018 December 31, 2019 J. van der Veer 18,366 18,366 F.A. van Houten 292,302 347,565 A. Bhattacharya 66,794 90,083 M.J. van Ginneken 47,856 67,600 1) Reference date for board membership is December 31, 2019. |
Fair value of financial assets
Fair value of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair value of financial assets and liabilities [Abstract] | |
Disclosure of information about possible differences between carrying amount and fair value of contracts described in IFRS 7.29 b and IFRS 7.29 c [text block] | 28 The estimated fair value of financial instruments has been determined by the company using available market information and appropriate valuation methods. The estimates presented are not necessarily indicative of the amounts that will ultimately be realized by the company upon maturity or disposal. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts. The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not carried at fair value is not included if the carrying amount is a reasonable approximation of fair value. As reflected in the table below, equity instruments carried at FVTOCI were designated as such upon the adoption of IFRS 9 and upon initial measurement of new equity instruments. Remaining financial assets are mandatorily classified as FVTPL or FVTOCI. Philips Group Fair value of financial assets and liabilities in millions of EUR 2019 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 92 92 92 Equity instruments 7 7 7 Other financial assets 37 37 31 6 Financial assets carried at FVTPL 136 136 7 31 98 Debt instruments 28 28 27 - Equity instruments 45 45 8 37 Current financial assets - - Receivables - current 77 77 77 Financial assets carried at FVTOCI 150 150 8 27 114 Derivative financial instruments 39 39 39 Financial assets carried at fair value 324 324 15 97 212 Carried at (amortized) cost: Cash and cash equivalents 1,425 Loans and receivables: Current loans receivables 1 Other non-current loans and receivables 40 Receivables - current 4,476 Receivables - non-current 178 Financial assets carried at (amortized) cost 6,121 Total financial assets 6,445 Financial liabilities Carried at fair value: Contingent consideration (354) (354) (354) Financial liabilities carried at FVTP&L (354) (354) (354) Derivative financial instruments (191) (191) (191) Financial liabilities carried at fair value (544) (544) (191) (354) Carried at (amortized) cost: Accounts payable (2,089) Interest accrual (38) Debt (Corporate bonds and leases) (4,943) (5,500) (4,119) (1,381) Debt (excluding corporate bonds and leases) (504) Financial liabilities carried at (amortized) cost (7,574) Total financial liabilities (8,118) 1) For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments (including maturity and interest conditions) and therefore fair value information is not included in the table above. Philips Group Fair value of financial assets and liabilities in millions of EUR 2018 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 69 69 69 Equity instruments 20 20 20 Other financial assets 27 27 22 5 Financial assets carried at FVTPL 116 116 20 22 74 Debt instruments 26 26 26 - Equity instruments 172 172 22 1 149 Current financial assets 2 435 435 434 - Receivables - current 32 32 32 Financial assets carried at FVTOCI 664 664 457 27 181 Derivative financial instruments 36 36 36 Financial assets carried at fair value 817 817 476 85 255 Carried at (amortized) cost: Cash and cash equivalents 1,688 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 46 Receivables - current 4,004 Receivables - non-current 162 Financial assets carried at (amortized) cost 5,902 Total financial assets 6,718 Financial liabilities Carried at fair value: Contingent consideration (409) (409) (409) Financial liabilities carried at FVTP&L (409) (409) (409) Derivative financial instruments (290) (290) (290) Financial liabilities carried at fair value (699) (699) (290) (409) Carried at (amortized) cost: Accounts payable (2,303) Interest accrual (36) Debt (Corporate bonds and finance leases) (3,621) (3,906) (3,576) (330) Debt (excluding corporate bonds and finance leases) (1,200) Financial liabilities carried at (amortized) cost (7,159) Total financial liabilities (7,858) 1) For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the nature of these instruments (including maturity and interest conditions) and therefore fair value information is not included in the table above. 2) The majority of the balance reflects the remaining stake in Signify (formerly Philips Lighting), which relates to equity instruments. The fair value of Philips’ debt is estimated on the basis of the quoted market prices for certain issuances, or on the basis of discounted cash flow analysis based upon market rates plus Philips’ spread for the particular tenors of the borrowing arrangement. Accrued interest is not included within the carrying amount or estimated fair value of debt. Specific valuation techniques used to value financial instruments include: Level 1 Instruments included in level 1 are comprised primarily of listed equity investments classified as financial assets carried at fair value through profit or loss or carried at fair value through other comprehensive income. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Level 2 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives or convertible bond instruments) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are based on observable market data, the instrument is included in level 2. The fair value of derivatives is calculated as the present value of the estimated future cash flows based on observable interest yield curves, basis spread and foreign exchange rates. The valuation of convertible bond instruments uses observable market quoted data for the options and present value calculations using observable yield curves for the fair value of the bonds. Level 3 If one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, the instrument is included in level 3. Philips recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. The investment in Luminescence is classified as a financial asset recognized at fair value through OCI, based on a valuation model with inputs, including earnings, multiples and discount rates, which are market-corroborated to the extent possible, and hence classified as Level 3 in the fair value hierarchy. At December 31, 2019 the value was EUR 0 million (December 31, 2018: EUR 112 million). The value decrease in 2018 and 2019 was mainly attributable to a lower earnings assumption. As part of the EPD acquisition (refer to Acquisitions and divestments Provisions A sensitivity analysis of the EPD contingent consideration provision at December 31, 2019 shows that if the probabilities of success for every milestone increased by 10 percentage points, with all other variables (including foreign exchange rates) held constant, the fair value of the provision would increase by approximately 3%. Similarly, a decrease in the probabilities of success for every milestone by 10 percentage points would reduce the fair value by approximately 4%. If the discount rates were to increase instantaneously by 100 basis points from the assumption at December 31, 2019, with all other variables (including foreign exchange rates) held constant, the fair value of the provision would decrease by approximately 3%, while a decrease in the discount rates of 100 basis points would increase the fair value by approximately 3%. The table below shows the reconciliation from the beginning balance to the end balance for Level 3 fair value measurements. Philips Group Reconciliation of Level 3 fair value measurements in millions of EUR 2019 Financial assets Financial liabilities Balance at January 1, 2019 255 409 Acquisitions 6 Purchase 54 Sales (24) Utilizations (44) Recognized in profit and loss: - other business income (35) - financial income and expenses 2 14 Recognized in other comprehensive income 1 (120) 4 Receivables held to collect and sell 46 Balance at December 31, 2019 212 354 1) Includes translation differences Philips Group Reconciliation of the fair value hierarchy in millions of EUR 2018 Financial assets Financial liabilities Balance as of December 31, 2017 372 66 IFRS 9 adjustment 1 47 Balance at January 1, 2018 420 66 Assumed in a business combination 370 Purchase 30 Sales (35) Utilizations (48) Recognized in profit and loss: - other business income 5 - financial income and expenses - 12 Recognized in other comprehensive income 2 (145) 5 Receivables held to collect and sell (15) Balance at December 31, 2018 255 409 1) IFRS 9 adjustments relates to Receivables-current carried at FVTOCI. For further information refer to Significant accounting policies note. 2) Includes translation differences The section below elaborates on transactions in derivatives. Transactions in derivatives are subject to master netting and set-off agreements. In the case of certain termination events, under the terms of the master agreement, Philips can terminate the outstanding transactions and aggregate their positive and negative values to arrive at a single net termination sum (or close-out amount). This contractual right is subject to the following: The right may be limited by local law if the counterparty is subject to bankruptcy proceedings; The right applies on a bilateral basis. Philips Group Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2018 - 2019 2018 2019 Derivatives Gross amounts of recognized financial assets 36 39 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 36 39 Related amounts not offset in the balance sheet Financial instruments (25) (33) Cash collateral received Net amount 12 6 Philips Group Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2018 - 2019 2018 2019 Derivatives Gross amounts of recognized financial liabilities (290) (191) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (290) (191) Related amounts not offset in the balance sheet Financial instruments 25 33 Cash collateral received Net amount (265) (158) |
Details of treasury and other f
Details of treasury and other financial risks | 12 Months Ended |
Dec. 31, 2019 | |
Details of treasury and other financial risks [Abstract] | |
Disclosure of details of treasury risks [Text block] | 29 Philips is exposed to several types of financial risks. This note further analyzes financial risks. Philips does not purchase or hold derivative financial instruments for speculative purposes. Information regarding financial instruments is included in Fair value of financial assets and liabilities Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk for the group is monitored through the Treasury liquidity committee, which tracks the development of the actual cash flow position for the group and uses input from a number of sources in order to forecast the overall liquidity position on both a short and longer term basis. Philips invests surplus cash in short-term deposits with appropriate maturities to ensure sufficient liquidity is available to meet liabilities when due and in money market funds. The rating of the company’s debt by major rating agencies may improve or deteriorate. As a result, Philips’ future borrowing capacity may be influenced and its financing costs may fluctuate. Philips has various sources to mitigate the liquidity risk for the group. At December 31, 2019, Philips had EUR 1,425 million in cash and cash equivalents (2018: EUR 1,688 million), within which short-term deposits of EUR 884 million (2018: EUR 1,174 million). Cash and cash equivalents include all cash balances, money market funds and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash. Philips pools cash from subsidiaries to the extent legally and economically feasible; cash not pooled remains available for the company’s operational or investment needs. Philips faces cross-border foreign exchange controls and/or other legal restrictions in a few countries that could limit its ability to make these balances available on short notice for general use by the group. Furthermore, Philips has a USD 2.5 billion Commercial Paper Programme and a EUR 1.0 billion committed revolving credit facility that can be used for general group purposes, such as a backstop for its Commercial Paper Programme. Philips issued and repaid commercial paper in 2019. As of December 31, 2019, Philips did not have any amounts outstanding under any of these facilities. A description of Philips’ credit facilities can be found in Debt In addition to cash and cash equivalents, at December 31, 2019, Philips also held EUR 15 million of listed (level 1) equity investments at fair value (classified as other non-current financial assets). Furthermore, Philips was a shareholder in Signify (EUR 435 million classified as other current financial asset as of December 31, 2018) and sold its entire stake in 2019. The table below presents a summary of the Group’s fixed contractual cash obligations and commitments at December 31, 2019. These amounts are an estimate of future payments which could change as a result of various factors such as a change in interest rates, foreign exchange, contractual provisions, as well as changes in our business strategy and needs. Therefore, the actual payments made in future periods may vary from those presented in the following table: Philips Group Contractual cash obligations 1 2 in millions of EUR 2019 payments due by period total less than 1 year 1-3 years 3-5 years after 5 years Long-term debt 3 5,699 256 293 1,218 3,932 Lease obligations 1,533 292 438 261 543 Short-term debt 92 92 Derivative liabilities 192 68 1 123 Purchase obligations 4 822 370 344 61 48 Trade and other payables 2,089 2,089 Contractual cash obligations 10,427 3,167 1,075 1,662 4,523 1) Amounts in this table are undiscounted 2) This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement 3) Long-term debt includes interest and the current portion of long-term debt and excludes lease obligations. 4) Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not include open purchase orders or other commitments which do not specify all significant terms. Philips has contracts with investment funds where it committed itself to make, under certain conditions, capital contributions to these funds of an aggregated remaining amount of EUR 61 million (2018: EUR 86 million). As at December 31, 2019 capital contributions already made to these investment funds are recorded as non-current financial assets. Certain Philips suppliers factor their trade receivables from Philips with third parties through supplier finance arrangements. At December 31, 2019 approximately EUR 212 million of the Philips accounts payable were transferred under such arrangements whereby Philips confirms invoices. In accordance with the terms and conditions of the arrangements, Philips continues to recognize these liabilities as trade payables and settles the liabilities after a further 30 day period compared to the original invoices Leasing activities The company leases various items of real estate, vehicles and other equipment where it acts as a lessee. The company has multiple extension and termination options in a number of lease contracts. These are used to maximize operational flexibility in terms of managing the assets used in the company's operations. The options considered reasonably certain are part of lease liabilities. However, the options not considered reasonably certain are not part of lease liability, which exposes the company to potential future cash outflows amounting to EUR 50 million. In addition, the company is committed to leases not yet commenced to EUR 99 million. The company's lease contracts do not contain financial covenants. The company enters into sale and lease back transactions primarily for its Sleep & Respiratory Care businesses. These transactions are accounted for at market value. The payments for these leases are considered in determining lease liabilities. Principal repayments are part of cash flows used for financing activities and interest payments are part of cash flows used for operating activities. The cash inflows arising from the sales transactions, are part of cash flows provided by operating activities. Lease payments under sale-and-leaseback arrangements for 2019 were EUR 108 million (2018: EUR 110 million). The remaining minimum payment under sales-and-leaseback arrangements included in lease obligations above are as follows: Philips Group Lease - minimum payments under sale-and-leaseback arrangements in millions of EUR 2019 2020 112 2021 97 2022 73 2023 52 2024 33 Thereafter 125 Philips has leasing activities where it acts as lessor. In such arrangements, Philips provides the customer with a right to use of medical equipment in exchange for a series of payments. Residual values of assets under lease form an insignificant part of the carrying amount of those assets. Residual values are influenced by asset market prices and are therefore subject to management estimation. Residual values are at least reassessed on an annual basis, or more often when necessary. Reassessments are based on a combination of realization of assets sold, expert knowledge and judgment of local markets. For lease receivables, the value of unguaranteed residual values on December 31, 2019 was EUR 0.7 million (2018: EUR 0.7 million). In order to reduce residual value risk exposures there may be residual value guarantees or purchase options embedded in the customer contract. Credit risk for lease receivables is reviewed regularly and mitigated, for example, by retaining a security interest in the leased asset. Currency risk Currency risk is the risk that reported financial performance or the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Philips operates in many countries and currencies and therefore currency fluctuations may impact Philips’ financial results. Philips is exposed to currency risk in the following areas: Transaction exposures, related to anticipated sales and purchases and on-balance-sheet receivables/payables resulting from such transactions Translation exposure of foreign-currency intercompany and external debt and deposits Translation exposure of net income in foreign entities Translation exposure of foreign-currency-denominated equity invested in consolidated companies Translation exposure to equity interests in non-functional-currency investments in associates and other non-current financial assets. It is Philips’ policy to reduce the potential year-on-year volatility caused by foreign-currency movements on its net earnings by hedging the anticipated net exposure of foreign currencies resulting from foreign-currency sales and purchases. In general, net anticipated exposures for the Group are hedged during a period of 15 months in layers of 20% up to a maximum hedge of 80%. Philips’ policy requires significant committed foreign currency exposures to be fully hedged, generally using forwards. However, not every foreign currency can or shall be hedged as there may be regulatory barriers or prohibitive hedging cost preventing Philips from effectively and/or efficiently hedging its currency exposures. As a result, hedging activities cannot and will not eliminate all currency risks for anticipated and committed transaction exposures. The following table outlines the estimated nominal value in millions of EUR for committed and anticipated transaction exposure and related hedges for Philips’ most significant currency exposures consolidated as of December 31, 2019: Philips Group Estimated transaction exposure and related hedges in millions of EUR 2019 Sales/Receivables Purchases/Payable exposure hedges exposure hedges Balance as of December 31, 2019 Exposure currency USD 2,125 (1,467) (907) 786 JPY 870 (478) (10) 10 GBP 371 (203) (24) 23 CNY 456 (322) (141) 136 CAD 283 (161) PLN 275 (96) AUD 225 (133) CHF 110 (58) (0) CZK 108 (37) SEK 71 (38) RUB 58 (58) Others 280 (240) (523) 290 Total 2019 5,233 (3,292) (1,606) 1,244 Total 2018 3,930 (2,562) (960) 809 Philips uses foreign exchange spot and forward contracts, as well as zero cost collars in hedging the exposure. The derivatives related to transactions are, for hedge accounting purposes, split into hedges of on-balance-sheet accounts receivable/payable and forecasted sales and purchases. Changes in the value of on-balance-sheet foreign-currency accounts receivable/payable, as well as the changes in the fair value of the hedges related to these exposures, are reported in the income statement under costs of sales. Hedges related to forecasted transactions, where hedge accounting is applied, are accounted for as cash flow hedges. The results from such hedges are deferred in other comprehensive income within equity to the extent that the hedge is effective. As of December 31, 2019, a loss of EUR 24 million was deferred in equity as a result of these hedges (2018: EUR 10 million loss). The result deferred in equity will be released to earnings mostly during 2020 at the time when the related hedged transactions affect the income statement. During 2019, a net gain of (0.8) million (2018: EUR 0.0 million net gain) was recorded in the consolidated statement of income as a result of ineffectiveness on certain anticipated cash flow hedges. Ineffectiveness arises when anticipated exposures are no longer expected to be highly probable. As at December 31, 2019, a loss of EUR 19 million was included in the cash flow hedges reserve related to changes in fair value of foreign exchange forward contracts attributable to forward points and changes in the time value of option contracts, which are deferred in the cash flow hedges reserve within equity. The total net fair value of hedges related to transaction exposure as of December 31, 2019, was an unrealized liability of EUR 26 million. The estimated impact of a 10% increase of value of the EUR is estimated to be EUR 154 million. The following table contains an overview of the instantaneous 10% increase in the value of EUR against major currencies. Philips Group Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR 2018 2019 USD 75 85 JPY 15 19 GBP 7 14 CHF 5 5 PLN 6 9 RUB 2 3 The EUR 154 million increase includes a gain of EUR 12 million that would impact the income statement, which would largely offset the opposite revaluation effect on the underlying accounts receivable and payable, and the remaining gain of EUR 142 million would be recognized in equity to the extent that the cash flow hedges were effective. Foreign exchange exposure also arises as a result of inter-company loans and deposits. Where the company enters into such arrangements, the financing is generally provided in the functional currency of the subsidiary entity. The currency of the company’s external funding and liquid assets is matched with the required financing of subsidiaries, either directly through external foreign currency loans and deposits, or synthetically by using foreign exchange derivatives, including cross currency interest rate swaps and foreign exchange forward contracts. In certain cases where group companies may also have external foreign currency debt or liquid assets, these exposures are also hedged through the use of foreign exchange derivatives. Changes in the fair value of hedges related to this exposure are recognized within financial income and expenses in the statements of income. When such loans would be considered part of the net investment in the subsidiary, net investment hedging would be applied. Translation exposure of foreign-currency equity invested in consolidated entities may be hedged. If a hedge is entered into, it is accounted for as a net investment hedge. Net current-period change, before tax, of the currency translation reserve of EUR 218 million relates mainly to the positive impact of the weaker EUR against the foreign currencies of countries in which Philips’ operations are located. The change in currency translation reserve was mostly related to the development of the USD. As of December 31, 2019, cross-currency interest rate swaps for a nominal value of USD 500 million (liability at fair value: EUR 123 million) and external bond funding for a nominal value of USD 1,473 million (liability at book value: EUR 1,328 million) were designated as net investment hedges of our financing investments in foreign operations for an equal amount. During 2019 a total loss of EUR 0.0 million was recognized in the income statement as ineffectiveness on net investment hedges, arising from counterparty and own credit risk. The total net fair value of financing derivatives as of December 31, 2019, was a liability of EUR 123 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 7 million in the value of the derivatives, including a EUR 53 million increase related to the USD. As of December 31, 2018, cross-currency interest rate swaps for a nominal value of USD 1,100 million (liability at fair value: EUR 246 million) and external bond funding for a nominal value of USD 1,473 million (liability at book value: EUR 1,290 million) were designated as net investment hedges of our financing investments in foreign operations for an equal amount. During 2018 a total loss of EUR 0.2 million was recognized in the income statement as ineffectiveness on net investment hedges, arising from counterparty and own credit risk. The total net fair value of financing derivatives as of December 31, 2018, was a liability of EUR 246 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 63 million in the value of the derivatives, including a EUR 79 million increase related to the USD. Philips does not currently hedge the foreign exchange exposure arising from equity interests in non-functional-currency investments in associates and other non-current financial assets. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Philips had, at year-end, outstanding debt of EUR 5,447 million (2018: EUR 4,821 million), which constitutes an inherent interest rate risk with potential negative impact on financial results. At year-end, Philips held EUR 1,425 million in cash and cash equivalents (2018: EUR 1,688 million), and had total long-term debt of EUR 4,939 million (2018: EUR 3,427 million) and total short-term debt of EUR 508 million (2018: EUR 1,394 million) At December 31, 2019, Philips had a ratio of fixed-rate long-term debt to total outstanding debt of approximately 87% compared to 67% one year earlier. Philips debt has a long maturity profile with an average tenor of long-term debt of 8.0 years with maturities up to 2042. The table below provides the impact of a 1% increase/decrease of interest rates on the fair value of the debt and the annualized net interest expenses. Philips Group Net debt 1 in millions of EUR 2018 2019 Impact 1% 2 3 (275) (300) Impact 1% 2 3 276 301 Impact 1% 4 9 11 1) The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Equity 2) The sensitivity analysis conducted shows that if long-term interest rates were to increase/decrease instantaneously by 1% from their level of December 31st, 2019, with all other variables (including foreign exchange rates) held constant. 3) Fixed-rate long-term debt is excluding forward contracts. 4) The impact is based on the outstanding net cash position (after excluding fixed-rate debt) at December 31, 2019. Global regulators and central banks have been driving international efforts to reform key benchmark interest rates (Interbank Offered Rate or IBOR rates). The market is therefore in transition to alternative risk-free reference rates (RFRs) that are transaction-based. LIBOR discontinuation after 31 December 2021 is widely expected by market participants. The company is in the process of evaluating the implications of such a phase out. The company will continue to monitor market developments. Equity price risk Equity price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in equity prices. Philips is a shareholder in some publicly listed companies and as a result is exposed to potential financial loss through movements in their share prices. The aggregate equity price exposure in such financial assets amounted to approximately EUR 15 million at December 31, 2019 (2018: EUR 476 million), and was largely reduced during 2019 with the sale of investments in Signify and Corindus. Philips does not hold derivatives in the above-mentioned listed companies. Philips also has shareholdings in several privately-owned companies amounting to EUR 37 million, mainly consisting of minority stakes in companies in various industries. As a result, Philips is exposed to potential value adjustments. Commodity price risk Commodity price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in commodity prices. Philips is a purchaser of certain base metals, precious metals and energy. Philips may hedge certain commodity price risks using derivative instruments to minimize significant, unanticipated earnings fluctuations caused by commodity price volatility. As of December 31, 2019 and 2018, respectively, Philips did not have any material outstanding commodity derivatives. Credit risk Credit risk represents the loss that would be recognized at the reporting date, if counterparties failed completely to perform their payment obligations as contracted. Credit risk is present within Philips trade receivables and contract assets. To have better insights into the credit exposures, Philips performs ongoing evaluations of the financial and non-financial condition of its customers and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is determined not to be sufficient to grant the credit limit required, there are a number of mitigation tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-payments and pledges on assets. Philips invests available cash and cash equivalents with various financial institutions and is exposed to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-performance by financial institutions with respect to financial derivative instruments. Philips actively manages concentration risk and on a daily basis measures the potential loss under certain stress scenarios, should a financial institution default. These worst-case scenario losses are monitored and limited by the company. The company does not enter into any financial derivative instruments to protect against default by financial institutions. However, where possible the company requires all financial institutions with which it deals in derivative transactions to complete legally enforceable netting agreements under an International Swap Dealers Association master agreement or otherwise prior to trading, and whenever possible, to have a strong credit rating. Philips also regularly monitors the development of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial transactions are concluded with financial institutions with strong credit ratings or with governments or government-backed institutions. The table below shows the number of financial institutions with credit rating A- and above with which Philips has cash at hand and short-term deposits above EUR 10 million as of December 31, 2019. Philips Group Credit risk with number of counterparties for deposits above EUR 10 million 2019 10-100 million 100-500 million 500 million and above AA- rated bank counterparties 1 A+ rated bank counterparties 1 3 A rated bank counterparties 2 A- rated bank counterparties 1 1 2 7 For an overview of the overall maximum credit exposure related to debt instruments, derivatives and loans and receivables, please refer to Fair value of financial assets and liabilities Country risk Country risk is the risk that political, legal, or economic developments in a single country could adversely impact our performance. The country risk per country is defined as the sum of the equity of all subsidiaries and associated companies in country cross-border transactions, such as intercompany loans, accounts receivable from third parties and intercompany accounts receivable. The country risk is monitored on a regular basis. As of December 31, 2019, the company had country risk exposure of EUR 11.4 billion in the United States, EUR 1.7 billion in the Netherlands and EUR 1.4 billion in China (including Hong Kong). Other countries higher than EUR 500 million are Japan (EUR 690 million) and the United Kingdom (EUR 681 million). Germany and India exceeded EUR 300 million but was less than EUR 500 million. The degree of risk of a country is taken into account when new investments are considered. The company does not, however, use financial derivative instruments to hedge country risk. The impact of hyperinflation is also routinely assessed and was not material for the periods presented. Other insurable risks Philips is covered for a broad range of losses by global insurance policies in the areas of property damage/ business interruption, general and product liability, transport, directors’ and officers’ liability, employment practice liability, crime and cybersecurity. The counterparty risk related to the insurance companies participating in the above-mentioned global insurance policies is actively managed. As a rule, Philips only selects insurance companies with a financial strength of at least A-. Throughout the year the counterparty risk is monitored on a regular basis. To lower exposures and to avoid potential losses, Philips has a global Risk Engineering program in place. The main focus of this program is on property damage and business interruption risks including company interdependencies. Regular on-site assessments take place at Philips locations and business-critical suppliers by risk engineers of the insurer in order to provide an accurate assessment of the potential loss and its impact. The results of these assessments are shared across the company’s stakeholders. On-site assessments are carried out against the predefined Risk Engineering standards, which are agreed between Philips and the insurers. Recommendations are made in a Risk Improvement report and are monitored centrally. This is the basis for decision-making by the local management of the business as to which recommendations will be implemented. For all policies, deductibles are in place, which vary from 0.3 million to EUR 5 million per occurrence and this variance is designed to differentiate between the existing risk categories within Philips. Above a first layer of working deductibles, Philips operates its own re-insurance captive, which during 2019 retained EUR 5 million per claim and EUR 10 million in the annual aggregate for general, product and professional liability claims. New contracts were signed effective December 31, 2019, for the coming year, whereby the re-insurance captive retentions remained unchanged. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent events [Abstract] | |
Disclosure of subsequent events [Text block] | 30 Future ownership of Domestic Appliances business On January 28, 2020, Philips announced that it will review options for future ownership of its Domestic Appliances business belonging to Personal Health. Philips will start the process of creating a separate legal structure for this business within the Philips Group, which is expected to be completed in the course of 2021. The Domestic Appliances business had EUR 2.3 billion sales in 2019. Following the disentanglement of the Domestic Appliances business, the retained Personal Health businesses will continue to play an important role in the company’s integrated health continuum approach through connected products and solutions to support the health and well-being of people. Repurchase of shares to cover certain obligations under the stock-based compensation plans In addition to its EUR 1.5 billion share repurchase program, which was announced on January 29, 2019, Philips announced on January 27, 2020 that it will repurchase up to 6 million shares to cover certain of its obligations arising from its long-term incentive and employee stock purchase plans. At the current share price, the shares represent an amount of up to approximately EUR 265 million. The repurchases will be executed through one or more individual forward transactions, to be entered into in the course of the first half of 2020, in accordance with the Market Abuse Regulation and within the limits of the authorization granted by the company’s General Meeting of Shareholders on May 9, 2019. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies [Abstract] | |
Statement of IFRS compliance [text block] | All standards and interpretations issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee effective 2019 have been endorsed by the EU; consequently, the accounting policies applied by Philips also comply with IFRS as issued by the IASB. These accounting policies have been applied by group entities. |
Description of presentation currency | The Consolidated financial statements are presented in euros, which is the presentation currency. Due to rounding, amounts may not add up precisely to the totals provided. |
Disclosure of accounting judgements and estimates [text block] | Use of estimates The preparation of the Consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. These estimates inherently contain a degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions. In the process of applying the accounting policies, management has made estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the reported amounts of assets and liabilities within the next financial year, as well as to the disclosure of contingent liabilities at the date of the Consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The company evaluates these estimates and judgments on an ongoing basis and bases the estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that Philips believes are reasonable under the circumstances. Existing circumstances and assumptions about future developments may change due to circumstances beyond the company’s control and are reflected in the assumptions if and when they occur. The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. The company revises material estimates if changes occur in the circumstances or if there is new information or experience on which an estimate was or can be based. The areas where the most significant judgments and estimates are made are goodwill, deferred tax asset recoverability, impairments, classification and measurement of financial instruments, the accounting for an arrangement containing a lease, the assessment whether a lease option to extend or cancel a lease in which the company is a lessee is reasonably certain to be exercised or not, revenue recognition, tax risks and other contingencies, assessment of control, classification of assets and liabilities held for sale and the presentation of items of profit and loss and cash flows as continuing or discontinued, as well as when determining the fair values of acquired identifiable intangible assets, contingent considerations and investments based on an assessment of future cash flows (e.g. earn out arrangements as part of acquisitions). For further discussion of these significant judgements and estimates, reference is made to the respective accounting policies and notes within these Consolidated financial statements that relate to the above topics. Further judgment is applied when analyzing impairments of goodwill and intangible assets not yet ready for use that are performed annually and whenever a triggering event has occurred to determine whether the carrying value exceeds the recoverable amount. These analyses are generally based on estimates of discounted future cash flows. Furthermore, the company applies judgment when actuarial assumptions are established to anticipate future events that are used in calculating post-employment benefit expenses and liabilities. These factors include assumptions with respect to interest rates, rates of increase in healthcare costs, rates of future compensation increases, turnover rates and life expectancy. |
Disclosure of reclassifications or changes in presentation [text block] | Changes in presentation from the prior year Accounting policies have been applied consistently for all periods presented in these consolidated financial statements, except for the items mentioned below and the impact of the adoption of IFRS 16 Leases, for which reference is made to the section New standards and interpretations of this note. In addition, certain prior-year amounts have been reclassified to conform to the current year presentation. Change in Segment reporting From January 1, 2019, Philips realigned the composition of its reporting segments. The most notable changes are the shifts of the Sleep & Respiratory Care business from the Personal Health segment to the renamed Connected Care segment and most of the Healthcare Informatics business from the renamed Connected Care segment to the Diagnosis & Treatment segment. The new segment structure had no significant impact on the headroom or lead to goodwill impairment as disclosed in Goodwill Consequential changes to comparative segment disclosures have been processed in Receivables Provisions Information by segment and main country Change in presentation of non-current portion of income tax payable due to IFRIC 23 Following the adoption of IFRIC 23 Uncertainty over Income Tax Treatments, the company has changed the presentation of uncertain tax positions in the Consolidated balance sheets. The Other tax liability included in the line Other non-current liabilities is reclassified to the new Non-current tax liabilities line item on the face of the Consolidated balance sheets. For the comparative figures per December 31, 2018 an amount of EUR 181 million is reclassified from Other non-current liabilities to Income tax payable (under non-current liabilities). Further reference is made to Income taxes |
Specific choices within IFRS [Text block] | Specific choices within IFRS In certain instances, IFRS allows alternative accounting treatments for measurement and/or disclosure. Philips has adopted one of the treatments as appropriate to the circumstances of the company. The most important of these alternative treatments are mentioned below. |
Accounting policy for tangible and intangible fixed assets [Text block] | Tangible and intangible fixed assets Under IFRS, an entity shall choose either the cost model or the revaluation model as its accounting model for tangible and intangible fixed assets. In this respect, items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The useful lives and residual values are evaluated annually. Furthermore, the company chose to apply the cost model, meaning that costs relating to product development, the development and purchase of software for internal use and other intangible assets are capitalized and subsequently amortized over the estimated useful life. Further information on Tangible and Intangible fixed assets can be found in Property, plant and equipment Intangible assets excluding goodwill |
Description of accounting policy for employee benefits [text block] | Employee benefit accounting IFRS does not specify how an entity should present its service costs related to pensions and net interest on the net defined-benefit liability (asset) in the Consolidated statements of income. With regards to these elements, the company presents service costs in Income from operations and the net interest expenses related to defined-benefit plans in Financial expense. Further information on employee benefit accounting can be found in Post-employment benefits Employee benefit accounting A defined-contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined-contribution pension plans are recognized as an employee benefit expense in the Consolidated statements of income in the periods during which services are rendered by employees. A defined-benefit plan is a post-employment benefit plan other than a defined-contribution plan. Plans for which the company has no legal or constructive obligation to pay further amounts, but to which it does pay non-fixed contributions, are also treated as a defined-benefit plan. The net pension asset or liability recognized in the Consolidated balance sheets in respect of defined-benefit post-employment plans is the fair value of plan assets less the present value of the projected defined-benefit obligation at the Consolidated balance sheets date. The defined-benefit obligation is calculated annually by qualified actuaries using the projected unit credit method. Recognized assets are limited to the present value of any reductions in future contributions or any future refunds. The net pension liability is presented as a long-term provision; no distinction is made for the short-term portion. For the company’s major plans, a full discount rate curve of high-quality corporate bonds is used to determine the defined-benefit obligation. The curves are based on Willis Towers Watson’s rate methodology which uses data of corporate bonds rated AA or equivalent. For the other plans a single-point discount rate is used based on corporate bonds for which there is a deep market and on the plan’s maturity. Plans in countries without a deep corporate bond market use a discount rate based on the local sovereign curve and the plan’s maturity. Pension costs in respect of defined-benefit post-employment plans primarily represent the increase of the actuarial present value of the obligation for post-employment benefits based on employee service during the year and the interest on the net recognized asset or liability in respect of employee service in previous years. Remeasurements of the net defined-benefit asset or liability comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The company recognizes all remeasurements in Other comprehensive income. The company recognizes gains and losses on the settlement of a defined-benefit plan when the settlement occurs. The gain or loss on settlement is the difference between the present value of the defined-benefit obligation being settled, as determined on the date of settlement, and the settlement price, including any plan assets transferred and any payments made directly by the company in connection with the settlement. Past service costs arising from the introduction of a change to the benefit payable under a plan or a significant reduction of the number of employees covered by a plan (curtailment) are recognized in full in the Consolidated statements of income. Further information on post-employment benefit accounting can be found in Post-employment benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. The company recognizes a liability and an expense for bonuses and incentives based on a formula that takes into consideration the profit attributable to the company’s shareholders after certain adjustments. The company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods, such as jubilee entitlements. That benefit is discounted to determine its present value. Remeasurements are recognized in the Consolidated statements of income in the period in which they arise. Further information on other employee benefits can be found in Provisions |
Description of accounting policy for cash flows [text block] | Cash flow statements Under IFRS, an entity shall report cash flows from operating activities using either the direct method (whereby major classes of gross cash receipts and gross cash payments are disclosed) or the indirect method (whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows). In this respect, the company chose to prepare the cash flow statements using the indirect method. Furthermore, interest cash flows are presented in cash flows from operating activities rather than in cash flows from financing or investing activities, because they enter into the determination of profit or loss. The company chose to present dividends paid to shareholders of Koninklijke Philips N.V. as a component of cash flows from financing activities, rather than to present such dividends as cash flows from operating activities, which is an allowed alternative under IFRS. Consolidated statements of cash flows can be found in Consolidated statements of cash flows Cash flow statements Cash flows arising from transactions in a foreign currency are translated into the company’s functional currency using the exchange rate at the date of the cash flow. Cash flows from derivative instruments that are accounted for as cash flow hedges are classified in the same category as the cash flows from the hedged items. Cash flows from other derivative instruments are classified as investing cash flows. |
