Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021€ / sharesshares | |
Document And Entity Information [Line Items] | |
Entity Central Index Key | 0000313216 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
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, 2021 |
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 | 870,182,445 |
Entity Listing, Par Value Per Share | € / shares | € 0.2 |
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 |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Name | Ernst & Young Accountants LLP |
Auditor Firm ID | 1396 |
Auditor Location | Amsterdam, the Netherlands |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Consolidated statements of income [Abstract] | |||||||
Sales | € 17,156 | € 17,313 | € 17,147 | ||||
Cost of sales | 9,988 | 9,493 | 9,249 | ||||
Gross margin | 7,168 | 7,820 | 7,899 | ||||
Selling expenses | 4,258 | 4,054 | 4,125 | ||||
General and administrative expenses | 599 | 630 | 586 | ||||
Research and development expenses | 1,806 | 1,822 | 1,790 | ||||
Other business income | 186 | 122 | 154 | ||||
Other business expenses | 138 | 173 | 186 | ||||
Income from operations | [1] | 553 | 1,264 | 1,366 | |||
Financial income | [1] | 149 | 158 | 114 | |||
Financial expenses | [1] | 188 | 202 | 233 | |||
Investments in associates, net of income taxes | [1] | (4) | (9) | 1 | |||
Income before taxes | 509 | 1,211 | 1,248 | ||||
Income tax expense | [1] | (103) | 212 | 258 | |||
Income from continuing operations | [3] | 612 | [2] | 999 | [2] | 990 | |
Discontinued operations, net of income taxes | [4] | 2,711 | [2],[5] | 196 | [1],[3] | 183 | [1],[3] |
Net income | [4] | 3,323 | [2],[5] | 1,195 | [1],[5] | 1,173 | [1] |
Net income attributable to Koninklijke Philips N.V. shareholders | [3] | 3,319 | 1,187 | 1,167 | |||
Net income attributable to non-controlling interests | € 4 | € 8 | € 5 | ||||
Basic earnings per common share in EUR - Income from continuing operations attributable to shareholders | € 0.67 | € 1.09 | € 1.07 | ||||
Basic earnings per common share in EUR - Net income attributable to shareholders | [3] | 3.67 | 1.31 | 1.27 | |||
Diluted earnings per common share in EUR - Income from continuing operations attributable to shareholders | 0.67 | 1.08 | 1.06 | ||||
Diluted earnings per common share in EUR - Net income attributable to shareholders | [3] | € 3.65 | € 1.29 | € 1.25 | |||
[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 | ||||||
[3] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[4] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[5] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Consolidated statements of comprehensive income [Abstract] | |||||||
Net income for the period | [1] | € 3,323 | [2],[3] | € 1,195 | [3],[4] | € 1,173 | [4] |
Pensions and other-post employment plans: Remeasurement | 134 | 51 | 30 | ||||
Pensions and other-post employment plans: Income tax effect on remeasurements | 21 | 12 | (3) | ||||
Financial assets fair value through OCI: Net current-period change, before tax | (39) | 0 | 82 | ||||
Financial assets fair value through OCI: Income tax effect on net current-period change | 1 | ||||||
Total of items that will not be reclassified to Income Statement | 74 | 39 | 114 | ||||
Currency translation differences: Net current period change, before tax | 1,078 | (1,040) | 218 | ||||
Currency translation differences: Income tax effect on net current-period change | 5 | (1) | 0 | ||||
Currency translation differences: Reclassification adjustment for (gain) loss realized | (36) | 4 | |||||
Currency translation differences: Reclassification adjustment for (gain) loss realized, in discontinued operations | (69) | (16) | |||||
Cash flow hedges: Net current-period change, before tax | (52) | 69 | (53) | ||||
Cash flow hedges: Income tax effect on net current-period change | (18) | 17 | (6) | ||||
Cash flow hedges: Reclassification adjustment for (gain) loss realized | 14 | 6 | (33) | ||||
Total of items that are or may be reclassified to Income Statement | 1,129 | (992) | 225 | ||||
Other comprehensive income for the period | 1,203 | (953) | 340 | ||||
Total comprehensive income for the period | 4,527 | 242 | 1,512 | ||||
Total comprehensive income attributable to: Shareholders of Koninklijke Philips N.V | 4,520 | 235 | 1,507 | ||||
Total comprehensive income attributable to: Non-controlling interests | € 7 | € 6 | € 5 | ||||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | ||
Consolidated balance sheets [Abstract] | ||||
Property, plant and equipment | € 2,699 | € 2,682 | ||
Goodwill | 10,637 | 8,014 | ||
Intangible assets excluding goodwill | 3,650 | 2,997 | ||
Non-current receivables | 224 | 230 | ||
Investments in associates | 426 | 240 | ||
Other non-current financial assets | 630 | 430 | ||
Non-current derivative financial assets | 2 | 6 | ||
Deferred tax assets | 2,216 | 1,820 | ||
Other non-current assets | 129 | 66 | ||
Total non-current assets | 20,613 | 16,486 | ||
Inventories | 3,450 | 2,993 | ||
Other current financial assets | 2 | 0 | ||
Other current assets | 493 | 424 | ||
Current derivative financial assets | 61 | 105 | ||
Income tax receivable | 180 | 150 | ||
Current receivables | 3,787 | 4,156 | ||
Assets classified as held for sale | 71 | 173 | ||
Cash and cash equivalents | [1],[2] | 2,303 | 3,226 | |
Total current assets | 10,347 | 11,227 | ||
Total assets | 30,961 | 27,713 | ||
Equity | [2] | 14,438 | 11,870 | |
Equity - Common shares | 177 | 182 | ||
Equity - Reserves | 748 | (340) | ||
Equity - Other | 13,514 | 12,028 | ||
Non-controlling interests | [2] | 36 | 31 | |
Group equity | [2] | 14,475 | 11,901 | |
Long-term debt | [2] | 6,473 | 5,705 | |
Non-current derivative financial liabilities | 119 | 86 | ||
Long-term provisions | 1,315 | 1,458 | ||
Deferred tax liabilities | 83 | 59 | ||
Non-current contract liabilities | 446 | 403 | ||
Non-current tax liabilities | 544 | 291 | ||
Other non-current liabilities | 56 | 74 | ||
Total non-current liabilities | 9,037 | 8,077 | ||
Short-term debt | [2] | 506 | 1,229 | |
Current derivative financial liabilities | 83 | 77 | ||
Income tax payable | 128 | 57 | ||
Accounts payable | 1,872 | [3],[4] | 2,119 | |
Accrued liabilities | 1,784 | 1,678 | ||
Current contract liabilities | 1,491 | 1,239 | ||
Short-term provisions | 998 | 522 | ||
Liabilities directly associated with assets held for sale | 1 | 30 | ||
Other current liabilities | 587 | 785 | ||
Total current liabilities | 7,450 | 7,735 | ||
Total liabilities and group equity | € 30,961 | € 27,713 | ||
[1] | 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 in the accompanying notes of the consolidated financial statements. | |||
[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] | 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. |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Consolidated statements of cash flows [Abstract] | |||||||
Profit (loss) | [1] | € 3,323 | [2],[3] | € 1,195 | [3],[4] | € 1,173 | [4] |
Results of discontinued operations, net of income tax | [1] | 2,711 | [2],[3] | 196 | [4],[5] | 183 | [4],[5] |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation, amortization, and impairment of fixed assets | [1] | 1,323 | 1,462 | 1,343 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Impairment of goodwill and other non-current financial assets | [1] | 15 | 144 | 97 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Share-based compensation | [1] | 108 | 112 | 96 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net loss (gain) on sale of assets | [1] | (55) | 1 | 78 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Interest income | [1] | 18 | 13 | 25 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Interest expense on debt, borrowings, and other liabilities | [1] | 152 | 159 | 174 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Income taxes | [1] | (103) | 212 | 258 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Investments in associates, net of income taxes | [1] | 4 | 8 | 6 | |||
Decrease (increase) in working capital | [1] | 401 | 98 | 791 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Decrease (increase) in receivables and other current assets | [1] | (39) | 92 | (234) | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Decrease (Increase) in inventories | [1] | (581) | (578) | (202) | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: Increase (decrease) in accounts payable, accrued and other current liabilities | [1] | 219 | 387 | (354) | |||
Decrease (increase) in non-current receivables, other assets and other liabilities | [1] | (13) | 41 | 124 | |||
Increase (decrease) in provisions | [1] | 427 | (91) | 29 | |||
Other items | [1] | (164) | 96 | 77 | |||
Interest paid | [1] | 151 | 148 | 171 | |||
Interest received | [1] | 17 | 13 | 25 | |||
Dividends received from investments in associates | [1] | 14 | 4 | 12 | |||
Income taxes paid | [1] | 249 | 390 | 354 | |||
Net cash provided by (used for) operating activities | [1] | 1,629 | 2,511 | 1,813 | |||
Cash flows from investing activities - Net capital expenditures | [1] | 729 | 876 | 891 | |||
Cash flows from investing activities - Purchase of intangible assets | [1] | 107 | 114 | 138 | |||
Cash flows from investing activities - Expenditures on development assets | [1] | 259 | 296 | 327 | |||
Cash flows from investing activities - Capital expenditures on property, plant and equipment | [1] | 397 | 485 | 486 | |||
Cash flows from investing activities - Proceeds from sales of property, plant and equipment | [1] | 33 | 19 | 60 | |||
Cash flows from investing activities - Net proceeds from (cash used for) derivatives and current financial assets | [1] | 48 | (13) | 385 | |||
Cash flows from investing activities - Purchase of other non-current financial assets | [1] | 124 | 131 | 63 | |||
Cash flows from investing activities - Proceeds from other non-current financial assets | [1] | 124 | 65 | 162 | |||
Cash flows from investing activities - Purchase of businesses, net of cash acquired | [1] | 3,098 | 317 | 252 | |||
Cash flows from investing activities - Net proceeds from sale of interests in businesses, net of cash disposed of | [1] | 107 | 4 | 146 | |||
Net cash provided by (used for) for investing activities | [1] | (3,672) | (1,267) | (512) | |||
Cash flows from financing activities - Proceeds from issuance (payments on) short-term debt | [1] | (25) | 16 | 23 | |||
Cash flows from financing activities - Principal payments on short-term portion of long-term debt | [1] | 302 | 298 | 756 | |||
Cash flows from financing activities - Proceeds from issuance of long-term debt | [1] | 76 | 1,065 | 847 | |||
Cash flows from financing activities - Re-issuance of treasury shares | [1] | 23 | 46 | 58 | |||
Cash flows from financing activities - Purchase of treasury shares | [1] | 1,636 | 343 | 1,376 | |||
Cash flows from financing activities - Dividends paid to shareholders of Koninklijke Philips N.V | [1] | 482 | 1 | 453 | |||
Cash flows from financing activities - Dividends paid to shareholders of non-controlling interests | [1] | 2 | 2 | 2 | |||
Net cash provided by (used for) financing activities | [1] | (2,347) | 483 | (1,660) | |||
Net cash provided by (used for) continuing operations | [1] | (4,390) | 1,727 | (359) | |||
Net cash provided by (used for) discontinued operations | [1] | 3,403 | 129 | 98 | |||
Net cash provided by (used for) continuing and discontinued operations | [1] | (986) | 1,856 | (262) | |||
Effect of changes in exchange rates on cash and cash equivalents | [1] | 65 | (55) | (2) | |||
Cash and cash equivalents at the beginning of the year | [1] | 3,226 | [6] | 1,425 | [6] | 1,688 | |
Cash and cash equivalents at the end of the period | [1],[6] | € 2,303 | € 3,226 | € 1,425 | |||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[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] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Millions | Total | Issued capital [member] | Reserve of exchange differences on translation [member] | Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | Reserve of cash flow hedges [member] | Share premium [member] | Retained earnings [member] | Treasury shares [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | |
Balance as of Jan. 1, 2019 at Dec. 31, 2018 | € 12,084 | € 185 | € 739 | € (181) | € (10) | € 3,487 | € 8,232 | € (399) | € 12,055 | € 29 | |
Total comprehensive income (loss) | 1,512 | 239 | 82 | (13) | 1,200 | 1,507 | 5 | ||||
Dividend distributed | 456 | (2) | (319) | 775 | 453 | 2 | |||||
Minority Buy-out | (6) | (3) | (3) | (3) | |||||||
Transfer of gain on disposal of equity investments at FVTOCI to retained earnings | (204) | 204 | |||||||||
Purchase of treasury shares | 621 | 621 | 621 | ||||||||
Re-issuance of treasury shares | 31 | (246) | 11 | 266 | 31 | ||||||
Forward contracts | 706 | (706) | |||||||||
Share call options | (30) | 28 | (58) | (30) | |||||||
Cancellation of treasury shares | (8) | (1,308) | 1,316 | ||||||||
Share-based compensation plans | 101 | 101 | 101 | ||||||||
Income tax share-based compensation plans | (10) | (10) | (10) | ||||||||
Balance as of Dec. 31, 2019 at Dec. 31, 2019 | 12,625 | [1] | 179 | 978 | (303) | (24) | 3,671 | 8,296 | (201) | 12,597 | 28 |
Total comprehensive income (loss) | 242 | (1,036) | 0 | 46 | 1,225 | 235 | 6 | ||||
Dividend distributed | 26 | (4) | (754) | 782 | 25 | 2 | |||||
Minority Buy-out | (1) | (1) | |||||||||
Transfer of gain on disposal of equity investments at FVTOCI to retained earnings | 0 | (2) | 2 | 0 | |||||||
Purchase of treasury shares | 130 | 0 | 130 | 130 | |||||||
Re-issuance of treasury shares | 23 | 0 | (146) | 7 | 161 | 23 | |||||
Forward contracts | (920) | (793) | (126) | (920) | |||||||
Share call options | (31) | 24 | (55) | (31) | |||||||
Cancellation of treasury shares | (1) | (151) | 152 | ||||||||
Share-based compensation plans | 116 | 116 | 116 | ||||||||
Income tax share-based compensation plans | (4) | (4) | (4) | ||||||||
Balance as of Dec. 31, 2019 at Dec. 31, 2020 | 11,901 | [1] | 182 | (58) | (305) | 23 | 4,400 | 7,828 | (199) | 11,870 | 31 |
Total comprehensive income (loss) | 4,527 | 1,175 | (39) | (48) | 3,432 | 4,520 | 7 | ||||
Dividend distributed | 484 | (1) | (290) | 773 | 482 | 2 | |||||
Minority Buy-out | 0 | 0 | |||||||||
Transfer of gain on disposal of equity investments at FVTOCI to retained earnings | 0 | 0 | 0 | ||||||||
Purchase of treasury shares | 757 | 0 | 758 | 757 | |||||||
Re-issuance of treasury shares | 11 | (150) | 18 | 143 | 11 | ||||||
Forward contracts | (821) | 48 | (869) | ||||||||
Share call options | (9) | 12 | (21) | ||||||||
Cancellation of treasury shares | 1,228 | (7) | (1,221) | 1,228 | |||||||
Share-based compensation plans | 110 | 110 | 110 | ||||||||
Income tax share-based compensation plans | 4 | 4 | 4 | ||||||||
Balance as of Dec. 31, 2019 at Dec. 31, 2021 | € 14,475 | [1] | € 177 | € 1,117 | € (344) | € (25) | € 4,646 | € 9,344 | € (476) | € 14,438 | € 36 |
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Consolidated statements of ch_2
Consolidated statements of changes in equity (Parenthetical) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Associates [member] | |||
Reserve of exchange differences on translation | € 32 | € 48 | € 44 |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies [Abstract] | |
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 2021 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 on a going concern basis. 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. See note COVID-19 The areas where the most significant judgments and estimates are made are goodwill, deferred tax asset recoverability, recognition and measurement of provisions, valuation of inventories, 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. Climate-related matters In preparing the Consolidated Financial Statements management has considered the impact of climate change, specifically the financial impact of Philips meeting its internal and external climate related aims, the potential impact of climate related risks and the costs incurred to pro-actively manage such risks. These considerations did not have a material impact on the financial reporting judgements, estimates or assumptions. The specific financial impacts considered include, for example: specific climate mitigation measures, such as the use of lower carbon energy sources, the costs of developing more sustainable product offerings and expenses incurred to mitigate against the impact of extreme weather conditions. 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 item mentioned below. In addition, certain prior-year amounts have been reclassified to conform to the current year presentation. Domestic Appliances Prior-period financial statements have been restated for the treatment of the Domestic Appliances business as a discontinued operation, see further information in Discontinued operations and assets classified as held for sale Acquisitions and divestments 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. In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities or, alternatively, a 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 assets and liabilities. Such changes to tax assets and 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, it is probable that an outflow of economic benefits will be required to settle the obligation and , the amount can be estimated reliably. 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: Field action provision –This provision relates to the Philips Respironics voluntary recall notification in the United States and field safety notice outside the United States for certain sleep and respiratory care products related to the polyester-based polyurethane (PE-PUR) sound abatement foam in these devices 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, and include costs to execute field change orders. The field action provision in connection with the Philips Respironics voluntary recall notification is shown separately above. Environmental provisions – The environmental provisions relate to cost of environmental remediation in various countries. 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. Legal provisions – Legal provisions relate to legal proceedings, including regulatory and other governmental proceedings. 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 |
COVID-19
COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
COVID-19 [Abstract] | |
COVID-19 [Text Block] | 2 In 2021 the pandemic continued to affect the global economy and there remains uncertainty and volatility related to the impact of COVID-19, including global supply chain challenges. Where relevant, the impact of the COVID-19 pandemic and resulting uncertainties on the company’s results, balance sheet and cash flows have been considered and are reflected in amounts reported. The impact of the pandemic on significant accounting matters is disclosed below. Other areas have also been affected, but did not have a significant impact and are therefore not separately disclosed. COVID-19 did not result in any other material adjustments to the carrying amounts of assets and liabilities during the year-ended December 31, 2021, other than the impacts on the EPD business as disclosed in Intangible assets excluding goodwill Provisions Estimates and uncertainties As a result of the uncertainties associated with the nature of the COVID-19 pandemic, and in line with existing accounting policies, the company regularly updates its significant assumptions and estimates to support the reported amounts of assets, liabilities, income and expenses. In relation to areas of judgment and estimates as disclosed in our Significant accounting policies Impairment testing Impairment testing of goodwill and intangible assets not 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 such testing. In addition, for all goodwill and intangible assets not yet ready for use an annual impairment test was performed during 2021. In determining the recoverable amounts, consideration was given to the uncertainties embedded in the discounted cash flow projections and the appropriateness of key assumptions used in light of the pandemic, which included increased uncertainties around forecasted revenues, costs and other factors. Further details on these impairment procedures and the results thereof are disclosed in Goodwill Intangible assets excluding goodwill Impairment testing 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. Where such an instance was identified, the impact of the pandemic and resulting uncertainties have been taken into account when assessing the recoverable amount. Further details on the results of these impairment procedures are disclosed in Intangible assets excluding goodwill Impairment testing of financial assets The company recognizes an allowance for expected credit losses (ECLs) for trade receivables, contract assets, lease receivables and debt investments carried at fair value through Other comprehensive income (FVTOCI) and amortized cost. In line with the accounting policy disclosed in the Significant accounting policies In making these assessments, all reasonable and supportable information was considered. Examples of indicators identified included counterparties breaching their agreed payment terms and counterparties requesting extended payment terms or (partial) waivers. In addition, forward looking elements were taken into consideration such as a deterioration of the credit rating of a counterparty or changes in risks associated with specific countries or regions due to COVID-19. Albeit the methodology applied is consistent with prior periods, certain of these factors triggered by the pandemic required updated assessments of the ECLs. Relevant financial assets were individually assessed and additional ECL allowances were accounted for in those cases where deemed necessary. The overall impact of the increase in the level of ECLs did not have a material impact on the company’s financial assets. The company further concluded that none of the agreed changes with counterparties resulted in a substantial modification of such instruments under IFRS 9 Financial instruments. Fair values Certain of the company’s financial instruments and other assets and liabilities are carried at fair value. The fair values included in these Consolidated financial statements reflect market participant views and market data at the measurement date under current market conditions. This implies that due to the increased volatility and uncertainty in the financial markets due to the pandemic, these fair values are subject to significant estimates, in particular for assets and liabilities for which the fair value is based on unobservable inputs (sometimes referred to as Level 3 measurements). Expectations around future cash flows, discount rates and other significant valuation inputs related to the asset or liability as of December 31, 2021 have become subject to a greater level of uncertainty. The fair values determined taking into account these revised input parameters have been reflected in the consolidated balance sheet as of December 31, 2021. Other than the impacts on the EPD business as disclosed in Intangible assets excluding goodwill Provisions Fair value of financial assets and liabilities Employee benefit accounting COVID-19 also had an impact on the company’s long-term employee benefits, including defined-benefit plans. Volatility in the financial markets following the COVID-19 outbreak resulted in increased judgment being required in setting key parameters used in determining these benefits, including discount rates, mortality rates, retention rates and other assumptions supporting the actuarial calculations. In those situations, we established the most appropriate parameters with the help of actuaries and taking into consideration relevant economic conditions. For our funded defined-benefit plans, increased fluctuations in the fair values of the plan assets during the financial year ended December 31, 2021 also caused further volatility in the net obligation. Neither of these impacts were significant for the balances as of December 31, 2021. Provisions other than employee benefits As described in the Significant accounting policies Inventories The company’s inventories are stated at the lower of cost or net realizable value. In determining the appropriate level of provision for obsolescence, changes in the aging of inventory items in certain businesses and markets due to COVID-19 were considered throughout the year. In addition, current and potential excess stock levels were analyzed, incorporating the impact COVID-19 had on demand in 2021 as well as revised expectations of future demand for these items. No material change in the provision for obsolescence was identified as a result of these procedures. Taxes In response to COVID-19, many governments have changed tax regulations aimed at deferring tax filings and payments, providing tax relief and offering financial assistance. Apart from applied payment deferrals on social contribution payments, the company has no material payment deferrals. In determining the recoverability of deferred tax assets, the company took into account the uncertainties caused by the COVID-19 pandemic in its projections on the results of future operations that will generate taxable income, which did not result in a significant impact. Treasury and other financial risks In terms of liquidity the company has a solid liquidity position and the company’s liquidity risk management procedures have not changed significantly during 2021 because of COVID-19. No significant concentration risks have been identified as a result of COVID-19 and the company continues to have access to its existing lines of credit. These lines of credits, along with other financial risks to which Philips is exposed, are disclosed in Details of treasury and other financial risks |
Information by segment and main
Information by segment and main country | 12 Months Ended |
Dec. 31, 2021 | |
Information by segment and main country [Abstract] | |
Information by segment and main country [Text Block] | 3 Philips Group Information on income statements in millions of EUR sales sales including intercompany depreciation and amortization 1 Adjusted EBITA 2 3 2021 Diagnosis & Treatment 4 8,635 8,846 (459) 1,071 Connected Care 4,593 4,638 (384) 488 Personal Health 3,410 3,441 (130) 599 Other 519 610 (350) (105) Inter-segment eliminations (379) Philips Group 17,156 17,156 (1,323) 2,054 2020 Diagnosis & Treatment 8,175 8,289 (536) 818 Connected Care 5,568 5,644 (415) 1,198 Personal Health 3,173 3,172 (144) 426 Other 396 479 (368) (165) Inter-segment eliminations (272) Philips Group 17,313 17,313 (1,462) 2,277 2019 Diagnosis & Treatment 8,485 8,576 (564) 1,078 Connected Care 4,674 4,705 (326) 620 Personal Health 3,516 3,511 (140) 672 Other 472 556 (313) (100) Inter-segment eliminations (201) Philips Group 17,147 17,147 (1,343) 2,270 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 following table. 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 2021 they received a corporate funding out of segment Other of EUR 16 million (2020: EUR 38 million, 2019: EUR 54 million) to support them during their emerging idea-to-market business phase. 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. As of the first quarter of 2021 the Domestic Appliances business is presented as discontinued operation and therefore no longer part of the Operating Segment Personal Health. The comparative results have been restated to reflect the treatment of the Domestic Appliances business as a discontinued operation. 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 Philips Group Diagnosis & Treatment Connected Care Personal Health Other 2021 Net Income 3,323 Discontinued operations, net of income taxes (2,711) Income tax expense (103) Investments in associates, net of income taxes 4 Financial expenses 188 Financial income (149) Income from operations 553 941 (732) 585 (242) Amortization and impairment of intangible assets 322 153 148 15 6 Impairment of goodwill 15 2 13 EBITA 1 890 1,097 (571) 600 (236) Restructuring and acquisition-related charges 95 7 93 (1) (5) Other items 1,069 (32) 965 - 136 Adjusted EBITA 1 2,054 1,071 488 599 (105) 2020 Net Income 1,195 Discontinued operations, net of income taxes (196) Income tax expense 212 Investments in associates, net of income taxes 9 Financial expenses 202 Financial income (158) Income from operations 1,264 497 711 356 (300) Amortization and impairment of intangible assets 377 209 134 16 18 Impairment of goodwill 144 - 144 EBITA 1 1,784 706 989 371 (282) Restructuring and acquisition-related charges 195 29 97 31 37 Other items 299 83 112 24 81 Adjusted EBITA 1 2,277 818 1,198 426 (165) 2019 Net Income 1,173 Discontinued operations, net of income taxes (183) Income tax expense 258 Investments in associates, net of income taxes (1) Financial expenses 233 Financial income (114) Income from operations 1,366 660 269 589 (152) Amortization and impairment of intangible assets 344 177 141 18 8 Impairment of goodwill 97 19 78 EBITA 1 1,807 856 488 607 (144) Restructuring and acquisition-related charges 310 149 64 42 54 Other items 153 73 67 23 (11) Adjusted EBITA 1 2,270 1,078 620 672 (100) 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 sales 1 tangible and intangible assets 2 2021 Netherlands 570 1,934 United States 6,420 12,615 China 2,335 283 Japan 1,073 480 Germany 839 305 United Kingdom 481 567 France 397 49 Other countries 5,040 753 Total main countries 17,156 16,986 2020 Netherlands 404 1,926 United States 6,580 9,080 China 2,319 313 Japan 1,113 511 Germany 980 302 United Kingdom 509 545 Italy 383 111 Other countries 5,024 906 Total main countries 17,313 13,694 2019 Netherlands 391 2,148 United States 6,626 9,864 China 2,427 340 Japan 1,185 550 Germany 805 308 United Kingdom 436 611 France 380 46 Other countries 4,898 1,119 Total main countries 17,147 14,986 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, 2021 | |
Discontinued operations and assets classified as held for sale [Abstract] | |
Discontinued operations and assets classified as held for sale [Text Block] | 4 In 2021, 2020 and 2019 Discontinued operations consist primarily of the Domestic Appliances business. The following table summarizes the results of discontinued operations, net of income taxes, reported in the consolidated statements of income. Philips Group Discontinued operations, net of income taxes in millions of EUR 2019 2020 2021 Domestic Appliances 202 206 2,698 Other (19) (10) 13 Discontinued operations, net of income taxes 183 196 2,711 Discontinued operations: Domestic Appliances On March 25, 2021, Philips signed an agreement to sell its Domestic Appliances business to global investment firm Hillhouse Investment. Since the first quarter of 2021, the Domestic Appliances business is presented as a discontinued operation, and comparative results have been restated to reflect the treatment of the Domestic Appliances business as a discontinued operation, because the sale of the Domestic Appliances business constitutes the discontinuance of a major line of business from the Personal Health segment. The following table summarizes the results of Domestic Appliances included in the Consolidated statements of income as a discontinued operation. Philips Group Results of Domestic Appliances in millions of EUR January to December 2019 2020 2021 Sales 2,335 2,222 1,516 Costs and expenses (2,054) (1,944) (1,322) Income from operations 280 279 194 Result on the sale of discontinued operations 3,241 Income before tax 280 279 3,435 Income tax expense 1 (79) (72) 6 Income tax related the sale of discontinued operations (743) Results from discontinued operations 202 206 2,698 1) The income tax expense from discontinued operations is calculated based on the separate return method, as if Domestic Appliances was filing its own separate tax returns. Costs of EUR 64 million On September 1, 2021, the Company completed the sale of the Domestic Appliances business and recognized a transaction gain before tax of EUR 3,241 million. Philips received consideration of EUR 4,041 million, which is based on an enterprise value of EUR 3,850 million, increased by an amount of EUR 191 million for closing adjustments related to working capital and net indebtedness. The transaction gain before tax is the net effect of (i) the EUR 4,041 million consideration (ii) less the derecognition of net assets employed of EUR 715 million (iii) less transaction related costs of EUR 16 million, (iv) less the release of cumulative translation losses of EUR 69 million included in Other comprehensive income. The income tax charges related to the divestment process was EUR 743 million, resulting in an after-tax transaction gain of EUR 2,499 million. The income tax charge represents the consolidated tax expense resulting from asset transactions completed as part of the disentanglement of the business in anticipation of its sale, a significant portion of which relates to taxes payable in the Netherlands. In addition, Philips and the buyer entered into a 15-year brand license agreement with future annual payments that represents an estimated net present value of approximately EUR 0.7 billion, which will be received and recognized over time. Discontinued operations: Other Certain costs related to other divestments, which were previously reported as discontinued operations, resulted in a net gain of EUR 13 million in 2021 (2020: a net loss of EUR 10 million, 2019: a net loss of EUR 19 million) Discontinued operations cash flows The following table presents the net cash provided by (used for) discontinued operations reported in the Consolidated statements of cash flows. Net cash provided by (used for) Discontinued operations in millions of EUR 2019 2020 2021 Net cash provided by (used for) operating activities 111 129 85 Net cash provided by (used for) investing activities (14) 3,319 Net cash provided by (used for) discontinued operations 98 129 3,403 In 2021, net cash provided by discontinued operations was EUR 3,403 million and consisted primarily of the net cash inflow of EUR 3,319 million from the sale of the Domestic Appliances business on September 1, 2021. In 2020, net cash provided by discontinued operations was EUR 129 million and consisted primarily of cash flows provided by operating activities of the Domestic Appliances business, partly offset by advance income tax payments amounting to EUR 78 million In 2019, net cash provided by discontinued operations was EUR 98 million and consisted primarily of cash flows provided by operating activities of the Domestic Appliances business, partly offset by a payment related to a divestment formerly reported as discontinued operations. Assets classified as held for sale As of December 31, 2021 assets held for sale consists of property, plant and equipment mainly related to the APAC Center Singapore building. As of December 31, 2020, assets held for sale mainly consisted of the Personal Emergency Response Services (PERS) and Senior Living business (previously named the Aging and Caregiving (ACG) business) which was divested on June 30, 2021. For further information, refer to Acquisitions and divestments |
Acquisitions and divestments
Acquisitions and divestments | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions and divestments [Abstract] | |
Acquisitions and divestments [Text Block] | 5 2021 Acquisitions In 2021 Philips completed two acquisitions, BioTelemetry, Inc. and Capsule Technologies, Inc., that involved an aggregate net cash outflow of EUR 2,824 million. Upon acquisition, the company recognized aggregated Goodwill of EUR 2,102 million, Other intangible assets of EUR 840 million and related Deferred tax liabilities of EUR 206 million. The preliminary condensed opening balance sheets of BioTelemetry and Capsule Technologies were as follows: Opening balance sheet in millions of EUR At acquisition date BioTelemetry Capsule Technologies Assets Intangible assets excluding goodwill 623 217 Property, plant and equipment 42 11 Other non-current assets 48 - Deferred tax assets 78 14 Inventories 11 11 Receivables and other current assets 75 97 Cash 205 19 Total Assets 1,083 368 Liabilities Accounts payable and other payables (278) (98) Deferred tax liabilities (160) (46) Long-term liabilities (69) (11) Acquired provision for contingent considerations (16) Total Liabilities (523) (155) Total identifiable net assets at fair value 560 214 Goodwill arising on acquisition 1,776 325 Purchase consideration transferred 2,337 539 The opening balance sheet positions reflect the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed with the acquisitions. The final determination of the fair values will be completed in 2022. As of December 31, 2021, the valuation studies necessary to determine the fair value of the intangible assets and the valuation of goodwill are preliminary. BioTelemetry On February 9, 2021, Philips successfully completed a tender offer to acquire all issued and outstanding shares of BioTelemetry, Inc. for USD 72.00 per share. As a result, BioTelemetry shares were delisted from NASDAQ. The total equity purchase price and the settlement of stock option rights, including BioTelemetry’s cash and debt, involved an amount of EUR 2,132 million and EUR 172 million equity awards consideration paid to employees after the acquisition day. BioTelemetry, headquartered in Malvern, Pennsylvania, is a leading US-based provider of remote cardiac diagnostics and monitoring solutions. BioTelemetry offers a complete range of clinically validated ambulatory cardiac diagnostics and monitoring services: Short term Holter monitoring services, Long-term Holter monitoring services, Event recorder services, and Mobile Cardiac Outpatient Telemetry (MCOT) services. The acquisition of BioTelemetry is a strong fit with Philips’ cardiac care portfolio, and its strategy to transform the delivery of care along the health continuum with integrated solutions. BioTelemetry, forms part of the Connected Care segment. Goodwill recognized in the amount of EUR 1,776 million mainly represents revenue synergies expected from the combination of Philips’ cardiac care portfolio and its strategy to transform the delivery of care along the health continuum with integrated solutions, and BioTelemetry complete range of clinically validated ambulatory cardiac diagnostics and monitoring services. BioTelemetry Goodwill is not tax-deductible. The majority of the Intangible assets balance relates to the Customer relationships asset, the fair value of which 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 the Customer relationships asset is based on an estimate of positive future cash flows associated with incremental profits related to excess earnings, discounted at a rate of 10.0%. The amortization period of the Customer relationships asset is 14 years. Receivables and other current assets reflect the best estimate at the acquisition date of the contractual cash flows expected to be received. Since the acquisition date through December 31, 2021, the contribution to sales to third parties and net income of BioTelemetry was EUR 387 million and EUR 32 million loss, respectively. The sales and net income would not differ materially from these amounts if the acquisition date had been on January 1, 2021. In 2021, acquisition-related costs of EUR 40 million were mainly recognized in General and administrative expenses. Capsule Technologies On March 4, 2021, Philips acquired all shares of Capsule Technologies, Inc. for an amount of EUR 520 million in cash. Capsule Technologies, headquartered in Andover, Massachusetts, is a leading provider of medical device integration and data technologies for hospitals and healthcare organizations. Capsule Technologies offers a leading vendor-neutral Medical Device Information Platform with a software-as-a-service business model. The acquisition of Capsule Technologies is a strong fit with Philips’ strategy to transform the delivery of care along the health continuum with integrated solutions. Capsule Technologies, forms part of the Connected Care segment. Goodwill recognized in the amount of EUR 325 million mainly represents revenue synergies expected from the combination of Philips’ industry-leading portfolio of real-time patient monitoring, therapeutic devices, telehealth, informatics and interoperability solutions and Capsule’s leading Medical Device Information Platform, connected through Philips’ secure vendor-neutral cloud-based HealthSuite digital platform. Capsule Technologies Goodwill is not tax-deductible. The majority of the Intangible assets balance relates to the Customer relationships asset, the fair value of which 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 the Customer relationships asset is based on an estimate of positive future cash flows associated with incremental profits related to excess earnings, discounted at a rate of 12.0%. The amortization period of the Customer relationships asset is 17 years. Receivables and other current assets reflect the best estimate at the acquisition date of the contractual cash flows expected to be received. Since the acquisition date through December 31, 2021, the contribution to sales to third parties and net income of Capsule was EUR 75 million and EUR 10 million loss, respectively. The sales and net income would not differ materially from these amounts if the acquisition date had been on January 1, 2021. In 2021, acquisition-related costs of EUR 11 million Divestments During 2021 Philips completed three divestments. On September 1, 2021, Philips sold its Domestic Appliances business to global investment firm Hillhouse Investment. For further details on this transaction, refer to note Discontinued operations and assets classified as held for sale In addition, the company completed the divestment of the PERS business on June 30, 2021 and completed the divestment of a small business of segment Other on September 17, 2021. As part of PERS divestment, Philips acquired shares in the buyer Connect America Investment Holdings, LLC with a value of EUR 40 million. The investment is classified as a financial asset measured at Fair Value through Other Comprehensive Income (FVTOCI) and is reported as part of Other non-current financial assets. The divestment resulted in a loss of EUR 75 million, which is included in Other Business Expenses in our Statement of Income. 2020 Acquisitions Philips completed three acquisitions in 2020. The acquisitions involved an aggregated net cash outflow of EUR 259 million and a contingent consideration of EUR 70 million at fair value. Including final purchase price adjustment processed in the course of 2021, the aggregated impact on Goodwill of EUR 168 million, Other intangible assets of EUR 184 million and Deferred tax liabilities generated from the Intangible assets of EUR 45 million. Intact Vascular, Inc. (Intact Vascular) was the most notable acquisition and is discussed below. The remaining two acquisitions involved an aggregated net cash outflow of EUR 29 million. Including final purchase price adjustments, the two acquisitions resulted in an increase in Goodwill of EUR 20 million. Other intangible assets and the related Deferred tax liabilities increased by EUR 15 million and EUR 2 million respectively. Intact Vascular On September 4, 2020, Philips acquired all shares of Intact Vascular, headquartered in Wayne, Pennsylvania. Intact Vascular is a developer of medical devices for minimally invasive peripheral vascular surgery. Philips acquired Intact Vascular to expand its portfolio of minimally invasive therapy options for Peripheral Artery Disease with the Tack Endovascular System, an implant that restores blood flow in small limb vessels, promotes healing and preserves limbs. The Company has purchased shares for an amount of EUR 241 million cash and a contingent consideration of EUR 70 million. As of the acquisition date, Intact Vascular forms part of the Image-guided therapy business portfolio of the Diagnosis & Treatment segment. In 2020, acquisition-related costs of EUR 2 million were recognized in General and administrative expenses. The condensed opening balance sheet of Intact Vascular was as follows: Intact Vascular Opening Balance sheet in millions of EUR at acquisition date Assets Intangible assets excluding goodwill 169 Deferred tax assets 24 Inventories 2 Receivables and other current assets 1 Cash 10 Total Assets 207 Liabilities Accounts payable and other payables (2) Deferred tax liabilities (42) Total Liabilities (44) Total identifiable net assets at fair value 163 Goodwill arising on acquisition 148 Total purchase on acquisition 311 Of which: Purchase consideration transferred (241) Provision for contingent consideration (70) Goodwill recognized in the amount of EUR 148 million mainly represents revenue synergies expected from the combination of Philips’ interventional imaging platform and diagnostic and therapeutic devices with Intact Vascular’s unique, specialized implantable device to optimize the treatment of patients with Peripheral Artery Disease (PAD). Intact Vascular Goodwill is not tax deductible. The provision for contingent consideration represents a Long-term provision of EUR 70 million, due in 2022 and 2023. The contingent consideration is based on a specified percentage of forecast revenue share, for which the maximum amount is unlimited. 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, refer to Fair value of financial assets and liabilities The majority of the Intangible assets balance relates to Technology, the fair value of which 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, discounted at a rate of 15.0%. The amortization period of Technology is 14 years. Intact Vascular is an early stage revenue acquisition. As of the acquisition date, Intact Vascular contribution to sales and net income was not material. The same applies to the combined entity for the reporting period as though the acquisition date had been as of the beginning of the reporting period. Divestments Philips did not complete any divestments in 2020. |
Interests in entities
Interests in entities | 12 Months Ended |
Dec. 31, 2021 | |
Interests in entities [Abstract] | |
Interests in entities [Text Block] | 6 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 are discussed below. Group companies Below is a list of material subsidiaries as of December 31, 2021 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 financial statements. Philips Group Interests in group companies in alphabetical order by country 2021 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips GmbH Germany Philips Medizin Systeme Böblingen GmbH Germany Philips Medical Systems Technologies Ltd. Israel Philips India Limited India Philips Japan, Ltd. Japan Philips Consumer Lifestyle B.V. Netherlands Philips Medical Systems Nederland B.V. Netherlands ATL International LLC United States AllParts Medical LLC United States Discus Holdings LLC United States Philips Healthcare Informatics Inc. United States Philips North America LLC United States Philips Oral Healthcare LLC United States Philips USA Export Corporation United States Spectranetics LLC United States Information related to non-controlling interests As of December 31, 2021, four consolidated subsidiaries are not wholly owned by Philips (December 31, 2020: six). In 2021, Sales to third parties and Net income for these subsidiaries in aggregate are EUR 522 million (December 31, 2020: EUR 468 million) and EUR 39 million (December 31, 2020: EUR 6 million) respectively. Investments in associates Philips has investments in a number of associates. During 2021, Philips purchased six investments in associates for a total amount of EUR 232 million. The most notable investment was a EUR 125 million investment in Candid Care Co. None of the investments are regarded as individually material from the point of view of the consolidated financial statements. Due to loss of significant influence in American Well Co. during 2021, Philips reclassified the investment to Other non-current financial asset at FVTOCI (Level 1). On reclassification, Philips recorded a gain of EUR 33 million in Other operating income. For more information about Other-non current financial assets at FVTOCI, refer to Other financial assets Fair value of financial assets and liabilities 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 is 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. As of December 31, 2021, Philips’ shareholding in Philips Medical Capital, LLC had a carrying value of EUR 27 million (December 31, 2020: EUR 26 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, 2021 | |
Income from operations [Abstract] | |
Income from operations [Text Block] | 7 For information related to Sales on a segment and geographical basis, refer to Information by segment and main country Philips Group Sales and costs by nature in millions of EUR 2019 2020 2021 Sales 17,147 17,313 17,156 Costs of materials used (4,197) (4,221) (4,142) Employee benefit expenses (6,097) (6,289) (6,246) Depreciation and amortization 1 (1,343) (1,462) (1,323) Shipping and handling (509) (554) (645) Advertising and promotion (741) (696) (752) Lease expense 2 (50) (34) (19) Other operational costs 3 4 (2,811) (2,741) (3,524) Other business income (expenses) (33) (51) 48 Income from operations 1,366 1,264 553 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2) Lease expense relates to short-term and low value leases. 3) 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 104 million government grants recognized in 2021 (2020: EUR 98 million 2019: EUR 87 million). The grants mainly relate to research and development activities and business development. 4) The significant increase in other operational costs 2021 versus 2020 is mainly due to the field action provision. For more details on the field action provision, please refer to Provisions Sales composition and disaggregation Philips Group Sales composition in millions of EUR 2019 2020 2021 Goods 12,476 12,491 11,981 Services 3,811 4,058 4,374 Royalties 381 301 383 Total sales from contracts with customers 16,668 16,851 16,738 Other sources 1 479 462 418 Sales 17,147 17,313 17,156 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 million (2020: EUR 325 million 2019: EUR 307 million) At December 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations from a sale of goods and services was EUR 14,305 million. The company expects to recognize approximately 50% 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 Sales per segment in millions of EUR 2021 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 5,407 3,177 8,583 52 8,635 Connected Care 3,135 1,090 4,227 366 4,593 Personal Health 3,403 6 3,410 3,410 Other 195 323 518 - 519 Philips Group 12,142 4,596 16,738 418 17,156 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per segment in millions of EUR 2020 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 5,132 2,998 8,129 46 8,175 Connected Care 4,208 943 5,152 417 5,568 Personal Health 3,170 4 3,173 3,173 Other 69 327 396 - 396 Philips Group 12,580 4,272 16,851 462 17,313 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 325 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per segment in millions of EUR 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 2,989 8,417 68 8,485 Connected Care 3,545 718 4,263 411 4,674 Personal Health 3,513 3 3,516 3,516 Other 168 303 472 - 472 Philips Group 12,655 4,013 16,668 479 17,147 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 2021 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 2,537 1,087 3,624 21 3,645 North America 4,427 2,268 6,695 86 6,781 Other mature geographies 1,000 386 1,386 309 1,694 Total mature geographies 7,964 3,741 11,705 415 12,120 Growth geographies 4,178 856 5,033 3 5,036 Sales 12,142 4,596 16,738 418 17,156 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 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 2020 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 2,747 936 3,682 19 3,702 North America 4,654 2,135 6,789 95 6,884 Other mature geographies 1,035 373 1,408 342 1,750 Total mature geographies 8,435 3,444 11,879 457 12,336 Growth geographies 4,145 828 4,972 5 4,977 Sales 12,580 4,272 16,851 462 17,313 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 325 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 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 2,359 931 3,290 38 3,328 North America 4,901 1,889 6,789 114 6,904 Other mature geographies 1,125 357 1,482 322 1,804 Total mature geographies 8,385 3,176 11,561 474 12,036 Growth geographies 4,270 837 5,107 5 5,112 Sales 12,655 4,013 16,668 479 17,147 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. 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 2019 2020 2021 Salaries and wages 1 5,080 5,204 5,129 Post-employment benefits costs 370 418 396 Other social security and similar charges: Required by law 537 556 529 Voluntary 111 111 192 Employee benefit expenses 6,097 6,289 6,246 1) Salaries and wages includes EUR 115 million (2020: EUR 119 million, 2019: EUR 103 million) of share-based compensation expenses. 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, refer to Post-employment benefits For details on the remuneration of the members of the Board of Management and the Supervisory Board, refer to Information on remuneration Employees The average number of employees by category is summarized as follows: Philips Group Employees in FTEs 2019 2020 2021 Production 31,222 35,482 38,618 Research & development 11,669 10,812 10,751 Other 22,924 22,474 22,543 Employees 65,815 68,769 71,912 3rd party workers 5,614 4,998 4,533 Philips Group 71,429 73,767 76,445 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 2019 2020 2021 Netherlands 11,252 11,146 11,142 Other countries 60,177 62,621 65,303 Philips Group 71,429 73,767 76,445 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 in millions of EUR 2019 2020 2021 Depreciation of property, plant and equipment 611 691 630 Amortization of software 66 76 88 Amortization of other intangible assets 344 377 322 Amortization of development costs 323 319 284 Depreciation and amortization 1,343 1,462 1,323 1) 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 following table shows the fees attributable to the fiscal years 2019, 2020 and 2021 for services rendered by the respective Group auditors. Philips Group Agreed fees in millions of EUR 2019 2020 2021 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 8.4 6.2 14.6 9.0 5.6 14.6 9.7 5.3 15.0 consolidated financial statements 8.4 3.4 11.8 9.0 2.9 11.9 9.7 2.7 12.4 statutory financial statements 2.8 2.8 2.7 2.7 2.6 2.6 Audit-related fees 2 0.5 0.3 0.8 2.2 0.5 2.7 0.6 0.2 0.8 divestment 1.5 0.2 1.7 sustainability assurance 0.4 0.4 0.5 0.5 0.5 0.5 other 0.1 0.3 0.4 0.2 0.3 0.5 0.1 0.2 0.3 Tax fees All other fees Fees 8.9 6.5 15.4 11.2 6.1 17.3 10.3 5.5 15.8 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 2019 2020 2021 Result on disposal of businesses: income 69 - - expense (1) - (75) Result on disposal of fixed assets: income 4 2 24 expense - - (5) Result on other remaining businesses: income 81 120 161 expense (88) (30) (43) Impairment of goodwill (97) (144) (15) Other business income (expense) (33) (51) 48 Total other business income 154 122 186 Total other business expense (186) (173) (138) The result on disposal of businesses was mainly due to divestment of non-strategic businesses. For more information refer to Acquisitions and divestments The result on disposal of fixed assets was mainly due to the 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. In 2021 revisions to EPD's forecast resulted in a EUR 67 million decrease in the fair value of the respective contingent consideration liability, comprised of EUR 41 million due to more severe short-term impacts of COVID-19 and the competitive environment and EUR 26 million due to delays in achievement of certain milestones, and is reflected in Other business income. In 2020 revisions to EPD's forecast due to delays in commercialization caused by the need to do more work on the maturity of the technology resulted in a EUR 101 million decrease in the fair value of the respective contingent consideration liability and is reflected in Other business income. For information on contingent consideration, refer to Provisions In 2021 a gain of EUR 33 million related to a minority participation was recognized in Other business income. For information refer to Interests in entities For information on impairment of goodwill, refer to Goodwill |
