Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 € / shares shares | |
Document And Entity Information [Line Items] | |
Entity Central Index Key | 0000313216 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
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/A |
Document Period End Date | Dec. 31, 2022 |
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 | 881,480,527 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Consolidated statements of income [Abstract] | |||||||
Sales | € 17,827 | € 17,156 | € 17,313 | ||||
Cost of sales | 10,633 | 9,988 | 9,493 | ||||
Gross margin | 7,194 | 7,168 | 7,820 | ||||
Selling expenses | 4,609 | 4,258 | 4,054 | ||||
General and administrative expenses | 671 | 599 | 630 | ||||
Research and development expenses | 2,103 | 1,806 | 1,822 | ||||
Impairment of goodwill | [1] | 1,357 | 15 | 144 | |||
Other business income | 127 | 186 | 122 | ||||
Other business expenses | 109 | 123 | 29 | ||||
Income from operations | (1,529) | 553 | 1,264 | ||||
Financial income | 58 | 149 | 158 | ||||
Financial expenses | 258 | 188 | 202 | ||||
Investments in associates, net of income taxes | (2) | (4) | (9) | ||||
Income before taxes | (1,731) | 509 | 1,211 | ||||
Income tax expenses | (113) | (103) | 212 | ||||
Income from continuing operations | (1,618) | [1] | 612 | [2] | 999 | [1] | |
Discontinued operations, net of income taxes | 13 | [1] | 2,711 | [1] | 196 | [2] | |
Net income | (1,605) | [2] | 3,323 | [1] | 1,195 | [1] | |
Net income attributable to shareholders of Koninklijke Philips N.V | [2] | (1,608) | 3,319 | 1,187 | |||
Net income attributable to non-controlling interests | [2] | € 3 | € 4 | € 8 | |||
Basic earnings per common share attributable to shareholders of Koninklijke Philips N.V. - Income from continuing operations | € (1.84) | € 0.67 | € 1.09 | ||||
Basic earnings per common share attributable to shareholders of Koninklijke Philips N.V. - Net income | [2] | (1.82) | 3.67 | 1.31 | |||
Diluted earnings per common share attributable to shareholders of Koninklijke Philips N.V. - Income from continuing operations | (1.84) | 0.67 | 1.08 | ||||
Diluted earnings per common share attributable to shareholders of Koninklijke Philips N.V. - Net income | [2],[3] | € (1.82) | € 3.65 | € 1.29 | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 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 |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Consolidated statements of comprehensive income [Abstract] | ||||||
Net income for the period | € (1,605) | [1] | € 3,323 | [2] | € 1,195 | [2] |
Pensions and other-post employment plans: Remeasurement, before tax | 101 | 134 | 51 | |||
Pensions and other-post employment plans: Income tax effect on remeasurements | 20 | 21 | 12 | |||
Financial assets fair value through OCI: Net current-period change, before tax | (32) | (39) | 0 | |||
Financial assets fair value through OCI: Income tax effect on net current-period change | 1 | 1 | 0 | |||
Total of items that will not be reclassified to Income Statement | 49 | 74 | 39 | |||
Currency translation differences: Net current period change, before tax | 748 | 1,078 | (1,040) | |||
Currency translation differences: Income tax effect on net current-period change | (2) | 5 | (1) | |||
Currency translation differences: Reclassification adjustment for (gain) loss realized | 0 | (36) | ||||
Currency translation differences: Reclassification adjustment for (gain) loss realized, in discontinued operations | (69) | |||||
Cash flow hedges: Net current-period change, before tax | (29) | (52) | 69 | |||
Cash flow hedges: Income tax effect on net current-period change | 10 | (18) | 17 | |||
Cash flow hedges: Reclassification adjustment for (gain) loss realized | (63) | 14 | 6 | |||
Total of items that are or may be reclassified to Income Statement | 774 | 1,129 | (992) | |||
Other comprehensive income for the period | 823 | 1,203 | (953) | |||
Total comprehensive income for the period | (782) | 4,527 | 242 | |||
Total comprehensive income attributable to: Shareholders of Koninklijke Philips N.V | (786) | 4,520 | 235 | |||
Total comprehensive income attributable to: Non-controlling interests | € 4 | € 7 | € 6 | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated balance sheets [Abstract] | |||
Property, plant and equipment | € 2,638 | € 2,699 | |
Goodwill | 10,238 | 10,637 | |
Intangible assets excluding goodwill | 3,526 | 3,650 | |
Non-current receivables | 279 | 224 | |
Investments in associates | 537 | 426 | |
Other non-current financial assets | 660 | 630 | |
Non-current derivative financial assets | 4 | 2 | |
Deferred tax assets | 2,449 | 2,216 | |
Other non-current assets | 98 | 129 | |
Total non-current assets | 20,429 | 20,613 | |
Inventories | 4,049 | 3,450 | |
Other current financial assets | 11 | 2 | |
Other current assets | 490 | 493 | |
Current derivative financial assets | 123 | 61 | |
Income tax receivable | 222 | 180 | |
Current receivables | 4,115 | 3,787 | |
Assets classified as held for sale | 77 | 71 | |
Cash and cash equivalents | 1,172 | 2,303 | |
Total current assets | 10,259 | 10,347 | |
Total assets | 30,688 | 30,961 | |
Shareholders' equity | 13,249 | 14,438 | |
Equity - Common shares | 178 | 177 | |
Equity - Capital in excess of par value | 5,025 | 4,646 | |
Equity - Reserves | 1,488 | 748 | |
Equity - Other | 6,558 | 8,868 | |
Non-controlling interests | 34 | 36 | |
Group equity | 13,283 | 14,475 | |
Long-term debt | 7,270 | 6,473 | |
Non-current derivative financial liabilities | 4 | 119 | |
Long-term provisions | 1,097 | 1,315 | |
Deferred tax liabilities | 91 | 83 | |
Non-current contract liabilities | 515 | 446 | |
Non-current tax liabilities | 435 | 544 | |
Other non-current liabilities | 60 | 56 | |
Total non-current liabilities | 9,471 | 9,037 | |
Short-term debt | 931 | 506 | |
Current derivative financial liabilities | 207 | 83 | |
Income tax payable | 40 | 128 | |
Accounts payable | 1,968 | [1],[2] | 1,872 |
Accrued liabilities | 1,626 | 1,784 | |
Current contract liabilities | 1,696 | 1,491 | |
Short-term provisions | 1,018 | 998 | |
Liabilities directly associated with assets held for sale | 0 | 1 | |
Other current liabilities | 448 | 587 | |
Total current liabilities | 7,934 | 7,450 | |
Total liabilities and group equity | € 30,688 | € 30,961 | |
[1] Amounts in this table are undiscounted 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Consolidated statements of cash flows [Abstract] | ||||||
Profit (loss) | € (1,605) | [1] | € 3,323 | [2] | € 1,195 | [2] |
Cash flows from operating activities - Results of discontinued operations, net of income tax | 13 | [2] | 2,711 | [2] | 196 | [1] |
Cash flows from operating activities - Depreciation, amortization, and impairment of assets | 1,602 | 1,323 | 1,462 | |||
Cash flows from operating activities - Impairment of goodwill | 1,357 | 15 | 144 | |||
Cash flows from operating activities - Share-based compensation | 95 | 108 | 112 | |||
Cash flows from operating activities - Net loss (gain) on sale of assets | (115) | 55 | (1) | |||
Cash flows from operating activities - Interest income | 25 | 18 | 13 | |||
Cash flows from operating activities - Interest expense on debt, borrowings, and other liabilities | 226 | 152 | 159 | |||
Cash flows from operating activities - Investments in associates, net of income taxes | (112) | (4) | (9) | |||
Cash flows from operating activities - Income taxes | (113) | (103) | 212 | |||
Cash flows from operating activities - Decrease (increase) in working capital | 862 | 401 | 98 | |||
Cash flows from operating activities - Decrease (increase) in receivables and other current assets | (342) | (39) | 92 | |||
Cash flows from operating activities - Decrease (Increase) in inventories | (572) | (581) | (578) | |||
Cash flows from operating activities - Increase (decrease) in accounts payable, accrued and other current liabilities | 52 | 219 | 387 | |||
Cash flows from operating activities - Decrease (increase) in non-current receivables and other assets | (1) | 46 | 9 | |||
Cash flows from operating activities - Increase (decrease) in other liabilities | (84) | 33 | 50 | |||
Cash flows from operating activities - Increase (decrease) in provisions | (199) | 427 | (91) | |||
Cash flows from operating activities - Other items | (39) | (164) | 96 | |||
Cash flows from operating activities - Interest received | 15 | 17 | 13 | |||
Cash flows from operating activities - Interest paid | 205 | 151 | 148 | |||
Cash flows from operating activities - Dividends received from investments in associates | 12 | 14 | 4 | |||
Cash flows from operating activities - Income taxes paid | 333 | 249 | 390 | |||
Net cash provided by (used for) operating activities | (173) | 1,629 | 2,511 | |||
Cash flows from investing activities - Net capital expenditures | 788 | 729 | 876 | |||
Cash flows from investing activities - Purchase of intangible assets | 105 | 107 | 114 | |||
Cash flows from investing activities - Expenditures on development assets | 257 | 259 | 296 | |||
Cash flows from investing activities - Capital expenditures on property, plant and equipment | 444 | 397 | 485 | |||
Cash flows from investing activities - Proceeds from sales of property, plant and equipment | 18 | 33 | 19 | |||
Cash flows from investing activities - Net proceeds from (cash used for) derivatives and current financial assets | (72) | 48 | (13) | |||
Cash flows from investing activities - Purchase of other non-current financial assets | 116 | 124 | 131 | |||
Cash flows from investing activities - Proceeds from other non-current financial assets | 78 | 124 | 65 | |||
Cash flows from investing activities - Purchase of businesses, net of cash acquired | 712 | 3,098 | 317 | |||
Cash flows from investing activities - Net proceeds from sale of interests in businesses, net of cash disposed | 124 | 107 | 4 | |||
Net cash provided by (used for) for investing activities | (1,487) | (3,672) | (1,267) | |||
Cash flows from financing activities - Proceeds from issuance (payments on) short-term debt | 47 | (25) | 16 | |||
Cash flows from financing activities - Principal payments on current portion of long-term debt | 1,472 | 302 | 298 | |||
Cash flows from financing activities - Proceeds from issuance of long-term debt | 2,516 | 76 | 1,065 | |||
Cash flows from financing activities - Re-issuance of treasury shares | 12 | 23 | 46 | |||
Cash flows from financing activities - Purchase of treasury shares | 187 | 1,636 | 343 | |||
Cash flows from financing activities - Dividends paid to shareholders of Koninklijke Philips N.V | 412 | 482 | 1 | |||
Cash flows from financing activities - Dividends paid to shareholders of non-controlling interests | 6 | 2 | 2 | |||
Net cash provided by (used for) financing activities | 500 | (2,347) | 483 | |||
Net cash provided by (used for) continuing operations | (1,160) | (4,390) | 1,727 | |||
Net cash provided by (used for) discontinued operations | (12) | 3,403 | 129 | |||
Net cash provided by (used for) continuing and discontinued operations | (1,172) | (986) | 1,856 | |||
Effect of changes in exchange rates on cash and cash equivalents | 41 | 65 | (55) | |||
Cash and cash equivalents at the beginning of the period | 2,303 | 3,226 | 1,425 | |||
Cash and cash equivalents at the end of the period | € 1,172 | € 2,303 | € 3,226 | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Millions | Total | Issued capital [member] | Share premium [member] | Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | Reserve of cash flow hedges [member] | Reserve of exchange differences on translation [member] | Retained earnings [member] | Treasury shares [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] |
Balance as of January 1, 2020 at Dec. 31, 2019 | € 12,625 | € 179 | € 3,671 | € (303) | € (24) | € 978 | € 8,296 | € (201) | € 12,597 | € 28 |
Total comprehensive income (loss) | 242 | 0 | 46 | (1,036) | 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 December 31, 2020 at Dec. 31, 2020 | 11,901 | 182 | 4,400 | (305) | 23 | (58) | 7,828 | (199) | 11,870 | 31 |
Total comprehensive income (loss) | 4,527 | (39) | (48) | 1,175 | 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) | (821) | ||||||
Share call options | (9) | 12 | (21) | (9) | ||||||
Cancellation of treasury shares | (7) | (1,221) | 1,228 | |||||||
Share-based compensation plans | 110 | 110 | 110 | |||||||
Income tax share-based compensation plans | 4 | 4 | 4 | |||||||
Balance as of December 31, 2020 at Dec. 31, 2021 | 14,475 | 177 | 4,646 | (344) | (25) | 1,117 | 9,344 | (476) | 14,438 | 36 |
Total comprehensive income (loss) | (782) | (32) | 23 | 749 | (1,527) | (786) | 4 | |||
Dividend distributed | 418 | (3) | (326) | 741 | 412 | 6 | ||||
Transfer of gain on disposal of equity investments at FVTOCI to retained earnings | 0 | (1) | 1 | 0 | ||||||
Purchase of treasury shares | 24 | 0 | 24 | 24 | ||||||
Re-issuance of treasury shares | 7 | (43) | (28) | 77 | 7 | |||||
Forward contracts | (64) | 76 | (140) | (64) | ||||||
Share call options | (6) | 5 | (12) | (6) | ||||||
Cancellation of treasury shares | 299 | (2) | (298) | 299 | ||||||
Share-based compensation plans | 95 | 95 | 95 | |||||||
Income tax share-based compensation plans | (1) | (1) | (1) | |||||||
Balance as of December 31, 2020 at Dec. 31, 2022 | € 13,283 | € 178 | € 5,025 | € (376) | € (2) | € 1,866 | € 6,832 | € (275) | € 13,249 | € 34 |
General information to the Cons
General information to the Consolidated financial statements | 12 Months Ended |
Dec. 31, 2022 | |
General information to the Consolidated financial statements [Abstract] | |