Description of accounting policy for recognition of revenue [text block] | Revenue recognition Revenue from the sale of goods in the normal course of business is recognized at a point in time when the performance obligation is satisfied and it is based on the amount of the transaction price that is allocated to the performance obligation. The transaction price is the amount of the consideration to which the company expects to be entitled in exchange for transferring the promised goods to the customer. The consideration expected by the company may include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and volume rebates. The company adjusts the consideration for the time value of money for the contracts where no explicit interest rate is mentioned if the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds six months. Revenue for the sale of goods is recognized when control of the asset is transferred to the buyer and only when it is highly probable that a significant reversal of revenue will not occur when uncertainties related to a variable consideration are resolved. Transfer of control varies depending on the individual terms of the contract of sale. For consumer-type products in the segment Personal Health businesses, control is transferred when the product is shipped and delivered to the customer and title and risk have passed to the customer (depending on the delivery conditions) and acceptance of the product has been obtained. Examples of delivery conditions are ‘Free on Board point of delivery’ and ‘Costs, Insurance Paid point of delivery’, where the point of delivery may be the shipping warehouse or any other point of destination as agreed in the contract with the customer and where control is transferred to the customer. Revenues from transactions relating to distinct goods or services are accounted for separately based on their relative stand-alone selling prices. The stand-alone selling price is defined as the price that would be charged for the goods or service in a separate transaction under similar conditions to similar customers, which within the company is mainly the Country Target Price (CTP). The transaction price determined (taking into account variable considerations) is allocated to performance obligations based on relative stand-alone selling prices. These transactions mainly occur in the segments Diagnosis & Treatment businesses and Connected Care businesses and include arrangements that require subsequent installation and training activities in order to make distinct goods operable for the customer. As such, the related installation and training activities are part of equipment sales rather than separate performance obligations. Revenue is recognized when the performance obligation is satisfied, i.e. when the installation has been completed and the equipment is ready to be used by the customer in the way contractually agreed. Revenues are recorded net of sales taxes. A variable consideration is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such assessment is performed on each reporting date to check whether it is constrained. For products for which a right of return exists during a defined period, revenue recognition is determined based on the historical pattern of actual returns, or in cases where such information is not available revenue recognition is postponed until the return period has lapsed. Return policies are typically based on customary return arrangements in local markets. A provision is recognized for assurance-type product warranty at the time of revenue recognition and reflects the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to the products sold. For certain products, the customer has the option to purchase the warranty separately, which is considered a separate performance obligation on top of the assurance-type product warranty. For such warranties which provide distinct service, revenue recognition occurs on a straight-line basis over the extended warranty contract period. In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred for shipping and handling of internal movements of goods are recorded as cost of sales. Shipping and handling related to sales to third parties are recorded as selling expenses. When shipping and handling are part of a project and billed to the customer, then the related expenses are recorded as cost of sales. Shipping and handling billed to customers are distinct and separate performance obligations and recognized as revenues. Expenses incurred for sales commissions that are considered incremental to the contracts are recognized immediately in the Consolidated statements of income as selling expenses as a practical expedient under IFRS 15 Revenue from Contracts with Customers. Revenue from services is recognized over a period of time as the company transfers control of the services to the customer which is demonstrated by the customer simultaneously receiving and consuming the benefits provided by the company. The amount of revenues is measured by reference to the progress made towards complete satisfaction of the performance obligation, which in general is evenly over time. Service revenue related to repair and maintenance activities for goods sold is recognized ratably over the service period or as services are rendered. Royalty income from brand license arrangements is recognized based on a right to access the license, which in practice means over the contract period based on a fixed amount or reliable estimate of sales made by a licensee. Royalty income from intellectual property rights such as technology licenses or patents is recognized based on a right-to-use the license, which in practice means at a point in time based on the contractual terms and substance of the relevant agreement with a licensee. However, revenue related to intellectual property contracts with variable consideration where a constraint in the estimation is identified, is recognized over the contract period and is based on actual or reliably estimated sales made by a licensee. The company receives payments from customers based on a billing schedule or credit period, as established in our contracts. Credit periods are determined based on standard terms, which vary according to local market conditions. Amounts posted in deferred revenue for which the goods or services have not yet been transferred to the customer and amounts that have either been received or are due, are presented as Contract liabilities in the Consolidated balance sheets. |
Description of accounting policy for income tax [text block] | Income taxes Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the Consolidated statements of income except to the extent that it relates to items recognized directly within equity or in other comprehensive income. Current tax is the expected taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Tax liabilities are recognized when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the company to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact the income tax expense in the period during which such a determination is made. Deferred tax assets and liabilities are recognized, using the consolidated balance sheets method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill; the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; and differences relating to investments in subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by the company and it is probable that it will not reverse in the foreseeable future. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity or on different taxable entities, but the company intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that there will be future taxable profits against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Deferred tax liabilities for withholding taxes are recognized for subsidiaries in situations where the income is to be paid out as dividend in the foreseeable future and for undistributed earnings of unconsolidated companies to the extent that these withholding taxes are not expected to be refundable or deductible. Changes in tax rates and tax laws are reflected in the period when the change was enacted or substantively enacted by the reporting date. Any subsequent adjustment to a tax asset or liability that originated in discontinued operations and for which no specific arrangements were made at the time of divestment, due to a change in the tax base or its measurement, is allocated to discontinued operations (i.e. backwards tracing). Examples are a tax rate change or change in retained assets or liabilities directly relating to the discontinued operation. Any subsequent change to the recognition of deferred tax assets is allocated to the component in which the taxable gain is or will be recognized. The above principles are applied to the extent the ‘discontinued operations’ are sufficiently separable from continuing operations. Further information on income tax can be found in Income taxes |
Description of accounting policy for provisions [text block] | Provisions Provisions are recognized if, as a result of a past event, the company has a present legal or constructive obligation, the amount can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money. The increase in the provision due to passage of time is recognized as interest expense. The accounting and presentation for some of the company’s provisions is as follows: Product warranty – A provision for assurance-type product warranty is recognized when the underlying products or services are sold. The provision is based on historical warranty data and a weighing of possible outcomes against their associated probabilities. Environmental provisions – Measurement of liabilities associated with environmental obligations is based on current legal and constructive requirements. Liabilities and expected insurance recoveries, if any, are recorded separately. The carrying amount of environmental liabilities is regularly reviewed and adjusted for new facts and changes in law. Restructuring-related provisions – The provision for restructuring mainly relates to the estimated costs of initiated restructurings, the most significant of which have been approved by the Executive Committee, and which generally involve the realignment of certain parts of the industrial and commercial organization. When such restructurings require discontinuance and/or closure of lines of activities, the anticipated costs of closure or discontinuance are included in restructuring provisions. A liability is recognized for those costs only when the company has a detailed formal plan for the restructuring and has raised a valid expectation with those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. Before a provision is established, the company recognizes any impairment loss on the assets associated with the restructuring. Litigation provisions – In relation to legal claim provisions and settlements, the relevant balances are transferred to Other liabilities at the point when the amount and timing of cash outflows are no longer uncertain. Settlements which are agreed for amounts in excess of existing provisions are reflected as increases in Other liabilities. Further information on provisions can be found in Provisions |
Description of accounting policy for goodwill [text block] | Goodwill The measurement of goodwill at initial recognition is described in the Basis of consolidation note. Goodwill is subsequently measured at cost less accumulated impairment losses. Further information on goodwill can also be found in Goodwill |
Description of accounting policy for intangible assets other than goodwill [text block] | Intangible assets other than goodwill Acquired finite-lived intangible assets are amortized using the straight-line method over their estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized at cost, with the exception of intangible assets acquired as part of a business combination, which are capitalized at their acquisition date fair value. The company expenses all research costs as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized as an intangible asset if the product or process is technically and commercially feasible, the company has sufficient resources and the intention to complete development and can measure the attributable expenditure reliably. The capitalized development expenditure comprises of all directly attributable costs (including the cost of materials and direct labor). Other development expenditures and expenditures on research activities are recognized in the Consolidated statements of income. Capitalized development expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of capitalized development expenditure is charged to the Consolidated statements of income on a straight-line basis over the estimated useful lives of the intangible assets. Further information on intangible assets other than goodwill can be found in Intangible assets excluding goodwill |
Description of accounting policy for non-current assets or disposal groups classified as held for sale and discontinued operations [text block] | Discontinued operations and non-current assets held for sale Non-current assets and disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Consolidated balance sheets. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Consolidated balance sheets. A discontinued operation is a component of an entity that has either been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations; or is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a view to sell. If a discontinued operation is sold in stages as part of a single coordinated plan until it is completely sold, then the Investment in associate that is recognized upon sale of a portion that results in Philips having significant influence in the operation (rather than control) is continued to be treated as discontinued operation provided that the held for sale criteria are met. Non-current assets held for sale and discontinued operations are carried at the lower of carrying amount or fair value less cost of disposal. Any gain or loss from disposal, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Consolidated financial statements and related notes for all periods presented. Comparatives in the Consolidated balance sheets are not represented when a non-current asset or disposal group is classified as held for sale. Comparatives are represented for presentation of discontinued operations in the Consolidated statements of cash flows and Consolidated statements of income. Adjustments in the current period to amounts previously presented in discontinued operations that are directly related to the disposal of a discontinued operation in a prior period, and for which no specific arrangements were made at the time of divestment, are classified separately in discontinued operations. Circumstances to which these adjustments may relate include resolution of uncertainties that arise from the terms of the disposal transaction, such as the resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise from and are directly related to the operations of the component before its disposal, such as environmental and assurance-type product warranty obligations retained by the company, and the settlement of employee benefit plan obligations provided that the settlement is directly related to the disposal transaction. Further information on discontinued operations and non-current assets held for sale can be found in Discontinued operations and assets classified as held for sale |
Description of accounting policy for impairment of non-financial assets [text block] | Impairment of goodwill and intangible assets not yet ready for use Goodwill and intangible assets not yet ready for use are not amortized but are tested for impairment annually and whenever impairment indicators require. In case of goodwill and intangible assets not yet ready for use, either internal or external sources of information are considered indicators that an asset or a CGU may be impaired. In most cases the company identified its cash-generating units for goodwill at one level below that of an operating segment. Cash flows at this level are substantially independent from other cash flows and this is the lowest level at which goodwill is monitored by the Executive Committee. An impairment loss is recognized in the Consolidated statements of income whenever and to the extent that the carrying amount of a cash-generating unit exceeds the unit’s recoverable amount, whichever is the greater, its value in use or its fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from the sale of an asset in an arm’s length transaction, less costs of disposal. Further information on impairment of goodwill and intangible assets not yet ready for use can be found in Goodwill Intangible assets excluding goodwill Impairment of non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of an asset with the greater of its value in use and fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from a sale of an asset in an arm’s length transaction, less costs of disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the recoverable amount. The review for impairment is carried out at the level where cash flows occur that are independent of other cash flows. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if and to the extent that there has been a change in the estimates used to determine the recoverable amount. The loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment are recognized in the Consolidated statements of income. |
Description of accounting policy for impairment of financial assets [text block] | Impairment of financial assets The company recognizes an allowance for expected credit losses (ECLs) for trade receivables, contract assets, lease receivables, debt investments carried at fair value through Other comprehensive income (FVTOCI) and amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the company expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized in two stages. For credit risk exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (12-month ECLs). The company considers a financial asset to be in default when the counterparty is unlikely to pay its credit obligations to the company in full or when the financial asset is past due. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (lifetime ECLs). When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the company's historical experience and informed credit assessment and including forward-looking information, such as forecast economic conditions that affect the ability of the customers to settle the receivables. For all trade receivables, contract assets and lease receivables, the company applies the IFRS 9 simplified approach to measuring ECLs, which uses the lifetime ECL allowance. To measure the ECLs on trade receivables, contract assets and lease receivables, the company takes into account credit-risk concentration, collective debt risk based on average historical losses, specific circumstances such as serious adverse economic conditions in a specific country or region, and other forward-looking information. Trade receivables, contract assets and lease receivables are written off when there is no reasonable expectation of recovery of the asset, for example because of bankruptcy or other forms of receivership. Further information on financial assets can be found in Other financial assets |
Disclosure of basis of consolidation [text block] | Basis of consolidation The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V. and all subsidiaries that the company controls, i.e. when it is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and in cases where Philips has less than a majority of the voting or similar rights of an investee, Philips considers all relevant facts and circumstances in assessing whether it has power over an investee, including the contractual arrangement(s) with the other vote holders of the investee, rights arising from other contractual arrangements and the company’s voting rights and potential voting rights. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. All intercompany balances and transactions have been eliminated in the Consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. |
Description of accounting policy for loss of control [Text block] | Loss of control Upon loss of control, the company derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising from the loss of control is recognized in the Consolidated statements of income. If the company retains any interest in the previous subsidiary, such interest is measured at fair value at the date the control is lost. Subsequently it is accounted for as either an equity-accounted investee (associate) or as a financial asset, depending on the level of influence retained. Further information on loss of control can be found in Discontinued operations and assets classified as held for sale |
Description of accounting policy for business combinations [text block] | Business combinations Business combinations are accounted for using the acquisition method. Under the acquisition method, the identifiable assets acquired, liabilities assumed and any non-controlling interest in the acquiree are recognized at the acquisition date, which is the date on which control is transferred to the company. The company measures goodwill at the acquisition date as: the fair value of the consideration transferred; plus the recognized amount of any non-controlling interest in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the company incurs are expensed as incurred. Any contingent consideration payable is recognized at fair value at the acquisition date and initially is presented in Long-term provisions. When the timing and amount of the consideration become more certain, it is reclassified to Accrued liabilities. If the contingent consideration that meets the definition of a financial instrument is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in the Consolidated statements of income. Non-controlling interests are measured on the basis of their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Further information on business combinations can be found in Acquisitions and divestments |
Acquisitions of and adjustments to non-controlling interests [Text block] | Acquisitions of and adjustments to non-controlling interests Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognized. Adjustments to non-controlling interests arising from transactions that do not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary. |
Description of accounting policy for investment in associates [text block] | Investments in associates (equity-accounted investees) Associates are all entities over which the company has significant influence, but no control. Significant influence is presumed with a shareholding of between 20% and 50% of the voting rights or when the company has board representation through which it is able to exercise significant influence. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The carrying amount of an investment includes the carrying amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to the investment as a whole. The company’s share of the net income of these companies is included in Investments in associates, net of income taxes, in the Consolidated statements of income, after adjustments to align the accounting policies with those of the company, from the date that significant influence commences until the date that significant influence ceases. Dilution gains and losses arising from investments in associates are recognized in the Consolidated statements of income as part of Investments in associates, net of income taxes. When the company’s share of losses exceeds its interest in an associate, the carrying amount of that interest (including any long-term loans) is reduced to zero and recognition of further losses is discontinued except to the extent that the company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains on transactions between the company and its associates are eliminated to the extent of the company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Remeasurement differences of an equity stake resulting from gaining control over an investee that was previously recorded as an associate are recorded under Investments in associates. Further information on investments in associates can be found in Interests in entities |
Description of accounting policy for foreign currency translation [text block] | Foreign currencies Foreign currency transactions The financial statements of all group entities are measured using the currency of the primary economic environment in which the entity operates (functional currency). The euro (EUR) is the functional currency of the company and the presentation currency of the Group financial statements. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or the valuation in cases where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated statements of income, except when deferred in Other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign currency differences arising from translations are recognized in the Consolidated statements of income, except for equity investments measured at fair value through OCI which are recognized in Other comprehensive income. If there is an impairment which results in foreign currency differences being recognized, these differences are reclassified from Other comprehensive income to the Consolidated statements of income. All foreign exchange differences are presented as part of Cost of sales, with the exception of tax items and financial income and expense, which are recognized in the same line item as they relate to in the Consolidated statements of income. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency using the exchange rate at the date the fair value was determined. Non-monetary items in a foreign currency that are measured based on historical cost are translated using the exchange rate at the transaction date. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to euros at the exchange rates prevailing at the reporting date. The income and expenses of foreign operations are translated to euros at the exchange rates prevailing at the dates of the transactions. Foreign currency differences arising upon translation of foreign operations into euros are recognized in Other comprehensive income, and presented as part of Currency translation differences in Equity. However, if the operation is a non-wholly-owned subsidiary, the relevant proportionate share of the translation difference is allocated to Non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the Currency translation differences related to the foreign operation is reclassified to the Consolidated statements of income as part of the gain or loss on disposal. When the company disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the respective proportion of the cumulative amount is reattributed to Non-controlling interests. When the company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to the Consolidated statements of income. |
Description of accounting policy for financial instruments [text block] | Financial instruments Non-derivative financial assets Recognition and initial measurement Non-derivative financial assets are recognized when the company becomes a party to the contractual provisions of the instrument. Purchases and sales of financial assets in the normal course of business are accounted for at the trade date. Dividend and interest income are recognized when earned. Gains or losses, if any, are recorded in Financial income and expense. Non-derivative financial assets are derecognized when the rights to receive cash flows from the asset have expired or the company has transferred its rights to receive cash flows from the asset. At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not measured at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the Consolidated statements of income. Classification and subsequent measurement The company classifies its non-derivative financial assets in the following measurement categories: those that are measured subsequently at fair value (either through OCI (FVTOCI) or profit or loss (FVTPL); those that are measured at amortized cost. In assessing the classification, the company considers the business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will be recorded in either the Consolidated statements of income or in Other comprehensive income (OCI). For investments in equity instruments that are not held for trading, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVTOCI. For investments in these equity instruments, the company does not subsequently reclassify between FVTOCI and FVTPL. For debt investments, assets are reclassified between FVTOCI, FVTPL and amortized cost only when its business model for managing those assets changes. Non-derivative financial assets comprise cash and cash equivalents, receivables and other financial assets. Cash and cash equivalents Cash and cash equivalents include all cash balances, certain money market funds and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash. Further information on cash and cash equivalents can be found in Cash flow statement supplementary information Receivables Receivable balances that are held to collect are subsequently measured at amortized cost and are subject to impairment as explained in the impairment section of this note. Receivables that are held to collect and sell are subsequently measured at FVTOCI and are also subject to impairment. The company derecognizes receivables on entering into factoring transactions if the company has transferred substantially all risks and rewards or if the company does not retain control over those receivables. Further information on receivables can be found in Receivables Other (non-)current financial assets Other (non-)current financial assets include both debt instruments and equity instruments. Debt instruments include those subsequently carried at amortized cost, those carried at FVTPL and those carried at FVTOCI. Classification depends on the company’s business model for managing the asset and the cash flow characteristics of the asset. Debt instruments that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost and are subject to impairment. Interest income from these financial assets is included in Financial income using the effective interest rate method. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Debt instruments that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVTOCI and are subject to impairment. Movements in the carrying amounts are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses, which are recognized in the Consolidated statements of income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to the Consolidated statements of income. Interest income from these financial assets is included in Financial income using the effective interest rate method. Debt instruments that do not meet the criteria for amortized cost or FVTOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognized in the Consolidated statements of income in the period in which it arises. Equity investments are subsequently measured at fair value. Equity instruments that are held for trading are measured at FVTPL. For equity instruments that are not held for trading, the company makes an irrevocable election at the time of initial recognition whether to account for the equity investment at FVTPL or FVTOCI. Where management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Consolidated statements of income following the derecognition of the investment. Dividends from such investments continue to be recognized in the Consolidated statements of income when the company’s right to receive payments is established. Further information on other (non-)current financial assets can be found in Other financial assets Debt and other financial liabilities Debt and other financial liabilities, excluding derivative financial liabilities and provisions, are initially measured at fair value and, in the case of debt and payables, net of directly attributable transaction costs. Debt and other financial liabilities are subsequently measured at amortized cost using the effective interest rate. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. Debt and other financial liabilities are derecognized when the obligation under the liability is discharged, cancelled or has expired. Further information on debt and other financial liabilities can be found in Debt Derivative financial instruments, including hedge accounting The company uses derivative financial instruments principally to manage its foreign currency risks and, to a more limited extent, interest rate and commodity price risks. All derivative financial instruments are accounted for at the trade date and classified as current or non-current assets or liabilities based on the maturity date or the early termination date. The company measures all derivative financial instruments at fair value that is derived from the market prices of the instruments, calculated on the basis of the present value of the estimated future cash flows based on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or derived from option pricing models, as appropriate. Gains or losses arising from changes in fair value of derivatives are recognized in the Consolidated statements of income, except for derivatives that are highly effective and qualify for cash flow or net investment hedge accounting. Changes in the fair value of foreign exchange forward contracts attributable to forward points and changes in the time value of the option contracts are deferred in the cash flow hedges reserve within equity. The deferred amounts are recognized in the Consolidated statements of income against the related hedged transaction when it occurs. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in OCI until the Consolidated statements of income are affected by the variability in cash flows of the designated hedged item. To the extent that the hedge is ineffective, changes in the fair value are recognized in the Consolidated statements of income. The company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. When it is established that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the company discontinues hedge accounting prospectively. When hedge accounting is discontinued because it is expected that a forecasted transaction will not occur, the company continues to carry the derivative on the Consolidated balance sheets at its fair value, and gains and losses that were accumulated in OCI are recognized immediately in the same line item as they relate to in the Consolidated statements of income. Foreign currency differences arising upon retranslation of financial instruments designated as a hedge of a net investment in a foreign operation are recognized directly in the currency translation differences reserve through OCI, to the extent that the hedge is effective. To the extent that the hedge is ineffective, such differences are recognized in the Consolidated statements of income. |
Description of accounting policy for equity [Text block] | Equity Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from equity. Where the company purchases the company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental transaction costs (net of income taxes), is deducted from equity attributable to the company’s equity holders until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the company’s equity holders. Call options on own shares are treated as equity instruments. Dividends are recognized as a liability in the period in which they are declared and approved by shareholders. The income tax consequences of dividends are recognized when a liability to pay the dividend is recognized. Further information on equity can be found in Equity |
Description of accounting policy for offsetting of financial instruments [text block] | Offsetting and master netting agreements The company presents financial assets and financial liabilities on a gross basis as separate line items in the Consolidated balance sheets. Master netting agreements may be entered into when the company undertakes a number of financial instrument transactions with a single counterparty. Such an agreement provides for a net settlement of all financial instruments covered by the agreement in the event of default or certain termination events associated with any of the transactions. A master netting agreement may create a right to offset that becomes enforceable and affects the realization or settlement of individual financial assets and financial liabilities only following a specified termination event. However, if this contractual right is subject to certain limitations then it does not necessarily provide a basis for offsetting, unless both of the offsetting criteria are met, i.e. there is a legally enforceable right and an intention to settle net or simultaneously. |
Description of accounting policy for property, plant and equipment [text block] | Property, plant and equipment The costs of property, plant and equipment comprise all directly attributable costs (including the cost of material and direct labor). Depreciation is generally calculated using the straight-line method over the useful life of the asset. Gains and losses on the sale of property, plant and equipment are included in Other business income. Costs related to repair and maintenance activities are expensed in the period in which they are incurred unless leading to an extension of the original lifetime or capacity. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Further information on property, plant and equipment can be found in Property, plant and equipment |
Description of accounting policy for leases [text block] | Leases The company determines whether an arrangement constitutes or contains a lease at inception, which is based on the substance of the arrangement at the inception of the lease. The arrangement constitutes or contains a lease if fulfillment is dependent on the use of a specific asset and the arrangement conveys a right to use the asset, even if that asset is not explicitly specified in the arrangement. Company as a lessee Until the financial year ended December 31, 2018, leases of property, plant and equipment were classified as either finance or operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease. From January 1, 2019, leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the company. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: fixed payments (including in-substance fixed payments) less any lease incentives receivable; variable lease payments that are based on an index or a rate; amounts expected to be payable by the lessee under residual value guarantees; the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate at the lease commencement date is used, which is based on an assessment of interest rates the company would have to pay to borrow funds, including the consideration of factors such as the nature of the asset and location, collateral, market terms and conditions, as applicable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. Each lease payment is allocated between the liability and finance charges. The interest element of the finance cost is charged to the Consolidated statements of income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Right-of-use assets are measured at cost comprising the following: the amount of the initial measurement of lease liability; any lease payments made at or before the commencement date less any lease incentives received; any initial direct costs; restoration costs. The company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. The company leases various items of real estate, vehicles and other equipment. Rental contracts are typically made for fixed periods but may have extension or termination options. The related year end disclosures pertaining to leases as lessee under the new standard IFRS 16 have been disclosed in respective notes according to the nature of the reported item. Below are the references with respect to IFRS 16 year-end disclosures as lessee: For disclosure on Right-of-use assets and related movement, refer to Property, plant and equipment Short-term and low-value leases, are disclosed in Income from operations Disclosures regarding interest expenses on lease liabilities, are disclosed in Financial income and expenses For disclosure on leasing related cash outflow and the split between interest and principal payments, refer to the Consolidated statements of cash flows and Cash flow statement supplementary information For disclosure on sale and leaseback transactions, refer to Details of treasury / other financial risks For disclosure on lease liabilities and maturity analysis, refer to Debt Other qualitative and quantitative disclosures regarding the nature of lessee’s leasing activities and future lease obligations, refer to Details of treasury / other financial risks Company as a lessor When the company acts as a lessor, it determines at lease inception whether a lease is a finance lease or an operating lease. Leases in which the company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. The company recognizes lease payments received under operating leases as income on a straight-line basis over the lease terms in the Statement of income. The related year end disclosures pertaining to leases as lessor under the new standard IFRS 16 have been disclosed in respective notes according to the nature of the reported item. Below are the references with respect to IFRS 16 year-end disclosures as lessor: For disclosures on lease income and sublease income, refer to Income from operations Other qualitative disclosures regarding the nature of lessor’s leasing activities and risk management, refer to Details of treasury / other financial risks |
Description of accounting policy for measuring inventories [text block] | Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include direct labor and fixed and variable production overheads, taking into account the stage of completion and the normal capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of inventories is determined using the first-in, first-out (FIFO) method. Inventory is reduced for the estimated losses due to obsolescence. This reduction is determined for groups of products based on sales in the recent past and/or expected future demand. Further information on inventories can be found in Inventories |
Description of accounting policy for share-based payment transactions [text block] | Share-based payment Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model, further details of which are given in Share-based compensation The grant-date fair value of equity-settled share-based payment awards granted to employees is recognized as personnel expense, with a corresponding increase in equity, over the vesting period of the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the company’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of income for a period represents the movement in cumulative expense recognized at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant-date fair value of awards, but the likelihood of the conditions being met is assessed as part of the company’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant-date fair value. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. When an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. The dilutive effect of outstanding options and shares is reflected as additional share dilution in the computation of diluted earnings per share (further details are given in Earnings per share |
Description of accounting policy for finance income and costs [text block] | Financial income and expenses Financial income comprises interest income on funds invested (including financial assets), dividend income, net gains on the disposal of financial assets, net fair value gains on financial assets at FVTPL, net gains on the remeasurement to fair value of any pre-existing interest in an acquiree, and net gains on foreign exchange impacts that are recognized in the Consolidated statements of income. Interest income is recognized on an accrual basis in the Consolidated statements of income, using the effective interest method. Dividend income is recognized in the Consolidated statements of income on the date that the company’s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date. Financial expenses comprise interest expenses on borrowings, unwinding of the discount on provisions and contingent consideration, losses on disposal of financial assets, net fair value losses on financial assets at FVTPL, impairment losses recognized on financial assets (other than trade receivables), net interest expenses related to defined-benefit plans, interest on lease liabilities and net losses on foreign exchange impacts that are recognized in the Consolidated statements of income. Further information on financial income and expenses can be found in Financial income and expenses |
Description of accounting policy for government grants [text block] | Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions. Government grants relating to costs are deferred and recognized in the Consolidated statements of income as a reduction of the related costs over the period necessary to match them with the costs that they are intended to compensate. Grants related to assets are deducted from the cost of the asset and presented net in the Consolidated balance sheets. |
Description of accounting policy for financial guarantees [text block] | Financial guarantees The company recognizes a liability at the fair value of the obligation at the inception of a financial guarantee contract. The guarantee is subsequently measured at the higher of the best estimate of the obligation or the amount initially recognized less, when appropriate, cumulative amortization. |
Description of accounting policy for segment reporting [text block] | Segment information Operating segments are components of the company’s business activities about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Executive Committee of the company). The Executive Committee decides how to allocate resources and assesses performance. Reportable segments comprise the operating segments Diagnosis & Treatment businesses, Connected Care businesses and Personal Health businesses. Additionally, besides these reportable segments, segment Other exists. Segment accounting policies are the same as the accounting policies applied by the company. |
Description of accounting policy for earnings per share [text block] | Earnings per Share The company presents basic and diluted earnings per share (EPS) data for its common shares. Basic EPS is calculated by dividing the Net income (loss) attributable to shareholders by the weighted average number of common shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders and the weighted average number of common shares outstanding during the period, adjusted for own shares held, for the effects of all dilutive potential common shares, which comprises forward purchase contracts, restricted shares, performance shares and share options granted to employees. Further information on earnings per share can be found in Earnings per share |