Financial income and expenses
Financial income and expenses | 12 Months Ended |
Dec. 31, 2021 | |
Financial income and expenses [Abstract] | |
Financial income and expenses [Text Block] | 8 Philips Group Financial income and expenses in millions of EUR 2019 2020 2021 Interest income 25 13 18 Interest income from loans and receivables 10 8 7 Interest income from cash and cash equivalents 15 5 11 Dividend income from financial assets 52 3 2 Net gains from disposal of financial assets 2 2 - Net change in fair value of financial assets at fair value through profit or loss 17 129 95 Other financial income 17 12 33 Financial income 114 158 149 Interest expense (196) (173) (159) Interest on debt and borrowings (167) (154) (147) Finance charges under lease contract (6) (6) (5) Interest expenses - pensions (22) (13) (8) Provision-related accretion and interest (23) (22) (14) Net foreign exchange losses (2) 4 - Other financial expenses (12) (11) (15) Financial expense (233) (202) (188) Financial income and expenses (119) (44) (39) In 2021, Financial income and expenses decreased by EUR 5 million year-on-year, mainly due to higher other financial income and decreased interest expenses, offset by lower fair value gain. Fair value gains of EUR 95 million are from investments in limited life funds (mainly Gilde Healthcare) and other investments recognized at fair value through profit or loss. Net interest expense in 2021 was EUR 19 million lower than in 2020, mainly due to lower interest expenses on borrowings and provisions, and interest expenses on pensions. The increase in other financial income is mainly due to higher interest income on tax. In 2020, Financial income and expenses decreased by EUR 75 million year-on-year, mainly due to fair value gains of EUR 133 million from investments in limited life funds (mainly Gilde Healthcare) and other investments recognized at fair value through profit or loss. The fair value gain from investments in limited life funds is caused by IPO’s by certain of the investments held by the limited life funds. Net interest expense in 2020 was EUR 11 million lower than in 2019, mainly due to lower interest expenses on borrowings and interest expenses on pensions. Dividend income from financial assets decreased by EUR 49 million versus 2019. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income taxes [Abstract] | |
Income taxes [Text Block] | 9 The income tax benefit of continuing operations amounted to EUR 103 million (2020: EUR 212 million tax expense, 2019: EUR 258 million tax expense). The components of income before taxes and income tax expense are as follows: Philips Group Income tax expense in millions of EUR 2019 2020 2021 Income before taxes of continuing operations 1 1,247 1,220 513 Current tax (expense) benefit (251) (380) (298) Deferred tax (expense) benefit (8) 167 401 Income tax expense of continuing operations (258) (212) 103 1) Income before tax excludes the result of investments in associates. Income tax expense of continuing operations excludes the tax expense of the discontinued operations of EUR 737 million (2020: EUR 81 million, 2019: EUR 70 million). The components of income tax expense of continuing operations are as follows: Philips Group Current income tax expense in millions of EUR 2019 2020 2021 Current year tax (expense) benefit (248) (390) (291) Prior year tax (expense) benefit (3) 10 (7) Current tax (expense) (251) (380) (298) Philips Group Deferred income tax expense In millions of EUR 2019 2020 2021 Changes to recognition of tax loss and credit carry forwards 56 6 129 Changes to recognition of temporary differences (32) 19 (1) Prior year tax (expense) benefit (9) (8) 20 Tax rate changes 4 12 10 Origination and reversal of temporary differences, tax losses and tax credits (27) 138 245 Deferred tax (expense) benefit (8) 167 401 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% (2020: 25.0% 2019: 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 % 2019 2020 2021 Weighted average statutory income tax rate in % 25.3 25.2 22.7 Recognition of previously unrecognized tax loss and credit carryforwards (4.9) (0.5) (26.9) Unrecognized tax loss and credit carryforwards 0.1 0.0 1.9 Changes to recognition of temporary differences 2.6 (1.6) 0.3 Non-taxable income and tax incentives (11.2) (12.9) (40.6) Non-deductible expenses 6.1 7.0 19.3 Withholding and other taxes 4.1 0.6 7.2 Tax rate changes (0.2) (1.0) (1.9) Prior year tax 0.7 (0.2) (2.4) Tax expense (benefit) due to change in uncertain tax treatments (2.0) 1.2 4.4 Others, net 0.2 (0.2) (4.0) Effective income tax rate 20.8 17.6 (20.0) The effective income tax rate is lower than the weighted average statutory income tax rate in 2021 mainly due to benefits from the recognition of deferred tax assets on loss carryforwards and recurring favorable tax incentives related to R&D investments and export activities, partially offset with various non-deductible items. The effective income tax rate for 2021 is further impacted by the lower income before tax in 2021, as compared to 2020 and 2019, whereas Withholding and other taxes had a lower impact on the 2020 effective income tax rate, due to a one-off benefit from a decrease in tax rate. The recognition of deferred tax assets on loss carryforwards is the result from an intra-group business transfer and is presented under Recognition of previously unrecognized tax loss and credit carryforwards. 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 2021 and 2020 respectively are presented in the following tables. The net deferred tax assets of EUR 2,134 million (2020: EUR 1,761 million) consist of deferred tax assets of EUR 2,216 million (2020:EUR 1,820 million) and deferred tax liabilities of EUR 83 million (2020: EUR 59 million). Of the total deferred tax assets of EUR 2,216 million at December 31, 2021 (2020: EUR 1,820 million), EUR 12 million (2020: EUR 35 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, 2021 the temporary differences associated with investments, including potential income tax consequences on dividends, for which no deferred tax liabilities are recognized, aggregate to EUR 298 million (2020: EUR 275 million). The increase in the deferred tax assets on intangible assets mainly comprises the recognition of deferred tax assets on temporary differences resulting from an intra-group business transfer. Philips Group Deferred tax assets and liabilities in millions of EUR Balance as of January 1, 2021 recognized in income statement other 1 Balance as of December 31, 2021 Assets Liabilities Intangible assets 240 535 (188) 587 716 (130) Property, plant and equipment 32 13 (16) 29 55 (26) Inventories 313 31 28 372 381 (9) Other assets 97 (30) 1 68 112 (43) Pensions and other employee benefits 245 (45) (21) 180 182 (2) Other liabilities 384 91 25 499 584 (84) Deferred tax assets on tax loss carryforwards 449 (194) 143 398 398 Set-off deferred tax positions (211) 211 Net deferred tax assets 1,761 401 (28) 2,134 2,216 (83) 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 Balance as of January 1, 2020 recognized in income statement other 1 Balance as of December 31, 2020 Assets Liabilities Intangible assets 132 147 (39) 240 379 (140) Property, plant and equipment 58 (22) (4) 32 65 (32) Inventories 252 77 (16) 313 317 (4) Other assets 56 37 4 97 135 (38) Pensions and other employee benefits 269 4 (27) 245 251 (6) Other liabilities 334 81 (30) 384 436 (52) Deferred tax assets on tax loss carryforwards 620 (133) (38) 449 449 Set-off deferred tax positions (212) 212 Net deferred tax assets 1,721 190 (151) 1,761 1,820 (59) 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, 2020 Unrecognized balance as of December 31, 2020 Total Balance as of December 31, 2021 Unrecognized balance as of December 31, 2021 Within 1 year 5 1 1,593 1,592 1 to 2 years 1,546 1,541 6 - 2 to 3 years 13 3 9 - 3 to 4 years 235 - 7 - 4 to 5 years 23 - 18 - Later 1,026 24 751 21 Unlimited 1,428 951 1,567 934 Total 4,276 2,520 3,951 2,547 At December 31, 2021, the amount of deductible temporary differences for which no deferred tax asset has been recognized in the balance sheet was EUR 33 million (2020: EUR 33 million). Tax risks Philips is exposed to tax risks and uncertainty over tax treatments. For particular tax treatments that are not expected to be accepted by tax authorities, Philips either recognizes a liability or reflects the uncertainty in the recognition and measurement of its current and deferred tax assets and tax attributes. For the measurement of the uncertainty, Philips uses the most likely amount or the expected value of the tax treatment. The expected liabilities resulting from the uncertain tax treatments are included in non-current tax liabilities (2021: EUR 544 million, 2020: EUR 291 million, increase due to lower tax losses or similar tax carryforwards that can be used if uncertain tax treatments were settled for the presumed amount at balance sheet date). The positions include, among others, the following: 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, 2021 | |
Earnings per share [Abstract] | |
Earnings per share [Text Block] | 10 Philips Group Earnings per share in millions of EUR unless otherwise stated 1 2019 2020 2021 Income from continuing operations 990 999 612 Income (loss) attributable to non-controlling interest, from continuing operations 5 8 4 Income from continuing operations attributable to shareholders 985 991 608 Income from Discontinued operations 183 196 2,711 Income from Discontinued operations attributable to shareholders 183 196 2,711 Net income attributable to shareholders 1,167 1,187 3,319 Weighted average number of common shares outstanding (after deduction of treasury shares) during the year 921,062,109 907,721,150 904,271,675 Plus incremental shares from assumed conversions of: Options 1,288,001 757,622 387,125 Performance shares 5,896,049 5,561,501 2,548,891 Restricted share rights 2,524,606 2,584,728 2,376,736 Forward contracts 70,329 Dilutive potential common shares 9,708,656 8,903,851 5,383,080 Diluted weighted average number of shares (after deduction of treasury shares) during the year 930,770,765 916,625,001 909,654,754 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 1.07 1.09 0.67 Income from Discontinued operations attributable to shareholders 0.20 0.22 3.00 Net income attributable to shareholders 1.27 1.31 3.67 Diluted earnings per common share in EUR 2 Income from continuing operations attributable to shareholders 1.06 1.08 0.67 Income from Discontinued operations attributable to shareholders 0.20 0.21 2.98 Net income attributable to shareholders 1.25 1.29 3.65 Dividend distributed per common share in euros 0.85 0.85 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, 2021 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment [Text Block] | 11 Philips Group Property, plant and equipment in millions of EUR 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 January 1, 2021 Cost 1,076 1,147 1,506 199 1,572 213 261 1 4,415 1,560 Accumulated depreciation (539) (310) (1,028) (144) (1,185) (86) (2,752) (540) Book value 537 837 478 55 387 126 261 1 1,663 1,020 Change in book value: Capital expenditures 9 150 62 21 77 44 261 409 215 Assets available for use 72 2 110 117 3 (305) (5) 5 Acquisitions - 43 9 43 53 43 Depreciation (53) (157) (144) (32) (158) (63) (355) (252) Impairments (1) 1 (6) (5) (11) - - (18) (4) Transfer (to) from AHFS (87) (7) (16) (46) (1) (20) (170) (8) Reclassifications 6 - 2 (10) 2 1 (1) - 1 Translations differences and other 23 44 14 (2) 16 (4) 10 - 65 39 Total changes (31) 77 33 (18) 29 (20) (53) (1) (22) 38 Balance as of December 31, 2021 Cost 1,097 1,332 1,585 176 1,382 216 208 4,273 1,724 Accumulated depreciation (591) (418) (1,074) (139) (967) (109) (2,632) (666) Book value 506 914 511 37 415 107 208 1,641 1,058 Philips Group Property, plant and equipment in millions of EUR 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 January 1, 2020 Cost 876 1,355 1,531 251 1,549 232 323 1 4,279 1,839 Accumulated depreciation (395) (326) (1,055) (188) (1,184) (105) (2,634) (618) Book value 481 1,029 476 63 365 127 323 1 1,645 1,221 Change in book value: Capital expenditures 28 80 60 53 84 97 399 2 571 231 Assets available for use 117 2 162 160 3 (441) (2) (2) 2 Depreciation (47) (161) (167) (55) (180) (73) (394) (289) Impairments (3) (5) (13) (4) (16) - - (32) (10) Reclassifications (64) (7) (7) (1) (21) (3) (11) (91) Translations differences and other (39) (43) (33) 5 (25) (6) (17) - (114) (44) Total changes 56 (192) 2 (8) 22 (1) (62) 17 (201) Balance as of December 31, 2020 Cost 1,076 1,147 1,506 199 1,572 213 261 1 4,415 1,560 Accumulated depreciation (539) (310) (1,028) (144) (1,185) (86) (2,752) (540) Book value 537 837 478 55 387 126 261 1 1,663 1,020 Land with a book value of EUR 39 million (2020: EUR 47 million) is not depreciated. 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, 2021 | |
Goodwill [Abstract] | |
Goodwill [Text Block] | 12 The changes in 2020 and 2021 were as follows: Philips Group Goodwill in millions EUR 2020 2021 Balance as of January 1: Cost 10,182 9,094 Impairments (1,528) (1,080) Book value 8,654 8,014 Changes in book value: Acquisitions 189 2,095 Impairments (144) (15) Divestments and transfers to assets classified as held for sale (12) (189) Translation differences and other (673) 732 Balance as of December 31: Cost 9,094 11,793 Impairments (1,080) (1,156) Book value 8,014 10,637 In 2021, goodwill increased by EUR 2,623 million, primarily as a result of goodwill recognized on new acquisitions of BioTelemetry (EUR 1,776 million) and Capsule Technologies of (EUR 325 million), and translation differences of EUR 732 million. This was partially offset by EUR 15 million of impairment losses primarily related to the PERS CGU and EUR 189 million divested in the period, mostly relating to the Domestic Appliances business. For details on the impact of new acquisitions and the divestment of the Domestic Appliances business, refer to Acquisitions and divestments In 2020, goodwill decreased by EUR 640 million, mainly due to translation differences which impacted goodwill denominated in USD and impairments totaling EUR 144 million related to Population Health Management (PHM). The decrease was partially offset by goodwill increases from the acquisition of Intact Vascular for an amount of EUR 155 million and other acquisitions as well as changes in the provisional opening balance sheet position for certain 2019 acquisitions (refer to Acquisitions and divestments Goodwill reallocations in 2021 and 2020 In 2021 there was a change to the CGU structure following an internal reorganization (effective Q1 2021). This resulted in a goodwill reallocation across certain CGUs, none of which had a significant impact on headroom or led to goodwill impairments. These reallocations were performed using a relative value approach. In Q4 2020, the PHM CGU was split, resulting in a separate CGU for the Personal Emergency Response Services (PERS) and Senior Living business (previously named the Aging and Caregiving (ACG) business) in anticipation of its future divestment. The remaining PHM goodwill was allocated to the PERS CGU and remaining PHM CGU based on relative fair value. The goodwill allocated to the remaining PHM CGU was immaterial. An additional CGU change in 2020 resulted in a goodwill reallocation across certain CGUs, none of which had a significant impact on headroom or led to goodwill impairments. In addition in 2021 and 2020, there were also certain CGU movements and/or combinations within businesses that did not result in a reallocation of goodwill, but resulted in changes to the business structure. This did not have a significant impact on headroom or lead to goodwill impairments. Impairments During 2021 a total impairment of EUR 15 million was recognized. The majority of this related to the PERS CGU which was classified as an asset held for sale as of Q4 2020. At June 30, 2021 the PERS CGU was divested. Prior to the divestment a goodwill impairment of EUR 13 million was recorded to reflect a decrease in the recoverable amount of the CGU, this reduced the goodwill balance of the CGU to zero Acquisitions and divestments In the fourth quarter of 2020, the PHM CGU was split, resulting in a separate CGU for the PERS business in anticipation of its future divestment. The impairment test indicated that the pre-split PHM’s carrying balance of EUR 303 million exceeded the recoverable amount of EUR 195 million, resulting in a EUR 108 million goodwill impairment charge. After the PHM impairment, further described below, remaining goodwill in the amount of EUR 63 million was allocated to the PERS CGU and remaining PHM CGU based on their relative fair value. Upon reallocation, standalone impairment tests were completed for PERS and the remaining PHM business. This second impairment test indicated that the PERS carrying balance of EUR 186 million exceeded the recoverable amount of EUR 150 million resulting in a EUR 36 million impairment charge. In total, EUR 144 million of impairment charges were recorded within the Connected Care segment, 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 business level), which represent the lowest level at which the goodwill is monitored internally for management purposes. Goodwill allocated to the cash generating units Ambulatory Monitoring & Diagnostics, Image-Guided Therapy and Sleep & Respiratory Care is considered to be significant in comparison to the total book value of goodwill for the Group at December 31, 2021. The amounts associated as of December 31, 2021 are presented in the following table: Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2020 2021 Ambulatory Monitoring & Diagnostics 1 1,897 Hospital Patient Monitoring 2 1,246 1,663 Image-Guided Therapy 2,610 2,802 Sleep & Respiratory Care 1,915 2,031 Other (units carrying a non-significant goodwill balance) 2,244 2,245 Book value 8,014 10,637 1) Includes provisional goodwill related to the acquisition of BioTelemetry, see Acquisitions and divestments 2) Previously named Monitoring & Analytics. Includes provisional goodwill related to the acquisition of Capsule Technologies, see Acquisitions and divestments Unless otherwise noted, 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. The fair value less cost to dispose methodology was used as a basis for the recoverable amount in the annual impairment test when greater than the value-in-use test. Refer to the ‘key assumptions- general’ section for further detail on the methodology. Key assumptions - general Key assumptions used in the value-in-use impairment tests for the units were sales growth rates, EBITA% *) The sales growth rates and EBITA * * In 2021 the impact of COVID-19 has gradually reduced, however there continues to be uncertainty and volatility related to the impact of the pandemic, including global supply chain challenges. Where relevant, and to the extent possible, the estimated impact of the COVID-19 pandemic, supply chain challenges and resulting uncertainties have been reflected in the forecasts used for the VIU calculations. As was the case in 2020, the company uses scenarios in the business forecasting process and the most reasonable and supportable assumptions which represent management’s best estimate are used as the basis for the value-in-use tests. These scenarios take into account the expected impact of COVID-19, amongst other factors. In 2020 the forecasted sales growth rates were impacted by the COVID-19 consequences and uncertainties. In general these uncertainties have reduced throughout 2021, meaning that the current year assumptions are impacted to a lesser extent. The rates used for discounting the projected cash flows in goodwill impairment testing is based on a business weighted cost of capital (WACC), which in turn is based on business-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 business. As such, the beta factor is determined based on a selection of peer companies, which can differ per business. Different businesses have different geographical footprints, resulting in business-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 In 2021 cash flow projections of Ambulatory Monitoring & Diagnostics, Image-Guided Therapy and Sleep & Respiratory Care are based on the key assumptions included in the following table, which were used in the annual impairment test performed in the fourth quarter. Philips Group Key assumptions 2021 compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Ambulatory Monitoring & Diagnostics 24.5% 11.9% 2.5% 7.3% Hospital Patient Monitoring 4 5.4% 3.4% 2.5% 7.8% Image-Guided Therapy 10.2% 5.4% 2.5% 8.9% Sleep & Respiratory Care 9.2% 5.0% 2.5% 9.2% 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 4) Previously named Monitoring & Analytics. The assumptions used for the 2020 cash flow projections were as follows: Philips Group Key assumptions 2020 compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Hospital Patient Monitoring 4 (0.3)% 3.3% 2.5% 9.4% Image-Guided Therapy 8.6% 4.9% 2.5% 9.0% Sleep & Respiratory Care (1.2)% 4.4% 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 4) Previously named Monitoring & Analytics. 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. The results of the annual impairment tests of Sleep & Respiratory Care indicate that the value in use of the CGUs is sensitive to the assumptions set out above. This means that there is a higher risk that deviations in the mentioned key assumptions could cause the recoverable amount to fall below the level of its carrying value. This is due to the uncertainty associated with the initiated voluntary recall notification in the United States and field safety notice outside the United States for certain sleep and respiratory care products, and the associated legal matters. For further details refer to Provisions Contingent assets and liabilities The results of the annual impairment test of Ambulatory Monitoring & Diagnostics, Hospital Patient Monitoring and Image-Guided Therapy 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 For the 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 Reconciliation of non-IFRS information |
Intangible assets excluding goo
Intangible assets excluding goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets excluding goodwill [Abstract] | |
Intangible assets excluding goodwill [Text Block] | 13 Philips Group Intangible assets excluding goodwill in millions of EUR brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2021 Cost 556 2,036 2,434 2,519 480 723 135 8,883 Amortization/ impairments (437) (1,385) (1,565) (1,897) (83) (427) (91) (5,886) Book value 120 651 869 622 398 295 44 2,997 Changes in book value: Additions 9 1 261 117 2 392 Assets available for use 247 (247) - - - Acquisitions 62 544 235 - - 841 Amortization (21) (126) (114) (219) - (85) (3) (568) Impairments (3) (57) (51) (15) - - (126) Transfers to assets classified as held for sale (10) (3) (11) (17) (6) (34) (82) Translation differences and other 12 80 69 17 23 (7) 1 195 Total changes 42 492 131 (22) 17 (8) 1 653 Balance as of December 31, 2021 Cost 644 2,590 2,605 2,701 505 754 146 9,944 Amortization/ impairments (481) (1,447) (1,605) (2,102) (91) (467) (101) (6,294) Book Value 162 1,143 1,000 599 414 287 44 3,650 Philips Group Intangible assets excluding goodwill in millions of EUR brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2020 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 Changes in book value: Additions 1 12 - 305 127 2 449 Assets available for use 373 (374) - - Acquisitions 8 1 175 - - 185 Amortization (26) (121) (103) (221) - (84) (4) (560) Impairments - (1) (118) (62) (44) (2) (8) (235) Transfers to assets classified as held for sale (33) (55) (1) (8) (2) (3) (102) Translation differences and other (13) (64) (58) (53) (10) - (6) (204) Total changes (65) (239) (92) 30 (125) 38 (15) (468) Balance as of December 31, 2020 Cost 556 2,036 2,434 2,519 480 723 135 8,883 Amortization/ impairments (437) (1,385) (1,565) (1,897) (83) (427) (91) (5,886) Book Value 120 651 869 622 398 295 44 2,997 Acquisitions in 2021 involved Intangible assets of EUR 841 million in aggregate (2020: EUR 185 million). For more information, refer to Acquisitions and divestments Impairments in 2021 were EUR 126 million (2020: EUR 235 million) and mainly relate to technology (EUR 57 million) and product development (EUR 51 million). The most notable impairment in 2021 is in the Diagnosis & Treatment segment, for technology assets in Image Guided Therapy-Systems (IGT Systems) of EUR 55 million. This impairment charge is based on a trigger-based test on the CGU EPD, a business category and an innovator in image-guided procedures for cardiac arrhythmias (heart rhythm disorders). The impairment charge is a result of more severe short-term impacts of COVID-19 and the competitive environment. The basis of the recoverable amount used in this test is the value in use, and an after-tax discount rate of 6.5% is applied. After the impairment charge the recoverable amount of the related intangible assets is EUR 29 million. Other notable impairments in 2021 were in the Connected Care segment, for product development in the Sleep & Respiratory Care (S&RC) business of EUR 35 million. The impairment in the S&RC business is due to delays in commercialization as a result of product improvements needed in combination with resource constraints as a result of the Respironics voluntary recall notification. In 2021 the impact of COVID-19 has gradually reduced, however there continues to be uncertainty and volatility related to the impact of the pandemic, including global supply chain challenges. Where relevant, and to the extent possible, the estimated impact of the COVID-19 pandemic, supply chain challenges and resulting uncertainties have been taken into account when assessing the valuation of intangible assets excluding goodwill. As was the case in 2020, the company uses scenarios in the business forecasting process and the most reasonable and supportable assumptions which represent management’s best estimate are used as the basis for the value-in-use tests. These scenarios take into account the expected impact of COVID-19, amongst other factors. The amortization of intangible assets is specified in 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 3-10 The weighted average expected remaining life of brand names, customer relationships, technology and other intangible assets is 9.6 years as of December 31, 2021 (2020: 9.1 years). The most notable intangible assets as of December 31, 2021 relate to the BioTelemetry customer relationships and technology with a carrying value of EUR 391 million and EUR 162 million and a remaining amortization period of 15 years and 11 years, respectively and Spectranetics customer relationships and technology with a carrying value of EUR 292 million and EUR 210 million and a remaining amortization period of 16 years and 11 years, respectively. The most notable intangible assets as of December 31, 2020 relate to the Spectranetics customer relationships and technology with a carrying value of EUR 287 million and EUR 212 million and a remaining amortization period of 17 years and 12 years, respectively. |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2021 | |
Other financial assets [Abstract] | |
Other financial assets [Text Block] | 14 Other current financial assets In 2021, Other current financial assets increased from EUR 0 million to EUR 2 million. In 2020, Other current financial assets decreased from EUR 1 million to EUR 0 million. Other non-current financial assets The company’s investments in Other non-current financial assets mainly consist of investments in common shares of companies in various industries and investments in limited life funds. The changes during 2021 and 2020 were as follows: Philips Group Other non-current financial assets in millions of EUR 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, 2021 248 146 37 430 Changes: Acquisitions/additions 54 59 10 123 Sales/redemptions/reductions (122) 0 (3) (126) Value adjustment through OCI - (43) - (43) Value adjustment through P&L 95 - - 95 Translation differences and other 8 19 2 29 Reclassifications (1) 120 2 122 Balance as of December 31, 2021 283 300 47 630 Philips Group Other non-current financial assets in millions of EUR 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, 2020 136 72 40 248 Changes: Acquisitions/additions 44 82 4 131 Sales/redemptions/reductions (59) (3) (2) (65) Value adjustment through OCI - 3 - 3 Value adjustment through P&L 133 - - 133 Translation differences and other (6) (5) (6) (17) Reclassifications - (3) - (3) Balance as of December 31, 2020 248 146 37 430 At December 31, 2021, equity investments of EUR 273 million (2020: EUR 119 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 2021, reclassifications refer to previous investments in associates that were reclassified to Other non-current financial assets at FVTOCI following the loss of significant influence. The main movement in Other non-current financial assets at FVTPL is related to the value adjustments through P&L of EUR 95 million |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2021 | |
Other assets [Abstract] | |
Other assets [Text Block] | 15 Other non-current assets Other non-current assets in 2021 were EUR 129 million (2020: EUR 66 million). These mainly related to prepaid expenses. Other current assets Other current assets of EUR 493 million (2020: EUR 424 million) included contract assets EUR 290 million (2020: EUR 229 million), EUR 31 million (2020: EUR 26 million) accrued income and EUR 172 million (2020: EUR 169 million) for prepaid expense mainly related to Diagnosis & Treatment businesses and Connected Care businesses. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Inventories [Text Block] | 16 Inventories are summarized as follows: Philips Group Inventories in millions of EUR 2020 2021 Raw materials and supplies 992 1,143 Work in process 537 646 Finished goods 1,464 1,660 Inventories 2,993 3,450 The write-down of inventories to net realizable value was EUR 177 million in 2021 (2020: EUR 180 million). The write-down is included in cost of sales. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Receivables [Text Block] | 17 Non-current receivables Non-current receivables are associated mainly with customer financing in the Diagnosis & Treatment businesses amounting to EUR 44 million (2020: EUR 29 million), for Signify indemnification amounting to EUR 46 million (2020: EUR 55 million), advance income tax payments amounting to EUR 78 million for which Philips expects to get a refund (2020: EUR 78 million) and insurance receivables in Other in the US amounting to EUR 37 million (2020: EUR 38 million). Current receivables Current receivables of EUR 3,787 million (2020: EUR 4,156 million) at December 31, 2021 included trade accounts receivable (net of allowance) of EUR 3,559 million (2020: EUR 3,928 million), accounts receivable other of EUR 188 million (2020: EUR 191 million) and accounts receivable from investments in associates of EUR 40 million (2020: EUR 37 million). The accounts receivable, net, per segment are as follows: Philips Group Accounts receivables-net in millions of EUR 2020 2021 Diagnosis & Treatment 1,653 1,759 Connected Care 1,124 980 Personal Health 1,017 575 Other 133 245 Accounts receivable-net 3,928 3,559 The aging analysis of accounts receivable, net, is set out below: Philips Group Aging analysis in millions of EUR 2020 2021 current 3,413 3,075 overdue 1-30 days 189 160 overdue 31-180 days 224 245 overdue > 180 days 102 79 Accounts receivable-net 3,928 3,559 The above net accounts receivable represent current and overdue but not fully impaired receivables. The changes in the allowance for doubtful accounts receivable are as follows: Philips Group Allowance for accounts receivable in millions of EUR 2020 2021 Balance as of January 1 211 195 Additions charged to expense 19 4 Deductions from allowance 1 (17) (17) Transfer to assets held for sale (1) (8) Other movements (16) 16 Balance as of December 31 195 190 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, 2021 are allowances for individually impaired receivables of EUR 188 million (2020: EUR 186 million) . |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity [Text Block] | 18 Common shares As of December 31, 2021, authorized common shares consist of 2 billion shares (December 31, 2020: 2 billion; December 31, 2019: 2 billion) and the issued and fully paid share capital consists of 883,898,696 common shares, each share having a par value of EUR 0.20 (December 31, 2020: 911,053,001; December 31, 2019: 896,733,721). Preference shares As a means to protect the Company against (an attempt at) an unsolicited takeover or other attempt to exert (de facto) control of the company, the ‘Stichting Preferente Aandelen Philips’ has been granted the right to acquire preference shares in the Company. As of December 31, 2021, no such right has been exercised and no preference shares have been issued. Authorized preference shares consist of 2 billion shares as of December 31, 2021 (December 31, 2020: 2 billion; December 31, 2019: 2 billion). Options, restricted and performance shares Under its share-based compensation plans, the Company granted stock options on its common shares up to 2013 and other rights to receive common shares in the future (refer to Share-based compensation Treasury shares In connection with the Company’s share repurchase programs, 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 delivered by the Company upon exercise of options (granted to employees up to 2013), the difference between the cost and the cash received is recorded in retained earnings. When treasury shares are delivered by the Company upon vesting of restricted shares or performance shares (granted under the Company’s share-based compensation plans), the difference between the market price of the shares and the cost is recorded in retained earnings, and 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 2019 2020 2021 Balance as of January 1 914,184,087 890,973,790 905,128,293 Dividend distributed 9,079,538 18,080,198 6,345,968 Purchase of treasury shares (40,390,495) (8,669,622) (45,486,392) Delivery of treasury shares 8,100,660 4,695,170 4,194,577 Issuance of new shares 48,757 Balance as of December 31 890,973,790 905,128,293 870,182,445 The following transactions took place resulting from former and current share-based remuneration plans: Philips Group Employee option and share plan transactions 2019 2020 2021 Shares acquired 5,497,675 5,351,411 3,996,576 Average market price EUR 34.25 EUR 33.81 EUR 36.15 Amount paid EUR 188 million EUR 181 million EUR 144 million Shares delivered 8,100,660 4,695,170 4,194,577 Average price (FIFO) EUR 32.87 EUR 34.35 EUR 34.14 Cost of delivered shares EUR 266 million EUR 161 million EUR 143 million Total shares in treasury at year-end 5,268,467 5,924,708 5,726,708 Total cost EUR 180 million EUR 199 million EUR 201 million The following transactions took place for capital reduction purposes: Philips Group Share capital transactions 2019 2020 2021 Shares acquired 34,892,820 3,318,211 41,489,816 Average market price EUR 34.29 EUR 39.21 EUR 36.22 Amount paid EUR 1,196 million EUR 130 million EUR 1,503 million Cancellation of treasury shares (shares) 38,541,356 3,809,675 33,500,000 Cancellation of treasury shares (EUR) EUR 1,316 million EUR 152 million EUR 1,216 million Total shares in treasury at year-end 491,464 7,989,816 Total cost EUR 22 million EUR 287 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 1,636 million. A cash inflow of EUR 23 million from treasury shares mainly includes settlements of share-based remuneration plans. Share repurchase methods for share-based remuneration plans and capital reduction purposes Philips uses different methods to repurchase shares in its own capital: (i) share buyback repurchases in the open market via an intermediary; (ii) repurchase of shares via forward contracts for future delivery of shares; and (iii) the unwinding of call options on own shares. During 2021, Philips used methods (i) and (ii) to repurchase shares for capital reduction purposes and methods (ii) and (iii) to repurchase shares for share-based compensation plans. Forward share repurchase plans / contracts Forward contracts to repurchase shares for share-based compensation plans On May 19, 2021, Royal Philips announced that it will repurchase up to 2 million shares to cover certain of its obligations arising from its long-term incentive and employee stock purchase plans. Under this program, Philips entered into one forward contract for an amount of EUR 90 million to acquire 2 million shares with settlement dates varying between October 2023 and November 2023 and a weighted average forward price of EUR 44.85. On January 29, 2020, Philips announced 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. Under this program, Philips entered into three forward contracts for an amount of EUR 174 million to acquire 5 million shares with settlement dates varying between October 2021 and November 2022 and a weighted average forward price of EUR 34.85. As of December 31, 2021, a total of 1.5 million shares under this program were acquired (all were settled in the fourth quarter of 2021). This resulted in EUR 61 million increase in retained earnings against treasury shares. On October 22, 2018, Philips announced and started a share repurchase program for an amount of up to EUR 174 million to cover its long-term incentive and employee stock purchase plans, after which it repurchased shares via an intermediary to allow for buybacks in the open market during both open and closed periods. On November 12, 2018, Philips announced to extend this program and entered into three forward contracts for an amount of EUR 319 million to repurchase 10 million shares with settlement dates varying between October 2019 and November 2021 and a weighted average forward price of EUR 31.89. As of December 31, 2021, a total of 10 million shares under this program had been acquired (4 million shares in the fourth quarter of 2019, 4 million shares in the fourth quarter of 2020 and 2 million shares in the fourth quarter of 2021). This resulted in EUR 319 million increase in retained earnings against treasury shares (EUR 130 million, EUR 126 million and EUR 62 million pertaining to 2019, 2020 and 2021, respectively). As of December 31, 2021, the remaining forward contracts to cover obligations under share-based remuneration plans related to 5.5 million shares and amounted to EUR 203 million. Forward contracts to repurchase shares for capital reduction purposes On July 26, 2021, Philips announced a share buyback program for share cancellation purposes for an amount of up to EUR 1.5 billion. Consequently, in the third quarter of 2021 Philips entered into three forward contracts for an amount of EUR 731 million to acquire 20 million shares with settlement dates in 2022, 2023 and 2024 and a weighted average forward price of 37.36. Philips executed the remainder of the program through open market purchases by an intermediary in the fourth quarter of 2021 (acquiring 21 million shares) and January 2022 (acquiring 0.8 million shares). This resulted in a EUR 781 million On January 29, 2019, Philips announced a share buyback program for an amount of up to EUR 1.5 billion. Philips started the program in the first quarter of 2019. On March 23, 2020, Philips announced that 50.3% of the program had been completed through repurchases by an intermediary to allow for purchases in the open market during both open and closed periods, and that the remainder of the program would be executed through one or more individual forward transactions. Consequently, in the first half of 2020 Philips entered into four forward contracts for an amount of EUR 745 million to acquire 20 million shares with settlement dates varying between June 2021 and December 2021 and a weighted average forward price of EUR 36.40. As of December 31, 2021, all shares under this program were acquired (of which 2.5 million shares in the second quarter of 2021, 2.5 million shares in the third quarter of 2021 and 15.5 million shares in the fourth quarter of 2021). This resulted in EUR 745 million increase in retained earnings against treasury shares. Share call options In 2016 Philips purchased EUR-denominated and USD-denominated call options on its own shares to hedge options granted to employees up to 2013. In 2021, the company unwound 374,826 EUR-denominated and 121,750 USD-denominated call options against the transfer of the same number of its own shares (496,576 shares) and an additional EUR 9 million cash payment to the buyer of the call options. As of December 31, 2021, the remaining EUR-denominated and USD-denominated call options related to 295,630 and 152,565 shares, respectively. Shares cancellation In December 2021 Philips completed the cancellation of 33.5 million of its common shares (with a cost price of EUR 1,228 million). The cancelled shares were acquired as part of the Philips’ EUR 1.5 billion share repurchase programs announced on January 29, 2019 and EUR 1.5 billion share repurchase programs announced on July 26, 2021, respectively. Dividend distribution 2021 In June 2021, Philips distributed a dividend of EUR 0.85 per common share, representing a total value of EUR 773 million (including costs). Shareholders could elect for a cash dividend or a share dividend. Approximately 38%of the shareholders elected for a share dividend, resulting in the issuance of 6,345,968 new common shares. The settlement of the cash dividend involved an amount of EUR 482 million (including costs). A proposal will be submitted to the 2022 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 shareholder, against the net income of the company for 2021. 2020 In July 2020, Philips distributed a dividend of EUR 0.85 per common share, representing a total value of EUR 758 million (including costs). The dividend was distributed in the form of shares only resulting in the issuance of 18,080,198 new common shares. 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). Limitations in the distribution of shareholders’ equity As of December 31, 2021, pursuant to Dutch law, certain limitations exist relating to the distribution of shareholders’ equity of EUR 1,947 million. Such limitations relate to common shares of EUR 177 million, as well as to legal reserves required by Dutch law included under retained earnings of EUR 654 million and unrealized currency translation differences of EUR 1,117 million. The unrealized loss related to cash flow hedges of EUR 25 million and unrealized loss related to fair value through OCI financial assets of EUR 344 million qualify as revaluation reserves and reduce the distributable amount due to the fact that these reserves are negative. The legal reserves required by Dutch law of EUR 654 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 of December 31, 2020, these limitations in distributable amounts were EUR 831 million and related to common shares of EUR 182 million, as well as to legal reserves required by Dutch law included under retained earnings of EUR 626 million and unrealized currency translation differences of EUR 58 million. The unrealized losses related to fair value through OCI financial assets of EUR 305 million and unrealized gain related to cash flow hedges of EUR 23 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 2019 2020 2021 Long-term debt 4,939 5,705 6,473 Short-term debt 508 1,229 506 Total debt 5,447 6,934 6,980 Cash and cash equivalents 1,425 3,226 2,303 Net debt 1 4,022 3,708 4,676 Shareholders' equity 12,597 11,870 14,438 Non-controlling interests 28 31 36 Group equity 12,625 11,901 14,475 Net debt and group equity ratio 1 24:76 24:76 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 2019 2020 2021 Net income 1,173 1,195 3,323 Discontinued operations, net of income taxes (183) (196) (2,711) Income from continuing operations 990 999 612 Continuing operations non-controlling interests (5) (8) (4) Income from continuing operations attributable to shareholders 2 985 991 608 Adjustments for: Amortization and impairment of acquired intangible assets 344 377 322 Impairment of goodwill 97 144 15 Restructuring costs and acquisition-related charges 310 195 95 Other items 153 299 1,069 Net finance income/expenses 13 (125) (84) Tax impact of adjusted items and tax only adjusting items (280) (285) (527) Adjusted Income from continuing operations attributable to shareholders 1 2 1,622 1,594 1,497 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, 2021 | |
Debt [Abstract] | |
Debt [Text Block] | 19 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 commercial paper of EUR 300 million in May 2021 and EUR 150 million in July 2021, that was repaid in September 2021. The facility does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. As of December 31, 2021, Philips did not have any loans outstanding under either facility. As per 9 March 2020, Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the issuance of notes for a total amount up to EUR 10 billion. In 2021 Philips did not issue any new notes under the program. 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, 2019 and 2020 (due 2023, 2024, 2025, 2026, 2028 and 2030) 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. Philips’ outstanding long-term debt do not contain financial covenants. In February 2021, Philips entered into two new bilateral loans amounting to a total of EUR 500 million (EUR 250 million each) with a tenor of up to one year, that were repaid in September 2021. In 2021, Philips also entered into a total amount of EUR 731 million of forward contracts relating to the EUR 1.5 billion share buyback program announced on July 26, 2021, with maturity dates in 2022, 2023 and 2024. A total amount of EUR 745 million of forward contracts matured in 2021, which completed the settlement of the EUR 1.5 billion share buyback program announced on January 29, 2019. In addition, Philips entered into a total amount of EUR 90 million of forward contracts in 2021 relating to the long-term incentive and employee stock purchase plans announced on May 19, 2021, with maturity dates in 2023, and a total amount of EUR 123 million of forward contracts matured in 2021 relating to the company's long-term incentive and employee stock purchase plans announced on October 22, 2018 and January 29, 2020. In March 2020, Philips issued a EUR 500 million fixed-rate sustainability innovation bond due in 2025 with a coupon rate of 1.375%, and a EUR 500 million fixed-rate bond due in 2030 with a coupon rate of 2.000% under the EMTN program. In 2020, Philips entered into a total amount of EUR 745 million of forward contracts to complete the remainder of the EUR 1.5 billion share buyback program announced on January 29, 2019, with maturity dates in 2021. In addition, Philips entered into a total amount of EUR 174 million of forward contracts in 2020 related to the long-term incentive and employee stock purchase plans announced on January 29, 2020, and a total amount of EUR 126 million of forward contracts matured relating to the company's long-term incentive and employee stock purchase plans announced on October 22, 2018. Long-term debt The following tables present information about the long-term debt outstanding, its maturity and average interest rates in 2021 and 2020. Philips Group Long-term debt in millions of EUR unless otherwise stated amount outstanding in 2021 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 1,313 1,313 255 1,058 15.1 6.3% EUR bonds 3,233 3,233 2,242 991 4.4 1.0% Forward contracts 934 196 738 738 1.6 Lease liability 1,220 257 963 580 383 4.2 2.1% Bank borrowings 203 1 202 202 3.2 0.1% Other long-term debt 30 5 26 18 8 8.6 3.5% Long-term debt 6,933 459 6,473 4,034 2,439 6.0 2.1% Philips Group Long-term debt in millions of EUR unless otherwise stated amount outstanding in 2020 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 1,210 1,210 122 1,088 16.1 6.3% EUR bonds 3,229 3,229 1,494 1,735 5.4 1.0% Forward contracts 982 869 113 113 0.9 Lease liability 1,216 267 948 596 352 3.9 2.1% Bank borrowings 205 1 203 3 200 4.1 0.2% Other long-term debt 16 15 1.0 0.0% Long-term debt 6,857 1,153 5,705 2,329 3,376 6.3 2.0% Bonds The following table presents the amount outstanding and effective rate of bonds. Philips Group Unsecured Bonds in millions of EUR unless otherwise stated effective rate 2020 2021 Unsecured EUR Bonds Due 9/06/2023; 1/2% 0.634% 500 500 Due 5/02/2024; 3/4% 0.861% 500 500 Due 22/05/2026; 1/2% 0.608% 750 750 Due 5/02/2028; 1 3/8% 1.523% 500 500 Due 30/03/2025; 1 3/8% 1.509% 500 500 Due 30/03/2030; 2% 2.128% 500 500 Unsecured USD Bonds Due 5/15/2025; 7 3/4% 7.429% 51 56 Due 6/01/2026; 7 1/5% 6.885% 111 120 Due 5/15/2025; 7 1/8% 6.794% 68 74 Due 11/03/2038; 6 7/8% 7.210% 591 641 Due 3/15/2042; 5% 5.273% 407 441 Adjustments 1 (39) (37) Unsecured Bonds 4,439 4,545 1) Adjustments related to both EUR and USD bonds and concern bond discounts, premium and transaction costs. Leases The following table presents a reconciliation between the total of future minimum lease payments and their present value. Philips Group Lease liabilities in millions of EUR 2020 2021 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 290 23 267 280 22 257 Between one and five years 651 55 596 636 56 580 More than five years 384 31 352 417 34 383 Lease liability 1,325 109 1,216 1,333 113 1,220 Short-term debt Philips Group Short-term debt in millions of EUR 2020 2021 Short-term bank borrowings 76 47 Current portion of long-term debt 1,153 459 Short-term debt 1,229 506 During 2021, the weighted average interest rate on the bank borrowings was 1.2% (2020: 5.9%). This decrease was mainly driven by the term loan and commercial paper that were issued in 2021 with attractive market interest rates. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2021 | |
Provisions [Abstract] | |