General information to the Consolidated financial statements [Text Block] | 1 Reporting entity and its operations Koninklijke Philips N.V. the Netherlands public limited liability company High Tech Campus 52, 5656 AG Eindhoven, the Netherlands health technology company Basis of preparation The Consolidated financial statements are: prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and comply 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 2022 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; authorized for issue by the Board of Management of Royal Philips on February 21, 2023; prepared under the historical cost convention, unless otherwise indicated; prepared on a going concern basis; presented in euro, which is the presentation currency; rounded to the nearest million euro unless stated otherwise; subject to rounding, whereby amounts may not add up precisely to the totals provided. Accounting estimates and judgments The preparation of financial statements requires management to make a number of estimates and judgments that affect the application of accounting policies and the reporting amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Amounts recognized are based on factors that are by default associated with uncertainty. Actual results may therefore differ from estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to estimates are recognized prospectively. Where applicable, the estimates and judgments of specific financial statement items are described in the respective note to the consolidated financial statements. The areas involving a higher degree of judgment and complexity in applying accounting principles and for which changes in the assumptions and estimates could result in significantly different results than those recorded in the consolidated financial statements are the following: Assessment of control (below paragraph Basis of consolidation and Interests in entities Revenue recognition ( Income from operations For acquisitions, the identification and valuation of acquired assets and liabilities including contingent considerations provisions ( Acquisitions and divestments Provisions Determination of deferred tax assets for losses carried forward and uncertain tax positions ( Income taxes Assumptions used for impairment testing ( Property, plant and equipment Goodwill Intangible assets excluding goodwill Assessments of exposure to credit risk of financial instruments (Note Other financial assets Receivables Debt Fair value of financial assets and liabilities Details of treasury and other financial risks Assumptions used to determine the net realizable value of inventories ( Inventories Actuarial assumptions of future events that are used in calculating post-employment benefit expenses and liabilities ( Post-employment benefits Estimating the likelihood of a potential outflow of resources, as well as the ability to make a reliable estimate of the obligation relating to provisions and contingent liabilities ( Provisions Contingencies 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 the accounting policies, those which are primarily impacted by the macroeconomic environment include impairment testing, valuation of inventories, valuation of deferred tax balances, measurement of financial instruments and the determination of fair values (for example fair values of acquired identifiable intangible assets, contingent considerations and certain investments). 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 judgments, 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. Accounting policies The general accounting policies as applied throughout the financial statements are described below. Accounting policies relating to specific financial statement items are included in the respective notes to the financial statements. Basis of consolidation The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V. and all subsidiaries that the company controls on a consolidated basis. Control exists when the company is exposed or has rights to variable returns from its involvement with the investee and the company 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. 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 consolidated financial statements. Foreign currency transactions are converted into the functional currency using the exchange rates prevailing at transaction date or the valuation date in cases where items are remeasured. Gains and losses resulting from the settlement of foreign currency transactions and those resulting from the conversion of foreign currency denominated monetary assets and liabilities at period-end exchange rates are recognized in the Consolidated statements of income, except for qualifying cash flow hedges, qualifying net investment hedges and equity investments measured at fair value through OCI which are recognized in other comprehensive income. All foreign exchange differences are presented as part of Cost of sales, apart from 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 not a wholly-owned subsidiary, the 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. Philips operates in two economies that are considered hyperinflationary, Argentina and Turkey. The impact of the application of IAS 29, Financial Reporting in Hyperinflationary Economies, is not material for the consolidated financial statements. New accounting policies effective in 2022 No new IFRS accounting standards or amendments to existing standards, effective in 2022, had a significant impact on the consolidated financial statements. The company has not early adopted any standards or amendments to existing standards. New accounting policies effective after 2022 The IASB has issued several IFRS accounting standards, or amendments to standards, with an effective date after 2022. The company does not anticipate that the application of these standards, or amendments to standards, will have a significant effect on the consolidated financial statements upon adoption. Changes in presentation from the prior year Accounting policies have been applied consistently for all periods presented in these consolidated financial statements. Certain prior-year amounts have been reclassified to conform to the current year presentation due to immaterial organizational changes. |
Information by segment and main
Information by segment and main country | 12 Months Ended |
Dec. 31, 2022 | |
Information by segment and main country [Abstract] | |
Information by segment and main country [Text Block] | 2 Accounting policies Segment accounting policies are the same as the accounting policies applied by the company. 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 contains the items Innovation & Strategy, IP Royalties, Central costs, and other small items. The 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 was presented as a discontinued operation and therefore no longer part of the Personal Health segment. The comparative results prior to that were restated to reflect the treatment of the Domestic Appliances business as a discontinued operation. Refer to Discontinued operations and assets classified as held for sale Philips focuses on improving people’s lives through meaningful innovation. The Diagnosis & Treatment segment unites the businesses related to the goal of precision diagnosis and disease pathway selection, and the businesses related to image-guided, minimally invasive treatment. The Connected Care segment focuses on patient care solutions, advanced informatics and 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 segment focuses on healthy living and preventative care. The Executive Committee of Philips is deemed to be the chief operating decision maker (CODM) for segment reporting purposes pursuant to IFRS 8 'Operating Segments'. The key segmental performance measure is Adjusted EBITA, which Management believes is the most relevant measure to evaluate the results of the segments. Philips Group Information on income statements in millions of EUR sales sales including intercompany depreciation and amortization 1 Adjusted EBITA 2022 Diagnosis & Treatment 9,168 9,471 (559) 774 Connected Care 4,403 4,441 (514) 95 Personal Health 3,626 3,684 (132) 538 Other 629 596 (397) (89) Inter-segment eliminations (366) Philips Group 17,827 17,827 (1,602) 1,318 2021 Diagnosis & Treatment 8,635 8,846 (459) 1,071 Connected Care 4,573 4,617 (382) 497 Personal Health 3,429 3,462 (131) 590 Other 519 531 (350) (105) Inter-segment eliminations (299) Philips Group 17,156 17,156 (1,323) 2,054 2020 Diagnosis & Treatment 8,175 8,289 (536) 818 Connected Care 5,543 5,620 (414) 1,191 Personal Health 3,199 3,198 (145) 433 Other 396 481 (368) (165) Inter-segment eliminations (275) Philips Group 17,313 17,313 (1,462) 2,277 1) Includes impairments (excluding goodwill impairment); for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill The term Adjusted EBITA is used to evaluate the performance of Philips and its segments. EBITA represents Income from operations excluding amortization and impairment of acquired intangible assets and impairment of goodwill. Adjusted EBITA represents EBITA excluding gains or losses from restructuring costs, acquisition-related charges and other items. Adjusted EBITA is not a recognized measure of financial performance under IFRS. Presented in the following table is a reconciliation of Adjusted EBITA to the most directly comparable IFRS measure, Net income, for the years indicated. Net income is not allocated to segments as certain income and expense line items are monitored on a centralized basis, resulting in them being shown on a Philips Group level only. Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR Philips Group Diagnosis & Treatment Connected Care Personal Health Other 2022 Net Income (1,605) Discontinued operations, net of income taxes (13) Income tax expense (113) Investments in associates, net of income taxes 2 Financial expenses 258 Financial income (58) Income from operations (1,529) 404 (2,246) 515 (202) Amortization and impairment of acquired intangible assets 363 143 199 15 7 Impairment of goodwill 1,357 27 1,331 EBITA 192 573 (716) 531 (196) Restructuring and acquisition-related charges 202 21 108 11 61 Other items: 925 180 703 (4) 46 Respironics field-action provision 250 250 Respironics field-action running remediation costs 210 210 R&D project impairments 134 120 12 3 Portfolio realignment charges 109 109 Impairment of assets in S&RC 39 39 Provision for public investigations tender irregularities 60 60 Provisions for quality actions in Connected Care 59 59 Remaining items 63 - 24 (6) 46 Adjusted EBITA 1,318 774 95 538 (89) Philips Group Reconciliation from net income to Adjusted EBITA 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 (722) 576 (242) Amortization and impairment of acquired intangible assets 322 153 148 15 6 Impairment of goodwill 15 2 13 EBITA 890 1,097 (562) 591 (236) Restructuring and acquisition-related charges 95 7 93 (1) (5) Other items: 1,069 (32) 965 - 136 Respironics field-action provision 719 - 719 - Respironics field-action running remediation costs 94 94 Provisions for quality actions in Connected Care 94 94 Loss on divestment of business 76 76 Remaining items 87 (32) 58 - 61 Adjusted EBITA 2,054 1,071 497 590 (105) Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR Philips Group Diagnosis & Treatment Connected Care Personal Health Other 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 1,264 497 704 362 (300) Amortization and impairment of intangible assets 377 209 134 16 18 Impairment of goodwill 144 - 144 EBITA 1,784 706 982 378 (282) Restructuring and acquisition-related charges 195 29 97 31 37 Other items 299 83 112 24 81 Adjusted EBITA 2,277 818 1,191 433 (165) 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 2022 Netherlands 540 1,746 United States 7,246 12,087 China 2,193 290 Japan 1,077 436 Germany 821 323 United Kingdom 463 527 France 400 249 Other countries 5,085 744 Total main countries 17,827 16,402 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 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 ass
Discontinued operations and assets classified as held for sale | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued operations and assets classified as held for sale [Abstract] | |
Discontinued operations and assets classified as held for sale [Text Block] | 3 Accounting policies Assets classified as held-for-sale Non-current assets (or disposal groups) are classified as held-for-sale if their carrying amounts are expected be recovered through a sale transaction rather than through continuing use. Non-current assets (or disposal groups) classified as held-for-sale are measured at the lower of their carrying amount or the fair value less costs of disposal. Depreciation or amortization of an asset ceases when it is classified as held-for-sale. When non-current assets (or disposal groups) are classified as held-for-sale, comparative balances prior to such date are not represented in the Consolidated balance sheets. Discontinued operations A discontinued operation is a component of the company 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. Any gain or loss from disposal, together with the results of these operations until the date of disposal, are reported separately as discontinued operations in the Consolidated statements of income. 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 are re-presented for presentation of discontinued operations in the Consolidated statements of income and Consolidated statements of cash flows. Accounting estimates and judgments The determination of the fair value less costs of disposal involves the use of estimates and assumptions that tend to be uncertain. 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. In 2020, 2021 and 2022 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 2020 2021 2022 Domestic Appliances 206 2,698 3 Other (10) 13 10 Discontinued operations, net of income taxes 196 2,711 13 Discontinued operations: Domestic Appliances In 2022, net results from discontinued operations for Domestic Appliances was EUR 3 million. 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 2020 2021 2022 Sales 2,222 1,516 6 Costs and expenses (1,944) (1,322) (2) Income from operations 279 194 4 Result on the sale of discontinued operations 3,241 1 Income before tax 279 3,435 5 Income tax expense 1 (72) 6 (2) Income tax related the sale of discontinued operations (743) Results from discontinued operations 206 2,698 3 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 incurred in relation to the separation of the Domestic Appliances business in 2021 have been accounted for in continuing operations, because these costs reflect expenses incurred by Royal Philips in the divestment process and are not considered representative of the core business results of the Domestic Appliances business. 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 10 million in 2022, a net gain of EUR 13 million in 2021 and a net loss of EUR 10 million in 2020. 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 2020 2021 2022 Net cash provided by (used for) operating activities 129 85 (27) Net cash provided by (used for) investing activities 3,319 15 Net cash provided by (used for) discontinued operations 129 3,403 (12) In 2022, net cash used for discontinued operations was EUR (12) million and consisted primarily of cash flows related to the tax claims from the previously divested business. In 2021, net cash provided for 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 for 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 Assets classified as held for sale As of December 31, 2022, assets held for sale consists of property, plant and equipment mainly related to the APAC Center Singapore building. The sale was finalized in January 2023. As of December 31, 2021, assets held for sale consists of property, plant and equipment mainly related to the APAC Center Singapore building. |
Acquisitions and divestments
Acquisitions and divestments | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions and divestments [Abstract] | |