Disclosure of first-time adoption [text block] | New standards and interpretations IFRS accounting standards adopted as from 2019 The company applies, for the first time, IFRS 16 Leases. The impact of the adoption of this new standard and the new accounting policy is disclosed below. Other amendments and interpretations applied for the first time in 2019 did not have a material impact on the consolidated financial statements of the company. Impact on the financial statements IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance-sheet model. Lessor accounting under IFRS 16 is substantially unchanged compared to IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have an impact for leases where the company is the lessor. The company adopted IFRS 16 using the modified retrospective method of adoption with the date of initial application of January 1, 2019. The company did not restate prior-year financial statements or notes. Nature of the effect of adoption of IFRS 16 The company has lease contracts for various items of real estate, vehicles and other equipment. Before the adoption of IFRS 16, the company classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. A lease was classified as a finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the company otherwise it was classified as an operating lease. Finance leases were capitalized at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments were apportioned between interest (recognized as financial expenses) and reduction of the lease liability. In an operating lease, the leased item was not capitalized and the lease payments were recognized as rent expense in the Consolidated statement of income on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognized under Other current assets and Accrued liabilities respectively. Upon adoption of IFRS 16, the company applied a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients which have been applied by the company. Leases previously classified as finance leases The company did not change the initial carrying amounts of recognized assets and liabilities at the date of initial application for leases previously classified as finance leases (i.e. the right-of-use assets and lease liabilities equal the lease assets and liabilities recognized under IAS 17). The requirements of IFRS 16 have been applied to these leases from January 1, 2019. Leases previously accounted for as operating leases The company recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. The right-of-use assets for most leases were recognized based on the amount equal to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously recognized. For certain property leases, the right-of- use assets were recognized based on the carrying amount as if the standard had always been applied, apart from the use of incremental borrowing rate at the date of initial application. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. Practical expedients applied In applying IFRS 16 for the first time, the company has used the following practical expedients permitted by the standard: Reliance on previous assessments on whether leases are onerous; Accounting for operating leases with an original lease term or remaining lease term of less than 12 months as at January 1, 2019 as short-term leases; Exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application; Use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease; Exclusion of low-value leases (i.e. individually less than EUR 5,000); Not separating lease from non-lease components for car leases. The company has also elected not to reassess whether a contract is, or contains, a lease at the date of initial application. Instead, for contracts entered into before the transition date, the company relied on its assessment made applying IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease. Adjustments recognized on adoption of IFRS 16 On adoption of IFRS 16, the company recognized lease liabilities in relation to leases which had previously been classified as operating leases under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 2.4%. In addition, the existing finance lease assets and liabilities, determined as per IAS 17 with a carrying value of approximately EUR 330 million each as at December 31, 2018, have been reclassified and added to the right-of-use asset and lease liability determined as per IFRS 16 on January 1, 2019. The change in accounting policy affected the following items on the balance sheet on January 1, 2019: Balance sheet impact of IFRS 16 adoption Balance sheet captions January 1, 2019 IFRS 16 January 1, 2019 Property, plant and equipment 1,712 760 2,472 Other current assets 469 (12) 457 Deferred tax assets 1,828 5 1,833 Shareholders' equity 12,088 (33) 12,055 Long-term debt 3,427 656 4,083 Long-term provisions 1,788 (6) 1,782 Short-term debt 1,394 147 1,541 Accrued liabilities 1,537 (11) 1,526 The lease liabilities as of January 1, 2019 are reconciled to the operating lease commitments as of December 31, 2018 as follows: Reconciliation of operating lease commitments to lease liabilities in millions of EUR Operating lease commitments disclosed as of December 31, 2018 756 Discounted using the lessee’s incremental borrowing rate at the date of initial application 699 Add: finance lease liabilities recognized as at December 31, 2018 330 (Less): short-term leases recognized on a straight-line basis as expense (17) Add: lease extensions considered reasonably certain 121 Lease liability recognized as of January 1, 2019 1,133 Of which are: Current lease liabilities 241 Non-current lease liabilities 892 The impact on opening retained earnings as of January 1, 2019 due to IFRS 16 adoption is as follows: Retained earnings impact of IFRS 16 adoption in millions of EUR Retained earnings as of December 31, 2018 8,266 IFRS 16 adjustments due to modified retrospective approach Asset retrospective calculation (38) Deferred tax asset impact 5 Opening balance Retained earnings as of January 1, 2019 8,233 The costs incurred during the financial year following the IFRS 16 adoption consisted of depreciation amounting to EUR 166 million, interest charges amounting to EUR 20 million and EUR 52 million for short-term and low value leases, compared to EUR 225 million of operating lease expenses booked in financial year 2018. In 2019, operating cash flows increased and financing cash flows decreased by EUR 171 million compared to the previous year as the repayment of the principal portion of the lease liabilities is now classified as cash flows from financing activities, while previously the operating lease payments were classified as cash flows from operating activities. There is no material impact on basic and diluted EPS. IFRS accounting standards to be adopted from 2020 onwards A number of amendments to existing standards have been published and are mandatory for the company beginning on or after January 1, 2020, or later periods, and the company has not early-adopted them. The changes to those standards are not expected to have a material impact on the company’s financial statements. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies [Abstract] | |
Significant accounting policies (Tables), Balance sheet impact of IFRS 16 adoption [Text Block] | Balance sheet impact of IFRS 16 adoption Balance sheet captions January 1, 2019 IFRS 16 January 1, 2019 Property, plant and equipment 1,712 760 2,472 Other current assets 469 (12) 457 Deferred tax assets 1,828 5 1,833 Shareholders' equity 12,088 (33) 12,055 Long-term debt 3,427 656 4,083 Long-term provisions 1,788 (6) 1,782 Short-term debt 1,394 147 1,541 Accrued liabilities 1,537 (11) 1,526 |
Significant accounting policies (Tables), Reconciliation of operating lease commitments to lease liabilities [Text Block] | Reconciliation of operating lease commitments to lease liabilities in millions of EUR Operating lease commitments disclosed as of December 31, 2018 756 Discounted using the lessee’s incremental borrowing rate at the date of initial application 699 Add: finance lease liabilities recognized as at December 31, 2018 330 (Less): short-term leases recognized on a straight-line basis as expense (17) Add: lease extensions considered reasonably certain 121 Lease liability recognized as of January 1, 2019 1,133 Of which are: Current lease liabilities 241 Non-current lease liabilities 892 |
Significant accounting policies (Tables), Retained earnings impact of IFRS 16 adoption [Text Block] | Retained earnings impact of IFRS 16 adoption in millions of EUR Retained earnings as of December 31, 2018 8,266 IFRS 16 adjustments due to modified retrospective approach Asset retrospective calculation (38) Deferred tax asset impact 5 Opening balance Retained earnings as of January 1, 2019 8,233 |
Information by segment and ma_2
Information by segment and main country (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Information by segment and main country [Abstract] | |
Information by segment and main country (Tables), Information on income statements [Text Block] | Philips Group Information on income statements in millions of EUR 2017 - 2019 sales sales including intercompany depreciation and amortization 1 Adjusted EBITA 2 3 2019 Diagnosis & Treatment 4 8,485 8,579 (564) 1,078 Connected Care 4,674 4,760 (327) 618 Personal Health 5,854 5,864 (186) 943 Other 469 542 (326) (76) Inter-segment eliminations (263) Philips Group 19,482 19,482 (1,402) 2,563 2018 Diagnosis & Treatment 7,726 7,825 (349) 872 Connected Care 4,341 4,516 (326) 662 Personal Health 5,524 5,538 (171) 860 Other 530 612 (244) (28) Inter-segment eliminations (369) Philips Group 18,121 18,121 (1,089) 2,366 2017 Diagnosis & Treatment 7,365 7,445 (301) 747 Connected Care 4,331 4,492 (355) 684 Personal Health 5,685 5,702 (181) 879 Other 400 535 (188) (157) Inter-segment eliminations (393) Philips Group 17,780 17,780 (1,025) 2,153 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information 3) For reconciliation Adjusted EBITA, refer to the table below. 4) In 2019 Philips’ Emerging Businesses were moved out of segment Other into segment Diagnosis & Treatment to enable these businesses with better access to downstream capabilities. While these businesses remain in (semi-)incubator phase, in 2019 they received a corporate funding out of segment Other of EUR 54 million |
Information by segment and main country (Tables), Reconciliation from net income to Adjusted EBITA [Text Block] | Philips Group Reconciliation from net income to Adjusted EBITA 1 In millions of EUR 2017 - 2019 Philips Group Diagnosis & Treatment Connected Care Personal Health Other 2019 Net Income 1,173 Discontinued operations, net of income taxes 19 Income tax expense 337 Investments in associates, net of income taxes (1) Financial expenses 233 Financial income (117) Income from operations 1,644 660 267 844 (127) Amortization of intangible assets 350 177 141 25 8 Impairment of goodwill 97 19 78 EBITA 1 2,091 856 486 869 (119) Restructuring and acquisition-related charges 318 149 64 50 54 Other items 153 73 67 23 (11) Adjusted EBITA 1 2,563 1,078 618 943 (76) 2018 Net Income 1,097 Discontinued operations, net of income taxes 213 Income tax expense 193 Investments in associates, net of income taxes 2 Financial expenses 264 Financial income (51) Income from operations 1,719 629 399 796 (105) Amortization of intangible assets 347 98 140 31 79 EBITA 1 2,066 727 539 827 (27) Restructuring and acquisition-related charges 258 146 66 15 31 Other items 41 - 56 18 (33) Adjusted EBITA 1 2,366 872 662 860 (28) 2017 Net Income 1,870 Discontinued operations, net of income taxes (843) Income tax expense 349 Investments in associates, net of income taxes 4 Financial expenses 263 Financial income (126) Income from operations 1,517 512 424 834 (252) Amortization of intangible assets 260 57 138 39 26 Impairment of goodwill 9 9 EBITA 1 1,787 568 562 873 (217) Restructuring and acquisition-related charges 316 156 91 6 64 Other items 50 22 31 (3) Adjusted EBITA 1 2,153 747 684 879 (157) 1) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Information by segment and main country (Tables), Main countries [Text Block] | Philips Group Main countries in millions of EUR 2017 - 2019 sales 1 tangible and intangible assets 2 2019 Netherlands 522 2,148 United States 6,667 9,864 China 2,707 340 Japan 1,186 550 Germany 1,087 308 France 505 46 United Kingdom 470 611 Other countries 6,338 1,119 Total main countries 19,482 14,986 2018 Netherlands 510 1,666 United States 6,050 9,493 China 2,380 353 Japan 1,045 491 Germany 1,032 263 France 519 30 South Korea 498 3 Other countries 6,087 1,506 Total main countries 18,121 13,805 2017 Netherlands 414 1,154 United States 6,084 8,408 China 2,322 959 Japan 1,059 457 Germany 1,011 270 France 530 33 India 425 100 Other countries 5,935 1,263 Total main countries 17,780 12,644 1) The sales are reported based on country of destination. 2) Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill |
Discontinued operations and a_2
Discontinued operations and assets classified as held for sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued operations and assets classified as held for sale [Abstract] | |
Discontinued operations and assets classified as held for sale (Tables), Discontinued operations, net of income taxes [Text Block] | Philips Group Discontinued operations, net of income taxes in millions of EUR 2017 - 2019 2017 2018 2019 Signify 896 (198) The combined Lumileds and Automotive businesses (29) 12 Other (24) (27) (19) Discontinued operations, net of income taxes 843 (213) (19) |
Discontinued operations and assets classified as held for sale (Tables), Results of Signify [Text Block] | Results of Signify in millions of EUR 2017 - 2018 2017 2018 Sales 6,319 Costs and expenses (5,776) (18) Result on the deconsolidation of discontinued operations 538 Fair value adjustment retained interest (104) (218) Dividend income 32 Income before tax 977 (204) Income tax expense (150) 7 Income tax on the deconsolidation of discontinued operations 61 US Tax Cuts and Jobs Act 8 Results from discontinued operations 896 (198) |
Discontinued operations and assets classified as held for sale (Tables), Results of combined Lumileds and Automotive businesses [Text Block] | Philips Group Results of combined Lumileds and Automotive businesses in millions of EUR 2017 - 2018 2017 2018 Sales 804 Costs and expenses (630) 5 Result on the sale of discontinued operations (98) 8 Income before tax 76 13 Income tax expense (25) (1) Income tax on the sale of discontinued operations 26 US Tax Cuts and Jobs Act (107) Results from discontinued operations (29) 12 |
Discontinued operations and assets classified as held for sale (Tables), Discontinued operations cash flows [Text Block] | Discontinued operations cash flows in millions of EUR 2017 - 2019 2017 2018 2019 Cash flows from operating activities 350 (15) (11) Cash flows from investing activities 856 662 (14) Cash flows from financing activities (144) Total discontinued operations cash flows 1,063 647 (25) |
Acquisitions and divestments (T
Acquisitions and divestments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and divestments [Abstract] | |
Acquisitions and divestments (Tables), Opening Balance sheet as of acquisition date [Text Block] | EPD Opening Balance sheet as of acquisition date in millions of EUR Goodwill 271 Intangible assets excluding goodwill 227 Cash 2 Accounts payable and other payables (2) Deferred tax liabilities (3) Provision for contingent consideration (245) Total assets and liabilities 250 Financed by equity (250) |
Interests in entities (Tables)
Interests in entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interests in entities [Abstract] | |
Interests in entities (Tables), Interests in group companies [Text Block] | Philips Group Interests in group companies in alphabetical order 2019 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips Medizin Systeme Böblingen GmbH Germany Philips GmbH Germany Philips Japan, Ltd. Japan Philips Electronics Nederland B.V. Netherlands Philips Consumer Lifestyle B.V. Netherlands Philips Ultrasound, Inc. United States Philips Oral Healthcare, LLC United States Philips North America LLC United States Respironics, Inc. United States |
Income from operations (Tables)
Income from operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income from operations [Abstract] | |
Income from operations (Tables), Sales and costs by nature [Text Block] | Philips Group Sales and costs by nature in millions of EUR 2017 - 2019 2017 2018 2019 Sales 17,780 18,121 19,482 Costs of materials used (4,918) (4,826) (5,321) Employee benefit expenses (5,824) (5,827) (6,307) Depreciation and amortization 1 2 (1,025) (1,089) (1,402) Shipping and handling (602) (605) (636) Advertising and promotion (939) (937) (972) Lease expense 2 3 4 (227) (225) (52) Other operational costs 5 (2,804) (2,947) (3,114) Other business income (expenses) 76 55 (34) Income from operations 1,517 1,719 1,644 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2) Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment 3) For 2019 Lease expense relating to short-term and low value leases amounts to EUR 52 million 4) Lease expense includes other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor for 2018: EUR 32 million EUR 38 million 5) Other operational costs contain items which are dissimilar in nature and individually insignificant in amount to disclose separately. These costs contain among others expenses for outsourcing services, mainly in IT and HR, 3rd party workers, consultants, warranty, patents, costs for travelling, external legal services and EUR 94 million EUR 81 million EUR 90 million |
Income from operations (Tables), Sales composition [Text Block] | Philips Group Sales composition in millions of EUR 2017 - 2019 2017 2018 2019 Goods 13,974 13,973 14,810 Services 3,477 3,325 3,811 Royalties 329 402 381 Total sales from contracts with customers 17,780 17,700 19,003 Other sources 1 421 479 Sales 17,780 18,121 19,482 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million EUR 273 million |
Income from operations (Tables), Disaggregation of Sale per segment [Text Block] | Philips Group Disaggregation of Sale per segment in millions of EUR 2019 2019 Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Diagnosis & Treatment 5,428 2,988 8,417 68 8,485 Connected Care 3,545 718 4,263 411 4,674 Personal Health 5,848 6 5,854 - 5,854 Other 162 308 469 - 469 Philips Group 14,982 4,021 19,003 479 19,482 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sale per segment in millions of EUR 2017-2018 2017 2018 Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Diagnosis & Treatment 7,365 5,034 2,631 7,665 61 7,726 Connected Care 4,331 3,351 630 3,981 360 4,341 Personal Health 5,685 5,519 5 5,524 - 5,524 Other 400 282 249 530 - 530 Philips Group 17,780 14,186 3,514 17,700 421 18,121 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Income from operations (Tables), Disaggregation of Sales per geographical cluster [Text Block] | Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2019 2019 Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Western Europe 3,165 931 4,096 38 4,134 North America 4,944 1,894 6,837 114 6,951 Other mature geographies 1,226 357 1,583 322 1,905 Total mature geographies 9,335 3,181 12,515 474 12,990 Growth geographies 5,647 840 6,488 5 6,492 Sales 14,982 4,021 19,003 479 19,482 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2017 - 2018 2017 2018 Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Western Europe 3,802 3,174 780 3,955 35 3,990 North America 6,409 4,542 1,696 6,238 100 6,338 Other mature geographies 1,707 1,270 339 1,609 283 1,892 Total mature geographies 11,918 8,987 2,815 11,802 418 12,221 Growth geographies 5,862 5,199 700 5,898 2 5,901 Sales 17,780 14,186 3,514 17,700 421 18,121 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Income from operations (Tables), Employee benefit expenses [Text Block] | Philips Group Employee benefit expenses in millions of EUR 2017 - 2019 2017 2018 2019 Salaries and wages 1 4,856 4,849 5,251 Post-employment benefits costs 347 351 379 Other social security and similar charges: - Required by law 514 524 564 - Voluntary 108 103 112 Employee benefit expenses 5,824 5,827 6,307 1) Salaries and wages includes EUR 105 million EUR 102 million EUR 122 million |
Income from operations (Tables), Employees [Text Block] | Philips Group Employees in FTEs 2017 - 2019 2017 2018 2019 Production 27,697 30,774 35,640 Research & development 9,787 10,700 12,287 Other 26,314 26,175 24,301 Employees 63,798 67,649 72,228 3rd party workers 8,098 7,239 6,164 Continuing operations 71,895 74,888 78,392 Discontinued operations 43,497 Philips Group 115,392 74,888 78,392 |
Income from operations (Tables), Employees per geographical location [Text Block] | Philips Group Employees per geographical location in FTEs 2017 - 2019 2017 2018 2019 Netherlands 11,308 11,427 11,679 Other countries 60,587 63,460 66,713 Continuing operations 71,895 74,888 78,392 Discontinued operations 43,497 Philips Group 115,392 74,888 78,392 |
Income from operations (Tables), Depreciation and amortization [Text Block] | Philips Group Depreciation and amortization 1 2 in millions of EUR 2017 - 2019 2017 2018 2019 Depreciation of property, plant and equipment 437 438 645 Amortization of software 50 64 75 Amortization of other intangible assets 260 347 350 Amortization of development costs 277 240 332 Depreciation and amortization 1,025 1,089 1,402 1) Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment 2) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations (Tables), Agreed fees [Text Block] | Philips Group Agreed fees 2017 - 2019 2017 2018 2019 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 9.0 8.9 17.9 7.2 5.0 12.2 8.4 6.0 14.4 -consolidated financial statements 9.0 4.4 13.4 7.2 2.4 9.6 8.4 3.4 11.8 -statutory financial statements 4.5 4.5 2.6 2.6 2.6 2.6 Audit-related fees 2 0.8 0.7 1.5 0.6 0.4 1.0 0.5 0.2 0.7 -Sustainability assurance 0.7 0.7 0.4 0.4 0.4 0.4 -Other 0.1 0.7 0.8 0.2 0.4 0.6 0.1 0.2 0.3 Fees 9.7 9.6 19.4 7.8 5.4 13.2 8.9 6.2 15.1 1) Ernst & Young Accountants LLP 2) Also known as Assurance fees |
Income from operations (Tables), Other business income (expenses) [Text Block] | Philips Group Other business income (expenses) in millions of EUR 2017 - 2019 2017 2018 2019 Result on disposal of businesses: - income 15 45 69 - expense (5) - (2) Result on disposal of fixed assets: - income 96 20 5 - expense (1) (1) - Result on other remaining businesses: - income 41 23 81 - expense (62) (32) (88) Impairment of goodwill 1 (9) (97) Other business income (expense) 76 55 (34) Total other business income 152 88 155 Total other business expense (76) (33) (188) 1) Further information on goodwill movement can be found in Goodwill |
Financial income and expenses (
Financial income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial income and expenses [Abstract] | |
Financial income and expenses (Tables), Financial income and expenses [Text Block] | Philips Group Financial income and expenses in millions of EUR 2017 - 2019 2017 2018 2019 Interest income 40 31 27 Interest income from loans and receivables 1 12 8 10 Interest income from cash and cash equivalents 28 22 17 Dividend income from financial assets 64 2 52 Net gains from disposal of financial assets 1 6 2 Net change in fair value of financial assets at fair value through profit or loss 7 17 Other financial income 14 12 17 Financial income 126 51 117 Interest expense (222) (188) (196) Interest on debt and borrowings (177) (158) (167) Finance charges under lease contract (8) (7) (6) Interest expenses - pensions (37) (23) (22) Provision-related accretion and interest (22) (15) (22) Net foreign exchange losses (2) (2) (2) Impairment loss of financial assets (2) - - Net change in fair value of financial assets at fair value through profit or loss (1) Other financial expenses (15) (58) (13) Financial expense (263) (264) (233) Financial income and expenses (137) (213) (117) 1) Interest income from net investments in finance leases amounts to EUR 4 million |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes [Abstract] | |
Income taxes (Tables), Income tax expense [Text Block] | Philips Group Income tax expense in millions of EUR 2017 - 2019 2017 2018 2019 Netherlands 929 636 784 Foreign 451 869 744 Income before taxes of continuing operations 1 1,381 1,505 1,528 Netherlands: Current tax (expense) benefit (15) (25) (26) Deferred tax (expense) benefit (150) 16 (71) Total tax (expense) benefit of continuing operations (Netherlands) (165) (9) (97) Foreign: Current tax (expense) benefit (258) (289) (297) Deferred tax (expense) benefit 73 105 57 Total tax (expense) benefit of continuing operations (foreign) (184) (184) (240) Income tax expense of continuing operations (349) (193) (337) 1) Income before tax excludes the result of investments in associates. |
Income taxes (Tables), Current income tax expense [Text Block] | Philips Group Current income tax expense in millions of EUR 2017 - 2019 2017 2018 2019 Current year tax (expense) benefit (275) (318) (322) Prior year tax (expense) benefit 3 4 (2) Current tax (expense) (272) (314) (324) |
Income taxes (Tables), Deferred income tax expense [Text Block] | Philips Group Deferred income tax expense In millions of EUR 2017 - 2019 2017 2018 2019 Changes to recognition of tax loss and credit carry forwards 23 (2) 59 Changes to recognition of temporary differences 35 4 (32) Prior year tax (expense) benefit 6 15 (7) Tax rate changes (72) (26) 2 Origination and reversal of temporary differences, tax losses and tax credits (69) 130 (35) Deferred tax (expense) benefit (77) 121 (13) |
Income taxes (Tables), Effective income tax rate [Text Block] | Philips Group Effective income tax rate in % 2017 - 2019 2017 2018 2019 Weighted average statutory income tax rate in % 24.5 24.9 25.2 Recognition of previously unrecognized tax loss and credit carryforwards (2.3) (0.4) (3.9) Unrecognized tax loss and credit carryforwards 0.6 0.5 0.1 Changes to recognition of temporary differences (2.6) (0.3) 2.1 Non-taxable income and tax incentives (9.8) (11.9) (9.5) Non-deductible expenses 6.4 3.7 5.3 Withholding and other taxes 4 4.5 3.7 Tax rate changes 5.2 1.8 (0.1) Prior year tax (0.6) (1.3) 0.6 Tax expenses (benefit) due to other tax liabilities (1.7) (8.6) (1.6) Others, net 1.5 (0.1) 0.2 Effective income tax rate 25.3 12.8 22.1 |
Income taxes (Tables), Deferred tax assets and liabilities [Text Block] | Philips Group Deferred tax assets and liabilities in millions of EUR 2019 Balance as of January 1, 2019 recognized in income statement other 1 Balance as of December 31, 2019 Assets Liabilities Intangible assets (162) 317 (23) 132 280 (148) Property, plant and equipment 12 38 8 58 67 (9) Inventories 257 (6) 1 252 259 (7) Other assets 50 (15) 21 56 90 (33) Pensions and other employee benefits 267 4 (1) 269 270 (1) Other liabilities 428 (119) 25 334 436 (102) Deferred tax assets on tax loss carryforwards 824 (231) 27 620 620 Set-off deferred tax positions (156) 156 Net deferred tax assets 1,676 (13) 59 1,721 1,865 (143) 1) Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation differences, acquisitions and divestments. Philips Group Deferred tax assets and liabilities in millions of EUR 2018 Balance as of January 1, 2018 recognized in income statement other 1 Balance as of December 31, 2018 Assets Liabilities Intangible assets (383) 299 (78) (162) 90 (252) Property, plant and equipment 23 (13) 2 12 32 (20) Inventories 231 18 8 257 265 (8) Other assets 74 (38) 15 50 77 (27) Pensions and other employee benefits 265 (17) 19 267 269 (2) Other liabilities 536 (137) 30 428 537 (109) Deferred tax assets on tax loss carryforwards 819 11 (6) 824 824 Set-off deferred tax positions (265) 265 Net deferred tax assets 1,565 121 (10) 1,676 1,828 (152) 1) Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation differences, acquisitions and divestments. |
Income taxes (Tables), Expiry years of net operating loss and credit carryforwards [Text Block] | Philips Group Expiry years of net operating loss and credit carryforwards in millions of EUR Total Balance as of December 31, 2018 Unrecognized balance as of December 31, 2018 Total Balance as of December 31, 2019 Unrecognized balance as of December 31, 2019 Within 1 year 2 1 3 0 1 to 2 years 3 1 6 3 2 to 3 years 16 4 1,680 1,679 3 to 4 years 1,911 1,906 14 7 4 to 5 years 18 6 519 3 Later 2,312 36 1,173 12 Unlimited 1,728 1,123 1,746 1,123 Total 5,990 3,077 5,141 2,826 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Earnings per share (Tables), Earnings per share [Text Block] | Philips Group Earnings per share in millions of EUR unless otherwise stated 1 2017 - 2019 2017 2018 2019 Income from continuing operations 1,028 1,310 1,192 Income (loss) attributable to non-controlling interest, from continuing operations 11 7 5 Income from continuing operations attributable to shareholders 1,017 1,303 1,186 Income from Discontinued operations 843 (213) (19) Income (loss) attributable to non-controlling interest, from Discontinued operations 203 Income from Discontinued operations attributable to shareholders 639 (213) (19) Net income attributable to shareholders 1,657 1,090 1,167 Weighted average number of common shares outstanding (after deduction of treasury shares) during the year 928,797,650 922,987,190 902,981,911 Plus incremental shares from assumed conversions of: Options 3,161,267 2,007,703 1,288,001 Performance shares 10,757,785 8,632,652 5,896,049 Restricted share rights 2,008,162 2,223,382 2,524,606 Forward contracts 407,193 Dilutive potential common shares 16,334,406 12,863,738 9,708,656 Diluted weighted average number of shares (after deduction of treasury shares) during the year 945,132,056 935,850,928 912,690,567 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 1.10 1.41 1.31 Income from Discontinued operations attributable to shareholders 0.69 (0.23) (0.02) Net income attributable to shareholders 1.78 1.18 1.29 Diluted earnings per common share in EUR 2 Income from continuing operations attributable to shareholders 1.08 1.39 1.30 Income from Discontinued operations attributable to shareholders 0.68 (0.23) (0.02) Net income attributable to shareholders 1.75 1.16 1.28 Dividend distributed per common share in euros 0.80 0.80 0.85 1) Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 2) The dilutive potential common shares are not taken into account in the periods for which there is a loss, as the effect would be antidilutive |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment (Tables), Property, plant and equipment [Text Block] | Philips Group Property, plant and equipment in millions of EUR 2019 land and buildings machinery and installations other equipment prepayments and construction in progress total owned right-of-use owned right-of-use owned right-of-use owned right-of-use owned right-of-use Balance as of December 31, 2018 621 504 383 203 1,712 IFRS 16 adjustment (80) 769 (209) 209 (45) 116 (334) 1,094 Balance as of January 1, 2019 Cost 1,069 813 1,253 415 1,442 152 203 3,967 1,381 Accumulated depreciation (528) (44) (958) (206) (1,104) (36) (2,590) (286) Book value 541 769 295 209 338 116 203 1,378 1,094 Change in book value: Capital expenditures/additions 5 373 34 96 40 59 425 3 505 532 Assets available for use 51 6 108 138 4 (306) (3) (9) 7 Acquisitions - 27 1 28 Depreciation (30) (157) (123) (80) (157) (57) (310) (293) Impairments (17) (1) (14) (1) (9) (1) - - (40) (2) Reclassifications (74) 47 5 (30) 20 1 1 (99) 68 Translations differences and other 4 (9) 9 18 (14) - - 31 (23) Total changes (61) 260 19 16 26 11 120 1 105 289 Balance as of December 31, 2019 Cost 876 1,355 1,272 510 1,548 233 323 1 4,019 2,099 Accumulated depreciation (395) (326) (957) (285) (1,184) (105) (2,536) (716) Book value 481 1,029 314 225 365 127 323 1 1,483 1,383 Philips Group Property, plant and equipment in millions of EUR 2018 land and buildings machinery and installations other equipment prepayments and construction in progress total Balance as of January 1, 2018 Cost 1,111 1,708 1,449 140 4,408 Accumulated depreciation (527) (1,217) (1,074) (2,818) Book value 584 491 376 140 1,591 Change in book value: Capital expenditures 20 126 64 337 546 Assets available for use 68 99 108 (275) - Acquisitions - (5) 7 2 Depreciation (56) (191) (162) (409) Impairments (5) (13) (12) (30) Translations differences and other 11 (2) 4 13 Total changes 37 13 7 63 121 Balance as of December 31, 2018 Cost 1,193 1,669 1,523 203 4,588 Accumulated depreciation (572) (1,164) (1,140) (2,876) Book value 621 504 383 203 1,712 |
Property, plant and equipment (Tables), Useful lives of property, plant and equipment [Text Block] | Philips Group Useful lives of property, plant and equipment in years Buildings from 5 to 50 years Machinery and installations from 3 to 20 years Other equipment from 1 to 10 years |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
Goodwill (Tables), Goodwill [Text Block] | Philips Group Goodwill in millions EUR 2018 - 2019 2018 2019 Balance as of January 1: Cost 9,074 9,908 Impairments (1,343) (1,405) Book value 7,731 8,503 Changes in book value: Acquisitions 465 83 Impairments (97) Divestments and transfers to assets classified as held for sale (3) - Translation differences and other 310 165 Balance as of December 31: Cost 9,908 10,182 Impairments (1,405) (1,528) Book value 8,503 8,654 |
Goodwill (Tables), Goodwill allocated to the cash-generating units [Text Block] | Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2018 - 2019 2018 2019 Image-Guided Therapy 2,357 2,673 Monitoring & Analytics 1,354 1,360 Sleep & Respiratory Care 1,925 2,071 Other (units carrying a non-significant goodwill balance) 2,867 2,550 Book value 8,503 8,654 |
Goodwill (Tables), Key assumptions [Text Block] | Philips Group Key assumptions in % 2019 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 9.3 6.4 2.5 8.8 Monitoring & Analytics 4.6 3.8 2.5 10.1 Sleep & Respiratory Care 8.1 4.8 2.5 9.7 1) Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2) Also referred to later in the text as compound long-term sales growth rate 3) The historical long-term growth rate is only applied to the first year after the 4 year extrapolation period, after which no further growth is assumed for the terminal value calculation Philips Group Key assumptions in % 2018 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 8.1 5.2 2.3 9.3 Patient Care & Monitoring Solutions 6.5 4.0 2.3 9.9 Sleep & Respiratory Care 8.4 4.8 2.3 10.6 1) Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2) Also referred to later in the text as compound long-term sales growth rate 3) The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation |
Intangible assets excluding g_2
Intangible assets excluding goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets excluding goodwill [Abstract] | |
Intangible assets excluding goodwill (Tables), Intangible assets excluding goodwill [Text Block] | Philips Group Intangible assets excluding goodwill in millions of EUR 2019 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2019 Cost 689 2,421 2,400 2,103 532 684 168 8,997 Amortization/ impairments (484) (1,488) (1,330) (1,483) (51) (480) (93) (5,408) Book value 205 934 1,070 621 481 204 75 3,589 Changes in book value: Additions - 28 (1) 338 129 4 497 Assets available for use 296 (296) - 1 Acquisitions 3 56 24 - (5) 77 Amortization (31) (119) (127) (229) (75) (6) (587) Impairments - - (66) (96) (8) - (171) Translation differences and other 7 20 32 - 8 - (9) 59 Total changes (21) (44) (110) (29) 41 54 (16) (124) Balance as of December 31, 2019 Cost 709 2,476 2,491 2,387 578 784 154 9,579 Amortization/ impairments (524) (1,587) (1,530) (1,795) (56) (527) (94) (6,113) Book Value 184 890 961 592 523 257 59 3,466 Philips Intangible assets excluding goodwill in millions of EUR 2018 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2018 Cost 670 2,342 1,985 1,848 487 605 105 8,042 Amortization/ impairments (392) (1,338) (1,161) (1,262) (51) (431) (84) (4,720) Book value 278 1,004 824 586 436 174 21 3,322 Changes in book value: Additions 7 14 295 92 1 408 Assets available for use 256 (256) Acquisitions 11 17 330 0 56 415 Amortization (34) (114) (116) (221) (59) (4) (549) Impairments (52) (16) (9) (16) (1) (5) (2) (101) Translation differences 3 36 27 15 8 2 3 94 Total changes (72) (70) 246 34 45 30 53 267 Balance as of December 31, 2018 Cost 689 2,421 2,400 2,103 532 684 168 8,997 Accumulated amortization (484) (1,488) (1,330) (1,483) (51) (480) (93) (5,408) Book Value 205 934 1,070 621 481 204 75 3,589 |
Intangible assets excluding goodwill (Tables), Expected useful lives of intangible assets excluding goodwill [Text Block] | Philips Group Expected useful lives of intangible assets excluding goodwill in years Brand names 2-20 Customer relationships 2-25 Technology 3-20 Other 1-10 Software 1-10 Product development 3-7 |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other financial assets [Abstract] | |
Other financial assets (Tables), Other non-current financial assets [Text Block] | Philips Group Other non-current financial assets in millions of EUR 2019 Non-current financial assets at FVTP&L Non-current financial assets at FVTOCI Non-current financial assets at Amortized cost Total Balance as of January 1, 2019 116 198 46 360 Changes: Acquisitions/additions 48 15 11 75 Sales/redemptions/reductions (48) (109) (17) (174) Value adjustment through OCI - (33) - (33) Value adjustment through P&L 18 - - 18 Translation differences and other 1 2 - 3 Reclassifications 1 (1) (1) (1) Balance as of December 31, 2019 136 72 40 248 Philips Group Other non-current financial assets in millions of EUR 2018 Non-current financial assets at FVTP&L Non-current financial assets at FVTOCI Non-current financial assets at Amortized cost Total Balance as of January 1, 2018 104 369 114 587 Changes: Acquisitions/additions 30 1 14 45 Sales/redemptions/reductions (20) (18) (78) (116) Value adjustment through OCI - (164) (164) Value adjustment through P&L (2) - (1) Translation differences and other 2 12 (4) 10 Reclassifications 2 (2) - - Balance as of December 31, 2018 116 198 46 360 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Inventories (Tables), Inventories [Text Block] | Philips Group Inventories in millions of EUR 2018 - 2019 2018 2019 Raw materials and supplies 876 901 Work in process 366 403 Finished goods 1,432 1,469 Inventories 2,674 2,773 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Receivables (Tables), Accounts receivables-net [Text Block] | Philips Group Accounts receivables-net in millions of EUR 2018 - 2019 2018 2019 Diagnosis & Treatment 1,738 1,905 Connected Care 1,020 1,089 Personal Health 995 1,122 Other 53 163 Accounts receivable-net 3,805 4,280 |
Receivables (Tables), Aging analysis [Text Block] | Philips Group Aging analysis in millions of EUR 2018 - 2019 2018 2019 current 3,222 3,591 overdue 1-30 days 228 251 overdue 31-180 days 270 333 overdue > 180 days 85 105 Accounts receivable-net 3,805 4,280 |
Receivables (Tables), Allowance for accounts receivable [Text Block] | Philips Group Allowance for accounts receivable in millions of EUR 2018 - 2019 2018 2019 Balance as of January 1 215 194 Additions charged to expense 28 23 Deductions from allowance 1 (28) (9) Transfer to assets held for sale Other movements (21) 3 Balance as of December 31 194 211 1) Write-offs for which an allowance was previously provided. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [abstract] | |
Equity (Tables), Outstanding number of shares [Text Block] | Philips Group Outstanding number of shares 2017 - 2019 2017 2018 2019 Balance as of January 1 922,436,563 926,191,723 914,184,087 Dividend distributed 11,264,163 9,533,223 9,079,538 Purchase of treasury shares (19,841,595) (31,993,879) (40,390,495) Re-issuance of treasury shares 12,332,592 10,453,020 8,100,660 Balance as of December 31 926,191,723 914,184,087 890,973,790 |
Equity (Tables), Employee option and share plan transactions [Text Block] | Philips Group Employee option and share plan transactions 2017 - 2019 2017 2018 2019 Shares acquired 15,222,662 8,226,101 5,497,675 Average market price EUR 31.81 EUR 32.59 EUR 34.25 Amount paid EUR 484 million EUR 268 million EUR 188 million Shares delivered 12,332,592 10,453,020 8,100,660 Average price (FIFO) EUR 27.07 EUR 32.66 EUR 32.87 Cost of delivered shares EUR 334 million EUR 341 million EUR 266 million Total shares in treasury at year-end 10,098,371 7,871,452 5,268,467 Total cost EUR 331 million EUR 258 million EUR 180 million |
Equity (Tables), Share capital transactions [Text Block] | Philips Group Share capital transactions 2017 - 2019 2017 2018 2019 Shares acquired 4,618,933 23,767,778 34,892,820 Average market price EUR 32.47 EUR 32.58 EUR 34.29 Amount paid EUR 150 million EUR 774 million EUR 1,196 million Cancellation of treasury shares (shares) 24,246,711 38,541,356 Cancellation of treasury shares (EUR) EUR 783 million EUR 1,316 million Total shares in treasury at year-end 4,618,933 4,140,000 491,464 Total cost EUR 150 million EUR 141 million EUR 22 million |
Equity (Tables), Composition of net debt and group equity [Text Block] | Philips Group Composition of net debt and group equity 1 in millions of EUR unless otherwise stated 2017 - 2019 2017 2018 2019 Long-term debt 4,044 3,427 4,939 Short-term debt 672 1,394 508 Total debt 4,715 4,821 5,447 Cash and cash equivalents 1,939 1,688 1,425 Net debt 1 2,776 3,132 4,022 Shareholders' equity 11,999 12,088 12,597 Non-controlling interests 24 29 28 Group equity 12,023 12,117 12,625 Net debt and group equity ratio 1 19:81 21:79 24:76 1) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Equity (Tables), Adjusted income from continuing operations attributable to shareholders [Text Block] | Philips Group Adjusted income from continuing operations attributable to shareholders 1 2 2018-2019 2018 2019 Net income 1,097 1,173 Discontinued operations, net of income taxes 213 19 Income from continuing operations 1,310 1,192 Continuing operations non-controlling interests (7) (5) Income from continuing operations attributable to shareholders 1 2 1,303 1,186 Adjustments for: Amortization of acquired intangible assets 347 350 Impairment of goodwill 97 Restructuring costs and acquisition-related charges 258 318 Other items 41 153 Net finance expenses 57 14 Tax impact of adjusted items (365) (280) Adjusted Income from continuing operations attributable to shareholders 1 2 1,643 1,839 1) Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information 2) Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt [Abstract] | |
Debt (Tables), Long-term debt [Text Block] | Philips Group Long-term debt in millions of EUR unless otherwise stated 2019 amount outstanding in 2019 Current portion Non-current portion Between 1 and 5 years amount due after 5 years average remaining term (in years) average rate of interest USD bonds 1,328 1,328 1,328 17.1 6.3% EUR bonds 2,234 2,234 995 1,239 5.8 0.8% Forward contracts 188 126 62 62 1.2 Lease liability 1,381 272 1,109 618 491 4.3 2.4% Bank borrowings 206 1 205 5 200 5.1 0.3% Other long-term debt 17 17 1.0 1.8% Long-term debt 5,355 416 4,939 1,681 3,258 8.0 2.5% Philips Group Long-term debt in millions of EUR unless otherwise stated 2018 amount outstanding in 2018 Current portion Non-current portion Between 1 and 5 years amount due after 5 years average remaining term (in years) average rate of interest USD bonds 1,303 1,303 1,303 18.1 6.3% EUR bonds 1,988 500 1,488 497 991 5.0 0.7% Forward contracts 807 618 188 188 0.8 Finance leases 330 94 236 190 46 3.6 2.9% Bank borrowings 211 211 6 205 6.2 0.3% Other long-term debt 18 18 - - - 1.1 1.6% Long-term debt 4,657 1,230 3,427 882 2,545 7.9 2.3% |
Debt (Tables), Unsecured Bonds [Text Block] | Philips Group Unsecured Bonds in millions of EUR unless otherwise stated 2018 - 2019 effective rate 2018 2019 Unsecured EUR Bonds Due 9/06/2023; 1/2% 0.634% 500 500 Due 9/06/2019; 3M Euribor +20bps 500 Due 5/02/2024; 3/4% 0.861% 500 500 Due 22/05/2026; 1/2% 0.608% 750 Due 5/02/2028; 1 3/8% 1.523% 500 500 Unsecured USD Bonds Due 5/15/2025; 7 3/4% 7.429% 55 56 Due 6/01/2026; 7 1/5% 6.885% 119 122 Due 5/15/2025; 7 1/8% 6.794% 74 75 Due 11/03/2038; 6 7/8% 7.210% 636 648 Due 3/15/2042; 5% 5.273% 438 446 Adjustments 1 (31) (35) Unsecured Bonds 3,291 3,562 1) Adjustments related to both EUR and USD bonds and concern bond discounts, premium and transaction costs. |
Debt (Tables), Lease liabilities [Text Block] | Philips Group Lease liabilities in millions of EUR 2018 - 2019 2018 2019 future minimum lease payments interest present value of minimum lease payments future minimum lease payments interest present value of minimum lease payments Less than one year 100 6 94 292 20 272 Between one and five years 206 16 190 698 80 618 More than five years 52 6 46 543 52 491 Lease liability 357 28 330 1,533 152 1,381 |
Debt (Tables), Short-term debt [Text Block] | Philips Group Short-term debt in millions of EUR 2018 - 2019 2018 2019 Short-term bank borrowings 76 92 Forward contracts 88 Current portion of long-term debt 1,230 416 Short-term debt 1,394 508 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Provisions (Tables), Provisions [Text Block] | Philips Group Provisions in millions of EUR 2018 - 2019 2018 2019 long-term short-term total long-term short-term total Post-employment benefit (see note 20) 835 835 824 824 Product warranty 37 153 190 38 172 210 Environmental provisions 124 20 144 145 25 170 Restructuring-related provisions 45 68 114 31 125 156 Litigation provisions 17 9 26 14 40 55 Contingent consideration provisions 385 24 409 245 108 354 Other provisions 345 88 432 305 86 392 Provisions 1,788 363 2,151 1,603 556 2,159 |
Provisions (Tables), Provisions for assurance-type product warranty [Text Block] | Philips Group Provisions for assurance-type product warranty in millions of EUR 2017 - 2019 2017 2018 2019 Balance as of January 1 259 201 190 Changes: Additions 283 248 291 Utilizations (270) (261) (274) Transfer to liabilities directly associated with assets held for sale (56) Translation differences and other (16) 2 3 Balance as of December 31 201 190 210 |
Provisions (Tables), Environmental provisions [Text Block] | Philips Group Environmental provisions in millions of EUR 2017 - 2019 2017 2018 2019 Balance as of January 1 321 160 144 Changes: Additions 18 23 20 Utilizations (21) (15) (18) Releases (8) (4) (1) Changes in discount rate 11 (28) 9 Accretion 6 5 5 Transfer to liabilities directly associated with assets held for sale (146) Translation differences and other (20) 4 12 Balance as of December 31 160 144 170 |
Provisions (Tables), Restructuring-related provisions [Text Block] | Philips Group Restructuring-related provisions in millions of EUR 2019 Jan. 1, 2019 additions utilizations releases other changes Dec. 31, 2019 Diagnosis & Treatment 57 51 (37) (10) - 61 Connected Care 22 33 (16) (9) (2) 28 Personal Health 9 33 (12) (4) - 25 Other 26 57 (31) (11) - 42 Philips Group 114 175 (97) (34) (1) 156 Philips Group Restructuring-related provisions in millions of EUR 2017 Jan. 1, 2017 additions utilizations releases other changes 1 Dec. 31, 2017 Diagnosis & Treatment 16 54 (19) (5) (1) 45 Connected Care 11 24 (12) (7) (1) 15 Personal Health 4 12 (4) (5) (1) 6 Other 37 52 (27) (16) (1) 45 Lighting (now Signify) 133 9 (35) (3) (104) Philips Group 201 150 (96) (37) (107) 112 1) Other changes primarily relate to translation differences and transfers between segments |
Provisions (Tables), Restructuring-related provision [Text Block] | Philips Group Restructuring-related provision in millions of EUR 2018 Jan. 1, 2018 additions utilizations releases Dec. 31, 2018 Diagnosis & Treatment 45 62 (38) (12) 57 Connected Care 15 24 (10) (8) 22 Personal Health 6 8 (5) (1) 9 Other 45 42 (45) (16) 26 Philips Group 112 136 (98) (37) 114 |
Provisions (Tables), Litigation provisions [Text Block] | Philips Group Litigation provisions in millions of EUR 2017 - 2019 2017 2018 2019 Balance as of January 1 96 50 26 Changes: Additions 40 17 69 Utilizations (52) (29) (36) Releases (11) (11) (6) Accretion 3 2 2 Transfer to liabilities directly associated with assets held for sale (21) Translation differences and other (5) (3) - Balance as of December 31 50 26 55 |
Provisions (Tables), Contingent consideration provisions [Text Block] | Philips Group Contingent consideration provisions in millions of EUR 2017-2019 2017 2018 2019 Balance as of January 1 11 66 409 Changes: Additions - 6 32 Utilizations - (48) (44) Releases (2) (1) (68) Accretion 2 12 14 Acquisitions 62 366 6 Translation differences and other (8) 9 4 Balance as of December 31 66 409 354 |