Provisions [Text Block] | 20 Philips Group Provisions in millions of EUR 2020 2021 long-term short-term total long-term short-term total Post-employment benefit 1 751 751 659 659 Respironics field action provision 52 525 577 Product warranty 28 139 167 32 207 238 Environmental provisions 162 21 183 99 26 124 Restructuring-related provisions 17 100 117 8 58 66 Legal provisions 19 53 72 53 39 91 Contingent consideration provisions 203 114 318 156 52 208 Other provisions 279 93 372 257 92 349 Provisions 1,458 522 1,980 1,315 998 2,313 1) For more details refer to Post-employment benefits Respironics field action provision On June 14, 2021, Philips’ subsidiary, Philips Respironics initiated a voluntary recall notification in the United States and field safety notice outside the United States for certain sleep and respiratory care products related to the polyester-based polyurethane (PE-PUR) sound abatement foam in these devices. On December 23, 2021, Philips reported that test results to date for the first-generation DreamStation devices indicated that the volatile organic compound (VOC) concentrations are within the limits of safe exposure specified in the applicable safety standard (ISO 18562). Comprehensive particulate testing and analyses are expected to be completed in the second quarter of 2022. Following the substantial ramp-up of production, service and repair capacity, the repair and replacement program in the US and several other markets is under way. Because of prioritization of the repair and replace program, Philips is currently not taking new orders for sleep therapy systems, while masks and other consumables continue to be sold. As of January 2022, Philips Respironics has shipped a total of approximately 750,000 repair kits and replacement devices to customers and aims to complete the repair and replacement program in the fourth quarter of 2022. Philips has recognized a provision based on Philips' best estimate of the costs to repair or replace devices subject to the Respironics field action as follows: Philips Group Field action provision in millions of EUR 2021 Additions 719 Utilizations (175) Translation differences 33 Balance as of December 31 577 The future developments are subject to significant uncertainties, which require management to make estimates and assumptions about items such as quantities and the portion to be replaced or repaired. As of December 31, 2021, the impact of changes in these main assumptions and estimates, holding other assumptions constant, on the field action provision are as follows: Philips Group Main assumptions in millions of EUR unless otherwise stated Increase (decrease) in provision Assumption Estimate Increase individual assumption by 10% Decrease individual assumption by 10% Total quantity of devices 5.2 million 63 (63) Replacement share 46% 44 (44) Actual outcomes in future periods may differ from these estimates and affect the company's results of operations, financial position and cash flows. Philips Respironics continues to engage with the US Food and Drug Administration (FDA) and other relevant competent authorities. In addition, other charges related to the remediation, such as testing, external advisory and regulatory response, that are expensed as incurred amounted to EUR 94 million for the year ended December 31, 2021. Furthermore, Philips is a defendant in a number of consumer class action lawsuits from users of the affected devices and a number of individual personal injury and other compensation claims. For legal matters including claims refer to Contingent assets and liabilities 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, and include costs to execute field change orders. The field action provision in connection with the Philips Respironics voluntary recall notification is shown separately above. The company expects the provisions to be utilized mainly within the next year. Additions in 2021 include quality actions of EUR 94 million in the Connected Care segment. Philips Group Provisions for assurance-type product warranty in millions of EUR 2020 2021 Balance as of January 1 210 167 Additions 239 364 Utilizations (270) (265) Transfer to liabilities associated with assets held for sale (37) Translation differences and other (12) 10 Balance as of December 31 167 238 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 71 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 refer to Contingent assets and liabilities Philips Group Environmental provisions in millions of EUR 2020 2021 Balance as of January 1 170 183 Additions 9 18 Utilizations (16) (15) Releases 0 (64) Changes in discount rate 37 (10) Accretion 3 3 Translation differences and other (19) 9 Balance as of December 31 183 124 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. Based on the progressive insight with respect to site remediation experience, technological progress and risk-based clean-up strategies, the estimated remaining duration of remediation activities for environmental liabilities for infinite environmental sites was revised in 2021 from 60 years to 30 years. The resulting release was EUR 55 million of which EUR 33 million is recorded in continuing operations and EUR 22 million in discontinued operations. Restructuring-related provisions Philips Group Restructuring-related provisions in millions of EUR Jan. 1, 2021 additions utilizations releases other changes Dec. 31, 2021 Diagnosis & Treatment 33 23 (19) (13) 1 26 Connected Care 17 16 (12) (4) - 17 Personal Health 28 6 (21) (6) 2 9 Other 38 10 (21) (16) 4 14 Philips Group 117 55 (73) (39) 6 66 In 2021, the most significant restructuring projects impacted Diagnostic & Treatment and Connected Care businesses and mainly took place in the Netherlands and US. 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. 2020 In 2020, the most significant restructuring projects impacted Diagnostic & Treatment and Other businesses and mainly took place in the Netherlands, US and Germany. The movements in the provisions for restructuring in 2020 are presented by segment as follows: Philips Group Restructuring-related provision in millions of EUR Jan. 1, 2020 additions utilizations releases other changes Dec. 31, 2020 Diagnosis & Treatment 61 36 (47) (16) (1) 33 Connected Care 28 17 (21) (5) (3) 17 Personal Health 25 30 (22) (3) (1) 28 Other 41 35 (31) (7) - 38 Philips Group 156 118 (122) (32) (4) 117 Legal 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 Legal provisions in millions of EUR 2020 2021 Balance as of January 1 55 72 Additions 72 43 Acquisitions 38 Utilizations (45) (17) Releases (6) (48) Accretion 1 1 Translation differences and other (5) 3 Balance as of December 31 72 91 The majority of the movements in the above schedule are: additions in part related to investigations in the Sleep & Respiratory Care business (unrelated to the Philips Respironics voluntary recall notification), provisions recognized for certain pending investigations inherited with the acquisition of BioTelemetry, Inc. and a release following the positive outcome of the investigation of the Italian Competition Authority (ICA) for which a provision was recorded in the prior year. For details of other legal matters, including regulatory and other governmental proceedings, refer to Contingent assets and liabilities 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 2020 2021 Balance as of January 1 354 318 Acquisitions 70 16 Utilizations (14) (48) Fair value changes (93) (78) Balance as of December 31 318 208 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. Changes in fair value of the contingent consideration liability are reflected in other business income. EPD In 2020 and 2021, the fair value changes mainly related to EPD. In 2021, the decrease of EUR 67 million in the fair value of the contingent consideration comprised of EUR 41 million due to the revisions to EPD’s forecast due to more severe short-term impacts of COVID-19 and the competitive environment, and EUR 26 million due to delays in achievement of certain milestones. In 2020, revisions to EPD’s forecast due to delays in commercialization caused by the need to do more work on the maturity of the technology, resulted in a EUR 101 million decrease in the respective fair value of the contingent consideration. For more details of 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 three years. Other provisions Philips Group Other provisions in millions of EUR 2020 2021 Balance as of January 1 392 372 Additions 161 89 Utilizations (109) (87) Releases (49) (29) Accretion (1) (5) Translation differences and other (21) 9 Balance as of December 31 372 349 The main elements of other provisions are: provisions for possible taxes/social security of EUR 37 million (2020: EUR 39 million); provisions for onerous contracts of EUR 12 million (2020: EUR 24 million), reflecting non-cancellable commitments on supplies for which no future demand or alternative usage has been identified, primarily caused by volatility in demand due to COVID-19. For more details refer to COVID-19 provisions for employee jubilee funds EUR 94 million (2020: EUR 92 million); self-insurance provisions of EUR 43 million (2020: EUR 45 million); provisions for decommissioning costs of EUR 33 million (2020: EUR 30 million); provisions for rights of return of EUR 40 million (2020: EUR 36 million); the releases in 2020 and 2021 are due to the reassessment of the positions in other provisions throughout the year; 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, 2021 | |
Post-employment benefits [Abstract] | |
Post-employment benefits [Text Block] | 21 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 Germany and the United States make up most of the defined benefit obligation (DBO) and the net position. The company also has DB plans in the rest of the world; 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 position in Germany, the United States and in Other Countries. Philips Group Post-employment benefits in millions of EUR Germany United States Other Countries Total 2020 2021 2020 2021 2020 2021 2020 2021 Present value of funded DBO (649) (606) (568) (558) (304) (206) (1,521) (1,370) Present value of unfunded DBO (344) (316) (141) (149) (147) (135) (633) (600) Total present value of DBO (993) (921) (709) (708) (451) (341) (2,153) (1,970) Fair value of plan assets 543 572 613 623 247 185 1,403 1,380 Net position (450) (349) (95) (84) (205) (157) (750) (590) The classification of the net position is as follows: Philips Group Classification net position in millions of EUR Germany United States Other Countries Total 2020 2021 2020 2021 2020 2021 2020 2021 Total asset for plans in a surplus 3 46 65 1 46 69 Total liability for plans in a deficit (450) (352) (141) (149) (205) (157) (797) (659) Provisions for post-employment benefit plans under AHFS - - Net position (450) (349) (95) (84) (205) (157) (750) (590) 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. 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 which charges a fee to US companies providing DB pension plans. The fee is also dependent on the amount of unfunded vested liabilities. 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. 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 2019 2020 2021 Defined-benefit plans 56 74 36 - included in income from operations 32 59 28 - included in financial expense 22 13 8 - included in Discontinued operations 1 1 1 Defined-contribution plans 346 366 375 - included in income from operations 338 358 368 - included in Discontinued operations 8 8 7 Post-employment benefits costs 401 440 411 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 2020 2021 Balance as of January 1 3,350 2,153 Service cost 39 36 Interest cost 71 33 Employee contributions 15 7 Actuarial (gains) / losses - demographic assumptions 16 3 - financial assumptions 163 (86) - experience adjustment 39 (6) (Negative) past service cost 2 (5) Settlements (1,185) (90) Benefits paid from plan (221) (95) Benefits paid directly by employer (35) (33) Translation differences and other (100) 52 Balance as of December 31 2,153 1,970 Philips Group Plan assets in millions of EUR 2020 2021 Balance as of January 1 2,526 1,403 Interest income on plan assets 58 25 Admin expenses paid (1) (1) Return on plan assets excluding interest income 268 44 Employee contributions 15 7 Employer contributions 34 33 Settlements (1,205) (86) Benefits paid from plan (221) (96) Translation differences and other (71) 50 Balance as of December 31 1,403 1,380 The settlement amounts mainly relate to the execution of a lump-sum window and annuity purchase program during 2020 regarding the US funded pension plan (2020) and to the transfer of the provident fund plan into the government provident fund in India (2021). 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 2020 2021 Assets quoted in active markets - Debt securities 782 790 - Equity securities - Other 175 195 Assets not quoted in active markets - Debt securities 7 1 - Equity securities 133 122 - Other 307 272 Total assets 1,403 1,380 The plan assets in 2021 contain 29% (2020: 32%) unquoted plan assets. Plan assets in 2021 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: Germany: Heubeck-Richttafeln 2018 Generational, assuming 93% of mortality rates for male retirees between age 60 and 85 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 Germany, the United States and the rest of the world in % Germany United States Other Countries Total 2020 2021 2020 2021 2020 2021 2020 2021 Discount rate 0.6% 1.1% 2.3% 2.6% 2.2% 2.1% 1.5% 1.8% Inflation rate 1.6% 1.8% 2.0% 2.2% 1.7% 2.0% 1.7% 2.0% Salary increase 2.5% 2.5% 0.0% 0.0% 2.7% 2.9% 2.5% 2.6% The company changed the methodology for setting discount rates in 2021. As of December 31, 2021, Philips uses the Mercer yield curve methodology for setting the discount rate. The change of discount rate methodology is treated as a change in accounting estimate. The impact on the DBO amounts to a decrease of EUR 11 million and the impact on the current service cost amounts to a decrease lower than EUR 1 million. The impact of the change in accounting estimate has been estimated as of December 31, 2021. Sensitivity analysis The following table 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 (Germany: 11, United States: 12, and Other countries: 11) as of December 31, 2021 (2020: 12 years). Philips Group Sensitivity of key assumptions in millions of EUR 2020 2021 Increase Discount rate (1% movement) (226) (196) Inflation rate (1% movement) 86 99 Salary increase (1% movement) 16 19 Longevity 1 51 48 Decrease Discount rate (1% movement) 265 241 Inflation rate (1% movement) (78) (83) Salary increase (1% movement) (19) (18) 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% decrease in the assumed rates of mortality for the company’s major plans. A 10% decrease in assumed mortality rates equals improvement of life expectancy by 0.5 - 1 year. Cash flows and costs in 2022 The company expects considerable cash outflows in relation to post-employment benefits which are estimated to amount to EUR 457 million in 2022, consisting of: EUR 23 million employer contributions to funded DB plans (Germany: EUR 13 million, United States: EUR 0 million, Other Countries: EUR 10 million); EUR 40 million cash outflows in relation to unfunded DB plans (Germany: EUR 19 million, United States: EUR 10 million, Other Countries: EUR 11 million); and EUR 394 million employer contributions to DC plans (Netherlands: EUR 194 million, United States: EUR 139 million, Other Countries: EUR 61 million). The service and administration cost for 2022 is expected to amount to EUR 34 million for DB plans. The net interest cost for 2022 for the DB plans is expected to amount to EUR 9 million. The cost for DC pension plans in 2022 is equal to the expected DC cash flow. |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued liabilities [Abstract] | |
Accrued liabilities [Text Block] | 22 Accrued liabilities are summarized as follows: Philips Group Accrued liabilities in millions of EUR 2020 2021 Personnel-related costs: - Salaries and wages 614 566 - Accrued holiday entitlements 124 127 - Other personnel-related costs 78 108 Fixed-asset-related costs: - Gas, water, electricity, rent and other 21 33 Communication and IT costs 64 82 Distribution costs 93 122 Sales-related costs: - Commission payable 10 7 - Advertising and marketing-related costs 197 175 - Other sales-related costs 20 20 Material-related costs 103 130 Interest-related accruals 52 52 Other accrued liabilities 302 362 Accrued liabilities 1,678 1,784 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other liabilities [Abstract] | |
Other liabilities [Text Block] | 23 Other non-current liabilities Non-current liabilities were EUR 56 million as of December 31, 2021 (December 31, 2020: EUR 74 million). 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 2020 2021 Accrued customer rebates that cannot be offset with accounts receivables for those customers 412 280 Other taxes including social security premiums 253 190 Other liabilities 119 116 Other current liabilities 785 587 Contract liabilities Non-current contract liabilities were EUR 446 million as of December 31, 2021 (December 31, 2020: EUR 403 million) and current contract liabilities were EUR 1,491 million as of December 31, 2021 (December 31, 2020: EUR 1,239 million). The current contract liabilities increased with EUR 251 million. The year-on-year change is mainly driven by increase in deferred balance for customer service contracts. The current contract liabilities as of December 31, 2020 resulted in revenue recognized of EUR 1,239 million in 2021. |
Cash flow statement supplementa
Cash flow statement supplementary information | 12 Months Ended |
Dec. 31, 2021 | |
Cash flow statement supplementary information [Abstract] | |
Cash flow statement supplementary information [Text Block] | 24 Cash paid for leases In 2021, gross lease payments of EUR 308 million (2020: EUR 325 million; 2019: EUR 281 million EUR 26 million Net cash used for derivatives and current financial assets In 2021, a total of EUR 48 million cash was received with respect to foreign exchange derivative contracts related to activities for liquidity management and funding (2020: EUR 13 million outflow; 2019: EUR 166 million outflow). Purchase and proceeds from non-current financial assets In 2021, the net cash flow is EUR 0 million. In 2020, the net cash outflow of EUR 66 million was mainly the cash outflow due to investment in DC Health amounting to EUR 45 million in China. 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. Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR Balance as of Dec. 31, 2020 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2021 Long term debt 2 6,857 (226) 200 101 6,933 USD bonds 1,210 103 1,313 EUR bonds 3,229 4 3,233 Bank borrowings 205 (1) 203 Other long-term debt 16 14 30 Leases 1,216 (239) 98 145 1,220 Forward contracts 3 982 (48) 934 Short term debt 2 76 (25) (5) 47 Short-term bank borrowings 76 (24) (5) 47 Other short-term loans 1 (1) Forward contracts 3 Equity (1,181) (2,096) 1,868 (1,410) Dividend payable (484) 484 Forward contracts 3 (982) 48 (934) Treasury shares (199) (1,613) 1,336 (476) Total (2,347) 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 Balance as of Dec. 31, 2019 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2020 Long term debt 2 5,355 767 (180) 916 6,857 USD bonds 1,328 (117) 1,210 EUR bonds 2,234 991 3 3,229 Bank borrowings 206 (2) 205 Other long-term debt 17 (1) 1 16 Leases 1,381 (223) (61) 119 1,216 Forward contracts 3 188 793 982 Short term debt 2 92 16 (32) 76 Short-term bank borrowings 92 15 (32) 76 Other short-term loans 1 1 Forward contracts 3 Equity (390) (300) (491) (1,181) Dividend payable (2) 2 Forward contracts 3 (188) (793) (982) Treasury shares (201) (298) 299 (199) Total 483 1) Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 2) In the 2019 opening balance sheet, EUR 803 million of lease liabilities were recognized due to the implementation of IFRS 16. 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, 2021 | |
Contingent assets and liabilities [Abstract] | |
Contingent assets and liabilities [Text Block] | 25 Contingent assets As per December 31, 2021, 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. Cathode Ray Tubes (CRT) Following the public investigations into alleged anticompetitive activities in the Cathode Ray Tubes industry that began in 2007, certain Philips Group companies were named as defendants in numerous (class action) lawsuits in the United States, Canada, Germany, the Netherlands, Denmark, the United Kingdom, Turkey, and Israel. Plaintiffs in these cases varied from classes of indirect and direct purchasers, state attorneys general, electronics retailers and television and monitor manufacturers. By the end of 2021, resolutions have been reached in most of these cases. Litigation is still pending or threatened in relation to: (i) potential claims that may be filed by certain objectors to the original US indirect purchaser class settlement that was finally approved in 2021 (ii) a claim filed by the state attorney general for Puerto Rico, (iii) a claim filed by a monitor manufacturer in the UK, (iv) a consumer class action in Israel and (v) a consumer action in the Netherlands. 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 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 claimed restitution of approximately EUR 210 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. In November 2020, the Seoul Central District Court dismissed LGE’s case which decision was confirmed by the Seoul High Court on December 23, 2021. Public Investigations The company is engaged in discussions with, and has provided information to, the United States Securities & Exchange Commission (SEC) and Department of Justice (DoJ) regarding alleged tender irregularities in the medical device industry in certain jurisdictions. These interactions are primarily focused on a number of potential compliance findings that the company is addressing in China and Bulgaria. In 2020, the company entered into a leniency agreement with the Brazilian public prosecution service for historic transactions involving tender irregularities in Brazil. An investigation by CADE, the Brazilian competition authority, focused on these transactions remains ongoing. The Brazilian matters are part of the discussions with the SEC and DoJ. Given the significant uncertainty regarding the nature of the relevant events and obligations, Philips is not currently able to reliably estimate the financial effect of a range of possible outcomes in connection with these matters. The outcomes of these matters could have a material impact on the company’s consolidated financial position, results of operations and cash flows. Respironics field action On June 14, 2021, Philips’ subsidiary Philips RS North America LLC (Philips Respironics) issued a voluntary recall notification in the United States and field safety notice outside the United States for specific Philips Respironics Bi-Level PAP, CPAP, and mechanical ventilator devices. FDA inspection On August 26, 2021, the US Food and Drug Administration (FDA) commenced an inspection of the Philips Respironics manufacturing facility in Murrysville, Pennsylvania and provided Philips Respironics with its preliminary inspectional observations on November 9, 2021. Philips Respironics responded to the FDA’s inspectional observations in December 2021, which described the actions already taken by the company, as well as additional planned actions. Philips Respironics is also providing periodic updates to the FDA on its progress for the planned actions. Should the FDA decide that Philips Respironics’ written response and/or actions are not timely or sufficient to address the FDA’s inspectional observations, the FDA may take additional enforcement action, which may include monetary penalties. Product liability claims Following the voluntary recall notification, a number of civil complaints have been filed in several jurisdictions against Philips Respironics and certain of its affiliates (including the company) generally alleging economic loss, personal injury and/or the potential for personal injury allegedly caused by devices subject to the recall. In the United States, as of December 31, 2021, approximately 100 consumer class action lawsuits and 1 commercial class action lawsuit had been filed alleging economic loss and/or medical monitoring claims. In addition, as of December 31, 2021, approximately 120 personal injury lawsuits had been filed in the United States. On October 8, 2021, a Multi-District Litigation (MDL) in the US District Court for the Western District of Pennsylvania was formed, and most of these class action and personal injury lawsuits have been consolidated in the MDL for pre-trial proceedings. In Australia, a consumer class action lawsuit alleging personal injury was filed against the company’s subsidiary Philips Electronics Australia Ltd on October 4, 2021. Philips Respironics and certain of its affiliates (including the company) are also defendants in consumer class action lawsuits in Canada and Israel alleging economic loss and/or personal injury. While the company believes it is probable that these lawsuits will in the aggregate lead to an outflow of economic resources for Philips Respironics or other Philips entities, given the significant uncertainty regarding the nature of the relevant events and potential obligations, the company is not currently able to reliably estimate the amount of the obligation associated with these various lawsuits. The final outcome of the individual lawsuits and the cost to resolve them cannot currently be determined due to a number of variables, including claimant-specific information that is not yet available. In addition, the company cannot reasonably predict the number of claims that may be asserted in the future in relation to this matter. An adverse outcome with respect to any or all of these lawsuits and/or any future claims could have a material impact on the company’s consolidated financial position, results of operations and cash flows. Securities class action On August 16, 2021, a securities class action complaint was filed against the company, its CEO and its CFO in the United States District Court for the Eastern District of New York alleging violations of the Securities Exchange Act of 1934 causing damage to investors. On January 3, 2022, the lead plaintiff in the case filed its amended complaint seeking to represent individuals that purchased Philips shares between February 23, 2016, through November 12, 2021. The amended complaint focuses on share price declines that allegedly occurred as a result of disclosures included in the Q1 2021 earnings release on April 26, 2021, the voluntary recall notification on June 14, 2021, the Q2 2021 earnings release on July 26, 2021, and the publication of the form 483 observations by the FDA on November 12, 2021. The Company’s motion to dismiss is currently due in the first quarter of 2022. It is the company’s assessment that it is possible but not probable that the case could lead to a certain outflow of economic resources. An adverse outcome of this case could have a material impact on the company’s consolidated financial position, results of operations and cash flows. Other claims On October 12, 2021, SoClean, a company offering ozone-based cleaning products for sleep devices, filed a lawsuit against the company and certain of its affiliates alleging that the defendants’ statements about the potential adverse effect ozone cleaning may have on the recalled devices has significantly damaged its business. The company believes that the claim is without merit and will vigorously defend itself. It is possible that additional related claims, including from customers or business partners regarding alleged economic losses suffered as a consequence of the voluntary recall, may be filed against Philips Respironics or other Philips entities in the future. In particular, Philips Respironics is engaging with certain customers on the level of compensation they allege to be entitled to under Philips Respironics’ repair and replacement program. In the event of an adverse outcome, these matters could have a material impact on the company’s consolidated financial position, results of operations and cash flows. To date no provisions have been recorded for the litigation associated with the Respironics field action. Miscellaneous For details on other contractual obligations, please refer to liquidity risk in Details of treasury and other financial risks |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related-party transactions [Abstract] | |
Related-party transactions [Text Block] | 26 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. Philips Group Related-party transactions in millions of EUR 2019 2020 2021 Sales of goods and services 158 204 116 Purchases of goods and services 53 57 41 Receivables from related parties 32 37 40 Payables to related parties 2 1 2 In the previous table, sales transactions between Philips and PMC are included amounting to EUR 106 million in 2021 (2020: EUR 191 million; 2019: EUR 150 million), under which PMC has leased the equipment to the ultimate customer. In addition to that, as part of its S&RC operations in the US, Philips Medical Capital LLC funded durable medical equipment (DMEs) providers, through loans and leases. PMC-funded transactions these DMEs entered into with Philips amount to EUR 162 million in 2021 (2020: EUR 242 million; 2019: EUR 235 million). The associated costs of these funding transactions are borne by the ultimate customer and settled directly with Philips Medical Capital LLC. Philips Medical Capital LLC, a Pennsylvania limited liability company, is owned 60% by De Lage Landen Financial Services, Inc. (DLL) and 40% by Philips Electronics North America Corporation (Philips). 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, 2021 | |
Share-based compensation [Abstract] | |
Share-based compensation [Text Block] | 27 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 * 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 116 million (2020: EUR 121 million; 2019: EUR 105 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 110 million is recognized in 2021 and represent the costs of the share-based compensation plans. 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 granted in 2019 have two performance conditions, relative Total Shareholders’ Return ('TSR') compared to a peer group of 20 companies including Philips (2020: 20 companies, 2019; 20 companies) and adjusted Earnings Per Share growth ('EPS'). For performance shares granted in 2020 onwards, an additional non-financial criterion was added around sustainability. The introduction of the sustainability criterion reflects a further alignment of the remuneration package for the Board of Management with Philips‘ mission, vision and aim to act as a responsible member of society. The criterion is based on three Sustainable Development Goals ('SDG') as defined by the United Nations that are included in Philips’ strategy on sustainability (refer to Environment, Social and Governance The performance shares vest three years after the grant date. The number of performance shares that will vest is dependent on achieving the performance conditions provided that the grantee is still employed with the company. For the performance shares with a grant date in 2019 the two financial conditions, TSR and EPS, are equally weighted, while for the performance shares with a grant date in 2020 and 2021 the TSR is weighted 50%, EPS 40% and SDG 10%. The amount recognized as an expense is adjusted for actual performance of adjusted EPS growth and the actual realization of the SDGs since these are non-market performance conditions. It is not adjusted for non-vesting or extra vesting of performance shares due to a relative TSR 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 as well as 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 2021 grants: Risk-free rate: (0.69)% Expected share price volatility: 28% 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, 2021 and changes during the year are presented in the following table: Philips Group Performance shares shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2021 3,545,312 41.31 Granted 1,121,001 50.73 Notional dividends 1 62,872 45.22 Vested/Issued 1,466,223 39.18 Forfeited 272,873 45.90 Adjusted quantity 2 107,624 37.67 Outstanding at December 31, 2021 3,097,713 45.28 USD-denominated Outstanding at January 1, 2021 2,412,767 47.10 Granted 693,918 61.32 Notional dividends 1 41,324 51.42 Vested/Issued 947,772 47.48 Forfeited 268,500 51.29 Adjusted quantity 2 73,264 50.06 Outstanding at December 31, 2021 2,005,000 51.48 1) Dividend declared in 2021 on outstanding shares. 2) Adjusted quantity includes the adjustments made to Performance shares outstanding due to updates on the actual and expected EPS. As of December 31, 2021, a total of EUR 110 million of unrecognized compensation costs relate to non-vested performance shares (as of December 31, 2020 EUR 116 million; as of December 31, 2019 EUR 106 million). These costs are expected to be recognized over a weighted-average period of 1.89 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 provided that the grantee is still employed with the company. A summary of the status of the Company’s restricted shares as of December 31, 2021 and changes during the year are presented in the following table: Philips Group Restricted shares shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2021 1,813,385 36.20 Granted 631,347 44.41 Notional dividends 1 33,430 39.69 Vested/Issued 671,703 33.96 Forfeited 187,648 40.19 Cancelled 323 35.72 Outstanding at December 31, 2021 1,618,488 39.93 USD-denominated Outstanding at January 1, 2021 1,649,847 41.14 Granted 721,469 53.42 Notional dividends 1 30,551 44.99 Vested/Issued 584,833 40.64 Forfeited 206,013 46.09 Outstanding at December 31, 2021 1,611,021 46.26 1) Dividend declared in 2021 on outstanding shares. At December 31, 2021, a total of EUR 66 million of unrecognized compensation costs relate to non-vested restricted shares (at December 31, 2020 EUR 62 million; at December 31, 2019 EUR 59 million). These costs are expected to be recognized over a weighted-average period of 1.8 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, 2021. The following tables summarize information about the Company’s options as of December 31, 2021 and changes during the year: Philips Group Options on EUR-denominated listed share options weighted average exercise price Outstanding at January 1, 2021 491,914 17.10 Exercised 233,265 19.03 Expired 19,572 20.48 Outstanding at December 31, 2021 239,077 14.93 Exercisable at December 31, 2021 239,077 14.93 The exercise prices range from EUR 14.82 to EUR 23.23. The weighted average remaining contractual term for options outstanding and options exercisable at December 31, 2021, was 0.3 years. The aggregate intrinsic value of the options outstanding and options exercisable at December 31, 2021, was EUR 4 million. The total intrinsic value of options exercised during 2021 was EUR 6 million (2020: EUR 9 million, 2019: EUR 13 million). Philips Group Options on USD-denominated listed share options weighted average exercise price Outstanding at January 1, 2021 387,177 23.72 Exercised 220,662 26.12 Expired 16,350 27.83 Outstanding at December 31, 2021 150,165 19.75 Exercisable at December 31, 2021 150,165 19.75 The exercise prices range from 19.50 to 30.27. The weighted average remaining contractual term for options outstanding and options exercisable as of December 31, 2021, was 0.3 years. The aggregate intrinsic value of the options outstanding and options exercisable as of December 31, 2021, was 3 million. The total intrinsic value of options exercised during 2021 was USD7 million (2020; USD 11 million, 2019: USD 11 million). At December 31, 2021 there were no unrecognized compensation costs related to outstanding options. Cash received from exercises under the Company’s option plans amounted to EUR 9 million in 2021 (2020: EUR 21 million, 2019: EUR 28 million), The actual tax deductions realized as a result of USD option exercises totaled approximately 1 million in 2021 (2020: EUR 3 million, 2019: EUR 2 million). The outstanding options as of December 31, 2021 are categorized in exercise price ranges as follows: Philips Group Outstanding options in millions of EUR unless otherwise stated options intrinsic value in millions weighted average remaining contractual term EUR-denominated 10-15 229,660 4.1 0.3 15-20 8,100 0.1 0.5 20-25 1,317 1.0 Outstanding options 239,077 4.3 0.3 USD-denominated 15-20 143,415 2.5 0.3 20-25 3,600 0.1 0.4 25-30 30-35 3,150 0.9 Outstanding options 150,165 2.6 0.3 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 2021 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, 2021. The following table summarizes information about the Company’s Accelerate! options as of December 31, 2021 and changes during the year: Philips Group Accelerate! options options weighted average exercise price EUR-denominated Outstanding at January 1, 2021 163,200 17.66 Exercised 26,225 15.24 Outstanding at December 31, 2021 136,975 18.13 Exercisable at December 31, 2021 136,975 18.13 USD-denominated Outstanding at January 1, 2021 37,800 20.02 Exercised 20,300 20.02 Expired Outstanding at December 31, 2021 17,500 20.02 Exercisable at December 31, 2021 17,500 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, 2021 was 0.5 years. The weighted average remaining contractual term for USD-Accelerate! options outstanding and exercisable at December 31, 2021 was 0.1 years. The aggregate intrinsic value of the EUR-denominated Accelerate! options outstanding and exercisable at December 31, 2021, was EUR 2 million. The aggregate intrinsic value of the USD-denominated Accelerate! options outstanding and exercisable at December 31, 2021 was USD 0.30 million. The total intrinsic value of Accelerate! options exercised during 2021 was EUR 0.7 million for EUR-denominated options (2020: EUR 1.6 million, 2019: EUR 2 million) and USD 0.7 million for USD-denominated options (2020: USD 0.9 million, 2019: USD 1 million). Cash received from exercises for EUR-denominated and USD-denominated Accelerate! options amounted to EUR 0.7 million in 2021 (2020: EUR 1.4 million, 2019: EUR 2 million). The actual tax deductions realized as a result of Accelerate! USD options exercises totaled approximately EUR 0.1 million in 2021 (2020: EUR 0.1 million, 2019: EUR 0.2 million). *) Executive Committee members can receive restricted share rights as a sign-on LTI awards upon hiring. |
Information on remuneration
Information on remuneration | 12 Months Ended |
Dec. 31, 2021 | |
Information on remuneration [Abstract] | |
Information on remuneration [Text Block] | 28 Remuneration of the Executive Committee In 2021, the total remuneration costs relating to the members of the Executive Committee (consisting of 16 members throughout the year, including the members of the Board of Management) amounted to EUR 33.4 million (2020: EUR 33.2 million; 2019: EUR 30.0 million) consisting of the elements in the following table. Philips Group Remuneration costs of the Executive Committee 1 in EUR 2019 2020 2021 Base salary/Base compensation 9,241,364 9,299,794 9,598,588 Annual incentive 2 5,566,763 6,726,768 5,250,408 Performance shares 3 4 11,143,320 13,153,975 12,610,073 Restricted share rights 3 168,404 288,372 1,380,644 Pension allowances 5 2,076,834 2,054,570 2,107,953 Pension scheme costs 440,003 382,513 306,694 Other compensation 6 1,331,990 1,264,908 2,104,044 Total 29,968,678 33,170,901 33,358,405 1) The Executive Committee consisted of 13 members as per December 31, 2021 (2020: 15 members; 2019: 14 members) 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 at the vesting/release date 4) For 2021, a release of EUR 0 (2020: EUR 554,437; 2019: EUR 0) 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, 2021, the members of the Executive Committee (including the members of the Board of Management) held 184,900 (2020: 193,300; 2019: 291,520) stock options at a weighted average exercise price of EUR 17.15 (2020: EUR 17.31; 2019: EUR 18.61). Remuneration of the Board of Management In 2021, the total remuneration costs relating to the members of the Board of Management amounted to EUR 10.3 million (2020: EUR 11.4 million; 2019: EUR 9.7 million), see the following table. Philips Group Remuneration costs of individual members of the Board of Management in EUR base compensation/salary annual incentive 1 performance shares 2 restricted share rights 2 pension allowances 3 pension scheme costs other compensation total costs 2021 F.A. van Houten 1,325,000 850,915 2,626,295 - 565,403 27,462 57,224 5,452,299 A. Bhattacharya 790,000 360,103 1,172,533 - 233,857 27,462 68,908 2,652,864 M.J. van Ginneken 605,000 317,192 886,035 - 150,755 27,462 42,610 2,029,054 2,720,000 1,528,211 4,684,863 - 950,014 82,387 168,742 10,134,217 2020 F.A. van Houten 1,325,000 1,298,500 2,874,467 - 565,922 27,001 62,176 6,153,067 A. Bhattacharya 785,000 596,600 1,295,996 - 233,126 27,001 70,267 3,007,990 M.J. van Ginneken 580,000 437,920 952,453 - 158,800 27,001 46,986 2,203,160 2,690,000 2,333,020 5,122,916 - 957,849 81,004 179,428 11,364,217 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 1) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. 2) Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares at the vesting/release date 3) The stated amounts mainly concern (share of) allowances to members of the Board of Management 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. 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 age at December 31, 2021 accumulated annual pension as of December 31, 2021 total pension related costs F.A. van Houten 61 331,208 592,865 A. Bhattacharya 60 35,102 261,319 M.J. van Ginneken 48 48,015 178,217 Pension costs 1,032,402 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 2021, 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 1.3 million (2020: EUR 1.3 million; 2019: 1.2 million). Former members received no remuneration. The members of the Supervisory Board do not receive any share-based remuneration. Therefore, at December 31, 2021 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 membership committees other compensation 1 total 2021 F. Sijbesma 141,301 27,808 8,237 177,346 P.A.M. Stoffels 109,863 27,808 4,769 142,440 J. van der Veer 53,507 12,082 3,916 69,505 C.A. Poon 39,699 16,915 783 57,397 N. Dhawan 100,000 18,000 2,269 120,269 O. Gadiesh 34,521 4,833 783 40,137 D.E.I. Pyott 100,000 36,370 2,269 138,639 A.M. Harrison 100,000 14,000 2,269 116,269 M.E. Doherty 100,000 27,000 4,769 131,769 P. Löscher 100,000 32,000 4,769 136,769 I. Nooyi 100,000 14,000 2,269 116,269 S.K. Chua 65,753 11,836 1,492 79,081 1,044,644 242,652 38,595 1,325,891 2020 J. van der Veer 155,000 35,000 11,345 201,345 C.A. Poon 115,000 49,000 7,269 171,269 N. Dhawan 100,000 18,000 7,269 125,269 O. Gadiesh 100,000 14,000 2,269 116,269 D.E.I. Pyott 100,000 42,000 12,269 154,269 P.A.M. Stoffels 100,000 9,333 9,769 119,102 A.M. Harrison 100,000 14,000 2,269 116,269 M.E. Doherty 100,000 24,000 9,769 133,769 P. Löscher 66,667 21,333 1,513 89,513 F. Sijbesma 76,667 9,333 1,513 87,513 1,013,333 236,000 65,254 1,314,587 2019 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 51,500 870,000 201,916 131,000 1,202,916 1) The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel, the entitlement of EUR 2,000 under the Philips product arrangement and the annual fixed net expense allowance. Supervisory Board members’ and Board of Management members’ interests in Philips shares Members of the Supervisory Board and of the Board of Management are prohibited from writing call and put options or similar derivatives of Philips securities. Philips Group Shares held by Board members 1 2 in number of shares December 31, 2020 December 31, 2021 F.A. van Houten 424,029 525,761 A. Bhattacharya 123,077 148,365 M.J. van Ginneken 88,996 110,528 1) Reference date for board membership is December 31, 2021. 2) The total shares held by the members of the Board of Management is less than 1% of the company's issued share capital. |
Fair value of financial assets
Fair value of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair value of financial assets and liabilities [Abstract] | |
Fair value of financial assets and liabilities [Text Block] | 29 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 following table, 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 2021 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 233 233 233 Equity instruments 4 4 4 Other financial assets 46 46 34 12 Financial assets carried at FVTPL 283 283 4 34 245 Debt instruments 27 27 27 Equity instruments 273 273 63 210 Current financial assets - - Receivables - current 68 68 68 Financial assets carried at FVTOCI 368 368 63 27 278 Derivative financial instruments 63 63 63 Financial assets carried at fair value 714 714 67 124 523 Carried at (amortized) cost: Cash and cash equivalents 2,303 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 47 Receivables - current 3,720 Receivables - non-current 224 Financial assets carried at (amortized) cost 6,296 Total financial assets 7,010 Financial liabilities Carried at fair value: Contingent consideration (208) (208) (208) Financial liabilities carried at FVTP&L (208) (208) (208) Derivative financial instruments (202) (202) (202) Financial liabilities carried at fair value (410) (410) (202) (208) Carried at (amortized) cost: Accounts payable (1,872) Interest accrual (52) Debt (Corporate bonds and leases) (5,765) (6,396) (5,177) (1,220) Debt (excluding corporate bonds and leases) (1,214) Financial liabilities carried at (amortized) cost (8,904) Total financial liabilities (9,314) 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 2020 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 207 207 207 Equity instruments 5 5 5 Other financial assets 36 36 30 5 Financial assets carried at FVTPL 248 248 5 30 212 Debt instruments 27 27 27 - Equity instruments 119 119 12 107 Current financial assets - - Receivables - current 91 91 91 Financial assets carried at FVTOCI 237 237 12 27 198 Derivative financial instruments 111 111 111 Financial assets carried at fair value 596 596 17 168 411 Carried at (amortized) cost: Cash and cash equivalents 3,226 Loans and receivables: Current loans receivables - Other non-current loans and receivables 37 Receivables - current 4,065 Receivables - non-current 230 Financial assets carried at (amortized) cost 7,558 Total financial assets 8,154 Financial liabilities Carried at fair value: Contingent consideration (318) (318) (318) Financial liabilities carried at FVTP&L (318) (318) (318) Derivative financial instruments (163) (163) (163) Financial liabilities carried at fair value (481) (481) (163) (318) Carried at (amortized) cost: Accounts payable (2,119) Interest accrual (52) Debt (Corporate bonds and leases) (5,655) (6,431) (5,216) (1,216) Debt (excluding corporate bonds and leases) (1,279) Financial liabilities carried at (amortized) cost (9,104) Total financial liabilities (9,585) 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. 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. As part of the EPD acquisition Philips may be required to pay additional consideration to former shareholders 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 fair value of this contingent consideration provision was determined using a probability-weighted and a risk-adjusted approach to estimate the achievement of future regulatory and commercial milestones, respectively. The discount rates used in the risk-adjusted approach are ranging from 8 to 9 percent and reflect the inherent risk related to achieving the commercial milestones. Both regulatory and commercial milestones are discounted for the time value of money at risk-free rates. The fair value measurement is based on management’s estimates and assumptions and hence classified as Level 3 in the fair value hierarchy. For further information on this and other contingent consideration provisions, refer to Provisions A sensitivity analysis of the EPD contingent consideration provision at December 31, 2021 shows that if the probabilities of success for regulatory milestones are 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 11%. Similarly, a decrease in the probabilities of success for regulatory milestones by 10 percentage points would reduce the fair value by approximately 11%. If the discount rates for commercial milestones were to increase instantaneously by 100 basis points from the assumption at December 31, 2021, with all other variables (including foreign exchange rates) held constant, the fair value of the provision would decrease by approximately 4%, while a decrease in the discount rates of 100 basis points would increase the fair value by approximately 4%. In 2021 the impact of COVID-19 has gradually reduced, however there continues to be uncertainty and volatility related to the impact of the pandemic, including global supply chain challenges. Where relevant, the estimated impact of the COVID-19 pandemic, supply chain challenges and resulting uncertainties have been reflected in the forecasts used as a basis for the fair value of contingent consideration. The following table 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 Financial assets Financial liabilities Balance as of January 1, 2021 411 318 Acquisitions 16 Purchase 113 Sales (122) Utilizations (48) Recognized in profit and loss: other business income (87) financial income and expenses 1 98 1 Recognized in other comprehensive income 2 12 9 Receivables held to collect and sell (25) Reclassification from associates 36 Balance as of December 31, 2021 523 208 1) Refer to Financial income and expenses 2) Includes translation differences Philips Group Reconciliation of Level 3 fair value measurements in millions of EUR Financial assets Financial liabilities Balance as of January 1, 2020 212 354 Acquisitions 70 Purchase 127 Sales (60) Utilizations (15) Recognized in profit and loss: other business income (93) financial income and expenses 129 6 Recognized in other comprehensive income 1 (8) (6) Receivables held to collect and sell 11 Balance as of December 31, 2020 411 318 1) Includes translation differences The following section 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 2020 2021 Derivatives Gross amounts of recognized financial assets 111 63 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 111 63 Related amounts not offset in the balance sheet Financial instruments (55) (47) Cash collateral received Net amount 57 17 Philips Group Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2020 2021 Derivatives Gross amounts of recognized financial liabilities (163) (202) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (163) (202) Related amounts not offset in the balance sheet Financial instruments 55 47 Cash collateral received Net amount (109) (155) |
Details of treasury and other f
Details of treasury and other financial risks | 12 Months Ended |
Dec. 31, 2021 | |
Details of treasury and other financial risks [Abstract] | |
Details of treasury and other financial risks [Text Block] | 30 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, 2021, Philips had EUR 2,303 million in cash and cash equivalents (2020: EUR 3,226 million), within which short-term deposits of EUR 1,357 million (2020: EUR 1,983 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 Program and a EUR 1.0 billion committed standby revolving credit facility that can be used for general group purposes, such as a backstop for its Commercial Paper Program. Philips issued commercial paper of EUR 300 million in May and EUR 150 million in July, that was repaid in September 2021. The facility does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. As of December 31, 2021, Philips did not have any loans outstanding under either facility. As per 9 March 2020, Philips has established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the issuance of notes for a total amount up to EUR 10 billion. In 2021, Philips did not issue any new notes under the program. For a description of Philips’ credit facilities, refer to Debt In addition to cash and cash equivalents, at December 31, 2021, Philips also held EUR 67 million of listed (level 1) equity investments at fair value (classified as other non-current financial assets). The following table presents a summary of the Group’s fixed contractual cash obligations and commitments as of December 31, 2021. 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 payments due by period total less than 1 year 1-3 years 3-5 years after 5 years Long-term debt 3 7,233 246 1,995 1,924 3,068 Lease obligations 1,333 280 397 238 417 Short-term debt 47 47 Derivative liabilities 208 87 121 Purchase obligations 4 654 237 305 99 12 Trade and other payables 1,872 1,872 Contractual cash obligations 11,347 2,768 2,819 2,261 3,498 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 104 million (2020: EUR 132 million). As at December 31, 2021 capital contributions already made to these investment funds are recorded as non-current financial assets. Philips offers voluntary supply chain finance programs with third parties which provide participating suppliers the opportunity to factor their trade receivables at the sole discretion of both the suppliers and the third parties. Philips continues to recognize these liabilities as trade payables and settles them accordingly on the invoice maturity date based on the terms and conditions these arrangements . At December 31, 2021 approximately EUR 139 million (2020: EUR 227 million)of the Philips account payable were transferred under these arrangements. With respect to the Respironics field action, please refer to Contingent assets and liabilities 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 381 million. In addition, the company is committed to leases not yet commenced to EUR 91 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 financing activities. Lease payments under sale-and-leaseback arrangements for 2021 were EUR 85 million (2020: EUR 112 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 2022 72 2023 51 2024 33 2025 17 2026 8 Thereafter 21 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, 2021 was EUR 0.2 million (2020: EUR 0.2 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, 2021: Philips Group Estimated transaction exposure and related hedges in millions of EUR Sales/Receivables Purchases/Payable exposure hedges exposure hedges Balance as of December 31, 2021 Exposure currency USD 2,168 (1,614) (1,030) 958 JPY 665 (306) (11) 10 GBP 338 (179) (11) 11 CNY 624 (433) (83) 71 CAD 338 (173) PLN 70 (31) AUD 240 (122) CHF 124 (57) (2) 2 CZK 63 (29) SEK 71 (30) (1) 1 RUB 125 (113) (2) 2 Others 306 (275) (419) 267 Total 2021 5,131 (3,363) (1,559) 1,322 Total 2020 4,707 (3,150) (1,488) 1,267 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, 2021, a loss of EUR 25 million was deferred in equity as a result of these hedges (2020: EUR 23 million gain). The result deferred in equity will be released to earnings mostly during 2022 at the time when the related hedged transactions affect the income statement. During 2021, EUR nil nil The total net fair value of hedges related to transaction exposure as of December 31, 2021, was an unrealized liability of EUR 27 million. The estimated impact of a 10% increase of value of the EUR is estimated to be EUR 137 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 2020 2021 USD 71 78 JPY 17 13 GBP 15 14 CHF 6 5 PLN 8 3 RUB 8 10 The EUR 137 million increase includes a gain of EUR 17 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 119 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 is generally not 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 1,078 million mainly relates to the development of the USD versus the EUR. At December 31, 2021, a weakening of USD by 10% versus the EUR would result in a decrease in the currency translation reserve in equity of approximately EUR 1,132 million, while a strengthening of USD by 10% versus the EUR would result in an increase in the currency translation reserve in equity of approximately EUR 1,383 million. Refer to the country risk paragraph for countries with significant foreign currency denominated equity invested. As of December 31, 2021, cross-currency interest rate swaps for a nominal value of USD 500 million (liability at fair value: EUR 116 million) and external bond funding for a nominal value of USD 1,473 million (liability at book value: EUR 1,313 million) were designated as net investment hedges of our financing investments in foreign operations for an equal amount. During 2021 a total gain of EUR 1.1 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, 2021, was a liability of EUR 116 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 40 million in the value of the derivatives, including a EUR 40 million increase related to the USD. As of December 31, 2020, cross-currency interest rate swaps for a nominal value of USD 500 million (liability at fair value: EUR 83 million) and external bond funding for a nominal value of USD 1,473 million (liability at book value: EUR 1,210 million) were designated as net investment hedges of our financing investments in foreign operations for an equal amount. During 2020 a total gain 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, 2020, was a liability of EUR 83 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 53 million in the value of the derivatives, including a EUR 86 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 6,980 million (2020: EUR 6,934 million), which constitutes an inherent interest rate risk with potential negative impact on financial results. At year-end, Philips held EUR 2,303 million in cash and cash equivalents (2020: EUR 3,226 million), and had total long-term debt of EUR 6,473 million (2020: EUR 5,705 million) and total short-term debt of EUR 506 million (2020: EUR 1,229 million) At December 31, 2021, Philips had a ratio of fixed-rate long-term debt to total outstanding debt of approximately 90% compared to 79% one year earlier. Philips debt has a long maturity profile with an average tenor of long-term debt of 6.0 years with maturities up to 2042. The following table 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 2020 2021 Impact 1% 2 3 (345) (297) Impact 1% 2 3 346 298 Impact 1% 4 28 20 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 31, 2021, 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, 2021. Global regulators and central banks have been driving international efforts to reform key benchmark interest rates (Interbank Offered Rate or IBOR rates). The market has transitioned to alternative risk-free reference rates (RFRs) that are transaction-based. LIBOR has been discontinued for most currencies and maturities after December 31, 2021, except for the US-dollar for which certain maturities are expected to be phased out in 2023. The company has evaluated the implications of such a phase out. The Company has no interest rate hedging relationships which get affected by the reform and do not expect any significant impact on existing contracts due to change in the interest rates. The Company implemented new alternative risk free rates from January 1, 2022 and the impact due to such change in interest rates based on outstanding positions as of December 31, 2021 is booked in income statement during the year 2022 amounting to EUR 1 million 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 67 million at December 31, 2021 (2020: EUR 17 million). Philips does not hold derivatives in the above-mentioned listed companies. Philips also has shareholdings in several privately-owned companies amounting to EUR 210 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, 2021 and 2020, respectively, Philips did not have any significant outstanding financial 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 following table 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, 2021. Philips Group Credit risk with number of counterparties for deposits above EUR 10 million 10-100 million 100-500 million 500 million and above AA- rated bank counterparties 1 A+ rated bank counterparties 1 4 A rated bank counterparties 1 1 A- rated bank counterparties 1 2 4 7 For an overview of the overall maximum credit exposure related to debt instruments, derivatives and loans and receivables, 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, 2021, the company had country risk exposure of EUR 13.8 billion in the United States, EUR 1.3 billion in China (including Hong Kong). Other countries higher than EUR 500 million are United Kingdom EUR 799 million, Japan EUR 664 million EUR 595 million 569 million 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 EUR 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 2021 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, 2021, for the coming year, whereby the re-insurance captive retentions remained unchanged. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events [Abstract] | |