Acquisitions and divestments [Text Block] | 4 Accounting policies Acquisitions The company accounts for business combinations using the acquisition method when control is transferred to the group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition date and is initially 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 in the fair value of the contingent consideration are recognized in the Consolidated statements of income. Changes to the initial fair value of the acquired assets and liabilities, based on new information about the circumstances at the acquisition date, can be made up to twelve months after the acquisition date. Divestments 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 Accounting estimates and judgments Intangible assets acquired in a business acquisition and the financial liability related to non-controlling interest are measured at fair value at the date of the acquisition. To determine the fair value of intangible assets at the acquisition date, estimates and assumptions are required. The valuation of the identifiable intangible assets involves estimates of expected sales, earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty rate and growth rates. Estimates are also applied when determining the fair value of legal cases and tax positions in the acquired entity. The fair value is based on estimates of the likelihood, the expected timing and the amount of the potential cash outflow. Provisions for legal cases and non-income tax positions are recognized at fair value even if it is not probable that an outflow will be required to settle the obligation. After initial recognition and until the liability is settled, cancelled or expired, the liability is measured at the higher of the amount that would be recognized in accordance with IAS 37 'Provisions, contingent liabilities and contingent assets' and the initial liability amount. For income tax positions, the company applies IAS 12 'Income Taxes', which requires recognition of provisions only when the likelihood of cash outflow is considered probable. 2022 Acquisitions In 2022 Philips completed three acquisitions. The acquisitions involved aggregated net cash outflow of EUR 359 million and contingent consideration of EUR 96 million measured at fair value. Upon acquisition, the company recognized aggregated Goodwill of EUR 307 million, Other intangible assets of EUR 179 million, Deferred tax assets of EUR 20 million and Deferred tax liabilities generated from the intangible assets of EUR 43 million. Vesper Medical Inc. (Vesper) was the most notable acquisition and is discussed below. The remaining two acquisitions involved aggregated net cash outflow of EUR 139 million and contingent consideration of EUR 61 million measured at fair value. The two acquisitions resulted in aggregated Goodwill of EUR 130 million, Other intangible assets of EUR 95 million and Deferred tax liabilities of EUR 23 million. 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 2023. As of December 31, 2022, the valuation studies necessary to determine the fair value of the intangible assets and the valuation of goodwill are preliminary. Since the respective acquisition dates through December 31, 2022, the contribution to sales to third parties and net income of the three acquired entities was not material. The sales and net income of the combined entities would not differ materially from these amounts if the acquisition date had been January 1, 2022. Acquisition-related costs were not material. Vesper On January 11, 2022, Philips acquired all shares of Vesper for an amount of EUR 227 million in cash and EUR 34 million contingent consideration at fair value. Vesper, headquartered in Wayne, Pennsylvania, US, is a medical technology company that develops minimally-invasive peripheral vascular devices. The company is developing the Vesper DUO Venous Stent System®, commercialization of which is estimated to start after approval by the US Food and Drug Administration (FDA), expected in 2024. The Vesper DUO Venous Stent System® consists of venous stents intended to treat deep venous obstruction. It provides physicians with a modular portfolio to customize therapy, restore venous flow, and resolve the painful symptoms of deep venous disease for the broad range of patients suffering from chronic venous insufficiency. As of the acquisition date, Vesper forms part of the Image-Guided Therapy business portfolio of the Diagnosis & Treatment segment. The condensed opening balance sheet of Vesper was as follows: Opening balance sheet in millions of EUR At acquisition date Vesper Medical Inc, Assets Intangible assets excluding goodwill 84 Deferred tax assets 15 Cash 7 Total Assets 106 Liabilities Accounts payable and other payables (1) Deferred tax liabilities (20) Total Liabilities (21) Total identifiable net assets at fair value 85 Goodwill arising on acquisition 177 Total purchase consideration 262 Of which: Purchase consideration transferred 227 Contingent consideration 34 Goodwill recognized in the amount of EUR 177 million mainly represents revenue synergies expected from the combination of Philips’ peripheral vascular portfolio and Vesper's venous stenting solution to address the root cause of chronic deep venous disease (DVD). Strong clinical synergies between Vesper’s innovative stenting solution and Philips' existing peripheral vascular offering will help to better support clinicians to decide, guide, treat and confirm during the procedure, thereby enhancing patient care. Vesper Goodwill is not tax-deductible. The majority of the Intangible assets balance relates to capitalized development costs capitalized development costs apitalized development costs The contingent consideration arrangement requires Philips to pay the former owners of Vesper up to a maximum undiscounted amount of EUR 44 million contingent upon FDA approval of the Vesper DUO Venous Stent System. The fair value of the contingent consideration arrangement of EUR 34 million has been estimated by calculating the present value of the future expected cash flows. The estimate is based on a discount rate of 12% and assumed probability adjusted likelihood of FDA approval at a certain point in time. During 2022 Philips completed two divestments that were not material. 2021 Acquisitions In 2021 Philips completed two acquisitions, BioTelemetry, Inc. and Capsule Technologies, Inc., that involved aggregated net cash outflow of EUR 2,824 million. Including final purchase price adjustment processed in the course of 2022, the company recognized aggregated Goodwill of EUR 2,113 million, Other intangible assets of EUR 840 million and related Deferred tax liabilities of EUR 206 million. The 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 77 17 Inventories 11 11 Receivables and other current assets 75 97 Cash 205 19 Total Assets 1,082 371 Liabilities Accounts payable and other payables (278) (98) Deferred tax liabilities (160) (46) Long-term liabilities (82) (11) Acquired provision for contingent considerations (16) Total Liabilities (536) (155) Total identifiable net assets at fair value 547 217 Goodwill arising on acquisition 1,790 322 Purchase consideration transferred 2,337 539 BioTelemetry On February 9, 2021, Philips successfully completed a tender offer to acquire all issued and outstanding shares of BioTelemetry, Inc. for USD 72 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 1,790 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 322 million 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 were mainly recognized in General and administrative expenses. 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 the Statement of Income. |
Interests in entities
Interests in entities | 12 Months Ended |
Dec. 31, 2022 | |
Interests in entities [Abstract] | |
Interests in entities [Text Block] | 5 Accounting policies Associates are all entities over which the company has significant influence, but not control or joint control. Significant influence is presumed with a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The carrying amount of an investment in associate 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 associates 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. 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. Impairment losses and gains or losses on sale of investments are recorded in the Consolidated statements of income, more specifically on the line item ’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 is reduced to zero and recognition of further losses is discontinued except to the extent that the company has an obligation or made payments on behalf of the associate. 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, 2022 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 2022 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips Medizin Systeme Böblingen GmbH Germany 1 Philips Japan, Ltd. Japan Philips Consumer Lifestyle B.V. Netherlands Philips Oral Healthcare B.V. Netherlands Philips Ultrasound LLC United States Philips North America LLC United States Philips USA Export Corporation United States 1) Application of Sec. 264 (3) and Sec. 264b HGB (German Commercial Code) for fully consolidated legal entities: Philips GmbH, Hamburg; Philips Medical Systems DMC GmbH, Hamburg; Respironics Deutschland GmbH & Co. KG, München; Philips Medizin Systeme Hofheim-Wallau GmbH, Hamburg; Philips Medizin Systeme Böblingen GmbH, Böblingen; TomTec Imaging Systems GmbH, Unterschleißheim; Forecare GmbH, Ratingen. Information related to non-controlling interests As of December 31, 2022, four consolidated subsidiaries are not wholly owned by Philips (December 31, 2021: four). In 2022, Sales to third parties and Net income for these subsidiaries in aggregate are EUR 472 million (December 31, 2021: EUR 522 million) and EUR 28 million (December 31, 2021: EUR 39 million), respectively. Investments in associates Philips has investments in a number of associates. During 2022, Philips purchased eight investments in associates for a total amount of EUR 256 million. The most notable investment was a EUR 172 million investment in B-SOFT Co, Ltd, a China-based IT supplier for the medical and health sectors, listed on the stock exchange in Shenzhen. Philips acquired only a 10% interest, but determined that it is able to exercise significant influence amongst others due to its representation on B-SOFT’s Board of Directors. In 2022, Philips recorded an impairment of EUR 66 million Cumulative translation adjustments related to investments in associates were EUR 22 million EUR 32 million Involvement with unconsolidated structured entities Philips founded three Philips Medical Capital (PMC) entities, in the United States, France and Germany, in which Philips holds a minority interest. Philips Medical Capital, LLC in the United States is the most significant entity. PMC entities provide healthcare equipment financing and leasing services to Philips customers for diagnostic imaging equipment, patient monitoring equipment, and clinical IT systems. The company concluded that it does not control, and therefore should not consolidate the PMC entities. In the United States, PMC operates as a subsidiary of De Lage Landen Financial Services, Inc. The same structure and treatment 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, 2022, Philips’ shareholding in Philips Medical Capital, LLC had a carrying value of EUR 29 million (December 31, 2021: EUR 27 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, 2022 | |
Income from operations [Abstract] | |
Income from operations [Text Block] | 6 Accounting policies Revenue recognition The company recognizes revenue when it transfers control over a good or service to a customer, in an amount that reflects the consideration (i.e., transaction price) to which the company expects to be entitled to in exchange for the good or service. 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 if the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds six months. 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. 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 the price that would be charged for the goods or service in a separate transaction under similar conditions to similar customers. The transaction price is determined (considering variable considerations) and allocated to performance obligations based on their 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 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. Variable consideration is included in the transaction price to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur once associated uncertainties are 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. Sale of goods Revenues are recognized at a point in time when control of the goods passes to the buyer, based on the allocation of the transaction price to the performance obligation. Revenue from services Revenues are recognized over 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. Income from royalties Royalty income from brand license arrangements and from intellectual property rights, such as technology licenses or patents, is recognized on an accrual basis in accordance with the substance of the relevant agreement. Shipping and handling Expenses incurred for shipping and handling are mainly recorded as cost of sales. 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 related to sales to third parties are partly recorded as selling expenses. When shipping and handling billed to customers are considered a distinct and separate performance obligation, the fees are recognized as revenue and costs included in cost of sales. Other business income (expenses) Other business income (expenses) includes gains and losses on the sale of property, plant and equipment, gains and losses on the sale of businesses as well as other gains and losses not related to the company’s operating activities. Government grants Grants from governments are recognized at their fair value when there is a reasonable assurance that the grant will be received and the company will comply with the conditions. Grants related to costs are deferred in the consolidated balance sheet and recognized in the consolidated statement of income as a reduction of the related 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. Accounting estimates and judgments Sales-related accruals The company has sales promotions-related agreements with distributors and retailers designed to promote the sale of products. Among the programs are arrangements under which rebates and discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or for participating in specific marketing programs. Management estimates the sales-related accruals associated with these arrangements based on a combination of historical patterns and future expectations regarding which promotional targets are expected to be met by distributors and retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right to offset against the respective accounts receivable. A breakdown by nature of the income (loss) from operations is as follows: Philips Group Sales and costs by nature in millions of EUR 2020 2021 2022 Sales 17,313 17,156 17,827 Costs of materials used (4,221) (4,142) (4,320) Employee benefit expenses (6,289) (6,246) (6,952) Depreciation and amortization 1 (1,462) (1,323) (1,602) Impairment of goodwill (144) (15) (1,357) Shipping and handling (554) (645) (756) Advertising and promotion (696) (752) (739) Lease expenses (34) (19) (39) Other operational costs (2,741) (3,524) (3,609) Other business income (expenses) 92 63 18 Income from operations 1,264 553 (1,529) 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Sales composition and disaggregation For information related to sales on a segment