Provisions (Tables), Other provisions [Text Block] | Philips Group Other provisions in millions of EUR 2017 - 2019 2017 2018 2019 Closing balance as of December 31 720 499 432 IFRS 16 adjustment (6) Opening balance as of January 1 720 499 426 Changes: Additions 304 169 143 Utilizations (238) (178) (127) Releases (87) (57) (61) Accretion (2) 2 1 Transferred to liabilities directly associated with assets held for sale (156) Translation differences and other (43) (3) 10 Balance as of December 31 499 432 392 |
Post-employment benefits (Table
Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Post-employment benefits [Abstract] | |
Post-employment benefits (Tables), Post-employment benefits [Text Block] | Philips Group Post-employment benefits 2018-2019 United States Germany Other Countries Total 2018 2019 2018 2019 2018 2019 2018 2019 Present value of funded DBO (1,616) (1,738) (564) (630) (208) (317) (2,388) (2,684) Present value of unfunded DBO (132) (148) (330) (351) (149) (166) (610) (666) Total present value of DBO (1,747) (1,886) (894) (981) (357) (484) (2,998) (3,350) Fair value of plan assets 1,497 1,743 493 524 175 259 2,164 2,526 Net balance sheet position (251) (143) (401) (457) (182) (224) (834) (824) |
Post-employment benefits (Tables), Pre-tax costs for post-employment benefits [Text Block] | Philips Group Pre-tax costs for post-employment benefits in millions of EUR 2017 - 2019 2017 2018 2019 Defined-benefit plans 95 46 56 - included in income from operations 32 23 34 - included in financial expense 37 23 22 - included in Discontinued operations 26 Defined-contribution plans 397 327 346 - included in income from operations 315 327 346 - included in Discontinued operations 82 Post-employment benefits costs 492 374 401 |
Post-employment benefits (Tables), Defined-benefit obligations [Text Block] | Philips Group Defined-benefit obligations in millions of EUR 2018 - 2019 2018 2019 Balance as of January 1 3,109 2,998 Service cost 27 36 Interest cost 85 99 Employee contributions 4 12 Actuarial (gains) / losses – demographic assumptions 4 (52) – financial assumptions (131) 304 – experience adjustment 5 29 (Negative) past service cost (6) - Settlements - (5) Benefits paid from plan (152) (159) Benefits paid directly by employer (42) (41) Translation differences and other 94 130 Balance as of December 31 2,998 3,350 |
Post-employment benefits (Tables), Plan assets [Text Block] | Philips Group Plan assets in millions of EUR 2018 - 2019 2018 2019 Balance as of January 1 2,137 2,164 Interest income on plan assets 62 77 Admin expenses paid (1) (1) Return on plan assets excluding interest income (129) 305 Employee contributions 4 12 Employer contributions 159 28 Settlements (0) (1) Benefits paid from plan (152) (159) Translation differences and other 83 103 Balance as of December 31 2,164 2,526 |
Post-employment benefits (Tables), Plan assets allocation [Text Block] | Philips Group Plan assets allocation in millions of EUR 2018 - 2019 2018 2019 Assets quoted in active markets - Debt securities 1,294 1,476 - Equity securities - Other 161 209 Assets not quoted in active markets - Debt securities 12 9 - Equity securities 368 473 - Other 329 359 Total assets 2,164 2,526 |
Post-employment benefits (Tables), Assumptions used for defined-benefit obligations in the United States, Germany and the rest of the world [Text Block] | Philips Group Assumptions used for defined-benefit obligations in the United States, Germany and the rest of the world 2018-2019 US Germany Other Total 2018 2019 2018 2019 2018 2019 2018 2019 Discount rate 4.2% 3.1% 1.5% 0.8% 2.7% 2.6% 3.2% 2.4% Inflation rate 2.3% 2.0% 1.8% 1.8% 1.6% 1.9% 2.1% 1.9% Salary increase 0.0% 0.0% 2.5% 2.5% 2.6% 2.8% 2.4% 2.6% |
Post-employment benefits (Tables), Sensitivity of key assumptions [Text Block] | Philips Group Sensitivity of key assumptions in millions of EUR 2018-2019 2018 2019 Increase Discount rate (1% movement) (298) (340) Inflation rate (1% movement) 97 113 Salary increase (1% movement) 21 23 Longevity 1 65 90 Decrease Discount rate (1% movement) 367 401 Inflation rate (1% movement) (89) (107) Salary increase (1% movement) (20) (22) 1) The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on the DBO of a further 10% 10% 0.5 1 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued liabilities [Abstract] | |
Accrued liabilities (Tables), Accrued liabilities [Text Block] | Philips Group Accrued liabilities in millions of EUR 2018 - 2019 2018 2019 Personnel-related costs: - Salaries and wages 530 554 - Accrued holiday entitlements 111 118 - Other personnel-related costs 73 66 Fixed-asset-related costs: - Gas, water, electricity, rent and other 36 24 Communication and IT costs 55 48 Distribution costs 78 115 Sales-related costs: - Commission payable 6 8 - Advertising and marketing-related costs 179 186 - Other sales-related costs 28 25 Material-related costs 112 106 Interest-related accruals 36 38 Other accrued liabilities 293 343 Accrued liabilities 1,537 1,632 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other liabilities [Abstract] | |
Other liabilities (Tables), Other current liabilities [Text Block] | Philips Group Other current liabilities in millions of EUR 2018 - 2019 2018 2019 Accrued customer rebates that cannot be offset with accounts receivables for those customers 422 427 Other taxes including social security premiums 178 241 Other liabilities 137 188 Other current liabilities 737 856 |
Cash flow statement supplemen_2
Cash flow statement supplementary information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash flow statement supplementary information [Abstract] | |
Cash flow statement supplementary information (Tables), Reconciliation of liabilities arising from financing activities [Text Block] | Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2018 - 2019 Balance as of Dec. 31, 2018 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2019 Long term debt 2 4,657 86 37 575 5,355 USD bonds 1,303 25 1,328 EUR bonds 1,988 244 2 2,234 Bank borrowings 211 (5) 206 Other long-term debt 18 (1) 17 Leases 330 (152) 12 132 322 IFRS 16 new lease recognition 1,059 1,059 Forward contracts 3 807 (618) 188 Short term debt 2 164 23 (7) (88) 92 Short-term bank borrowings 76 23 (7) 92 Other short-term loans Forward contracts 3 88 (88) Equity (1,293) (1,774) 2,677 (390) Dividend payable (456) 456 Forward contracts 3 (894) 706 (188) Treasury shares (399) (1,318) 1,516 (201) Total (1,665) 1) Besides non-cash, other includes interest paid on leases, which is part of cash flows from operating activities 2) Long-term debt includes the current portion of long-term debt, and short-term debt excludes the current portion of long-term debt. 3) The forward contracts are related to the share buyback program and LTI plans Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2017 - 2018 Balance as of Dec. 31, 2017 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2018 Long term debt 2 4,595 126 45 (109) 4,657 USD bonds 2,137 (866) 31 - 1,303 EUR bonds 997 990 1 1,988 Bank borrowings 190 21 - - 211 Other long-term debt 20 (1) - - 18 Finance leases 281 (18) 13 53 330 Forward contracts 3 970 (163) 807 Short term debt 2 120 34 (29) 39 164 Short-term bank borrowings 71 34 (29) 76 Other short-term loans Forward contracts 3 49 39 88 Equity (1,500) (1,351) 1,558 (1,293) Dividend payable (404) 404 Forward contracts 3 (1,018) 124 (894) Treasury shares (481) (948) 1,030 (399) Total (1,192) 1) Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 2) Long-term debt includes the current portion of long-term debt, and short-term debt excludes the current portion of long-term debt. 3) The forward contracts are related to the share buyback program and LTI plans |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Related-party transactions (Tables), Related-party transactions [Text Block] | Philips Group Related-party transactions in millions of EUR 2017 - 2019 2017 2018 2019 Sales of goods and services 196 232 158 Purchases of goods and services 62 67 53 Receivables from related parties 127 28 32 Payables to related parties 36 1 2 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based compensation [Abstract] | |
Share-based compensation (Tables), Performance shares [Text Block] | Philips Group Performance shares 2019 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2019 4,738,099 32.54 Granted 1,183,900 40.38 Notional dividends 1 90,183 39.15 Vested/Issued 3,187,475 24.81 Forfeited 246,510 37.24 Adjusted quantity 2 882,604 21.34 Outstanding at December 31, 2019 3,460,802 39.32 USD-denominated Outstanding at January 1, 2019 2,878,048 37.74 Granted 808,652 45.28 Notional dividends 1 57,569 44.82 Vested/Issued 1,865,456 28.36 Forfeited 174,758 44.36 Adjusted quantity 2 509,908 24.71 Outstanding at December 31, 2019 2,213,962 45.06 1) Dividend declared in 2019 on outstanding shares. 2) Adjusted quantity includes the adjustments made to performance shares outstanding due to updates on the actual and expected EPS. |
Share-based compensation (Tables), Restricted shares [Text Block] | Philips Group Restricted shares 2019 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2019 1 2,220,891 29.69 Granted 641,485 37.22 Notional dividends 2 45,433 34.44 Vested/Issued 920,463 24.65 Forfeited 120,481 33.50 Outstanding at December 31, 2019 1,866,864 34.63 USD-denominated Outstanding at January 1, 2019 1 1,905,867 33.58 Granted 614,062 41.83 Notional dividends 2 42,465 38.07 Vested/Issued 688,010 28.67 Forfeited 142,407 37.71 Outstanding at December 31, 2019 1,731,978 38.22 1) Excludes premium shares on Restricted shares granted before 2013. (20% additional (premium) shares that may be received if shares delivered under the plan are not sold for three-year period). 2) Dividend declared in 2019 on outstanding shares. |
Share-based compensation (Tables), Options on EUR-denominated listed share [Text Block] | Philips Group Options on EUR-denominated listed share 2019 options weighted average exercise price Outstanding at January 1, 2019 1,648,720 18.90 Exercised 659,128 18.86 Expired 54,885 15.42 Outstanding at December 31, 2019 934,707 19.14 Exercisable at December 31, 2019 934,707 19.14 |
Share-based compensation (Tables), Options on USD-denominated listed share [Text Block] | Philips Group Options on USD-denominated listed share 2019 options weighted average exercise price Outstanding at January 1, 2019 1,633,868 26.13 Exercised 663,191 26.20 Expired 41,702 22.13 Outstanding at December 31, 2019 928,975 26.26 Exercisable at December 31, 2019 928,975 26.26 |
Share-based compensation (Tables), Outstanding options [Text Block] | Philips Group Outstanding options in millions of EUR unless otherwise stated 2019 options intrinsic value in millions weighted average remaining contractual term EUR-denominated 10-15 370,115 10.6 2.3 yrs 15-20 16,461 0.4 2.2 yrs 20-25 548,131 11.7 1.0 yrs Outstanding options 934,707 22.8 1.5 yrs USD-denominated 15-20 360,625 10.6 2.3 yrs 20-25 20,550 0.6 2.0 yrs 25-30 354,350 6.8 1.3 yrs 30-35 193,450 3.0 0.4 yrs Outstanding options 928,975 20.9 1.5 yrs |
Share-based compensation (Tables), Accelerate! options [Text Block] | Philips Group Accelerate! options 2019 options weighted average exercise price EUR-denominated Outstanding at January 1, 2019 296,750 16.57 Exercised 76,550 15.24 Outstanding at December 31, 2019 220,200 17.04 Exercisable at December 31, 2019 220,200 17.04 USD-denominated Outstanding at January 1, 2019 123,300 20.02 Exercised 40,800 20.02 Expired 7,500 20.02 Outstanding at December 31, 2019 75,000 20.02 Exercisable at December 31, 2019 75,000 20.02 |
Information on remuneration (Ta
Information on remuneration (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Information on remuneration [Abstract] | |
Information on remuneration (Tables), Remuneration costs of the Executive Committee [Text Block] | Philips Group Remuneration costs of the Executive Committee 1 in EUR 2017 - 2019 2017 2018 2019 Base salary/Base compensation 8,089,063 8,370,406 9,241,364 Annual incentive 2 6,345,576 5,651,996 5,566,763 Performance shares 3 4 6,371,297 8,896,369 11,143,320 Restricted share rights 3 885,343 492,237 168,404 Pension allowances 5 1,886,963 1,919,839 2,076,834 Pension scheme costs 408,695 411,028 440,003 Other compensation 6 1,861,803 1,013,128 1,331,990 Total 25,848,740 26,755,003 29,968,678 1) The Executive Committee consisted of 14 13 12 2) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. 3) Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares and restricted share rights at the vesting/release date 4) For 2019, a release of EUR 0 (2018: EUR 1,740,520; 2017: EUR 2,469,670) is included due to non-vesting of performance shares 5) Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 6) The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated |
Information on remuneration (Tables), Remuneration costs of individual members of the Board of Management [Text Block] | Philips Group Remuneration costs of individual members of the Board of Management 2017 - 2019 base compensation/salary annual incentive 1 performance shares 2 restricted share rights 2 pension allowances 3 pension schemecosts other compensation total costs 2019 F.A. van Houten 1,295,000 1,091,800 2,235,166 - 559,052 26,380 52,713 5,260,111 A. Bhattacharya 770,000 517,472 995,483 - 230,006 26,380 63,265 2,602,606 M.J. van Ginneken 571,250 335,685 713,815 - 171,018 26,380 38,278 1,856,426 2,636,250 1,944,957 3,944,464 - 960,076 79,140 154,256 9,719,143 2018 F.A. van Houten 1,205,000 1,264,286 2,319,460 588 537,181 25,708 39,042 5,391,265 A. Bhattacharya 718,750 637,536 942,220 129 217,823 25,708 53,522 2,595,688 M.J. van Ginneken 557,500 362,611 711,806 66 168,210 25,708 35,299 1,861,200 2,481,250 2,264,433 3,973,486 783 923,214 77,124 127,863 9,848,153 2017 F.A. van Houten 1,205,000 1,270,166 1,975,277 4,034 537,621 25,278 84,053 5,101,429 A. Bhattacharya 687,500 553,392 669,396 888 210,450 25,278 100,918 2,247,822 M.J. van Ginneken 91,667 69,168 100,022 75 27,796 4,213 13,120 306,061 P.A.J. Nota 606,250 429,886 (1,203,992) (188) 236,208 21,065 63,576 152,805 2,590,417 2,322,612 1,540,703 4,809 1,012,075 75,834 261,667 7,808,117 1) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. For more details on the annual incentives refer to 2019 Annual Incentive 2) Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares and restricted share rights at the vesting/release date 3) The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated. |
Information on remuneration (Tables), Accumulated annual pension entitlements and pension-related costs [Text Block] | Philips Group Accumulated annual pension entitlements and pension-related costs in EUR unless otherwise stated 2019 age at December 31, 2019 accumulated annual pension as of December 31, 2019 total pension related costs F.A. van Houten 59 325,561 585,432 A. Bhattacharya 58 31,338 256,386 M.J. van Ginneken 46 44,169 197,398 Pension costs 1,039,216 |
Information on remuneration (Tables), Remuneration of the Supervisory Board [Text Block] | Philips Group Remuneration of the Supervisory Board in EUR 2017 - 2019 membership committees other compensation 1 total 2019 2 J. van der Veer 155,000 35,000 7,000 197,000 C.A. Poon 115,000 50,167 22,000 187,167 H.N.F.M. von Prondzynski 33,333 16,333 5,667 55,333 J.P. Tai 25,000 10,250 5,500 40,750 N. Dhawan 100,000 18,000 27,000 145,000 O. Gadiesh 100,000 19,833 12,000 131,833 D.E.I. Pyott 100,000 41,500 17,000 158,500 P.A.M. Stoffels 100,000 - 14,500 114,500 A.M. Harrison 100,000 9,333 12,000 121,333 M.E. Doherty 41,667 1,500 8,333 51,500 870,000 201,917 131,000 1,202,917 2018 2 J. van der Veer 140,000 27,500 12,000 179,500 C.A. Poon 96,250 36,625 22,000 154,875 H.N.F.M. von Prondzynski 85,000 36,625 14,500 136,125 J.P. Tai 85,000 34,625 22,000 141,625 N. Dhawan 85,000 14,250 24,500 123,750 O. Gadiesh 85,000 14,250 22,000 121,250 D.E.I. Pyott 85,000 25,250 32,000 142,250 P.A.M. Stoffels 38,333 - 8,333 46,667 A.M. Harrison 31,667 - 10,667 42,333 731,250 189,125 168,000 1,088,375 2017 2 J. van der Veer 135,000 25,000 7,000 167,000 C.A. Poon 90,000 32,500 17,000 139,500 H.N.F.M. von Prondzynski 80,000 32,500 19,500 132,000 J.P. Tai 80,000 32,500 32,000 144,500 N. Dhawan 80,000 13,000 27,000 120,000 O. Gadiesh 80,000 13,000 19,500 112,500 D.E.I. Pyott 80,000 23,000 32,000 135,000 625,000 171,500 154,000 950,500 1) The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel (effective 2015) and the entitlement of EUR 2,000 2) As of 2013, part of the remuneration of members of the Supervisory Board living in the Netherlands is subject to VAT. The amounts mentioned in this table are excluding VAT |
Information on remuneration (Tables), Shares held by Board members [Text Block] | Philips Group Shares held by Board members 1 in number of shares 2019 December 31, 2018 December 31, 2019 J. van der Veer 18,366 18,366 F.A. van Houten 292,302 347,565 A. Bhattacharya 66,794 90,083 M.J. van Ginneken 47,856 67,600 1) Reference date for board membership is December 31, 2019. |
Fair value of financial asset_2
Fair value of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair value of financial assets and liabilities [Abstract] | |
Fair value of financial assets and liabilities (Tables), Fair value of financial assets and liabilities [Text Block] | Philips Group Fair value of financial assets and liabilities in millions of EUR 2019 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 92 92 92 Equity instruments 7 7 7 Other financial assets 37 37 31 6 Financial assets carried at FVTPL 136 136 7 31 98 Debt instruments 28 28 27 - Equity instruments 45 45 8 37 Current financial assets - - Receivables - current 77 77 77 Financial assets carried at FVTOCI 150 150 8 27 114 Derivative financial instruments 39 39 39 Financial assets carried at fair value 324 324 15 97 212 Carried at (amortized) cost: Cash and cash equivalents 1,425 Loans and receivables: Current loans receivables 1 Other non-current loans and receivables 40 Receivables - current 4,476 Receivables - non-current 178 Financial assets carried at (amortized) cost 6,121 Total financial assets 6,445 Financial liabilities Carried at fair value: Contingent consideration (354) (354) (354) Financial liabilities carried at FVTP&L (354) (354) (354) Derivative financial instruments (191) (191) (191) Financial liabilities carried at fair value (544) (544) (191) (354) Carried at (amortized) cost: Accounts payable (2,089) Interest accrual (38) Debt (Corporate bonds and leases) (4,943) (5,500) (4,119) (1,381) Debt (excluding corporate bonds and leases) (504) Financial liabilities carried at (amortized) cost (7,574) Total financial liabilities (8,118) 1) For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments (including maturity and interest conditions) and therefore fair value information is not included in the table above. Philips Group Fair value of financial assets and liabilities in millions of EUR 2018 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 69 69 69 Equity instruments 20 20 20 Other financial assets 27 27 22 5 Financial assets carried at FVTPL 116 116 20 22 74 Debt instruments 26 26 26 - Equity instruments 172 172 22 1 149 Current financial assets 2 435 435 434 - Receivables - current 32 32 32 Financial assets carried at FVTOCI 664 664 457 27 181 Derivative financial instruments 36 36 36 Financial assets carried at fair value 817 817 476 85 255 Carried at (amortized) cost: Cash and cash equivalents 1,688 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 46 Receivables - current 4,004 Receivables - non-current 162 Financial assets carried at (amortized) cost 5,902 Total financial assets 6,718 Financial liabilities Carried at fair value: Contingent consideration (409) (409) (409) Financial liabilities carried at FVTP&L (409) (409) (409) Derivative financial instruments (290) (290) (290) Financial liabilities carried at fair value (699) (699) (290) (409) Carried at (amortized) cost: Accounts payable (2,303) Interest accrual (36) Debt (Corporate bonds and finance leases) (3,621) (3,906) (3,576) (330) Debt (excluding corporate bonds and finance leases) (1,200) Financial liabilities carried at (amortized) cost (7,159) Total financial liabilities (7,858) 1) For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the nature of these instruments (including maturity and interest conditions) and therefore fair value information is not included in the table above. 2) The majority of the balance reflects the remaining stake in Signify (formerly Philips Lighting), which relates to equity instruments. |
Fair value of financial assets and liabilities (Tables), Reconciliation of Level 3 fair value measurements [Text Block] | Philips Group Reconciliation of Level 3 fair value measurements in millions of EUR 2019 Financial assets Financial liabilities Balance at January 1, 2019 255 409 Acquisitions 6 Purchase 54 Sales (24) Utilizations (44) Recognized in profit and loss: - other business income (35) - financial income and expenses 2 14 Recognized in other comprehensive income 1 (120) 4 Receivables held to collect and sell 46 Balance at December 31, 2019 212 354 1) Includes translation differences |
Fair value of financial assets and liabilities (Tables), Reconciliation of the fair value hierarchy [Text Block] | Philips Group Reconciliation of the fair value hierarchy in millions of EUR 2018 Financial assets Financial liabilities Balance as of December 31, 2017 372 66 IFRS 9 adjustment 1 47 Balance at January 1, 2018 420 66 Assumed in a business combination 370 Purchase 30 Sales (35) Utilizations (48) Recognized in profit and loss: - other business income 5 - financial income and expenses - 12 Recognized in other comprehensive income 2 (145) 5 Receivables held to collect and sell (15) Balance at December 31, 2018 255 409 1) IFRS 9 adjustments relates to Receivables-current carried at FVTOCI. For further information refer to Significant accounting policies note. 2) Includes translation differences |
Fair value of financial assets and liabilities (Tables), Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements [Text Block] | Philips Group Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2018 - 2019 2018 2019 Derivatives Gross amounts of recognized financial assets 36 39 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 36 39 Related amounts not offset in the balance sheet Financial instruments (25) (33) Cash collateral received Net amount 12 6 |
Fair value of financial assets and liabilities (Tables), Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements [Text Block] | Philips Group Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2018 - 2019 2018 2019 Derivatives Gross amounts of recognized financial liabilities (290) (191) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (290) (191) Related amounts not offset in the balance sheet Financial instruments 25 33 Cash collateral received Net amount (265) (158) |
Details of treasury and other_2
Details of treasury and other financial risks (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Details of treasury and other financial risks [Abstract] | |
Details of treasury and other financial risks (Tables), Contractual cash obligations [Text Block] | Philips Group Contractual cash obligations 1 2 in millions of EUR 2019 payments due by period total less than 1 year 1-3 years 3-5 years after 5 years Long-term debt 3 5,699 256 293 1,218 3,932 Lease obligations 1,533 292 438 261 543 Short-term debt 92 92 Derivative liabilities 192 68 1 123 Purchase obligations 4 822 370 344 61 48 Trade and other payables 2,089 2,089 Contractual cash obligations 10,427 3,167 1,075 1,662 4,523 1) Amounts in this table are undiscounted 2) This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement 3) Long-term debt includes interest and the current portion of long-term debt and excludes lease obligations. 4) Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not include open purchase orders or other commitments which do not specify all significant terms. |
Details of treasury and other financial risks (Tables), Lease - minimum payments under sale-and-leaseback arrangements [Text Block] | Philips Group Lease - minimum payments under sale-and-leaseback arrangements in millions of EUR 2019 2020 112 2021 97 2022 73 2023 52 2024 33 Thereafter 125 |
Details of treasury and other financial risks (Tables), Estimated transaction exposure and related hedges [Text Block] | Philips Group Estimated transaction exposure and related hedges in millions of EUR 2019 Sales/Receivables Purchases/Payable exposure hedges exposure hedges Balance as of December 31, 2019 Exposure currency USD 2,125 (1,467) (907) 786 JPY 870 (478) (10) 10 GBP 371 (203) (24) 23 CNY 456 (322) (141) 136 CAD 283 (161) PLN 275 (96) AUD 225 (133) CHF 110 (58) (0) CZK 108 (37) SEK 71 (38) RUB 58 (58) Others 280 (240) (523) 290 Total 2019 5,233 (3,292) (1,606) 1,244 Total 2018 3,930 (2,562) (960) 809 |
Details of treasury and other financial risks (Tables), Estimated impact of 10% increase of value of the EUR on the fair value of hedges [Text Block] | Philips Group Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR 2018 2019 USD 75 85 JPY 15 19 GBP 7 14 CHF 5 5 PLN 6 9 RUB 2 3 |
Details of treasury and other financial risks (Tables), Net debt and interest rate sensitivity [Text Block] | Philips Group Net debt 1 in millions of EUR 2018 2019 Impact 1% 2 3 (275) (300) Impact 1% 2 3 276 301 Impact 1% 4 9 11 1) The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Equity 2) The sensitivity analysis conducted shows that if long-term interest rates were to increase/decrease instantaneously by 1% from their level of December 31st, 2019, with all other variables (including foreign exchange rates) held constant. 3) Fixed-rate long-term debt is excluding forward contracts. 4) The impact is based on the outstanding net cash position (after excluding fixed-rate debt) at December 31, 2019. |
Details of treasury and other financial risks (Tables), Credit risk with number of counterparties [Text Block] | Philips Group Credit risk with number of counterparties for deposits above EUR 10 million 2019 10-100 million 100-500 million 500 million and above AA- rated bank counterparties 1 A+ rated bank counterparties 1 3 A rated bank counterparties 2 A- rated bank counterparties 1 1 2 7 |
Significant accounting polici_4
Significant accounting policies - Text Details (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Bottom of range [member] | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Presumed significant influence, voting rights | 20.00% | 20.00% |
Top of range [member] | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Presumed significant influence, voting rights | 50.00% | 50.00% |
Significant accounting polici_5
Significant accounting policies - Balance sheet impact of IFRS 16 adoption (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Property, plant and equipment | € 2,866 | [1] | € 1,712 | [1] | € 1,591 | |
Current prepayments and other current assets | 476 | 469 | ||||
Deferred tax assets | 1,865 | 1,828 | ||||
Equity attributable to owners of parent | [2] | 12,597 | 12,088 | 11,999 | ||
Non-current portion of non-current borrowings | [2] | 4,939 | [1] | 3,427 | [1] | 4,044 |
Non-current provisions | 1,603 | 1,788 | ||||
Current borrowings and current portion of non-current borrowings | [2] | 508 | [1] | 1,394 | [1] | € 672 |
Accruals | € 1,632 | 1,537 | ||||
After presentation change [Member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Property, plant and equipment | 2,472 | |||||
Current prepayments and other current assets | 457 | |||||
Deferred tax assets | 1,833 | |||||
Equity attributable to owners of parent | 12,055 | |||||
Non-current portion of non-current borrowings | 4,083 | |||||
Non-current provisions | 1,782 | |||||
Current borrowings and current portion of non-current borrowings | 1,541 | |||||
Accruals | 1,526 | |||||
IFRS 16 [Member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Property, plant and equipment | 760 | |||||
Current prepayments and other current assets | (12) | |||||
Deferred tax assets | 5 | |||||
Equity attributable to owners of parent | (33) | |||||
Non-current portion of non-current borrowings | 656 | |||||
Non-current provisions | (6) | |||||
Current borrowings and current portion of non-current borrowings | 147 | |||||
Accruals | € (11) | |||||
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies | |||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Significant accounting polici_6
Significant accounting policies - Reconciliation of operating lease commitments to lease liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Operating lease commitments | € 756 | |
Long-term debt including current portion of long-term debt | € 5,355 | 4,657 |
Short-term leases recognized on a straight-line basis as expense | 17 | |
Lease extensions considered reasonably certain | 121 | |
Total lease liabilities | 256 | 1,133 |
Current lease liabilities | 241 | |
Non-current lease liabilities | 892 | |
Lease liabilities [member] | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Long-term debt including current portion of long-term debt | € 1,381 | 330 |
Discounted [member] | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Operating lease commitments | € 699 |
Significant accounting polici_7
Significant accounting policies - Retained earnings impact of IFRS 16 adoption (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Retained earnings | € 8,266 | |
Deferred tax assets | € 1,865 | 1,828 |
After presentation change [Member] | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Retained earnings | 8,233 | |
Deferred tax assets | 1,833 | |
IFRS 16 [Member] | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||
Impact on equity | (38) | |
Deferred tax assets | € 5 |
Information by segment and ma_3
Information by segment and main country - Text Details (Detail) € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Information by segment and main country - Text Details (Detail) [Line Items] | |
Share of sales for single customer | 10.00% |
Diagnosis & Treatment [Member] | |
Information by segment and main country - Text Details (Detail) [Line Items] | |
Intersegment funding | € 54 |
Information by segment and ma_4
Information by segment and main country - Information on income statements (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Information by segment and main country - Text Details (Detail) [Line Items] | |||||||
Revenue | € 19,482 | [1] | € 18,121 | [2] | € 17,780 | ||
Sales including intercompany | 19,482 | 18,121 | 17,780 | ||||
Depreciation and amortisation expense | [4] | 1,402 | [3] | 1,089 | [5] | 1,025 | [3] |
Adjusted EBITA | [6] | 2,563 | [7] | 2,366 | [7] | 2,153 | [8] |
Connected Care [Member] | |||||||
Information by segment and main country - Text Details (Detail) [Line Items] | |||||||
Revenue | 4,674 | [9] | 4,341 | [2] | 4,331 | ||
Sales including intercompany | 4,760 | 4,516 | 4,492 | ||||
Depreciation and amortisation expense | [4] | 327 | 326 | 355 | |||
Adjusted EBITA | [6] | 618 | [7] | 662 | [8] | 684 | [8] |
Diagnosis & Treatment [Member] | |||||||
Information by segment and main country - Text Details (Detail) [Line Items] | |||||||
Revenue | 8,485 | [9],[10] | 7,726 | [2] | 7,365 | ||
Sales including intercompany | 8,579 | [10] | 7,825 | 7,445 | |||
Depreciation and amortisation expense | [4] | 564 | [10] | 349 | 301 | ||
Adjusted EBITA | [6],[7] | 1,078 | [10] | 872 | 747 | ||
Intersector Eliminations [member] | |||||||
Information by segment and main country - Text Details (Detail) [Line Items] | |||||||
Sales including intercompany | (263) | (369) | (393) | ||||
Other [Member] | |||||||
Information by segment and main country - Text Details (Detail) [Line Items] | |||||||
Revenue | 469 | [9] | 530 | [2] | 400 | ||
Sales including intercompany | 542 | 612 | 535 | ||||
Depreciation and amortisation expense | [4] | 326 | 244 | 188 | |||
Adjusted EBITA | [6] | (76) | [8] | (28) | [8] | (157) | [7] |
Personal Health [Member] | |||||||
Information by segment and main country - Text Details (Detail) [Line Items] | |||||||
Revenue | 5,854 | [9] | 5,524 | [2] | 5,685 | ||
Sales including intercompany | 5,864 | 5,538 | 5,702 | ||||
Depreciation and amortisation expense | [4] | 186 | 171 | 181 | |||
Adjusted EBITA | [6] | € 943 | [7] | € 860 | [7] | € 879 | [8] |
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[2] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[3] | Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment | ||||||
[4] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | ||||||
[5] | Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment | ||||||
[6] | For reconciliation Adjusted EBITA, refer to the table below. | ||||||
[7] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[8] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[9] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[10] | In 2019 Philips’ Emerging Businesses were moved out of segment Other into segment Diagnosis & Treatment to enable these businesses with better access to downstream capabilities. While these businesses remain in (semi-)incubator phase, in 2019 they received a corporate funding out of segment Other of EUR 54 million |
Information by segment and ma_5
Information by segment and main country - Reconciliation from net income to Adjusted EBITA (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||||
Net income | [1],[3] | € 1,173 | [2] | € 1,097 | [2] | € 1,870 | ||
Profit (loss) from discontinued operations | [3] | (19) | [2],[4] | (213) | [2],[4] | 843 | [1],[5] | |
Tax expense (income) | [1] | 337 | 193 | 349 | ||||
Share of profit (loss) of associates and joint ventures accounted for using equity method | [1] | 1 | (2) | (4) | ||||
Finance costs | [1] | 233 | 264 | 263 | ||||
Finance income | [1] | 117 | 51 | 126 | ||||
Income from operations | [1] | 1,644 | 1,719 | 1,517 | ||||
Amortization of acquired intangible assets | [1] | 350 | [2] | 347 | [2] | 260 | ||
Impairment loss recognised in profit or loss, goodwill | € 97 | 97 | [1],[2] | 9 | [1] | |||
Earnings before interest, taxes and amortization, total | [1] | 2,091 | 2,066 | 1,787 | ||||
Restructuring and acquisition-related charges | [1] | 318 | [2] | 258 | [2] | 316 | ||
Other items | [1] | 153 | [2] | 41 | [2] | 50 | ||
Adjusted EBITA | [6] | 2,563 | [1] | 2,366 | [1] | 2,153 | [7] | |
Connected Care [Member] | ||||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||||
Income from operations | [1] | 267 | 399 | 424 | ||||
Amortization of acquired intangible assets | [1] | 141 | 140 | 138 | ||||
Impairment loss recognised in profit or loss, goodwill | [1] | 78 | ||||||
Earnings before interest, taxes and amortization, total | [1] | 486 | 539 | 562 | ||||
Restructuring and acquisition-related charges | [1] | 64 | 66 | 91 | ||||
Other items | [1] | 67 | 56 | 31 | ||||
Adjusted EBITA | [6] | 618 | [1] | 662 | [7] | 684 | [7] | |
Diagnosis & Treatment [Member] | ||||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||||
Income from operations | [1] | 660 | 629 | 512 | ||||
Amortization of acquired intangible assets | [1] | 177 | 98 | 57 | ||||
Impairment loss recognised in profit or loss, goodwill | [1] | 19 | ||||||
Earnings before interest, taxes and amortization, total | [1] | 856 | 727 | 568 | ||||
Restructuring and acquisition-related charges | [1] | 149 | 146 | 156 | ||||
Other items | [1] | 73 | 0 | 22 | ||||
Adjusted EBITA | [1],[6] | 1,078 | [8] | 872 | 747 | |||
Other [Member] | ||||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||||
Income from operations | [1] | (127) | (105) | (252) | ||||
Amortization of acquired intangible assets | [1] | 8 | 79 | 26 | ||||
Impairment loss recognised in profit or loss, goodwill | [1] | 9 | ||||||
Earnings before interest, taxes and amortization, total | [1] | (119) | (27) | (217) | ||||
Restructuring and acquisition-related charges | [1] | 54 | 31 | 64 | ||||
Other items | [1] | (11) | (33) | (3) | ||||
Adjusted EBITA | [6] | (76) | [7] | (28) | [7] | (157) | [1] | |
Personal Health [Member] | ||||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||||
Income from operations | [1] | 844 | 796 | 834 | ||||
Amortization of acquired intangible assets | [1] | 25 | 31 | 39 | ||||
Earnings before interest, taxes and amortization, total | [1] | 869 | 827 | 873 | ||||
Restructuring and acquisition-related charges | [1] | 50 | 15 | 6 | ||||
Other items | [1] | 23 | 18 | |||||
Adjusted EBITA | [6] | € 943 | [1] | € 860 | [1] | € 879 | [7] | |
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||
[6] | For reconciliation Adjusted EBITA, refer to the table below. | |||||||
[7] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[8] | In 2019 Philips’ Emerging Businesses were moved out of segment Other into segment Diagnosis & Treatment to enable these businesses with better access to downstream capabilities. While these businesses remain in (semi-)incubator phase, in 2019 they received a corporate funding out of segment Other of EUR 54 million |
Information by segment and ma_6
Information by segment and main country - Main countries (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Revenue | € 19,482 | [1] | € 18,121 | [2] | € 17,780 | |
CHINA | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 353 | 959 | |||
Revenue | [4] | 2,707 | 2,380 | 2,322 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 340 | 353 | 959 | ||
GERMANY | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 263 | 270 | |||
Revenue | [4] | 1,087 | 1,032 | 1,011 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 308 | 263 | 270 | ||
FRANCE | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 30 | 33 | |||
Revenue | [4] | 505 | 519 | 530 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 46 | 30 | 33 | ||
Foreign countries [member] | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 13,805 | 12,644 | |||
Revenue | [4] | 19,482 | 18,121 | 17,780 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 14,986 | 13,805 | 12,644 | ||
INDIA | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Revenue | [4] | 498 | 425 | |||
JAPAN | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 491 | 457 | |||
Revenue | [4] | 1,186 | 1,045 | 1,059 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 550 | 491 | 457 | ||
KOREA, REPUBLIC OF | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 3 | 100 | |||
Revenue | [4] | 470 | ||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 611 | 3 | 100 | ||
NETHERLANDS | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 1,666 | 1,154 | |||
Revenue | [4] | 522 | 510 | 414 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 2,148 | 1,666 | 1,154 | ||
Other countries [Member] | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 1,506 | 1,263 | |||
Revenue | [4] | 6,338 | 6,087 | 5,935 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | 1,119 | 1,506 | 1,263 | ||
UNITED STATES | ||||||
Information by segment and main country - Text Details (Detail) [Line Items] | ||||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [3] | 9,493 | 8,408 | |||
Revenue | [4] | 6,667 | 6,050 | 6,084 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [3] | € 9,864 | € 9,493 | € 8,408 | ||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[2] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[3] | Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill | |||||
[4] | The sales are reported based on country of destination. |
Discontinued operations and a_3
Discontinued operations and assets classified as held for sale - Text Details (Detail) - EUR (€) € in Millions | 11 Months Ended | 12 Months Ended | |||||||
Nov. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Profit (loss) from discontinued operations | [3] | € (19) | [1],[2] | € (213) | [1],[2] | € 843 | [4],[5] | ||
Result on the sale of discontinued operations net of tax | 62 | ||||||||
Cash flows from (used in) investing activities, discontinued operations | (14) | 662 | 856 | ||||||
Combined Lumileds and Automotive Lighting businesses [Member] | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Profit (loss) from discontinued operations | 12 | (29) | |||||||
Sale of stake | 80.10% | ||||||||
Result on the sale of discontinued operations net of tax | 8 | (98) | |||||||
Proceeds from disposal of non-current assets or disposal groups classified as held for sale and discontinued operations | € 1,067 | ||||||||
Discontinued operations [member] | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Profit (loss) from discontinued operations | (19) | (213) | 843 | ||||||
Discontinued operations [member] | Net business impact [Member] | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Assets and liabilities directly associated with assets held for sale | 52 | 44 | |||||||
Discontinued operations [member] | Property, plant and equipment [member] | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Assets classified as held for sale | 13 | 23 | 40 | ||||||
Discontinued operations [member] | Deconsolidation Signify [Member] | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Cash flows from (used in) investing activities, discontinued operations | (175) | (642) | |||||||
Other operations [Member] | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Profit (loss) from discontinued operations | € (19) | (27) | (24) | ||||||
Signify Member | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Profit (loss) from discontinued operations | (198) | 896 | |||||||
Dividend income | 32 | ||||||||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | 218 | ||||||||
Proceeds from disposal of non-current assets or disposal groups classified as held for sale and discontinued operations | 545 | ||||||||
Net cash and cash equivalents of disposed asset held for sale | € 720 | ||||||||
Signify Member | Deconsolidation Signify [Member] | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Non-current assets or disposal groups classified as held for sale | € 1,264 | ||||||||
Signify Member | |||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||||
Profit (loss) from discontinued operations | € 198 | ||||||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Discontinued operations and a_4
Discontinued operations and assets classified as held for sale - Discontinued operations, net of income taxes (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Profit (loss) from discontinued operations | [3] | € (19) | [1],[2] | € (213) | [1],[2] | € 843 | [4],[5] |
Combined Lumileds and Automotive Lighting businesses [Member] | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Profit (loss) from discontinued operations | 12 | (29) | |||||
Discontinued operations [member] | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Profit (loss) from discontinued operations | (19) | (213) | 843 | ||||
Other operations [Member] | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Profit (loss) from discontinued operations | € (19) | (27) | (24) | ||||
Signify Member | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Profit (loss) from discontinued operations | € (198) | € 896 | |||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Discontinued operations and a_5
Discontinued operations and assets classified as held for sale - Results of Signify (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | € 9 | € 14 | € 182 | ||||
Profit (loss) from discontinued operations, total | [3] | € (19) | [1],[2] | (213) | [1],[2] | 843 | [4],[5] |
Signify Member | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
US tax reform act | 8 | ||||||
Profit (loss) from discontinued operations, total | 198 | ||||||
Signify Member | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Discontinued Operations, Revenue | 6,319 | ||||||
Discontinued Operations, Expenses | 18 | 5,776 | |||||
Gain (Loss) Discontinued Operations Before Tax | 538 | ||||||
Adjustments for fair value losses (gains) | 218 | 104 | |||||
Dividend income | 32 | ||||||
Profit Loss Discontinued Operations, Before Tax, total | (204) | 977 | |||||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | (7) | 150 | |||||
Gain (loss) discontinued operations tax | 61 | ||||||
Profit (loss) from discontinued operations, total | € (198) | € 896 | |||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Discontinued operations and a_6
Discontinued operations and assets classified as held for sale - Results of combined Lumileds and Automotive businesses (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Result on the sale of discontinued operations net of tax | € 62 | ||||||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | 9 | € 14 | € 182 | ||||
Profit (loss) from discontinued operations, total | [3] | € (19) | [1],[2] | (213) | [1],[2] | 843 | [4],[5] |
Combined Lumileds and Automotive Lighting businesses [Member] | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Discontinued Operations, Revenue | 804 | ||||||
Discontinued Operations, Expenses | (5) | 630 | |||||
Result on the sale of discontinued operations net of tax | 8 | (98) | |||||
Profit Loss Discontinued Operations, Before Tax, total | 13 | 76 | |||||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | (1) | (25) | |||||
Gain (loss) discontinued operations tax | 26 | ||||||
US tax reform act | (107) | ||||||
Profit (loss) from discontinued operations, total | € 12 | € (29) | |||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | ||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Discontinued operations and a_7
Discontinued operations and assets classified as held for sale - Discontinued operations cash flows (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Discontinued operations and assets classified as held for sale [Abstract] | ||||
Cash flows from (used in) operating activities, discontinued operations | € (11) | € (15) | € 350 | |
Cash flows from (used in) investing activities, discontinued operations | (14) | 662 | 856 | |
Cash flows from (used in) financing activities, discontinued operations | (144) | |||
Increase (decrease) in cash and cash equivalents, discontinued operations, total | [1] | € (25) | € 647 | € 1,063 |
[1] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Acquisitions and divestments -
Acquisitions and divestments - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | Jul. 09, 2018 | ||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Aggregated net cash outflow for acquisitions | € 199 | € 476 | ||||
Contingent liabilities recognised as of acquisition date | 11 | 361 | ||||
Aggregated impact on goodwill | 69 | 444 | ||||
Aggregated impact on other intangible assets | 105 | 416 | ||||
Aggregated net cash consideration for divestments | 68 | |||||
Result on the sale of discontinued operations net of tax | 62 | |||||
Increase (decrease) in intangible assets other than goodwill | (124) | 267 | ||||
Decrease (increase) in non-current receivables, other assets and other liabilities | [1] | 122 | (49) | € (358) | ||
Goodwill | 8,654 | 8,503 | ||||
Technology-based intangible assets [member] | ||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Increase (decrease) in intangible assets other than goodwill | € (110) | € 246 | ||||
Remaining amortisation period of intangible assets material to entity | 10 years | |||||
Acquisitions and divestments [Domain] | ||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Aggregated net cash consideration for divestments | € 122 | |||||
EPDSolutionsLtd[Member] | ||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Contingent liabilities recognised as of acquisition date | 245 | € 239 | ||||
Aggregated impact on other intangible assets | 227 | |||||
Increase (decrease) in goodwill | 9 | |||||
Increase (decrease) in contingent consideration asset (liability) | 6 | |||||
Proportion of ownership interest in subsidiary | 100.00% | |||||
Cash transferred | 250 | |||||
Contingent consideration recognised as of acquisition date | 245 | |||||
Cash and cash equivalents recognised as of acquisition date | 2 | € 2 | ||||
Acquisition-related costs | € 6 | |||||
Deferred tax liabilities recognised as of acquisition date | 3 | |||||
Goodwill | € 271 | € 271 | ||||
Discount rate applied to cash flow projections | 14.40% | |||||
Remaining acquisitions (excluding EPD) [Member] | ||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Increase (decrease) in goodwill | € 5 | |||||
Increase (decrease) in intangible assets other than goodwill | 27 | |||||