Subsequent events [Text Block] | 31 Vesper Medical On January 11, 2022 Philips completed the acquisition of Vesper Medical Inc, a US-based medical technology company that develops minimally-invasive peripheral vascular devices. The acquisition is part of Philips’ Image Guide Therapy segment and expand Philips’ portfolio of diagnostic and therapeutic devices with an advanced venous stent portfolio for the treatment of deep venous disease. The upfront purchase price paid involved an amount of EUR 227 million. Due to the recent closing date, additional IFRS disclosures cannot be made until the initial accounting for the business combination, including contingent consideration, has been completed. Cardiologs On January 7, 2022 Philips completed the acquisition of Cardiologs Technologies SAS, a France-based medical technology company focused on transforming cardiac diagnostics using artificial intelligence (AI) and cloud technology. The acquisition is part of the Connected Care segment. The acquisition is regarded as not material for disclosure purposes. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 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 on a going concern basis. |
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. See note COVID-19 The areas where the most significant judgments and estimates are made are goodwill, deferred tax asset recoverability, recognition and measurement of provisions, valuation of inventories, 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] | Climate-related matters In preparing the Consolidated Financial Statements management has considered the impact of climate change, specifically the financial impact of Philips meeting its internal and external climate related aims, the potential impact of climate related risks and the costs incurred to pro-actively manage such risks. These considerations did not have a material impact on the financial reporting judgements, estimates or assumptions. The specific financial impacts considered include, for example: specific climate mitigation measures, such as the use of lower carbon energy sources, the costs of developing more sustainable product offerings and expenses incurred to mitigate against the impact of extreme weather conditions. 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 item mentioned below. In addition, certain prior-year amounts have been reclassified to conform to the current year presentation. Domestic Appliances Prior-period financial statements have been restated for the treatment of the Domestic Appliances business as a discontinued operation, see further information in Discontinued operations and assets classified as held for sale Acquisitions and divestments |
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, where available. The curves are based on the Mercer Yield Curve methodology, which uses data of corporate bonds rated AA or equivalent. For the other plans the Mercer Yield Curve/Mercer Methodology has also been used taking into account the cash flows as much as possible in case there is a deep market in corporate bonds. For plans in countries without a deep corporate bond market, the discount rate is based on government bonds 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. In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities or, alternatively, a 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 assets and liabilities. Such changes to tax assets and 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, it is probable that an outflow of economic benefits will be required to settle the obligation and , the amount can be estimated reliably. 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: Field action provision –This provision relates to the Philips Respironics voluntary recall notification in the United States and field safety notice outside the United States for certain sleep and respiratory care products related to the polyester-based polyurethane (PE-PUR) sound abatement foam in these devices 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, and include costs to execute field change orders. The field action provision in connection with the Philips Respironics voluntary recall notification is shown separately above. Environmental provisions – The environmental provisions relate to cost of environmental remediation in various countries. 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. Legal provisions – Legal provisions relate to legal proceedings, including regulatory and other governmental proceedings. 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 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 right-of-use assets are subsequently accounted for using principles for property, plant and equipment. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the Consolidated statements of income. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture considered to be of low value (i.e. less than EUR 5,000). 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 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 Cash flow statement supplementary information For disclosure on sale and leaseback transactions, refer to Details of treasury and 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 and 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 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 and 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. 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 2021 The company applies, for the first time, certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2021. 2020-8 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform – Phase 2 The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients: A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component These amendments had no material impact on the consolidated financial statements of the company. The status of the IBOR transition project and the exposure to IBOR have been disclosed in Details of treasury and other financial risks 2021-3 Amendments to IFRS 16 Leases – Covid-19 related rent concessions beyond June 30, 2021 On May 28, 2020, the IASB issued Covid-19-Related Rent Concessions - amendment to IFRS 16 Leases The amendments provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the Covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification. The amendment was intended to apply until June 30, 2021, but as the impact of the Covid-19 pandemic is continuing, on March 31, 2021, the IASB extended the period of application of the practical expedient to June 30, 2022.The amendment applies to annual reporting periods beginning on or after April 1, 2021. This amendment had no material impact on the consolidated financial statements of the company. IFRS accounting standards to be adopted from 2022 onwards A number of amendments to existing standards have been issued and are mandatory for the company beginning on or after January 1, 2022, 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. |
Information by segment and ma_2
Information by segment and main country (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Information by segment and main country [Abstract] | |
Information by segment and main country - Information on income statements [Text Block] | Philips Group Information on income statements in millions of EUR sales sales including intercompany depreciation and amortization 1 Adjusted EBITA 2 3 2021 Diagnosis & Treatment 4 8,635 8,846 (459) 1,071 Connected Care 4,593 4,638 (384) 488 Personal Health 3,410 3,441 (130) 599 Other 519 610 (350) (105) Inter-segment eliminations (379) Philips Group 17,156 17,156 (1,323) 2,054 2020 Diagnosis & Treatment 8,175 8,289 (536) 818 Connected Care 5,568 5,644 (415) 1,198 Personal Health 3,173 3,172 (144) 426 Other 396 479 (368) (165) Inter-segment eliminations (272) Philips Group 17,313 17,313 (1,462) 2,277 2019 Diagnosis & Treatment 8,485 8,576 (564) 1,078 Connected Care 4,674 4,705 (326) 620 Personal Health 3,516 3,511 (140) 672 Other 472 556 (313) (100) Inter-segment eliminations (201) Philips Group 17,147 17,147 (1,343) 2,270 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 following table. 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 2021 they received a corporate funding out of segment Other of EUR 16 million (2020: EUR 38 million, 2019: EUR 54 million) to support them during their emerging idea-to-market business phase. |
Information by segment and main country - Reconciliation from net income to Adjusted EBITA [Text Block] | Philips Group Reconciliation from net income to Adjusted EBITA 1 In millions of EUR Philips Group Diagnosis & Treatment Connected Care Personal Health Other 2021 Net Income 3,323 Discontinued operations, net of income taxes (2,711) Income tax expense (103) Investments in associates, net of income taxes 4 Financial expenses 188 Financial income (149) Income from operations 553 941 (732) 585 (242) Amortization and impairment of intangible assets 322 153 148 15 6 Impairment of goodwill 15 2 13 EBITA 1 890 1,097 (571) 600 (236) Restructuring and acquisition-related charges 95 7 93 (1) (5) Other items 1,069 (32) 965 - 136 Adjusted EBITA 1 2,054 1,071 488 599 (105) 2020 Net Income 1,195 Discontinued operations, net of income taxes (196) Income tax expense 212 Investments in associates, net of income taxes 9 Financial expenses 202 Financial income (158) Income from operations 1,264 497 711 356 (300) Amortization and impairment of intangible assets 377 209 134 16 18 Impairment of goodwill 144 - 144 EBITA 1 1,784 706 989 371 (282) Restructuring and acquisition-related charges 195 29 97 31 37 Other items 299 83 112 24 81 Adjusted EBITA 1 2,277 818 1,198 426 (165) 2019 Net Income 1,173 Discontinued operations, net of income taxes (183) Income tax expense 258 Investments in associates, net of income taxes (1) Financial expenses 233 Financial income (114) Income from operations 1,366 660 269 589 (152) Amortization and impairment of intangible assets 344 177 141 18 8 Impairment of goodwill 97 19 78 EBITA 1 1,807 856 488 607 (144) Restructuring and acquisition-related charges 310 149 64 42 54 Other items 153 73 67 23 (11) Adjusted EBITA 1 2,270 1,078 620 672 (100) 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 - Main countries [Text Block] | Philips Group Main countries in millions of EUR sales 1 tangible and intangible assets 2 2021 Netherlands 570 1,934 United States 6,420 12,615 China 2,335 283 Japan 1,073 480 Germany 839 305 United Kingdom 481 567 France 397 49 Other countries 5,040 753 Total main countries 17,156 16,986 2020 Netherlands 404 1,926 United States 6,580 9,080 China 2,319 313 Japan 1,113 511 Germany 980 302 United Kingdom 509 545 Italy 383 111 Other countries 5,024 906 Total main countries 17,313 13,694 2019 Netherlands 391 2,148 United States 6,626 9,864 China 2,427 340 Japan 1,185 550 Germany 805 308 United Kingdom 436 611 France 380 46 Other countries 4,898 1,119 Total main countries 17,147 14,986 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, 2021 | |
Discontinued operations and assets classified as held for sale [Abstract] | |
Discontinued operations and assets classified as held for sale - Discontinued operations, net of income taxes [Text Block] | Philips Group Discontinued operations, net of income taxes in millions of EUR 2019 2020 2021 Domestic Appliances 202 206 2,698 Other (19) (10) 13 Discontinued operations, net of income taxes 183 196 2,711 |
Discontinued operations and assets classified as held for sale - Results of Domestic Appliances in millions of EUR [Text Block] | Philips Group Results of Domestic Appliances in millions of EUR January to December 2019 2020 2021 Sales 2,335 2,222 1,516 Costs and expenses (2,054) (1,944) (1,322) Income from operations 280 279 194 Result on the sale of discontinued operations 3,241 Income before tax 280 279 3,435 Income tax expense 1 (79) (72) 6 Income tax related the sale of discontinued operations (743) Results from discontinued operations 202 206 2,698 1) The income tax expense from discontinued operations is calculated based on the separate return method, as if Domestic Appliances was filing its own separate tax returns. |
Discontinued operations and assets classified as held for sale - Net cash provided by (used for) Discontinued operations in millions of EUR [Text Block] | Net cash provided by (used for) Discontinued operations in millions of EUR 2019 2020 2021 Net cash provided by (used for) operating activities 111 129 85 Net cash provided by (used for) investing activities (14) 3,319 Net cash provided by (used for) discontinued operations 98 129 3,403 |
Acquisitions and divestments (T
Acquisitions and divestments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions and divestments [Abstract] | |
Acquisitions and divestments - Opening balance sheet [Text Block] | Opening balance sheet in millions of EUR At acquisition date BioTelemetry Capsule Technologies Assets Intangible assets excluding goodwill 623 217 Property, plant and equipment 42 11 Other non-current assets 48 - Deferred tax assets 78 14 Inventories 11 11 Receivables and other current assets 75 97 Cash 205 19 Total Assets 1,083 368 Liabilities Accounts payable and other payables (278) (98) Deferred tax liabilities (160) (46) Long-term liabilities (69) (11) Acquired provision for contingent considerations (16) Total Liabilities (523) (155) Total identifiable net assets at fair value 560 214 Goodwill arising on acquisition 1,776 325 Purchase consideration transferred 2,337 539 Intact Vascular Opening Balance sheet in millions of EUR at acquisition date Assets Intangible assets excluding goodwill 169 Deferred tax assets 24 Inventories 2 Receivables and other current assets 1 Cash 10 Total Assets 207 Liabilities Accounts payable and other payables (2) Deferred tax liabilities (42) Total Liabilities (44) Total identifiable net assets at fair value 163 Goodwill arising on acquisition 148 Total purchase on acquisition 311 Of which: Purchase consideration transferred (241) Provision for contingent consideration (70) |
Interests in entities (Tables)
Interests in entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interests in entities [Abstract] | |
Interests in entities - Interests in group companies [Text Block] | Philips Group Interests in group companies in alphabetical order by country 2021 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips GmbH Germany Philips Medizin Systeme Böblingen GmbH Germany Philips Medical Systems Technologies Ltd. Israel Philips India Limited India Philips Japan, Ltd. Japan Philips Consumer Lifestyle B.V. Netherlands Philips Medical Systems Nederland B.V. Netherlands ATL International LLC United States AllParts Medical LLC United States Discus Holdings LLC United States Philips Healthcare Informatics Inc. United States Philips North America LLC United States Philips Oral Healthcare LLC United States Philips USA Export Corporation United States Spectranetics LLC United States |
Income from operations (Tables)
Income from operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income from operations [Abstract] | |
Income from operations - Sales and costs by nature [Text Block] | Philips Group Sales and costs by nature in millions of EUR 2019 2020 2021 Sales 17,147 17,313 17,156 Costs of materials used (4,197) (4,221) (4,142) Employee benefit expenses (6,097) (6,289) (6,246) Depreciation and amortization 1 (1,343) (1,462) (1,323) Shipping and handling (509) (554) (645) Advertising and promotion (741) (696) (752) Lease expense 2 (50) (34) (19) Other operational costs 3 4 (2,811) (2,741) (3,524) Other business income (expenses) (33) (51) 48 Income from operations 1,366 1,264 553 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2) Lease expense relates to short-term and low value leases. 3) 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 104 million government grants recognized in 2021 (2020: EUR 98 million 2019: EUR 87 million). The grants mainly relate to research and development activities and business development. 4) The significant increase in other operational costs 2021 versus 2020 is mainly due to the field action provision. For more details on the field action provision, please refer to Provisions |
Income from operations - Sales composition [Text Block] | Philips Group Sales composition in millions of EUR 2019 2020 2021 Goods 12,476 12,491 11,981 Services 3,811 4,058 4,374 Royalties 381 301 383 Total sales from contracts with customers 16,668 16,851 16,738 Other sources 1 479 462 418 Sales 17,147 17,313 17,156 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 million (2020: EUR 325 million 2019: EUR 307 million) |
Income from operations - Disaggregation of Sales per segment [Text Block] | Philips Group Disaggregation of Sales per segment in millions of EUR 2021 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 5,407 3,177 8,583 52 8,635 Connected Care 3,135 1,090 4,227 366 4,593 Personal Health 3,403 6 3,410 3,410 Other 195 323 518 - 519 Philips Group 12,142 4,596 16,738 418 17,156 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per segment in millions of EUR 2020 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 5,132 2,998 8,129 46 8,175 Connected Care 4,208 943 5,152 417 5,568 Personal Health 3,170 4 3,173 3,173 Other 69 327 396 - 396 Philips Group 12,580 4,272 16,851 462 17,313 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 325 million 2) Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per segment in millions of EUR 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 2,989 8,417 68 8,485 Connected Care 3,545 718 4,263 411 4,674 Personal Health 3,513 3 3,516 3,516 Other 168 303 472 - 472 Philips Group 12,655 4,013 16,668 479 17,147 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. |
Income from operations - Disaggregation of Sales per geographical cluster [Text Block] | Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2021 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 2,537 1,087 3,624 21 3,645 North America 4,427 2,268 6,695 86 6,781 Other mature geographies 1,000 386 1,386 309 1,694 Total mature geographies 7,964 3,741 11,705 415 12,120 Growth geographies 4,178 856 5,033 3 5,036 Sales 12,142 4,596 16,738 418 17,156 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 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 2020 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 2,747 936 3,682 19 3,702 North America 4,654 2,135 6,789 95 6,884 Other mature geographies 1,035 373 1,408 342 1,750 Total mature geographies 8,435 3,444 11,879 457 12,336 Growth geographies 4,145 828 4,972 5 4,977 Sales 12,580 4,272 16,851 462 17,313 1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 325 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 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 2,359 931 3,290 38 3,328 North America 4,901 1,889 6,789 114 6,904 Other mature geographies 1,125 357 1,482 322 1,804 Total mature geographies 8,385 3,176 11,561 474 12,036 Growth geographies 4,270 837 5,107 5 5,112 Sales 12,655 4,013 16,668 479 17,147 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. |
Income from operations - Employee benefit expenses [Text Block] | Philips Group Employee benefit expenses in millions of EUR 2019 2020 2021 Salaries and wages 1 5,080 5,204 5,129 Post-employment benefits costs 370 418 396 Other social security and similar charges: Required by law 537 556 529 Voluntary 111 111 192 Employee benefit expenses 6,097 6,289 6,246 1) Salaries and wages includes EUR 115 million (2020: EUR 119 million, 2019: EUR 103 million) of share-based compensation expenses. |
Income from operations - Employees [Text Block] | Philips Group Employees in FTEs 2019 2020 2021 Production 31,222 35,482 38,618 Research & development 11,669 10,812 10,751 Other 22,924 22,474 22,543 Employees 65,815 68,769 71,912 3rd party workers 5,614 4,998 4,533 Philips Group 71,429 73,767 76,445 |
Income from operations - Employees per geographical location [Text Block] | Philips Group Employees per geographical location in FTEs 2019 2020 2021 Netherlands 11,252 11,146 11,142 Other countries 60,177 62,621 65,303 Philips Group 71,429 73,767 76,445 |
Income from operations - Depreciation and amortization [Text Block] | Philips Group Depreciation and amortization 1 in millions of EUR 2019 2020 2021 Depreciation of property, plant and equipment 611 691 630 Amortization of software 66 76 88 Amortization of other intangible assets 344 377 322 Amortization of development costs 323 319 284 Depreciation and amortization 1,343 1,462 1,323 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations - Agreed fees [Text Block] | Philips Group Agreed fees in millions of EUR 2019 2020 2021 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 8.4 6.2 14.6 9.0 5.6 14.6 9.7 5.3 15.0 consolidated financial statements 8.4 3.4 11.8 9.0 2.9 11.9 9.7 2.7 12.4 statutory financial statements 2.8 2.8 2.7 2.7 2.6 2.6 Audit-related fees 2 0.5 0.3 0.8 2.2 0.5 2.7 0.6 0.2 0.8 divestment 1.5 0.2 1.7 sustainability assurance 0.4 0.4 0.5 0.5 0.5 0.5 other 0.1 0.3 0.4 0.2 0.3 0.5 0.1 0.2 0.3 Tax fees All other fees Fees 8.9 6.5 15.4 11.2 6.1 17.3 10.3 5.5 15.8 1) Ernst & Young Accountants LLP 2) Also known as Assurance fees |
Income from operations - Other business income (expenses) [Text Block] | Philips Group Other business income (expenses) in millions of EUR 2019 2020 2021 Result on disposal of businesses: income 69 - - expense (1) - (75) Result on disposal of fixed assets: income 4 2 24 expense - - (5) Result on other remaining businesses: income 81 120 161 expense (88) (30) (43) Impairment of goodwill (97) (144) (15) Other business income (expense) (33) (51) 48 Total other business income 154 122 186 Total other business expense (186) (173) (138) |
Financial income and expenses (
Financial income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial income and expenses [Abstract] | |
Financial income and expenses - Financial income and expenses [Text Block] | Philips Group Financial income and expenses in millions of EUR 2019 2020 2021 Interest income 25 13 18 Interest income from loans and receivables 10 8 7 Interest income from cash and cash equivalents 15 5 11 Dividend income from financial assets 52 3 2 Net gains from disposal of financial assets 2 2 - Net change in fair value of financial assets at fair value through profit or loss 17 129 95 Other financial income 17 12 33 Financial income 114 158 149 Interest expense (196) (173) (159) Interest on debt and borrowings (167) (154) (147) Finance charges under lease contract (6) (6) (5) Interest expenses - pensions (22) (13) (8) Provision-related accretion and interest (23) (22) (14) Net foreign exchange losses (2) 4 - Other financial expenses (12) (11) (15) Financial expense (233) (202) (188) Financial income and expenses (119) (44) (39) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income taxes [Abstract] | |
Income taxes - Income tax expense [Text Block] | Philips Group Income tax expense in millions of EUR 2019 2020 2021 Income before taxes of continuing operations 1 1,247 1,220 513 Current tax (expense) benefit (251) (380) (298) Deferred tax (expense) benefit (8) 167 401 Income tax expense of continuing operations (258) (212) 103 1) Income before tax excludes the result of investments in associates. |
Income taxes - Current income tax expense [Text Block] | Philips Group Current income tax expense in millions of EUR 2019 2020 2021 Current year tax (expense) benefit (248) (390) (291) Prior year tax (expense) benefit (3) 10 (7) Current tax (expense) (251) (380) (298) |
Income taxes - Deferred income tax expense [Text Block] | Philips Group Deferred income tax expense In millions of EUR 2019 2020 2021 Changes to recognition of tax loss and credit carry forwards 56 6 129 Changes to recognition of temporary differences (32) 19 (1) Prior year tax (expense) benefit (9) (8) 20 Tax rate changes 4 12 10 Origination and reversal of temporary differences, tax losses and tax credits (27) 138 245 Deferred tax (expense) benefit (8) 167 401 |
Income taxes - Effective income tax rate [Text Block] | Philips Group Effective income tax rate in % 2019 2020 2021 Weighted average statutory income tax rate in % 25.3 25.2 22.7 Recognition of previously unrecognized tax loss and credit carryforwards (4.9) (0.5) (26.9) Unrecognized tax loss and credit carryforwards 0.1 0.0 1.9 Changes to recognition of temporary differences 2.6 (1.6) 0.3 Non-taxable income and tax incentives (11.2) (12.9) (40.6) Non-deductible expenses 6.1 7.0 19.3 Withholding and other taxes 4.1 0.6 7.2 Tax rate changes (0.2) (1.0) (1.9) Prior year tax 0.7 (0.2) (2.4) Tax expense (benefit) due to change in uncertain tax treatments (2.0) 1.2 4.4 Others, net 0.2 (0.2) (4.0) Effective income tax rate 20.8 17.6 (20.0) |
Income taxes - Deferred tax assets and liabilities [Text Block] | Philips Group Deferred tax assets and liabilities in millions of EUR Balance as of January 1, 2021 recognized in income statement other 1 Balance as of December 31, 2021 Assets Liabilities Intangible assets 240 535 (188) 587 716 (130) Property, plant and equipment 32 13 (16) 29 55 (26) Inventories 313 31 28 372 381 (9) Other assets 97 (30) 1 68 112 (43) Pensions and other employee benefits 245 (45) (21) 180 182 (2) Other liabilities 384 91 25 499 584 (84) Deferred tax assets on tax loss carryforwards 449 (194) 143 398 398 Set-off deferred tax positions (211) 211 Net deferred tax assets 1,761 401 (28) 2,134 2,216 (83) 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 Balance as of January 1, 2020 recognized in income statement other 1 Balance as of December 31, 2020 Assets Liabilities Intangible assets 132 147 (39) 240 379 (140) Property, plant and equipment 58 (22) (4) 32 65 (32) Inventories 252 77 (16) 313 317 (4) Other assets 56 37 4 97 135 (38) Pensions and other employee benefits 269 4 (27) 245 251 (6) Other liabilities 334 81 (30) 384 436 (52) Deferred tax assets on tax loss carryforwards 620 (133) (38) 449 449 Set-off deferred tax positions (212) 212 Net deferred tax assets 1,721 190 (151) 1,761 1,820 (59) 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 - 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, 2020 Unrecognized balance as of December 31, 2020 Total Balance as of December 31, 2021 Unrecognized balance as of December 31, 2021 Within 1 year 5 1 1,593 1,592 1 to 2 years 1,546 1,541 6 - 2 to 3 years 13 3 9 - 3 to 4 years 235 - 7 - 4 to 5 years 23 - 18 - Later 1,026 24 751 21 Unlimited 1,428 951 1,567 934 Total 4,276 2,520 3,951 2,547 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [Abstract] | |
Earnings per share - Earnings per share [Text Block] | Philips Group Earnings per share in millions of EUR unless otherwise stated 1 2019 2020 2021 Income from continuing operations 990 999 612 Income (loss) attributable to non-controlling interest, from continuing operations 5 8 4 Income from continuing operations attributable to shareholders 985 991 608 Income from Discontinued operations 183 196 2,711 Income from Discontinued operations attributable to shareholders 183 196 2,711 Net income attributable to shareholders 1,167 1,187 3,319 Weighted average number of common shares outstanding (after deduction of treasury shares) during the year 921,062,109 907,721,150 904,271,675 Plus incremental shares from assumed conversions of: Options 1,288,001 757,622 387,125 Performance shares 5,896,049 5,561,501 2,548,891 Restricted share rights 2,524,606 2,584,728 2,376,736 Forward contracts 70,329 Dilutive potential common shares 9,708,656 8,903,851 5,383,080 Diluted weighted average number of shares (after deduction of treasury shares) during the year 930,770,765 916,625,001 909,654,754 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 1.07 1.09 0.67 Income from Discontinued operations attributable to shareholders 0.20 0.22 3.00 Net income attributable to shareholders 1.27 1.31 3.67 Diluted earnings per common share in EUR 2 Income from continuing operations attributable to shareholders 1.06 1.08 0.67 Income from Discontinued operations attributable to shareholders 0.20 0.21 2.98 Net income attributable to shareholders 1.25 1.29 3.65 Dividend distributed per common share in euros 0.85 0.85 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, 2021 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment - Property, plant and equipment [Text Block] | Philips Group Property, plant and equipment in millions of EUR 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 January 1, 2021 Cost 1,076 1,147 1,506 199 1,572 213 261 1 4,415 1,560 Accumulated depreciation (539) (310) (1,028) (144) (1,185) (86) (2,752) (540) Book value 537 837 478 55 387 126 261 1 1,663 1,020 Change in book value: Capital expenditures 9 150 62 21 77 44 261 409 215 Assets available for use 72 2 110 117 3 (305) (5) 5 Acquisitions - 43 9 43 53 43 Depreciation (53) (157) (144) (32) (158) (63) (355) (252) Impairments (1) 1 (6) (5) (11) - - (18) (4) Transfer (to) from AHFS (87) (7) (16) (46) (1) (20) (170) (8) Reclassifications 6 - 2 (10) 2 1 (1) - 1 Translations differences and other 23 44 14 (2) 16 (4) 10 - 65 39 Total changes (31) 77 33 (18) 29 (20) (53) (1) (22) 38 Balance as of December 31, 2021 Cost 1,097 1,332 1,585 176 1,382 216 208 4,273 1,724 Accumulated depreciation (591) (418) (1,074) (139) (967) (109) (2,632) (666) Book value 506 914 511 37 415 107 208 1,641 1,058 Philips Group Property, plant and equipment in millions of EUR 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 January 1, 2020 Cost 876 1,355 1,531 251 1,549 232 323 1 4,279 1,839 Accumulated depreciation (395) (326) (1,055) (188) (1,184) (105) (2,634) (618) Book value 481 1,029 476 63 365 127 323 1 1,645 1,221 Change in book value: Capital expenditures 28 80 60 53 84 97 399 2 571 231 Assets available for use 117 2 162 160 3 (441) (2) (2) 2 Depreciation (47) (161) (167) (55) (180) (73) (394) (289) Impairments (3) (5) (13) (4) (16) - - (32) (10) Reclassifications (64) (7) (7) (1) (21) (3) (11) (91) Translations differences and other (39) (43) (33) 5 (25) (6) (17) - (114) (44) Total changes 56 (192) 2 (8) 22 (1) (62) 17 (201) Balance as of December 31, 2020 Cost 1,076 1,147 1,506 199 1,572 213 261 1 4,415 1,560 Accumulated depreciation (539) (310) (1,028) (144) (1,185) (86) (2,752) (540) Book value 537 837 478 55 387 126 261 1 1,663 1,020 |
Property, plant and equipment - 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, 2021 | |
Goodwill [Abstract] | |
Goodwill - Goodwill [Text Block] | Philips Group Goodwill in millions EUR 2020 2021 Balance as of January 1: Cost 10,182 9,094 Impairments (1,528) (1,080) Book value 8,654 8,014 Changes in book value: Acquisitions 189 2,095 Impairments (144) (15) Divestments and transfers to assets classified as held for sale (12) (189) Translation differences and other (673) 732 Balance as of December 31: Cost 9,094 11,793 Impairments (1,080) (1,156) Book value 8,014 10,637 |
Goodwill - Goodwill allocated to the cash-generating units [Text Block] | Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2020 2021 Ambulatory Monitoring & Diagnostics 1 1,897 Hospital Patient Monitoring 2 1,246 1,663 Image-Guided Therapy 2,610 2,802 Sleep & Respiratory Care 1,915 2,031 Other (units carrying a non-significant goodwill balance) 2,244 2,245 Book value 8,014 10,637 1) Includes provisional goodwill related to the acquisition of BioTelemetry, see Acquisitions and divestments 2) Previously named Monitoring & Analytics. Includes provisional goodwill related to the acquisition of Capsule Technologies, see Acquisitions and divestments |
Goodwill - Key assumptions [Text Block] | Philips Group Key assumptions 2021 compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Ambulatory Monitoring & Diagnostics 24.5% 11.9% 2.5% 7.3% Hospital Patient Monitoring 4 5.4% 3.4% 2.5% 7.8% Image-Guided Therapy 10.2% 5.4% 2.5% 8.9% Sleep & Respiratory Care 9.2% 5.0% 2.5% 9.2% 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 4) Previously named Monitoring & Analytics. Philips Group Key assumptions 2020 compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Hospital Patient Monitoring 4 (0.3)% 3.3% 2.5% 9.4% Image-Guided Therapy 8.6% 4.9% 2.5% 9.0% Sleep & Respiratory Care (1.2)% 4.4% 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 4) Previously named Monitoring & Analytics. |
Intangible assets excluding g_2
Intangible assets excluding goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets excluding goodwill [Abstract] | |
Intangible assets excluding goodwill - Intangible assets excluding goodwill [Text Block] | Philips Group Intangible assets excluding goodwill in millions of EUR brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2021 Cost 556 2,036 2,434 2,519 480 723 135 8,883 Amortization/ impairments (437) (1,385) (1,565) (1,897) (83) (427) (91) (5,886) Book value 120 651 869 622 398 295 44 2,997 Changes in book value: Additions 9 1 261 117 2 392 Assets available for use 247 (247) - - - Acquisitions 62 544 235 - - 841 Amortization (21) (126) (114) (219) - (85) (3) (568) Impairments (3) (57) (51) (15) - - (126) Transfers to assets classified as held for sale (10) (3) (11) (17) (6) (34) (82) Translation differences and other 12 80 69 17 23 (7) 1 195 Total changes 42 492 131 (22) 17 (8) 1 653 Balance as of December 31, 2021 Cost 644 2,590 2,605 2,701 505 754 146 9,944 Amortization/ impairments (481) (1,447) (1,605) (2,102) (91) (467) (101) (6,294) Book Value 162 1,143 1,000 599 414 287 44 3,650 Philips Group Intangible assets excluding goodwill in millions of EUR brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2020 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 Changes in book value: Additions 1 12 - 305 127 2 449 Assets available for use 373 (374) - - Acquisitions 8 1 175 - - 185 Amortization (26) (121) (103) (221) - (84) (4) (560) Impairments - (1) (118) (62) (44) (2) (8) (235) Transfers to assets classified as held for sale (33) (55) (1) (8) (2) (3) (102) Translation differences and other (13) (64) (58) (53) (10) - (6) (204) Total changes (65) (239) (92) 30 (125) 38 (15) (468) Balance as of December 31, 2020 Cost 556 2,036 2,434 2,519 480 723 135 8,883 Amortization/ impairments (437) (1,385) (1,565) (1,897) (83) (427) (91) (5,886) Book Value 120 651 869 622 398 295 44 2,997 |
Intangible assets excluding goodwill - 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 3-10 |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other financial assets [Abstract] | |
Other financial assets - Other non-current financial assets [Text Block] | Philips Group Other non-current financial assets in millions of EUR 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, 2021 248 146 37 430 Changes: Acquisitions/additions 54 59 10 123 Sales/redemptions/reductions (122) 0 (3) (126) Value adjustment through OCI - (43) - (43) Value adjustment through P&L 95 - - 95 Translation differences and other 8 19 2 29 Reclassifications (1) 120 2 122 Balance as of December 31, 2021 283 300 47 630 Philips Group Other non-current financial assets in millions of EUR 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, 2020 136 72 40 248 Changes: Acquisitions/additions 44 82 4 131 Sales/redemptions/reductions (59) (3) (2) (65) Value adjustment through OCI - 3 - 3 Value adjustment through P&L 133 - - 133 Translation differences and other (6) (5) (6) (17) Reclassifications - (3) - (3) Balance as of December 31, 2020 248 146 37 430 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Inventories - Inventories [Text Block] | Philips Group Inventories in millions of EUR 2020 2021 Raw materials and supplies 992 1,143 Work in process 537 646 Finished goods 1,464 1,660 Inventories 2,993 3,450 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Receivables - Accounts receivables-net [Text Block] | Philips Group Accounts receivables-net in millions of EUR 2020 2021 Diagnosis & Treatment 1,653 1,759 Connected Care 1,124 980 Personal Health 1,017 575 Other 133 245 Accounts receivable-net 3,928 3,559 |
Receivables - Aging analysis [Text Block] | Philips Group Aging analysis in millions of EUR 2020 2021 current 3,413 3,075 overdue 1-30 days 189 160 overdue 31-180 days 224 245 overdue > 180 days 102 79 Accounts receivable-net 3,928 3,559 |
Receivables - Allowance for accounts receivable [Text Block] | Philips Group Allowance for accounts receivable in millions of EUR 2020 2021 Balance as of January 1 211 195 Additions charged to expense 19 4 Deductions from allowance 1 (17) (17) Transfer to assets held for sale (1) (8) Other movements (16) 16 Balance as of December 31 195 190 1) Write-offs for which an allowance was previously provided. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity - Outstanding number of shares [Text Block] | Philips Group Outstanding number of shares 2019 2020 2021 Balance as of January 1 914,184,087 890,973,790 905,128,293 Dividend distributed 9,079,538 18,080,198 6,345,968 Purchase of treasury shares (40,390,495) (8,669,622) (45,486,392) Delivery of treasury shares 8,100,660 4,695,170 4,194,577 Issuance of new shares 48,757 Balance as of December 31 890,973,790 905,128,293 870,182,445 |
Equity - Employee option and share plan transactions [Text Block] | Philips Group Employee option and share plan transactions 2019 2020 2021 Shares acquired 5,497,675 5,351,411 3,996,576 Average market price EUR 34.25 EUR 33.81 EUR 36.15 Amount paid EUR 188 million EUR 181 million EUR 144 million Shares delivered 8,100,660 4,695,170 4,194,577 Average price (FIFO) EUR 32.87 EUR 34.35 EUR 34.14 Cost of delivered shares EUR 266 million EUR 161 million EUR 143 million Total shares in treasury at year-end 5,268,467 5,924,708 5,726,708 Total cost EUR 180 million EUR 199 million EUR 201 million |
Equity - Share capital transactions [Text Block] | Philips Group Share capital transactions 2019 2020 2021 Shares acquired 34,892,820 3,318,211 41,489,816 Average market price EUR 34.29 EUR 39.21 EUR 36.22 Amount paid EUR 1,196 million EUR 130 million EUR 1,503 million Cancellation of treasury shares (shares) 38,541,356 3,809,675 33,500,000 Cancellation of treasury shares (EUR) EUR 1,316 million EUR 152 million EUR 1,216 million Total shares in treasury at year-end 491,464 7,989,816 Total cost EUR 22 million EUR 287 million |
Equity - 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 2019 2020 2021 Long-term debt 4,939 5,705 6,473 Short-term debt 508 1,229 506 Total debt 5,447 6,934 6,980 Cash and cash equivalents 1,425 3,226 2,303 Net debt 1 4,022 3,708 4,676 Shareholders' equity 12,597 11,870 14,438 Non-controlling interests 28 31 36 Group equity 12,625 11,901 14,475 Net debt and group equity ratio 1 24:76 24:76 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 - Adjusted income from continuing operations attributable to shareholders [Text Block] | Philips Group Adjusted income from continuing operations attributable to shareholders 1 2 2019 2020 2021 Net income 1,173 1,195 3,323 Discontinued operations, net of income taxes (183) (196) (2,711) Income from continuing operations 990 999 612 Continuing operations non-controlling interests (5) (8) (4) Income from continuing operations attributable to shareholders 2 985 991 608 Adjustments for: Amortization and impairment of acquired intangible assets 344 377 322 Impairment of goodwill 97 144 15 Restructuring costs and acquisition-related charges 310 195 95 Other items 153 299 1,069 Net finance income/expenses 13 (125) (84) Tax impact of adjusted items and tax only adjusting items (280) (285) (527) Adjusted Income from continuing operations attributable to shareholders 1 2 1,622 1,594 1,497 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, 2021 | |
Debt [Abstract] | |
Debt - Long-term debt [Text Block] | Philips Group Long-term debt in millions of EUR unless otherwise stated amount outstanding in 2021 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 1,313 1,313 255 1,058 15.1 6.3% EUR bonds 3,233 3,233 2,242 991 4.4 1.0% Forward contracts 934 196 738 738 1.6 Lease liability 1,220 257 963 580 383 4.2 2.1% Bank borrowings 203 1 202 202 3.2 0.1% Other long-term debt 30 5 26 18 8 8.6 3.5% Long-term debt 6,933 459 6,473 4,034 2,439 6.0 2.1% Philips Group Long-term debt in millions of EUR unless otherwise stated amount outstanding in 2020 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 1,210 1,210 122 1,088 16.1 6.3% EUR bonds 3,229 3,229 1,494 1,735 5.4 1.0% Forward contracts 982 869 113 113 0.9 Lease liability 1,216 267 948 596 352 3.9 2.1% Bank borrowings 205 1 203 3 200 4.1 0.2% Other long-term debt 16 15 1.0 0.0% Long-term debt 6,857 1,153 5,705 2,329 3,376 6.3 2.0% |
Debt - Unsecured Bonds [Text Block] | Philips Group Unsecured Bonds in millions of EUR unless otherwise stated effective rate 2020 2021 Unsecured EUR Bonds Due 9/06/2023; 1/2% 0.634% 500 500 Due 5/02/2024; 3/4% 0.861% 500 500 Due 22/05/2026; 1/2% 0.608% 750 750 Due 5/02/2028; 1 3/8% 1.523% 500 500 Due 30/03/2025; 1 3/8% 1.509% 500 500 Due 30/03/2030; 2% 2.128% 500 500 Unsecured USD Bonds Due 5/15/2025; 7 3/4% 7.429% 51 56 Due 6/01/2026; 7 1/5% 6.885% 111 120 Due 5/15/2025; 7 1/8% 6.794% 68 74 Due 11/03/2038; 6 7/8% 7.210% 591 641 Due 3/15/2042; 5% 5.273% 407 441 Adjustments 1 (39) (37) Unsecured Bonds 4,439 4,545 1) Adjustments related to both EUR and USD bonds and concern bond discounts, premium and transaction costs. |
Debt - Lease liabilities [Text Block] | Philips Group Lease liabilities in millions of EUR 2020 2021 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 290 23 267 280 22 257 Between one and five years 651 55 596 636 56 580 More than five years 384 31 352 417 34 383 Lease liability 1,325 109 1,216 1,333 113 1,220 |
Debt - Short-term debt [Text Block] | Philips Group Short-term debt in millions of EUR 2020 2021 Short-term bank borrowings 76 47 Current portion of long-term debt 1,153 459 Short-term debt 1,229 506 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Provisions [Abstract] | |
Provisions - Provisions [Text Block] | Philips Group Provisions in millions of EUR 2020 2021 long-term short-term total long-term short-term total Post-employment benefit 1 751 751 659 659 Respironics field action provision 52 525 577 Product warranty 28 139 167 32 207 238 Environmental provisions 162 21 183 99 26 124 Restructuring-related provisions 17 100 117 8 58 66 Legal provisions 19 53 72 53 39 91 Contingent consideration provisions 203 114 318 156 52 208 Other provisions 279 93 372 257 92 349 Provisions 1,458 522 1,980 1,315 998 2,313 1) For more details refer to Post-employment benefits |
Provisions - Field action provision [Text Block] | Philips Group Field action provision in millions of EUR 2021 Additions 719 Utilizations (175) Translation differences 33 Balance as of December 31 577 |
Provisions - Main assumptions [Text Block] | Philips Group Main assumptions in millions of EUR unless otherwise stated Increase (decrease) in provision Assumption Estimate Increase individual assumption by 10% Decrease individual assumption by 10% Total quantity of devices 5.2 million 63 (63) Replacement share 46% 44 (44) |
Provisions - Provisions for assurance-type product warranty [Text Block] | Philips Group Provisions for assurance-type product warranty in millions of EUR 2020 2021 Balance as of January 1 210 167 Additions 239 364 Utilizations (270) (265) Transfer to liabilities associated with assets held for sale (37) Translation differences and other (12) 10 Balance as of December 31 167 238 |
Provisions - Environmental provisions [Text Block] | Philips Group Environmental provisions in millions of EUR 2020 2021 Balance as of January 1 170 183 Additions 9 18 Utilizations (16) (15) Releases 0 (64) Changes in discount rate 37 (10) Accretion 3 3 Translation differences and other (19) 9 Balance as of December 31 183 124 |
Provisions - Restructuring-related provisions [Text Block] | Philips Group Restructuring-related provisions in millions of EUR Jan. 1, 2021 additions utilizations releases other changes Dec. 31, 2021 Diagnosis & Treatment 33 23 (19) (13) 1 26 Connected Care 17 16 (12) (4) - 17 Personal Health 28 6 (21) (6) 2 9 Other 38 10 (21) (16) 4 14 Philips Group 117 55 (73) (39) 6 66 |
Provisions - Restructuring-related provision [Text Block] | Philips Group Restructuring-related provision in millions of EUR Jan. 1, 2020 additions utilizations releases other changes Dec. 31, 2020 Diagnosis & Treatment 61 36 (47) (16) (1) 33 Connected Care 28 17 (21) (5) (3) 17 Personal Health 25 30 (22) (3) (1) 28 Other 41 35 (31) (7) - 38 Philips Group 156 118 (122) (32) (4) 117 |
Provisions - Legal provisions [Text Block] | Philips Group Legal provisions in millions of EUR 2020 2021 Balance as of January 1 55 72 Additions 72 43 Acquisitions 38 Utilizations (45) (17) Releases (6) (48) Accretion 1 1 Translation differences and other (5) 3 Balance as of December 31 72 91 |
Provisions - Contingent consideration provisions [Text Block] | Philips Group Contingent consideration provisions in millions of EUR 2020 2021 Balance as of January 1 354 318 Acquisitions 70 16 Utilizations (14) (48) Fair value changes (93) (78) Balance as of December 31 318 208 |
Provisions - Other provisions [Text Block] | Philips Group Other provisions in millions of EUR 2020 2021 Balance as of January 1 392 372 Additions 161 89 Utilizations (109) (87) Releases (49) (29) Accretion (1) (5) Translation differences and other (21) 9 Balance as of December 31 372 349 |
Post-employment benefits (Table
Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Post-employment benefits [Abstract] | |
Post-employment benefits - Post-employment benefits [Text Block] | Philips Group Post-employment benefits in millions of EUR Germany United States Other Countries Total 2020 2021 2020 2021 2020 2021 2020 2021 Present value of funded DBO (649) (606) (568) (558) (304) (206) (1,521) (1,370) Present value of unfunded DBO (344) (316) (141) (149) (147) (135) (633) (600) Total present value of DBO (993) (921) (709) (708) (451) (341) (2,153) (1,970) Fair value of plan assets 543 572 613 623 247 185 1,403 1,380 Net position (450) (349) (95) (84) (205) (157) (750) (590) |
Post-employment benefits - Classification net position [Text Block] | Philips Group Classification net position in millions of EUR Germany United States Other Countries Total 2020 2021 2020 2021 2020 2021 2020 2021 Total asset for plans in a surplus 3 46 65 1 46 69 Total liability for plans in a deficit (450) (352) (141) (149) (205) (157) (797) (659) Provisions for post-employment benefit plans under AHFS - - Net position (450) (349) (95) (84) (205) (157) (750) (590) |
Post-employment benefits - Pre-tax costs for post-employment benefits [Text Block] | Philips Group Pre-tax costs for post-employment benefits in millions of EUR 2019 2020 2021 Defined-benefit plans 56 74 36 - included in income from operations 32 59 28 - included in financial expense 22 13 8 - included in Discontinued operations 1 1 1 Defined-contribution plans 346 366 375 - included in income from operations 338 358 368 - included in Discontinued operations 8 8 7 Post-employment benefits costs 401 440 411 |
Post-employment benefits - Defined-benefit obligations [Text Block] | Philips Group Defined-benefit obligations in millions of EUR 2020 2021 Balance as of January 1 3,350 2,153 Service cost 39 36 Interest cost 71 33 Employee contributions 15 7 Actuarial (gains) / losses - demographic assumptions 16 3 - financial assumptions 163 (86) - experience adjustment 39 (6) (Negative) past service cost 2 (5) Settlements (1,185) (90) Benefits paid from plan (221) (95) Benefits paid directly by employer (35) (33) Translation differences and other (100) 52 Balance as of December 31 2,153 1,970 |
Post-employment benefits - Plan assets [Text Block] | Philips Group Plan assets in millions of EUR 2020 2021 Balance as of January 1 2,526 1,403 Interest income on plan assets 58 25 Admin expenses paid (1) (1) Return on plan assets excluding interest income 268 44 Employee contributions 15 7 Employer contributions 34 33 Settlements (1,205) (86) Benefits paid from plan (221) (96) Translation differences and other (71) 50 Balance as of December 31 1,403 1,380 |
Post-employment benefits - Plan assets allocation [Text Block] | Philips Group Plan assets allocation in millions of EUR 2020 2021 Assets quoted in active markets - Debt securities 782 790 - Equity securities - Other 175 195 Assets not quoted in active markets - Debt securities 7 1 - Equity securities 133 122 - Other 307 272 Total assets 1,403 1,380 |
Post-employment benefits - Assumptions used for defined-benefit obligations in Germany, the United States and the rest of the world [Text Block] | Philips Group Assumptions used for defined-benefit obligations in Germany, the United States and the rest of the world in % Germany United States Other Countries Total 2020 2021 2020 2021 2020 2021 2020 2021 Discount rate 0.6% 1.1% 2.3% 2.6% 2.2% 2.1% 1.5% 1.8% Inflation rate 1.6% 1.8% 2.0% 2.2% 1.7% 2.0% 1.7% 2.0% Salary increase 2.5% 2.5% 0.0% 0.0% 2.7% 2.9% 2.5% 2.6% |
Post-employment benefits - Sensitivity of key assumptions [Text Block] | Philips Group Sensitivity of key assumptions in millions of EUR 2020 2021 Increase Discount rate (1% movement) (226) (196) Inflation rate (1% movement) 86 99 Salary increase (1% movement) 16 19 Longevity 1 51 48 Decrease Discount rate (1% movement) 265 241 Inflation rate (1% movement) (78) (83) Salary increase (1% movement) (19) (18) 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% decrease in the assumed rates of mortality for the company’s major plans. A 10% decrease in assumed mortality rates equals improvement of life expectancy by 0.5 - 1 year. |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued liabilities [Abstract] | |
Accrued liabilities - Accrued liabilities [Text Block] | Philips Group Accrued liabilities in millions of EUR 2020 2021 Personnel-related costs: - Salaries and wages 614 566 - Accrued holiday entitlements 124 127 - Other personnel-related costs 78 108 Fixed-asset-related costs: - Gas, water, electricity, rent and other 21 33 Communication and IT costs 64 82 Distribution costs 93 122 Sales-related costs: - Commission payable 10 7 - Advertising and marketing-related costs 197 175 - Other sales-related costs 20 20 Material-related costs 103 130 Interest-related accruals 52 52 Other accrued liabilities 302 362 Accrued liabilities 1,678 1,784 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other liabilities [Abstract] | |
Other liabilities - Other current liabilities [Text Block] | Philips Group Other current liabilities in millions of EUR 2020 2021 Accrued customer rebates that cannot be offset with accounts receivables for those customers 412 280 Other taxes including social security premiums 253 190 Other liabilities 119 116 Other current liabilities 785 587 |
Cash flow statement supplemen_2
Cash flow statement supplementary information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash flow statement supplementary information [Abstract] | |
Cash flow statement supplementary information - Reconciliation of liabilities arising from financing activities [Text Block] | Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR Balance as of Dec. 31, 2020 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2021 Long term debt 2 6,857 (226) 200 101 6,933 USD bonds 1,210 103 1,313 EUR bonds 3,229 4 3,233 Bank borrowings 205 (1) 203 Other long-term debt 16 14 30 Leases 1,216 (239) 98 145 1,220 Forward contracts 3 982 (48) 934 Short term debt 2 76 (25) (5) 47 Short-term bank borrowings 76 (24) (5) 47 Other short-term loans 1 (1) Forward contracts 3 Equity (1,181) (2,096) 1,868 (1,410) Dividend payable (484) 484 Forward contracts 3 (982) 48 (934) Treasury shares (199) (1,613) 1,336 (476) Total (2,347) 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 Balance as of Dec. 31, 2019 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2020 Long term debt 2 5,355 767 (180) 916 6,857 USD bonds 1,328 (117) 1,210 EUR bonds 2,234 991 3 3,229 Bank borrowings 206 (2) 205 Other long-term debt 17 (1) 1 16 Leases 1,381 (223) (61) 119 1,216 Forward contracts 3 188 793 982 Short term debt 2 92 16 (32) 76 Short-term bank borrowings 92 15 (32) 76 Other short-term loans 1 1 Forward contracts 3 Equity (390) (300) (491) (1,181) Dividend payable (2) 2 Forward contracts 3 (188) (793) (982) Treasury shares (201) (298) 299 (199) Total 483 1) Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 2) In the 2019 opening balance sheet, EUR 803 million of lease liabilities were recognized due to the implementation of IFRS 16. 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, 2021 | |
Related-party transactions [Abstract] | |
Related-party transactions - Related-party transactions [Text Block] | Philips Group Related-party transactions in millions of EUR 2019 2020 2021 Sales of goods and services 158 204 116 Purchases of goods and services 53 57 41 Receivables from related parties 32 37 40 Payables to related parties 2 1 2 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based compensation [Abstract] | |