and geographical basis, refer to Information by segment and main country Philips Group Sales composition in millions of EUR 2020 2021 2022 Goods 12,491 11,981 12,139 Services 4,058 4,374 4,878 Royalties 301 383 419 Total sales from contracts with customers 16,851 16,738 17,435 Sales from other sources 462 418 391 Total sales 17,313 17,156 17,827 Total sales from other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 258 million (2021: EUR 293 million 2020: EUR 325 million). Sales represent revenue from external customers. As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations from a sale of goods and services was EUR 16.57 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. Sales over time represent services and Other also includes royalties over time (2022: EUR 292 million 2021: EUR 220 million 2020: EUR 211 million). Philips Group Disaggregation of Sales per segment in millions of EUR 2022 Sales at a Sales Total sales from Sales from Total Diagnosis & Treatment 5,565 3,547 9,112 56 9,168 Connected Care 2,803 1,266 4,068 335 4,403 Personal Health 3,615 11 3,626 3,626 Other 279 348 629 - 629 Philips Group 12,263 5,172 17,435 391 17,827 Philips Group Disaggregation of Sales per segment in millions of EUR 2021 Sales at a Sales Total sales from Sales from Total Diagnosis & Treatment 5,408 3,177 8,583 52 8,635 Connected Care 3,116 1,090 4,207 366 4,573 Personal Health 3,423 6 3,429 3,429 Other 194 323 518 - 519 Philips Group 12,142 4,596 16,738 418 17,156 Philips Group Disaggregation of Sales per segment in millions of EUR 2020 Sales at a Sales Total sales from Sales from Total Diagnosis & Treatment 5,133 2,997 8,129 46 8,175 Connected Care 4,183 943 5,126 417 5,543 Personal Health 3,195 4 3,199 3,199 Other 69 327 396 - 396 Philips Group 12,580 4,271 16,851 462 17,313 Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2022 Sales at a Sales Total sales from Sales from Total Western Europe 2,387 1,183 3,572 31 3,603 North America 4,889 2,612 7,502 86 7,588 Other mature geographies 972 399 1,369 274 1,643 Total mature geographies 8,248 4,194 12,443 390 12,833 Growth geographies 4,015 978 4,992 1 4,993 Sales 12,263 5,172 17,435 391 17,827 Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2021 Sales at a Sales Total sales from Sales from Total 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 Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2020 Sales at a Sales Total sales from Sales from Total 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 4,271 16,851 462 17,313 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 2020 2021 2022 Salaries and wages excluding share-based compensation 5,085 5,014 5,594 Share-based compensation 119 115 104 Post-employment benefit costs 418 396 439 Other social security and similar charges: Required by law 556 529 590 Voluntary 111 192 225 Employee benefit expenses 6,289 6,246 6,952 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 (full-time equivalents, or FTEs) of employees by category is summarized as follows: Philips Group Employees by category in FTEs 2020 2021 2022 Production 35,482 38,618 39,742 Research & development 10,812 10,751 11,690 Other 22,474 22,543 23,019 Employees 68,769 71,912 74,451 Third party workers 4,998 4,533 4,086 Philips Group 73,767 76,445 78,538 Employees consist of those persons working on the payroll of Philips and whose costs are reflected in employee benefit expenses. Other consists of employees in commercial, general and administrative functions. Third party workers consist of personnel hired on a per-period basis, via external companies. Philips Group Employees by geographical location in FTEs 2020 2021 2022 Netherlands 11,146 11,142 11,180 Other countries 62,621 65,303 67,357 Philips Group 73,767 76,445 78,538 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 2020 2021 2022 Depreciation of property, plant and equipment 691 630 711 Amortization of software 76 88 117 Amortization of other intangible assets 377 322 363 Amortization of development costs 319 284 411 Depreciation and amortization 1,462 1,323 1,602 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Depreciation of property, plant and equipment is mainly included in cost of sales. Amortization of software is mainly included in general and administration expenses. Amortization of other intangible assets is included in selling expenses for brand names and customer relationships and is included in cost of sales for technology based and other intangible assets. Amortization of development costs is included in research and development expenses. Impairment of goodwill During 2022, EUR 1,331 million of goodwill impairment charges were recorded in the Sleep & Respiratory Care business, due to revisions to the expected future cash flows. In addition, a EUR 27 million goodwill impairment was recognized in the Precision Diagnosis Solutions business. Goodwill Shipping and handling Shipping and handling costs are included in cost of sales and selling expenses in the Consolidated statements of income Advertising and promotion Advertising and promotion costs are included in selling expenses in the Consolidated statements of income Lease expense Lease expense relates to short-term and low value leases. Other operational costs 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 Information Technology and Human Resources, third party workers, consultants, warranty, patents, costs for travelling and external legal service. Government grants of EUR 103 million were recognized as cost reduction in 2022 (2021: EUR 104 million 2020: EUR 98 million). The grants mainly relate to research and development activities and business development. The increase in other operational costs 2021 versus 2020 is mainly due to the Respironics field action provision. For more details refer to Provisions Audit and audit-related fees The following table shows the fees attributable to the fiscal years 2020, 2021 and 2022 for services rendered by the external auditors. Philips Group Audit and audit-related fees in millions of EUR 2020 2021 2022 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 9.0 5.6 14.6 10.3 5.4 15.7 8.9 5.5 14.4 consolidated financial statements 9.0 2.9 11.9 10.3 2.7 13.0 8.9 3.0 11.9 statutory financial statements 2.7 2.7 2.7 2.7 2.5 2.5 Audit-related fees 2 2.2 0.5 2.7 0.6 0.3 0.9 0.7 0.2 0.9 divestment 1.5 0.2 1.7 sustainability assurance 0.5 0.5 0.5 0.5 0.6 0.6 other 0.2 0.3 0.5 0.1 0.3 0.4 0.1 0.2 0.3 Tax fees All other fees Fees 11.2 6.1 17.3 10.9 5.7 16.6 9.6 5.7 15.3 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 2020 2021 2022 Result on disposal of businesses: income - - 4 expenses - (75) - Result on disposal of fixed assets: income 2 24 3 expenses - (5) (1) Result on other remaining businesses: income 120 161 121 expenses (30) (43) (109) Other business income (expenses) 92 63 18 Total other business income 122 186 127 Total other business expenses (29) (123) (109) The result on disposal of businesses mainly relates to divestment of non-strategic businesses. For more information refer to Acquisitions and divestments The result on disposal of fixed assets mainly relates to the sale of real estate assets. The result on other remaining businesses mainly relates to the revaluation of contingent consideration and various legal matters. For information on contingent consideration, refer to Provisions |
Financial income and expenses
Financial income and expenses | 12 Months Ended |
Dec. 31, 2022 | |
Financial income and expenses [Abstract] | |
Financial income and expenses [Text Block] | 7 Accounting policies Financial income and expenses are recognized on the accrual basis in the consolidated statements of income. Interest income and expense are measured 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. Philips Group Financial income and expenses in millions of EUR 2020 2021 2022 Interest income 13 18 25 Interest income from loans and receivables 8 7 7 Interest income from cash and cash equivalents 5 11 18 Dividend income from financial assets 3 2 3 Net gains from disposal of financial assets 2 - - Net change in fair value of financial assets through profit or loss 129 95 9 Other financial income 12 33 20 Financial income 158 149 58 Interest expense (173) (159) (235) Interest expense on debt and borrowings (130) (126) (200) Finance charges under lease contract (29) (25) (25) Interest expense on pensions (13) (8) (10) Provision-related accretion expenses (10) (5) (9) Net foreign exchange gains (losses) 4 - 9 Other financial expenses (23) (24) (24) Financial expenses (202) (188) (258) Financial income and expenses (44) (39) (200) In 2022, Financial income and expenses increased by EUR 161 million EUR 69 million In 2021, Financial income and expenses decreased by EUR 5 million year-on-year, mainly due to higher other financial income and lower interest expense, 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 expense on borrowings and provisions, and interest expense on pensions. The increase in other financial income is mainly due to higher interest income on tax. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
Income taxes [Text Block] | 8 Accounting policies 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. Accounting estimates and judgments Deferred tax recoverability Deferred tax assets are recognized to the extent that it is probable that there will be future taxable profits against which these can be utilized. Significant judgment is involved in determining whether such profits are probable. Management determines this on the basis of expected taxable profits arising from the reversal of recognized deferred tax liabilities, appropriate tax planning opportunities to support business goals and on the basis of forecasts. Uncertain tax positions Uncertain tax positions are recognized as liabilities if and to the extent it is probable that additional tax will be due and the amount can be reliably measured. Significant judgment is involved in determining these positions. The income tax benefit of continuing operations amounts to EUR 113 million (2021: EUR 103 million tax benefit, 2020: EUR 212 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 2020 2021 2022 Income before taxes 1,211 509 (1,731) Investments in associates, net of income taxes (9) (4) (2) Income before taxes and Investment in associates 1,220 513 (1,729) Current tax (expense) benefit (380) (298) (97) Deferred tax (expense) benefit 167 401 210 Income tax (expense) of continuing operations (212) 103 113 Income tax benefit of continuing operations excludes the tax benefit of the discontinued operations of EUR 18 million (2021: EUR 737 million expense, 2020: EUR 81 million expense), mainly related to the release of provisions. The components of income tax expense of continuing operations are as follows: Philips Group Current income tax expense in millions of EUR 2020 2021 2022 Current year tax (expense) benefit (390) (291) (111) Prior year tax (expense) benefit 10 (7) 14 Current tax (expense) benefit (380) (298) (97) Philips Group Deferred income tax expense In millions of EUR 2020 2021 2022 Recognition of previously unrecognized tax loss and credit carryforwards 6 138 2 Unrecognized tax loss and credit carryforwards (10) (13) Changes to recognition of temporary differences 19 (1) (4) Prior year tax (expense) benefit (8) 20 (1) Tax rate changes 12 10 (18) Origination and reversal of temporary differences, tax losses and tax credits 137 245 244 Deferred tax (expense) benefit 167 401 210 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 25.8% (2021: 25.0% 2020: 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 % 2020 2021 2022 Weighted average statutory income tax rate in % 25.2 22.7 23.6 Recognition of previously unrecognized tax loss and credit carryforwards (0.5) (26.9) 0.1 Unrecognized tax loss and credit carryforwards 0.0 1.9 (0.7) Changes to recognition of temporary differences (1.6) 0.3 (0.2) Non-taxable income and tax incentives (12.9) (40.6) 5.8 Non-deductible expenses 7.0 19.3 (22.9) Withholding and other taxes 0.6 7.2 (1.4) Tax rate changes (1.0) (1.9) (1.0) Prior year tax (0.2) (2.4) 0.7 Tax expense (benefit) due to change in uncertain tax treatments 1.2 4.4 2.8 Others, net (0.2) (4.0) (0.2) Effective income tax rate 17.6 (20.0) 6.5 The effective income tax rate is lower than the weighted average statutory income tax rate in 2022 mainly due to a non-deductible goodwill impairment in the Sleep & Respiratory Care business and other non-deductible expenses such as share based compensation expenses, partly offset by recurring favorable tax incentives related to R&D investments, the innovation box regime in the Netherlands and export activities. Due to the loss position in 2022, items such as non-deductible expense lead to a decrease of the effective income tax rate and items such as tax incentives lead to an increase in the effective income tax rate. 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 2022 and 2021 respectively are presented in the following tables. The net deferred tax assets of EUR 2,358 million (2021: EUR 2,134 million) consist of deferred tax assets of EUR 2,449 million (2021: EUR 2,216 million) and deferred tax liabilities of EUR 91 million (2021: EUR 83 million). Of the total deferred tax assets of EUR 2,449 million as of December 31, 2022 (2021: EUR 2,216 million), EUR 1,453 million (2021: EUR 12 million) is recognized in respect of entities in various countries where there have been tax losses in the current or preceding period. The increase is mainly related to the United States where there has been a tax loss in 2022, among others due to the consequences of the Respironics field action. Management's projections support the assumption that it is probable that the results of future operations will generate sufficient taxable income to utilize the tax losses as well the deductible temporary differences. The projections include forward-looking assumptions whereby the most recent available information was used to determine the expected period of recovery of the deferred tax assets. Relevant developments potentially impacting the period and probability of recovery will be monitored closely. As of December 31, 2022 the temporary differences associated with investments, including potential income tax consequences on dividends, for which no deferred tax liabilities are recognized, aggregate to EUR 355 million (2021: EUR 298 million). Philips Group Deferred tax assets and liabilities in millions of EUR Balance as of January 1, 2022 recognized in income statement other 1 Balance as of December 31, 2022 Assets Liabilities Intangible assets 587 63 (20) 630 783 (152) Property, plant and equipment 29 (33) 2 (2) 49 (52) Inventories 372 75 17 464 473 (8) Other assets 68 (16) (8) 44 98 (55) Pensions and other employee benefits 180 6 (32) 153 175 (22) Other liabilities 499 (34) 17 483 560 (77) Deferred tax assets on tax loss carryforwards 398 149 38 586 586 Set-off deferred tax positions (275) 275 Net deferred tax assets 2,134 210 14 2,358 2,449 (91) 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, 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. 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, 2021 Unrecognized balance as of December 31, 2021 Total Balance as of December 31, 2022 Unrecognized balance as of December 31, 2022 Within 1 year 1,593 1,592 4 3 1 to 2 years 6 - 10 5 2 to 3 years 9 - 9 3 3 to 4 years 7 - 13 4 4 to 5 years 18 - 38 3 Later 751 21 812 93 Unlimited 1,567 934 2,301 920 Total 3,951 2,547 3,187 1,032 As of December 31, 2022, the amount of deductible temporary differences for which no deferred tax asset has been recognized in the balance sheet was EUR 45 million (2021: EUR 33 million). The unrecognized balance as of December 31, 2021 (expiring within 1 year, EUR 1,592 million) which were partly utilized and the remainder expired unutilized. 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 (2022: EUR 435 million, 2021: EUR 544 million, decrease due to release of liabilities, in combination with higher 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, 2022 | |