Increase (decrease) in contingent consideration asset (liability) | 11 | |||||
Decrease (increase) in non-current receivables, other assets and other liabilities | 11 | |||||
Remaining eight acquisition [Member] | ||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Aggregated net cash outflow for acquisitions | 228 | |||||
Contingent liabilities recognised as of acquisition date | 116 | |||||
Aggregated impact on goodwill | 173 | |||||
Aggregated impact on other intangible assets | 189 | |||||
Remaining eight acquisition [Member] | Bottom of range [member] | ||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Individual net cash outflow for acquisitions | 2 | |||||
Remaining eight acquisition [Member] | Top of range [member] | ||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||
Individual net cash outflow for acquisitions | € 90 | |||||
[1] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Acquisitions and divestments _2
Acquisitions and divestments - Opening Balance sheet as of acquisition date (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Jul. 09, 2018 |
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||
Goodwill | € 8,654 | € 8,503 | ||
Contingent liabilities recognised as of acquisition date | 11 | € 361 | ||
EPDSolutionsLtd[Member] | ||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||
Goodwill | 271 | € 271 | ||
Identifiable intangible assets recognised as of acquisition date | 227 | |||
Cash and cash equivalents recognised as of acquisition date | 2 | € 2 | ||
Trade and other payables recognised as of acquisition date | 2 | |||
Deferred tax liabilities recognised as of acquisition date | 3 | |||
Contingent liabilities recognised as of acquisition date | 245 | € 239 | ||
Assets (liabilities), total | 250 | |||
Financed by equity | € 250 |
Interests in entities - Text De
Interests in entities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Number of consolidated subsidiaries not wholly owned | 6 | |||||
Revenue | € 19,482 | [1] | € 18,121 | [2] | € 17,780 | |
Profit (loss) | [3],[5] | 1,173 | [4] | 1,097 | [4] | € 1,870 |
Philips Medical Capital LLC [Member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Stake in unconsolidated structured entity | 25 | 24 | ||||
Associates [member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Net cash outflow for acquisitions | 1 | |||||
Subsidiaries with material non-controlling interests [member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Revenue | 581 | 627 | ||||
Profit (loss) | € 9 | € 27 | ||||
Consolidated structured entities [member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Materiality threshold on group sales, income from operations or net income | 5.00% | |||||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[2] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[3] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||
[4] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||
[5] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Interests in entities - Interes
Interests in entities - Interests in group companies (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Philips (China) Investment Company Ltd [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips (China) Investment Company, Ltd. |
Principal place of business of subsidiary | China |
Philips Consumer Lifestyle BV [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Consumer Lifestyle B.V. |
Principal place of business of subsidiary | Netherlands |
Philips Electronics Nederland BV [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Electronics Nederland B.V. |
Principal place of business of subsidiary | Netherlands |
Philips GmbH [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips GmbH |
Principal place of business of subsidiary | Germany |
Philips Japan, Ltd. [member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Japan, Ltd. |
Principal place of business of subsidiary | Japan |
Philips Medizin Systeme Boblingen GmbH [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Medizin Systeme Böblingen GmbH |
Principal place of business of subsidiary | Germany |
Philips North America LLC [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips North America LLC |
Principal place of business of subsidiary | United States |
Philips Oral Healthcare LLC [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Oral Healthcare, LLC |
Principal place of business of subsidiary | United States |
Philips Ultrasound Inc [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Ultrasound, Inc. |
Principal place of business of subsidiary | United States |
Respironics Inc [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Respironics, Inc. |
Principal place of business of subsidiary | United States |
Income from operations - Text D
Income from operations - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income from operations - Text Details (Detail) [Line Items] | ||||
Lease expenses, net | [1],[2],[3] | € 52 | € 225 | € 227 |
Lease-related fuel, electricity and taxes | 32 | 38 | ||
Income from government grants | 94 | 81 | 90 | |
Income from subleasing right-of-use assets | 307 | 273 | ||
Transaction price allocated to remaining performance obligations | € 11,692 | |||
Percentage of remaining performance obligations within 1 year | 49.00% | |||
Employee benefits expense | € 6,307 | 5,827 | 5,824 | |
Share-based compensation expenses [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Employee benefits expense | € 105 | € 102 | € 122 | |
Later than one year [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Explanation of when entity expects to recognise transaction price allocated to remaining performance obligations as revenue | 1 year | |||
Not later than one year [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Explanation of when entity expects to recognise transaction price allocated to remaining performance obligations as revenue | 1 year | |||
[1] | For 2019 Lease expense relating to short-term and low value leases amounts to EUR 52 million | |||
[2] | Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment | |||
[3] | Lease expense includes other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor for 2018: EUR 32 million EUR 38 million |
Income from operations - Sales
Income from operations - Sales and costs by nature (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Income from operations [Abstract] | |||||||
Revenue | € 19,482 | [1] | € 18,121 | [2] | € 17,780 | ||
Raw materials and consumables used | 5,321 | 4,826 | 4,918 | ||||
Employee benefits expense | 6,307 | 5,827 | 5,824 | ||||
Depreciation and amortisation expense | [4] | 1,402 | [3] | 1,089 | [5] | 1,025 | [3] |
Transportation expense | 636 | 605 | 602 | ||||
Advertising expense | 972 | 937 | 939 | ||||
Lease expenses, net | [5],[6],[7] | 52 | 225 | 227 | |||
Other operational costs | [8] | 3,114 | 2,947 | 2,804 | |||
Other gains (losses) | (34) | 55 | 76 | ||||
Income from operations | [9] | € 1,644 | € 1,719 | € 1,517 | |||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[2] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[3] | Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment | ||||||
[4] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | ||||||
[5] | Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment | ||||||
[6] | For 2019 Lease expense relating to short-term and low value leases amounts to EUR 52 million | ||||||
[7] | Lease expense includes other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor for 2018: EUR 32 million EUR 38 million | ||||||
[8] | Other operational costs contain items which are dissimilar in nature and individually insignificant in amount to disclose separately. These costs contain among others expenses for outsourcing services, mainly in IT and HR, 3rd party workers, consultants, warranty, patents, costs for travelling, external legal services and EUR 94 million EUR 81 million EUR 90 million | ||||||
[9] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Income from operations - Sale_2
Income from operations - Sales composition (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income from operations [Abstract] | ||||||
Revenue from sale of goods | € 14,810 | € 13,973 | € 13,974 | |||
Revenue from rendering of services | 3,811 | 3,325 | 3,477 | |||
Royalty income | 381 | 402 | 329 | |||
Revenue from contracts with customers, total | 19,003 | 17,700 | 17,780 | |||
Revenue From Other Sources | [1] | 479 | [2] | 421 | [3] | |
Total revenue | € 19,482 | [4] | € 18,121 | [5] | € 17,780 | |
[1] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million EUR 273 million | |||||
[2] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million | |||||
[3] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million | |||||
[4] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[5] | Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Income from operations - Disagg
Income from operations - Disaggregation of Sale per segment (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | € 19,003 | € 17,700 | € 17,780 | |||
Revenue From Other Sources | [1] | 479 | [2] | 421 | [3] | |
Total revenue | 19,482 | [4] | 18,121 | [5] | 17,780 | |
Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 14,982 | 14,186 | ||||
Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 4,021 | 3,514 | ||||
Connected Care [Member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 4,263 | 3,981 | ||||
Revenue From Other Sources | 411 | [2] | 360 | [3] | ||
Total revenue | 4,674 | [6] | 4,341 | [5] | 4,331 | |
Connected Care [Member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 3,545 | 3,351 | ||||
Connected Care [Member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 718 | 630 | ||||
Diagnosis & Treatment [Member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 8,417 | 7,665 | ||||
Revenue From Other Sources | 68 | [2] | 61 | [3] | ||
Total revenue | 8,485 | [6],[7] | 7,726 | [5] | 7,365 | |
Diagnosis & Treatment [Member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 5,428 | 5,034 | ||||
Diagnosis & Treatment [Member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 2,988 | 2,631 | ||||
Other [Member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 469 | 530 | ||||
Revenue From Other Sources | 0 | [2] | 0 | [3] | ||
Total revenue | 469 | [6] | 530 | [5] | 400 | |
Other [Member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 162 | 282 | ||||
Other [Member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 308 | 249 | ||||
Personal Health [Member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 5,854 | 5,524 | ||||
Revenue From Other Sources | 0 | [2] | 0 | [3] | ||
Total revenue | 5,854 | [6] | 5,524 | [5] | € 5,685 | |
Personal Health [Member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 5,848 | 5,519 | ||||
Personal Health [Member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | € 6 | € 5 | ||||
[1] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million EUR 273 million | |||||
[2] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million | |||||
[3] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million | |||||
[4] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[5] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[6] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[7] | In 2019 Philips’ Emerging Businesses were moved out of segment Other into segment Diagnosis & Treatment to enable these businesses with better access to downstream capabilities. While these businesses remain in (semi-)incubator phase, in 2019 they received a corporate funding out of segment Other of EUR 54 million |
Income from operations - Disa_2
Income from operations - Disaggregation of Sales per geographical cluster (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | € 19,003 | € 17,700 | € 17,780 | |||
Revenue From Other Sources | [1] | 479 | [2] | 421 | [3] | |
Total revenue | 19,482 | [4] | 18,121 | [5] | 17,780 | |
Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 14,982 | 14,186 | ||||
Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 4,021 | 3,514 | ||||
Growth Geographies [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 6,488 | 5,898 | ||||
Revenue From Other Sources | 5 | [6] | 2 | [7] | ||
Total revenue | 6,492 | [4] | 5,901 | [8] | 5,862 | |
Growth Geographies [member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 5,647 | 5,199 | ||||
Growth Geographies [member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 840 | 700 | ||||
North America [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 6,837 | 6,238 | ||||
Revenue From Other Sources | 114 | [6] | 100 | [7] | ||
Total revenue | 6,951 | [4] | 6,338 | [8] | 6,409 | |
North America [member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 4,944 | 4,542 | ||||
North America [member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 1,894 | 1,696 | ||||
Other Mature Geographies [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 1,583 | 1,609 | ||||
Revenue From Other Sources | 322 | [6] | 283 | [7] | ||
Total revenue | 1,905 | [4] | 1,892 | [8] | 1,707 | |
Other Mature Geographies [member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 1,226 | 1,270 | ||||
Other Mature Geographies [member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 357 | 339 | ||||
Total Mature Geographies [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 12,515 | 11,802 | ||||
Revenue From Other Sources | 474 | [6] | 418 | [7] | ||
Total revenue | 12,990 | [4] | 12,221 | [8] | 11,918 | |
Total Mature Geographies [member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 9,335 | 8,987 | ||||
Total Mature Geographies [member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 3,181 | 2,815 | ||||
Western Europe [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 4,096 | 3,955 | ||||
Revenue From Other Sources | 38 | [6] | 35 | [7] | ||
Total revenue | 4,134 | [4] | 3,990 | [8] | € 3,802 | |
Western Europe [member] | Goods or services transferred at point in time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | 3,165 | 3,174 | ||||
Western Europe [member] | Goods or services transferred over time [member] | ||||||
Income from operations - Text Details (Detail) [Line Items] | ||||||
Revenue from contracts with customers | € 931 | € 780 | ||||
[1] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million EUR 273 million | |||||
[2] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million | |||||
[3] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million | |||||
[4] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[5] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[6] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million | |||||
[7] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million | |||||
[8] | Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Income from operations - Employ
Income from operations - Employee benefit expenses (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income from operations [Abstract] | ||||
Wages and salaries | [1] | € 5,251 | € 4,849 | € 4,856 |
Post-employment benefits costs | 379 | 351 | 347 | |
Social security contributions | 564 | 524 | 514 | |
Voluntary social security contributions | 112 | 103 | 108 | |
Total employee benefits expense | € 6,307 | € 5,827 | € 5,824 | |
[1] | Salaries and wages includes EUR 105 million EUR 102 million EUR 122 million |
Income from operations - Empl_2
Income from operations - Employees (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 78,392 | 74,888 | 115,392 |
Continuing operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 78,392 | 74,888 | 71,895 |
Continuing operations [member] | Employees [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 72,228 | 67,649 | 63,798 |
Continuing operations [member] | Other [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 24,301 | 26,175 | 26,314 |
Continuing operations [member] | Production [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 35,640 | 30,774 | 27,697 |
Continuing operations [member] | Research & development [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 12,287 | 10,700 | 9,787 |
Continuing operations [member] | 3rd party workers [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 6,164 | 7,239 | 8,098 |
Discontinued operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 43,497 |
Income from operations - Empl_3
Income from operations - Employees per geographical location (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 78,392 | 74,888 | 115,392 |
Continuing operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 78,392 | 74,888 | 71,895 |
Continuing operations [member] | Country of domicile [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 11,679 | 11,427 | 11,308 |
Continuing operations [member] | Foreign countries [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 66,713 | 63,460 | 60,587 |
Discontinued operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 43,497 |
Income from operations - Deprec
Income from operations - Depreciation and amortization (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||||
Total depreciation and amortisation expense | [2] | € 1,402 | [1] | € 1,089 | [3] | € 1,025 | [1] |
Capitalised development expenditure [member] | |||||||
Income from operations - Text Details (Detail) [Line Items] | |||||||
Amortisation expense | [1],[4] | 332 | 240 | 277 | |||
Computer software [member] | |||||||
Income from operations - Text Details (Detail) [Line Items] | |||||||
Amortisation expense | [1],[4] | 75 | 64 | 50 | |||
Other intangible assets [member] | |||||||
Income from operations - Text Details (Detail) [Line Items] | |||||||
Amortisation expense | [1],[4] | 350 | 347 | 260 | |||
Property, plant and equipment [member] | |||||||
Income from operations - Text Details (Detail) [Line Items] | |||||||
Depreciation expense | [1],[4] | € 645 | € 438 | € 437 | |||
[1] | Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment | ||||||
[2] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | ||||||
[3] | Impact of IFRS 16 adoption. Reference is made to Significant accounting policies Property, plant and equipment | ||||||
[4] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations - Agreed
Income from operations - Agreed fees (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | € 14.4 | € 12.2 | € 17.9 | |
Audit-related fees | [1] | 0.7 | 1 | 1.5 |
Total auditor's remuneration | 15.1 | 13.2 | 19.4 | |
Consolidated financial statements [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 11.8 | 9.6 | 13.4 | |
Other services [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0.3 | 0.6 | 0.8 | |
Statutory financial statement [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 2.6 | 2.6 | 4.5 | |
Sustainability assurance [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0.4 | 0.4 | 0.7 | |
EY Network [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 6 | 5 | 8.9 | |
Audit-related fees | [1] | 0.2 | 0.4 | 0.7 |
Total auditor's remuneration | 6.2 | 5.4 | 9.6 | |
EY Network [Member] | Consolidated financial statements [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 3.4 | 2.4 | 4.4 | |
EY Network [Member] | Other services [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0.2 | 0.4 | 0.7 | |
EY Network [Member] | Statutory financial statement [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 2.6 | 2.6 | 4.5 | |
EY NL [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | [2] | 8.4 | 7.2 | 9 |
Audit-related fees | [1],[2] | 0.5 | 0.6 | 0.8 |
Total auditor's remuneration | [2] | 8.9 | 7.8 | 9.7 |
EY NL [Member] | Consolidated financial statements [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | [2] | 8.4 | 7.2 | 9 |
EY NL [Member] | Other services [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | [2] | 0.1 | 0.2 | 0.1 |
EY NL [Member] | Sustainability assurance [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | [2] | € 0.4 | € 0.4 | € 0.7 |
[1] | Also known as Assurance fees | |||
[2] | Ernst & Young Accountants LLP |
Income from operations - Other
Income from operations - Other business income (expenses) (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income from operations [Abstract] | ||||
Gains on disposals of investments | € 69 | € 45 | € 15 | |
Losses on disposals of investments | 2 | 0 | 5 | |
Gains on disposals of non-current assets | 5 | 20 | 96 | |
Losses on disposals of non-current assets | 0 | 1 | 1 | |
Gains on disposals of other remaining business | 81 | 23 | 41 | |
Losses on disposals of other remaining business | 88 | 32 | 62 | |
Impairment of goodwill | [1] | 97 | 9 | |
Other gains (losses), total | (34) | 55 | 76 | |
Other income, total | 155 | 88 | 152 | |
Other expense, by function, total | € 188 | € 33 | € 76 | |
[1] | Further information on goodwill movement can be found in Goodwill |
Financial income and expenses -
Financial income and expenses - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial income and expenses - Text Details (Detail) [Line Items] | |||
Finance income on net investment in finance lease | € 4 | ||
Increase (decrease) in financial income expense | 96 | € (76) | |
Financial charges related to early redemption of bonds | 46 | ||
Increase (decrease) in net interest expense | 12 | (25) | |
Interest expense on lease liabilities | 6 | 7 | € 8 |
Finance income (cost) | (117) | € (213) | € (137) |
IFRS 16 [Member] | |||
Financial income and expenses - Text Details (Detail) [Line Items] | |||
Interest expense on lease liabilities | € 20 |
Financial income and expenses_2
Financial income and expenses - Financial income and expenses (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financial income and expenses [Abstract] | ||||
Interest income | € 27 | € 31 | € 40 | |
Interest income on loans and receivables | [1] | 10 | 8 | 12 |
Interest income on cash and cash equivalents | 17 | 22 | 28 | |
Dividend Income From Financial Assets | 52 | 2 | 64 | |
Net Gains From Disposal Of Financial Assets | 2 | 6 | 1 | |
Gains (losses) on financial assets at fair value through profit or loss | 17 | 1 | 7 | |
Other finance income (cost) | 17 | 12 | 14 | |
Finance income, total | [2] | 117 | 51 | 126 |
Interest expense | 196 | 188 | 222 | |
Interest expense on borrowings | 167 | 158 | 177 | |
Interest expense on lease liabilities | 6 | 7 | 8 | |
Interest expense (income), net defined benefit liability (asset) | 22 | 23 | 37 | |
Provision-related accretion and interest | 22 | 15 | 22 | |
Net foreign exchange loss | 2 | 2 | 2 | |
Impairment loss on financial assets | 0 | 0 | 2 | |
Other finance cost | 13 | 58 | 15 | |
Finance costs, total | [2] | 233 | 264 | 263 |
Finance income (cost), total | € (117) | € (213) | € (137) | |
[1] | Interest income from net investments in finance leases amounts to EUR 4 million | |||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Income taxes - Text Details (De
Income taxes - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income taxes - Text Details (Detail) [Line Items] | ||||
Tax expense (income) | [1] | € 337 | € 193 | € 349 |
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | € 9 | € 14 | € 182 | |
Applicable tax rate | 25.00% | 25.00% | 25.00% | |
Net deferred tax assets | € 1,721 | € 1,676 | ||
Deferred tax assets | 1,865 | 1,828 | ||
Deferred tax liabilities | 143 | 152 | ||
Deferred tax asset when utilisation is dependent on future taxable profits in excess of profits from reversal of taxable temporary differences and entity has suffered loss in jurisdiction to which deferred tax asset relates | 239 | 203 | ||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 327 | 186 | ||
Deductible temporary differences for which no deferred tax asset is recognised | 31 | 37 | ||
Other tax liability | [2] | € 186 | € 181 | |
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||
[2] | Due to IFRIC 23 adoption, non-current tax liabilities are now shown as a separate caption on the balance sheet. For more details refer to the Significant accounting policies |
Income taxes - Income tax expen
Income taxes - Income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income taxes - Text Details (Detail) [Line Items] | ||||
Income before taxes continuing operations | [1] | € 1,528 | € 1,505 | € 1,381 |
Current tax expense (income) and adjustments for current tax of prior periods | 324 | 314 | 272 | |
Deferred tax expense (income) recognised in profit or loss | (13) | 121 | (77) | |
Total tax expense (income) | [2] | 337 | 193 | 349 |
Foreign countries [member] | ||||
Income taxes - Text Details (Detail) [Line Items] | ||||
Income before taxes continuing operations | 744 | 869 | 451 | |
Current tax expense (income) and adjustments for current tax of prior periods | 297 | 289 | 258 | |
Deferred tax expense (income) recognised in profit or loss | (57) | (105) | (73) | |
Total tax expense (income) | 240 | 184 | 184 | |
NETHERLANDS | ||||
Income taxes - Text Details (Detail) [Line Items] | ||||
Income before taxes continuing operations | 784 | 636 | 929 | |
Current tax expense (income) and adjustments for current tax of prior periods | 26 | 25 | 15 | |
Deferred tax expense (income) recognised in profit or loss | 71 | (16) | 150 | |
Total tax expense (income) | € 97 | € 9 | € 165 | |
[1] | Income before tax excludes the result of investments in associates. | |||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Income taxes - Current income t
Income taxes - Current income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes [Abstract] | |||
Current tax expense (income) | € 322 | € 318 | € 275 |
Adjustments for current tax of prior periods | 2 | (4) | (3) |
Current tax expense (income) and adjustments for current tax of prior periods | € 324 | € 314 | € 272 |
Income taxes - Deferred income
Income taxes - Deferred income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes [Abstract] | |||
Changes to Recognition of Tax Loss and Credit Carry Forwards | € 59 | € (2) | € 23 |
Changes to Recognition of Temporary Differences | (32) | 4 | 35 |
Adjustments for deferred tax of prior periods | (7) | 15 | 6 |
Deferred tax expense (income) relating to tax rate changes or imposition of new taxes | 2 | (26) | (72) |
Deferred tax expense (income) relating to origination and reversal of temporary differences | (35) | 130 | (69) |
Deferred tax expense (income) recognised in profit or loss, total | € (13) | € 121 | € (77) |
Income taxes - Effective income
Income taxes - Effective income tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes [Abstract] | |||
Weighted average statutory income tax rate | 25.20% | 24.90% | 24.50% |
Recognition of previously unrecognized tax loss and credit carryforwards rate | (3.90%) | (0.40%) | (2.30%) |
Unrecognized tax loss and credit carryforwards rate | 0.10% | 0.50% | 0.60% |
Changes to Recognition of Temporary Differences Rate | 2.10% | (0.30%) | (2.60%) |
Tax rate effect of revenues exempt from taxation | (9.50%) | (11.90%) | (9.80%) |
Tax rate effect of expense not deductible in determining taxable profit (tax loss) | 5.30% | 3.70% | 6.40% |
Withholding and other taxes | 3.70% | 4.50% | 4.00% |
Tax rate effect from change in tax rate | (0.10%) | 1.80% | 5.20% |
Tax rate effect of adjustments for current tax of prior periods | 0.60% | (1.30%) | (0.60%) |
Tax expenses (benefit) due to other tax liabilities | (1.60%) | (8.60%) | (1.70%) |
Other tax rate effects for reconciliation between accounting profit and tax expense (income) | 0.20% | (0.10%) | 1.50% |
Average effective tax rate | 22.10% | 12.80% | 25.30% |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax expense (income) recognised in profit or loss | € (13) | € 121 | € (77) | ||
Net deferred tax assets | 1,721 | 1,676 | |||
Deferred tax assets on taxLoss carryforwards [Member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (620) | (824) | (819) | ||
Deferred tax expense (income) recognised in profit or loss | (231) | 11 | |||
Other changes in deferred tax assets and liabilities | 27 | [1] | (6) | [2] | |
Net deferred tax assets | 620 | 824 | |||
Intangible assets and goodwill [member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (132) | 162 | 383 | ||
Deferred tax expense (income) recognised in profit or loss | 317 | 299 | |||
Other changes in deferred tax assets and liabilities | (23) | [1] | (78) | [2] | |
Net deferred tax assets | 280 | 90 | |||
Net deferred tax liabilities | 148 | 252 | |||
Inventories [Member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (252) | (257) | (231) | ||
Deferred tax expense (income) recognised in profit or loss | (6) | 18 | |||
Other changes in deferred tax assets and liabilities | 1 | [1] | 8 | [2] | |
Net deferred tax assets | 259 | 265 | |||
Net deferred tax liabilities | 7 | 8 | |||
Net deferred tax assets [Member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (1,721) | (1,676) | (1,565) | ||
Deferred tax expense (income) recognised in profit or loss | (13) | 121 | |||
Other changes in deferred tax assets and liabilities | 59 | [1] | (10) | [2] | |
Net deferred tax assets | 1,865 | 1,828 | |||
Net deferred tax liabilities | 143 | 152 | |||
Other assets [member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (56) | (50) | (74) | ||
Deferred tax expense (income) recognised in profit or loss | (15) | (38) | |||
Other changes in deferred tax assets and liabilities | 21 | [1] | 15 | [2] | |
Net deferred tax assets | 90 | 77 | |||
Net deferred tax liabilities | 33 | 27 | |||
Other liabilities [Member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (334) | (428) | (536) | ||
Deferred tax expense (income) recognised in profit or loss | (119) | (137) | |||
Other changes in deferred tax assets and liabilities | 25 | [1] | 30 | [2] | |
Net deferred tax assets | 436 | 537 | |||
Net deferred tax liabilities | 102 | 109 | |||
Pensions and other employee benefits [Member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (269) | (267) | (265) | ||
Deferred tax expense (income) recognised in profit or loss | 4 | (17) | |||
Other changes in deferred tax assets and liabilities | (1) | [1] | 19 | [2] | |
Net deferred tax assets | 270 | 269 | |||
Net deferred tax liabilities | 1 | 2 | |||
Property, plant and equipment [member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Deferred tax liability (asset), total | (58) | (12) | € (23) | ||
Deferred tax expense (income) recognised in profit or loss | 38 | (13) | |||
Other changes in deferred tax assets and liabilities | 8 | [1] | 2 | [2] | |
Net deferred tax assets | 67 | 32 | |||
Net deferred tax liabilities | 9 | 20 | |||
Set-off deffered tax positions [Member] | |||||
Income taxes - Text Details (Detail) [Line Items] | |||||
Net deferred tax assets | (156) | (265) | |||
Net deferred tax liabilities | € (156) | € (265) | |||
[1] | Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation differences, acquisitions and divestments. | ||||
[2] | Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation differences, acquisitions and divestments. |
Income taxes - Expiry years of
Income taxes - Expiry years of net operating loss and credit carryforwards (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | € 5,141 | € 5,990 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 2,826 | 3,077 |
Later than five years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 1,173 | 2,312 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 12 | 36 |
Later than four years and not later than five years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 519 | 18 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 3 | 6 |
Later than one year and not later than two years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 6 | 3 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 3 | 1 |
Later than three years and not later than four years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 14 | 1,911 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 7 | 1,906 |
Later than two years and not later than three years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 1,680 | 16 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 1,679 | 4 |
Not later than one year [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 3 | 2 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 0 | 1 |
Unlimited [Member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 1,746 | € 1,728 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | € 1,123 |
Earnings per share - Earnings p
Earnings per share - Earnings per share (Detail) - EUR (€) € / shares in Units, € in Millions | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Earnings per share [abstract] | ||||||||
Income from continuing operations | € 1,192 | [1],[2] | € 1,310 | [1],[2] | € 1,028 | [3] | ||
Profit (loss) from continuing operations attributable to non-controlling interests | [3] | 5 | 7 | 11 | ||||
Profit (loss) from continuing operations attributable to ordinary equity holders of parent entity | [3] | 1,186 | 1,303 | 1,017 | ||||
Profit (loss) from discontinued operations, total | [4] | (19) | [1],[2] | (213) | [1],[2] | 843 | [3],[5] | |
Profit (loss) from discontinued operations attributable to non-controlling interests | [3] | 203 | ||||||
Income from discontinued operations attributable to owners of parent | [3] | (19) | 213 | 639 | ||||
Profit (loss), attributable to owners of parent, total | [3] | € 1,167 | € 1,090 | € 1,657 | ||||
Weighted average number of ordinary shares outstanding | [3] | 902,981,911 | 922,987,190 | 928,797,650 | ||||
Incremental shares from assumed conversions of options | [3] | 1,288,001 | 2,007,703 | 3,161,267 | ||||
Incremental shares from assumed conversions of performance shares | [3] | 5,896,049 | 8,632,652 | 10,757,785 | ||||
Incremental shares from assumed conversions of restricted share rights | [3] | 2,524,606 | 2,223,382 | 2,008,162 | ||||
Incremental shares from assumed conversions of forward contracts | [3] | 407,193 | ||||||
Dilutive potential common shares | [3] | 9,708,656 | 12,863,738 | 16,334,406 | ||||
Diluted weighted average number of shares (after deduction of treasury shares) during the year | [3] | 912,690,567 | 935,850,928 | 945,132,056 | ||||
Basic earnings (loss) per share from continuing operations attributable to shareholders | [3] | € 1.31 | € 1.41 | € 1.10 | ||||
Basic earnings (loss) per share from discontinued operations | [3] | (0.02) | (0.23) | 0.69 | ||||
Basic earnings (loss) per share | [3] | 1.29 | 1.18 | 1.78 | ||||
Diluted earnings (loss) per share from continuing operations attributable to shareholders | [3] | 1.30 | 1.39 | 1.08 | ||||
Diluted earnings (loss) per share from discontinued operations | [3] | (0.02) | (0.23) | 0.68 | ||||
Diluted earnings (loss) per share | [3] | 1.28 | 1.16 | 1.75 | ||||
Dividends paid, ordinary shares per share | € 0.85 | € 0.85 | [3] | € 0.80 | [3] | € 0.80 | [3] | |
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||
[3] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||
[4] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||||
[5] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Property, plant and equipment -
Property, plant and equipment - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Property, plant and equipment - Text Details (Detail) [Line Items] | |||||
Land | € 51 | € 56 | |||
Property, plant and equipment | € 2,866 | [1] | 1,712 | [1] | € 1,591 |
IFRS 16 [Member] | |||||
Property, plant and equipment - Text Details (Detail) [Line Items] | |||||
Property, plant and equipment | € 760 | ||||
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies |
Property, plant and equipment_2
Property, plant and equipment - Property, plant and equipment (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | € 1,712 | [1] | € 1,591 | |
IFRS 16 adjustment | [2] | (33) | ||
Additions other than through business combinations, property, plant and equipment | 546 | |||
Assets available for use | 1 | 0 | ||
Acquisitions through business combinations, property, plant and equipment | 2 | |||
Depreciation, property, plant and equipment | 409 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 30 | |||
Reclassifications | (1) | 0 | ||
Increase (decrease) through net exchange differences, property, plant and equipment | 13 | |||
Total increase (decrease) in property, plant and equipment | 121 | |||
Property, plant and equipment at end of period | [1] | 2,866 | 1,712 | |
IFRS 16 [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 760 | |||
Property, plant and equipment at end of period | 760 | |||
Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,712 | |||
IFRS 16 adjustment | (334) | |||
Additions other than through business combinations, property, plant and equipment | 505 | |||
Assets available for use | (9) | |||
Acquisitions through business combinations, property, plant and equipment | 28 | |||
Depreciation, property, plant and equipment | 310 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 40 | |||
Reclassifications | (99) | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 31 | |||
Total increase (decrease) in property, plant and equipment | 105 | |||
Property, plant and equipment at end of period | 1,483 | 1,712 | ||
Owned [member] | IFRS 16 [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,378 | |||
Property, plant and equipment at end of period | 1,378 | |||
Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,094 | |||
Additions other than through business combinations, property, plant and equipment | 532 | |||
Assets available for use | 7 | |||
Depreciation, property, plant and equipment | 293 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 2 | |||
Reclassifications | 68 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | (23) | |||
Total increase (decrease) in property, plant and equipment | 289 | |||
Property, plant and equipment at end of period | 1,383 | 1,094 | ||
Construction in progress [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 203 | 140 | ||
Additions other than through business combinations, property, plant and equipment | 337 | |||
Assets available for use | (275) | |||
Total increase (decrease) in property, plant and equipment | 63 | |||
Property, plant and equipment at end of period | 203 | |||
Construction in progress [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 203 | |||
Additions other than through business combinations, property, plant and equipment | 425 | |||
Assets available for use | (306) | |||
Acquisitions through business combinations, property, plant and equipment | 1 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||
Reclassifications | 1 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 0 | |||
Total increase (decrease) in property, plant and equipment | 120 | |||
Property, plant and equipment at end of period | 323 | 203 | ||
Construction in progress [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Additions other than through business combinations, property, plant and equipment | 3 | |||
Assets available for use | (3) | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||
Reclassifications | 1 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 0 | |||
Total increase (decrease) in property, plant and equipment | 1 | |||
Property, plant and equipment at end of period | 1 | |||
Land and buildings [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 621 | 584 | ||
Additions other than through business combinations, property, plant and equipment | 20 | |||
Assets available for use | 68 | |||
Acquisitions through business combinations, property, plant and equipment | 0 | |||
Depreciation, property, plant and equipment | 56 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 5 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 11 | |||
Total increase (decrease) in property, plant and equipment | 37 | |||
Property, plant and equipment at end of period | 621 | |||
Land and buildings [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 621 | |||
IFRS 16 adjustment | (80) | |||
Additions other than through business combinations, property, plant and equipment | 5 | |||
Assets available for use | 51 | |||
Depreciation, property, plant and equipment | 30 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 17 | |||
Reclassifications | (74) | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 4 | |||
Total increase (decrease) in property, plant and equipment | (61) | |||
Property, plant and equipment at end of period | 481 | 621 | ||
Land and buildings [member] | Owned [member] | IFRS 16 [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 541 | |||
Property, plant and equipment at end of period | 541 | |||
Land and buildings [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 769 | |||
IFRS 16 adjustment | 769 | |||
Additions other than through business combinations, property, plant and equipment | 373 | |||
Assets available for use | 6 | |||
Depreciation, property, plant and equipment | 157 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 1 | |||
Reclassifications | 47 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | (9) | |||
Total increase (decrease) in property, plant and equipment | 260 | |||
Property, plant and equipment at end of period | 1,029 | 769 | ||
Machinery [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 504 | 491 | ||
Additions other than through business combinations, property, plant and equipment | 126 | |||
Assets available for use | 99 | |||
Acquisitions through business combinations, property, plant and equipment | (5) | |||
Depreciation, property, plant and equipment | 191 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 13 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | (2) | |||
Total increase (decrease) in property, plant and equipment | 11 | 13 | ||
Property, plant and equipment at end of period | 504 | |||
Machinery [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 504 | |||
IFRS 16 adjustment | (209) | |||
Additions other than through business combinations, property, plant and equipment | 34 | |||
Assets available for use | 108 | |||
Acquisitions through business combinations, property, plant and equipment | 0 | |||
Depreciation, property, plant and equipment | 123 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 14 | |||
Reclassifications | 5 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 9 | |||
Total increase (decrease) in property, plant and equipment | 19 | |||
Property, plant and equipment at end of period | 314 | 504 | ||
Machinery [member] | Owned [member] | IFRS 16 [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 295 | |||
Property, plant and equipment at end of period | 295 | |||
Machinery [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 209 | |||
IFRS 16 adjustment | 209 | |||
Additions other than through business combinations, property, plant and equipment | 96 | |||
Depreciation, property, plant and equipment | 80 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 1 | |||
Total increase (decrease) in property, plant and equipment | 16 | |||
Property, plant and equipment at end of period | 225 | 209 | ||
Other equipment [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 383 | 376 | ||
Additions other than through business combinations, property, plant and equipment | 64 | |||
Assets available for use | 108 | |||
Acquisitions through business combinations, property, plant and equipment | 7 | |||
Depreciation, property, plant and equipment | 162 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 12 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 4 | |||
Total increase (decrease) in property, plant and equipment | 7 | |||
Property, plant and equipment at end of period | 383 | |||
Other equipment [Member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 383 | |||
IFRS 16 adjustment | (45) | |||
Additions other than through business combinations, property, plant and equipment | 40 | |||
Assets available for use | 138 | |||
Acquisitions through business combinations, property, plant and equipment | 27 | |||
Depreciation, property, plant and equipment | 157 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 9 | |||
Reclassifications | (30) | |||
Increase (decrease) through net exchange differences, property, plant and equipment | 18 | |||
Total increase (decrease) in property, plant and equipment | 26 | |||
Property, plant and equipment at end of period | 365 | 383 | ||
Other equipment [Member] | Owned [member] | IFRS 16 [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 338 | |||
Property, plant and equipment at end of period | 338 | |||
Other equipment [Member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 116 | |||
IFRS 16 adjustment | 116 | |||
Additions other than through business combinations, property, plant and equipment | 59 | |||
Assets available for use | 4 | |||
Depreciation, property, plant and equipment | 57 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 1 | |||
Reclassifications | 20 | |||
Increase (decrease) through net exchange differences, property, plant and equipment | (14) | |||
Property, plant and equipment at end of period | 127 | 116 | ||
Power generating assets [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
IFRS 16 adjustment | 1,094 | |||
Accumulated depreciation, amortisation and impairment [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at end of period | (2,536) | |||
Accumulated depreciation, amortisation and impairment [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (286) | |||
Property, plant and equipment at end of period | (716) | (286) | ||
Accumulated depreciation, amortisation and impairment [member] | Land and buildings [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (528) | |||
Property, plant and equipment at end of period | (395) | (528) | ||
Accumulated depreciation, amortisation and impairment [member] | Land and buildings [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (44) | |||
Property, plant and equipment at end of period | (326) | (44) | ||
Accumulated depreciation, amortisation and impairment [member] | Machinery [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (958) | |||
Property, plant and equipment at end of period | (957) | (958) | ||
Accumulated depreciation, amortisation and impairment [member] | Machinery [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (206) | |||
Property, plant and equipment at end of period | (285) | (206) | ||
Accumulated depreciation, amortisation and impairment [member] | Office equipment [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (36) | |||
Property, plant and equipment at end of period | (36) | |||
Accumulated depreciation, amortisation and impairment [member] | Other equipment [Member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (1,104) | |||
Property, plant and equipment at end of period | (1,184) | (1,104) | ||
Accumulated depreciation, amortisation and impairment [member] | Other equipment [Member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at end of period | (105) | |||
Accumulated depreciation and amortisation [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 2,876 | 2,818 | ||
Property, plant and equipment at end of period | 2,876 | |||
Accumulated depreciation and amortisation [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | (2,590) | |||
Property, plant and equipment at end of period | (2,590) | |||
Accumulated depreciation and amortisation [member] | Land and buildings [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 572 | 527 | ||
Property, plant and equipment at end of period | 572 | |||
Accumulated depreciation and amortisation [member] | Machinery [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,164 | 1,217 | ||
Property, plant and equipment at end of period | 1,164 | |||
Accumulated depreciation and amortisation [member] | Other equipment [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,140 | 1,074 | ||
Property, plant and equipment at end of period | 1,140 | |||
Gross carrying amount [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 4,588 | 4,408 | ||
Property, plant and equipment at end of period | 4,588 | |||
Gross carrying amount [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 3,967 | |||
Property, plant and equipment at end of period | 4,019 | 3,967 | ||
Gross carrying amount [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,381 | |||
Property, plant and equipment at end of period | 2,099 | 1,381 | ||