Share-based compensation - Performance shares [Text Block] | Philips Group Performance shares shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2021 3,545,312 41.31 Granted 1,121,001 50.73 Notional dividends 1 62,872 45.22 Vested/Issued 1,466,223 39.18 Forfeited 272,873 45.90 Adjusted quantity 2 107,624 37.67 Outstanding at December 31, 2021 3,097,713 45.28 USD-denominated Outstanding at January 1, 2021 2,412,767 47.10 Granted 693,918 61.32 Notional dividends 1 41,324 51.42 Vested/Issued 947,772 47.48 Forfeited 268,500 51.29 Adjusted quantity 2 73,264 50.06 Outstanding at December 31, 2021 2,005,000 51.48 1) Dividend declared in 2021 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 - Restricted shares [Text Block] | Philips Group Restricted shares shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2021 1,813,385 36.20 Granted 631,347 44.41 Notional dividends 1 33,430 39.69 Vested/Issued 671,703 33.96 Forfeited 187,648 40.19 Cancelled 323 35.72 Outstanding at December 31, 2021 1,618,488 39.93 USD-denominated Outstanding at January 1, 2021 1,649,847 41.14 Granted 721,469 53.42 Notional dividends 1 30,551 44.99 Vested/Issued 584,833 40.64 Forfeited 206,013 46.09 Outstanding at December 31, 2021 1,611,021 46.26 1) Dividend declared in 2021 on outstanding shares. |
Share-based compensation - Options on EUR-denominated listed share [Text Block] | Philips Group Options on EUR-denominated listed share options weighted average exercise price Outstanding at January 1, 2021 491,914 17.10 Exercised 233,265 19.03 Expired 19,572 20.48 Outstanding at December 31, 2021 239,077 14.93 Exercisable at December 31, 2021 239,077 14.93 |
Share-based compensation - Options on USD-denominated listed share [Text Block] | Philips Group Options on USD-denominated listed share options weighted average exercise price Outstanding at January 1, 2021 387,177 23.72 Exercised 220,662 26.12 Expired 16,350 27.83 Outstanding at December 31, 2021 150,165 19.75 Exercisable at December 31, 2021 150,165 19.75 |
Share-based compensation - Outstanding options [Text Block] | Philips Group Outstanding options in millions of EUR unless otherwise stated options intrinsic value in millions weighted average remaining contractual term EUR-denominated 10-15 229,660 4.1 0.3 15-20 8,100 0.1 0.5 20-25 1,317 1.0 Outstanding options 239,077 4.3 0.3 USD-denominated 15-20 143,415 2.5 0.3 20-25 3,600 0.1 0.4 25-30 30-35 3,150 0.9 Outstanding options 150,165 2.6 0.3 |
Share-based compensation - Accelerate! options [Text Block] | Philips Group Accelerate! options options weighted average exercise price EUR-denominated Outstanding at January 1, 2021 163,200 17.66 Exercised 26,225 15.24 Outstanding at December 31, 2021 136,975 18.13 Exercisable at December 31, 2021 136,975 18.13 USD-denominated Outstanding at January 1, 2021 37,800 20.02 Exercised 20,300 20.02 Expired Outstanding at December 31, 2021 17,500 20.02 Exercisable at December 31, 2021 17,500 20.02 |
Information on remuneration (Ta
Information on remuneration (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Information on remuneration [Abstract] | |
Information on remuneration - Remuneration costs of the Executive Committee [Text Block] | Philips Group Remuneration costs of the Executive Committee 1 in EUR 2019 2020 2021 Base salary/Base compensation 9,241,364 9,299,794 9,598,588 Annual incentive 2 5,566,763 6,726,768 5,250,408 Performance shares 3 4 11,143,320 13,153,975 12,610,073 Restricted share rights 3 168,404 288,372 1,380,644 Pension allowances 5 2,076,834 2,054,570 2,107,953 Pension scheme costs 440,003 382,513 306,694 Other compensation 6 1,331,990 1,264,908 2,104,044 Total 29,968,678 33,170,901 33,358,405 1) The Executive Committee consisted of 13 members as per December 31, 2021 (2020: 15 members; 2019: 14 members) 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 at the vesting/release date 4) For 2021, a release of EUR 0 (2020: EUR 554,437; 2019: EUR 0) 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 - Remuneration costs of individual members of the Board of Management [Text Block] | Philips Group Remuneration costs of individual members of the Board of Management in EUR base compensation/salary annual incentive 1 performance shares 2 restricted share rights 2 pension allowances 3 pension scheme costs other compensation total costs 2021 F.A. van Houten 1,325,000 850,915 2,626,295 - 565,403 27,462 57,224 5,452,299 A. Bhattacharya 790,000 360,103 1,172,533 - 233,857 27,462 68,908 2,652,864 M.J. van Ginneken 605,000 317,192 886,035 - 150,755 27,462 42,610 2,029,054 2,720,000 1,528,211 4,684,863 - 950,014 82,387 168,742 10,134,217 2020 F.A. van Houten 1,325,000 1,298,500 2,874,467 - 565,922 27,001 62,176 6,153,067 A. Bhattacharya 785,000 596,600 1,295,996 - 233,126 27,001 70,267 3,007,990 M.J. van Ginneken 580,000 437,920 952,453 - 158,800 27,001 46,986 2,203,160 2,690,000 2,333,020 5,122,916 - 957,849 81,004 179,428 11,364,217 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 1) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. 2) Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of performance shares at the vesting/release date 3) The stated amounts mainly concern (share of) allowances to members of the Board of Management 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 - 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 age at December 31, 2021 accumulated annual pension as of December 31, 2021 total pension related costs F.A. van Houten 61 331,208 592,865 A. Bhattacharya 60 35,102 261,319 M.J. van Ginneken 48 48,015 178,217 Pension costs 1,032,402 |
Information on remuneration - Remuneration of the Supervisory Board [Text Block] | Philips Group Remuneration of the Supervisory Board in EUR membership committees other compensation 1 total 2021 F. Sijbesma 141,301 27,808 8,237 177,346 P.A.M. Stoffels 109,863 27,808 4,769 142,440 J. van der Veer 53,507 12,082 3,916 69,505 C.A. Poon 39,699 16,915 783 57,397 N. Dhawan 100,000 18,000 2,269 120,269 O. Gadiesh 34,521 4,833 783 40,137 D.E.I. Pyott 100,000 36,370 2,269 138,639 A.M. Harrison 100,000 14,000 2,269 116,269 M.E. Doherty 100,000 27,000 4,769 131,769 P. Löscher 100,000 32,000 4,769 136,769 I. Nooyi 100,000 14,000 2,269 116,269 S.K. Chua 65,753 11,836 1,492 79,081 1,044,644 242,652 38,595 1,325,891 2020 J. van der Veer 155,000 35,000 11,345 201,345 C.A. Poon 115,000 49,000 7,269 171,269 N. Dhawan 100,000 18,000 7,269 125,269 O. Gadiesh 100,000 14,000 2,269 116,269 D.E.I. Pyott 100,000 42,000 12,269 154,269 P.A.M. Stoffels 100,000 9,333 9,769 119,102 A.M. Harrison 100,000 14,000 2,269 116,269 M.E. Doherty 100,000 24,000 9,769 133,769 P. Löscher 66,667 21,333 1,513 89,513 F. Sijbesma 76,667 9,333 1,513 87,513 1,013,333 236,000 65,254 1,314,587 2019 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 51,500 870,000 201,916 131,000 1,202,916 1) The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel, the entitlement of EUR 2,000 under the Philips product arrangement and the annual fixed net expense allowance. |
Information on remuneration - Shares held by Board members [Text Block] | Philips Group Shares held by Board members 1 2 in number of shares December 31, 2020 December 31, 2021 F.A. van Houten 424,029 525,761 A. Bhattacharya 123,077 148,365 M.J. van Ginneken 88,996 110,528 1) Reference date for board membership is December 31, 2021. 2) The total shares held by the members of the Board of Management is less than 1% of the company's issued share capital. |
Fair value of financial asset_2
Fair value of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair value of financial assets and liabilities [Abstract] | |
Fair value of financial assets and liabilities - Fair value of financial assets and liabilities [Text Block] | Philips Group Fair value of financial assets and liabilities in millions of EUR 2021 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 233 233 233 Equity instruments 4 4 4 Other financial assets 46 46 34 12 Financial assets carried at FVTPL 283 283 4 34 245 Debt instruments 27 27 27 Equity instruments 273 273 63 210 Current financial assets - - Receivables - current 68 68 68 Financial assets carried at FVTOCI 368 368 63 27 278 Derivative financial instruments 63 63 63 Financial assets carried at fair value 714 714 67 124 523 Carried at (amortized) cost: Cash and cash equivalents 2,303 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 47 Receivables - current 3,720 Receivables - non-current 224 Financial assets carried at (amortized) cost 6,296 Total financial assets 7,010 Financial liabilities Carried at fair value: Contingent consideration (208) (208) (208) Financial liabilities carried at FVTP&L (208) (208) (208) Derivative financial instruments (202) (202) (202) Financial liabilities carried at fair value (410) (410) (202) (208) Carried at (amortized) cost: Accounts payable (1,872) Interest accrual (52) Debt (Corporate bonds and leases) (5,765) (6,396) (5,177) (1,220) Debt (excluding corporate bonds and leases) (1,214) Financial liabilities carried at (amortized) cost (8,904) Total financial liabilities (9,314) 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 2020 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 207 207 207 Equity instruments 5 5 5 Other financial assets 36 36 30 5 Financial assets carried at FVTPL 248 248 5 30 212 Debt instruments 27 27 27 - Equity instruments 119 119 12 107 Current financial assets - - Receivables - current 91 91 91 Financial assets carried at FVTOCI 237 237 12 27 198 Derivative financial instruments 111 111 111 Financial assets carried at fair value 596 596 17 168 411 Carried at (amortized) cost: Cash and cash equivalents 3,226 Loans and receivables: Current loans receivables - Other non-current loans and receivables 37 Receivables - current 4,065 Receivables - non-current 230 Financial assets carried at (amortized) cost 7,558 Total financial assets 8,154 Financial liabilities Carried at fair value: Contingent consideration (318) (318) (318) Financial liabilities carried at FVTP&L (318) (318) (318) Derivative financial instruments (163) (163) (163) Financial liabilities carried at fair value (481) (481) (163) (318) Carried at (amortized) cost: Accounts payable (2,119) Interest accrual (52) Debt (Corporate bonds and leases) (5,655) (6,431) (5,216) (1,216) Debt (excluding corporate bonds and leases) (1,279) Financial liabilities carried at (amortized) cost (9,104) Total financial liabilities (9,585) 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. |
Fair value of financial assets and liabilities - Reconciliation of Level 3 fair value measurements [Text Block] | Philips Group Reconciliation of Level 3 fair value measurements in millions of EUR Financial assets Financial liabilities Balance as of January 1, 2021 411 318 Acquisitions 16 Purchase 113 Sales (122) Utilizations (48) Recognized in profit and loss: other business income (87) financial income and expenses 1 98 1 Recognized in other comprehensive income 2 12 9 Receivables held to collect and sell (25) Reclassification from associates 36 Balance as of December 31, 2021 523 208 1) Refer to Financial income and expenses 2) Includes translation differences Philips Group Reconciliation of Level 3 fair value measurements in millions of EUR Financial assets Financial liabilities Balance as of January 1, 2020 212 354 Acquisitions 70 Purchase 127 Sales (60) Utilizations (15) Recognized in profit and loss: other business income (93) financial income and expenses 129 6 Recognized in other comprehensive income 1 (8) (6) Receivables held to collect and sell 11 Balance as of December 31, 2020 411 318 1) Includes translation differences |
Fair value of financial assets and liabilities - 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 2020 2021 Derivatives Gross amounts of recognized financial assets 111 63 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 111 63 Related amounts not offset in the balance sheet Financial instruments (55) (47) Cash collateral received Net amount 57 17 |
Fair value of financial assets and liabilities - 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 2020 2021 Derivatives Gross amounts of recognized financial liabilities (163) (202) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (163) (202) Related amounts not offset in the balance sheet Financial instruments 55 47 Cash collateral received Net amount (109) (155) |
Details of treasury and other_2
Details of treasury and other financial risks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Details of treasury and other financial risks [Abstract] | |
Details of treasury and other financial risks - Contractual cash obligations [Text Block] | Philips Group Contractual cash obligations 1 2 in millions of EUR payments due by period total less than 1 year 1-3 years 3-5 years after 5 years Long-term debt 3 7,233 246 1,995 1,924 3,068 Lease obligations 1,333 280 397 238 417 Short-term debt 47 47 Derivative liabilities 208 87 121 Purchase obligations 4 654 237 305 99 12 Trade and other payables 1,872 1,872 Contractual cash obligations 11,347 2,768 2,819 2,261 3,498 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 - Lease - minimum payments under sale-and-leaseback arrangements [Text Block] | Philips Group Lease - minimum payments under sale-and-leaseback arrangements in millions of EUR 2022 72 2023 51 2024 33 2025 17 2026 8 Thereafter 21 |
Details of treasury and other financial risks - Estimated transaction exposure and related hedges [Text Block] | Philips Group Estimated transaction exposure and related hedges in millions of EUR Sales/Receivables Purchases/Payable exposure hedges exposure hedges Balance as of December 31, 2021 Exposure currency USD 2,168 (1,614) (1,030) 958 JPY 665 (306) (11) 10 GBP 338 (179) (11) 11 CNY 624 (433) (83) 71 CAD 338 (173) PLN 70 (31) AUD 240 (122) CHF 124 (57) (2) 2 CZK 63 (29) SEK 71 (30) (1) 1 RUB 125 (113) (2) 2 Others 306 (275) (419) 267 Total 2021 5,131 (3,363) (1,559) 1,322 Total 2020 4,707 (3,150) (1,488) 1,267 |
Details of treasury and other financial risks - 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 2020 2021 USD 71 78 JPY 17 13 GBP 15 14 CHF 6 5 PLN 8 3 RUB 8 10 |
Details of treasury and other financial risks - Net debt and interest rate sensitivity [Text Block] | Philips Group Net debt 1 in millions of EUR 2020 2021 Impact 1% 2 3 (345) (297) Impact 1% 2 3 346 298 Impact 1% 4 28 20 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 31, 2021, 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, 2021. |
Details of treasury and other financial risks - Credit risk with number of counterparties [Text Block] | Philips Group Credit risk with number of counterparties for deposits above EUR 10 million 10-100 million 100-500 million 500 million and above AA- rated bank counterparties 1 A+ rated bank counterparties 1 4 A rated bank counterparties 1 1 A- rated bank counterparties 1 2 4 7 |
Significant accounting polici_3
Significant accounting policies - Text Details (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant accounting policies [Line Items] | ||
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. | |
Bottom of range [member] | ||
Significant accounting policies [Line Items] | ||
Presumed significant influence, voting rights | 20.00% | 20.00% |
Top of range [member] | ||
Significant accounting policies [Line Items] | ||
Presumed significant influence, voting rights | 50.00% | 50.00% |
Information by segment and ma_3
Information by segment and main country - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Information by segment and main country [Line Items] | |||
Share of sales for single customer | 10.00% | ||
Diagnosis & Treatment [Member] | |||
Information by segment and main country [Line Items] | |||
Intersegment funding | € 16 | € 38 | € 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Information by segment and main country [Line Items] | |||||
Revenue | € 17,156 | € 17,313 | € 17,147 | ||
Sales including intercompany | 17,156 | 17,313 | 17,147 | ||
Depreciation and amortisation expense | [1] | 1,323 | 1,462 | 1,343 | |
Adjusted EBITA | [2] | 2,054 | 2,277 | 2,270 | |
Diagnosis & Treatment [Member] | |||||
Information by segment and main country [Line Items] | |||||
Revenue | 8,635 | [3] | 8,175 | 8,485 | |
Sales including intercompany | 8,846 | [3] | 8,289 | 8,576 | |
Depreciation and amortisation expense | 459 | [3] | 536 | 564 | |
Adjusted EBITA | [2] | 1,071 | [3] | 818 | 1,078 |
Connected Care [Member] | |||||
Information by segment and main country [Line Items] | |||||
Revenue | 4,593 | 5,568 | 4,674 | ||
Sales including intercompany | 4,638 | 5,644 | 4,705 | ||
Depreciation and amortisation expense | 384 | 415 | 326 | ||
Adjusted EBITA | [2] | 488 | 1,198 | 620 | |
Personal Health [Member] | |||||
Information by segment and main country [Line Items] | |||||
Revenue | 3,410 | 3,173 | 3,516 | ||
Sales including intercompany | 3,441 | 3,172 | 3,511 | ||
Depreciation and amortisation expense | 130 | 144 | 140 | ||
Adjusted EBITA | [2] | 599 | 426 | 672 | |
Other [Member] | |||||
Information by segment and main country [Line Items] | |||||
Revenue | 519 | 396 | 472 | ||
Sales including intercompany | 610 | 479 | 556 | ||
Depreciation and amortisation expense | 350 | 368 | 313 | ||
Adjusted EBITA | [2] | (105) | (165) | (100) | |
Intersector Eliminations [member] | |||||
Information by segment and main country [Line Items] | |||||
Sales including intercompany | € (379) | € (272) | € (201) | ||
[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] | 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 2021 they received a corporate funding out of segment Other of EUR 16 million (2020: EUR 38 million, 2019: EUR 54 million) to support them during their emerging idea-to-market business phase. |
Information by segment and ma_5
Information by segment and main country - Reconciliation from net income to Adjusted EBITA (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) | [1] | € 3,323 | [2],[3] | € 1,195 | [3],[4] | € 1,173 | [4] |
Profit (loss) from discontinued operations | [1] | 2,711 | [2],[3] | 196 | [4],[5] | 183 | [4],[5] |
Tax expense (income) | [4] | (103) | 212 | 258 | |||
Share of profit (loss) of associates and joint ventures accounted for using equity method | [4] | (4) | (9) | 1 | |||
Finance costs | [4] | 188 | 202 | 233 | |||
Finance income | [4] | 149 | 158 | 114 | |||
Profit (loss) from operating activities | [4] | 553 | 1,264 | 1,366 | |||
Amortization of acquired intangible assets | [4] | 322 | [3] | 377 | [3] | 344 | |
Impairment loss recognised in profit or loss, goodwill | 15 | [2],[3] | 144 | [3],[4] | 97 | [4] | |
Earnings before interest, taxes and amortization | [4] | 890 | 1,784 | 1,807 | |||
Restructuring and acquisition-related charges | 95 | [2],[3] | 195 | [3],[4] | 310 | [4] | |
Other items | 1,069 | [2],[3] | 299 | [3],[4] | 153 | [4] | |
Adjusted EBITA | [4] | 2,054 | 2,277 | 2,270 | |||
Diagnosis & Treatment [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | [4] | 941 | 497 | 660 | |||
Amortization of acquired intangible assets | [4] | 153 | 209 | 177 | |||
Impairment loss recognised in profit or loss, goodwill | [4] | 2 | 0 | 19 | |||
Earnings before interest, taxes and amortization | [4] | 1,097 | 706 | 856 | |||
Restructuring and acquisition-related charges | [4] | 7 | 29 | 149 | |||
Other items | [4] | (32) | 83 | 73 | |||
Adjusted EBITA | [4] | 1,071 | [6] | 818 | 1,078 | ||
Connected Care [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | [4] | (732) | 711 | 269 | |||
Amortization of acquired intangible assets | [4] | 148 | 134 | 141 | |||
Impairment loss recognised in profit or loss, goodwill | [4] | 13 | 144 | 78 | |||
Earnings before interest, taxes and amortization | [4] | (571) | 989 | 488 | |||
Restructuring and acquisition-related charges | [4] | 93 | 97 | 64 | |||
Other items | [4] | 965 | 112 | 67 | |||
Adjusted EBITA | [4] | 488 | 1,198 | 620 | |||
Personal Health [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | [4] | 585 | 356 | 589 | |||
Amortization of acquired intangible assets | [4] | 15 | 16 | 18 | |||
Earnings before interest, taxes and amortization | [4] | 600 | 371 | 607 | |||
Restructuring and acquisition-related charges | [4] | (1) | 31 | 42 | |||
Other items | [4] | 0 | 24 | 23 | |||
Adjusted EBITA | [4] | 599 | 426 | 672 | |||
Other [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | [4] | (242) | (300) | (152) | |||
Amortization of acquired intangible assets | [4] | 6 | 18 | 8 | |||
Earnings before interest, taxes and amortization | [4] | (236) | (282) | (144) | |||
Restructuring and acquisition-related charges | [4] | (5) | 37 | 54 | |||
Other items | [4] | 136 | 81 | (11) | |||
Adjusted EBITA | [4] | € (105) | € (165) | € (100) | |||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[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] | 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 2021 they received a corporate funding out of segment Other of EUR 16 million (2020: EUR 38 million, 2019: EUR 54 million) to support them during their emerging idea-to-market business phase. |
Information by segment and ma_6
Information by segment and main country - Main countries (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Information by segment and main country [Line Items] | |||
Revenue | € 17,156 | € 17,313 | € 17,147 |
Netherlands [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 570 | 404 | 391 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 1,934 | 1,926 | 2,148 |
United States of America [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 6,420 | 6,580 | 6,626 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 12,615 | 9,080 | 9,864 |
China [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 2,335 | 2,319 | 2,427 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 283 | 313 | 340 |
Japan [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 1,073 | 1,113 | 1,185 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 480 | 511 | 550 |
Germany [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 839 | 980 | 805 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 305 | 302 | 308 |
United Kingdom of Great Britain and Northern Ireland [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 481 | 509 | 436 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 567 | 545 | 611 |
France [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 397 | 380 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 49 | 46 | |
Other countries [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 5,040 | 5,024 | 4,898 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 753 | 906 | 1,119 |
Foreign countries [member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 17,156 | 17,313 | 17,147 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | € 16,986 | 13,694 | € 14,986 |
Italy [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 383 | ||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | € 111 |
Discontinued operations and a_3
Discontinued operations and assets classified as held for sale - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Gains on disposals of other remaining business | € 161 | € 120 | € 81 | ||||
Reclassification adjustments on exchange differences on translation, before tax in discontinued operations | (69) | (16) | |||||
Tax expense (income) relating to gain (loss) on discontinuance | 743 | ||||||
Result on the sale of discontinued operations net of tax | 2,499 | ||||||
Profit (loss) from discontinued operations | [1] | 2,711 | [2],[3] | 196 | [4],[5] | 183 | [4],[5] |
Increase (decrease) in cash and cash equivalents, discontinued operations | [1] | 3,403 | 129 | 98 | |||
Cash flows from (used in) investing activities, discontinued operations | 3,319 | (14) | |||||
Advance income tax payment | 78 | 78 | |||||
Domestic Appliances [Member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Proceeds from disposal of non-current assets or disposal groups classified as held for sale and discontinued operations | 4,041 | ||||||
Reclassification adjustments on exchange differences on translation, before tax in discontinued operations | 69 | ||||||
Tax expense (income) relating to gain (loss) on discontinuance | (743) | ||||||
Profit (loss) from discontinued operations | 2,698 | 206 | 202 | ||||
Cash flows from (used in) investing activities, discontinued operations | 3,319 | ||||||
Other operations [Member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Profit (loss) from discontinued operations | 13 | € (10) | € (19) | ||||
Domestic Appliances business group [member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Gains on disposals of other remaining business | € 3,241 | ||||||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Profit (loss) from discontinued operations | [1] | € 2,711 | [2],[3] | € 196 | [4],[5] | € 183 | [4],[5] |
Domestic Appliances [Member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Profit (loss) from discontinued operations | 2,698 | 206 | 202 | ||||
Other operations [Member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Profit (loss) from discontinued operations | 13 | (10) | (19) | ||||
Discontinued operations [member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Profit (loss) from discontinued operations | € 2,711 | € 196 | € 183 | ||||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[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 Domestic Appliances in millions of EUR (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Revenue | € 17,156 | € 17,313 | € 17,147 | ||||
Profit (loss) from operating activities | [1] | 553 | 1,264 | 1,366 | |||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | 737 | 81 | 70 | ||||
Tax expense (income) relating to gain (loss) on discontinuance | 743 | ||||||
Profit (loss) from discontinued operations | [2] | 2,711 | [3],[4] | 196 | [1],[5] | 183 | [1],[5] |
Discontinued operations [member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Profit (loss) from discontinued operations | 2,711 | 196 | 183 | ||||
Discontinued operations [member] | Domestic Appliances business group [member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Revenue | 1,516 | 2,222 | 2,335 | ||||
Profit (loss) from operating activities | 194 | 279 | 280 | ||||
Domestic Appliances [Member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Discontinued Operations, Expenses | (1,322) | (1,944) | (2,054) | ||||
Profit Loss Discontinued Operations, Before Tax | 3,435 | 279 | 280 | ||||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | [6] | 6 | (72) | (79) | |||
Tax expense (income) relating to gain (loss) on discontinuance | (743) | ||||||
Profit (loss) from discontinued operations | € 2,698 | € 206 | € 202 | ||||
[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] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[6] | The income tax expense from discontinued operations is calculated based on the separate return method, as if Domestic Appliances was filing its own separate tax returns. |
Discontinued operations and a_6
Discontinued operations and assets classified as held for sale - Net cash provided by (used for) Discontinued operations in millions of EUR (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Discontinued operations and assets classified as held for sale [Abstract] | ||||
Cash flows from (used in) operating activities, discontinued operations | € 85 | € 129 | € 111 | |
Cash flows from (used in) investing activities, discontinued operations | 3,319 | (14) | ||
Increase (decrease) in cash and cash equivalents, discontinued operations | [1] | € 3,403 | € 129 | € 98 |
[1] | 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 in the accompanying notes of the consolidated financial statements. |
Acquisitions and divestments -
Acquisitions and divestments - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Acquisitions and divestments [Line Items] | ||||
Aggregated net cash outflow for acquisitions | € 2,824 | € 259 | ||
Deferred tax liabilities recognised as of acquisition date | € 45 | € 45 | ||
Discount rate applied to cash flow projections | 6.50% | 6.50% | ||
Other non-current financial assets | € 630 | 430 | € 248 | € 630 |
Losses on disposals of other remaining business | 43 | 30 | € 88 | |
Contingent liabilities recognised as of acquisition date | 70 | 70 | ||
Aggregated impact on goodwill | 168 | 168 | ||
Aggregated impact on other intangible assets | 184 | 184 | ||
Aging & Caregiving [member] | ||||
Acquisitions and divestments [Line Items] | ||||
Other non-current financial assets | 40 | 40 | ||
Losses on disposals of other remaining business | 75 | |||
Acquisitions and divestments [Domain] | ||||
Acquisitions and divestments [Line Items] | ||||
Goodwill recognised as of acquisition date | 2,102 | 2,102 | ||
Identifiable intangible assets recognised as of acquisition date | 840 | 840 | ||
Deferred tax liabilities recognised as of acquisition date | 206 | 206 | ||
BioTelemetry [Member] | ||||
Acquisitions and divestments [Line Items] | ||||
Aggregated net cash outflow for acquisitions | 2,132 | |||
Goodwill recognised as of acquisition date | 1,776 | 1,776 | ||
Identifiable intangible assets recognised as of acquisition date | 623 | 623 | ||
Deferred tax liabilities recognised as of acquisition date | (160) | € (160) | ||
Settled liabilities, contingent liabilities recognised in business combination | € 172 | |||
Discount rate applied to cash flow projections | 10.00% | 10.00% | ||
Useful life measured as period of time, intangible assets other than goodwill | 14 years | |||
Revenue of acquiree since acquisition date | € 387 | |||
Profit (loss) of acquiree since acquisition date | 32 | |||
Cash transferred | 2,337 | € 2,337 | ||
Capsule Technologies [Member] | ||||
Acquisitions and divestments [Line Items] | ||||
Aggregated net cash outflow for acquisitions | 520 | |||
Goodwill recognised as of acquisition date | 325 | 325 | ||
Identifiable intangible assets recognised as of acquisition date | 217 | 217 | ||
Deferred tax liabilities recognised as of acquisition date | € (46) | € (46) | ||
Discount rate applied to cash flow projections | 12.00% | 12.00% | ||
Useful life measured as period of time, intangible assets other than goodwill | 17 years | |||
Revenue of acquiree since acquisition date | € 75 | |||
Profit (loss) of acquiree since acquisition date | 10 | |||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 40 | |||
Cash transferred | 539 | € 539 | ||
Remaining two acquisitions [Member] | ||||
Acquisitions and divestments [Line Items] | ||||
Aggregated net cash outflow for acquisitions | 29 | |||
Identifiable intangible assets recognised as of acquisition date | 15 | 15 | ||
Deferred tax liabilities recognised as of acquisition date | 2 | 2 | ||
Aggregated impact on goodwill | 20 | 20 | ||
Intact Vascular [Member] | ||||
Acquisitions and divestments [Line Items] | ||||
Goodwill recognised as of acquisition date | 148 | 148 | ||
Identifiable intangible assets recognised as of acquisition date | 169 | 169 | ||
Deferred tax liabilities recognised as of acquisition date | € (42) | € (42) | ||
Discount rate applied to cash flow projections | 15.00% | 15.00% | ||
Useful life measured as period of time, intangible assets other than goodwill | 14 years | |||
Contingent liabilities recognised as of acquisition date | € 70 | € 70 | ||
Cash transferred | € 241 | € 241 | ||
Acquisition-related costs | € 2 |
Acquisitions and divestments _2
Acquisitions and divestments - Opening balance sheet (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Acquisitions and divestments [Line Items] | ||
Assets | € 30,961 | € 27,713 |
Deferred tax liabilities recognised as of acquisition date | 45 | |
BioTelemetry [Member] | ||
Acquisitions and divestments [Line Items] | ||
Identifiable intangible assets recognised as of acquisition date | 623 | |
Property, plant and equipment recognised as of acquisition date | 42 | |
Non-current assets recognised as of acquisition date | 48 | |
Deferred tax assets recognised as of acquisition date | 78 | |
Inventory recognised as of acquisition date | 11 | |
Current assets recognised as of acquisition date | 75 | |
Cash and cash equivalents recognised as of acquisition date | 205 | |
Assets | 1,083 | |
Trade and other payables recognised as of acquisition date | (278) | |
Deferred tax liabilities recognised as of acquisition date | (160) | |
Non-current liabilities recognised as of acquisition date | (69) | |
Contingent consideration recognised as of acquisition date | (16) | |
Liabilities | (523) | |
Identifiable assets acquired (liabilities assumed) | 560 | |
Goodwill recognised as of acquisition date | 1,776 | |
Cash transferred | 2,337 | |
Capsule Technologies [Member] | ||
Acquisitions and divestments [Line Items] | ||
Identifiable intangible assets recognised as of acquisition date | 217 | |
Property, plant and equipment recognised as of acquisition date | 11 | |
Non-current assets recognised as of acquisition date | 0 | |
Deferred tax assets recognised as of acquisition date | 14 | |
Inventory recognised as of acquisition date | 11 | |
Current assets recognised as of acquisition date | 97 | |
Cash and cash equivalents recognised as of acquisition date | 19 | |
Assets | 368 | |
Trade and other payables recognised as of acquisition date | (98) | |
Deferred tax liabilities recognised as of acquisition date | (46) | |
Non-current liabilities recognised as of acquisition date | (11) | |
Liabilities | (155) | |
Identifiable assets acquired (liabilities assumed) | 214 | |
Goodwill recognised as of acquisition date | 325 | |
Cash transferred | 539 | |
Intact Vascular [Member] | ||
Acquisitions and divestments [Line Items] | ||
Identifiable intangible assets recognised as of acquisition date | 169 | |
Deferred tax assets recognised as of acquisition date | 24 | |
Inventory recognised as of acquisition date | 2 | |
Current assets recognised as of acquisition date | 1 | |
Cash and cash equivalents recognised as of acquisition date | 10 | |
Assets | 207 | |
Trade and other payables recognised as of acquisition date | (2) | |
Deferred tax liabilities recognised as of acquisition date | (42) | |
Contingent consideration recognised as of acquisition date | 70 | |
Liabilities | (44) | |
Identifiable assets acquired (liabilities assumed) | 163 | |
Goodwill recognised as of acquisition date | 148 | |
Consideration transferred, acquisition-date fair value | 311 | |
Cash transferred | € 241 |
Interests in entities - Text De
Interests in entities - Text Details (Detail) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |||||
Interests in entities [Line Items] | |||||||
Number of consolidated subsidiaries not wholly owned | 4 | 6 | |||||
Revenue | € 17,156 | € 17,313 | € 17,147 | ||||
Profit (loss) | [1] | 3,323 | [2],[3] | 1,195 | [3],[4] | 1,173 | [4] |
Gain (loss) recognized as a result of remeasuring to fair value equity interest in associate upon loss of significant influence | 33 | ||||||
Philips Medical Capital LLC [Member] | |||||||
Interests in entities [Line Items] | |||||||
Stake in unconsolidated structured entity | 27 | € 26 | |||||
Associates [member] | |||||||
Interests in entities [Line Items] | |||||||
Net cash outflow for acquisitions | 232 | ||||||
Associate [Member] | |||||||
Interests in entities [Line Items] | |||||||
Net cash outflow for acquisitions | 125 | ||||||
Subsidiaries with material non-controlling interests [member] | |||||||
Interests in entities [Line Items] | |||||||
Revenue | 522 | 468 | |||||
Profit (loss) | € 39 | € 6 | |||||
Consolidated structured entities [member] | |||||||
Interests in entities [Line Items] | |||||||
Materiality threshold on group sales, income from operations or net income | 5.00% | ||||||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[4] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Interests in entities - Interes
Interests in entities - Interests in group companies (Detail) | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Philips (China) Investment Company Ltd [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips (China) Investment Company, Ltd. | ||
Principal place of business of subsidiary | China | ||
Philips GmbH [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips GmbH | ||
Principal place of business of subsidiary | Germany | ||
Philips Medizin Systeme Boblingen GmbH [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips Medizin Systeme Böblingen GmbH | ||
Principal place of business of subsidiary | Germany | ||
Philips Medical Systems Technologies Ltd. [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips Medical Systems Technologies Ltd. | ||
Principal place of business of subsidiary | Israel | ||
Philips India Limited [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips India Limited | ||
Principal place of business of subsidiary | India | ||
Philips Japan, Ltd. [member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips Japan, Ltd. | ||
Principal place of business of subsidiary | Japan | ||
Philips Consumer Lifestyle BV [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips Consumer Lifestyle B.V. | ||
Principal place of business of subsidiary | Netherlands | ||
Philips Medical Systems Nederland B.V. [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips Medical Systems Nederland B.V. | ||
Principal place of business of subsidiary | Netherlands | ||
ATL International LLC [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | ATL International LLC | ||
Principal place of business of subsidiary | United States | ||
AllParts Medical LLC [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | AllParts Medical LLC | ||
Principal place of business of subsidiary | United States | ||
Discus Holdings LLC [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Discus Holdings LLC | ||
Principal place of business of subsidiary | United States | ||
Philips Healthcare Informatics Inc. [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips Healthcare Informatics Inc. | ||
Principal place of business of subsidiary | United States | ||
Philips North America LLC [Member] | |||
Interests in entities [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 [Line Items] | |||
Name of subsidiary | Philips Oral Healthcare LLC | ||
Principal place of business of subsidiary | United States | ||
Philips USA Export Corporation [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Philips USA Export Corporation | ||
Principal place of business of subsidiary | United States | ||
Spectranetics LLC [Member] | |||
Interests in entities [Line Items] | |||
Name of subsidiary | Spectranetics LLC | ||
Principal place of business of subsidiary | United States |
Income from operations - Text D
Income from operations - Text Details (Detail) € in Millions | 12 Months Ended | ||
Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Income from operations [Line Items] | |||
Income from government grants | € 104 | € 98 | € 87 |
Income from subleasing right-of-use assets | 293 | € 325 | 307 |
Transaction price allocated to remaining performance obligations | 14,305 | ||
Percentage of remaining performance obligations within 1 year | 50.00% | ||
Employee benefits expense | 6,246 | € 6,289 | 6,097 |
Change in Fair value on contingent consideration | (78) | (93) | |
Gain (loss) recognized as a result of remeasuring to fair value equity interest in associate upon loss of significant influence | € 33 | ||
Other environment related provision [member] | EPD Solutions Ltd [Member] | |||
Income from operations [Line Items] | |||
Change in fair value of contingent consideration | 67,000,000 | ||
Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | |||
Income from operations [Line Items] | |||
Change in Fair value on contingent consideration | € 67 | 101 | |
Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | Forecasts revision [Member] | |||
Income from operations [Line Items] | |||
Change in fair value of contingent consideration | 41,000,000 | ||
Change in Fair value on contingent consideration | € 41 | ||
Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | Milestone [member] | |||
Income from operations [Line Items] | |||
Change in fair value of contingent consideration | 26,000,000 | ||
Change in Fair value on contingent consideration | € 26 | ||
Share-based compensation expenses [Member] | |||
Income from operations [Line Items] | |||
Employee benefits expense | € 115 | € 119 | € 103 |
Not later than one year [member] | |||
Income from operations [Line Items] | |||
Explanation of when entity expects to recognise transaction price allocated to remaining performance obligations as revenue | 1 year | ||
Later than one year [member] | |||
Income from operations [Line Items] | |||
Explanation of when entity expects to recognise transaction price allocated to remaining performance obligations as revenue | 1 year |
Income from operations - Sales
Income from operations - Sales and costs by nature (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income from operations [Abstract] | ||||
Revenue | € 17,156 | € 17,313 | € 17,147 | |
Raw materials and consumables used | 4,142 | 4,221 | 4,197 | |
Employee benefits expense | 6,246 | 6,289 | 6,097 | |
Depreciation and amortisation expense | [1] | 1,323 | 1,462 | 1,343 |
Transportation expense | 645 | 554 | 509 | |
Advertising expense | 752 | 696 | 741 | |
Lease expenses, net | [2] | 19 | 34 | 50 |
Other operational costs | [3],[4] | 3,524 | 2,741 | 2,811 |
Other gains (losses) | 48 | (51) | (33) | |
Profit (loss) from operating activities | [5] | € 553 | € 1,264 | € 1,366 |
[1] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | |||
[2] | Lease expense relates to short-term and low value leases. | |||
[3] | 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 104 million government grants recognized in 2021 (2020: EUR 98 million 2019: EUR 87 million). The grants mainly relate to research and development activities and business development. | |||
[4] | The significant increase in other operational costs 2021 versus 2020 is mainly due to the field action provision. For more details on the field action provision, please refer to Provisions | |||
[5] | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income from operations [Abstract] | ||||
Revenue from sale of goods | € 11,981 | € 12,491 | € 12,476 | |
Revenue from rendering of services | 4,374 | 4,058 | 3,811 | |
Royalty income | 383 | 301 | 381 | |
Revenue from contracts with customers | 16,738 | 16,851 | 16,668 | |
Revenue From Other Sources | [1] | 418 | 462 | 479 |
Revenue | € 17,156 | € 17,313 | € 17,147 | |
[1] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 million (2020: EUR 325 million 2019: EUR 307 million) |
Income from operations - Disagg
Income from operations - Disaggregation of Sales per segment (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | € 16,738 | € 16,851 | € 16,668 | ||
Revenue From Other Sources | [1] | 418 | 462 | 479 | |
Revenue | 17,156 | 17,313 | 17,147 | ||
Diagnosis & Treatment [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 8,583 | 8,129 | 8,417 | ||
Revenue From Other Sources | 52 | 46 | 68 | ||
Revenue | 8,635 | [2] | 8,175 | 8,485 | |
Connected Care [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 4,227 | 5,152 | 4,263 | ||
Revenue From Other Sources | 366 | 417 | 411 | ||
Revenue | 4,593 | 5,568 | 4,674 | ||
Personal Health [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 3,410 | 3,173 | 3,516 | ||
Revenue | 3,410 | 3,173 | 3,516 | ||
Other [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 518 | 396 | 472 | ||
Revenue From Other Sources | 0 | 0 | 0 | ||
Revenue | 519 | 396 | 472 | ||
Goods or services transferred at point in time [member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 12,142 | 12,580 | 12,655 | ||
Goods or services transferred at point in time [member] | Diagnosis & Treatment [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 5,407 | 5,132 | 5,428 | ||
Goods or services transferred at point in time [member] | Connected Care [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 3,135 | 4,208 | 3,545 | ||
Goods or services transferred at point in time [member] | Personal Health [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 3,403 | 3,170 | 3,513 | ||
Goods or services transferred at point in time [member] | Other [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 195 | 69 | 168 | ||
Goods or services transferred over time [member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 4,596 | 4,272 | 4,013 | ||
Goods or services transferred over time [member] | Diagnosis & Treatment [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 3,177 | 2,998 | 2,989 | ||
Goods or services transferred over time [member] | Connected Care [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 1,090 | 943 | 718 | ||
Goods or services transferred over time [member] | Personal Health [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | 6 | 4 | 3 | ||
Goods or services transferred over time [member] | Other [Member] | |||||
Income from operations [Line Items] | |||||
Revenue from contracts with customers | € 323 | € 327 | € 303 | ||
[1] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 million (2020: EUR 325 million 2019: EUR 307 million) | ||||
[2] | 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 2021 they received a corporate funding out of segment Other of EUR 16 million (2020: EUR 38 million, 2019: EUR 54 million) to support them during their emerging idea-to-market business phase. |
Income from operations - Disa_2
Income from operations - Disaggregation of Sales per geographical cluster (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | € 16,738 | € 16,851 | € 16,668 | |
Revenue From Other Sources | [1] | 418 | 462 | 479 |
Revenue | 17,156 | 17,313 | 17,147 | |
Western Europe [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 3,624 | 3,682 | 3,290 | |
Revenue From Other Sources | 21 | 19 | 38 | |
Revenue | 3,645 | 3,702 | 3,328 | |
North America [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 6,695 | 6,789 | 6,789 | |
Revenue From Other Sources | 86 | 95 | 114 | |
Revenue | 6,781 | 6,884 | 6,904 | |
Other Mature Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 1,386 | 1,408 | 1,482 | |
Revenue From Other Sources | 309 | 342 | 322 | |
Revenue | 1,694 | 1,750 | 1,804 | |
Total Mature Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 11,705 | 11,879 | 11,561 | |
Revenue From Other Sources | 415 | 457 | 474 | |
Revenue | 12,120 | 12,336 | 12,036 | |
Growth Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 5,033 | 4,972 | 5,107 | |
Revenue From Other Sources | 3 | 5 | 5 | |
Revenue | 5,036 | 4,977 | 5,112 | |
Goods or services transferred at point in time [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 12,142 | 12,580 | 12,655 | |
Goods or services transferred at point in time [member] | Western Europe [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 2,537 | 2,747 | 2,359 | |
Goods or services transferred at point in time [member] | North America [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 4,427 | 4,654 | 4,901 | |
Goods or services transferred at point in time [member] | Other Mature Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 1,000 | 1,035 | 1,125 | |
Goods or services transferred at point in time [member] | Total Mature Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 7,964 | 8,435 | 8,385 | |
Goods or services transferred at point in time [member] | Growth Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 4,178 | 4,145 | 4,270 | |
Goods or services transferred over time [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 4,596 | 4,272 | 4,013 | |
Goods or services transferred over time [member] | Western Europe [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 1,087 | 936 | 931 | |
Goods or services transferred over time [member] | North America [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 2,268 | 2,135 | 1,889 | |
Goods or services transferred over time [member] | Other Mature Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 386 | 373 | 357 | |
Goods or services transferred over time [member] | Total Mature Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | 3,741 | 3,444 | 3,176 | |
Goods or services transferred over time [member] | Growth Geographies [member] | ||||
Income from operations [Line Items] | ||||
Revenue from contracts with customers | € 856 | € 828 | € 837 | |
[1] | Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 293 million (2020: EUR 325 million 2019: EUR 307 million) |
Income from operations - Employ
Income from operations - Employee benefit expenses (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income from operations [Abstract] | ||||
Wages and salaries | [1] | € 5,129 | € 5,204 | € 5,080 |
Post-employment benefits costs | 396 | 418 | 370 | |
Social security contributions | 529 | 556 | 537 | |
Voluntary social security contributions | 192 | 111 | 111 | |
Employee benefits expense | € 6,246 | € 6,289 | € 6,097 | |
[1] | Salaries and wages includes EUR 115 million (2020: EUR 119 million, 2019: EUR 103 million) of share-based compensation expenses. |
Income from operations - Empl_2
Income from operations - Employees (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income from operations [Line Items] | |||
Average number of employees | 76,445 | 73,767 | 71,429 |
Continuing operations [member] | Production [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 38,618 | 35,482 | 31,222 |
Continuing operations [member] | Research & development [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 10,751 | 10,812 | 11,669 |
Continuing operations [member] | Other [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 22,543 | 22,474 | 22,924 |
Continuing operations [member] | Employees [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 71,912 | 68,769 | 65,815 |
Continuing operations [member] | Third party workers [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 4,533 | 4,998 | 5,614 |
Income from operations - Empl_3
Income from operations - Employees per geographical location (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income from operations [Line Items] | |||
Average number of employees | 76,445 | 73,767 | 71,429 |
Continuing operations [member] | Country of domicile [member] | |||
Income from operations [Line Items] | |||
Average number of employees | 11,142 | 11,146 | 11,252 |
Continuing operations [member] | Foreign countries [member] | |||
Income from operations [Line Items] | |||
Average number of employees | 65,303 | 62,621 | 60,177 |
Income from operations - Deprec
Income from operations - Depreciation and amortization (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income from operations [Line Items] | ||||
Depreciation and amortisation expense | [1] | € 1,323 | € 1,462 | € 1,343 |
Property, plant and equipment [member] | ||||
Income from operations [Line Items] | ||||
Depreciation expense | [2] | 630 | 691 | 611 |
Computer software [member] | ||||
Income from operations [Line Items] | ||||
Amortisation expense | [2] | 88 | 76 | 66 |
Other intangible assets [member] | ||||
Income from operations [Line Items] | ||||
Amortisation expense | [2] | 322 | 377 | 344 |
Capitalised development expenditure [member] | ||||
Income from operations [Line Items] | ||||
Amortisation expense | [2] | € 284 | € 319 | € 323 |
[1] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | |||
[2] | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | € 15 | € 14.6 | € 14.6 | |
Audit-related fees | [1] | 0.8 | 2.7 | 0.8 |
Auditor's remuneration | 15.8 | 17.3 | 15.4 | |
Consolidated financial statements [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 12.4 | 11.9 | 11.8 | |
Statutory financial statement [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 2.6 | 2.7 | 2.8 | |
Divestment [member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 1.7 | |||
Sustainability assurance [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.5 | 0.5 | 0.4 | |
Other services [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.3 | 0.5 | 0.4 | |
EY NL [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 9.7 | 9 | 8.4 | |
Audit-related fees | [1] | 0.6 | 2.2 | 0.5 |
Auditor's remuneration | 10.3 | 11.2 | 8.9 | |
EY NL [Member] | Consolidated financial statements [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 9.7 | 9 | 8.4 | |
EY NL [Member] | Divestment [member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 1.5 | |||
EY NL [Member] | Sustainability assurance [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.5 | 0.5 | 0.4 | |
EY NL [Member] | Other services [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.1 | 0.2 | 0.1 | |
EY Network [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 5.3 | 5.6 | 6.2 | |
Audit-related fees | [1] | 0.2 | 0.5 | 0.3 |
Auditor's remuneration | 5.5 | 6.1 | 6.5 | |
EY Network [Member] | Consolidated financial statements [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 2.7 | 2.9 | 3.4 | |
EY Network [Member] | Statutory financial statement [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 2.6 | 2.7 | 2.8 | |
EY Network [Member] | Divestment [member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.2 | |||
EY Network [Member] | Other services [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | € 0.2 | € 0.3 | € 0.3 | |
[1] | Also known as Assurance fees |
Income from operations - Other
Income from operations - Other business income (expenses) (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income from operations [Abstract] | |||
Gains on disposals of investments | € 0 | € 0 | € 69 |
Losses on disposals of investments | 75 | 0 | 1 |
Gains on disposals of non-current assets | 24 | 2 | 4 |
Losses on disposals of non-current assets | 5 | 0 | 0 |
Gains on disposals of other remaining business | 161 | 120 | 81 |
Losses on disposals of other remaining business | 43 | 30 | 88 |
Impairment of goodwill | 15 | 144 | 97 |
Other gains (losses) | 48 | (51) | (33) |
Other income | 186 | 122 | 154 |
Other expense, by function | € 138 | € 173 | € 186 |
Financial income and expenses -
Financial income and expenses - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial income and expenses [Line Items] | ||||
Increase (decrease) in financial income expense | € 5 | € 75 | ||
Gains (losses) on financial assets at fair value through profit or loss | € 95 | 95 | 129 | € 17 |
Increase (decrease) in net interest expense | € 19 | 11 | ||
Increase (decrease) Dividend income from financial assets | 49 | |||
Financial assets at fair value, class [member] | ||||
Financial income and expenses [Line Items] | ||||
Gains (losses) on financial assets at fair value through profit or loss | € 133 |
Financial income and expenses_2
Financial income and expenses - Financial income and expenses (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial income and expenses [Abstract] | |||||
Interest income | € 18 | € 13 | € 25 | ||
Interest income on loans and receivables | 7 | 8 | 10 | ||
Interest income on cash and cash equivalents | 11 | 5 | 15 | ||
Dividend Income From Financial Assets | 2 | 3 | 52 | ||
Net Gains From Disposal Of Financial Assets | 0 | 2 | 2 | ||
Gains (losses) on financial assets at fair value through profit or loss | € 95 | 95 | 129 | 17 | |
Other finance income (cost) | 33 | 12 | 17 | ||
Finance income | [1] | 149 | 158 | 114 | |
Interest expense | 159 | 173 | 196 | ||
Interest expense on borrowings | 147 | 154 | 167 | ||
Interest expense on lease liabilities | 5 | 6 | 6 | ||