Earnings per share [Abstract] | |
Earnings per share [Text Block] | 9 Accounting policies 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 (after deduction of treasury shares) during the period. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders and the weighted average number of common shares outstanding (after deduction of treasury shares) during the period, for the effects of all dilutive potential common shares, which comprise performance shares, restricted shares and share options granted under share-based compensation plans as well as forward contracts to repurchase shares. Philips Group Earnings per share in millions of EUR unless otherwise stated 1 2020 2021 2022 Income from continuing operations 999 612 (1,618) Income from continuing operations attributable to shareholders 991 608 (1,622) Income from continuing operations attributable to non-controlling interests 8 4 3 Income from discontinued operations 196 2,711 13 Income from discontinued operations attributable to shareholders 196 2,711 13 Net income 1,195 3,323 (1,605) Net income attributable to shareholders 1,187 3,319 (1,608) Net income attributable to non-controlling interests 8 4 3 Weighted average number of common shares outstanding (after deduction of treasury shares) during the period 907,721,150 904,271,675 881,615,862 Plus incremental shares from assumed conversions of: Share options 757,622 387,125 25,506 Performance shares 5,561,501 2,548,891 1,147,790 Restricted shares 2,584,728 2,376,736 1,986,538 Forward contracts to repurchase shares 70,329 17,611,920 Dilutive potential common shares 2 8,903,851 5,383,080 20,771,753 Diluted weighted average number of shares outstanding (after deduction of treasury shares) during the period 916,625,001 909,654,754 881,615,862 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 1.09 0.67 (1.84) Income from discontinued operations attributable to shareholders 0.22 3.00 0.02 Net income attributable to shareholders 1.31 3.67 (1.82) Diluted earnings per common share in EUR 2 Income from continuing operations attributable to shareholders 1.08 0.67 (1.84) Income from discontinued operations attributable to shareholders 0.21 2.98 0.02 Net income attributable to shareholders 1.29 3.65 (1.82) Dividend distributed per common share in EUR 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, 2022 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment [Text Block] | 10 Accounting policies Owned assets The cost 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. Land and assets under construction are not depreciated. When assets under construction are ready for their intended use, they are transferred to the relevant asset category and depreciation starts. All other property, plant and equipment items are depreciated over their estimated useful lives to their estimated residual values. The estimated useful lives of property, plant and equipment are as follows: Philips Group Useful lives of property, plant and equipment Buildings from 5 to 50 years Machinery and installations from 3 to 20 years Other equipment from 1 to 10 years Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the asset's book value exceeds their recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. The recoverable amount is defined as the higher of the asset’s fair value less costs of disposal and its value in use. 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 they extend the asset's original lifetime or capacity. Right-of-use assets The company leases various items of real estate, vehicles and other equipment. The company determines whether an arrangement constitutes or contains a lease based on the substance of the arrangement at the lease inception. 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 The company recognizes right-of-use assets and lease liabilities for leases with a term of more than twelve months if the underlying asset is not of low value. Payments for short-term and low-value leases are expensed over the lease term. Extension options are included in the lease term if their exercise is reasonably certain. Right-of-use assets are measured at cost less accumulated depreciation and impairment losses, adjusted for any remeasurements. Right-of-use assets are depreciated using the straight-line method over the shorter of the lease term and the useful life of the underlying assets. 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 term in the Consolidated statement of income. Accounting estimates and judgments Impairment of owned and right-of-use assets Judgments are required, not only to determine whether there is an indication that an asset may be impaired, but also whether indications exist that impairment losses previously recognized may no longer exist or may have decreased (impairment reversal). After indications of impairment have been identified, estimates and assumptions are used in the determination of the recoverable amount of a fixed asset. These involve estimates of expected future cash flows (based on future growth rates and remaining useful life) and residual value assumptions, as well as discount rates to calculate the present value of the future cash flows. Owned assets Estimates are required to determine the (remaining) useful lives of fixed assets. Useful lives are determined based on an asset's age, the frequency of its use, repair and maintenance policy, technology changes in production and expected restructuring. The company estimates the expected residual value per asset item. The residual value is the higher of the asset's expected sales price (based on recent market transactions of similar sold items) and its material scrap value. Right-of-use assets Significant judgment is required to determine the lease term. The assessment of whether the company is reasonably certain to exercise extension options impacts the lease term, which could affect the amount of lease liabilities and right-of-use assets recognized. Property, plant and equipment are fixed assets that are owned or right-of-use assets under a lease agreement. Philips Group Property, plant and equipment in millions of EUR 2021 2022 Owned assets 1,641 1,718 Right-of-use assets 1,058 919 Total 2,699 2,638 Philips Group Property, plant and equipment - owned assets in millions of EUR Land and Machinery and installations Other Assets under construction Total Balance as of January 1, 2022 Cost 1,097 1,585 1,382 208 4,273 Accumulated depreciation (591) (1,074) (967) (2,632) Book value 506 511 415 208 1,641 Additions 1 102 77 314 494 Assets available for use 34 69 111 (220) (6) Depreciation (56) (215) (176) - (447) Impairments (3) (20) (18) (1) (42) Transfer (to) from AHFS (3) - (3) Reclassifications 18 14 (5) 2 29 Translation differences and other 16 26 2 5 50 Total change 8 (23) (8) 100 78 Balance as of December 31, 2022 Cost 1,135 1,779 1,454 309 4,676 Accumulated depreciation (621) (1,291) (1,046) (2,958) Book value 514 488 408 309 1,718 Philips Group Property, plant and equipment - right-of-use assets in millions of EUR Land and Machinery and installations Other Total Balance as of January 1, 2022 Cost 1,332 176 216 1,724 Accumulated depreciation (418) (139) (109) (666) Book value 914 37 107 1,058 Additions 52 - 54 106 Assets available for use 5 1 6 Depreciation (155) (2) (58) (214) Impairments (8) - - (9) Transfer (to) from AHFS 3 3 Reclassifications (19) (13) - (32) Translation differences and other 31 (23) (6) 1 Total change (92) (37) (9) (139) Balance as of December 31, 2022 Cost 1,365 - 206 1,571 Accumulated depreciation (543) (108) (651) Book value 822 - 98 919 Philips Group Property, plant and equipment - owned assets in millions of EUR Land and Machinery and installations Other Assets under construction Total Balance as of January 1, 2021 Cost 1,076 1,506 1,572 261 4,415 Accumulated depreciation (539) (1,028) (1,185) (2,752) Book value 537 478 387 261 1,663 Additions 9 62 77 261 409 Assets available for use 72 110 117 (305) (5) Acquisitions - 9 43 53 Depreciation (53) (144) (158) (355) Impairments (1) (6) (11) - (18) Transfer (to) from AHFS (87) (16) (46) (20) (170) Reclassifications 6 2 (10) 1 - Translation differences and other 23 14 16 10 65 Total change (31) 33 29 (53) (22) Balance as of December 31, 2021 Cost 1,097 1,585 1,382 208 4,273 Accumulated depreciation (591) (1,074) (967) (2,632) Book value 506 511 415 208 1,641 Philips Group Property, plant and equipment - right-of-use assets in millions of EUR Land and Machinery and installations Other Assets under construction Total Balance as of January 1, 2021 Cost 1,147 199 213 1 1,560 Accumulated depreciation (310) (144) (86) (540) Book value 837 55 126 1 1,020 Additions 150 21 44 215 Assets available for use 2 3 5 Acquisitions 43 43 Depreciation (157) (32) (63) (252) Impairments 1 (5) - (4) Transfer (to) from AHFS (7) (1) (8) Reclassifications 2 (1) 1 Translation differences and other 44 (2) (4) 39 Total change 77 (18) (20) (1) 38 Balance as of December 31, 2021 Cost 1,332 176 216 1,724 Accumulated depreciation (418) (139) (109) (666) Book value 914 37 107 1,058 Lease related notes Below are the references with respect to year-end disclosures as lessee: 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 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 Debt Below are the references with respect to year-end disclosures as lessor: For disclosures on lease income and sublease income, refer to Details of treasury and other financial risks Other qualitative disclosures regarding the nature of lessors leasing activities and risk management, refer to Details of treasury and other financial risks |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill [Text Block] | 11 Accounting policies The measurement of goodwill at initial recognition is described in the Acquisitions and divestments note. Goodwill is subsequently measured at cost less accumulated impairment losses. Goodwill is not amortized but tested for impairment annually and whenever impairment indicators require. Internal or external sources of information are considered to assess if there are indicators that an asset or a CGU may be impaired. In most cases the company identifies 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. Accounting estimates and judgments The cash flow projections used in the value in use calculations for goodwill impairment testing contain various judgments and estimations as described in the key assumptions sections below. The changes in 2021 and 2022 were as follows: Philips Group Goodwill in millions of EUR 2021 2022 Balance as of January 1 Cost 9,094 11,793 Impairments (1,080) (1,156) Book value 8,014 10,637 Acquisitions 2,095 317 Impairments (15) (1,357) Divestments and transfers to assets classified as held for sale (189) Translation differences and other 732 641 Total change 2,622 (399) Balance as of December 31 Cost 11,793 12,747 Impairments (1,156) (2,509) Book value 10,637 10,238 In 2022, goodwill decreased by EUR 399 million, primarily as a result of goodwill impairments of EUR 1,357 million partially offset by translation differences of EUR 641 million and acquisitions of EUR 317 million (which includes changes in the provisional opening balance sheet position for certain 2021 acquisitions, refer to Acquisitions and divestments In 2021, goodwill increased by EUR 2,622 million, primarily as a result of provisional 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 Goodwill reallocations in 2022 and 2021 In 2022 and 2021 there were changes to the CGU structure following internal reorganizations. These 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 addition 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 2022 goodwill impairment charges of EUR 1,357 million were recognized. This relates to the third quarter impairment charge of EUR 1,331 million in the Sleep & Respiratory Care (S&RC) CGU of the Connected Care segment. In addition, as a result of the annual impairment testing a goodwill impairment charge of EUR 27 million was recognized in relation to the Precision Diagnosis Solutions (PDS) CGU which is part of the Diagnosis & Treatment segment. The value in use methodology was used to estimate the recoverable amount for the PDS CGU. During 2021 an impairment charge 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. The PERS CGU was divested as of June 30, 2021. 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. The fair value less cost of disposal methodology was used to estimate the recoverable amount for the PERS CGU, this was based on Level 3 inputs. Key assumptions and inputs used in the calculation included the signed purchase agreement for the PERS divestment. The impairment of EUR 13 million was recorded in the Connected Care segment. Interim goodwill impairment testing As explained in the accounting policy above, goodwill is tested for impairment annually and whenever impairment indicators require. In the third quarter of 2022, an impairment indicator was noted in relation to the S&RC CGU as a consequence of revisions to the expected future cashflows of the CGU. The drivers of the revised forecast (which form the basis for the future cashflow assumptions) were current assumptions regarding the estimated impact of a consent decree that is currently under discussion with the US Department of Justice (DoJ), acting on behalf of the FDA, along with updates to expected business performance and changes to the pre-tax discount rate. An impairment test was performed in order to determine if the carrying amount of the cash-generating unit exceeded the unit’s recoverable amount, which was determined on a value in use basis. As a result of this test a goodwill impairment charge of EUR 1,331 million was recognized. Following the impairment charge, the estimated recoverable amount, based on the CGU’s value in use, for the S&RC CGU was EUR 1,001 million and equal to its carrying value. The assumptions used to determine the recoverable amount of the CGU at the interim testing date are presented below: Philips Group Key assumptions - Interim impairment testing compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Sleep & Respiratory Care 1.5% 4.3% 2.5% 9.5% 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 extrapolation period, after which no further growth is assumed for the terminal value calculation In addition to the above assumptions, assumptions were made regarding the estimated impact of a consent decree on the business. These assumptions included the expected financial impact of the scope and duration of a consent decree, as well as expected additional costs. These assumptions were determined by management based on discussions held in relation to the consent decree and other available sources of information. Annual 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, Hospital Patient Monitoring and Image-Guided Therapy is considered to be significant in comparison to the total book value of goodwill for the Group as of December 31, 2022. The amounts associated as of December 31, 2022 are presented in the following table: Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2021 2022 Ambulatory Monitoring & Diagnostics 1,897 2,215 Hospital Patient Monitoring 1,663 1,806 Image-Guided Therapy 2,802 3,154 Sleep & Respiratory Care 2,031 731 Other (units carrying a non-significant goodwill balance) 2,245 2,332 Book value 10,637 10,238 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 of disposal 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 2022 there continued to be uncertainty and volatility related to global, industry-wide macroeconomic challenges including global supply chain constraints, COVID lockdown measures in China, inflationary pressures and the Russia-Ukraine war. Where relevant, and to the extent possible, the estimated impact of these factors and the resulting uncertainties have been reflected in the forecasts used for the value-in-use calculations. As was the case in 2021, 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. 