Gross carrying amount [member] | Construction in progress [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 203 | 140 | ||
Property, plant and equipment at end of period | 203 | |||
Gross carrying amount [member] | Construction in progress [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 203 | |||
Property, plant and equipment at end of period | 323 | 203 | ||
Gross carrying amount [member] | Construction in progress [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at end of period | 1 | |||
Gross carrying amount [member] | Land and buildings [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,193 | 1,111 | ||
Property, plant and equipment at end of period | 1,193 | |||
Gross carrying amount [member] | Land and buildings [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,069 | |||
Property, plant and equipment at end of period | 876 | 1,069 | ||
Gross carrying amount [member] | Land and buildings [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 813 | |||
Property, plant and equipment at end of period | 1,355 | 813 | ||
Gross carrying amount [member] | Machinery [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,669 | 1,708 | ||
Property, plant and equipment at end of period | 1,669 | |||
Gross carrying amount [member] | Machinery [member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,253 | |||
Property, plant and equipment at end of period | 1,272 | 1,253 | ||
Gross carrying amount [member] | Machinery [member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 415 | |||
Property, plant and equipment at end of period | 510 | 415 | ||
Gross carrying amount [member] | Other equipment [Member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,523 | 1,449 | ||
Property, plant and equipment at end of period | 1,523 | |||
Gross carrying amount [member] | Other equipment [Member] | Owned [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 1,442 | |||
Property, plant and equipment at end of period | 1,548 | 1,442 | ||
Gross carrying amount [member] | Other equipment [Member] | Right-of-use assets [member] | ||||
Property, plant and equipment - Text Details (Detail) [Line Items] | ||||
Property, plant and equipment at beginning of period | 152 | |||
Property, plant and equipment at end of period | € 233 | € 152 | ||
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies | |||
[2] | Impact of IFRS 16 adoption. Reference is made to the Significant accounting policies |
Property, plant and equipment_3
Property, plant and equipment - Useful lives of property, plant and equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings [member] | Bottom of range [member] | |
Property, plant and equipment - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Buildings [member] | Top of range [member] | |
Property, plant and equipment - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 50 years |
Machinery [member] | Bottom of range [member] | |
Property, plant and equipment - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Machinery [member] | Top of range [member] | |
Property, plant and equipment - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 20 years |
Other property, plant and equipment [member] | Bottom of range [member] | |
Property, plant and equipment - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 1 year |
Other property, plant and equipment [member] | Top of range [member] | |
Property, plant and equipment - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Goodwill - Text Details (Detail
Goodwill - Text Details (Detail) € in Millions | Dec. 31, 2019EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | [1] | Sep. 30, 2019EUR (€) | Jan. 31, 2019EUR (€) | |
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Impairment loss recognised in profit or loss, goodwill | € 97 | € 97 | [1],[2] | € 9 | ||||
Goodwill | € 8,654 | 8,654 | € 8,503 | |||||
Neuro [member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Impairment loss recognised in profit or loss, goodwill | € 19 | |||||||
Population Health Management [member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Discount rate applied to cash flow projections | 10.10% | 10.10% | ||||||
Initial forecast period | 11.50% | 11.50% | ||||||
Growth rate used to extrapolate cash flow projections | 10.40% | 10.40% | ||||||
Sensitivity pre-tax discount rate | 50 | |||||||
Sensitivity compound long-term sales growth | 180 | |||||||
Sensitivity terminal value | 9.00% | |||||||
Population Insights & Care [member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Impairment loss recognised in profit or loss, goodwill | € 78 | |||||||
Recoverable amount of asset or cash-generating unit | € 158 | € 158 | ||||||
Goodwill | € 236 | |||||||
Discount rate applied to cash flow projections | 10.10% | 10.10% | ||||||
EPDSolutionsLtd[Member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Goodwill | € 271 | € 271 | € 271 | |||||
Discount rate applied to cash flow projections | 14.40% | 14.40% | ||||||
Goodwill [member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Acquisitions through business combinations, intangible assets and goodwill | € 83 | 465 | ||||||
Increase (decrease) through net exchange differences, intangible assets and goodwill | 165 | 310 | ||||||
Goodwill [member] | Neuro [member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Goodwill | € 19 | 19 | ||||||
Goodwill [member] | Population Health Management [member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Goodwill | € 176 | € 176 | ||||||
Goodwill [member] | EPDSolutionsLtd[Member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Acquisitions through business combinations, intangible assets and goodwill | 262 | |||||||
Goodwill [member] | Remaining acquisitions (excluding EPD) [Member] | ||||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||||
Acquisitions through business combinations, intangible assets and goodwill | € 203 | |||||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Goodwill - Goodwill (Detail)
Goodwill - Goodwill (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Goodwill - Text Details (Detail) [Line Items] | ||||||
Impairment loss recognised in profit or loss, goodwill | € 97 | € 97 | [1],[2] | € 9 | [1] | |
Goodwill [member] | ||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||
Intangible assets and goodwill at beginning of period | 8,503 | € 7,731 | ||||
Acquisitions through business combinations, intangible assets and goodwill, total | 83 | 465 | ||||
Decrease through classified as held for sale, intangible assets and goodwill | 0 | 3 | ||||
Increase (decrease) through net exchange differences, intangible assets and goodwill | 165 | 310 | ||||
Intangible assets and goodwill at end of period | 8,654 | 8,654 | 8,503 | 7,731 | ||
Accumulated impairment [member] | Goodwill [member] | ||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||
Intangible assets and goodwill at beginning of period | 1,405 | 1,343 | ||||
Impairment loss recognised in profit or loss, goodwill | 97 | |||||
Intangible assets and goodwill at end of period | 1,528 | 1,528 | 1,405 | 1,343 | ||
Gross carrying amount [member] | Goodwill [member] | ||||||
Goodwill - Text Details (Detail) [Line Items] | ||||||
Intangible assets and goodwill at beginning of period | 9,908 | 9,074 | ||||
Intangible assets and goodwill at end of period | € 10,182 | € 10,182 | € 9,908 | € 9,074 | ||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Goodwill - Goodwill allocated t
Goodwill - Goodwill allocated to the cash-generating units (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill - Text Details (Detail) [Line Items] | |||
Goodwill | € 8,654 | € 8,503 | |
Monitoring and Analytics [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Goodwill | 1,360 | 1,354 | |
Sleep & Respiratory Care [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Goodwill | 2,071 | 1,925 | |
Goodwill [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 8,654 | 8,503 | € 7,731 |
Goodwill [member] | Image-Guided Therapy [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 2,673 | 2,357 | |
Goodwill [member] | Cash-generating units [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 8,654 | 8,503 | |
Goodwill [member] | Other (units carrying a non-significant goodwill balance) [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | € 2,550 | € 2,867 |
Goodwill - Key assumptions (Det
Goodwill - Key assumptions (Detail) | Dec. 31, 2019 | Dec. 31, 2018 | |||
Image-Guided Therapy [Member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | 9.30% | [1] | 8.10% | [2] | |
Growth rate used to extrapolate cash flow projections | 6.40% | [1],[3] | 5.20% | [2],[4] | |
Used to calculate terminal value | 2.50% | [1],[5] | 2.30% | [2],[6] | |
Discount rate applied to cash flow projections | 8.80% | 9.30% | |||
Monitoring and Analytics [member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | [1] | 4.60% | |||
Growth rate used to extrapolate cash flow projections | [1],[3] | 3.80% | |||
Used to calculate terminal value | [1],[5] | 2.50% | |||
Discount rate applied to cash flow projections | 10.10% | ||||
Patient Care & Monitoring Solutions [Member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | [2] | 6.50% | |||
Growth rate used to extrapolate cash flow projections | [2],[4] | 4.00% | |||
Used to calculate terminal value | [2],[6] | 2.30% | |||
Discount rate applied to cash flow projections | 9.90% | ||||
Sleep & Respiratory Care [Member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | 8.10% | [1] | 8.40% | [2] | |
Growth rate used to extrapolate cash flow projections | 4.80% | [1],[3] | 4.80% | [2],[4] | |
Used to calculate terminal value | 2.50% | [1],[5] | 2.30% | [2],[6] | |
Discount rate applied to cash flow projections | 9.70% | 10.60% | |||
[1] | Compound sales growth rate is the annualized steady nominal growth rate over the forecast period | ||||
[2] | Compound sales growth rate is the annualized steady nominal growth rate over the forecast period | ||||
[3] | Also referred to later in the text as compound long-term sales growth rate | ||||
[4] | Also referred to later in the text as compound long-term sales growth rate | ||||
[5] | The historical long-term growth rate is only applied to the first year after the 4 year extrapolation period, after which no further growth is assumed for the terminal value calculation | ||||
[6] | The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation |
Intangible assets excluding g_3
Intangible assets excluding goodwill - Text Details (Detail) € in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | € 77 | € 415 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 171 | 101 | |
Intangible assets other than goodwill | € 3,466 | € 3,589 | € 3,322 |
Brand names, customer relationships, technology and other intangible assets [Member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Weighted average expected remaining life | 8.2 | 9.3 | |
Brand names [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | € 3 | € 11 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 52 | |
Intangible assets other than goodwill | 184 | 205 | 278 |
Brand names [member] | Image Guided Therapy business group [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets other than goodwill | € 333 | ||
Remaining amortisation period of intangible assets material to entity | 13 years | ||
Customer-related intangible assets [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | € 56 | 17 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 16 | |
Intangible assets other than goodwill | 890 | 934 | 1,004 |
Customer-related intangible assets [member] | Image Guided Therapy business group [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets other than goodwill | € 252 | ||
Remaining amortisation period of intangible assets material to entity | 18 years | ||
Customer-related intangible assets [member] | Sleep & Respiratory Care business group [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets other than goodwill | € 278 | ||
Remaining amortisation period of intangible assets material to entity | 5 years | ||
Product development [Member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | € 96 | € 16 | |
Intangible assets other than goodwill | 592 | 621 | 586 |
Product development [Member] | Diagnostic Imaging business group [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 56 | ||
Product development [Member] | Enterprise Diagnostic Informatics business group [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 34 | ||
Technology-based intangible assets [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | 24 | 330 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 66 | 9 | |
Intangible assets other than goodwill | € 961 | € 1,070 | € 824 |
Remaining amortisation period of intangible assets material to entity | 10 years | ||
Technology-based intangible assets [member] | Image Guided Therapy business group [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | € 50 |
Intangible assets excluding g_4
Intangible assets excluding goodwill - Intangible assets excluding goodwill (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | € 3,589 | € 3,322 |
Additions other than through business combinations, intangible assets other than goodwill | 497 | 408 |
Assets available for use | 1 | 0 |
Acquisitions through business combinations, intangible assets other than goodwill | 77 | 415 |
Amortisation, intangible assets other than goodwill | 587 | 549 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 171 | 101 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 59 | 94 |
Total increase (decrease) in intangible assets other than goodwill | (124) | 267 |
Intangible assets other than goodwill at end of period | 3,466 | 3,589 |
Brand names [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 205 | 278 |
Acquisitions through business combinations, intangible assets other than goodwill | 3 | 11 |
Amortisation, intangible assets other than goodwill | 31 | 34 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 52 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 7 | 3 |
Total increase (decrease) in intangible assets other than goodwill | (21) | (72) |
Intangible assets other than goodwill at end of period | 184 | 205 |
Computer software [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 204 | 174 |
Additions other than through business combinations, intangible assets other than goodwill | 129 | 92 |
Acquisitions through business combinations, intangible assets other than goodwill | 0 | 0 |
Amortisation, intangible assets other than goodwill | 75 | 59 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 5 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 0 | 2 |
Total increase (decrease) in intangible assets other than goodwill | 54 | 30 |
Intangible assets other than goodwill at end of period | 257 | 204 |
Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 934 | 1,004 |
Additions other than through business combinations, intangible assets other than goodwill | 0 | 7 |
Acquisitions through business combinations, intangible assets other than goodwill | 56 | 17 |
Amortisation, intangible assets other than goodwill | 119 | 114 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 16 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 20 | 36 |
Total increase (decrease) in intangible assets other than goodwill | (44) | (70) |
Intangible assets other than goodwill at end of period | 890 | 934 |
Other intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 75 | 21 |
Additions other than through business combinations, intangible assets other than goodwill | 4 | 1 |
Assets available for use | 0 | |
Acquisitions through business combinations, intangible assets other than goodwill | (5) | 56 |
Amortisation, intangible assets other than goodwill | 6 | 4 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 2 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | (9) | 3 |
Total increase (decrease) in intangible assets other than goodwill | (16) | 53 |
Intangible assets other than goodwill at end of period | 59 | 75 |
Product development construction in progress [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 481 | 436 |
Additions other than through business combinations, intangible assets other than goodwill | 338 | 295 |
Assets available for use | (296) | (256) |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 8 | 1 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 8 | 8 |
Total increase (decrease) in intangible assets other than goodwill | 41 | 45 |
Intangible assets other than goodwill at end of period | 523 | 481 |
Product development [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 621 | 586 |
Additions other than through business combinations, intangible assets other than goodwill | (1) | |
Assets available for use | 296 | 256 |
Amortisation, intangible assets other than goodwill | 229 | 221 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 96 | 16 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 0 | 15 |
Total increase (decrease) in intangible assets other than goodwill | (29) | 34 |
Intangible assets other than goodwill at end of period | 592 | 621 |
Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 1,070 | 824 |
Additions other than through business combinations, intangible assets other than goodwill | 28 | 14 |
Acquisitions through business combinations, intangible assets other than goodwill | 24 | 330 |
Amortisation, intangible assets other than goodwill | 127 | 116 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 66 | 9 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 32 | 27 |
Total increase (decrease) in intangible assets other than goodwill | (110) | 246 |
Intangible assets other than goodwill at end of period | 961 | 1,070 |
Accumulated depreciation, amortisation and impairment [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (5,408) | (4,720) |
Intangible assets other than goodwill at end of period | (6,113) | (5,408) |
Accumulated depreciation, amortisation and impairment [member] | Brand names [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (484) | (392) |
Intangible assets other than goodwill at end of period | (524) | (484) |
Accumulated depreciation, amortisation and impairment [member] | Computer software [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (480) | (431) |
Intangible assets other than goodwill at end of period | (527) | (480) |
Accumulated depreciation, amortisation and impairment [member] | Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,488) | (1,338) |
Intangible assets other than goodwill at end of period | (1,587) | (1,488) |
Accumulated depreciation, amortisation and impairment [member] | Other intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (93) | (84) |
Intangible assets other than goodwill at end of period | (94) | (93) |
Accumulated depreciation, amortisation and impairment [member] | Product development construction in progress [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (51) | (51) |
Intangible assets other than goodwill at end of period | (56) | (51) |
Accumulated depreciation, amortisation and impairment [member] | Product development [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,483) | (1,262) |
Intangible assets other than goodwill at end of period | (1,795) | (1,483) |
Accumulated depreciation, amortisation and impairment [member] | Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,330) | (1,161) |
Intangible assets other than goodwill at end of period | (1,530) | (1,330) |
Gross carrying amount [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 8,997 | 8,042 |
Intangible assets other than goodwill at end of period | 9,579 | 8,997 |
Gross carrying amount [member] | Brand names [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 689 | 670 |
Intangible assets other than goodwill at end of period | 709 | 689 |
Gross carrying amount [member] | Computer software [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 684 | 605 |
Intangible assets other than goodwill at end of period | 784 | 684 |
Gross carrying amount [member] | Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,421 | 2,342 |
Intangible assets other than goodwill at end of period | 2,476 | 2,421 |
Gross carrying amount [member] | Other intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 168 | 105 |
Intangible assets other than goodwill at end of period | 154 | 168 |
Gross carrying amount [member] | Product development construction in progress [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 532 | 487 |
Intangible assets other than goodwill at end of period | 578 | 532 |
Gross carrying amount [member] | Product development [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,103 | 1,848 |
Intangible assets other than goodwill at end of period | 2,387 | 2,103 |
Gross carrying amount [member] | Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,400 | 1,985 |
Intangible assets other than goodwill at end of period | € 2,491 | € 2,400 |
Intangible assets excluding g_5
Intangible assets excluding goodwill - Expected useful lives of intangible assets excluding goodwill (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Brand names [member] | Bottom of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 2 years |
Brand names [member] | Top of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 20 years |
Computer software [member] | Bottom of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 1 year |
Computer software [member] | Top of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 10 years |
Customer-related intangible assets [member] | Bottom of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 2 years |
Customer-related intangible assets [member] | Top of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 25 years |
Other intangible assets [member] | Bottom of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 1 year |
Other intangible assets [member] | Top of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 10 years |
Product development [Member] | Bottom of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Product development [Member] | Top of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 7 years |
Technology-based intangible assets [member] | Bottom of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Technology-based intangible assets [member] | Top of range [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 20 years |
Other financial assets - Text D
Other financial assets - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other financial assets - Text Details (Detail) [Line Items] | |||
Increase (Decrease) in current financial assets | € 435 | € 434 | |
Other current financial assets | 1 | 436 | € 2 |
Sale Of Shares Of Philips Lighting | 549 | ||
Reclassification adjustments on available-for-sale financial assets, before tax | € (1) | ||
Non-current investments in equity instruments designated at fair value through other comprehensive income | 45 | 172 | |
Sales redemptions | 174 | 116 | |
Cumulative gain (loss) on disposal of investments in equity instruments designated at fair value through other comprehensive income | 204 | 0 | |
Corindus Vascular Robotics [member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Cumulative gain (loss) on disposal of investments in equity instruments designated at fair value through other comprehensive income | 84 | ||
Financial assets at fair value through other comprehensive income, category [member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Sales redemptions | 109 | € 18 | |
Financial assets at fair value through other comprehensive income, category [member] | Diagnosis & Treatment [Member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Sales redemptions | 102 | ||
Signify Member | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Interest in entity | 16.50% | ||
Philips Lighting [Member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Reclassification adjustments on available-for-sale financial assets, before tax | € 114 |
Other financial assets - Other
Other financial assets - Other non-current financial assets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other financial assets - Text Details (Detail) [Line Items] | |||
Non-current financial assets at fair value through profit or loss | € 136 | € 116 | € 104 |
Non-current financial assets measured at fair value through other comprehensive income | 72 | 198 | 369 |
Non-current financial assets at amortised cost | 40 | 46 | 114 |
Other non-current financial assets, total | 248 | 360 | € 587 |
Acquisitions | 75 | 45 | |
Sales redemptions | 174 | 116 | |
Value adjustment through OCI | (33) | (164) | |
Value adjustment through P&L | 18 | (1) | |
Translation Differences And Other | 3 | 10 | |
Reclassifications | (1) | 0 | |
Financial assets at amortised cost, category [member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Acquisitions | 11 | 14 | |
Sales redemptions | 17 | 78 | |
Value adjustment through OCI | 0 | ||
Value adjustment through P&L | 0 | 0 | |
Translation Differences And Other | 0 | (4) | |
Reclassifications | (1) | 0 | |
Financial assets at fair value through other comprehensive income, category [member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Acquisitions | 15 | 1 | |
Sales redemptions | 109 | 18 | |
Value adjustment through OCI | (33) | (164) | |
Value adjustment through P&L | 0 | ||
Translation Differences And Other | 2 | 12 | |
Reclassifications | (1) | (2) | |
Financial assets at fair value through profit or loss, category [member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Acquisitions | 48 | 30 | |
Sales redemptions | 48 | 20 | |
Value adjustment through OCI | 0 | 0 | |
Value adjustment through P&L | 18 | (2) | |
Translation Differences And Other | 1 | 2 | |
Reclassifications | € 1 | € 2 |
Other assets - Text Details (De
Other assets - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets [Member] | ||
Other assets - Text Details (Detail) [Line Items] | ||
Accrued income | € 288 | € 276 |
Current prepaid expenses | 188 | 193 |
Non-current assets [member] | ||
Other assets - Text Details (Detail) [Line Items] | ||
Non-current prepaid expenses | € 47 | € 47 |
Inventories - Text Details (Det
Inventories - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories [Abstract] | ||
Inventory write-down | € 138 | € 159 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Current raw materials and current production supplies | € 901 | € 876 |
Current work in progress | 403 | 366 |
Current finished goods | 1,469 | 1,432 |
Total current inventories | € 2,773 | € 2,674 |
Receivables - Text Details (Det
Receivables - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables - Text Details (Detail) [Line Items] | ||
Signify indemnification | € 76 | |
Trade and other current receivables | 4,554 | € 4,035 |
Current trade receivables | 4,280 | 3,805 |
Other current receivables | 242 | 203 |
Credit notes applied to or netted with accounts receivable | 50 | |
Current contract assets | 247 | 232 |
Increase (decrease) driven by timing differences between billing terms and services provided, contract assets | 15 | |
Financial assets individually assessed for credit losses [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Allowance account for credit losses of financial assets | 200 | 181 |
Associates [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Other current receivables | 32 | 27 |
Diagnosis & Treatment [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Loans and advances to customers | 31 | 44 |
Current trade receivables | 1,905 | 1,738 |
Other US [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Insurance receivables | € 41 | € 41 |
Receivables - Accounts receivab
Receivables - Accounts receivables-net (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 4,280 | € 3,805 |
Connected Care [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 1,089 | 1,020 |
Diagnosis & Treatment [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 1,905 | 1,738 |
Other Segments [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 163 | 53 |
Personal Health [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 1,122 | € 995 |
Receivables - Aging analysis (D
Receivables - Aging analysis (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 4,280 | € 3,805 |
Current [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 3,591 | 3,222 |
Later than one month and not later than six months [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 333 | 270 |
Later than six months [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 105 | 85 |
Not later than one month [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 251 | € 228 |
Receivables - Allowance for acc
Receivables - Allowance for accounts receivable (Detail) - Doubtful accounts receivable [Member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Receivables - Text Details (Detail) [Line Items] | |||
Allowance account for credit losses of financial assets at beginning of period | € 194 | € 215 | |
Additional allowance recognised in profit or loss, allowance account for credit losses of financial assets | 23 | 28 | |
Utilisation, allowance account for credit losses of financial assets | [1] | 9 | 28 |
Increase (decrease) through other changes, allowance account for credit losses of financial assets | 3 | (21) | |
Allowance account for credit losses of financial assets at end of period | € 211 | € 194 | |
[1] | Write-offs for which an allowance was previously provided. |
Equity - Text Details (Detail)
Equity - Text Details (Detail) € / shares in Units, € in Millions | Dec. 31, 2019EUR (€)€ / sharesshares | Dec. 31, 2019EUR (€)€ / sharesshares | Dec. 31, 2018EUR (€)€ / sharesshares | Dec. 31, 2017EUR (€)€ / sharesshares | Dec. 31, 2016EUR (€) | |||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of shares for the settled forward contracts | shares | 4,000,000 | 4,000,000 | ||||||||
Increase (Decrease) retained earnings connected to long-term incentive | € 130 | |||||||||
Exercised Forward Contracts | 18,600,000 | |||||||||
Increase (Decrease) retained earnings connected to capital reduction | € 576 | |||||||||
The number of shares bought back after selling (unwinding) of options | shares | 1,497,675 | |||||||||
Dividends paid, ordinary shares per share | € / shares | € 0.85 | € 0.85 | [1] | € 0.80 | [1] | € 0.80 | [1] | |||
Dividends paid, ordinary shares | € 742 | |||||||||
Percentage of shareholders electing share dividend | 42.00% | 46.00% | 48.00% | |||||||
Number of shares issued | shares | 9,079,538 | 9,079,538 | 9,533,233 | 11,264,163 | ||||||
Settlement of cash dividend | € 453 | € 400 | € 384 | |||||||
Proposed dividend per common share | € / shares | € 0.85 | |||||||||
Shareholder equity subject to limitations | € 1,870 | € 1,870 | 1,558 | |||||||
Shareholder Equity Subject To Limitations Ordinary Shares | 179 | 179 | 185 | |||||||
Legal reserves required by Dutch law | 713 | 713 | 634 | |||||||
Currency translation differences | 978 | 978 | 739 | |||||||
Equity | € 12,625 | [2] | € 12,625 | [2] | € 12,117 | [2] | € 12,023 | [2] | € 13,453 | |
Capital reduction [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of treasury shares | shares | 18,600,000 | |||||||||
Long term incentive [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of treasury shares | shares | 6,000,000 | 6,000,000 | ||||||||
Euro Member Countries, Euro | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of call options unwound | 855,039 | 855,039 | ||||||||
Number of options outstanding | 1,168,600 | 1,168,600 | ||||||||
Dividends paid, ordinary shares | € 775 | € 738 | ||||||||
United States of America, Dollars | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of call options unwound | 642,636 | 642,636 | ||||||||
Number of options outstanding | 1,127,582 | 1,127,582 | ||||||||
Dividend distribution [Member] | Bottom of range [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Dividend payout ratio | 40.00% | |||||||||
Dividend distribution [Member] | Top of range [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Dividend payout ratio | 50.00% | |||||||||
Forward share repurchase contracts [Member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of shares for the unsettled (open) forward contracts | shares | 10,000,000 | 31,020,000 | ||||||||
Forward share repurchase contracts [Member] | Weighted average [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Price per share for the unsettled part | € / shares | € 31.89 | € 32.22 | ||||||||
Ordinary shares [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of shares authorised | shares | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||
Number of shares issued and fully paid | shares | 896,733,721 | 896,733,721 | 926,195,539 | 940,909,027 | ||||||
Par value per share | € / shares | € 0.20 | € 0.20 | ||||||||
Preference shares [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Number of shares authorised | shares | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||
Purchased call options [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Additional cash payment for call options sale | € 30 | |||||||||
Reserve of cash flow hedges [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Equity | € (24) | (24) | € (10) | € 23 | 10 | |||||
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Equity | [3] | (303) | (303) | (181) | (30) | 36 | ||||
Treasury shares [member] | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Equity | € (201) | (201) | € (399) | € (481) | € (181) | |||||
Treasury shares [member] | Euro Member Countries, Euro | ||||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||||
Cash outflow for share purchase transactions related to employee option and share plans and reduction of share capital | 1,376 | |||||||||
Cash inflow for settlement of share-based compensation plans | € 58 | |||||||||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||||
[3] | Previously available-for-sale financial assets. |
Equity - Outstanding number of
Equity - Outstanding number of shares (Detail) - Ordinary shares [member] - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity - Text Details (Detail) [Line Items] | |||
Number of shares outstanding at beginning of period | 914,184,087 | 926,191,723 | 922,436,563 |
Dividend distributed | 9,079,538 | 9,533,223 | 11,264,163 |
Purchase of treasury shares, number of | (40,390,495) | (31,993,879) | (19,841,595) |
Re-issuance of treasury shares, number of | 8,100,660 | 10,453,020 | 12,332,592 |
Number of shares outstanding at end of period | 890,973,790 | 914,184,087 | 926,191,723 |
Equity - Employee option and sh
Equity - Employee option and share plan transactions (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity - Text Details (Detail) [Line Items] | |||
Purchase of treasury shares | € 621 | € 514 | € 318 |
Treasury shares for share-based payments [Member] | |||
Equity - Text Details (Detail) [Line Items] | |||
Shares acquired | 5,497,675 | 8,226,101 | 15,222,662 |
Average market price | € 34.25 | € 32.59 | € 31.81 |
Purchase of treasury shares | € 188 | € 268 | € 484 |
Shares delivered | 8,100,660 | 10,453,020 | 12,332,592 |
Average price (FIFO) | € 32.87 | € 32.66 | € 27.07 |
Cost of delivered shares | € 266 | € 341 | € 334 |
Total Shares In Treasury At Year End | 5,268,467 | 7,871,452 | 10,098,371 |
Cost of treasury shares for employee options | € 180 | € 258 | € 331 |
Equity - Share capital transact
Equity - Share capital transactions (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity - Text Details (Detail) [Line Items] | |||
Purchase of treasury shares | € 621 | € 514 | € 318 |
Treasury shares transactions [Member] | |||
Equity - Text Details (Detail) [Line Items] | |||
Shares acquired | 34,892,820 | 23,767,778 | 4,618,933 |
Average market price | € 34.29 | € 32.58 | € 32.47 |
Purchase of treasury shares | € 1,196 | € 774 | € 150 |
Reduction of treasury shares | 38,541,356 | 24,246,711 | |
Cancellation of treasury shares | € 1,316 | € 783 | |
Total Shares In Treasury At Year End | 491,464 | 4,140,000 | 4,618,933 |
Total cost | € 22 | € 141 | € 150 |
Equity - Composition of net deb
Equity - Composition of net debt and group equity (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Equity [abstract] | ||||||||
Non-current portion of non-current borrowings | [2] | € 4,939 | [1] | € 3,427 | [1] | € 4,044 | ||
Current borrowings and current portion of non-current borrowings | [2] | 508 | [1] | 1,394 | [1] | 672 | ||
Total borrowings | [2] | 5,447 | 4,821 | 4,715 | ||||
Cash and cash equivalents | [3] | 1,425 | [2] | 1,688 | [2] | 1,939 | [2] | € 2,334 |
Net debt, total | [2] | 4,022 | 3,132 | 2,776 | ||||
Equity attributable to owners of parent | [2] | 12,597 | 12,088 | 11,999 | ||||
Non-controlling interests | [2] | 28 | 29 | 24 | ||||
Group equity | € 12,625 | [2] | € 12,117 | [2] | € 12,023 | [2] | € 13,453 | |
Net debt and group equity ratio | [2] | 24:76 | 21:79 | 19:81 | ||||
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies | |||||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Equity - Adjusted income from c
Equity - Adjusted income from continuing operations attributable to shareholders (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Equity [abstract] | ||||||||
Profit (loss) | [1],[3] | € 1,173 | [2] | € 1,097 | [2] | € 1,870 | ||
Profit (loss) from discontinued operations | [3] | (19) | [2],[4] | (213) | [2],[4] | 843 | [1],[5] | |
Profit (loss) from continuing operations | 1,192 | [2],[4] | 1,310 | [2],[4] | 1,028 | [5] | ||
Income from continuing operations attributable to non-controlling interests | [2],[4] | (5) | (7) | |||||
Income from continuing operations attributable to owners of parent, total | [2],[4] | 1,186 | 1,303 | |||||
Amortization of acquired intangible assets | [1] | 350 | [2] | 347 | [2] | 260 | ||
Impairment loss recognised in profit or loss, goodwill | € 97 | 97 | [1],[2] | 9 | [1] | |||
Restructuring and acquisition-related charges | [1] | 318 | [2] | 258 | [2] | 316 | ||
Other items | [1] | 153 | [2] | 41 | [2] | € 50 | ||
Net finance expenses | [2],[4] | 14 | 57 | |||||
Tax impact of adjusted items | [2],[4] | (280) | (365) | |||||
Adjusted Income from continuing operations attributable to shareholders, total | [2],[4] | € 1,839 | € 1,643 | |||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Debt - Text Details (Detail)
Debt - Text Details (Detail) € in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||||||||||||
Dec. 31, 2019EUR (€)shares | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2019USD ($)shares | Sep. 30, 2019EUR (€) | Jun. 30, 2018USD ($) | May 31, 2018EUR (€) | May 31, 2018USD ($) | Apr. 30, 2018EUR (€) | Apr. 30, 2018USD ($) | Mar. 31, 2018EUR (€) | Jun. 28, 2017EUR (€) | Apr. 21, 2017EUR (€) | ||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 500 | |||||||||||||
Change of Control Triggering Event, potentially required purchase price related to principal amount | 101.00% | 101.00% | ||||||||||||
Borrowings | [1] | € 5,447 | € 4,821 | € 4,715 | ||||||||||
Lease liabilities | 256 | 1,133 | ||||||||||||
Finance costs | [2] | € 233 | 264 | € 263 | ||||||||||
Tranches of forward purchases | 3 | 3 | ||||||||||||
Number of shares purchased through forward contracts | shares | 10 | 10 | ||||||||||||
IFRS 16 [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Borrowings | € 803 | |||||||||||||
Weighted average [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Borrowings, interest rate | 2.50% | 2.30% | 2.50% | |||||||||||
Bank borrowings (former) [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 178 | |||||||||||||
Bank borrowings [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 200 | |||||||||||||
Bank borrowings [Member] | Weighted average [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Borrowings, interest rate | 14.20% | 15.00% | 14.20% | |||||||||||
Fixed-rate EUR bonds due 2024 and 2028 [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 1,000 | |||||||||||||
Fixed-rate EUR bonds due 2024 [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 500 | |||||||||||||
Borrowings, interest rate | 0.75% | 0.75% | ||||||||||||
Fixed-rate EUR bonds due 2028 [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 500 | |||||||||||||
Borrowings, interest rate | 1.375% | 1.375% | ||||||||||||
Loan for the purpose of the redemption [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 900 | |||||||||||||
Matured [member] | Forward contract [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 576 | € 423 | ||||||||||||
Purchase forward contracts [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | 130 | € 319 | ||||||||||||
Share buyback program [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 1,500 | |||||||||||||
Unsecured EUR Bonds Due 22/05/2026 1/2 percent [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | € 750 | |||||||||||||
Borrowings, interest rate | 0.50% | 0.50% | ||||||||||||
USD Bonds due 2022, early redemption | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | $ | $ 1,000 | |||||||||||||
Borrowings, interest rate | 3.75% | 3.75% | ||||||||||||
Finance costs | € 24 | |||||||||||||
USD bonds due 2038 [member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | $ | $ 16 | $ 56 | ||||||||||||
Borrowings, interest rate | 6.875% | |||||||||||||
Finance costs | 21 | |||||||||||||
Royal Philips NV [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Undrawn borrowing facilities | 1,000 | |||||||||||||
Royal Philips NV [Member] | Commercial Paper Programme [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Notional amount | $ | $ 2,500 | |||||||||||||
Royal Philips NV [Member] | Committed revolving credit facility [Member] | ||||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||||
Undrawn borrowing facilities | € 1,000 | € 1,000 | ||||||||||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||||||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Debt - Long-term debt (Detail)
Debt - Long-term debt (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | € 5,355 | € 4,657 | ||||
Non-current portion of non-current borrowings | [2] | € 4,939 | [1] | 3,427 | [1] | € 4,044 |
Borrowings, maturity | 8.0 | |||||
Current portion of non-current borrowings | € 416 | € 1,230 | ||||
Weighted average [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, maturity | 8.0 | 7.9 | ||||
Borrowings, interest rate | 2.50% | 2.30% | ||||
Later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 3,258 | € 2,545 | ||||
Later than one year and not later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 1,681 | 882 | ||||
Bank borrowings [Member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | 206 | 211 | ||||
Non-current portion of non-current borrowings | 205 | € 211 | ||||
Current portion of non-current borrowings | € 1 | |||||
Bank borrowings [Member] | Weighted average [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, maturity | 5.1 | 6.2 | ||||
Borrowings, interest rate | 0.30% | 0.30% | ||||
Bank borrowings [Member] | Later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 200 | € 205 | ||||
Bank borrowings [Member] | Later than one year and not later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 5 | 6 | ||||
Bonds [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | 2,234 | 1,988 | ||||
Current portion of non-current borrowings | 500 | |||||
Bonds [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | € 1,328 | € 1,303 | ||||
Bonds [Member] | Weighted average [member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, maturity | 5.8 | 5.0 | ||||
Borrowings, interest rate | 0.80% | 0.70% | ||||
Bonds [Member] | Weighted average [member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, maturity | 17.1 | 18.1 | ||||
Borrowings, interest rate | 6.30% | 6.30% | ||||
Bonds [Member] | Later than five years [member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 1,239 | € 991 | ||||
Bonds [Member] | Later than five years [member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 1,328 | 1,303 | ||||
Bonds [Member] | Later than one year and not later than five years [member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 995 | 497 | ||||
Bonds [Member] | Later than one year and not later than five years [member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 1,328 | |||||
Bonds [Member] | Later than one year [member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 2,234 | 1,488 | ||||
Bonds [Member] | Later than one year [member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 1,303 | |||||
Forward contract [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | 188 | 807 | ||||
Non-current portion of non-current borrowings | 62 | 188 | ||||
Current portion of non-current borrowings | € 126 | € 618 | ||||
Forward contract [member] | Weighted average [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, maturity | 1.2 | 0.8 | ||||
Forward contract [member] | Later than one year and not later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 62 | € 188 | ||||
Lease liabilities [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | 1,381 | 330 | ||||
Current portion of non-current borrowings | € 272 | € 94 | ||||
Lease liabilities [member] | Weighted average [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, maturity | 4.3 | 3.6 | ||||
Borrowings, interest rate | 2.40% | 2.90% | ||||
Lease liabilities [member] | Later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | € 491 | € 46 | ||||
Non-current portion of non-current borrowings | 491 | 46 | ||||
Lease liabilities [member] | Later than one year and not later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | 618 | 190 | ||||
Non-current portion of non-current borrowings | 618 | 190 | ||||
Lease liabilities [member] | Later than one year [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 1,109 | 236 | ||||
Other long-term debt [Member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Long-term debt including current portion of long-term debt | 17 | 18 | ||||
Non-current portion of non-current borrowings | 0 | |||||
Current portion of non-current borrowings | € 17 | € 18 | ||||
Other long-term debt [Member] | Weighted average [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, maturity | 1.0 | 1.1 | ||||
Borrowings, interest rate | 1.80% | 1.60% | ||||
Other long-term debt [Member] | Later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 0 | |||||
Other long-term debt [Member] | Later than one year and not later than five years [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 0 | |||||
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies | |||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Debt - Unsecured Bonds (Detail)
Debt - Unsecured Bonds (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | [2] | € 4,939 | [1] | € 3,427 | [1] | € 4,044 |
Unsecured bonds [Member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 3,562 | 3,291 | ||||
Unsecured bonds [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Unsecured bonds adjustments | [3] | € (35) | (31) | |||
Unsecured EUR Bonds Due 22/05/2026 1/2 percent [member] | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 0.50% | |||||
Unsecured EUR Bonds Due 22/05/2026 1/2 percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 0.608% | |||||
Unsecured EUR Bonds Due 22/05/2026 1/2 percent [member] | Unsecured bonds [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 750 | |||||
UnsecuredUsdBondsDue60126715Percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 6.885% | |||||
UnsecuredUsdBondsDue60126715Percent [Member] | Unsecured bonds [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 122 | 119 | ||||
Unsecured EUR Bonds Due 5 02 2024 3/4 percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 0.861% | |||||
Unsecured EUR Bonds Due 5 02 2024 3/4 percent [member] | Unsecured bonds [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 500 | 500 | ||||
Unsecured EUR Bonds Due 5 02 2028 1 3/8 Percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 1.523% | |||||
Unsecured EUR Bonds Due 5 02 2028 1 3/8 Percent [member] | Unsecured bonds [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 500 | 500 | ||||
Unsecured EUR Bonds Due 9 06 2019 [member] | Unsecured bonds [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | 500 | |||||