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | (8) | (13) | (22) | ||
Provision-related accretion and interest | 14 | 22 | 23 | ||
Net foreign exchange loss | 0 | (4) | 2 | ||
Other finance cost | 15 | 11 | 12 | ||
Finance costs | [1] | 188 | 202 | 233 | |
Finance income (cost) | € (39) | € (44) | € (119) | ||
[1] | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income taxes [Line Items] | |||||
Tax expense (income) | [1] | € (103) | € 212 | € 258 | |
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | 737 | € 81 | € 70 | ||
Applicable tax rate | 25.00% | 25.00% | 25.00% | ||
Net deferred tax assets | 2,134 | € 1,761 | |||
Deferred tax assets | 2,216 | 1,820 | |||
Deferred tax liabilities | 83 | 59 | |||
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 | 12 | 35 | |||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 298 | 275 | |||
Deductible temporary differences for which no deferred tax asset is recognised | 33 | 33 | |||
Other tax liability | € 544 | € 291 | |||
[1] | 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 tax expen
Income taxes - Income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income taxes [Line Items] | ||||
Income before taxes continuing operations | [1] | € 513 | € 1,220 | € 1,247 |
Current tax expense (income) and adjustments for current tax of prior periods | 298 | 380 | 251 | |
Deferred tax expense (income) recognised in profit or loss | 401 | 167 | (8) | |
Tax expense (income) | [2] | € (103) | € 212 | € 258 |
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes [Abstract] | |||
Current tax expense (income) | € 291 | € 390 | € 248 |
Adjustments for current tax of prior periods | 7 | (10) | 3 |
Current tax expense (income) and adjustments for current tax of prior periods | € 298 | € 380 | € 251 |
Income taxes - Deferred income
Income taxes - Deferred income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes [Abstract] | |||
Changes to Recognition of Tax Loss and Credit Carry Forwards | € 129 | € 6 | € 56 |
Changes to Recognition of Temporary Differences | (1) | 19 | (32) |
Adjustments for deferred tax of prior periods | 20 | (8) | (9) |
Deferred tax expense (income) relating to tax rate changes or imposition of new taxes | 10 | 12 | 4 |
Deferred tax expense (income) relating to origination and reversal of temporary differences | 245 | 138 | (27) |
Deferred tax expense (income) recognised in profit or loss | € 401 | € 167 | € (8) |
Income taxes - Effective income
Income taxes - Effective income tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes [Abstract] | |||
Weighted average statutory income tax rate | 22.70% | 25.20% | 25.30% |
Recognition of previously unrecognized tax loss and credit carryforwards rate | (26.90%) | (0.50%) | (4.90%) |
Unrecognized tax loss and credit carryforwards rate | 1.90% | 0.00% | 0.10% |
Changes to Recognition of Temporary Differences Rate | 0.30% | (1.60%) | 2.60% |
Tax rate effect of revenues exempt from taxation | (40.60%) | (12.90%) | (11.20%) |
Tax rate effect of expense not deductible in determining taxable profit (tax loss) | 19.30% | 7.00% | 6.10% |
Withholding and other taxes | 7.20% | 0.60% | 4.10% |
Tax rate effect from change in tax rate | (1.90%) | (1.00%) | (0.20%) |
Tax rate effect of adjustments for current tax of prior periods | (2.40%) | (0.20%) | 0.70% |
Tax expenses (benefit) due to other tax liabilities | 4.40% | 1.20% | (2.00%) |
Other tax rate effects for reconciliation between accounting profit and tax expense (income) | (4.00%) | (0.20%) | 0.20% |
Average effective tax rate | (20.00%) | 17.60% | 20.80% |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes [Line Items] | |||
Deferred tax expense (income) recognised in profit or loss | € 401 | € 167 | € (8) |
Net deferred tax assets | 2,134 | 1,761 | |
Intangible assets and goodwill [member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (587) | (240) | (132) |
Deferred tax expense (income) recognised in profit or loss | 535 | 147 | |
Other changes in deferred tax assets and liabilities | (188) | (39) | |
Net deferred tax assets | 716 | 379 | |
Net deferred tax liabilities | 130 | 140 | |
Property, plant and equipment [member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (29) | (32) | (58) |
Deferred tax expense (income) recognised in profit or loss | 13 | (22) | |
Other changes in deferred tax assets and liabilities | (16) | (4) | |
Net deferred tax assets | 55 | 65 | |
Net deferred tax liabilities | 26 | 32 | |
Inventories [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (372) | (313) | (252) |
Deferred tax expense (income) recognised in profit or loss | 31 | 77 | |
Other changes in deferred tax assets and liabilities | 28 | (16) | |
Net deferred tax assets | 381 | 317 | |
Net deferred tax liabilities | 9 | 4 | |
Other assets [member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (68) | (97) | (56) |
Deferred tax expense (income) recognised in profit or loss | (30) | 37 | |
Other changes in deferred tax assets and liabilities | 1 | 4 | |
Net deferred tax assets | 112 | 135 | |
Net deferred tax liabilities | 43 | 38 | |
Pensions and other employee benefits [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (180) | (245) | (269) |
Deferred tax expense (income) recognised in profit or loss | (45) | 4 | |
Other changes in deferred tax assets and liabilities | (21) | (27) | |
Net deferred tax assets | 182 | 251 | |
Net deferred tax liabilities | 2 | 6 | |
Other liabilities [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (499) | (384) | (334) |
Deferred tax expense (income) recognised in profit or loss | 91 | 81 | |
Other changes in deferred tax assets and liabilities | 25 | (30) | |
Net deferred tax assets | 584 | 436 | |
Net deferred tax liabilities | 84 | 52 | |
Deferred tax assets on taxLoss carryforwards [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (398) | (449) | (620) |
Deferred tax expense (income) recognised in profit or loss | (194) | (133) | |
Other changes in deferred tax assets and liabilities | 143 | (38) | |
Net deferred tax assets | 398 | 449 | |
Set-off deffered tax positions [Member] | |||
Income taxes [Line Items] | |||
Net deferred tax assets | (211) | (212) | |
Net deferred tax liabilities | (211) | (212) | |
Net deferred tax assets [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (2,134) | (1,761) | € (1,721) |
Deferred tax expense (income) recognised in profit or loss | 401 | 190 | |
Other changes in deferred tax assets and liabilities | (28) | (151) | |
Net deferred tax assets | 2,216 | 1,820 | |
Net deferred tax liabilities | € 83 | € 59 |
Income taxes - Expiry years of
Income taxes - Expiry years of net operating loss and credit carryforwards (Detail) - EUR (€) | Dec. 31, 2021 | Dec. 31, 2020 |
Income taxes [Line Items] | ||
Net operating loss carryforwards | € 3,951,000,000 | € 4,276,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 2,547,000,000 | 2,520,000,000 |
Not later than one year [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 1,593,000,000 | 5,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 1,592,000,000 | 1,000,000 |
Later than one year and not later than two years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 6,000,000 | 1,546,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 0 | 1,541,000,000 |
Later than two years and not later than three years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 9,000,000 | 13,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 0 | 3,000,000 |
Later than three years and not later than four years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 7,000,000 | 235,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 0 | 0 |
Later than four years and not later than five years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 18,000,000 | 23,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 0 | 0 |
Later than five years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 751,000,000 | 1,026,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 21,000,000 | 24,000,000 |
Unlimited [Member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 1,567,000,000 | 1,428,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | € 934,000,000 | € 951,000,000 |
Earnings per share - Earnings p
Earnings per share - Earnings per share (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Earnings per share [Abstract] | |||||||
Profit (loss) from continuing operations | [2] | € 612 | [1] | € 999 | [1] | € 990 | |
Profit (loss) from continuing operations attributable to non-controlling interests | [2] | 4 | 8 | 5 | |||
Profit (loss) from continuing operations attributable to ordinary equity holders of parent entity, used in calculating basic earnings per share | [2] | 608 | 991 | 985 | |||
Profit (loss) from discontinued operations | [3] | 2,711 | [1],[4] | 196 | [2],[5] | 183 | [2],[5] |
Income from discontinued operations attributable to owners of parent | [2] | 2,711 | 196 | 183 | |||
Profit (loss), attributable to owners of parent | [2] | € 3,319 | € 1,187 | € 1,167 | |||
Weighted average number of ordinary shares used in calculating basic earnings per share | [2] | 904,271,675 | 907,721,150 | 921,062,109 | |||
Incremental shares from assumed conversions of options | [2] | 387,125 | 757,622 | 1,288,001 | |||
Incremental shares from assumed conversions of performance shares | [2] | 2,548,891 | 5,561,501 | 5,896,049 | |||
Incremental shares from assumed conversions of restricted share rights | [2] | 2,376,736 | 2,584,728 | 2,524,606 | |||
Dilutive potential common shares | [2] | 5,383,080 | 8,903,851 | 9,708,656 | |||
Diluted weighted average number of shares (after deduction of treasury shares) during the year | [2] | 909,654,754 | 916,625,001 | 930,770,765 | |||
Basic earnings (loss) per share from continuing operations attributable to shareholders | [2] | € 0.67 | € 1.09 | € 1.07 | |||
Basic earnings (loss) per share from discontinued operations | [2] | 3 | 0.22 | 0.2 | |||
Basic earnings (loss) per share | [2] | 3.67 | 1.31 | 1.27 | |||
Diluted earnings (loss) per share from continuing operations attributable to shareholders | [2] | 0.67 | 1.08 | 1.06 | |||
Diluted earnings (loss) per share from discontinued operations | [2] | 2.98 | 0.21 | 0.2 | |||
Diluted earnings (loss) per share | [2] | 3.65 | 1.29 | 1.25 | |||
Dividends paid, ordinary shares per share | [2] | € 0.85 | € 0.85 | € 0.85 | |||
[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] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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 |
Property, plant and equipment -
Property, plant and equipment - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, plant and equipment [Abstract] | ||
Land | € 39 | € 47 |
Property, plant and equipment_2
Property, plant and equipment - Property, plant and equipment (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | € 2,682 | |
Additions other than through business combinations, property, plant and equipment | € 231 | |
Assets available for use | 0 | 0 |
Depreciation, property, plant and equipment | 289 | |
Impairment loss recognised in profit or loss, property, plant and equipment | 10 | |
Reclassifications | 122 | (3) |
Increase (decrease) through net exchange differences, property, plant and equipment | (44) | |
Increase (decrease) in property, plant and equipment | (201) | |
Property, plant and equipment at end of period | 2,699 | 2,682 |
IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 387 | |
Property, plant and equipment at end of period | 387 | |
Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,663 | 1,645 |
Additions other than through business combinations, property, plant and equipment | 409 | 571 |
Assets available for use | (5) | (2) |
Acquisitions through business combinations, property, plant and equipment | 53 | |
Depreciation, property, plant and equipment | 355 | 394 |
Impairment loss recognised in profit or loss, property, plant and equipment | 18 | 32 |
Decrease through classified as held for sale, property, plant and equipment | (170) | |
Reclassifications | 0 | (11) |
Increase (decrease) through net exchange differences, property, plant and equipment | 65 | (114) |
Increase (decrease) in property, plant and equipment | (22) | 17 |
Property, plant and equipment at end of period | 1,641 | 1,663 |
Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,663 | |
Property, plant and equipment at end of period | 1,663 | |
Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,020 | 1,221 |
Additions other than through business combinations, property, plant and equipment | 215 | |
Assets available for use | 5 | 2 |
Acquisitions through business combinations, property, plant and equipment | 43 | |
Depreciation, property, plant and equipment | 252 | |
Impairment loss recognised in profit or loss, property, plant and equipment | 4 | |
Decrease through classified as held for sale, property, plant and equipment | 8 | |
Reclassifications | 1 | (91) |
Increase (decrease) through net exchange differences, property, plant and equipment | 39 | |
Increase (decrease) in property, plant and equipment | 38 | |
Property, plant and equipment at end of period | 1,058 | 1,020 |
Gross carrying amount [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,560 | |
Property, plant and equipment at end of period | 1,560 | |
Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 4,415 | 4,279 |
Property, plant and equipment at end of period | 4,273 | 4,415 |
Gross carrying amount [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,560 | 1,839 |
Property, plant and equipment at end of period | 1,724 | 1,560 |
Accumulated depreciation, amortisation and impairment [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (2,752) | |
Property, plant and equipment at end of period | (2,632) | (2,752) |
Accumulated depreciation, amortisation and impairment [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (540) | |
Property, plant and equipment at end of period | (666) | (540) |
Accumulated depreciation and amortisation [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (540) | |
Property, plant and equipment at end of period | (540) | |
Accumulated depreciation and amortisation [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (2,752) | (2,634) |
Property, plant and equipment at end of period | (2,752) | |
Accumulated depreciation and amortisation [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (618) | |
Land and buildings [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 537 | |
Property, plant and equipment at end of period | 537 | |
Land and buildings [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 537 | |
Property, plant and equipment at end of period | 537 | |
Land and buildings [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Additions other than through business combinations, property, plant and equipment | 9 | 28 |
Assets available for use | 72 | 117 |
Acquisitions through business combinations, property, plant and equipment | 0 | |
Depreciation, property, plant and equipment | 53 | 47 |
Impairment loss recognised in profit or loss, property, plant and equipment | 1 | 3 |
Decrease through classified as held for sale, property, plant and equipment | 87 | |
Reclassifications | 6 | |
Increase (decrease) through net exchange differences, property, plant and equipment | 23 | (39) |
Increase (decrease) in property, plant and equipment | (31) | 56 |
Property, plant and equipment at end of period | 506 | |
Land and buildings [member] | Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 481 | |
Land and buildings [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 837 | 1,029 |
Additions other than through business combinations, property, plant and equipment | 150 | 80 |
Assets available for use | 2 | 2 |
Acquisitions through business combinations, property, plant and equipment | 43 | |
Depreciation, property, plant and equipment | 157 | 161 |
Impairment loss recognised in profit or loss, property, plant and equipment | (1) | 5 |
Decrease through classified as held for sale, property, plant and equipment | 7 | |
Reclassifications | 0 | (64) |
Increase (decrease) through net exchange differences, property, plant and equipment | 44 | (43) |
Increase (decrease) in property, plant and equipment | 77 | (192) |
Property, plant and equipment at end of period | 914 | 837 |
Land and buildings [member] | Gross carrying amount [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,076 | |
Property, plant and equipment at end of period | 1,076 | |
Land and buildings [member] | Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,076 | 876 |
Property, plant and equipment at end of period | 1,097 | 1,076 |
Land and buildings [member] | Gross carrying amount [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,147 | 1,355 |
Property, plant and equipment at end of period | 1,332 | 1,147 |
Land and buildings [member] | Accumulated depreciation, amortisation and impairment [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (539) | |
Property, plant and equipment at end of period | (591) | (539) |
Land and buildings [member] | Accumulated depreciation, amortisation and impairment [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (310) | (326) |
Property, plant and equipment at end of period | (418) | (310) |
Land and buildings [member] | Accumulated depreciation and amortisation [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (539) | |
Property, plant and equipment at end of period | (539) | |
Land and buildings [member] | Accumulated depreciation and amortisation [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (395) | |
Machinery [member] | ||
Property, plant and equipment [Line Items] | ||
Increase (decrease) in property, plant and equipment | (20) | |
Machinery [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 478 | |
Additions other than through business combinations, property, plant and equipment | 62 | 60 |
Assets available for use | 110 | 162 |
Acquisitions through business combinations, property, plant and equipment | 9 | |
Depreciation, property, plant and equipment | 144 | 167 |
Impairment loss recognised in profit or loss, property, plant and equipment | 6 | 13 |
Decrease through classified as held for sale, property, plant and equipment | 16 | |
Reclassifications | 2 | (7) |
Increase (decrease) through net exchange differences, property, plant and equipment | 14 | (33) |
Increase (decrease) in property, plant and equipment | 33 | 2 |
Property, plant and equipment at end of period | 511 | 478 |
Machinery [member] | Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 478 | 476 |
Property, plant and equipment at end of period | 478 | |
Machinery [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 55 | 63 |
Additions other than through business combinations, property, plant and equipment | 21 | 53 |
Depreciation, property, plant and equipment | 32 | 55 |
Impairment loss recognised in profit or loss, property, plant and equipment | 5 | 4 |
Reclassifications | (7) | |
Increase (decrease) through net exchange differences, property, plant and equipment | (2) | 5 |
Increase (decrease) in property, plant and equipment | (18) | (8) |
Property, plant and equipment at end of period | 37 | 55 |
Machinery [member] | Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,506 | 1,531 |
Property, plant and equipment at end of period | 1,585 | 1,506 |
Machinery [member] | Gross carrying amount [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 199 | 251 |
Property, plant and equipment at end of period | 176 | 199 |
Machinery [member] | Accumulated depreciation, amortisation and impairment [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (1,028) | (1,055) |
Property, plant and equipment at end of period | (1,074) | (1,028) |
Machinery [member] | Accumulated depreciation, amortisation and impairment [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (144) | (188) |
Property, plant and equipment at end of period | (139) | (144) |
Other equipment [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1 | |
Other equipment [Member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 387 | |
Additions other than through business combinations, property, plant and equipment | 77 | 84 |
Assets available for use | 117 | 160 |
Acquisitions through business combinations, property, plant and equipment | 43 | |
Depreciation, property, plant and equipment | 158 | 180 |
Impairment loss recognised in profit or loss, property, plant and equipment | 11 | 16 |
Decrease through classified as held for sale, property, plant and equipment | 46 | |
Reclassifications | (10) | (1) |
Increase (decrease) through net exchange differences, property, plant and equipment | 16 | (25) |
Increase (decrease) in property, plant and equipment | 29 | 22 |
Property, plant and equipment at end of period | 415 | 387 |
Other equipment [Member] | Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 365 | |
Other equipment [Member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 126 | 127 |
Additions other than through business combinations, property, plant and equipment | 44 | 97 |
Assets available for use | 3 | 3 |
Depreciation, property, plant and equipment | 63 | 73 |
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |
Decrease through classified as held for sale, property, plant and equipment | 1 | |
Reclassifications | 2 | (21) |
Increase (decrease) through net exchange differences, property, plant and equipment | (4) | (6) |
Increase (decrease) in property, plant and equipment | (1) | |
Property, plant and equipment at end of period | 107 | 126 |
Other equipment [Member] | Gross carrying amount [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1 | |
Other equipment [Member] | Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,572 | 1,549 |
Property, plant and equipment at end of period | 1,382 | 1,572 |
Other equipment [Member] | Gross carrying amount [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 213 | 232 |
Property, plant and equipment at end of period | 216 | 213 |
Other equipment [Member] | Accumulated depreciation, amortisation and impairment [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (1,185) | (1,184) |
Property, plant and equipment at end of period | (967) | (1,185) |
Other equipment [Member] | Accumulated depreciation, amortisation and impairment [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (86) | |
Property, plant and equipment at end of period | (109) | (86) |
Construction in progress [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 261 | 323 |
Additions other than through business combinations, property, plant and equipment | 261 | 399 |
Assets available for use | (305) | (441) |
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 |
Decrease through classified as held for sale, property, plant and equipment | 20 | |
Reclassifications | 1 | (3) |
Increase (decrease) through net exchange differences, property, plant and equipment | 10 | (17) |
Increase (decrease) in property, plant and equipment | (53) | (62) |
Property, plant and equipment at end of period | 208 | 261 |
Construction in progress [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1 | |
Additions other than through business combinations, property, plant and equipment | 2 | |
Assets available for use | (2) | |
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 | 0 |
Increase (decrease) in property, plant and equipment | (1) | |
Property, plant and equipment at end of period | 1 | |
Construction in progress [member] | Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 261 | 323 |
Property, plant and equipment at end of period | 208 | 261 |
Construction in progress [member] | Gross carrying amount [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1 | |
Property, plant and equipment at end of period | 1 | |
Office equipment [member] | Accumulated depreciation, amortisation and impairment [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | € (86) | (105) |
Property, plant and equipment at end of period | € (86) |
Property, plant and equipment_3
Property, plant and equipment - Useful lives of property, plant and equipment (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings [member] | Bottom of range [member] | |
Property, plant and equipment [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 [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 [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 [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 [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 [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, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |||
Goodwill [Line Items] | ||||||||
Goodwill | € 10,637 | € 8,014 | € 10,637 | € 8,014 | ||||
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 195 | (204) | ||||||
Impairment loss recognised in profit or loss, goodwill | 15 | [1],[2] | 144 | [2],[3] | € 97 | [3] | ||
Population Health Management [member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 303 | 303 | ||||||
Impairment loss recognised in profit or loss, goodwill | 108 | |||||||
Recoverable amount of asset or cash-generating unit | 195 | 195 | ||||||
Personal Emergency Response and Senior Living [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Impairment loss recognised in profit or loss, goodwill | 13 | |||||||
Aging & Caregiving [member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | € 63 | |||||||
Aging & Caregiving [member] | Individual assets or cash-generating units [member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 186 | 186 | ||||||
Impairment loss recognised in profit or loss, goodwill | 36 | |||||||
Recoverable amount of asset or cash-generating unit | 150 | 150 | ||||||
Sleep & Respiratory Care [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 2,031 | 1,915 | € 2,031 | 1,915 | ||||
Sensitivity pre-tax discount rate | 200 | |||||||
Sensitivity compound long-term sales growth | 840 | |||||||
Sensitivity terminal value | 29.00% | |||||||
BioTelemetry [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 1,776 | € 1,776 | ||||||
Capsule Technologies [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 325 | 325 | ||||||
Intact Vascular [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | 155 | 155 | ||||||
Goodwill [member] | ||||||||
Goodwill [Line Items] | ||||||||
Increase (decrease) in goodwill | € 640 | 2,623 | ||||||
Increase (decrease) through net exchange differences, intangible assets other than goodwill | € 732 | |||||||
Impairment loss recognised in profit or loss, goodwill | 15 | |||||||
Decrease through classified as held for sale, goodwill | € 189 | |||||||
Goodwill [member] | Population Health Management [member] | ||||||||
Goodwill [Line Items] | ||||||||
Impairment loss recognised in profit or loss, goodwill | € 144 | |||||||
[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] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Goodwill - Goodwill (Detail)
Goodwill - Goodwill (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Goodwill [Line Items] | ||||||
Impairment loss recognised in profit or loss, goodwill | € 15 | [1],[2] | € 144 | [2],[3] | € 97 | [3] |
Goodwill [member] | ||||||
Goodwill [Line Items] | ||||||
Intangible assets and goodwill | 10,637 | 8,014 | 8,654 | |||
Acquisitions through business combinations, intangible assets and goodwill | 2,095 | 189 | ||||
Impairment loss recognised in profit or loss, goodwill | 15 | |||||
Decrease through classified as held for sale, intangible assets and goodwill | 189 | 12 | ||||
Increase (decrease) through net exchange differences, intangible assets and goodwill | 732 | (673) | ||||
Gross carrying amount [member] | Goodwill [member] | ||||||
Goodwill [Line Items] | ||||||
Intangible assets and goodwill | 11,793 | 9,094 | 10,182 | |||
Accumulated impairment [member] | Goodwill [member] | ||||||
Goodwill [Line Items] | ||||||
Intangible assets and goodwill | 1,156 | 1,080 | € 1,528 | |||
Impairment loss recognised in profit or loss, goodwill | € 15 | € (144) | ||||
[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] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Goodwill - Goodwill allocated t
Goodwill - Goodwill allocated to the cash-generating units (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||
Goodwill | € 10,637 | € 8,014 | ||
Goodwill [member] | ||||
Goodwill [Line Items] | ||||
Intangible assets and goodwill | 10,637 | 8,014 | € 8,654 | |
Ambulatory Monitoring & Diagnostics [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | [1] | 1,897 | ||
Hospital Patient Monitoring [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | [2] | 1,663 | 1,246 | |
Image-Guided Therapy [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,802 | 2,610 | ||
Sleep & Respiratory Care [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,031 | 1,915 | ||
Other (units carrying a non-significant goodwill balance) [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,245 | 2,244 | ||
Cash-generating units [member] | Goodwill [member] | ||||
Goodwill [Line Items] | ||||
Intangible assets and goodwill | € 10,637 | € 8,014 | ||
[1] | Includes provisional goodwill related to the acquisition of BioTelemetry, see Acquisitions and divestments | |||
[2] | Previously named Monitoring & Analytics. Includes provisional goodwill related to the acquisition of Capsule Technologies, see Acquisitions and divestments |
Goodwill - Key assumptions (Det
Goodwill - Key assumptions (Detail) | Dec. 31, 2021 | Dec. 31, 2020 | |||
Goodwill [Line Items] | |||||
Discount rate applied to cash flow projections | 6.50% | ||||
Ambulatory Monitoring & Diagnostics [Member] | |||||
Goodwill [Line Items] | |||||
Initial forecast period | 24.50% | ||||
Growth rate used to extrapolate cash flow projections | 11.90% | ||||
Used to calculate terminal value | 2.50% | ||||
Ambulatory Monitoring & Diagnostics [Member] | Goodwill [member] | |||||
Goodwill [Line Items] | |||||
Discount rate applied to cash flow projections | 7.30% | ||||
Hospital Patient Monitoring [Member] | |||||
Goodwill [Line Items] | |||||
Initial forecast period | 5.40% | [1] | (0.30%) | [2] | |
Growth rate used to extrapolate cash flow projections | 3.40% | [1] | 3.30% | [2] | |
Used to calculate terminal value | 2.50% | [1] | 2.50% | [2] | |
Discount rate applied to cash flow projections | [1] | 7.80% | |||
Hospital Patient Monitoring [Member] | Goodwill [member] | |||||
Goodwill [Line Items] | |||||
Discount rate applied to cash flow projections | [2] | 9.40% | |||
Image-Guided Therapy [Member] | |||||
Goodwill [Line Items] | |||||
Initial forecast period | 10.20% | 8.60% | |||
Growth rate used to extrapolate cash flow projections | 5.40% | 4.90% | |||
Used to calculate terminal value | 2.50% | 2.50% | |||
Discount rate applied to cash flow projections | 8.90% | ||||
Image-Guided Therapy [Member] | Goodwill [member] | |||||
Goodwill [Line Items] | |||||
Discount rate applied to cash flow projections | 9.00% | ||||
Sleep & Respiratory Care [Member] | |||||
Goodwill [Line Items] | |||||
Initial forecast period | 9.20% | (1.20%) | |||
Growth rate used to extrapolate cash flow projections | 5.00% | 4.40% | |||
Used to calculate terminal value | 2.50% | 2.50% | |||
Discount rate applied to cash flow projections | 9.20% | 9.70% | |||
[1] | Previously named Monitoring & Analytics. | ||||
[2] | Previously named Monitoring & Analytics. |
Intangible assets excluding g_3
Intangible assets excluding goodwill - Text Details (Detail) € in Millions | 12 Months Ended | ||
Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Intangible assets excluding goodwill [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | € 841 | € 185 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | € 126 | 235 | |
Discount rate applied to cash flow projections | 6.50% | ||
Intangible assets other than goodwill | € 3,650 | 2,997 | € 3,466 |
BioTelemetry [Member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Discount rate applied to cash flow projections | 10.00% | ||
Technology-based intangible assets [member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | € 235 | 175 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 57 | 118 | |
Intangible assets other than goodwill | 1,000 | 869 | 961 |
Technology-based intangible assets [member] | BioTelemetry [Member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Intangible assets other than goodwill | € 162 | ||
Remaining amortisation period of intangible assets material to entity | 11 years | ||
Technology-based intangible assets [member] | Image Guided Therapy business group [member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | € 55 | ||
Intangible assets other than goodwill | € 210 | € 212 | |
Remaining amortisation period of intangible assets material to entity | 11 years | 12 years | |
Technology-based intangible assets [member] | Diagnosis & Treatment [Member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Recoverable amount of asset or cash-generating unit | € 29 | ||
Product development [Member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | € 0 | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 51 | 62 | |
Intangible assets other than goodwill | 599 | € 622 | 592 |
Product development [Member] | Connected Care [Member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | € 35 | ||
Brand names, customer relationships, technology and other intangible assets [Member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Weighted average expected remaining life | 9.6 | 9.1 | |
Customer-related intangible assets [member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Acquisitions through business combinations, intangible assets other than goodwill | € 544 | € 1 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 3 | 1 | |
Intangible assets other than goodwill | 1,143 | 651 | € 890 |
Customer-related intangible assets [member] | BioTelemetry [Member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Intangible assets other than goodwill | € 391 | ||
Remaining amortisation period of intangible assets material to entity | 15 years | ||
Customer-related intangible assets [member] | Image Guided Therapy business group [member] | |||
Intangible assets excluding goodwill [Line Items] | |||
Intangible assets other than goodwill | € 292 | € 287 | |
Remaining amortisation period of intangible assets material to entity | 16 years | 17 years |
Intangible assets excluding g_4
Intangible assets excluding goodwill - Intangible assets excluding goodwill (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | € 2,997 | € 3,466 |
Additions other than through business combinations, intangible assets other than goodwill | 392 | 449 |
Assets available for use | 0 | 0 |
Acquisitions through business combinations, intangible assets other than goodwill | 841 | 185 |
Amortisation, intangible assets other than goodwill | 568 | 560 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 126 | 235 |
Decrease through classified as held for sale, intangible assets other than goodwill | 82 | 102 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 195 | (204) |
Increase (decrease) in intangible assets other than goodwill | 653 | (468) |
Intangible assets other than goodwill at end of period | 3,650 | 2,997 |
Brand names [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 120 | 184 |
Acquisitions through business combinations, intangible assets other than goodwill | 62 | 8 |
Amortisation, intangible assets other than goodwill | 21 | 26 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | |
Decrease through classified as held for sale, intangible assets other than goodwill | 10 | 33 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 12 | (13) |
Increase (decrease) in intangible assets other than goodwill | 42 | (65) |
Intangible assets other than goodwill at end of period | 162 | 120 |
Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 651 | 890 |
Additions other than through business combinations, intangible assets other than goodwill | 1 | |
Acquisitions through business combinations, intangible assets other than goodwill | 544 | 1 |
Amortisation, intangible assets other than goodwill | 126 | 121 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 3 | 1 |
Decrease through classified as held for sale, intangible assets other than goodwill | 3 | 55 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 80 | (64) |
Increase (decrease) in intangible assets other than goodwill | 492 | (239) |
Intangible assets other than goodwill at end of period | 1,143 | 651 |
Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 869 | 961 |
Additions other than through business combinations, intangible assets other than goodwill | 9 | 12 |
Acquisitions through business combinations, intangible assets other than goodwill | 235 | 175 |
Amortisation, intangible assets other than goodwill | 114 | 103 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 57 | 118 |
Decrease through classified as held for sale, intangible assets other than goodwill | 11 | 1 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 69 | (58) |
Increase (decrease) in intangible assets other than goodwill | 131 | (92) |
Intangible assets other than goodwill at end of period | 1,000 | 869 |
Product development [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 622 | 592 |
Additions other than through business combinations, intangible assets other than goodwill | 1 | 0 |
Assets available for use | 247 | 373 |
Acquisitions through business combinations, intangible assets other than goodwill | 0 | |
Amortisation, intangible assets other than goodwill | 219 | 221 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 51 | 62 |
Decrease through classified as held for sale, intangible assets other than goodwill | 17 | 8 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 17 | (53) |
Increase (decrease) in intangible assets other than goodwill | (22) | 30 |
Intangible assets other than goodwill at end of period | 599 | 622 |
Product development construction in progress [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 398 | 523 |
Additions other than through business combinations, intangible assets other than goodwill | 261 | 305 |
Assets available for use | (247) | (374) |
Amortisation, intangible assets other than goodwill | 0 | 0 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 15 | 44 |
Decrease through classified as held for sale, intangible assets other than goodwill | 6 | 2 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 23 | (10) |
Increase (decrease) in intangible assets other than goodwill | 17 | (125) |
Intangible assets other than goodwill at end of period | 414 | 398 |
Computer software [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 295 | 257 |
Additions other than through business combinations, intangible assets other than goodwill | 117 | 127 |
Assets available for use | 0 | |
Acquisitions through business combinations, intangible assets other than goodwill | 0 | |
Amortisation, intangible assets other than goodwill | 85 | 84 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 2 |
Decrease through classified as held for sale, intangible assets other than goodwill | 34 | 3 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | (7) | 0 |
Increase (decrease) in intangible assets other than goodwill | (8) | 38 |
Intangible assets other than goodwill at end of period | 287 | 295 |
Other intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 44 | 59 |
Additions other than through business combinations, intangible assets other than goodwill | 2 | 2 |
Assets available for use | 0 | 0 |
Acquisitions through business combinations, intangible assets other than goodwill | 0 | 0 |
Amortisation, intangible assets other than goodwill | 3 | 4 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 0 | 8 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 1 | (6) |
Increase (decrease) in intangible assets other than goodwill | 1 | (15) |
Intangible assets other than goodwill at end of period | 44 | 44 |
Gross carrying amount [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 8,883 | 9,579 |
Intangible assets other than goodwill at end of period | 9,944 | 8,883 |
Gross carrying amount [member] | Brand names [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 556 | 709 |
Intangible assets other than goodwill at end of period | 644 | 556 |
Gross carrying amount [member] | Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,036 | 2,476 |
Intangible assets other than goodwill at end of period | 2,590 | 2,036 |
Gross carrying amount [member] | Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,434 | 2,491 |
Intangible assets other than goodwill at end of period | 2,605 | 2,434 |
Gross carrying amount [member] | Product development [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,519 | 2,387 |
Intangible assets other than goodwill at end of period | 2,701 | 2,519 |
Gross carrying amount [member] | Product development construction in progress [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 480 | 578 |
Intangible assets other than goodwill at end of period | 505 | 480 |
Gross carrying amount [member] | Computer software [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 723 | 784 |
Intangible assets other than goodwill at end of period | 754 | 723 |
Gross carrying amount [member] | Other intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 135 | 154 |
Intangible assets other than goodwill at end of period | 146 | 135 |
Accumulated depreciation, amortisation and impairment [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (5,886) | (6,113) |
Intangible assets other than goodwill at end of period | (6,294) | (5,886) |
Accumulated depreciation, amortisation and impairment [member] | Brand names [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (437) | (524) |
Intangible assets other than goodwill at end of period | (481) | (437) |
Accumulated depreciation, amortisation and impairment [member] | Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,385) | (1,587) |
Intangible assets other than goodwill at end of period | (1,447) | (1,385) |
Accumulated depreciation, amortisation and impairment [member] | Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,565) | (1,530) |
Intangible assets other than goodwill at end of period | (1,605) | (1,565) |
Accumulated depreciation, amortisation and impairment [member] | Product development [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,897) | (1,795) |
Intangible assets other than goodwill at end of period | (2,102) | (1,897) |
Accumulated depreciation, amortisation and impairment [member] | Product development construction in progress [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (83) | (56) |
Intangible assets other than goodwill at end of period | (91) | (83) |
Accumulated depreciation, amortisation and impairment [member] | Computer software [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (427) | (527) |
Intangible assets other than goodwill at end of period | (467) | (427) |
Accumulated depreciation, amortisation and impairment [member] | Other intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (91) | (94) |
Intangible assets other than goodwill at end of period | € (101) | € (91) |
Intangible assets excluding g_5
Intangible assets excluding goodwill - Expected useful lives of intangible assets excluding goodwill (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Brand names [member] | Bottom of range [member] | |
Intangible assets excluding goodwill [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 [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 20 years |
Customer-related intangible assets [member] | Bottom of range [member] | |
Intangible assets excluding goodwill [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 [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 25 years |
Technology-based intangible assets [member] | Bottom of range [member] | |
Intangible assets excluding goodwill [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 [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 20 years |
Other intangible assets [member] | Bottom of range [member] | |
Intangible assets excluding goodwill [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 [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 10 years |
Computer software [member] | Bottom of range [member] | |
Intangible assets excluding goodwill [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 [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 [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 [Line Items] | |
Useful life measured as period of time, intangible assets other than goodwill | 10 years |
Other financial assets - Text D
Other financial assets - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other financial assets [Abstract] | |||
Other current financial assets | € 2 | € 0 | € 1 |
Non-current investments in equity instruments designated at fair value through other comprehensive income | € 273 | € 119 |
Other financial assets - Other
Other financial assets - Other non-current financial assets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other financial assets [Line Items] | |||
Non-current financial assets at fair value through profit or loss | € 283 | € 248 | € 136 |
Non-current financial assets measured at fair value through other comprehensive income | 300 | 146 | 72 |
Non-current financial assets at amortised cost | 47 | 37 | 40 |
Other non-current financial assets | 630 | 430 | € 248 |
Acquisitions | 123 | 131 | |
Sales redemptions | 126 | 65 | |
Value adjustment through OCI | (43) | 3 | |
Value adjustment through P&L | 95 | 133 | |
Translation Differences And Other | 29 | (17) | |
Reclassifications | 122 | (3) | |
Financial assets at fair value through profit or loss, category [member] | |||
Other financial assets [Line Items] | |||
Acquisitions | 54 | 44 | |
Sales redemptions | 122 | 59 | |
Value adjustment through OCI | 0 | 0 | |
Value adjustment through P&L | 95 | 133 | |
Translation Differences And Other | 8 | (6) | |
Reclassifications | (1) | 0 | |
Financial assets at fair value through other comprehensive income, category [member] | |||
Other financial assets [Line Items] | |||
Acquisitions | 59 | 82 | |
Sales redemptions | 0 | 3 | |
Value adjustment through OCI | (43) | 3 | |
Value adjustment through P&L | 0 | 0 | |
Translation Differences And Other | 19 | (5) | |
Reclassifications | 120 | (3) | |
Financial assets at amortised cost, category [member] | |||
Other financial assets [Line Items] | |||
Acquisitions | 10 | 4 | |
Sales redemptions | 3 | 2 | |
Value adjustment through OCI | 0 | 0 | |
Value adjustment through P&L | 0 | 0 | |
Translation Differences And Other | 2 | (6) | |
Reclassifications | € 2 | € 0 |
Other assets - Text Details (De
Other assets - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other assets [Line Items] | ||
Current contract assets | € 290 | € 229 |
Non-current assets [member] | ||
Other assets [Line Items] | ||
Non-current prepaid expenses | 129 | 66 |
Current assets [Member] | ||
Other assets [Line Items] | ||
Other current assets | 493 | 424 |
Accrued income including contract assets | 31 | 26 |
Current prepaid expenses | € 172 | € 169 |
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 | € 177 | € 180 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories [Abstract] | ||
Current raw materials and current production supplies | € 1,143 | € 992 |
Current work in progress | 646 | 537 |
Current finished goods | 1,660 | 1,464 |
Current inventories | € 3,450 | € 2,993 |
Receivables - Text Details (Det
Receivables - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 30, 2020 |
Receivables [Line Items] | |||
Signify indemnification | € 46 | € 55 | |
Advance income tax payment | 78 | 78 | |
Trade and other current receivables | 3,787 | 4,156 | |
Current trade receivables | 3,559 | 3,928 | |
Other current receivables | 188 | € 191 | |
Financial assets individually assessed for credit losses [member] | |||
Receivables [Line Items] | |||
Allowance account for credit losses of financial assets | 188 | 186 | |
Diagnosis & Treatment [Member] | |||
Receivables [Line Items] | |||
Loans and advances to customers | 44 | 29 | |
Current trade receivables | 1,759 | 1,653 | |
Other US [Member] | |||
Receivables [Line Items] | |||
Insurance receivables | 37 | 38 | |
Associates [member] | |||
Receivables [Line Items] | |||
Other current receivables | € 40 | € 37 |
Receivables - Accounts receivab
Receivables - Accounts receivables-net (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Line Items] | ||
Current trade receivables | € 3,559 | € 3,928 |
Diagnosis & Treatment [Member] | ||
Receivables [Line Items] | ||
Current trade receivables | 1,759 | 1,653 |
Connected Care [Member] | ||
Receivables [Line Items] | ||
Current trade receivables | 980 | 1,124 |
Personal Health [Member] | ||
Receivables [Line Items] | ||
Current trade receivables | 575 | 1,017 |
Other Segments [member] | ||
Receivables [Line Items] | ||
Current trade receivables | € 245 | € 133 |
Receivables - Aging analysis (D
Receivables - Aging analysis (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Line Items] | ||
Current trade receivables | € 3,559 | € 3,928 |
Current [member] | ||
Receivables [Line Items] | ||
Current trade receivables | 3,075 | 3,413 |
Not later than one month [member] | ||
Receivables [Line Items] | ||
Current trade receivables | 160 | 189 |
Later than one month and not later than six months [member] | ||
Receivables [Line Items] | ||
Current trade receivables | 245 | 224 |
Later than six months [member] | ||
Receivables [Line Items] | ||
Current trade receivables | € 79 | € 102 |
Receivables - Allowance for acc
Receivables - Allowance for accounts receivable (Detail) - Doubtful accounts receivable [Member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Receivables [Line Items] | |||
Allowance account for credit losses of financial assets at beginning of period | € 195 | € 211 | |
Additional allowance recognised in profit or loss, allowance account for credit losses of financial assets | 4 | 19 | |
Utilisation, allowance account for credit losses of financial assets | [1] | (17) | (17) |
Increase (decrease) through other changes, allowance account for credit losses of financial assets | 16 | (16) | |
Allowance account for credit losses of financial assets at end of period | 190 | € 195 | |
Other assets [member] | |||
Receivables [Line Items] | |||
Utilisation, allowance account for credit losses of financial assets | € (8) | ||
[1] | Write-offs for which an allowance was previously provided. |
Equity - Text Details (Detail)
Equity - Text Details (Detail) - EUR (€) € / shares in Units, € in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 20, 2021 | Nov. 23, 2021 | Nov. 19, 2021 | Sep. 30, 2021 | Jul. 26, 2021 | Jun. 30, 2021 | Nov. 12, 2020 | Jan. 29, 2019 | Nov. 12, 2018 | ||||||
Equity [Line Items] | |||||||||||||||||||||
Number of shares authorised | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||||||||||||||
Notional amount | € 745 | € 745 | |||||||||||||||||||
Number of shares purchased through forward contracts | 2,000,000 | 2,000,000 | 5,000,000 | ||||||||||||||||||
Forward price for unsettled (open) forward contracts | € 44.85 | € 44.85 | € 34.85 | € 31.89 | |||||||||||||||||
Increase (Decrease) retained earnings connected to long-term incentive | € 61 | ||||||||||||||||||||
Purchase of treasury shares | € 757 | € 130 | € 621 | ||||||||||||||||||
The number of shares bought back after selling (unwinding) of options | 496,576 | ||||||||||||||||||||
Reduction of treasury shares | 33,500,000 | ||||||||||||||||||||
Cancellation of treasury shares | € 1,228 | ||||||||||||||||||||
Borrowings | [1] | € 6,980 | € 6,980 | € 6,934 | € 5,447 | ||||||||||||||||
Dividends paid, ordinary shares per share | [2] | € 0.85 | € 0.85 | € 0.85 | |||||||||||||||||
Dividends paid, ordinary shares | € 773 | € 758 | |||||||||||||||||||
Percentage of shareholders electing share dividend | 38.00% | 42.00% | |||||||||||||||||||
Number of shares issued | 6,345,968 | 6,345,968 | 18,080,198 | 9,079,538 | |||||||||||||||||
Settlement of cash dividend | € 482 | € 453 | |||||||||||||||||||
Shareholder equity subject to limitations | € 1,947 | 1,947 | € 831 | ||||||||||||||||||
Shareholder Equity Subject To Limitations Ordinary Shares | 177 | 177 | 182 | ||||||||||||||||||
Legal reserves required by Dutch law | 654 | 654 | 626 | ||||||||||||||||||
Equity | 14,475 | [1] | 14,475 | [1] | 11,901 | [1] | 12,625 | [1] | € 12,084 | ||||||||||||
Currency translation differences | 58 | ||||||||||||||||||||
Purchase forward contracts [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Notional amount | € 203 | € 203 | € 174 | € 90 | € 319 | ||||||||||||||||
Share buyback program [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Notional amount | € 1,500 | ||||||||||||||||||||
Borrowings | € 1,500 | € 1,500 | |||||||||||||||||||
Euro [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of call options unwound | 374,826 | 374,826 | |||||||||||||||||||
Number of options outstanding | 295,630 | 295,630 | |||||||||||||||||||
Dividends paid, ordinary shares | € 775 | ||||||||||||||||||||
US Dollar [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of call options unwound | 121,750 | 121,750 | |||||||||||||||||||
Number of options outstanding | 152,565 | 152,565 | |||||||||||||||||||
Ordinary shares [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of shares authorised | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||||||||||||||
Number of shares issued and fully paid | 883,898,696 | 883,898,696 | 911,053,001 | 896,733,721 | |||||||||||||||||
Par value per share | € 0.2 | € 0.2 | |||||||||||||||||||
Treasury shares [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Purchase of treasury shares | € 758 | € 130 | € 621 | ||||||||||||||||||
Cancellation of treasury shares | 1,228 | 152 | 1,316 | ||||||||||||||||||
Equity | € (476) | (476) | € (199) | € (201) | (399) | ||||||||||||||||
Treasury shares [member] | Euro [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Cash outflow for share purchase transactions related to employee option and share plans and reduction of share capital | 1,636 | ||||||||||||||||||||
Cash inflow for settlement of share-based compensation plans | € 23 | ||||||||||||||||||||
Share repurchase LTI 2021 [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of treasury shares | 2,000,000 | 2,000,000 | 4,000,000 | 4,000,000 | 2,000,000 | ||||||||||||||||
Increase (Decrease) retained earnings connected to long-term incentive | € 62 | € 126 | € 130 | ||||||||||||||||||
Share repurchase LTI 2021 [Member] | Performance share plans [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of shares purchased through forward contracts | 5,500,000 | ||||||||||||||||||||
Share repurchase LTI 2020 [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of treasury shares | 6,000,000 | ||||||||||||||||||||
Share repurchase program [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of treasury shares | 1,500,000 | 1,500,000 | 15,500,000 | 2,500,000 | 2,500,000 | 10,000,000 | |||||||||||||||
Purchase of treasury shares | € 1,500 | 174 | |||||||||||||||||||
Purchase of treasury shares, number of | 800,000 | 21,000,000 | |||||||||||||||||||