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. Philips performs the value in use calculation using post-tax cashflows and discount rate, the implicit pre-tax rate discount rate is derived from an iterative calculation for disclosure purposes. In 2022 the pre-tax discount rates increased for all CGUs primarily due to the impact on the WACC of higher interest rates. As explained above, for S&RC this increased pre-tax discount rate contributed to the impairment charge recognized in the third quarter of 2022. Key assumptions and sensitivity analysis relating to cash-generating units to which a significant amount of goodwill is allocated In 2022 cash flow projections of Ambulatory Monitoring & Diagnostics, Hospital Patient Monitoring, 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 2022 compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Ambulatory Monitoring & Diagnostics 15.4% 9.5% 2.5% 8.5% Hospital Patient Monitoring 4.8% 3.4% 2.5% 8.5% Image-Guided Therapy 8.7% 5.0% 2.5% 10.6% Sleep & Respiratory Care 10.0% 5.0% 2.5% 9.9% 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 extrapolation period, after which no further growth is assumed for the terminal value calculation The assumptions used for the 2021 cash flow projections were as follows: 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 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 extrapolation period, after which no further growth is assumed for the terminal value calculation 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. In performing the value-in-use test for the S&RC CGU it was necessary for management to make assumptions regarding the estimated impact of a consent decree on the business. These assumptions included the expected financial impact of the scope and duration of a consent decree, as well as expected additional costs. These assumptions were determined by management based on discussions held in relation to the consent decree and other available sources of information. There have been no significant changes to these assumptions since the interim goodwill testing in the third quarter of 2022 (see Interim Goodwill impairment testing section above). For the Sleep & Respiratory Care CGU, based on the annual goodwill impairment testing performed by management during the fourth quarter of 2022 in accordance with the methodology discussed above, no additional impairment charge was warranted. However, following the interim impairment charge, the annual impairment test indicates that the value in use of the CGU remains 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. There continues to be significant 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, the associated legal matters and the outcome of a consent decree. The legal matters are described in further detail in Contingencies Based on the annual impairment test of Sleep & Respiratory Care, it was noted that an increase of 40 basis points in the pre-tax discount rate, a 160 basis points decline in the compound long-term sales growth rate or a 7% decrease in terminal value would, individually, cause its recoverable amount to fall to the level of its carrying value. Additionally, any significant adverse changes to the assumptions related to the expected financial impact of a consent decree could cause the recoverable amount of the CGU to fall below its carrying value, resulting in impairment. The results of the annual impairment tests of the Ambulatory Monitoring & Diagnostics CGU 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. Based on the annual impairment test of Ambulatory Monitoring & Diagnostics, it was noted that an increase of 40 basis points in the pre-tax discount rate, a 210 basis points decline in the compound long-term sales growth rate or a 8% decrease in terminal value would, individually, cause its recoverable amount to fall to the level of its carrying value. The results of the annual impairment test of 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 The results of the annual impairment tests of the Emergency Care CGU indicate that the value in use of the CGU 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. Based on the annual impairment test of Emergency Care, it was noted that an increase of 190 basis points in the pre-tax discount rate, a 900 basis points decline in the compound long-term sales growth rate or a 26% decrease in terminal value would, individually, cause its recoverable amount to fall to the level of its carrying value. With the exception of those described above, 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. *) The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Information by segment and main country |
Intangible assets excluding goo
Intangible assets excluding goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets excluding goodwill [Abstract] | |
Intangible assets excluding goodwill [Text Block] | 12 Accounting policies 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. 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 9.4 years as of December 31, 2022 (2021: 9.6 years). Impairment of intangible assets not yet ready for use Intangible assets not yet ready for use are not amortized but are tested for impairment annually and whenever impairment indicators require. In the case of intangible assets not yet ready for use, either internal or external sources of information are considered to assess if there are indicators that an asset or a CGU may be impaired. 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 for Intangible assets other than goodwill 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. Accounting estimates and judgments The cash flow projections used in the value in use calculations for intangible assets excluding goodwill contain various judgments and estimations. For intangible assets excluding goodwill, estimates are required to determine the (remaining) useful lives. 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, 2022 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 Additions (3) - 51 - 257 109 1 416 Assets available for use 118 (118) Acquisitions 1 3 177 - - 180 Amortization (24) (141) (140) (206) (1) (100) (3) (614) Impairments - (6) (46) (123) (81) (17) (2) (276) Translation differences and other 4 71 59 5 31 1 (2) 169 Total change (22) (74) 102 (206) 88 (7) (6) (125) Balance as of December 31, 2022 Cost 647 2,735 2,947 2,605 648 869 152 10,602 Amortization / impairments (507) (1,665) (1,845) (2,212) (146) (589) (113) (7,077) Book Value 140 1,070 1,102 393 502 280 39 3,526 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 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 change 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 Acquisitions in 2022 involved Intangible assets of EUR 180 million in aggregate (2021: EUR 841 million). For more information, refer to Acquisitions and divestments Impairments in 2022 were EUR 276 million (2021: EUR 126 million) and mainly relate to technology (EUR 46 million) and product development (EUR 204 million), including product development construction in progress. In the third quarter of 2022 an initiative was undertaken to enhance productivity in R&D, specifically to shift the focus to fewer, high-impact projects in the innovation pipeline. As a result of this initiative EUR 132 million of product development (including product development construction in progress) asset impairments were recognized. The most notable impairments in 2022, recognized as part of the above productivity initiative, were in the Diagnosis & Treatment segment, for product development assets in Precision Diagnosis (PD) of EUR 36 million and Image Guided Therapy-Systems (IGT Systems) of EUR 41 million (EUR 16 million of which was product development construction in progress). The basis of the recoverable amount used in these tests was the value-in-use. After the impairment charge the recoverable amount of the related intangible assets is EUR 0 million. In 2022 there continued to be uncertainty and volatility related to by global, industry-wide macroeconomic challenges including global supply chain constraints, COVID lockdown measures in China, inflationary pressures and the Russia-Ukraine war. Where relevant, and to the extent possible, the estimated impact of these factors and the resulting uncertainties have been reflected in the forecasts used for the VIU calculations. As was the case in 2021, 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 The amortization of intangible assets is specified in Income from operations The most notable intangible assets as of December 31, 2022 relate to the BioTelemetry customer relationships and technology with a carrying value of EUR 385 million and EUR 150 million and a remaining amortization period of 14 years and 10 years, respectively and Spectranetics customer relationships and technology with a carrying value of EUR 291 million and EUR 203 million and a remaining amortization period of 15 years and 10 years, respectively. The most notable intangible assets as of December 31, 2021 relate to the BioTelemetry customer relationships and technology with 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. |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2022 | |
Other financial assets [Abstract] | |
Other financial assets [Text Block] | 13 Accounting policies Classification and measurement of financial assets The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the company’s business model for managing them. The company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. For the purposes of subsequent measurement, financial assets are classified into four categories: Financial assets at amortized cost (debt instruments). Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments). Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments). Financial assets at fair value through profit or loss (debt instruments and equity instruments). Impairment of financial assets The company recognizes a loss allowance for expected credit losses for trade receivables, contract assets, lease receivables, debt investments carried at amortized cost and fair value through other comprehensive income (FVTOCI). At each balance sheet date, the company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired and recognizes a loss allowance for expected credit losses for financial assets measured at either amortized costs or at fair value through other comprehensive income. If, at the reporting date, the credit risk on a financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for the financial instrument at an amount equal to 12 months of expected credit losses. If, at the reporting date, the credit risk on a financial instrument has increased significantly since initial recognition, the company measures the loss allowance for the financial instrument at an amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and lease receivables the company measures the loss allowance at an amount equal to lifetime-expected credit losses. Accounting estimates and judgments The determination of fair value is subject to estimates for investments that are not publicly traded. Refer to Fair value of financial assets and liabilities Financial assets classified at amortized cost and at fair value through OCI are subject to impairment assessment. The calculation of expected credit losses requires the company to apply significant judgment and make estimates and assumptions that involve significant uncertainty at the time they are made. Changes to these estimates and assumptions can result in significant changes to the timing and amount of expected credit losses to be recognized. Other current financial assets In 2022, Other current financial assets increased from EUR 2 million to EUR 11 million (2021: increased from EUR nil 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 2022 and 2021 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, 2022 283 300 47 630 Changes: Acquisitions/additions 114 18 18 150 Sales/redemptions/reductions (75) (3) (8) (86) Impairments (3) (1) (5) Value adjustment through OCI - (35) (35) Value adjustment through P&L 5 - 5 Translation differences and other (2) 5 (1) 2 Reclassifications 1 (2) (1) (2) Balance as of December 31, 2022 322 284 54 660 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) - (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 As of December 31, 2022, equity investments of EUR 259 million (2021: EUR 273 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. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2022 | |
Other assets [Abstract] | |