Unsecured EUR Bonds Due 9 06 2023 0,5 percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 0.634% | |||||
Unsecured EUR Bonds Due 9 06 2023 0,5 percent [member] | Unsecured bonds [Member] | Euro Member Countries, Euro | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 500 | 500 | ||||
phg_Unsecuredusdbondsdue110338678percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 7.21% | |||||
phg_Unsecuredusdbondsdue110338678percent [Member] | Unsecured bonds [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 648 | 636 | ||||
phg_Unsecuredusdbondsdue315425percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 5.273% | |||||
phg_Unsecuredusdbondsdue315425percent [Member] | Unsecured bonds [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 446 | 438 | ||||
phg_Unsecuredusdbondsdue51525718percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 6.794% | |||||
phg_Unsecuredusdbondsdue51525718percent [Member] | Unsecured bonds [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 75 | 74 | ||||
Unsecured USD Bonds Due 5 15 25 7 3/4 Percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Borrowings, interest rate | 7.429% | |||||
Unsecured USD Bonds Due 5 15 25 7 3/4 Percent [member] | Unsecured bonds [Member] | United States of America, Dollars | ||||||
Debt - Text Details (Detail) [Line Items] | ||||||
Non-current portion of non-current borrowings | € 56 | € 55 | ||||
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies | |||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||
[3] | Adjustments related to both EUR and USD bonds and concern bond discounts, premium and transaction costs. |
Debt - Lease liabilities (Detai
Debt - Lease liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt - Text Details (Detail) [Line Items] | |||
Gross lease liabilities | € 1,533 | [1],[2] | € 357 |
Long-term debt including current portion of long-term debt | 5,355 | 4,657 | |
Interest payable | 38 | 36 | |
Lease liabilities [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Long-term debt including current portion of long-term debt | 1,381 | 330 | |
Interest payable | 152 | 28 | |
Later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Gross lease liabilities | 543 | [1],[2] | 52 |
Later than five years [member] | Lease liabilities [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Long-term debt including current portion of long-term debt | 491 | 46 | |
Non-current interest payable | 52 | 6 | |
Later than one year and not later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Gross lease liabilities | 698 | 206 | |
Later than one year and not later than five years [member] | Lease liabilities [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Long-term debt including current portion of long-term debt | 618 | 190 | |
Non-current interest payable | 80 | 16 | |
Not later than one year [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Gross lease liabilities | 292 | [1],[2] | 100 |
Not later than one year [member] | Lease liabilities [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Current interest payable | 20 | 6 | |
Long-term debt including current portion of long-term debt | € 272 | € 94 | |
[1] | Amounts in this table are undiscounted | ||
[2] | This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement |
Debt - Short-term debt (Detail)
Debt - Short-term debt (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Debt [Abstract] | ||||||
Short-term bank borrowings | € 92 | € 76 | ||||
Forward contracts short term | 88 | |||||
Current portion of non-current borrowings | 416 | 1,230 | ||||
Total current borrowings and current portion of non-current borrowings | [2] | € 508 | [1] | € 1,394 | [1] | € 672 |
[1] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies | |||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Provisions - Text Details (Deta
Provisions - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Not later than five years [Member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | five years | |||
Legal proceedings provision [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision used, other provisions | € 36 | € 29 | € 52 | |
Other provisions | € 55 | 26 | 50 | € 96 |
Legal proceedings provision [member] | Not later than three years [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | three years | |||
Other environment related provision long term [member] | Bottom of range [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | one | |||
Other environment related provision long term [member] | Top of range [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | five years | |||
Other environment related provision [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision used, other provisions | € 18 | 15 | 21 | |
Other provisions | 170 | 144 | 160 | 321 |
Other environment related provision [member] | Later than one year and not later than five years [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision used, other provisions | € 85 | |||
Other environment related provision remainder [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | five years | |||
Provision for decommissioning, restoration and rehabilitation costs [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions | € 33 | 32 | ||
Provision for decommissioning, restoration and rehabilitation costs [member] | Later than five years [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | five years | |||
Provision for taxes other than income tax [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions | € 46 | 65 | ||
Provisions for contingent considerations [Member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision used, other provisions | 44 | 48 | 0 | |
Other provisions | € 354 | 409 | € 66 | € 11 |
Provisions for contingent considerations [Member] | EPDSolutionsLtd[Member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions | 239 | |||
Provisions for contingent considerations [Member] | Not later than five years [Member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | five years | |||
Provisions for employee jubilee funds [Member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions | € 82 | 73 | ||
Provisions for employee jubilee funds [Member] | Later than five years [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | five years | |||
Provisions for rights of return [Member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions | € 40 | 35 | ||
Provisions for rights of return [Member] | Not later than one year [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Provision utilization period | year | |||
Self-insurance provisions [Member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions | € 47 | € 45 |
Provisions - Provisions (Detail
Provisions - Provisions (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | € 1,603 | € 1,788 |
Total provisions | 2,159 | 2,151 |
Current provisions | 556 | 363 |
Legal proceedings provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 14 | 17 |
Total provisions | 55 | 26 |
Current provisions | 40 | 9 |
Miscellaneous other provisions [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 305 | 345 |
Total provisions | 392 | 432 |
Current provisions | 86 | 88 |
Other environment related provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 145 | 124 |
Total provisions | 170 | 144 |
Current provisions | 25 | 20 |
Post-employement benefit [Member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 824 | 835 |
Total provisions | 824 | 835 |
Provisions for contingent considerations [Member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 245 | 385 |
Total provisions | 354 | 409 |
Current provisions | 108 | 24 |
Restructuring provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 31 | 45 |
Total provisions | 156 | 114 |
Current provisions | 125 | 68 |
Warranty provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 38 | 37 |
Total provisions | 210 | 190 |
Current provisions | € 172 | € 153 |
Provisions - Provisions for ass
Provisions - Provisions for assurance-type product warranty (Detail) - Warranty provision [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | € 190 | € 201 | € 259 |
Additional provisions, other provisions | 291 | 248 | 283 |
Provision used, other provisions | 274 | 261 | 270 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 56 | ||
Increase (decrease) through net exchange differences, other provisions | 3 | 2 | (16) |
Other provisions at end of period | € 210 | € 190 | € 201 |
Provisions - Environmental prov
Provisions - Environmental provisions (Detail) - Other environment related provision [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | € 144 | € 160 | € 321 |
Additional provisions, other provisions | 20 | 23 | 18 |
Provision used, other provisions | 18 | 15 | 21 |
Unused provision reversed, other provisions | 1 | 4 | 8 |
Increase (decrease) through change in discount rate, other provisions | 9 | (28) | 11 |
Increase through adjustments arising from passage of time, other provisions | 5 | 5 | 6 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 146 | ||
Increase (decrease) through net exchange differences, other provisions | 12 | 4 | (20) |
Other provisions at end of period | € 170 | € 144 | € 160 |
Provisions - Restructuring-rela
Provisions - Restructuring-related provisions (Detail) - Restructuring provision [member] - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | € 114 | € 112 | € 201 | ||
Additional provisions, other provisions | 175 | 136 | 150 | ||
Provision used, other provisions | 97 | 98 | 96 | ||
Unused provision reversed, other provisions | 34 | 37 | 37 | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | (107) | [1] | ||
Other provisions at end of period | 156 | 114 | 112 | ||
Connected Care [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 22 | 15 | 11 | ||
Additional provisions, other provisions | 33 | 24 | 24 | ||
Provision used, other provisions | 16 | 10 | 12 | ||
Unused provision reversed, other provisions | 9 | 8 | 7 | ||
Increase (decrease) through transfers and other changes, other provisions | (2) | (1) | [1] | ||
Other provisions at end of period | 28 | 22 | 15 | ||
Diagnosis & Treatment [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 57 | 45 | 16 | ||
Additional provisions, other provisions | 51 | 62 | 54 | ||
Provision used, other provisions | 37 | 38 | 19 | ||
Unused provision reversed, other provisions | 10 | 12 | 5 | ||
Increase (decrease) through transfers and other changes, other provisions | 0 | (1) | [1] | ||
Other provisions at end of period | 61 | 57 | 45 | ||
Lighting [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 133 | ||||
Additional provisions, other provisions | 9 | ||||
Provision used, other provisions | 35 | ||||
Unused provision reversed, other provisions | 3 | ||||
Increase (decrease) through transfers and other changes, other provisions | [1] | (104) | |||
Other [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 26 | 45 | 37 | ||
Additional provisions, other provisions | 57 | 42 | 52 | ||
Provision used, other provisions | 31 | 45 | 27 | ||
Unused provision reversed, other provisions | 11 | 16 | 16 | ||
Increase (decrease) through transfers and other changes, other provisions | 0 | (1) | [1] | ||
Other provisions at end of period | 42 | 26 | 45 | ||
Personal Health [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 9 | 6 | 4 | ||
Additional provisions, other provisions | 33 | 8 | 12 | ||
Provision used, other provisions | 12 | 5 | 4 | ||
Unused provision reversed, other provisions | 4 | 1 | 5 | ||
Increase (decrease) through transfers and other changes, other provisions | 0 | (1) | [1] | ||
Other provisions at end of period | € 25 | € 9 | € 6 | ||
[1] | Other changes primarily relate to translation differences and transfers between segments |
Provisions - Restructuring-re_2
Provisions - Restructuring-related provision (Detail) - Restructuring provision [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | € 114 | € 112 | € 201 |
Additional provisions, other provisions | 175 | 136 | 150 |
Provision used, other provisions | 97 | 98 | 96 |
Unused provision reversed, other provisions | 34 | 37 | 37 |
Other provisions at end of period | 156 | 114 | 112 |
Connected Care [Member] | |||
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | 22 | 15 | 11 |
Additional provisions, other provisions | 33 | 24 | 24 |
Provision used, other provisions | 16 | 10 | 12 |
Unused provision reversed, other provisions | 9 | 8 | 7 |
Other provisions at end of period | 28 | 22 | 15 |
Diagnosis & Treatment [Member] | |||
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | 57 | 45 | 16 |
Additional provisions, other provisions | 51 | 62 | 54 |
Provision used, other provisions | 37 | 38 | 19 |
Unused provision reversed, other provisions | 10 | 12 | 5 |
Other provisions at end of period | 61 | 57 | 45 |
Other [Member] | |||
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | 26 | 45 | 37 |
Additional provisions, other provisions | 57 | 42 | 52 |
Provision used, other provisions | 31 | 45 | 27 |
Unused provision reversed, other provisions | 11 | 16 | 16 |
Other provisions at end of period | 42 | 26 | 45 |
Personal Health [Member] | |||
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | 9 | 6 | 4 |
Additional provisions, other provisions | 33 | 8 | 12 |
Provision used, other provisions | 12 | 5 | 4 |
Unused provision reversed, other provisions | 4 | 1 | 5 |
Other provisions at end of period | € 25 | € 9 | € 6 |
Provisions - Litigation provisi
Provisions - Litigation provisions (Detail) - Legal proceedings provision [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | € 26 | € 50 | € 96 |
Additional provisions, other provisions | 69 | 17 | 40 |
Provision used, other provisions | 36 | 29 | 52 |
Unused provision reversed, other provisions | 6 | 11 | 11 |
Increase through adjustments arising from passage of time, other provisions | 2 | 2 | 3 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 21 | ||
Increase (decrease) through net exchange differences, other provisions | 0 | (3) | (5) |
Other provisions at end of period | € 55 | € 26 | € 50 |
Provisions - Contingent conside
Provisions - Contingent consideration provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions - Text Details (Detail) [Line Items] | |||
Acquisitions | € 75 | € 45 | |
Provisions for contingent considerations [Member] | |||
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | 409 | 66 | € 11 |
Additional provisions, other provisions | 32 | 6 | 0 |
Provision used, other provisions | 44 | 48 | 0 |
Unused provision reversed, other provisions | 68 | 1 | 2 |
Increase through adjustments arising from passage of time, other provisions | 14 | 12 | 2 |
Acquisitions | 6 | 366 | 62 |
Increase (decrease) through net exchange differences, other provisions | 4 | 9 | (8) |
Other provisions at end of period | € 354 | € 409 | € 66 |
Provisions - Other provisions (
Provisions - Other provisions (Detail) - Miscellaneous other provisions [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | € 432 | € 499 | € 720 |
Additional provisions, other provisions | 143 | 169 | 304 |
Provision used, other provisions | 127 | 178 | 238 |
Unused provision reversed, other provisions | 61 | 57 | 87 |
Increase through adjustments arising from passage of time, other provisions | 1 | 2 | (2) |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 156 | ||
Increase (decrease) through net exchange differences, other provisions | 10 | (3) | (43) |
Other provisions at end of period | 392 | 432 | € 499 |
IFRS 16 [Member] | |||
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | 426 | ||
Other provisions at end of period | € (6) | € 426 |
Post-employment benefits - Text
Post-employment benefits - Text Details (Detail) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | |
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Percentage of unquoted assets | 33.00% | 33.00% | 33.00% | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | ||||
Weighted average duration of defined benefit obligation | 11 years | 11 years | 11 years | ||
Actuarial assumption of mortality rates | 0.10 | ||||
Cash outflow | € 424 | ||||
Employer contributions | 30 | ||||
Post-employment benefit expense, defined benefit plans | 41 | € 56 | € 46 | € 95 | |
Interest expense (income), net defined benefit liability (asset) | 22 | 23 | 37 | ||
Included in financial expense [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Post-employment benefit expense, defined benefit plans | € 22 | 23 | € 37 | ||
Interest expense (income), net defined benefit liability (asset) | 13 | ||||
Bottom of range [member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Increase in actuarial assumption of life expectancy after retirement | 6 months | ||||
Top of range [member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Increase in actuarial assumption of life expectancy after retirement | 1 year | ||||
GERMANY | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Weighted average duration of defined benefit obligation | 13 years | ||||
Employer contributions | 15 | ||||
Other countries [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Weighted average duration of defined benefit obligation | 11 years | ||||
Employer contributions | 15 | ||||
UNITED STATES | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
De-risking contributions paid into pension plan | € 130 | $ 150 | |||
Weighted average duration of defined benefit obligation | 11 years | ||||
Employer contributions | 0 | ||||
Defined contribution plans [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 354 | ||||
Defined contribution plans [Member] | NETHERLANDS | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 173 | ||||
Defined contribution plans [Member] | Other countries [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 54 | ||||
Defined contribution plans [Member] | UNITED STATES | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 127 | ||||
Unfunded defined-benefit plans [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | 40 | ||||
Unfunded defined-benefit plans [Member] | GERMANY | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | 19 | ||||
Unfunded defined-benefit plans [Member] | Other countries [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | 11 | ||||
Unfunded defined-benefit plans [Member] | UNITED STATES | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | € 10 |
Post-employment benefits - Post
Post-employment benefits - Post-employment benefits (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Present value of funded obligations | € 2,684 | € 2,388 | |
Present value of unfunded obligations | 666 | 610 | |
Post-employement benefit [Member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 824 | 834 | |
Plan assets [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 2,526 | 2,164 | € 2,137 |
Present value of defined benefit obligation [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 3,350 | 2,998 | € 3,109 |
GERMANY | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Present value of funded obligations | 630 | 564 | |
Present value of unfunded obligations | 351 | 330 | |
Net defined benefit liability (asset) | 457 | 401 | |
GERMANY | Plan assets [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 524 | 493 | |
GERMANY | Present value of defined benefit obligation [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 981 | 894 | |
Other countries [Member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Present value of funded obligations | 317 | 208 | |
Present value of unfunded obligations | 166 | 149 | |
Net defined benefit liability (asset) | 224 | 182 | |
Other countries [Member] | Plan assets [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 259 | 175 | |
Other countries [Member] | Present value of defined benefit obligation [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 484 | 357 | |
UNITED STATES | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Present value of funded obligations | 1,738 | 1,616 | |
Present value of unfunded obligations | 148 | 132 | |
Net defined benefit liability (asset) | 251 | ||
UNITED STATES | Post-employement benefit [Member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 143 | ||
UNITED STATES | Plan assets [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | 1,743 | 1,497 | |
UNITED STATES | Present value of defined benefit obligation [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | € 1,886 | € 1,747 |
Post-employment benefits - Pre-
Post-employment benefits - Pre-tax costs for post-employment benefits (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | € 41 | € 56 | € 46 | € 95 |
Post-employment benefit expense, defined contribution plans | 346 | 327 | 397 | |
Post-employment benefits costs, pre-tax | 401 | 374 | 492 | |
Included in discontinued operations [Member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | 26 | |||
Post-employment benefit expense, defined contribution plans | 82 | |||
Included in financial expense [Member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | 22 | 23 | 37 | |
Included in income from operations [Member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | 34 | 23 | 32 | |
Post-employment benefit expense, defined contribution plans | € 346 | € 327 | € 315 |
Post-employment benefits - Defi
Post-employment benefits - Defined-benefit obligations (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Interest expense (income), net defined benefit liability (asset) | € 22 | € 23 | € 37 |
Present value of defined benefit obligation [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | 2,998 | 3,109 | |
Current service cost, net defined benefit liability (asset) | 36 | 27 | |
Interest expense (income), net defined benefit liability (asset) | 99 | 85 | |
Contributions to plan by plan participants, net defined benefit liability (asset) | 12 | 4 | |
Actuarial gains (losses) arising from changes in demographic assumptions, net defined benefit liability (asset) | (52) | 4 | |
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | 304 | (131) | |
Actuarial gains (losses) arising from experience adjustments, net defined benefit liability (asset) | 29 | 5 | |
Past service cost, net defined benefit liability (asset) | 0 | (6) | |
Gains (losses) arising from settlements, net defined benefit liability (asset) | (5) | 0 | |
Payments from plan, net defined benefit liability (asset) | (159) | (152) | |
Benefits paid directly by employer | (41) | (42) | |
Increase (decrease) through changes in foreign exchange rates, net defined benefit liability (asset) | 130 | 94 | |
Net defined benefit liability (asset) at end of period | € 3,350 | € 2,998 | € 3,109 |
Post-employment benefits - Plan
Post-employment benefits - Plan assets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Interest expense (income), net defined benefit liability (asset) | € 22 | € 23 | € 37 |
Plan assets [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | 2,164 | 2,137 | |
Interest expense (income), net defined benefit liability (asset) | 77 | 62 | |
Current service cost, net defined benefit liability (asset) | 1 | 1 | |
Return on plan assets excluding interest income or expense, net defined benefit liability (asset) | 305 | (129) | |
Contributions to plan by plan participants, net defined benefit liability (asset) | 12 | 4 | |
Contributions to plan by employer, net defined benefit liability (asset) | 28 | 159 | |
Gains (losses) arising from settlements, net defined benefit liability (asset) | (1) | 0 | |
Payments from plan, net defined benefit liability (asset) | 159 | 152 | |
Increase (decrease) through changes in foreign exchange rates, net defined benefit liability (asset) | 103 | 83 | |
Net defined benefit liability (asset) at end of period | € 2,526 | € 2,164 | € 2,137 |
Post-employment benefits - Pl_2
Post-employment benefits - Plan assets allocation (Detail) - Plan assets [member] - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | € 2,526 | € 2,164 | € 2,137 |
Assets not quoted in active market [Member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Debt instruments, amount contributed to fair value of plan assets | 9 | 12 | |
Other assets, amount contributed to fair value of plan assets | 359 | 329 | |
Equity instruments, amount contributed to fair value of plan assets | 368 | ||
Assets quoted in active market [Member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Debt instruments, amount contributed to fair value of plan assets | 1,476 | 1,294 | |
Other assets, amount contributed to fair value of plan assets | 209 | € 161 | |
Equity instruments, amount contributed to fair value of plan assets | € 473 |
Post-employment benefits - Assu
Post-employment benefits - Assumptions used for defined-benefit obligations in the United States, Germany and the rest of the world (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Post-employment benefits - Text Details (Detail) [Line Items] | ||
Actuarial assumption of discount rates | 2.40% | 3.20% |
Actuarial assumption of expected rates of inflation | 1.90% | 2.10% |
Actuarial assumption of expected rates of salary increases | 2.60% | 2.40% |
GERMANY | ||
Post-employment benefits - Text Details (Detail) [Line Items] | ||
Actuarial assumption of discount rates | 0.80% | 1.50% |
Actuarial assumption of expected rates of inflation | 1.80% | 1.80% |
Actuarial assumption of expected rates of salary increases | 2.50% | 2.50% |
Other countries [Member] | ||
Post-employment benefits - Text Details (Detail) [Line Items] | ||
Actuarial assumption of discount rates | 2.60% | 2.70% |
Actuarial assumption of expected rates of inflation | 1.90% | 1.60% |
Actuarial assumption of expected rates of salary increases | 2.80% | 2.60% |
UNITED STATES | ||
Post-employment benefits - Text Details (Detail) [Line Items] | ||
Actuarial assumption of discount rates | 3.10% | 4.20% |
Actuarial assumption of expected rates of inflation | 2.00% | 2.30% |
Actuarial assumption of expected rates of salary increases | 0.00% | 0.00% |
Post-employment benefits - Sens
Post-employment benefits - Sensitivity of key assumptions (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Actuarial assumption of discount rates [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | € (340) | € (298) | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 401 | 367 | |
Actuarial assumption of expected rates of inflation [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 113 | 97 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (107) | (89) | |
Actuarial assumption of expected rates of salary increases [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 23 | 21 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (22) | (20) | |
Actuarial assumption of life expectancy after retirement [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | [1] | € 90 | € 65 |
[1] | The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on the DBO of a further 10% 10% 0.5 1 |
Accrued liabilities - Accrued l
Accrued liabilities - Accrued liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | € 1,632 | € 1,537 |
Advertising and marketing-related costs [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 186 | 179 |
Commission payable [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 8 | 6 |
Communication and IT costs [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 48 | 55 |
Distribution costs [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 115 | 78 |
Gas, water, electricity, rent and other [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 24 | 36 |
Holiday entitlements [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 118 | 111 |
Interest-related accruals [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 38 | 36 |
Material-related costs [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 106 | 112 |
Other accrued liabilities [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 343 | 293 |
Other personnel-related costs [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 66 | 73 |
Other sales-related costs [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | 25 | 28 |
Salaries and wages [Member] | ||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | ||
Accruals | € 554 | € 530 |
Other liabilities - Text Detail
Other liabilities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other liabilities [Abstract] | ||
Other non-current non-financial liabilities | € 71 | € 72 |
Non-current contract liabilities | 348 | 226 |
Current contract liabilities | 1,170 | € 1,303 |
Increase (Decrease) in current contract liabilities through operational activities | 133 | |
Revenue that was included in contract liability balance at beginning of period | € 1,303 |
Other liabilities - Other curre
Other liabilities - Other current liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other liabilities [Abstract] | ||
Accrued customer rebates that cannot be offset with accounts receivables for those customers | € 427 | € 422 |
Other taxes including social security premiums | 241 | 178 |
Other current liabilities | 188 | 137 |
Other current non-financial liabilities, total | € 856 | € 737 |
Cash flow statement supplemen_3
Cash flow statement supplementary information - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | ||||
Payments of lease liabilities, classified as financing activities | € 281 | |||
Interest paid, classified as operating activities | [1] | 172 | € 170 | € 215 |
Purchase of financial instruments, classified as investing activities | 166 | 177 | 295 | |
Net cash inflow from non-current financial assets | 99 | 43 | ||
Net cash outflow from non-current financial assets | 36 | |||
Borrowings | [2] | 5,447 | 4,821 | € 4,715 |
IFRS 16 [Member] | ||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | ||||
Borrowings | € 803 | |||
Lease liabilities [member] | ||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | ||||
Interest paid, classified as operating activities | € 26 | |||
[1] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Cash flow statement supplemen_4
Cash flow statement supplementary information - Reconciliation of liabilities arising from financing activities (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | € (1,665) | € (1,192) | |||
IFRS 16 [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | [1] | 1,059 | |||
Liabilities arising from financing activities at end of period | 1,059 | ||||
Bank borrowings [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 211 | 190 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (5) | 21 | |||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 0 | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | [2] | 0 | |||
Liabilities arising from financing activities at end of period | 206 | 211 | |||
Bonds [Member] | Euro Member Countries, Euro | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 1,988 | 997 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 244 | 990 | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 2 | [1] | 1 | [2] | |
Liabilities arising from financing activities at end of period | 1,988 | ||||
Bonds [Member] | United States of America, Dollars | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 1,303 | 2,137 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (866) | ||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 25 | 31 | |||
Increase (decrease) through other changes, liabilities arising from financing activities | [2] | 0 | |||
Liabilities arising from financing activities at end of period | 1,303 | ||||
Dividend payable [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (456) | (404) | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 456 | [1] | 404 | [2] | |
Equity [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | (1,293) | (1,500) | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1,774) | (1,351) | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 2,677 | [1] | 1,558 | [2] | |
Liabilities arising from financing activities at end of period | (390) | (1,293) | |||
EUR Bond [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 1,988 | ||||
Liabilities arising from financing activities at end of period | 2,234 | 1,988 | |||
Forward contracts equity [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | [3] | (894) | (1,018) | ||
Increase (decrease) through other changes, liabilities arising from financing activities | 706 | [1],[4] | 124 | [2],[3] | |
Liabilities arising from financing activities at end of period | (188) | [4] | (894) | [3] | |
Forward contracts long term [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | [3] | 807 | 970 | ||
Increase (decrease) through other changes, liabilities arising from financing activities | (618) | [1],[4] | (163) | [2],[3] | |
Liabilities arising from financing activities at end of period | 188 | [4] | 807 | [3] | |
Forward contracts short term [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 88 | [4] | 49 | [3] | |
Increase (decrease) through other changes, liabilities arising from financing activities | (88) | [1],[4] | 39 | [2],[3] | |
Liabilities arising from financing activities at end of period | [4] | 88 | |||
Lease liabilities [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 330 | 281 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (152) | (18) | |||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 12 | 13 | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 132 | [1] | 53 | [2] | |
Liabilities arising from financing activities at end of period | 322 | 330 | |||
Long-term borrowings including current portion of long-term borrowings [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 4,657 | [5] | 4,595 | [6] | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 86 | [5] | 126 | [6] | |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 37 | [5] | 45 | [6] | |
Increase (decrease) through other changes, liabilities arising from financing activities | 575 | [1],[5] | (109) | [2],[6] | |
Liabilities arising from financing activities at end of period | [5] | 5,355 | 4,657 | ||
Other long-term debt [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 18 | 20 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1) | (1) | |||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 0 | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | [2] | 0 | |||
Liabilities arising from financing activities at end of period | 17 | 18 | |||
Short-term bank borrowings [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 76 | 71 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 23 | 34 | |||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (7) | (29) | |||
Liabilities arising from financing activities at end of period | 92 | 76 | |||
Short-term borrowings [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | [6] | 164 | 120 | ||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 23 | [5] | 34 | [6] | |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (7) | [5] | (29) | [6] | |
Increase (decrease) through other changes, liabilities arising from financing activities | (88) | [1],[5] | 39 | [2],[6] | |
Liabilities arising from financing activities at end of period | 92 | [5] | 164 | [6] | |
Treasury shares [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | (399) | (481) | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1,318) | (948) | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 1,516 | [1] | 1,030 | [2] | |
Liabilities arising from financing activities at end of period | (201) | (399) | |||
USD Bond [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 1,303 | ||||
Liabilities arising from financing activities at end of period | € 1,328 | € 1,303 | |||
[1] | Besides non-cash, other includes interest paid on leases, which is part of cash flows from operating activities | ||||
[2] | Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities | ||||
[3] | The forward contracts are related to the share buyback program and LTI plans | ||||
[4] | The forward contracts are related to the share buyback program and LTI plans | ||||
[5] | Long-term debt includes the current portion of long-term debt, and short-term debt excludes the current portion of long-term debt. | ||||
[6] | Long-term debt includes the current portion of long-term debt, and short-term debt excludes the current portion of long-term debt. |
Contingent assets and liabili_2
Contingent assets and liabilities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2012 | |
Contingent assets and liabilities - Text Details (Detail) [Line Items] | |||
Fair value of guarantees recognized on the balance sheet | |||
Increase (decrease) of off-balance-sheet business and credit-related guarantees provided on behalf of third parties and associates | (19) | ||
Off-balance-sheet business and credit-related guarantees provided on behalf of third parties and associates | 21 | € 40 | |
Claim filed by LGE | € 64.6 | ||
Legal proceedings contingent liability [member] | Company and LG Electronics Inc [Member] | |||
Contingent assets and liabilities - Text Details (Detail) [Line Items] | |||
Fine payable recognized | € 509 |
Related-party transactions - Te
Related-party transactions - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related-party transactions - Text Details (Detail) [Line Items] | |||
Non-recourse third-party receivables sold to PMC US | € 288 | € 244 | € 151 |
Bottom of range [member] | |||
Related-party transactions - Text Details (Detail) [Line Items] | |||
Presumed significant influence, voting rights | 20.00% | 20.00% | |
Top of range [member] | |||
Related-party transactions - Text Details (Detail) [Line Items] | |||
Presumed significant influence, voting rights | 50.00% | 50.00% |
Related-party transactions - Re
Related-party transactions - Related-party transactions (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions [abstract] | |||
Revenue from sale of goods, related party transactions | € 158 | € 232 | € 196 |
Purchases of goods, related party transactions | 53 | 67 | 62 |
Amounts receivable, related party transactions | 32 | 28 | 127 |
Amounts payable, related party transactions | € 2 | € 1 | € 36 |
Share-based compensation - Text
Share-based compensation - Text Details (Detail) € / shares in Units, $ / shares in Units, € in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019EUR (€)€ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Share-based compensation costs | € 105 | € 102 | € 122 | ||||
Employee stock purchase plan | 7 | ||||||
Increase (decrease) through share-based payment transactions, equity | € 101 | € 107 | € 151 | ||||
Comparison group for performance shares | 20 | 20 | 20 | 20 | |||
Risk free interest rate, share options granted | (0.58%) | (0.58%) | |||||
Expected volatility, share options granted | 20.00% | 20.00% | |||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 13 | € 15 | € 29 | ||||
Euro Member Countries, Euro | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | 22.8 | ||||||
Proceeds from exercise of options | € 28 | ||||||
Weighted average remaining contractual life of outstanding share options | 1 year 6 months | 1 year 6 months | |||||
United States of America, Dollars | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 20.9 | ||||||
Weighted average remaining contractual life of outstanding share options | 1 year 6 months | 1 year 6 months | |||||
former Philips employees now employed by Signify [Member] | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Increase (decrease) through share-based payment transactions, equity | € 3 | ||||||
Accelerate options [Member] | Euro Member Countries, Euro | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Aggregate intrinsic value of liabilities from share-pased payments | 5.8 | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | 2 | 4 | |||||
Proceeds from exercise of options | 2 | 4 | |||||
Tax deductions realized as a result of option exercises | € 0.2 | 0.2 | |||||
Weighted average remaining contractual life of outstanding share options | 2 years 3 months 18 days | 2 years 3 months 18 days | |||||
Accelerate options [Member] | United States of America, Dollars | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Exercise price of outstanding share options | $ / shares | $ 20.02 | ||||||
Aggregate intrinsic value of liabilities from share-pased payments | $ | $ 2.2 | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 1 | $ 1 | |||||
Weighted average remaining contractual life of outstanding share options | 2 years 1 month 6 days | 2 years 1 month 6 days | |||||
Option plans [Member] | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Aggregate intrinsic value of liabilities from share-pased payments | € 23 | $ 21 | |||||
Option plans [Member] | Euro Member Countries, Euro | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Proceeds from exercise of options | 57 | 128 | |||||
Tax deductions realized as a result of option exercises | 2 | 3 | 5 | ||||
Option plans [Member] | United States of America, Dollars | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 11 | $ 16 | $ 22 | ||||
Performance share plans [Member] | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Unrecognized compensation costs related to non-vested shares | € 106 | 111 | 103 | ||||
Cost recognition period (weighted average) | 1.87 | 1.87 | |||||
Restricted shares [Member] | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Unrecognized compensation costs related to non-vested shares | € 59 | € 59 | € 40 | ||||
Cost recognition period (weighted average) | 1.82 | 1.82 | |||||
Cliff-vesting period | 3 | 3 | |||||
Bottom of range [member] | Accelerate options [Member] | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Exercise price of outstanding share options | € / shares | € 15.24 | ||||||
Bottom of range [member] | Option plans [Member] | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Exercise price of outstanding share options | € / shares | 12.63 | ||||||
Bottom of range [member] | Option plans [Member] | United States of America, Dollars | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Exercise price of outstanding share options | $ / shares | $ 16.76 | ||||||
Top of range [member] | Euro Member Countries, Euro | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Exercise price of outstanding share options | € / shares | 22.43 | ||||||
Top of range [member] | Option plans [Member] | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Exercise price of outstanding share options | € / shares | € 24.90 | ||||||
Top of range [member] | Option plans [Member] | United States of America, Dollars | |||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||
Exercise price of outstanding share options | $ / shares | $ 33.51 |
Share-based compensation - Perf
Share-based compensation - Performance shares (Detail) | 12 Months Ended | ||||||||
Dec. 31, 2019€ / shares | Dec. 31, 2019$ / shares€ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018€ / shares | Dec. 31, 2018$ / shares | |||||
Euro Member Countries, Euro | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 2,220,891 | [1] | 2,220,891 | [1] | |||||
United States of America, Dollars | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,905,867 | [1] | 1,905,867 | [1] | |||||
Performance share plans [Member] | Euro Member Countries, Euro | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 3,460,802 | 3,460,802 | 3,460,802 | 4,738,099 | 4,738,099 | ||||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € / shares | € 39.32 | € 39.32 | € 32.54 | ||||||
Number of other equity instruments granted in share-based payment arrangement | 1,183,900 | 1,183,900 | |||||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € / shares | € 40.38 | ||||||||
Notional Dividends | 90,183 | [2] | 90,183 | [2] | |||||
Weighted Average Exercise Price Notional Dividends | € / shares | € 39.15 | [2] | |||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 3,187,475 | 3,187,475 | |||||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € / shares | € 24.81 | ||||||||
Number of other equity instruments forfeited in share-based payment arrangement | 246,510 | 246,510 | |||||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € / shares | € 37.24 | ||||||||
Number of other equity instruments adjusted quantity | 882,604 | [3] | 882,604 | [3] | |||||
Weighted average exercise price of other equity instruments adjusted quantity | € / shares | € 21.34 | [3] | |||||||
Performance share plans [Member] | United States of America, Dollars | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 2,213,962 | 2,213,962 | 2,213,962 | 2,878,048 | 2,878,048 | ||||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | $ / shares | $ 45.06 | $ 37.74 | |||||||
Number of other equity instruments granted in share-based payment arrangement | 808,652 | 808,652 | |||||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | $ / shares | € 45.28 | ||||||||
Notional Dividends | 57,569 | [2] | 57,569 | [2] | |||||
Weighted Average Exercise Price Notional Dividends | $ / shares | € 44.82 | [2] | |||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 1,865,456 | 1,865,456 | |||||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | $ / shares | € 28.36 | ||||||||
Number of other equity instruments forfeited in share-based payment arrangement | 174,758 | 174,758 | |||||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | $ / shares | € 44.36 | ||||||||
Number of other equity instruments adjusted quantity | 509,908 | [3] | 509,908 | [3] | |||||
Weighted average exercise price of other equity instruments adjusted quantity | $ / shares | € 24.71 | [3] | |||||||
[1] | Excludes premium shares on Restricted shares granted before 2013. (20% additional (premium) shares that may be received if shares delivered under the plan are not sold for three-year period). | ||||||||
[2] | Dividend declared in 2019 on outstanding shares. | ||||||||
[3] | Adjusted quantity includes the adjustments made to performance shares outstanding due to updates on the actual and expected EPS. |
Share-based compensation - Rest
Share-based compensation - Restricted shares (Detail) | 12 Months Ended | ||||||||
Dec. 31, 2019€ / shares | Dec. 31, 2019$ / shares€ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018€ / shares | [1] | Dec. 31, 2018$ / shares | [1] | |||
Euro Member Countries, Euro | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 2,220,891 | 2,220,891 | |||||||
Euro Member Countries, Euro | Restricted shares [Member] | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,866,864 | 1,866,864 | 1,866,864 | ||||||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € / shares | € 34.63 | € 34.63 | € (29.69) | ||||||
Number of other equity instruments granted in share-based payment arrangement | 641,485 | 641,485 | |||||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € / shares | € 37.22 | ||||||||
Notional Dividends | 45,433 | [2] | 45,433 | [2] | |||||
Weighted Average Exercise Price Notional Dividends | € / shares | € 34.44 | [2] | |||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 920,463 | 920,463 | |||||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € / shares | € 24.65 | ||||||||
Number of other equity instruments forfeited in share-based payment arrangement | 120,481 | 120,481 | |||||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € / shares | € 33.50 | ||||||||
United States of America, Dollars | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,905,867 | 1,905,867 | |||||||
United States of America, Dollars | Restricted shares [Member] | |||||||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,731,978 | 1,731,978 | 1,731,978 | ||||||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | $ / shares | $ 38.22 | $ 33.58 | |||||||
Number of other equity instruments granted in share-based payment arrangement | 614,062 | 614,062 | |||||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | $ / shares | € 41.83 | ||||||||
Notional Dividends | 42,465 | [2] | 42,465 | [2] | |||||
Weighted Average Exercise Price Notional Dividends | $ / shares | € 38.07 | [2] | |||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 688,010 | 688,010 | |||||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | $ / shares | € 28.67 | ||||||||
Number of other equity instruments forfeited in share-based payment arrangement | 142,407 | 142,407 | |||||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | $ / shares | € 37.71 | ||||||||