Share repurchase LTI [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of treasury shares | 10,000,000 | 10,000,000 | |||||||||||||||||||
Increase (Decrease) retained earnings connected to long-term incentive | € 319 | ||||||||||||||||||||
Forward share repurchase contracts [Member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Number of treasury shares | 20,000,000 | 20,000,000 | |||||||||||||||||||
Notional amount | € 731 | ||||||||||||||||||||
Forward price for unsettled (open) forward contracts | € 36.4 | € 37.36 | |||||||||||||||||||
Purchase of treasury shares | € 745 | ||||||||||||||||||||
Share repurchase program 2019 [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Purchase of treasury shares | 1,500 | ||||||||||||||||||||
Percentage of share buyback completed | 50.30% | ||||||||||||||||||||
Purchased call options [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Additional cash payment for call options sale | 9 | ||||||||||||||||||||
Reserve of exchange differences on translation [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Equity | € 1,117 | 1,117 | € (58) | 978 | 739 | ||||||||||||||||
Reserve of cash flow hedges [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Equity | (25) | (25) | 23 | (24) | (10) | ||||||||||||||||
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Equity | € (344) | € (344) | € (305) | € (303) | € (181) | ||||||||||||||||
Dividend distribution [Member] | Bottom of range [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Dividend payout ratio | 40.00% | ||||||||||||||||||||
Dividend distribution [Member] | Top of range [member] | |||||||||||||||||||||
Equity [Line Items] | |||||||||||||||||||||
Dividend payout ratio | 50.00% | ||||||||||||||||||||
[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. |
Equity - Outstanding number of
Equity - Outstanding number of shares (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Line Items] | |||
Issuance of new shares | 48,757 | ||
Ordinary shares [member] | |||
Equity [Line Items] | |||
Number of shares outstanding at end of period | 870,182,445 | 905,128,293 | 890,973,790 |
Dividend distributed | 6,345,968 | 18,080,198 | 9,079,538 |
Purchase of treasury shares, number of | (45,486,392) | (8,669,622) | (40,390,495) |
Re-issuance of treasury shares, number of | 4,194,577 | 4,695,170 | 8,100,660 |
Equity - Employee option and sh
Equity - Employee option and share plan transactions (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Line Items] | |||
Purchase of treasury shares | € 757 | € 130 | € 621 |
Treasury shares for share-based payments [Member] | |||
Equity [Line Items] | |||
Shares acquired | 3,996,576 | 5,351,411 | 5,497,675 |
Average market price | € 36.15 | € 33.81 | € 34.25 |
Purchase of treasury shares | € 144 | € 181 | € 188 |
Shares delivered | 4,194,577 | 4,695,170 | 8,100,660 |
Average price (FIFO) | € 34.14 | € 34.35 | € 32.87 |
Cost of delivered shares | € 143 | € 161 | € 266 |
Shares in treasury, at the end of the period | 5,726,708 | 5,924,708 | 5,268,467 |
Cost of treasury shares for employee options | € 201 | € 199 | € 180 |
Equity - Share capital transact
Equity - Share capital transactions (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Line Items] | |||
Purchase of treasury shares | € 757 | € 130 | € 621 |
Reduction of treasury shares | 33,500,000 | ||
Cancellation of treasury shares | € 1,228 | ||
Treasury shares transactions [Member] | |||
Equity [Line Items] | |||
Shares acquired | 41,489,816 | 3,318,211 | 34,892,820 |
Average market price | € 36.22 | € 39.21 | € 34.29 |
Purchase of treasury shares | € 1,503 | € 130 | € 1,196 |
Reduction of treasury shares | 33,500,000 | 3,809,675 | 38,541,356 |
Cancellation of treasury shares | € 1,216 | € 152 | € 1,316 |
Shares in treasury, at the end of the period | 7,989,816 | 491,464 | |
Total cost | € 287 | € 22 |
Equity - Composition of net deb
Equity - Composition of net debt and group equity (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Equity [Abstract] | ||||||||
Non-current portion of non-current borrowings | [1] | € 6,473 | € 5,705 | € 4,939 | ||||
Current borrowings and current portion of non-current borrowings | [1] | 506 | 1,229 | 508 | ||||
Borrowings | [1] | 6,980 | 6,934 | 5,447 | ||||
Cash and cash equivalents | [2] | 2,303 | [1] | 3,226 | [1] | 1,425 | [1] | € 1,688 |
Net debt | [1] | 4,676 | 3,708 | 4,022 | ||||
Equity attributable to owners of parent | [1] | 14,438 | 11,870 | 12,597 | ||||
Non-controlling interests | [1] | 36 | 31 | 28 | ||||
Equity | € 14,475 | [1] | € 11,901 | [1] | € 12,625 | [1] | € 12,084 | |
Net debt and group equity ratio | [1] | 24:76 | 24:76 | 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 | |||||||
[2] | 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 in the accompanying notes of the consolidated financial statements. |
Equity - Adjusted income from c
Equity - Adjusted income from continuing operations attributable to shareholders (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Equity [Abstract] | |||||||
Profit (loss) | [1] | € 3,323 | [2],[3] | € 1,195 | [3],[4] | € 1,173 | [4] |
Profit (loss) from discontinued operations | [1] | 2,711 | [2],[3] | 196 | [4],[5] | 183 | [4],[5] |
Profit (loss) from continuing operations | [5] | 612 | [2] | 999 | [2] | 990 | |
Income from continuing operations attributable to non-controlling interests | [2],[3] | (4) | (8) | ||||
Income from continuing operations attributable to owners of parent | [2],[3] | 608 | 991 | ||||
Amortization of acquired intangible assets | [4] | 322 | [3] | 377 | [3] | 344 | |
Impairment loss recognised in profit or loss, goodwill | 15 | [2],[3] | 144 | [3],[4] | 97 | [4] | |
Restructuring and acquisition-related charges | 95 | [2],[3] | 195 | [3],[4] | 310 | [4] | |
Other items | 1,069 | [2],[3] | 299 | [3],[4] | 153 | [4] | |
Net finance expenses | [2],[3] | (84) | (125) | ||||
Tax impact of adjusted items | [2],[3] | (527) | (285) | ||||
Adjusted Income from continuing operations attributable to shareholders | [2],[3] | € 1,497 | € 1,594 | € 1,622 | |||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||
[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] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[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, $ in Billions | Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Nov. 23, 2021EUR (€) | Jul. 31, 2021EUR (€) | Jul. 26, 2021EUR (€) | May 31, 2021EUR (€) | May 19, 2021EUR (€) | Feb. 28, 2021EUR (€) | Dec. 31, 2020EUR (€) | Nov. 12, 2020EUR (€) | Dec. 31, 2019EUR (€) | Jan. 29, 2019EUR (€) | |
Debt [Line Items] | |||||||||||||
Notional amount | € 745 | ||||||||||||
Euro Medium-Term Note program | € 10,000 | € 10,000 | |||||||||||
Change of Control Triggering Event, potentially required purchase price related to principal amount | 101.00% | 101.00% | |||||||||||
Borrowings | [1] | € 6,980 | € 6,934 | € 5,447 | |||||||||
Weighted average [member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Borrowings, interest rate | 2.10% | 2.10% | 2.00% | ||||||||||
Commercial Paper Programme [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | $ 2.5 | € 150 | € 300 | ||||||||||
Committed revolving credit facility [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Undrawn borrowing facilities | € 1,000 | ||||||||||||
Bilateral loans, total [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Current borrowings | € 500 | ||||||||||||
Bilateral loans, single [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Current borrowings | € 250 | ||||||||||||
Share buyback program [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | € 1,500 | ||||||||||||
Borrowings | € 1,500 | € 1,500 | |||||||||||
Share buyback program [Member] | Forward contract [member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | 731 | ||||||||||||
Matured [member] | Forward contract [member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | 745 | € 745 | |||||||||||
Purchase forward contracts [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | 203 | € 90 | 174 | € 319 | |||||||||
Purchase forward contracts [Member] | Forward contract [member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | € 123 | 126 | |||||||||||
Purchase forward contracts [Member] | Forward contract [member] | Share repurchase LTI 2021 [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | € 90 | ||||||||||||
Purchase forward contracts [Member] | Forward contract [member] | Share repurchase LTI 2020 [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | 174 | ||||||||||||
Unsecured EUR Bonds Due 30/03/2025 1 3/8% [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | € 500 | ||||||||||||
Borrowings, interest rate | 1.375% | ||||||||||||
Unsecured EUR Bonds Due 30/03/2030 2% [Member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Notional amount | € 500 | ||||||||||||
Borrowings, interest rate | 2.00% | ||||||||||||
Bank borrowings [Member] | Weighted average [member] | |||||||||||||
Debt [Line Items] | |||||||||||||
Borrowings, interest rate | 1.20% | 1.20% | 5.90% | ||||||||||
[1] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Debt - Long-term debt (Detail)
Debt - Long-term debt (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | € 6,933 | € 6,857 | ||
Non-current portion of non-current borrowings | [1] | € 6,473 | 5,705 | € 4,939 |
Borrowings, maturity | 6.0 | |||
Current portion of non-current borrowings | € 459 | 1,153 | ||
Forward contract [member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | 934 | 982 | ||
Non-current portion of non-current borrowings | 738 | 113 | ||
Current portion of non-current borrowings | 196 | 869 | ||
Lease liabilities [member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | 1,220 | 1,216 | ||
Current portion of non-current borrowings | 257 | 267 | ||
Bank borrowings [Member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | 203 | 205 | ||
Non-current portion of non-current borrowings | 202 | 203 | ||
Current portion of non-current borrowings | 1 | 1 | ||
Other long-term debt [Member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | 30 | 16 | ||
Non-current portion of non-current borrowings | 26 | |||
Current portion of non-current borrowings | 5 | 15 | ||
US Dollar [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | 1,313 | 1,210 | ||
Non-current portion of non-current borrowings | 1,313 | |||
Euro [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | € 3,233 | € 3,229 | ||
Weighted average [member] | ||||
Debt [Line Items] | ||||
Borrowings, maturity | 6.0 | 6.3 | ||
Borrowings, interest rate | 2.10% | 2.00% | ||
Weighted average [member] | Forward contract [member] | ||||
Debt [Line Items] | ||||
Borrowings, maturity | 1.6 | 0.9 | ||
Weighted average [member] | Lease liabilities [member] | ||||
Debt [Line Items] | ||||
Borrowings, maturity | 4.2 | 3.9 | ||
Borrowings, interest rate | 2.10% | 2.10% | ||
Weighted average [member] | Bank borrowings [Member] | ||||
Debt [Line Items] | ||||
Borrowings, maturity | 3.2 | 4.1 | ||
Borrowings, interest rate | 0.10% | 0.20% | ||
Weighted average [member] | Other long-term debt [Member] | ||||
Debt [Line Items] | ||||
Borrowings, maturity | 8.6 | 1.0 | ||
Borrowings, interest rate | 3.50% | 0.00% | ||
Weighted average [member] | US Dollar [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Borrowings, maturity | 15.1 | 16.1 | ||
Borrowings, interest rate | 6.30% | 6.30% | ||
Weighted average [member] | Euro [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Borrowings, maturity | 4.4 | 5.4 | ||
Borrowings, interest rate | 1.00% | 1.00% | ||
Later than one year and not later than five years [member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 4,034 | € 2,329 | ||
Later than one year and not later than five years [member] | Forward contract [member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 738 | 113 | ||
Later than one year and not later than five years [member] | Lease liabilities [member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | 580 | 596 | ||
Non-current portion of non-current borrowings | 580 | 596 | ||
Later than one year and not later than five years [member] | Bank borrowings [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 202 | 3 | ||
Later than one year and not later than five years [member] | Other long-term debt [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 18 | |||
Later than one year and not later than five years [member] | US Dollar [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 255 | 122 | ||
Later than one year and not later than five years [member] | Euro [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 2,242 | 1,494 | ||
Later than five years [member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 2,439 | 3,376 | ||
Later than five years [member] | Lease liabilities [member] | ||||
Debt [Line Items] | ||||
Long-term debt including current portion of long-term debt | 383 | 352 | ||
Non-current portion of non-current borrowings | 383 | 352 | ||
Later than five years [member] | Bank borrowings [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 200 | |||
Later than five years [member] | Other long-term debt [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 8 | |||
Later than five years [member] | US Dollar [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 1,058 | 1,088 | ||
Later than five years [member] | Euro [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 991 | 1,735 | ||
Later than one year [member] | Lease liabilities [member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 963 | 948 | ||
Later than one year [member] | US Dollar [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 1,210 | |||
Later than one year [member] | Euro [Member] | Bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 3,233 | € 3,229 | ||
[1] | 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 (€) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | [1] | € 6,473,000,000 | € 5,705,000,000 | € 4,939,000,000 |
Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 4,545,000,000 | € 4,439,000,000 | ||
Unsecured EUR Bonds Due 30/03/2025 1 3/8% [Member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 1.375% | |||
Unsecured EUR Bonds Due 30/03/2030 2% [Member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 2.00% | |||
Euro [Member] | Unsecured EUR Bonds Due 09/06/2023 1/2 percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 500,000,000 | € 500,000,000 | ||
Euro [Member] | Unsecured EUR Bonds Due 09/06/2023 1/2 percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 0.634% | |||
Euro [Member] | Unsecured EUR Bonds Due 05/02/2024 3/4 percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 500,000,000 | 500,000,000 | ||
Euro [Member] | Unsecured EUR Bonds Due 05/02/2024 3/4 percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 0.861% | |||
Euro [Member] | Unsecured EUR Bonds Due 22/05/2026 1/2 percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 750,000,000 | 750,000,000 | ||
Euro [Member] | Unsecured EUR Bonds Due 22/05/2026 1/2 percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 0.608% | |||
Euro [Member] | Unsecured EUR Bonds Due 05/02/2028 1 3/8 Percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 500,000,000 | 500,000,000 | ||
Euro [Member] | Unsecured EUR Bonds Due 05/02/2028 1 3/8 Percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 1.523% | |||
Euro [Member] | Unsecured EUR Bonds Due 30/03/2025 1 3/8% [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 500,000,000 | 500,000,000 | ||
Euro [Member] | Unsecured EUR Bonds Due 30/03/2025 1 3/8% [Member] | Effective interest rate [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 1.509% | |||
Euro [Member] | Unsecured EUR Bonds Due 30/03/2030 2% [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 500,000,000 | 500,000,000 | ||
Euro [Member] | Unsecured EUR Bonds Due 30/03/2030 2% [Member] | Effective interest rate [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | 0.02128 | |||
US Dollar [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Unsecured bonds adjustments | [2] | (37,000,000) | (39,000,000) | |
US Dollar [Member] | Unsecured USD Bonds Due 05/15/2025 7 3/4 Percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 56,000,000 | 51,000,000 | ||
US Dollar [Member] | Unsecured USD Bonds Due 05/15/2025 7 3/4 Percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 7.429% | |||
US Dollar [Member] | Unsecured USD Bonds Due 06/01/2026 7 1/5 Percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 120,000,000 | 111,000,000 | ||
US Dollar [Member] | Unsecured USD Bonds Due 06/01/2026 7 1/5 Percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 6.885% | |||
US Dollar [Member] | Unsecured USD Bonds Due 05/15/2025 7 1/8 Percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 74,000,000 | 68,000,000 | ||
US Dollar [Member] | Unsecured USD Bonds Due 05/15/2025 7 1/8 Percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 6.794% | |||
US Dollar [Member] | Unsecured USD Bonds Due 11/03/2038 6 7/8 Percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 641,000,000 | 591,000,000 | ||
US Dollar [Member] | Unsecured USD Bonds Due 11/03/2038 6 7/8 Percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 7.21% | |||
US Dollar [Member] | Unsecured USD Bonds Due 03/15/2042 5 Percent [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 441,000,000 | € 407,000,000 | ||
US Dollar [Member] | Unsecured USD Bonds Due 03/15/2042 5 Percent [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 5.273% | |||
[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] | 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, 2021 | Dec. 31, 2020 | |
Debt [Line Items] | |||
Gross lease liabilities | € 1,333 | [1],[2] | € 1,325 |
Long-term debt including current portion of long-term debt | 6,933 | 6,857 | |
Interest payable | 52 | 52 | |
Lease liabilities [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 1,220 | 1,216 | |
Interest payable | 113 | 109 | |
Not later than one year [member] | |||
Debt [Line Items] | |||
Gross lease liabilities | 280 | [1],[2] | 290 |
Not later than one year [member] | Lease liabilities [member] | |||
Debt [Line Items] | |||
Current interest payable | 22 | 23 | |
Long-term debt including current portion of long-term debt | 257 | 267 | |
Later than one year and not later than five years [member] | |||
Debt [Line Items] | |||
Gross lease liabilities | 636 | 651 | |
Later than one year and not later than five years [member] | Lease liabilities [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 580 | 596 | |
Non-current interest payable | 56 | 55 | |
Later than five years [member] | |||
Debt [Line Items] | |||
Gross lease liabilities | 417 | [1],[2] | 384 |
Later than five years [member] | Lease liabilities [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 383 | 352 | |
Non-current interest payable | € 34 | € 31 | |
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt [Abstract] | ||||
Short-term bank borrowings | € 47 | € 76 | ||
Current portion of non-current borrowings | 459 | 1,153 | ||
Current borrowings and current portion of non-current borrowings | [1] | € 506 | € 1,229 | € 508 |
[1] | 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) | 12 Months Ended | ||
Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Provisions [Line Items] | |||
Effect of change in accounting estimate, remaining duration | € 30 | ||
Change in Fair value on contingent consideration | (78,000,000) | € (93,000,000) | |
Previously stated [member] | |||
Provisions [Line Items] | |||
Effect of change in accounting estimate, remaining duration | 60 | ||
Not later than five years [Member] | |||
Provisions [Line Items] | |||
Provision utilization period | five years | ||
Warranty provision [member] | |||
Provisions [Line Items] | |||
Additional provisions, other provisions | 364,000,000 | € 239,000,000 | |
Provision used, other provisions | 265,000,000 | 270,000,000 | |
Other provisions | 238,000,000 | 167,000,000 | € 210,000,000 |
Warranty provision [member] | Connected Care [Member] | |||
Provisions [Line Items] | |||
Additional provisions, other provisions | 94,000,000 | ||
Other environment related provision [member] | |||
Provisions [Line Items] | |||
Additional provisions, other provisions | 18,000,000 | 9,000,000 | |
Provision used, other provisions | 15,000,000 | 16,000,000 | |
Unused provision reversed, other provisions | 64,000,000 | 0 | |
Other provisions | 124,000,000 | € 183,000,000 | 170,000,000 |
Other environment related provision [member] | Increase (decrease) due to voluntary changes in accounting policy [member] | |||
Provisions [Line Items] | |||
Unused provision reversed, other provisions | 55,000,000 | ||
Other environment related provision [member] | Increase (decrease) due to voluntary changes in accounting policy [member] | Continuing operations [member] | |||
Provisions [Line Items] | |||
Unused provision reversed, other provisions | 33,000,000 | ||
Other environment related provision [member] | Increase (decrease) due to voluntary changes in accounting policy [member] | Discontinued operations [member] | |||
Provisions [Line Items] | |||
Unused provision reversed, other provisions | 22,000,000 | ||
Other environment related provision [member] | Later than one year and not later than five years [member] | |||
Provisions [Line Items] | |||
Provision used, other provisions | 71,000,000 | ||
Other environment related provision long term [member] | Bottom of range [member] | |||
Provisions [Line Items] | |||
Provision utilization period | one | ||
Other environment related provision long term [member] | Top of range [member] | |||
Provisions [Line Items] | |||
Provision utilization period | five | ||
Other environment related provision remainder [member] | |||
Provisions [Line Items] | |||
Provision utilization period | five | ||
Legal proceedings provision [member] | |||
Provisions [Line Items] | |||
Additional provisions, other provisions | 43,000,000 | € 72,000,000 | |
Provision used, other provisions | 17,000,000 | 45,000,000 | |
Unused provision reversed, other provisions | 48,000,000 | 6,000,000 | |
Other provisions | 91,000,000 | € 72,000,000 | 55,000,000 |
Legal proceedings provision [member] | Not later than three years [member] | |||
Provisions [Line Items] | |||
Provision utilization period | three | ||
Provisions for contingent considerations [Member] | |||
Provisions [Line Items] | |||
Provision used, other provisions | 48,000,000 | € 14,000,000 | |
Other provisions | 208,000,000 | 318,000,000 | € 354,000,000 |
Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | |||
Provisions [Line Items] | |||
Change in Fair value on contingent consideration | 67,000,000 | € 101,000,000 | |
Provisions for contingent considerations [Member] | Not later than three years [member] | |||
Provisions [Line Items] | |||
Provision utilization period | three | ||
Provision for taxes other than income tax [member] | |||
Provisions [Line Items] | |||
Other provisions | 37,000,000 | € 39,000,000 | |
Onerous contracts provision [member] | |||
Provisions [Line Items] | |||
Other provisions | 12,000,000 | 24,000,000 | |
Provisions for employee jubilee funds [Member] | |||
Provisions [Line Items] | |||
Other provisions | 94,000,000 | € 92,000,000 | |
Provisions for employee jubilee funds [Member] | Later than five years [member] | |||
Provisions [Line Items] | |||
Provision utilization period | five years | ||
Self-insurance provisions [Member] | |||
Provisions [Line Items] | |||
Other provisions | 43,000,000 | € 45,000,000 | |
Provision for decommissioning, restoration and rehabilitation costs [member] | |||
Provisions [Line Items] | |||
Other provisions | 33,000,000 | € 30,000,000 | |
Provision for decommissioning, restoration and rehabilitation costs [member] | Later than five years [member] | |||
Provisions [Line Items] | |||
Provision utilization period | five years | ||
Provisions for rights of return [Member] | |||
Provisions [Line Items] | |||
Other provisions | € 40,000,000 | € 36,000,000 | |
Provisions for rights of return [Member] | Not later than one year [member] | |||
Provisions [Line Items] | |||
Provision utilization period | year | ||
Respironics field action [Member] | |||
Provisions [Line Items] | |||
Number of repair kits shipped | 750,000 | ||
Remediation costs | € 94,000,000 | ||
Additional provisions, other provisions | 719,000,000 | ||
Provision used, other provisions | (175,000,000) | ||
Forecasts revision [Member] | Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | |||
Provisions [Line Items] | |||
Change in Fair value on contingent consideration | 41,000,000 | ||
Milestone [member] | Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | |||
Provisions [Line Items] | |||
Change in Fair value on contingent consideration | € 26,000,000 |
Provisions - Provisions (Detail
Provisions - Provisions (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | |||
Non-current provisions | € 1,315 | € 1,458 | |
Provisions | 2,313 | 1,980 | |
Current provisions | 998 | 522 | |
Respironics field action [Member] | |||
Provisions [Line Items] | |||
Provisions | 577 | ||
Other non-current provisions | 52 | ||
Current provisions | 525 | ||
Post-employement benefit [Member] | |||
Provisions [Line Items] | |||
Non-current provisions | [1] | 659 | 751 |
Provisions | [1] | 659 | 751 |
Warranty provision [member] | |||
Provisions [Line Items] | |||
Non-current provisions | 32 | 28 | |
Provisions | 238 | 167 | |
Current provisions | 207 | 139 | |
Other environment related provision [member] | |||
Provisions [Line Items] | |||
Non-current provisions | 99 | 162 | |
Provisions | 124 | 183 | |
Current provisions | 26 | 21 | |
Restructuring provision [member] | |||
Provisions [Line Items] | |||
Non-current provisions | 8 | 17 | |
Provisions | 66 | 117 | |
Current provisions | 58 | 100 | |
Legal proceedings provision [member] | |||
Provisions [Line Items] | |||
Non-current provisions | 53 | 19 | |
Provisions | 91 | 72 | |
Current provisions | 39 | 53 | |
Provisions for contingent considerations [Member] | |||
Provisions [Line Items] | |||
Non-current provisions | 156 | 203 | |
Provisions | 208 | 318 | |
Current provisions | 52 | 114 | |
Miscellaneous other provisions [member] | |||
Provisions [Line Items] | |||
Non-current provisions | 257 | 279 | |
Provisions | 349 | 372 | |
Current provisions | € 92 | € 93 | |
[1] | For more details refer to Post-employment benefits |
Provisions - Field action provi
Provisions - Field action provision (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | ||
Provisions, at the end of the period | € 2,313 | € 1,980 |
Respironics field action [Member] | ||
Provisions [Line Items] | ||
Additional provisions, other provisions | 719 | |
Provision used, other provisions | (175) | |
Increase (decrease) through net exchange differences, other provisions | 33 | |
Provisions, at the end of the period | € 577 |
Provisions - Main assumptions (
Provisions - Main assumptions (Detail) - Respironics field action [Member] | 12 Months Ended |
Dec. 31, 2021EUR (€) | |
Total number of devices [Member] | |
Provisions [Line Items] | |
Provision, main assumptions value | 5,200,000 |
Total number of devices [Member] | Ten percentage point increase [Member] | |
Provisions [Line Items] | |
Sensitivity analysis effect of change in main assumption | € 63 |
Total number of devices [Member] | Ten percentage point decrease [Member] | |
Provisions [Line Items] | |
Sensitivity analysis effect of change in main assumption | € (63) |
Replacement share [Member] | |
Provisions [Line Items] | |
Provision, main assumptions value | 0.46 |
Replacement share [Member] | Ten percentage point increase [Member] | |
Provisions [Line Items] | |
Sensitivity analysis effect of change in main assumption | € 44 |
Replacement share [Member] | Ten percentage point decrease [Member] | |
Provisions [Line Items] | |
Sensitivity analysis effect of change in main assumption | € (44) |
Provisions - Provisions for ass
Provisions - Provisions for assurance-type product warranty (Detail) - Warranty provision [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | ||
Other provisions at beginning of period | € 167 | € 210 |
Additional provisions, other provisions | 364 | 239 |
Provision used, other provisions | 265 | 270 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | (37) | |
Increase (decrease) through net exchange differences, other provisions | 10 | (12) |
Other provisions at end of period | € 238 | € 167 |
Provisions - Environmental prov
Provisions - Environmental provisions (Detail) - Other environment related provision [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | ||
Other provisions at beginning of period | € 183 | € 170 |
Additional provisions, other provisions | 18 | 9 |
Provision used, other provisions | 15 | 16 |
Unused provision reversed, other provisions | 64 | 0 |
Increase (decrease) through change in discount rate, other provisions | (10) | 37 |
Increase through adjustments arising from passage of time, other provisions | 3 | 3 |
Increase (decrease) through net exchange differences, other provisions | 9 | (19) |
Other provisions at end of period | € 124 | € 183 |
Provisions - Restructuring-rela
Provisions - Restructuring-related provisions (Detail) - Restructuring provision [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provisions [Line Items] | |||
Other provisions | € 66 | € 117 | € 156 |
Additional provisions, other provisions | 55 | 118 | |
Provision used, other provisions | 73 | 122 | |
Unused provision reversed, other provisions | 39 | 32 | |
Increase (decrease) through transfers and other changes, other provisions | 6 | (4) | |
Diagnosis & Treatment [Member] | |||
Provisions [Line Items] | |||
Other provisions | 26 | 33 | 61 |
Additional provisions, other provisions | 23 | 36 | |
Provision used, other provisions | 19 | 47 | |
Unused provision reversed, other provisions | 13 | 16 | |
Increase (decrease) through transfers and other changes, other provisions | 1 | (1) | |
Connected Care [Member] | |||
Provisions [Line Items] | |||
Other provisions | 17 | 17 | 28 |
Additional provisions, other provisions | 16 | 17 | |
Provision used, other provisions | 12 | 21 | |
Unused provision reversed, other provisions | 4 | 5 | |
Increase (decrease) through transfers and other changes, other provisions | 0 | (3) | |
Personal Health [Member] | |||
Provisions [Line Items] | |||
Other provisions | 9 | 28 | 25 |
Additional provisions, other provisions | 6 | 30 | |
Provision used, other provisions | 21 | 22 | |
Unused provision reversed, other provisions | 6 | 3 | |
Increase (decrease) through transfers and other changes, other provisions | 2 | (1) | |
Other [Member] | |||
Provisions [Line Items] | |||
Other provisions | 14 | 38 | € 41 |
Additional provisions, other provisions | 10 | 35 | |
Provision used, other provisions | 21 | 31 | |
Unused provision reversed, other provisions | 16 | 7 | |
Increase (decrease) through transfers and other changes, other provisions | € 4 | € 0 |
Provisions - Restructuring-re_2
Provisions - Restructuring-related provision (Detail) - Restructuring provision [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provisions [Line Items] | |||
Other provisions | € 66 | € 117 | € 156 |
Additional provisions, other provisions | 55 | 118 | |
Provision used, other provisions | 73 | 122 | |
Unused provision reversed, other provisions | 39 | 32 | |
Increase (decrease) through transfers and other changes, other provisions | 6 | (4) | |
Diagnosis & Treatment [Member] | |||
Provisions [Line Items] | |||
Other provisions | 26 | 33 | 61 |
Additional provisions, other provisions | 23 | 36 | |
Provision used, other provisions | 19 | 47 | |
Unused provision reversed, other provisions | 13 | 16 | |
Increase (decrease) through transfers and other changes, other provisions | 1 | (1) | |
Connected Care [Member] | |||
Provisions [Line Items] | |||
Other provisions | 17 | 17 | 28 |
Additional provisions, other provisions | 16 | 17 | |
Provision used, other provisions | 12 | 21 | |
Unused provision reversed, other provisions | 4 | 5 | |
Increase (decrease) through transfers and other changes, other provisions | 0 | (3) | |
Personal Health [Member] | |||
Provisions [Line Items] | |||
Other provisions | 9 | 28 | 25 |
Additional provisions, other provisions | 6 | 30 | |
Provision used, other provisions | 21 | 22 | |
Unused provision reversed, other provisions | 6 | 3 | |
Increase (decrease) through transfers and other changes, other provisions | 2 | (1) | |
Other [Member] | |||
Provisions [Line Items] | |||
Other provisions | 14 | 38 | € 41 |
Additional provisions, other provisions | 10 | 35 | |
Provision used, other provisions | 21 | 31 | |
Unused provision reversed, other provisions | 16 | 7 | |
Increase (decrease) through transfers and other changes, other provisions | € 4 | € 0 |
Provisions - Legal provisions (
Provisions - Legal provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | ||
Acquisitions | € 123 | € 131 |
Legal proceedings provision [member] | ||
Provisions [Line Items] | ||
Other provisions at beginning of period | 72 | 55 |
Additional provisions, other provisions | 43 | 72 |
Acquisitions | 38 | |
Provision used, other provisions | 17 | 45 |
Unused provision reversed, other provisions | 48 | 6 |
Increase through adjustments arising from passage of time, other provisions | 1 | 1 |
Increase (decrease) through net exchange differences, other provisions | 3 | (5) |
Other provisions at end of period | € 91 | € 72 |
Provisions - Contingent conside
Provisions - Contingent consideration provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | ||
Acquisitions | € 123 | € 131 |
Change in Fair value on contingent consideration | (78) | (93) |
Provisions for contingent considerations [Member] | ||
Provisions [Line Items] | ||
Other provisions at beginning of period | 318 | 354 |
Acquisitions | 16 | 70 |
Provision used, other provisions | 48 | 14 |
Other provisions at end of period | € 208 | € 318 |
Provisions - Other provisions (
Provisions - Other provisions (Detail) - Miscellaneous other provisions [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | ||
Other provisions at beginning of period | € 372 | |
Additional provisions, other provisions | 89 | € 161 |
Provision used, other provisions | 87 | 109 |
Unused provision reversed, other provisions | 29 | 49 |
Increase through adjustments arising from passage of time, other provisions | (5) | (1) |
Increase (decrease) through net exchange differences, other provisions | 9 | (21) |
Other provisions at end of period | € 349 | 372 |
IFRS 16 [Member] | ||
Provisions [Line Items] | ||
Other provisions at beginning of period | € 392 |
Post-employment benefits - Text
Post-employment benefits - Text Details (Detail) € in Millions | Dec. 31, 2022EUR (€) | Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2022EUR (€) | Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) |
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 590 | € 750 | € 590 | € 750 | |||
Percentage of unquoted assets | 29.00% | 32.00% | 29.00% | 32.00% | |||
Actuarial assumption of mortality rates | 0.10 | ||||||
Increase (decrease) in accounting estimate | € 1 | ||||||
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | 1% | ||||||
Weighted average duration of defined benefit obligation | 11 years | 12 years | |||||
Employer contributions | € 457 | ||||||
Current service cost, defined benefit plans | 34 | ||||||
Interest expense (income), defined benefit plans | 9 | ||||||
Wholly or partly funded defined benefit plans [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | 23 | ||||||
Present value of defined benefit obligation [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 1,970 | € 2,153 | 1,970 | € 2,153 | € 3,350 | ||
Increase (decrease) in accounting estimate | 11 | ||||||
Unfunded defined-benefit plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | 40 | ||||||
Defined contribution plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | 394 | ||||||
Bottom of range [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Increase in actuarial assumption of life expectancy after retirement | 6 months | ||||||
Top of range [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Increase in actuarial assumption of life expectancy after retirement | 1 year | ||||||
Germany [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 349 | 450 | € 349 | 450 | |||
Actuarial assumption of mortality rates | 0.93 | 0.93 | |||||
Weighted average duration of defined benefit obligation | 11 years | ||||||
Employer contributions | 13 | ||||||
Germany [Member] | Present value of defined benefit obligation [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 921 | 993 | € 921 | 993 | |||
Germany [Member] | Unfunded defined-benefit plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | € 19 | ||||||
Germany [Member] | Bottom of range [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Age | 60 | 60 | |||||
Germany [Member] | Top of range [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Age | 85 | 85 | |||||
United States of America [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 84 | 95 | € 84 | 95 | |||
Weighted average duration of defined benefit obligation | 12 years | ||||||
Employer contributions | 0 | ||||||
United States of America [Member] | Present value of defined benefit obligation [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 708 | 709 | 708 | 709 | |||
United States of America [Member] | Unfunded defined-benefit plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | 10 | ||||||
United States of America [Member] | Defined contribution plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | 139 | ||||||
Other countries [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 157 | 205 | 157 | 205 | |||
Weighted average duration of defined benefit obligation | 11 years | ||||||
Employer contributions | 10 | ||||||
Other countries [Member] | Present value of defined benefit obligation [member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 341 | € 451 | 341 | € 451 | |||
Other countries [Member] | Unfunded defined-benefit plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | 11 | ||||||
Other countries [Member] | Defined contribution plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | 61 | ||||||
Netherlands [Member] | Defined contribution plans [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Employer contributions | € 194 | ||||||
Domestic Appliances [Member] | |||||||
Post-employment benefits [Line Items] | |||||||
Net defined benefit liability (asset) | € 12 | € 12 |
Post-employment benefits - Post
Post-employment benefits - Post-employment benefits (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Post-employment benefits [Line Items] | |||
Present value of funded obligations | € 1,370 | € 1,521 | |
Present value of unfunded obligations | 600 | 633 | |
Net defined benefit liability (asset) | 590 | 750 | |
Post-employement benefit [Member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 590 | 750 | |
Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 1,970 | 2,153 | € 3,350 |
Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 1,380 | 1,403 | € 2,526 |
Germany [Member] | |||
Post-employment benefits [Line Items] | |||
Present value of funded obligations | 606 | 649 | |
Present value of unfunded obligations | 316 | 344 | |
Net defined benefit liability (asset) | 349 | 450 | |
Germany [Member] | Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 921 | 993 | |
Germany [Member] | Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 572 | 543 | |
United States of America [Member] | |||
Post-employment benefits [Line Items] | |||
Present value of funded obligations | (558) | 568 | |
Present value of unfunded obligations | 149 | 141 | |
Net defined benefit liability (asset) | 84 | 95 | |
United States of America [Member] | Post-employement benefit [Member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 84 | ||
United States of America [Member] | Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 708 | 709 | |
United States of America [Member] | Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 623 | 613 | |
Other countries [Member] | |||
Post-employment benefits [Line Items] | |||
Present value of funded obligations | (206) | 304 | |
Present value of unfunded obligations | 135 | 147 | |
Net defined benefit liability (asset) | 157 | 205 | |
Other countries [Member] | Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 341 | 451 | |
Other countries [Member] | Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | € 185 | € 247 |
Post-employment benefits - Clas
Post-employment benefits - Classification net position (Detail) - EUR (€) | Dec. 31, 2021 | Dec. 31, 2020 |
Post-employment benefits [Line Items] | ||
Other non-current assets | € 69,000,000 | € 46,000,000 |
Non-current provisions for employee benefits | (659,000,000) | (797,000,000) |
Liabilities included in disposal groups classified as held for sale | 1,000,000 | 30,000,000 |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners | 0 | |
Net defined benefit liability (asset) | 590,000,000 | 750,000,000 |
Germany [Member] | ||
Post-employment benefits [Line Items] | ||
Other non-current assets | 3,000,000 | |
Non-current provisions for employee benefits | (352,000,000) | (450,000,000) |
Net defined benefit liability (asset) | 349,000,000 | 450,000,000 |
United States of America [Member] | ||
Post-employment benefits [Line Items] | ||
Other non-current assets | 65,000,000 | 46,000,000 |
Non-current provisions for employee benefits | (149,000,000) | (141,000,000) |
Net defined benefit liability (asset) | 84,000,000 | 95,000,000 |
Other countries [Member] | ||
Post-employment benefits [Line Items] | ||
Other non-current assets | 1,000,000 | |
Non-current provisions for employee benefits | (157,000,000) | (205,000,000) |
Liabilities included in disposal groups classified as held for sale | 0 | |
Net defined benefit liability (asset) | € 157,000,000 | € 205,000,000 |
Post-employment benefits - Pre-
Post-employment benefits - Pre-tax costs for post-employment benefits (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | € 36 | € 74 | € 56 |
Post-employment benefit expense, defined contribution plans | 375 | 366 | 346 |
Post-employment benefits costs, pre-tax | 411 | 440 | 401 |
Included in income from operations [Member] | |||
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | 28 | 59 | 32 |
Post-employment benefit expense, defined contribution plans | 368 | 358 | 338 |
Included in financial expense [Member] | |||
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | 8 | 13 | 22 |
Included in discontinued operations [Member] | |||
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | 1 | 1 | 1 |
Post-employment benefit expense, defined contribution plans | € 7 | € 8 | € 8 |
Post-employment benefits - Defi
Post-employment benefits - Defined-benefit obligations (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | € 750 | ||
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | (8) | € (13) | € (22) |
Net defined benefit liability (asset) at end of period | 590 | 750 | |
Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | 2,153 | 3,350 | |
Increase in net defined benefit liability (asset) resulting from current service cost | 36 | 39 | |
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | 33 | 71 | |
Decrease (increase) in net defined benefit liability (asset) resulting from contributions to plan by plan participants | 7 | 15 | |
Decrease (increase) in net defined benefit liability (asset) resulting from actuarial gains (losses) arising from changes in demographic assumptions | 3 | 16 | |
Decrease (increase) in net defined benefit liability (asset) resulting from actuarial gains (losses) arising from changes in financial assumptions | (86) | 163 | |
Decrease (increase) in net defined benefit liability (asset) resulting from actuarial gains (losses) arising from experience adjustments | (6) | 39 | |
Increase (decrease) in net defined benefit liability (asset) resulting from past service cost | (5) | 2 | |
Decrease (increase) in net defined benefit liability (asset) resulting from gains (losses) arising from settlements | (90) | (1,185) | |
Decrease (increase) in net defined benefit liability (asset) resulting from payments from plan | (95) | (221) | |
Benefits paid directly by employer | (33) | (35) | |
Increase (decrease) in net defined benefit liability (asset) resulting from changes in foreign exchange rates, net defined benefit liability (asset) | 52 | (100) | |
Net defined benefit liability (asset) at end of period | € 1,970 | € 2,153 | € 3,350 |
Post-employment benefits - Plan
Post-employment benefits - Plan assets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | € 750 | ||
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | (8) | € (13) | € (22) |
Net defined benefit liability (asset) at end of period | 590 | 750 | |
Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | 1,403 | 2,526 | |
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | 25 | 58 | |
Increase in net defined benefit liability (asset) resulting from current service cost | 1 | 1 | |
Decrease (increase) in net defined benefit liability (asset) resulting from return on plan assets excluding interest income or expense | 44 | 268 | |
Decrease (increase) in net defined benefit liability (asset) resulting from contributions to plan by plan participants | 7 | 15 | |
Decrease (increase) in net defined benefit liability (asset) resulting from resulting from contributions to plan by employer | 33 | 34 | |
Decrease (increase) in net defined benefit liability (asset) resulting from gains (losses) arising from settlements | (86) | (1,205) | |
Decrease (increase) in net defined benefit liability (asset) resulting from payments from plan | 96 | 221 | |
Increase (decrease) in net defined benefit liability (asset) resulting from changes in foreign exchange rates, net defined benefit liability (asset) | 50 | (71) | |
Net defined benefit liability (asset) at end of period | € 1,380 | € 1,403 | € 2,526 |
Post-employment benefits - Pl_2
Post-employment benefits - Plan assets allocation (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | € 590 | € 750 | |
Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 1,380 | 1,403 | € 2,526 |
Plan assets [member] | Assets quoted in active market [Member] | |||
Post-employment benefits [Line Items] | |||
Debt instruments, amount contributed to fair value of plan assets | 790 | 782 | |
Equity instruments, amount contributed to fair value of plan assets | 122 | ||
Other assets, amount contributed to fair value of plan assets | 195 | 175 | |
Plan assets [member] | Assets not quoted in active market [Member] | |||
Post-employment benefits [Line Items] | |||
Debt instruments, amount contributed to fair value of plan assets | 1 | 7 | |
Equity instruments, amount contributed to fair value of plan assets | 133 | ||
Other assets, amount contributed to fair value of plan assets | € 272 | € 307 |
Post-employment benefits - Assu
Post-employment benefits - Assumptions used for defined-benefit obligations in Germany, the United States and the rest of the world (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 1.80% | 1.50% |
Actuarial assumption of expected rates of inflation | 2.00% | 1.70% |
Actuarial assumption of expected rates of salary increases | 2.60% | 2.50% |
Germany [Member] | ||
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 1.10% | 0.60% |
Actuarial assumption of expected rates of inflation | 1.80% | 1.60% |
Actuarial assumption of expected rates of salary increases | 2.50% | 2.50% |
United States of America [Member] | ||
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 2.60% | 2.30% |
Actuarial assumption of expected rates of inflation | 2.20% | 2.00% |
Actuarial assumption of expected rates of salary increases | 0.00% | 0.00% |
Other countries [Member] | ||
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 2.10% | 2.20% |
Actuarial assumption of expected rates of inflation | 2.00% | 1.70% |
Actuarial assumption of expected rates of salary increases | 2.90% | 2.70% |
Post-employment benefits - Sens
Post-employment benefits - Sensitivity of key assumptions (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Actuarial assumption of discount rates [member] | |||
Post-employment benefits [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | € (196) | € (226) | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 241 | 265 | |
Actuarial assumption of expected rates of inflation [member] | |||
Post-employment benefits [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 99 | 86 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (83) | (78) | |
Actuarial assumption of expected rates of salary increases [member] | |||
Post-employment benefits [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 19 | 16 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (18) | (19) | |
Actuarial assumption of life expectancy after retirement [member] | |||
Post-employment benefits [Line Items] | |||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | [1] | € 48 | € 51 |
[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% decrease in the assumed rates of mortality for the company’s major plans. A 10% decrease in assumed mortality rates equals improvement of life expectancy by 0.5 - 1 year. |
Accrued liabilities - Accrued l
Accrued liabilities - Accrued liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued liabilities [Line Items] | ||
Accruals | € 1,784 | € 1,678 |
Salaries and wages [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 566 | 614 |
Holiday entitlements [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 127 | 124 |
Other personnel-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 108 | 78 |
Gas, water, electricity, rent and other [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 33 | 21 |
Communication and IT costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 82 | 64 |
Distribution costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 122 | 93 |
Commission payable [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 7 | 10 |
Advertising and marketing-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 175 | 197 |
Other sales-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 20 | 20 |
Material-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 130 | 103 |
Interest-related accruals [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 52 | 52 |
Other accrued liabilities [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | € 362 | € 302 |
Other liabilities - Text Detail
Other liabilities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other liabilities [Abstract] | ||
Other non-current non-financial liabilities | € 56 | € 74 |
Non-current contract liabilities | 446 | 403 |
Current contract liabilities | 1,491 | € 1,239 |
Increase (Decrease) in current contract liabilities through operational activities | 251 | |
Revenue that was included in contract liability balance at beginning of period | € 1,239 |
Other liabilities - Other curre
Other liabilities - Other current liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other liabilities [Abstract] | ||
Accrued customer rebates that cannot be offset with accounts receivables for those customers | € 280 | € 412 |
Other taxes including social security premiums | 190 | 253 |
Other current liabilities | 116 | 119 |
Other current non-financial liabilities | € 587 | € 785 |
Cash flow statement supplemen_3
Cash flow statement supplementary information - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flow statement supplementary information [Line Items] | |||||
Payments of lease liabilities, classified as financing activities | € 308 | € 325 | |||
Interest paid, classified as operating activities | [1] | 151 | 148 | € 171 | |
Purchase of financial instruments, classified as investing activities | 48 | 13 | 166 | ||
Net cash outflow from non-current financial assets | 0 | 66 | |||
Net cash inflow from non-current financial assets | 99 | ||||
Borrowings | [2] | 6,980 | 6,934 | € 5,447 | |
IFRS 16 [Member] | |||||
Cash flow statement supplementary information [Line Items] | |||||
Borrowings | € 803 | ||||
China [Member] | |||||
Cash flow statement supplementary information [Line Items] | |||||
Net cash outflow from non-current financial assets | 45 | ||||
Lease liabilities [member] | |||||
Cash flow statement supplementary information [Line Items] | |||||
Interest paid, classified as operating activities | € 25 | € 29 | |||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | € (1,181) | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | € (2,347) | 483 | ||||
Long-term borrowings including current portion of long-term borrowings [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 6,933 | [1] | 6,857 | [1],[2] | € 5,355 | [2] |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (226) | [1] | 767 | [2] | ||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 200 | [1] | (180) | [2] | ||
Increase (decrease) through other changes, liabilities arising from financing activities | 101 | [1] | 916 | [2] | ||
USD Bond [member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 1,313 | 1,210 | ||||
EUR Bond [member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 3,233 | 3,229 | ||||
Bank borrowings [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 203 | 205 | 206 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1) | |||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (2) | |||||
Other long-term debt [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 30 | 16 | 17 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 14 | (1) | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | 1 | |||||
Lease liabilities [member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 1,220 | 1,216 | 1,381 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (239) | (223) | ||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 98 | (61) | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | 145 | 119 | ||||
Lease liabilities [member] | IFRS 16 [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 1,216 | |||||
Forward contracts long term [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 934 | [3] | 982 | [3] | 188 | [4] |
Increase (decrease) through other changes, liabilities arising from financing activities | (48) | [3] | 793 | [4] | ||
Short-term borrowings [member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 47 | [1] | 76 | [1],[2] | 92 | [2] |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (25) | [1] | 16 | [2] | ||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (5) | [1] | (32) | [2] | ||
Short-term bank borrowings [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 47 | 76 | 92 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (24) | 15 | ||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (5) | (32) | ||||
Forward contracts short term [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 1 | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1) | 1 | ||||
Equity [member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | (1,410) | (1,181) | (390) | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (2,096) | (300) | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | 1,868 | (491) | ||||
Dividend payable [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (484) | (2) | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | 484 | 2 | ||||