Other assets [Text Block] | 14 Accounting policies The company recognizes contract assets for revenue earned from installation services because the receipt of consideration is conditional on successful completion of the installation. Upon completion of the installation and acceptance by the customer, the amount recognized as contract assets is reclassified to trade receivables. Other assets are measured at amortized cost minus any impairment losses. Other non-current assets Other non-current assets as of December 31, 2022 were EUR 98 million (2021: EUR 129 million). These are mainly related to prepaid expenses. Other current assets Other current assets as of December 31, 2022 of EUR 490 million (2021: EUR 493 million) included contract assets of EUR 292 million (2021: EUR 290 million), accrued income of EUR 24 million (2021: EUR 31 million) and prepaid expenses of EUR 174 million (2021: EUR 172 million) mainly related to Diagnosis & Treatment businesses and Connected Care businesses. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories [Text Block] | 15 Accounting policies 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, considering 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. Accounting estimates and judgments 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. Inventories are summarized as follows: Philips Group Inventories in millions of EUR 2021 2022 Raw materials and supplies 1,143 1,541 Work in process 646 648 Finished goods 1,660 1,860 Inventories 3,450 4,049 The write-down of inventories to net realizable value was EUR 215 million in 2022 (2021: EUR 177 million). The write-down is included in cost of sales. In 2022, the limited availability and delays in the supply of certain components and products internationally, resulted in an increase in inventories compared to December 31, 2021, as work in process inventories could not be translated to finished goods available for sale due to the scarcity of certain components. While there was an increase in inventories, this has not resulted in a significant write-down of inventories, as the expectation is that such components will become available in the near future. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables [Text Block] | 16 Accounting policies Receivables are held by the company to collect the related cash flows. These receivables are measured at fair value and subsequently measured at amortized cost minus any impairment losses. Receivables are derecognized when the company has transferred substantially all risks and rewards, which includes transactions in which the company enters into factoring transactions, or if the company does not retain control over the receivables. Accounting estimates Receivables are subject to impairment assessment, which involves estimating expected credit losses. Refer to Other financial assets Non-current receivables Non-current receivables are associated mainly with customer financing in the Diagnosis & Treatment businesses amounting to EUR 70 million (2021: EUR 44 million), for Signify indemnification amounting to EUR 26 million (2021: EUR 46 million), an income tax receivable amounting to EUR 126 million (which includes an interest receivable of EUR 10 million) for which Philips expects to get a refund (2021: EUR 78 million) and insurance receivables in Other in the US amounting to EUR 30 million (2021: EUR 37 million). Current receivables Current receivables of EUR 4,115 million (2021: EUR 3,787 million) as of December 31, 2022 included trade accounts receivable (net of allowance) of EUR 3,832 million (2021: EUR 3,559 million), accounts receivable other of EUR 228 million (2021: EUR 188 million) and accounts receivable from investments in associates of EUR 55 million (2021: EUR 40 million). The trade accounts receivable, net, per segment are as follows: Philips Group Trade accounts receivable, net in millions of EUR 2021 2022 Diagnosis & Treatment 1,759 2,013 Connected Care 980 1,114 Personal Health 575 479 Other 245 226 Trade accounts receivable, net 3,559 3,832 The aging analysis of trade accounts receivable, net, representing current and overdue but not fully impaired receivables, is as follows: Philips Group Aging analysis in millions of EUR 2021 2022 Current 3,075 3,280 Overdue 1-30 days 160 169 Overdue 31-180 days 245 282 Overdue more than 180 days 79 101 Trade accounts receivable, net 3,559 3,832 The changes in the allowance for doubtful accounts receivable are as follows: Philips Group Allowance for accounts receivable in millions of EUR 2021 2022 Balance as of January 1 195 190 Additions charged to expense 4 66 Deductions from allowance 1 (17) (51) Transfer to assets held for sale (8) Other movements 16 21 Balance as of December 31 190 226 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 of December 31, 2022 are allowances for individually impaired receivables of EUR 222 million (2021: EUR 188 million) . |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity [Text Block] | 17 Accounting policies 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 repurchases 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 shareholders’ equity until such treasury shares are cancelled or reissued. Where such treasury shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in shareholders’ equity. 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. Common shares As of December 31, 2022, authorized common shares consist of 2 billion shares (December 31, 2021: 2 billion; December 31, 2020: 2 billion) and the issued and fully paid share capital consists of 889,315,082 common shares, each share having a par value of EUR 0.20 (December 31, 2021: 883,898,969; December 31, 2020: 911,053,001). 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, 2022, 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, 2022 (December 31, 2021: 2 billion; December 31, 2020: 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 conditional rights to receive common shares in the future such as restricted shares and performance shares (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 under share-based compensation plans upon exercise of options, or vesting of restricted or performance shares, 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 treasury shares are delivered by the company under its share-based compensation plans, such 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 2020 2021 2022 Balance as of January 1 890,973,790 905,128,293 870,182,445 Dividend distributed 18,080,198 6,345,968 14,174,568 Purchase of treasury shares (8,669,622) (45,486,392) (5,080,693) Delivery of treasury shares 4,695,170 4,194,577 2,204,207 Issuance of new shares 48,757 Balance as of December 31 905,128,293 870,182,445 881,480,527 The following table reflects transactions that took place in relation to former and current share-based compensation plans: Philips Group Transactions related to share-based compensation plans 2020 2021 2022 Shares acquired 5,351,411 3,996,576 2,142,445 Average market price EUR 33.81 EUR 36.15 EUR 31.76 Amount paid EUR 181 million EUR 144 million EUR 68 million Shares delivered 4,695,170 4,194,577 2,204,207 Average price (FIFO) EUR 34.35 EUR 34.14 EUR 35.16 Cost of delivered shares EUR 161 million EUR 143 million EUR 77 million Total shares in treasury at year-end 5,924,708 5,726,708 5,664,946 Total cost EUR 199 million EUR 201 million EUR 191 million The following transactions took place for capital reduction purposes: Philips Group Transactions related to capital reduction 2020 2021 2022 Shares acquired 3,318,211 41,489,816 2,938,248 Average market price EUR 39.21 EUR 36.22 EUR 36.61 Amount paid EUR 130 million EUR 1,503 million EUR 108 million Cancellation of treasury shares (shares) 3,809,675 33,500,000 8,758,455 Cancellation of treasury shares (EUR) EUR 152 million EUR 1,216 million EUR 299 million Total shares in treasury at year-end 7,989,816 2,169,609 Total cost EUR 287 million EUR 83 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 187 million. A cash inflow of EUR 12 million from treasury shares mainly relates to the exercise of employee stock options (granted until 2013). 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 2022, Philips used methods (i) to repurchase shares for capital reduction purposes and methods (ii) and (iii) to repurchase shares for share-based compensation plans. Forward contracts to repurchase shares For share-based compensation plans On June 13, 2022, Royal Philips announced that it will repurchase up to 3.2 million shares to cover certain of its obligations arising from its long-term incentive and employee stock purchases plans. Under this program, Philips entered into one forward contract for an amount of EUR 63 million to acquire 3.2 million shares with settlement dates in November 2024 and December 2024 and a weighted average forward price of EUR 19.75. 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 in 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 to acquire in total 5 million As of December 31, 2022, the remaining forward contracts to cover obligations under share-based remuneration plans related to 7.0 million shares (December 31, 2021: 5.5 million) and amounted to EUR 211 million (December 31, 2021: EUR 203 million). For capital reduction 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 EUR 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 increase in retained earnings against treasury shares. As of December 31, 2022, a total of 2.2 million shares under this program were acquired (in the fourth quarter of 2022). This resulted in EUR 83 million increase in retained earnings against treasury shares. As of December 31, 2022, the remaining forward contracts entered into for capital reduction purposes relate to 17.4 million 19.6 million EUR 648 million EUR 731 million 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 2022, the company unwound 239,880 EUR-denominated and 152,565 USD-denominated call options against the transfer of the same number of its own shares (392,445 shares) and an additional EUR 6 million cash payment to the buyer of the call options. As of December 31, 2022, the remaining EUR-denominated call options related to 55,750 shares while there are no remaining USD-denominated call options. Shares cancellation In June 2022, Philips completed the cancellation of 8.8 million of its common shares (with a cost price of EUR 299 million). The cancelled shares were acquired as part of the Philips’ EUR 1.5 billion share repurchase programs announced on July 26, 2021. Dividend distribution 2022 In May 2022, Philips distributed a dividend of EUR 0.85 EUR 741 million A proposal will be submitted to the 2023 Annual General Meeting of Shareholders to pay a dividend of EUR 0.85 per common share, in common shares only, against retained earnings for 2022. 2021 In June 2021, Philips distributed a dividend of EUR 0.85 per common share, representing a total value of EUR 773 million 38% 6,345,968 EUR 482 million 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. Limitations in the distribution of shareholders’ equity As of December 31, 2022, pursuant to Dutch law, certain limitations exist relating to the distribution of shareholders’ equity of EUR 3,054 million. Such limitations relate to common shares of EUR 178 million, as well as to legal reserves required by Dutch law included under retained earnings of EUR 1,010 million and unrealized currency translation differences of EUR 1,866 million. The unrealized loss related to cash flow hedges of EUR 2 million and unrealized loss related to fair value through OCI financial assets of EUR 376 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 1,010 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, 2021, these limitations in distributable amounts were EUR 1,947 million and related 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 losses related to fair value through OCI financial assets of EUR 344 million and unrealized loss related to cash flow hedges of EUR 25 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. The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included below. Net debt is defined as the sum of long and short-term debt minus cash and cash equivalents. Group equity is defined as the sum of shareholders’ equity and non-controlling interests. This measure is used by Philips Treasury management and investment analysts to evaluate financial strength and funding requirements. The Philips net debt position is managed with the intention of retaining the current strong investment grade credit rating. Furthermore, Philips’ aim when managing the net debt position is dividend stability and a pay-out ratio of 40% to 50% of Adjusted income from continuing operations attributable to shareholders (reconciliation to the most directly comparable IFRS measure, Net income, is provided at the end of this note). Philips Group Composition of net debt and group equity in millions of EUR unless otherwise stated 2020 2021 2022 Long-term debt 5,705 6,473 7,270 Short-term debt 1,229 506 931 Total debt 6,934 6,980 8,201 Cash and cash equivalents 3,226 2,303 1,172 Net debt 3,708 4,676 7,028 Shareholders' equity 11,870 14,438 13,249 Non-controlling interests 31 36 34 Group equity 11,901 14,475 13,283 Net debt and group equity ratio 24:76 24:76 35:65 Adjusted income from continuing operations attributable to shareholders is not a recognized measure of financial performance under IFRS. The reconciliation of Adjusted income from continuing operations attributable to shareholders to the most directly comparable IFRS measure, Net income for 2022 is included in the following table. Philips Group Adjusted income from continuing operations attributable to shareholders 1 2020 2021 2022 Net income 1,195 3,323 (1,605) Discontinued operations, net of income taxes (196) (2,711) (13) Income from continuing operations 999 612 (1,618) Income from continuing operations attributable to non-controlling interests (8) (4) (3) Income from continuing operations attributable to shareholders 1 991 608 (1,622) Adjustments for: Amortization and impairment of acquired intangible assets 377 322 363 Impairment of goodwill 144 15 1,357 Restructuring costs and acquisition-related charges 195 95 202 Other items: 299 1,069 925 Respironics field-action provision 719 250 Respironics field-action running remediation cost 94 210 R&D project impairments 134 Portfolio realignment charges 109 Impairment of assets in S&RC 39 Provision for public investigations tender irregularities 60 Provisions for quality actions in Connected Care 94 59 Loss on divestment of business 76 Remaining items 299 87 63 Net finance income/expenses (125) (84) (4) Tax impact of adjusted items and tax only adjusting items (285) (527) (376) Adjusted Income from continuing operations attributable to shareholders 1 1,594 1,497 845 1) Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