[1] | Excludes premium shares on Restricted shares granted before 2013. (20% additional (premium) shares that may be received if shares delivered under the plan are not sold for three-year period). | ||||||||
[2] | Dividend declared in 2019 on outstanding shares. |
Share-based compensation - Opti
Share-based compensation - Options on EUR-denominated listed share (Detail) - Euro Member Countries, Euro | 12 Months Ended | |
Dec. 31, 2019€ / shares | Dec. 31, 2018€ / shares | |
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 934,707 | |
Option plans [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 934,707 | 1,648,720 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 19.14 | € 18.90 |
Number of share options exercised in share-based payment arrangement | 659,128 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | € 18.86 | |
Number of share options expired in share-based payment arrangement | 54,885 | |
Weighted average exercise price of share options expired in share-based payment arrangement | € 15.42 | |
Number of share options exercisable in share-based payment arrangement | 934,707 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | € 19.14 |
Share-based compensation - Op_2
Share-based compensation - Options on USD-denominated listed share (Detail) - United States of America, Dollars | 12 Months Ended | |
Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 928,975 | |
Option plans [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 928,975 | 1,633,868 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 26.26 | $ 26.13 |
Number of share options exercised in share-based payment arrangement | 663,191 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | $ 26.20 | |
Number of share options expired in share-based payment arrangement | 41,702 | |
Weighted average exercise price of share options expired in share-based payment arrangement | $ 22.13 | |
Number of share options exercisable in share-based payment arrangement | 928,975 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 26.26 |
Share-based compensation - Outs
Share-based compensation - Outstanding options (Detail) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € | € 13 | € 15 | € 29 | |
Euro Member Countries, Euro | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 934,707 | 934,707 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € | € 22.8 | |||
Weighted average remaining contractual life of outstanding share options | 1 year 6 months | |||
United States of America, Dollars | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 928,975 | 928,975 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 20.9 | |||
Weighted average remaining contractual life of outstanding share options | 1 year 6 months | |||
Price range five [Member] | United States of America, Dollars | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 193,450 | 193,450 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 3 | |||
Weighted average remaining contractual life of outstanding share options | 4 months 24 days | |||
Price range one [Member] | Euro Member Countries, Euro | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 370,115 | 370,115 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € | € 10.6 | |||
Weighted average remaining contractual life of outstanding share options | 2 years 3 months 18 days | |||
Price range one [Member] | United States of America, Dollars | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 354,350 | 354,350 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 6.8 | |||
Weighted average remaining contractual life of outstanding share options | 1 year 3 months 18 days | |||
Price range three [Member] | Euro Member Countries, Euro | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 548,131 | 548,131 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € | € 11.7 | |||
Weighted average remaining contractual life of outstanding share options | 1 year | |||
Price range three [Member] | United States of America, Dollars | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 20,550 | 20,550 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 0.6 | |||
Weighted average remaining contractual life of outstanding share options | 2 years | |||
Price range two [Member] | Euro Member Countries, Euro | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 16,461 | 16,461 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € | € 0.4 | |||
Weighted average remaining contractual life of outstanding share options | 2 years 2 months 12 days | |||
Price range two [Member] | United States of America, Dollars | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 360,625 | 360,625 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 10.6 | |||
Weighted average remaining contractual life of outstanding share options | 2 years 3 months 18 days |
Share-based compensation - Acce
Share-based compensation - Accelerate! options (Detail) | 12 Months Ended | ||||
Dec. 31, 2019€ / shares | Dec. 31, 2019$ / shares€ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018€ / shares | Dec. 31, 2018$ / shares | |
Euro Member Countries, Euro | |||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 934,707 | 934,707 | 934,707 | ||
United States of America, Dollars | |||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 928,975 | 928,975 | 928,975 | ||
Accelerate options [Member] | Euro Member Countries, Euro | |||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 220,200 | 220,200 | 220,200 | 296,750 | 296,750 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € / shares | € 17.04 | € 17.04 | € 16.57 | ||
Number of share options exercised in share-based payment arrangement | 76,550 | 76,550 | |||
Weighted average exercise price of share options exercised in share-based payment arrangement | € / shares | € 15.24 | ||||
Number of share options exercisable in share-based payment arrangement | 220,200 | 220,200 | 220,200 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | € / shares | € 17.04 | € 17.04 | |||
Accelerate options [Member] | United States of America, Dollars | |||||
Share-based compensation - Text Details (Detail) [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 75,000 | 75,000 | 75,000 | 123,300 | 123,300 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 20.02 | $ 20.02 | |||
Number of share options exercised in share-based payment arrangement | 40,800 | 40,800 | |||
Weighted average exercise price of share options exercised in share-based payment arrangement | € 20.02 | ||||
Number of share options exercisable in share-based payment arrangement | 75,000 | 75,000 | 75,000 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 20.02 | ||||
Number of share options expired in share-based payment arrangement | 7,500 | 7,500 | |||
Weighted average exercise price of share options expired in share-based payment arrangement | € 20.02 |
Information on remuneration - T
Information on remuneration - Text Details (Detail) | 12 Months Ended | |||
Dec. 31, 2019EUR (€)€ / shares | Dec. 31, 2018EUR (€)€ / shares | Dec. 31, 2017EUR (€)€ / shares | ||
Board of management [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | € 9,700,000 | € 9,800,000 | € 7,800,000 | |
Executive committee [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Number of members | 14 | 13 | 12 | |
Key management personnel compensation | [1] | € 29,968,678 | € 26,755,003 | € 25,848,740 |
Number of share options outstanding in share-based payment arrangement | 291,520 | 333,670 | 541,400 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € / shares | € 18.61 | € 18.99 | € 19.82 | |
Supervisory board [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | € 1,202,917 | € 1,088,375 | € 950,500 | |
Other compensation, product arrangement entitlement | € 2,000 | |||
[1] | The Executive Committee consisted of 14 13 12 |
Information on remuneration - R
Information on remuneration - Remuneration costs of the Executive Committee (Detail) - Executive committee [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | € 29,968,678 | € 26,755,003 | € 25,848,740 |
Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[2] | 5,566,763 | 5,651,996 | 6,345,576 |
Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 9,241,364 | 8,370,406 | 8,089,063 |
Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[3] | 1,331,990 | 1,013,128 | 1,861,803 |
Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[4] | 2,076,834 | 1,919,839 | 1,886,963 |
Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 440,003 | 411,028 | 408,695 |
Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[5],[6] | 11,143,320 | 8,896,369 | 6,371,297 |
Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[5] | € 168,404 | € 492,237 | € 885,343 |
[1] | The Executive Committee consisted of 14 13 12 | |||
[2] | The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. | |||
[3] | The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated | |||
[4] | Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement | |||
[5] | Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares and restricted share rights at the vesting/release date | |||
[6] | For 2019, a release of EUR 0 (2018: EUR 1,740,520; 2017: EUR 2,469,670) is included due to non-vesting of performance shares |
Information on remuneration -_2
Information on remuneration - Remuneration costs of individual members of the Board of Management (Detail) - Board of management [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | € 9,700,000 | € 9,800,000 | € 7,800,000 | |
Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 1,944,957 | 2,264,433 | 2,322,612 |
Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 2,636,250 | 2,481,250 | 2,590,417 | |
Key management personnel compensation other | 154,256 | 127,863 | 261,667 | |
Key management personnel compensation | 9,719,143 | 9,848,153 | 7,808,117 | |
Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 960,076 | 923,214 | 1,012,075 |
Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 79,140 | 77,124 | 75,834 | |
Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 3,944,464 | 3,973,486 | 1,540,703 |
Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 783 | 4,809 | |
A. Bhattacharya [Member] | Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 517,472 | 637,536 | 553,392 |
A. Bhattacharya [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 770,000 | 718,750 | 687,500 | |
Key management personnel compensation other | 63,265 | 53,522 | 100,918 | |
Key management personnel compensation | 2,602,606 | 2,595,688 | 2,247,822 | |
A. Bhattacharya [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 230,006 | 217,823 | 210,450 |
A. Bhattacharya [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 26,380 | 25,708 | 25,278 | |
A. Bhattacharya [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 995,483 | 942,220 | 669,396 |
A. Bhattacharya [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 129 | 888 | |
F.A. van Houten [Member] | Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 1,091,800 | 1,264,286 | 1,270,166 |
F.A. van Houten [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 1,295,000 | 1,205,000 | 1,205,000 | |
Key management personnel compensation other | 52,713 | 39,042 | 84,053 | |
Key management personnel compensation | 5,260,111 | 5,391,265 | 5,101,429 | |
F.A. van Houten [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 559,052 | 537,181 | 537,621 |
F.A. van Houten [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 26,380 | 25,708 | 25,278 | |
F.A. van Houten [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 2,235,166 | 2,319,460 | 1,975,277 |
F.A. van Houten [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 588 | 4,034 | |
M.J. van Ginneken [Member] | Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 335,685 | 362,611 | 69,168 |
M.J. van Ginneken [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 571,250 | 557,500 | 91,667 | |
Key management personnel compensation other | 38,278 | 35,299 | 13,120 | |
Key management personnel compensation | 1,856,426 | 1,861,200 | 306,061 | |
M.J. van Ginneken [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 171,018 | 168,210 | 27,796 |
M.J. van Ginneken [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 26,380 | 25,708 | 4,213 | |
M.J. van Ginneken [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | € 713,815 | 711,806 | 100,022 |
M.J. van Ginneken [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | € 66 | 75 | |
P.A.J. Nota [Member] | Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 429,886 | ||
P.A.J. Nota [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 606,250 | |||
Key management personnel compensation other | 63,576 | |||
Key management personnel compensation | 152,805 | |||
P.A.J. Nota [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 236,208 | ||
P.A.J. Nota [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 21,065 | |||
P.A.J. Nota [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | (1,203,992) | ||
P.A.J. Nota [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | € (188) | ||
[1] | The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. For more details on the annual incentives refer to 2019 Annual Incentive | |||
[2] | The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated. | |||
[3] | Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares and restricted share rights at the vesting/release date |
Information on remuneration - A
Information on remuneration - Accumulated annual pension entitlements and pension-related costs (Detail) - Board of management [Member] | Dec. 31, 2019EUR (€) |
Information on remuneration - Text Details (Detail) [Line Items] | |
Pension-related costs | € 1,039,216 |
A. Bhattacharya [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Age | 58 |
Accumulated annual pension | € 31,338 |
Pension-related costs | € 256,386 |
F.A. van Houten [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Age | 59 |
Accumulated annual pension | € 325,561 |
Pension-related costs | € 585,432 |
M.J. van Ginneken [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Age | 46 |
Accumulated annual pension | € 44,169 |
Pension-related costs | € 197,398 |
Information on remuneration -_3
Information on remuneration - Remuneration of the Supervisory Board (Detail) - Supervisory board [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | € 1,202,917 | € 1,088,375 | € 950,500 | |
Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 201,917 | 189,125 | 171,500 | |
Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 870,000 | 731,250 | 625,000 | |
Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 131,000 | 168,000 | 154,000 |
A.M. Harrison [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 121,333 | 42,333 | ||
A.M. Harrison [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 9,333 | 0 | ||
A.M. Harrison [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 100,000 | 31,667 | ||
A.M. Harrison [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 12,000 | 10,667 | |
C.A. Poon [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 187,167 | 154,875 | 139,500 | |
C.A. Poon [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 50,167 | 36,625 | 32,500 | |
C.A. Poon [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 115,000 | 96,250 | 90,000 | |
C.A. Poon [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 22,000 | 22,000 | 17,000 |
D.E.I. Pyott [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 158,500 | 142,250 | 135,000 | |
D.E.I. Pyott [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 41,500 | 25,250 | 23,000 | |
D.E.I. Pyott [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 100,000 | 85,000 | 80,000 | |
D.E.I. Pyott [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 17,000 | 32,000 | 32,000 |
H.N.F.M. von Prondzynski [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 55,333 | 136,125 | 132,000 | |
H.N.F.M. von Prondzynski [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 16,333 | 36,625 | 32,500 | |
H.N.F.M. von Prondzynski [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 33,333 | 85,000 | 80,000 | |
H.N.F.M. von Prondzynski [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 5,667 | 14,500 | 19,500 |
J.P. Tai [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 40,750 | 141,625 | 144,500 | |
J.P. Tai [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 10,250 | 34,625 | 32,500 | |
J.P. Tai [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 25,000 | 85,000 | 80,000 | |
J.P. Tai [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 5,500 | 22,000 | 32,000 |
J. van der Veer [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 197,000 | 179,500 | 167,000 | |
J. van der Veer [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 35,000 | 27,500 | 25,000 | |
J. van der Veer [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 155,000 | 140,000 | 135,000 | |
J. van der Veer [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 7,000 | 12,000 | 7,000 |
M.E. Doherty [member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 51,500 | |||
M.E. Doherty [member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 1,500 | |||
M.E. Doherty [member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 41,667 | |||
M.E. Doherty [member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 8,333 | ||
N. Dhawan [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 145,000 | 123,750 | 120,000 | |
N. Dhawan [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 18,000 | 14,250 | 13,000 | |
N. Dhawan [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 100,000 | 85,000 | 80,000 | |
N. Dhawan [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 27,000 | 24,500 | 27,000 |
O. Gadiesh [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 131,833 | 121,250 | 112,500 | |
O. Gadiesh [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 19,833 | 14,250 | 13,000 | |
O. Gadiesh [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 100,000 | 85,000 | 80,000 | |
O. Gadiesh [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 12,000 | 22,000 | € 19,500 |
P.A.M. Stoffels [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 114,500 | 46,667 | ||
P.A.M. Stoffels [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 0 | 0 | ||
P.A.M. Stoffels [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 100,000 | 38,333 | ||
P.A.M. Stoffels [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | € 14,500 | € 8,333 | |
[1] | The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel (effective 2015) and the entitlement of EUR 2,000 |
Information on remuneration - S
Information on remuneration - Shares held by Board members (Detail) - Board of management [Member] - shares | Dec. 31, 2019 | Dec. 31, 2018 | |
A. Bhattacharya [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 90,083 | 66,794 |
F.A. van Houten [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 347,565 | 292,302 |
J. van der Veer [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 18,366 | 18,366 |
M.J. van Ginneken [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 67,600 | 47,856 |
[1] | Reference date for board membership is December 31, 2019. |
Fair value of financial asset_3
Fair value of financial assets and liabilities - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
EPDSolutionsLtd[Member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Percentage points increase for every milestone | 10 | |
Percentage points decrease for every milestone | (10) | |
Basis points increase in discount rate | 100 | |
Basis points decrease in discount rate | 100 | |
EPDSolutionsLtd[Member] | Bottom of range [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Milestones and discount rates | 3.00% | |
EPDSolutionsLtd[Member] | Bottom of range [member] | Discount rates [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | (3.00%) | |
EPDSolutionsLtd[Member] | Bottom of range [member] | Milestone [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | (4.00%) | |
EPDSolutionsLtd[Member] | Top of range [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Milestones and discount rates | 4.00% | |
EPDSolutionsLtd[Member] | Top of range [member] | Discount rates [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | 3.00% | |
EPDSolutionsLtd[Member] | Top of range [member] | Milestone [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | 3.00% | |
Level 3 of fair value hierarchy [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Financial assets measured at fair value through other comprehensive income | € 0 | € 112 |
Fair value of financial asset_4
Fair value of financial assets and liabilities - Fair value of financial assets and liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | € 136 | € 116 | ||||||
Financial assets at fair value through other comprehensive income | 150 | 664 | ||||||
Derivative financial assets | 39 | 36 | ||||||
Financial assets, at fair value, total | 324 | 817 | ||||||
Cash and cash equivalents | [2] | 1,425 | [1] | 1,688 | [1] | € 1,939 | [1] | € 2,334 |
Current loans and receivables | 1 | 2 | ||||||
Non-current loans and receivables | 40 | 46 | ||||||
Trade and other current receivables | 4,554 | 4,035 | ||||||
Trade and other non-current receivables | 178 | 162 | ||||||
Financial assets at amortised cost, total | 6,121 | 5,902 | ||||||
Total financial assets | 6,445 | 6,718 | ||||||
Contingent Consideration | 354 | 409 | ||||||
Financial Liabilities Carried At FV through P&L | 354 | 409 | ||||||
Derivative financial liabilities | 191 | 290 | ||||||
Financial liabilities, at fair value, total | 544 | 699 | ||||||
Trade and other current payables | 2,089 | [3],[4] | 2,303 | |||||
Interest payable | 38 | 36 | ||||||
Debt (Corporate bond and finance lease) | 4,943 | 3,621 | ||||||
Debt (Bank loans, overdrafts etc.) | 504 | 1,200 | ||||||
Financial liabilities at amortised cost, total | 7,574 | 7,159 | ||||||
Total financial liabilities | 8,118 | 7,858 | ||||||
Financial assets at amortised cost, category [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Trade and other current receivables | 4,476 | 4,004 | ||||||
Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 77 | 32 | ||||||
At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 136 | [5] | 116 | [6] | ||||
Financial assets at fair value through other comprehensive income | 150 | [5] | 664 | [6] | ||||
Derivative financial assets | 39 | [5] | 36 | [6] | ||||
Financial assets, at fair value, total | 324 | [5] | 817 | [6] | ||||
Contingent Consideration | 354 | [5] | 409 | [6] | ||||
Financial Liabilities Carried At FV through P&L | 354 | [5] | 409 | [6] | ||||
Derivative financial liabilities | 191 | [5] | 290 | [6] | ||||
Financial liabilities, at fair value, total | 544 | [5] | 699 | [6] | ||||
Debt (Corporate bond and finance lease) | 5,500 | [5] | 3,906 | [6] | ||||
At fair value [member] | Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 77 | [5] | 32 | [6] | ||||
Current assets [Member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 0 | 435 | [7] | |||||
Current assets [Member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 0 | [5] | 435 | [6],[7] | ||||
Debt securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 92 | 69 | ||||||
Financial assets measured at fair value through other comprehensive income | 28 | 26 | ||||||
Debt securities [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 92 | [5] | 69 | [6] | ||||
Financial assets measured at fair value through other comprehensive income | 28 | [5] | 26 | [6] | ||||
Other equity securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 7 | 20 | ||||||
Other equity securities [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 7 | [5] | 20 | [6] | ||||
Financial assets measured at fair value through other comprehensive income | 45 | [5] | 172 | [6] | ||||
Other equity securities [member] | Carrying amount [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 45 | 172 | ||||||
Other Financial Assets [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 37 | 27 | ||||||
Other Financial Assets [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 37 | [5] | 27 | [6] | ||||
Level 1 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 7 | 20 | ||||||
Financial assets at fair value through other comprehensive income | 8 | 457 | ||||||
Financial assets, at fair value, total | 15 | 476 | ||||||
Debt (Corporate bond and finance lease) | 4,119 | 3,576 | ||||||
Level 1 of fair value hierarchy [member] | Current assets [Member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | [7] | 434 | ||||||
Level 1 of fair value hierarchy [member] | Other equity securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 7 | 20 | ||||||
Financial assets measured at fair value through other comprehensive income | 8 | 22 | ||||||
Level 2 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 31 | 22 | ||||||
Financial assets at fair value through other comprehensive income | 27 | 27 | ||||||
Derivative financial assets | 39 | 36 | ||||||
Financial assets, at fair value, total | 97 | 85 | ||||||
Derivative financial liabilities | 191 | 290 | ||||||
Financial liabilities, at fair value, total | 191 | 290 | ||||||
Debt (Corporate bond and finance lease) | 1,381 | 330 | ||||||
Level 2 of fair value hierarchy [member] | Debt securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 27 | 26 | ||||||
Level 2 of fair value hierarchy [member] | Other equity securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 1 | |||||||
Level 2 of fair value hierarchy [member] | Other Financial Assets [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 31 | 22 | ||||||
Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 98 | 74 | ||||||
Financial assets measured at fair value through other comprehensive income | 0 | 112 | ||||||
Financial assets at fair value through other comprehensive income | 114 | 181 | ||||||
Financial assets, at fair value, total | 212 | 255 | ||||||
Contingent Consideration | 354 | 409 | ||||||
Financial Liabilities Carried At FV through P&L | 354 | 409 | ||||||
Financial liabilities, at fair value, total | 354 | 409 | ||||||
Total financial liabilities | 354 | 409 | € 66 | |||||
Level 3 of fair value hierarchy [member] | Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 77 | 32 | ||||||
Level 3 of fair value hierarchy [member] | Current assets [Member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | [7] | 0 | ||||||
Level 3 of fair value hierarchy [member] | Debt securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 92 | 69 | ||||||
Financial assets measured at fair value through other comprehensive income | 0 | 0 | ||||||
Level 3 of fair value hierarchy [member] | Other equity securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 37 | 149 | ||||||
Level 3 of fair value hierarchy [member] | Other Financial Assets [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets at fair value through profit or loss | € 6 | € 5 | ||||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||||
[3] | Amounts in this table are undiscounted | |||||||
[4] | This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement | |||||||
[5] | For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments (including maturity and interest conditions) and therefore fair value information is not included in the table above. | |||||||
[6] | For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the nature of these instruments (including maturity and interest conditions) and therefore fair value information is not included in the table above. | |||||||
[7] | The majority of the balance reflects the remaining stake in Signify (formerly Philips Lighting), which relates to equity instruments. |
Fair value of financial asset_5
Fair value of financial assets and liabilities - Reconciliation of Level 3 fair value measurements (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | |||||
Financial assets | € 6,445 | € 6,718 | |||
Financial liabilities | 8,118 | 7,858 | |||
Level 3 of fair value hierarchy [member] | |||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | |||||
Financial liabilities | 354 | 409 | € 66 | ||
Assumed in a Business Combination | 6 | ||||
Utilizations | (44) | 48 | |||
Gains (losses) recognised in profit or loss including exchange differences, fair value measurement, liabilities | (35) | 5 | |||
Financial income and expenses | 14 | 12 | |||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, liabilities | 4 | [1] | 5 | [2] | |
Level 3 of fair value hierarchy [member] | Financial assets, class [member] | |||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | |||||
Financial assets | 212 | 255 | € 372 | ||
Purchases, fair value measurement, assets | 54 | 30 | |||
Sales, fair value measurement, assets | 24 | 35 | |||
Financial income and expenses | 2 | 0 | |||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, assets | (120) | [1] | (145) | [2] | |
Receivables Held To Collect And Sell | € 46 | € (15) | |||
[1] | Includes translation differences | ||||
[2] | Includes translation differences |
Fair value of financial asset_6
Fair value of financial assets and liabilities - Reconciliation of the fair value hierarchy (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||
Financial assets | € 6,445 | € 6,718 | ||||
Financial liabilities | 8,118 | 7,858 | ||||
IFRS 9 And 15 Adjustment | (29) | |||||
Level 3 of fair value hierarchy [member] | ||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||
Financial liabilities | 354 | 409 | € 66 | |||
Financial liabilities recognised as of acquisition date | 370 | |||||
Utilizations | (44) | 48 | ||||
Gains (losses) recognised in profit or loss including exchange differences, fair value measurement, liabilities | (35) | 5 | ||||
Financial income and expenses | 14 | 12 | ||||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, liabilities | 4 | [1] | 5 | [2] | ||
Financial assets, class [member] | Level 3 of fair value hierarchy [member] | ||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||
Financial assets | 212 | 255 | 372 | |||
IFRS 9 And 15 Adjustment | [3] | 47 | ||||
Purchases, fair value measurement, assets | 54 | 30 | ||||
Sales, fair value measurement, assets | 24 | 35 | ||||
Financial income and expenses | 2 | 0 | ||||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, assets | (120) | [1] | (145) | [2] | ||
Receivables Held To Collect And Sell | € 46 | € (15) | ||||
Financial assets, class [member] | Level 3 of fair value hierarchy [member] | IFRS 9 [Member] | ||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||
Financial assets | € 420 | |||||
[1] | Includes translation differences | |||||
[2] | Includes translation differences | |||||
[3] | IFRS 9 adjustments relates to Receivables-current carried at FVTOCI. For further information refer to Significant accounting policies note. |
Fair value of financial asset_7
Fair value of financial assets and liabilities - Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements (Detail) - Derivatives [member] - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Gross financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | € 39 | € 36 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 39 | 36 |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial assets | 33 | 25 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements, total | € 6 | € 12 |
Fair value of financial asset_8
Fair value of financial assets and liabilities - Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements (Detail) - Derivatives [member] - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Gross financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € 191 | € 290 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 191 | 290 |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 33 | 25 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements, total | € 158 | € 265 |
Details of treasury and other_3
Details of treasury and other financial risks - Text Details (Detail) € in Millions, $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016EUR (€) | |||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Cash and cash equivalents | [2] | € 1,425 | [1] | € 1,688 | [1] | € 1,939 | [1] | € 2,334 | ||
Short-term deposits, classified as cash equivalents | 884 | 1,174 | ||||||||
Other non-current financial assets | 248 | 360 | 587 | |||||||
Contractual capital commitments | 61 | 86 | ||||||||
Accounts payable known to have been sold onwards under supplier finance arrangements | € 212 | |||||||||
Information about potential exposure to future cash outflows not reflected in measurement of lease liability | EUR 50 million | |||||||||
Information about exposure arising from leases not yet commenced to which lessee is committed | EUR 99 million | |||||||||
Minimum payments under sale-and-leaseback arrangements | € 108 | 110 | ||||||||
Discounted unguaranteed residual value of assets subject to finance lease | € 0.7 | 0.7 | ||||||||
Hedge tenor of net anticipated exposure | 15 | |||||||||
Net anticipated exposures hedge layer size | 20.00% | |||||||||
Net anticipated exposures hedge maximum | 80.00% | |||||||||
Equity | € 12,625 | [1] | 12,117 | [1] | 12,023 | [1] | 13,453 | |||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | 0 | 0.2 | ||||||||
Net fair value of transactional hedges | € (26) | |||||||||
Increase in the value of the EUR against all currencies | 10.00% | |||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | € (154) | |||||||||
Impact on income statement following a change in the value of transactional hedges due to 10% increase in the value of the EUR against all currencies | 12 | |||||||||
Impact on equity following a change in the value of transactional hedges due to 10% increase in the value of the EUR against all currencies | 142 | |||||||||
Other comprehensive income, before tax, exchange differences on translation | 218 | 383 | (1,177) | |||||||
Cross-currency interest rate swaps nominal value | $ | $ 500 | $ 1,100 | ||||||||
Fair value liability of cross-currency interest rate swaps designated as net investment hedges | 123 | 246 | ||||||||
External bond funding for a nominal value designated as net investment hedges | $ | $ 1,473 | $ 1,473 | ||||||||
External bond funding book value designated as net investment hedges | (1,328) | 1,290 | ||||||||
Net fair value of financing derivatives | 123 | 246 | ||||||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | 7 | 63 | ||||||||
Borrowings | [1] | 5,447 | 4,821 | 4,715 | ||||||
Non-current portion of non-current borrowings | [1] | 4,939 | [3] | 3,427 | [3] | 4,044 | ||||
Current borrowings and current portion of non-current borrowings | [1] | € 508 | [3] | € 1,394 | [3] | 672 | ||||
Ratio of fixed-rate long-term debt to total outstanding debt | 87.00% | 67.00% | 87.00% | 67.00% | ||||||
Borrowings, maturity | 8.0 | |||||||||
Instantaneous increase or decrease in long-term interest rates | 1.00% | |||||||||
Financial assets, at fair value | € 324 | € 817 | ||||||||
Threshold of cash and short term deposits with A- credit rating | 10 | |||||||||
Captive retained per claim for general, product and professional liability claims | 5 | |||||||||
Captive retained per claim for general, product and professional liability claims, aggregate | 10 | |||||||||
Bottom of range [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Policy deductibles per occurrence | 0.3 | |||||||||
Top of range [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Policy deductibles per occurrence | 5 | |||||||||
CHINA | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 1,400 | |||||||||
UNITED KINGDOM | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 681 | |||||||||
INDIA | Bottom of range [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 300 | |||||||||
INDIA | Top of range [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 500 | |||||||||
JAPAN | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 690 | |||||||||
NETHERLANDS | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 1,700 | |||||||||
Other countries [Member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 500 | |||||||||
UNITED STATES | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Country risk exposure | 11,400 | |||||||||
United States of America, Dollars | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (85) | (75) | ||||||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | 79 | |||||||||
Change in the value of derivatives following a 10% increase in the value of a currency against EUR | 53 | |||||||||
Cash flow hedges [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | (0.8) | 0 | ||||||||
Change in value of forward elements of forward contracts and time value of options[Member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Equity | (19) | |||||||||
Reserve of cash flow hedges [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Equity | (24) | (10) | € 23 | € 10 | ||||||
Level 1 of fair value hierarchy [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Financial assets, at fair value | 15 | 476 | ||||||||
Level 1 of fair value hierarchy [member] | Signify Member | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Investments in equity instruments designated at fair value through other comprehensive income | 435 | |||||||||
Level 1 of fair value hierarchy [member] | Equity investments [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Other non-current financial assets | 15 | |||||||||
Financial assets, at fair value | 15 | 476 | ||||||||
Level 2 and 3 of fair value hierarchy [member] | Equity investments [member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Financial assets measured at fair value through other comprehensive income | € 37 | |||||||||
Royal Philips NV [Member] | ||||||||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||||||||
Commercial Paper Program | $ | $ 2,500 | |||||||||
Undrawn borrowing facilities | € 1,000 | |||||||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information | |||||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||||||
[3] | Includes the impact of IFRS 16 lease accounting following its adoption as of January 1, 2019. For more details refer to the Significant accounting policies |
Details of treasury and other_4
Details of treasury and other financial risks - Contractual cash obligations (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | € 5,699 | ||
Gross lease liabilities | 1,533 | [1],[3] | € 357 | |
Short-term debt | [1],[3] | 92 | ||
Derivative liabilities | [1],[3] | 192 | ||
Purchase obligations | [1],[3],[4] | 822 | ||
Trade and other current payables | 2,089 | [1],[3] | 2,303 | |
Contractual cash obligations, total | [1],[3] | 10,427 | ||
Later than five years [member] | ||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 3,932 | ||
Gross lease liabilities | 543 | [1],[3] | 52 | |
Purchase obligations | [1],[3],[4] | 48 | ||
Contractual cash obligations, total | [1],[3] | 4,523 | ||
Later than one year and not later than three years [member] | ||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 293 | ||
Gross lease liabilities | [1],[3] | 438 | ||
Derivative liabilities | [1],[3] | 1 | ||
Purchase obligations | [1],[3],[4] | 344 | ||
Contractual cash obligations, total | [1],[3] | 1,075 | ||
Later than three years and not later than five years [member] | ||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 1,218 | ||
Gross lease liabilities | [1],[3] | 261 | ||
Derivative liabilities | [1],[3] | 123 | ||
Purchase obligations | [1],[3],[4] | 61 | ||
Contractual cash obligations, total | [1],[3] | 1,662 | ||
Not later than one year [member] | ||||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 256 | ||
Gross lease liabilities | 292 | [1],[3] | € 100 | |
Short-term debt | [1],[3] | 92 | ||
Derivative liabilities | [1],[3] | 68 | ||
Purchase obligations | [1],[3],[4] | 370 | ||
Trade and other current payables | [1],[3] | 2,089 | ||
Contractual cash obligations, total | [1],[3] | € 3,167 | ||
[1] | Amounts in this table are undiscounted | |||
[2] | Long-term debt includes interest and the current portion of long-term debt and excludes lease obligations. | |||
[3] | This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement | |||
[4] | Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not include open purchase orders or other commitments which do not specify all significant terms. |
Details of treasury and other_5
Details of treasury and other financial risks - Lease - minimum payments under sale-and-leaseback arrangements (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | € 108 | € 110 |
Later than five years [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 125 | |
Later than four years and not later than five years [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 33 | |
Later than one year and not later than two years [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 97 | |
Later than three years and not later than four years [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 52 | |
Later than two years and not later than three years [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 73 | |
Not later than one year [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | € 112 |
Details of treasury and other_6
Details of treasury and other financial risks - Estimated transaction exposure and related hedges (Detail) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables cash flow [Member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | € 1,606 | € 960 |
Hedge of transaction exposure | 809 | |
Payables cash flow [Member] | Cash flow hedges [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Hedge of transaction exposure | 1,244 | |
Payables cash flow [Member] | Switzerland, Francs | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 0 | |
Payables cash flow [Member] | China, Yuan Renminbi | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 141 | |
Hedge of transaction exposure | 136 | |
Payables cash flow [Member] | United Kingdom, Pounds | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 24 | |
Hedge of transaction exposure | 23 | |
Payables cash flow [Member] | Japan, Yen | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 10 | |
Hedge of transaction exposure | 10 | |
Payables cash flow [Member] | Others [Member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 523 | |
Hedge of transaction exposure | 290 | |
Payables cash flow [Member] | United States of America, Dollars | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 907 | |
Hedge of transaction exposure | 786 | |
Receivables cash flow [Member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 5,233 | 3,930 |
Hedge of transaction exposure | 3,292 | € 2,562 |
Receivables cash flow [Member] | Australia, Dollars | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 225 | |
Hedge of transaction exposure | 133 | |
Receivables cash flow [Member] | Canada, Dollars | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 283 | |
Hedge of transaction exposure | 161 | |
Receivables cash flow [Member] | Switzerland, Francs | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 110 | |
Hedge of transaction exposure | 58 | |
Receivables cash flow [Member] | China, Yuan Renminbi | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 456 | |
Hedge of transaction exposure | 322 | |
Receivables cash flow [Member] | Czech Republic, Koruny | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 108 | |
Hedge of transaction exposure | 37 | |
Receivables cash flow [Member] | United Kingdom, Pounds | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 371 | |
Hedge of transaction exposure | 203 | |
Receivables cash flow [Member] | Japan, Yen | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 870 | |
Hedge of transaction exposure | 478 | |
Receivables cash flow [Member] | Others [Member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 280 | |
Hedge of transaction exposure | 240 | |
Receivables cash flow [Member] | Poland, Zlotych | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 275 | |
Hedge of transaction exposure | 96 | |
Receivables cash flow [Member] | Russia, Rubles | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 58 | |
Receivables cash flow [Member] | Russia, Rubles | Cash flow hedges [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Hedge of transaction exposure | 58 | |
Receivables cash flow [Member] | Sweden, Kronor | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 71 | |
Hedge of transaction exposure | 38 | |
Receivables cash flow [Member] | United States of America, Dollars | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 2,125 | |
Hedge of transaction exposure | € (1,467) |
Details of treasury and other_7
Details of treasury and other financial risks - Estimated impact of 10% increase of value of the EUR on the fair value of hedges (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | € (154) | |
Switzerland, Francs | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (5) | € (5) |
United Kingdom, Pounds | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (14) | (7) |
Japan, Yen | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (19) | (15) |
Poland, Zlotych | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (9) | (6) |
RUB [member] | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (3) | (2) |
United States of America, Dollars | ||
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | € (85) | € (75) |
Details of treasury and other_8
Details of treasury and other financial risks - Net debt and interest rate sensitivity (Detail) - Interest rate risk [member] - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |||
Increase in the value of the fixed rate long term debt excluding forward contracts driven by 1% interest decrease | [1],[2],[3] | € (300) | € (275) |
Decrease in the value of the fixed rate long term debt excluding forward contracts driven by 1% interest increase | [1],[2],[3] | 301 | 276 |
Annualized net interest expense driven by 1% interest increase | [2],[4] | € 11 | € 9 |
[1] | Fixed-rate long-term debt is excluding forward contracts. | ||
[2] | The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Equity | ||
[3] | The sensitivity analysis conducted shows that if long-term interest rates were to increase/decrease instantaneously by 1% from their level of December 31st, 2019, with all other variables (including foreign exchange rates) held constant. | ||
[4] | The impact is based on the outstanding net cash position (after excluding fixed-rate debt) at December 31, 2019. |
Details of treasury and other_9
Details of treasury and other financial risks - Credit risk with number of counterparties (Detail) | Dec. 31, 2019 |
10-100 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 2 |
100-500 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 7 |
A- rated [Member] | 10-100 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
A- rated [Member] | 100-500 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
AA- rated [Member] | 100-500 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
A+ rated [Member] | 10-100 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
A+ rated [Member] | 100-500 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 3 |
A rated [Member] | 100-500 million [Member] | |
Details of treasury and other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 2 |
Subsequent events - Text Detail
Subsequent events - Text Details (Detail) - EUR (€) € in Millions, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Subsequent events - Text Details (Detail) [Line Items] | |||||
Revenue | € 19,482 | [1] | € 18,121 | [2] | € 17,780 |
Purchase of treasury shares | 621 | € 514 | € 318 | ||
Share repurchase LTI 2020 [member] | |||||
Subsequent events - Text Details (Detail) [Line Items] | |||||
Purchase of treasury shares | € 265 | ||||
Number of treasury shares | 6 | ||||
Share repurchase program 2019 [member] | |||||
Subsequent events - Text Details (Detail) [Line Items] | |||||
Purchase of treasury shares | € 1,500 | ||||
Domestic Appliances business group [member] | |||||
Subsequent events - Text Details (Detail) [Line Items] | |||||
Revenue | € 2,300 | ||||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[2] | Represents revenue from external customers as required by IFRS 8 Operating Segments. |