Forward contracts equity [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | (934) | [3] | (982) | [3] | (188) | [4] |
Increase (decrease) through other changes, liabilities arising from financing activities | 48 | [3] | (793) | [4] | ||
Treasury shares [member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | (476) | (199) | (201) | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1,613) | (298) | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | 1,336 | 299 | ||||
US Dollar [Member] | Bonds [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 1,210 | 1,328 | ||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 103 | (117) | ||||
Euro [Member] | Bonds [Member] | ||||||
Cash flow statement supplementary information [Line Items] | ||||||
Liabilities arising from financing activities | 3,229 | € 2,234 | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 991 | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | € 4 | € 3 | ||||
[1] | Long-term debt includes the current portion of long-term debt, and short-term debt excludes the current portion of long-term debt. | |||||
[2] | In the 2019 opening balance sheet, EUR 803 million of lease liabilities were recognized due to the implementation of IFRS 16. | |||||
[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 |
Contingent assets and liabili_2
Contingent assets and liabilities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Contingent assets and liabilities [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 | € (14) | |
Off-balance-sheet business and credit-related guarantees provided on behalf of third parties and associates | € 2 | € 16 |
Related-party transactions - Te
Related-party transactions - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related-party transactions [Line Items] | ||||
Revenue from sale of goods, related party transactions | € 116 | € 204 | € 158 | |
Non-recourse third-party receivables sold from PMC | 162 | 242 | € 235 | |
PMC [Member] | ||||
Related-party transactions [Line Items] | ||||
Revenue from sale of goods, related party transactions | € 106 | € 191 | € 150 | |
PMC [Member] | Philips Electronics North America Corporation [Member] | ||||
Related-party transactions [Line Items] | ||||
Proportion of ownership interest in associate | 40.00% | |||
De Lage Landen Financial Services, Inc. (DLL) [Member] | ||||
Related-party transactions [Line Items] | ||||
Proportion of ownership interest in associate | 60.00% | |||
Bottom of range [member] | ||||
Related-party transactions [Line Items] | ||||
Presumed significant influence, voting rights | 20.00% | 20.00% | ||
Top of range [member] | ||||
Related-party transactions [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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related-party transactions [Abstract] | |||
Revenue from sale of goods, related party transactions | € 116 | € 204 | € 158 |
Purchases of goods, related party transactions | 41 | 57 | 53 |
Amounts receivable, related party transactions, at the end of the period | 40 | 37 | 32 |
Amounts payable, related party transactions, at the end of the period | € 2 | € 1 | € 2 |
Share-based compensation - Text
Share-based compensation - Text Details (Detail) € / shares in Units, $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021EUR (€)€ / shares | Dec. 31, 2021USD ($) | Dec. 31, 2020EUR (€)€ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020$ / shares | |
Share-based compensation [Line Items] | ||||||||
Share-based compensation costs | € 116,000,000 | € 121,000,000 | € 105,000,000 | |||||
Employee stock purchase plan | 7,000,000 | |||||||
Increase (decrease) through share-based payment transactions, equity | € 110,000,000 | € 116,000,000 | € 101,000,000 | |||||
Comparison group for performance shares | 20 | 20 | 20 | 20 | 20 | 20 | ||
Risk free interest rate, share options granted | (0.69%) | (0.69%) | ||||||
Expected volatility, share options granted | 28.00% | 28.00% | ||||||
Aggregate intrinsic value of liabilities from share-pased payments | € 6,000,000 | € 9,000,000 | € 13,000,000 | |||||
Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 3 months 18 days | 3 months 18 days | 3 months 18 days | 3 months 18 days | ||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 4.3 | |||||||
Proceeds from exercise of options | € 9,000,000 | |||||||
US Dollar [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 3 months 18 days | 3 months 18 days | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 2.6 | |||||||
Performance share plans [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Unrecognized compensation costs related to non-vested shares | € 110,000,000 | € 116,000,000 | 106,000,000 | |||||
Cost recognition period (weighted average) | 1.89 | 1.89 | ||||||
Restricted shares [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Unrecognized compensation costs related to non-vested shares | € 66,000,000 | € 62,000,000 | 59,000,000 | |||||
Cost recognition period (weighted average) | 1.8 | 1.8 | ||||||
Cliff-vesting period | 3 | |||||||
Option plans [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 4,000,000 | $ 3,000 | ||||||
Option plans [Member] | Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Proceeds from exercise of options | 21,000,000 | 28,000,000 | ||||||
Tax deductions realized as a result of option exercises | € 1,000,000 | 3,000,000 | 2,000,000 | |||||
Option plans [Member] | US Dollar [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Aggregate intrinsic value of liabilities from share-pased payments | $ | $ 7,000 | $ 11,000 | $ 11,000 | |||||
Accelerate options [Member] | Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 6 months | 6 months | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 2,000,000 | |||||||
Aggregate intrinsic value of liabilities from share-pased payments | 700,000 | 1,600,000 | ||||||
Proceeds from exercise of options | € 700,000 | 1,400,000 | 2,000,000 | |||||
Tax deductions realized as a result of option exercises | € 100,000 | € 200,000 | ||||||
Accelerate options [Member] | US Dollar [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | $ / shares | $ 20.02 | |||||||
Weighted average remaining contractual life of outstanding share options | 1 month 6 days | 1 month 6 days | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 300 | |||||||
Aggregate intrinsic value of liabilities from share-pased payments | $ | $ 700 | $ 900 | $ 1,000 | |||||
Bottom of range [member] | Option plans [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | € / shares | € 14.82 | |||||||
Bottom of range [member] | Option plans [Member] | US Dollar [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | $ / shares | $ 19.5 | |||||||
Bottom of range [member] | Accelerate options [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | € / shares | € 15.24 | |||||||
Top of range [member] | Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | € / shares | 22.43 | |||||||
Top of range [member] | Option plans [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | € / shares | € 23.23 | |||||||
Top of range [member] | Option plans [Member] | US Dollar [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | $ / shares | $ 30.27 |
Share-based compensation - Perf
Share-based compensation - Performance shares (Detail) | 12 Months Ended | |||||
Dec. 31, 2021€ / sharesshares | Dec. 31, 2021$ / shares€ / sharesshares | Dec. 31, 2021$ / shares | Dec. 31, 2020€ / shares | Dec. 31, 2020$ / shares | ||
Euro [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,813,385 | 1,813,385 | ||||
Euro [Member] | Performance share plans [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 3,097,713 | 3,097,713 | 3,097,713 | 3,545,312 | 3,545,312 | |
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € / shares | € 45.28 | € 45.28 | € 41.31 | |||
Number of other equity instruments granted in share-based payment arrangement | 1,121,001 | 1,121,001 | ||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € / shares | € 50.73 | |||||
Notional Dividends | [1] | 62,872 | 62,872 | |||
Weighted Average Exercise Price Notional Dividends | € / shares | [1] | € 45.22 | ||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 1,466,223 | 1,466,223 | ||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € / shares | € 39.18 | |||||
Number of other equity instruments forfeited in share-based payment arrangement | 272,873 | 272,873 | ||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € / shares | € 45.9 | |||||
Number of other equity instruments adjusted quantity | shares | [2] | 107,624 | 107,624 | |||
Weighted average exercise price of other equity instruments adjusted quantity | € / shares | [2] | € 37.67 | ||||
US Dollar [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,649,847 | 1,649,847 | ||||
US Dollar [Member] | Performance share plans [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 2,005,000 | 2,005,000 | 2,005,000 | 2,412,767 | 2,412,767 | |
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | $ / shares | $ 51.48 | $ 47.1 | ||||
Number of other equity instruments granted in share-based payment arrangement | 693,918 | 693,918 | ||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | $ / shares | € 61.32 | |||||
Notional Dividends | [1] | 41,324 | 41,324 | |||
Weighted Average Exercise Price Notional Dividends | $ / shares | [1] | € 51.42 | ||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 947,772 | 947,772 | ||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | $ / shares | € 47.48 | |||||
Number of other equity instruments forfeited in share-based payment arrangement | 268,500 | 268,500 | ||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | $ / shares | € 51.29 | |||||
Number of other equity instruments adjusted quantity | shares | [2] | 73,264 | 73,264 | |||
Weighted average exercise price of other equity instruments adjusted quantity | $ / shares | [2] | € 50.06 | ||||
[1] | Dividend declared in 2021 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 - Rest
Share-based compensation - Restricted shares (Detail) | 12 Months Ended | |||||
Dec. 31, 2021EUR (€)€ / shares | Dec. 31, 2021$ / shares€ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2020€ / shares | Dec. 31, 2020$ / shares | ||
Share-based compensation [Line Items] | ||||||
Cancellation of treasury shares | € | € 1,228,000,000 | |||||
Euro [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,813,385 | 1,813,385 | ||||
US Dollar [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,649,847 | 1,649,847 | ||||
Restricted shares [Member] | Euro [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,618,488 | 1,618,488 | 1,618,488 | |||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € / shares | € 39.93 | € 39.93 | € 36.2 | |||
Number of other equity instruments granted in share-based payment arrangement | 631,347 | |||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € / shares | € 44.41 | |||||
Notional Dividends | [1] | 33,430 | ||||
Weighted Average Exercise Price Notional Dividends | € / shares | [1] | € 39.69 | ||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 671,703 | |||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € / shares | € 33.96 | |||||
Number of other equity instruments forfeited in share-based payment arrangement | 187,648 | |||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € / shares | € 40.19 | |||||
Cancellation of treasury shares | € | € 323 | |||||
Restricted shares [Member] | Euro [Member] | Weighted average [member] | ||||||
Share-based compensation [Line Items] | ||||||
Cancellation of treasury shares | € | € 35.72 | |||||
Restricted shares [Member] | US Dollar [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,611,021 | 1,611,021 | 1,611,021 | |||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | $ / shares | $ 46.26 | $ 41.14 | ||||
Number of other equity instruments granted in share-based payment arrangement | 721,469 | |||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | $ / shares | € 53.42 | |||||
Notional Dividends | [1] | 30,551 | ||||
Weighted Average Exercise Price Notional Dividends | $ / shares | [1] | 44.99 | ||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 584,833 | |||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | $ / shares | 40.64 | |||||
Number of other equity instruments forfeited in share-based payment arrangement | 206,013 | |||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | $ / shares | € 46.09 | |||||
[1] | Dividend declared in 2021 on outstanding shares. |
Share-based compensation - Opti
Share-based compensation - Options on EUR-denominated listed share (Detail) - Euro [Member] | 12 Months Ended | |
Dec. 31, 2021€ / shares | Dec. 31, 2020€ / shares | |
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 239,077 | |
Option plans [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 239,077 | 491,914 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 14.93 | € 17.1 |
Number of share options exercised in share-based payment arrangement | 233,265 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | € 19.03 | |
Number of share options expired in share-based payment arrangement | 19,572 | |
Weighted average exercise price of share options expired in share-based payment arrangement | € 20.48 | |
Number of share options exercisable in share-based payment arrangement | 239,077 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | € 14.93 |
Share-based compensation - Op_2
Share-based compensation - Options on USD-denominated listed share (Detail) - US Dollar [Member] | 12 Months Ended | |
Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares | |
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 150,165 | |
Option plans [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 150,165 | 387,177 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 19.75 | $ 23.72 |
Number of share options exercised in share-based payment arrangement | 220,662 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | $ 26.12 | |
Number of share options expired in share-based payment arrangement | 16,350 | |
Weighted average exercise price of share options expired in share-based payment arrangement | $ 27.83 | |
Number of share options exercisable in share-based payment arrangement | 150,165 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 19.75 |
Share-based compensation - Outs
Share-based compensation - Outstanding options (Detail) | 12 Months Ended | |
Dec. 31, 2021EUR (€) | Dec. 31, 2020 | |
Euro [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 239,077 | |
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 4.3 | |
Weighted average remaining contractual life of outstanding share options | 3 months 18 days | 3 months 18 days |
Euro [Member] | Price range one [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 229,660 | |
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 4.1 | |
Weighted average remaining contractual life of outstanding share options | 3 months 18 days | |
Euro [Member] | Price range two [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 8,100 | |
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 0.1 | |
Weighted average remaining contractual life of outstanding share options | 6 months | |
Euro [Member] | Price range three [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,317 | |
Weighted average remaining contractual life of outstanding share options | 1 year | |
US Dollar [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 150,165 | |
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 2.6 | |
Weighted average remaining contractual life of outstanding share options | 3 months 18 days | |
US Dollar [Member] | Price range two [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 143,415 | |
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 2.5 | |
Weighted average remaining contractual life of outstanding share options | 3 months 18 days | |
US Dollar [Member] | Price range three [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 3,600 | |
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 0.1 | |
Weighted average remaining contractual life of outstanding share options | 4 months 24 days | |
US Dollar [Member] | Price range five [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 3,150 | |
Weighted average remaining contractual life of outstanding share options | 10 months 24 days |
Share-based compensation - Acce
Share-based compensation - Accelerate! options (Detail) | 12 Months Ended | ||||
Dec. 31, 2021€ / shares | Dec. 31, 2021$ / shares€ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2020€ / shares | Dec. 31, 2020$ / shares | |
Euro [Member] | |||||
Share-based compensation [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 239,077 | 239,077 | 239,077 | ||
Euro [Member] | Accelerate options [Member] | |||||
Share-based compensation [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 136,975 | 136,975 | 136,975 | 163,200 | 163,200 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € / shares | € 18.13 | € 18.13 | € 17.66 | ||
Number of share options exercised in share-based payment arrangement | 26,225 | 26,225 | |||
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 | 136,975 | 136,975 | 136,975 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | € / shares | € 18.13 | € 18.13 | |||
US Dollar [Member] | |||||
Share-based compensation [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 150,165 | 150,165 | 150,165 | ||
US Dollar [Member] | Accelerate options [Member] | |||||
Share-based compensation [Line Items] | |||||
Number of share options outstanding in share-based payment arrangement | 17,500 | 17,500 | 17,500 | 37,800 | 37,800 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | $ 20.02 | $ 20.02 | |||
Number of share options exercised in share-based payment arrangement | 20,300 | 20,300 | |||
Weighted average exercise price of share options exercised in share-based payment arrangement | $ / shares | € 20.02 | ||||
Number of share options exercisable in share-based payment arrangement | 17,500 | 17,500 | 17,500 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ / shares | $ 20.02 |
Information on remuneration - T
Information on remuneration - Text Details (Detail) | 12 Months Ended | |||
Dec. 31, 2021EUR (€)€ / shares | Dec. 31, 2020EUR (€)€ / shares | Dec. 31, 2019EUR (€)€ / shares | ||
Executive committee [Member] | ||||
Information on remuneration [Line Items] | ||||
Number of members throughout the period | 16 | |||
Key management personnel compensation | [1] | € 33,358,405 | € 33,170,901 | € 29,968,678 |
Number of members | 13 | 15 | 14 | |
Number of share options outstanding in share-based payment arrangement | 184,900 | 193,300 | 291,520 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € / shares | € 17.15 | € 17.31 | € 18.61 | |
Board of management [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | € 10,300,000 | € 11,400,000 | € 9,700,000 | |
Percentage of shares held by board of management | 1.00% | |||
Board of management [Member] | Share-based compensation expenses [Member] | ||||
Information on remuneration [Line Items] | ||||
Directors' remuneration expense | 0 | € 554,437 | 0 | |
Supervisory board [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | € 1,325,891 | € 1,314,587 | 1,202,916 | |
Other compensation, product arrangement entitlement | € 2,000 | |||
[1] | The Executive Committee consisted of 13 members as per December 31, 2021 (2020: 15 members; 2019: 14 members) |
Information on remuneration - R
Information on remuneration - Remuneration costs of the Executive Committee (Detail) - Executive committee [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1] | € 33,358,405 | € 33,170,901 | € 29,968,678 |
Base salary [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1] | 9,598,588 | 9,299,794 | 9,241,364 |
Annual incentive [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[2] | 5,250,408 | 6,726,768 | 5,566,763 |
Performance share plans [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[3],[4] | 12,610,073 | 13,153,975 | 11,143,320 |
Restricted shares [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[3] | 1,380,644 | 288,372 | 168,404 |
Pension allowances [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[5] | 2,107,953 | 2,054,570 | 2,076,834 |
Pension scheme costs [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1] | 306,694 | 382,513 | 440,003 |
Other compensation [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[6] | € 2,104,044 | € 1,264,908 | € 1,331,990 |
[1] | The Executive Committee consisted of 13 members as per December 31, 2021 (2020: 15 members; 2019: 14 members) | |||
[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 at the vesting/release date | |||
[4] | For 2021, a release of EUR 0 (2020: EUR 554,437; 2019: EUR 0) 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 -_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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 10,300,000 | € 11,400,000 | € 9,700,000 |
Base salary [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 2,720,000 | 2,690,000 | 2,636,250 |
Key management personnel compensation other | 168,742 | 179,428 | 154,256 |
Key management personnel compensation | 10,134,217 | 11,364,217 | 9,719,143 |
Base salary [Member] | F.A. van Houten [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 1,325,000 | 1,325,000 | 1,295,000 |
Key management personnel compensation other | 57,224 | 62,176 | 52,713 |
Key management personnel compensation | 5,452,299 | 6,153,067 | 5,260,111 |
Base salary [Member] | A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 790,000 | 785,000 | 770,000 |
Key management personnel compensation other | 68,908 | 70,267 | 63,265 |
Key management personnel compensation | 2,652,864 | 3,007,990 | 2,602,606 |
Base salary [Member] | M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 605,000 | 580,000 | 571,250 |
Key management personnel compensation other | 42,610 | 46,986 | 38,278 |
Key management personnel compensation | 2,029,054 | 2,203,160 | 1,856,426 |
Annual incentive [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 1,528,211 | 2,333,020 | 1,944,957 |
Annual incentive [Member] | F.A. van Houten [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 850,915 | 1,298,500 | 1,091,800 |
Annual incentive [Member] | A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 360,103 | 596,600 | 517,472 |
Annual incentive [Member] | M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, short-term employee benefits | 317,192 | 437,920 | 335,685 |
Performance share plans [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 4,684,863 | 5,122,916 | 3,944,464 |
Performance share plans [Member] | F.A. van Houten [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 2,626,295 | 2,874,467 | 2,235,166 |
Performance share plans [Member] | A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 1,172,533 | 1,295,996 | 995,483 |
Performance share plans [Member] | M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 886,035 | 952,453 | 713,815 |
Restricted shares [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 0 | 0 | 0 |
Restricted shares [Member] | F.A. van Houten [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 0 | 0 | 0 |
Restricted shares [Member] | A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 0 | 0 | 0 |
Restricted shares [Member] | M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, share-based payment | 0 | 0 | 0 |
Pension allowances [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | 950,014 | 957,849 | 960,076 |
Pension allowances [Member] | F.A. van Houten [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | 565,403 | 565,922 | 559,052 |
Pension allowances [Member] | A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | 233,857 | 233,126 | 230,006 |
Pension allowances [Member] | M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | 150,755 | 158,800 | 171,018 |
Pension scheme costs [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | 82,387 | 81,004 | 79,140 |
Pension scheme costs [Member] | F.A. van Houten [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | 27,462 | 27,001 | 26,380 |
Pension scheme costs [Member] | A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | 27,462 | 27,001 | 26,380 |
Pension scheme costs [Member] | M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation, post-employment benefits | € 27,462 | € 27,001 | € 26,380 |
Information on remuneration - A
Information on remuneration - Accumulated annual pension entitlements and pension-related costs (Detail) - Board of management [Member] | Dec. 31, 2021EUR (€) |
Information on remuneration [Line Items] | |
Pension-related costs | € 1,032,402 |
F.A. van Houten [Member] | |
Information on remuneration [Line Items] | |
Age | 61 |
Accumulated annual pension | € 331,208 |
Pension-related costs | € 592,865 |
A. Bhattacharya [Member] | |
Information on remuneration [Line Items] | |
Age | 60 |
Accumulated annual pension | € 35,102 |
Pension-related costs | € 261,319 |
M.J. van Ginneken [Member] | |
Information on remuneration [Line Items] | |
Age | 48 |
Accumulated annual pension | € 48,015 |
Pension-related costs | € 178,217 |
Information on remuneration -_3
Information on remuneration - Remuneration of the Supervisory Board (Detail) - Supervisory board [Member] - EUR (€) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 1,325,891 | € 1,314,587 | € 1,202,916 |
F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 177,346 | 87,513 | |
P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 142,440 | 119,102 | 114,500 |
J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 69,505 | 201,345 | 197,000 |
C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 57,397 | 171,269 | 187,167 |
N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 120,269 | 125,269 | 145,000 |
O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 40,137 | 116,269 | 131,833 |
D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 138,639 | 154,269 | 158,500 |
A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 116,269 | 116,269 | 121,333 |
M.E. Doherty [member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 131,769 | 133,769 | 51,500 |
P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 136,769 | 89,513 | |
I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 116,269 | ||
S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 79,081 | ||
H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 55,333 | ||
J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 40,750 | ||
Membership [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 1,044,644 | 1,013,333 | 870,000 |
Membership [Member] | F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 141,301 | 76,667 | |
Membership [Member] | P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 109,863 | 100,000 | 100,000 |
Membership [Member] | J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 53,507 | 155,000 | 155,000 |
Membership [Member] | C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 39,699 | 115,000 | 115,000 |
Membership [Member] | N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 100,000 | 100,000 |
Membership [Member] | O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 34,521 | 100,000 | 100,000 |
Membership [Member] | D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 100,000 | 100,000 |
Membership [Member] | A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 100,000 | 100,000 |
Membership [Member] | M.E. Doherty [member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 100,000 | 41,667 |
Membership [Member] | P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 66,667 | |
Membership [Member] | I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | ||
Membership [Member] | S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 65,753 | ||
Membership [Member] | H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 33,333 | ||
Membership [Member] | J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 25,000 | ||
Committees [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 242,652 | 236,000 | 201,916 |
Committees [Member] | F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 27,808 | 9,333 | |
Committees [Member] | P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 27,808 | 9,333 | 0 |
Committees [Member] | J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 12,082 | 35,000 | 35,000 |
Committees [Member] | C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 16,915 | 49,000 | 50,167 |
Committees [Member] | N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 18,000 | 18,000 | 18,000 |
Committees [Member] | O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 4,833 | 14,000 | 19,833 |
Committees [Member] | D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 36,370 | 42,000 | 41,500 |
Committees [Member] | A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 14,000 | 14,000 | 9,333 |
Committees [Member] | M.E. Doherty [member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 27,000 | 24,000 | 1,500 |
Committees [Member] | P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 32,000 | 21,333 | |
Committees [Member] | I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 14,000 | ||
Committees [Member] | S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 11,836 | ||
Committees [Member] | H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 16,333 | ||
Committees [Member] | J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 10,250 | ||
Other compensation [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 38,595 | 65,254 | 131,000 |
Other compensation [Member] | F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 8,237 | 1,513 | |
Other compensation [Member] | P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 4,769 | 9,769 | 14,500 |
Other compensation [Member] | J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 3,916 | 11,345 | 7,000 |
Other compensation [Member] | C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 783 | 7,269 | 22,000 |
Other compensation [Member] | N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 2,269 | 7,269 | 27,000 |
Other compensation [Member] | O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 783 | 2,269 | 12,000 |
Other compensation [Member] | D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 2,269 | 12,269 | 17,000 |
Other compensation [Member] | A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 2,269 | 2,269 | 12,000 |
Other compensation [Member] | M.E. Doherty [member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 4,769 | 9,769 | 8,333 |
Other compensation [Member] | P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 4,769 | € 1,513 | |
Other compensation [Member] | I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 2,269 | ||
Other compensation [Member] | S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 1,492 | ||
Other compensation [Member] | H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 5,667 | ||
Other compensation [Member] | J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 5,500 |
Information on remuneration - S
Information on remuneration - Shares held by Board members (Detail) - Board of management [Member] - shares | Dec. 31, 2021 | Dec. 31, 2020 | |
F.A. van Houten [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 525,761 | 424,029 |
A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 148,365 | 123,077 |
M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 110,528 | 88,996 |
[1] | Reference date for board membership is December 31, 2021. | ||
[2] | The total shares held by the members of the Board of Management is less than 1% of the company's issued share capital. |
Fair value of financial asset_3
Fair value of financial assets and liabilities - Text Details (Detail) - EPD Solutions Ltd [Member] | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value of financial assets and liabilities [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 | |
Bottom of range [member] | ||
Fair value of financial assets and liabilities [Line Items] | ||
Milestones and discount rates | 8 | |
Bottom of range [member] | Milestone [member] | ||
Fair value of financial assets and liabilities [Line Items] | ||
Change in fair value of contingent consideration | (0.11) | |
Bottom of range [member] | Discount rates [member] | ||
Fair value of financial assets and liabilities [Line Items] | ||
Change in fair value of contingent consideration | (0.04) | |
Top of range [member] | ||
Fair value of financial assets and liabilities [Line Items] | ||
Milestones and discount rates | 9 | |
Top of range [member] | Milestone [member] | ||
Fair value of financial assets and liabilities [Line Items] | ||
Change in fair value of contingent consideration | 0.11 | |
Top of range [member] | Discount rates [member] | ||
Fair value of financial assets and liabilities [Line Items] | ||
Change in fair value of contingent consideration | 0.04 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | € 283 | € 248 | ||||||
Financial assets at fair value through other comprehensive income | 368 | 237 | ||||||
Derivative financial assets | 63 | 111 | ||||||
Financial assets, at fair value | 714 | 596 | ||||||
Cash and cash equivalents | [1] | 2,303 | [2] | 3,226 | [2] | € 1,425 | [2] | € 1,688 |
Trade and other current receivables | 3,787 | 4,156 | ||||||
Trade and other non-current receivables | 224 | 230 | ||||||
Financial assets at amortised cost | 6,296 | 7,558 | ||||||
Financial assets | 7,010 | 8,154 | ||||||
Contingent Consideration | 208 | 318 | ||||||
Financial Liabilities Carried At FV through P&L | 208 | 318 | ||||||
Derivative financial liabilities | 202 | 163 | ||||||
Financial liabilities, at fair value | 410 | 481 | ||||||
Trade and other current payables | 1,872 | [3],[4] | 2,119 | |||||
Interest payable | 52 | 52 | ||||||
Debt (Corporate bond and finance lease) | 5,765 | 5,655 | ||||||
Debt (Bank loans, overdrafts etc.) | 1,214 | 1,279 | ||||||
Financial liabilities at amortised cost | 8,904 | 9,104 | ||||||
Financial liabilities | 9,314 | 9,585 | ||||||
Financial assets at amortised cost, category [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Cash and cash equivalents | 2,303 | 3,226 | ||||||
Current loans and receivables | 2 | 0 | ||||||
Non-current loans and receivables | 47 | 37 | ||||||
Trade and other current receivables | 3,720 | 4,065 | ||||||
Trade and other non-current receivables | 224 | 230 | ||||||
Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 68 | 91 | ||||||
At fair value [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 283 | 248 | ||||||
Financial assets at fair value through other comprehensive income | 368 | 237 | ||||||
Derivative financial assets | 63 | 111 | ||||||
Financial assets, at fair value | 714 | 596 | ||||||
Contingent Consideration | 208 | 318 | ||||||
Financial Liabilities Carried At FV through P&L | 208 | 318 | ||||||
Derivative financial liabilities | 202 | 163 | ||||||
Financial liabilities, at fair value | 410 | 481 | ||||||
Debt (Corporate bond and finance lease) | 6,396 | 6,431 | ||||||
At fair value [member] | Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 68 | 91 | ||||||
Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 245 | 212 | ||||||
Financial assets at fair value through other comprehensive income | 278 | 198 | ||||||
Financial assets, at fair value | 523 | 411 | ||||||
Contingent Consideration | 208 | 318 | ||||||
Financial Liabilities Carried At FV through P&L | 208 | 318 | ||||||
Financial liabilities, at fair value | 208 | 318 | ||||||
Financial liabilities | 208 | 318 | € 354 | |||||
Level 3 of fair value hierarchy [member] | Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 68 | 91 | ||||||
Level 1 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 4 | 5 | ||||||
Financial assets at fair value through other comprehensive income | 63 | 12 | ||||||
Financial assets, at fair value | 67 | 17 | ||||||
Debt (Corporate bond and finance lease) | 5,177 | 5,216 | ||||||
Level 2 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 34 | 30 | ||||||
Financial assets at fair value through other comprehensive income | 27 | 27 | ||||||
Derivative financial assets | 63 | 111 | ||||||
Financial assets, at fair value | 124 | 168 | ||||||
Derivative financial liabilities | 202 | 163 | ||||||
Financial liabilities, at fair value | 202 | 163 | ||||||
Debt (Corporate bond and finance lease) | 1,220 | 1,216 | ||||||
Debt securities [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 233 | 207 | ||||||
Financial assets measured at fair value through other comprehensive income | 27 | 27 | ||||||
Debt securities [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 233 | 207 | ||||||
Financial assets measured at fair value through other comprehensive income | 27 | 27 | ||||||
Debt securities [member] | Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 233 | 207 | ||||||
Financial assets measured at fair value through other comprehensive income | 0 | |||||||
Debt securities [member] | Level 2 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 27 | 27 | ||||||
Other equity securities [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 4 | 5 | ||||||
Other equity securities [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 4 | 5 | ||||||
Financial assets measured at fair value through other comprehensive income | 273 | 119 | ||||||
Other equity securities [member] | Carrying amount [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 273 | 119 | ||||||
Other equity securities [member] | Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 210 | 107 | ||||||
Other equity securities [member] | Level 1 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 4 | 5 | ||||||
Financial assets measured at fair value through other comprehensive income | 63 | 12 | ||||||
Other Financial Assets [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 46 | 36 | ||||||
Other Financial Assets [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 46 | 36 | ||||||
Other Financial Assets [member] | Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 12 | 5 | ||||||
Other Financial Assets [member] | Level 2 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets at fair value through profit or loss | 34 | 30 | ||||||
Current assets [Member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 0 | 0 | ||||||
Current assets [Member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | € 0 | € 0 | ||||||
[1] | 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 in the accompanying notes of the consolidated financial statements. | |||||||
[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] | 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. |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets | € 7,010 | € 8,154 | |||
Financial liabilities | 9,314 | 9,585 | |||
Level 3 of fair value hierarchy [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial liabilities | 208 | 318 | € 354 | ||
Assumed in a Business Combination | 16 | ||||
Utilizations | (48) | 15 | |||
Gains (losses) recognised in profit or loss including exchange differences, fair value measurement, liabilities | (87) | (93) | |||
Financial income and expenses | 1 | [1] | 6 | ||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, liabilities | 9 | [2] | (6) | [3] | |
Financial liabilities recognised as of acquisition date | 70 | ||||
Level 3 of fair value hierarchy [member] | Financial assets, class [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets | 523 | 411 | |||
Purchases, fair value measurement, assets | 113 | 127 | |||
Sales, fair value measurement, assets | 122 | 60 | |||
Financial income and expenses | 98 | [1] | 129 | ||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, assets | 12 | [2] | (8) | [3] | |
Receivables Held To Collect And Sell | € (25) | € 11 | |||
Level 3 of fair value hierarchy [member] | Financial assets, class [member] | IFRS 9 [Member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets | € 212 | ||||
[1] | Refer to Financial income and expenses | ||||
[2] | Includes translation differences | ||||
[3] | Includes translation differences |
Fair value of financial asset_6
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, 2021 | Dec. 31, 2020 |
Fair value of financial assets and liabilities [Line Items] | ||
Gross financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | € 63 | € 111 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 63 | 111 |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial assets | 47 | 55 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | € 17 | € 57 |
Fair value of financial asset_7
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, 2021 | Dec. 31, 2020 |
Fair value of financial assets and liabilities [Line Items] | ||
Gross financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € 202 | € 163 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 202 | 163 |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 47 | 55 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € 155 | € 109 |
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, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2021USD ($) | Jul. 31, 2021EUR (€) | May 31, 2021EUR (€) | Dec. 31, 2018EUR (€) | |||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Cash and cash equivalents | [1] | € 2,303 | [2] | € 3,226 | [2] | € 1,425 | [2] | € 1,688 | |||
Short-term deposits, classified as cash equivalents | 1,357 | 1,983 | |||||||||
Notional amount | 745 | ||||||||||
Euro Medium-Term Note program | 10,000 | 10,000 | |||||||||
Other non-current financial assets | 630 | 430 | 248 | ||||||||
Contractual capital commitments | 104 | 132 | |||||||||
Accounts payable known to have been sold onwards under supplier finance arrangements | 139 | 227 | |||||||||
Future cash outflow for leased assets | 381 | ||||||||||
Committed future leases not yet commenced | 91 | ||||||||||
Minimum payments under sale-and-leaseback arrangements | 85 | 112 | |||||||||
Discounted unguaranteed residual value of assets subject to finance lease | 0.2 | € 0.2 | |||||||||
Hedge tenor of net anticipated exposure | 15 months | ||||||||||
Net anticipated exposures hedge layer size | 20.00% | ||||||||||
Net anticipated exposures hedge maximum | 80.00% | ||||||||||
Equity | 14,475 | [2] | € 11,901 | [2] | € 12,625 | [2] | 12,084 | ||||
Net fair value of transactional hedges | € (27) | ||||||||||
Increase in the value of the EUR against all currencies | 10.00% | 10.00% | |||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (137) | ||||||||||
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 | € 17 | ||||||||||
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 | € 119 | ||||||||||
Other comprehensive income, before tax, exchange differences on translation of foreign operations | 1,078 | (1,040) | 218 | ||||||||
Change in currency translation reserve following 10% decrease USD against EUR | 1,132 | ||||||||||
Change in currency translation reserve following 10% increase USD against EUR | 1,383 | ||||||||||
Cross-currency interest rate swaps nominal value | 500 | 500 | |||||||||
Fair value liability of cross-currency interest rate swaps designated as net investment hedges | 116 | 83 | |||||||||
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 | (1,313) | 1,210 | |||||||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | 1.1 | 0.2 | |||||||||
Net fair value of financing derivatives | 116 | 83 | |||||||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | 40 | 53 | |||||||||
Borrowings | [2] | 6,980 | 6,934 | 5,447 | |||||||
Non-current portion of non-current borrowings | [2] | 6,473 | 5,705 | 4,939 | |||||||
Current borrowings and current portion of non-current borrowings | [2] | € 506 | € 1,229 | € 508 | |||||||
Ratio of fixed-rate long-term debt to total outstanding debt | 90.00% | 79.00% | 90.00% | ||||||||
Borrowings, maturity | 6.0 | ||||||||||
Instantaneous increase or decrease in long-term interest rates | 1.00% | ||||||||||
Financial assets, at fair value | € 714 | € 596 | |||||||||
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 | ||||||||||
Top of range [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Policy deductibles per occurrence | 5 | ||||||||||
Bottom of range [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Policy deductibles per occurrence | 0.3 | ||||||||||
United States of America [Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Country risk exposure | 13,800 | ||||||||||
China [Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Country risk exposure | 1,300 | ||||||||||
Other countries [Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Country risk exposure | 500 | ||||||||||
United Kingdom of Great Britain and Northern Ireland [Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Country risk exposure | 799 | ||||||||||
India [Member] | Top of range [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Country risk exposure | 305 | ||||||||||
US Dollar [Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (78) | (71) | |||||||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | € 86 | ||||||||||
Change in the value of derivatives following a 10% increase in the value of a currency against EUR | € 40 | ||||||||||
Reserve of exchange differences on translation [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Description of methods and assumptions used in preparing sensitivity analysis | 10% | ||||||||||
Cash flow hedges [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Gain (loss) on hedge ineffectiveness | |||||||||||
Reserve of cash flow hedges [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Equity | (25) | 23 | € (24) | € (10) | |||||||
Change in value of forward elements of forward contracts and time value of options[Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Equity | 30 | ||||||||||
Level 1 of fair value hierarchy [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Financial assets, at fair value | 67 | 17 | |||||||||
Level 1 of fair value hierarchy [member] | Equity investments [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Other non-current financial assets | 67 | ||||||||||
Financial assets, at fair value | 67 | 17 | |||||||||
Level 2 and 3 of fair value hierarchy [member] | Equity investments [member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Financial assets measured at fair value through other comprehensive income | € 210 | ||||||||||
Commercial Paper Programme [Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Notional amount | $ 2,500 | € 150 | € 300 | ||||||||
Royal Philips NV [Member] | |||||||||||
Details of treasury and other financial risks [Line Items] | |||||||||||
Commercial Paper Program | 2,500 | ||||||||||
Undrawn borrowing facilities | € 1,000 | ||||||||||
[1] | 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 in the accompanying notes of the consolidated financial statements. | ||||||||||
[2] | Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Reconciliation of non-IFRS information |
Details of treasury and other_4
Details of treasury and other financial risks - Contractual cash obligations (Detail) - EUR (€) € in Millions | Dec. 31, 2021 | Dec. 31, 2020 | ||
Details of treasury and other financial risks [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | € 7,233 | ||
Gross lease liabilities | 1,333 | [1],[3] | € 1,325 | |
Short-term debt | [1],[3] | 47 | ||
Derivative liabilities | [1],[3] | 208 | ||
Purchase obligations | [1],[3],[4] | 654 | ||
Trade and other current payables | 1,872 | [1],[3] | 2,119 | |
Contractual cash obligations | [1],[3] | 11,347 | ||
Not later than one year [member] | ||||
Details of treasury and other financial risks [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 246 | ||
Gross lease liabilities | 280 | [1],[3] | 290 | |
Short-term debt | [1],[3] | 47 | ||
Derivative liabilities | [1],[3] | 87 | ||
Purchase obligations | [1],[3],[4] | 237 | ||
Trade and other current payables | [1],[3] | 1,872 | ||
Contractual cash obligations | [1],[3] | 2,768 | ||
Later than one year and not later than three years [member] | ||||
Details of treasury and other financial risks [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 1,995 | ||
Gross lease liabilities | [1],[3] | 397 | ||
Derivative liabilities | [1],[3] | 121 | ||
Purchase obligations | [1],[3],[4] | 305 | ||
Contractual cash obligations | [1],[3] | 2,819 | ||
Later than three years and not later than five years [member] | ||||
Details of treasury and other financial risks [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 1,924 | ||
Gross lease liabilities | [1],[3] | 238 | ||
Purchase obligations | [1],[3],[4] | 99 | ||
Contractual cash obligations | [1],[3] | 2,261 | ||
Later than five years [member] | ||||
Details of treasury and other financial risks [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 3,068 | ||
Gross lease liabilities | 417 | [1],[3] | € 384 | |
Purchase obligations | [1],[3],[4] | 12 | ||
Contractual cash obligations | [1],[3] | € 3,498 | ||
[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, 2021 | Dec. 31, 2020 |
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | € 85 | € 112 |
Not later than one year [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 72 | |
Later than one year and not later than two years [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 51 | |
Later than two years and not later than three years [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 33 | |
Later than three years and not later than four years [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 17 | |
Later than four years and not later than five years [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 8 | |
Later than five years [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | € 21 |
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, 2021 | Dec. 31, 2020 |
Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | € 5,131 | € 4,707 |
Hedge of transaction exposure | 3,363 | 3,150 |
Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 1,559 | 1,488 |
Hedge of transaction exposure | € 1,267 | |
Payables cash flow [Member] | Cash flow hedges [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Hedge of transaction exposure | 1,322 | |
US Dollar [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 2,168 | |
Hedge of transaction exposure | (1,614) | |
US Dollar [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 1,030 | |
Hedge of transaction exposure | 958 | |
Yen [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 665 | |
Hedge of transaction exposure | 306 | |
Yen [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 11 | |
Hedge of transaction exposure | 10 | |
Pound Sterling [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 338 | |
Hedge of transaction exposure | 179 | |
Pound Sterling [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 11 | |
Hedge of transaction exposure | 11 | |
Yuan Renminbi [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 624 | |
Hedge of transaction exposure | 433 | |
Yuan Renminbi [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 83 | |
Hedge of transaction exposure | 71 | |
Canadian Dollar [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 338 | |
Hedge of transaction exposure | 173 | |
Zloty [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 70 | |
Hedge of transaction exposure | 31 | |
Australian Dollar [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 240 | |
Hedge of transaction exposure | 122 | |
Swiss Franc [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 124 | |
Hedge of transaction exposure | 57 | |
Swiss Franc [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 2 | |
Hedge of transaction exposure | 2 | |
Czech Koruna [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 63 | |
Hedge of transaction exposure | 29 | |
Swedish Krona [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 71 | |
Hedge of transaction exposure | 30 | |
Swedish Krona [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | (1) | |
Hedge of transaction exposure | 1 | |
Russian Ruble [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 125 | |
Russian Ruble [Member] | Receivables cash flow [Member] | Cash flow hedges [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Hedge of transaction exposure | 113 | |
Others [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 306 | |
Hedge of transaction exposure | 275 | |
Others [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 419 | |
Hedge of transaction exposure | € 267 |
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, 2021 | Dec. 31, 2020 | |
Details of treasury and other financial risks [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | € (137) | |
US Dollar [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (78) | € (71) |
Yen [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (13) | (17) |
Pound Sterling [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (14) | (15) |
Swiss Franc [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (5) | (6) |
Zloty [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | (3) | (8) |
RUB [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | € (10) | € (8) |
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, 2021 | Dec. 31, 2020 | |
Details of treasury and other financial risks [Line Items] | |||
Increase in the value of the fixed rate long term debt excluding forward contracts driven by 1% interest decrease | [1],[2],[3] | € (297) | € (345) |
Decrease in the value of the fixed rate long term debt excluding forward contracts driven by 1% interest increase | [1],[2],[3] | 298 | 346 |
Annualized net interest expense driven by 1% interest increase | [2],[4] | € 20 | € 28 |
[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 31, 2021, 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, 2021. |
Details of treasury and other_9
Details of treasury and other financial risks - Credit risk with number of counterparties (Detail) | Dec. 31, 2021 |
Range 10-100 million [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 4 |
Range 10-100 million [Member] | AA- Rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 1 |
Range 10-100 million [Member] | A+ rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 1 |
Range 10-100 million [Member] | A rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 1 |
Range 10-100 million [Member] | A- rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 1 |
Range 100-500 million [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 7 |
Range 100-500 million [Member] | A+ rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 4 |
Range 100-500 million [Member] | A rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 1 |
Range 100-500 million [Member] | A- rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 2 |
Subsequent events - Text Detail
Subsequent events - Text Details (Detail) - EUR (€) € in Millions | Jan. 11, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsequent events [Line Items] | |||
Aggregated net cash outflow for acquisitions | € 2,824 | € 259 | |
Vesper Medical [Member] | |||
Subsequent events [Line Items] | |||
Aggregated net cash outflow for acquisitions | € 227 |
Uncategorized Items - phg-20211
Label | Element | Value |
Ordinary shares [member] | ||
Number of shares outstanding | ifrs-full_NumberOfSharesOutstanding | 914,184,087 |