Debt [Text Block] | 18 Accounting policies Debt Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently, debt is measured at amortized cost using the effective interest rate method. 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. Lease liabilities Lease liabilities are measured at the present value of the lease payments due over the lease term, generally discounted using the incremental borrowing rate. Lease liabilities are subsequently measured at amortized cost using the effective interest method. Lease liabilities are remeasured in case of modifications or reassessments of the lease. 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. As of December 31, 2022, Philips did not have any loans outstanding under either facility. These facilities do not have a material adverse change clause, have no financial covenants and no credit-rating-related acceleration possibilities. Philips issued commercial paper of EUR 200 million in September 2022 and EUR 101 million in October 2022, that was repaid throughout the fourth quarter of 2022. In addition, Philips secured a EUR 1 billion credit facility in the fourth quarter of 2022 that can be used for general corporate purposes. As of December 31, 2022, Philips had EUR 500 million outstanding under the credit facility. The facility does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. As per March 9, 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 2022 Philips issued three new tranches under the program for a total of EUR 2 billion, while also redeeming its outstanding 2023 and 2024 Notes and issuing a tender offer on the outstanding 2025 and 2026 Notes. 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 2018, 2019, 2020 and 2022 (due 2025, 2026, 2027, 2028, 2029, 2030 and 2033) 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 April 2022, Philips announced a series of Liability Management transactions to optimize its debt maturity profile. The transactions included the issuance of three series of Notes under its EMTN program for a total of EUR 2 billion with maturities in 2027, 2029 and 2033. Part of the proceeds were used to tender certain of Philips’ outstanding US Dollar denominated bonds due 2025 and 2026 and Euro-denominated bonds due 2023, 2024 and 2025, as well as make-whole and fully redeem the Euro-denominated bonds due 2023 and 2024 that were not purchased as part of the Euro tender offer. Philips issued Commercial Paper of EUR 200 million in September 2022 and EUR 101 million in October 2022. These tranches were repaid throughout the fourth quarter of 2022. In addition, in October 2022 Philips entered into a EUR 1 billion credit facility that can be used for general corporate purposes. The credit facility matures in October 2023 and has a 12-month extension option at Philips discretion. Per year-end 2022, EUR 500 million was utilized and outstanding under the credit facility. In 2022, Philips entered into a total amount of EUR 63 million forward contracts relating to the company’s long-term incentive and employee stock purchase plans. A total of EUR 57 million forward contracts relating to the long-term incentive and employee stock purchase plans as announced in 2020 and EUR 83 million of forwards related to the share buyback program announced in 2021 matured throughout 2022. 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. Long-term debt The following tables present information about the long-term debt outstanding, its maturity and average interest rates in 2022 and 2021. Philips Group Long-term debt in millions of EUR unless otherwise stated 2022 amount outstanding 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 1,378 1,378 250 1,128 14.3 6.3% EUR bonds 4,061 4,061 1,836 2,225 5.7 1.7% Forward contracts 858 606 252 252 1.0 Lease liabilities 1,082 230 852 504 348 3.9 2.4% Bank borrowings 705 2 702 702 1.9 1.7% Other long-term debt 28 4 24 17 6 8.9 2.9% Long-term debt 8,111 842 7,270 3,562 3,706 6.1 2.4% Philips Group Long-term debt in millions of EUR unless otherwise stated 2021 amount outstanding 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 liabilities 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% 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 2021 2022 Unsecured EUR Bonds Due 06/09/2023; 1/2% 0.634% 500 Due 02/05/2024; 3/4% 0.861% 500 Due 22/05/2026; 1/2% 0.608% 750 750 Due 02/05/2028; 1 3/8% 1.523% 500 500 Due 30/03/2025; 1 3/8% 1.509% 500 346 Due 30/03/2030; 2% 2.128% 500 500 Due 05/05/2027; 1 7/8% 2.049% 750 Due 05/11/2029; 2 1/8% 2.441% 650 Due 05/05/2033; 2 5/8% 2.710% 600 Unsecured USD Bonds Due 15/05/2025; 7 3/4% 7.429% 56 51 Due 01/06/2026; 7 1/5% 6.885% 120 119 Due 15/05/2025; 7 1/8% 6.794% 74 78 Due 11/03/2038; 6 7/8% 7.210% 641 683 Due 15/03/2042; 5% 5.273% 441 470 Adjustments 1 (37) (57) Unsecured Bonds 4,545 5,439 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 2021 2022 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 280 22 257 251 21 230 Between one and five years 636 56 580 554 49 505 More than five years 417 34 383 376 28 348 Lease liabilities 1,333 113 1,220 1,180 98 1,082 Short-term debt Philips Group Short-term debt in millions of EUR 2021 2022 Short-term bank borrowings 47 89 Current portion of long-term debt 459 842 Short-term debt 506 931 During 2022, the weighted average interest rate on the bank borrowings was 5.7% (2021: 1.2%). This increase was mainly driven by financial market conditions across various countries globally. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [Abstract] | |
Provisions [Text Block] | 19 Accounting policies A provision is a liability of uncertain timing or amount. 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 (accretion) is recognized as interest expense. Restructuring-related provisions Provisions for severance and termination benefits are 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. Accounting estimates and judgments By their nature, the recognition of provisions require estimates and assumptions regarding the timing and the amount of outflow of resources. The main estimates include: Respironics field-action provision Product warranty provisions Environmental provisions Legal provisions . Contingent consideration provisions Philips Group Provisions in millions of EUR 2021 2022 long-term short-term total long-term short-term total Post-employment benefits 1 659 659 546 546 Respironics field-action provision 52 525 577 23 366 390 Product warranty provisions 32 207 238 57 287 344 Environmental provisions 99 26 124 83 20 104 Restructuring-related provisions 8 58 66 6 134 140 Legal provisions 53 39 91 14 74 89 Contingent consideration provisions 156 52 208 89 23 113 Other provisions 257 92 349 279 112 390 Provisions 1,315 998 2,313 1,097 1,018 2,115 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. The repair and replacement program is under way globally. Because of the 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 December 31, 2022, approximately 90% of the production required for the delivery of replacement devices to patients has been completed. The time to complete the program is impacted by the dependency on supply of materials, including from China, and global logistics capacity. Philips Respironics is also conducting a test and research program with independent laboratories. Philips has recognized a provision based on Philips' best estimate of the costs to repair or replace devices subject to the Respironics field action. The provision is related to the cost to repair and/or replace affected devices and includes, amongst others, the costs for the remaining production, the cost of intensified communication with physicians and patients, material costs, labor cost and logistics. The provision does not include any product liability costs or other claims. Movements during the year were as follows: Philips Group Respironics field-action provision in millions of EUR 2021 2022 Balance as of January 1 - 577 Additions 719 250 Utilizations (175) (486) Translation differences 33 49 Balance as of December 31 577 390 Additions for the year reflect updated expectations in relation to the volume of devices eligible for remediation as well as additional costs related to the acceleration of the program. As of December 31, 2022, Philips Respironics expects to remediate a total of around 5.6 million devices (specific CPAP, BiPAP and mechanical ventilator devices) globally, excluding certain end-of-life devices that are expected to be retired. In 2022, following Philips Respironics’ comprehensive patient and customer communication outreach and based on current insights, the total expected units to be remediated have increased by approximately 0.4 million, primarily in the US. Furthermore, efforts to accelerate the program resulted in a shift towards replacement, which increased the replacement share to 60% (compared to 46% as of December 31, 2021) and as a result further reduced repair quantities. Utilizations for the year reflect the costs incurred in executing the repair and replace program during the year. The completion of the field action continues to be 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, 2022, 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 Increase individual assumption by 10% Decrease individual assumption by 10% Total quantity of devices remaining 26 (26) Replacement share 12 (12) Actual outcomes in future periods may differ from these estimates and affect the company's results of operations, financial position and cash flows. In addition, running remediation costs of EUR 210 million (2021: EUR 94 million) related to the remediation, such as testing, external advisory and regulatory response and additional right-of-return and warranty provisions have been incurred. Following the FDA’s inspection of certain of Philips Respironics’ facilities in the US in 2021 and the subsequent inspectional observations, the US Department of Justice, acting on behalf of the FDA, in July 2022 started discussions with Philips regarding the terms of a consent decree to resolve the identified issues. At the end of December 2022, the discussions are ongoing. 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. To date no provisions have been recorded for the litigation and investigations associated with the Respironics field action. For legal matters including claims refer to Contingencies Product warranty provisions 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. Philips Group Provisions for assurance-type product warranty in millions of EUR 2021 2022 Balance as of January 1 167 238 Additions 364 320 Utilizations (265) (224) Transfer to liabilities associated with assets held for sale (37) Translation differences and other 10 9 Balance as of December 31 238 344 Additions in 2022 include quality actions of EUR 108 million in the Connected Care segment, mainly for the following matters: Pads Cartridges In February 2022, Philips issued a field safety notice notifying customers of a potential issue with the Adult SMART Pads Cartridge (M5071A) and the Infant/Child SMART Pads Cartridge (M5072A) for use specifically with the HeartStart HS1 Automated External Defibrillator (AED) devices. Philips has identified that for affected pads the HS1 AED could deliver less effective or ineffective therapy. Philips is actively working on replacing these pads and has commenced the replacement program in 2022. V60 35V In March 2022, Philips Respironics issued a voluntary recall notification/field safety notice to customers of its V60, V60 Plus and V680 ventilators, regarding a potential issue that could affect the main electrical circuit (“35V Rail”) powering the ventilator and alarm. This notification was updated in April 2022 with additional customer instructions. In June 2022, Philips issued a further update to this notification, regarding the projected correction for this matter. To address the issue with the 35V Rail, Philips Respironics has commenced the remediation program in 2022. 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 73 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 Contingencies Philips Group Environmental provisions in millions of EUR 2021 2022 Balance as of January 1 183 124 Additions 18 15 Utilizations (15) (17) Releases (64) (2) Changes in discount rate (10) (27) Accretion 3 4 Translation differences and other 9 7 Balance as of December 31 124 104 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 January 1, 2022 additions utilizations releases other changes December 31, 2022 Diagnosis & Treatment 26 58 (27) (8) 0 49 Connected Care 17 34 (13) (3) (1) 34 Personal Health 9 9 (7) (2) 0 10 Other 14 52 (14) (5) 0 47 Philips Group 66 154 (61) (18) (1) 140 In 2022, Philips initiated general productivity actions aimed at simplifying the organization to streamline the way of working and reduce operating expenses. This includes an immediate reduction of around 4,000 positions globally across the organization, subject to consultation with the relevant workers councils and social partners, with severance and termination-related costs expected to be approximately EUR 130 million in aggregate, of which EUR 80 million was recorded in 2022. In addition, restructuring projects were executed during the year, of which the most significant impacted Diagnosis & Treatment and Other and mainly took place in the US and Netherlands. The restructuring mainly comprised product portfolio rationalization and the reorganization of global support functions. The company expects the provisions to be utilized mainly within the next year. 2021 In 2021, the most significant restructuring projects impacted Diagnostic & Treatment and Connected Care businesses and mainly took place in the Netherlands and US. The movements in the provisions for restructuring in 2021 are presented by segment as follows: Philips Group Restructuring-related provisions in millions of EUR January 1, 2021 additions utilizations releases other changes December 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 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 2021 2022 Balance as of January 1 72 91 Additions 43 89 Acquisitions 38 4 Utilizations (17) (100) Releases (48) (3) Accretion 1 - Translation differences and other 3 7 Balance as of December 31 91 89 The majority of the movements in the above schedule are: Additions mainly relate to a provision recognized for alleged tender irregularities as disclosed in note Contingencies For details of other legal matters, including regulatory and other governmental proceedings, refer to Contingencies 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 2021 2022 Balance as of January 1 318 208 Acquisitions 16 96 Utilizations (48) (105) Fair value changes (78) (86) Balance as of December 31 208 113 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. In 2021 and 2022, the fair value changes mainly related to EPD. In 2022, the decrease of EUR 61 million in the fair value of the contingent consideration comprised of EUR 30 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 31 million due to delays in achievement of certain milestones. In 2021, the decrease of EUR 45 million in the fair value of the contingent consideration comprised of EUR 14 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 31 million due to delays in achievement of certain milestones. The company expects the provisions to be utilized mainly within the next three years. Other provisions Philips Group Other provisions in millions of EUR 2021 2022 Balance as of January 1 372 349 Additions 89 160 Utilizations (87) (95) Releases (29) (35) Accretion (5) (3) Translation differences and other 9 14 Balance as of December 31 349 390 The main elements of other provisions are: provisions for employee jubilee funds EUR 83 million (2021: EUR 94 million); self-insurance provisions of EUR 57 million (2021: EUR 43 million); provisions for non-income taxes/social security of EUR 46 million (2021: EUR 37 million); provisions for rights of return of EUR 36 million (2021: EUR 40 million); provisions for decommissioning costs of EUR 33 million (2021: EUR 33 million); provisions for onerous contracts of EUR 38 million (2021: EUR 12 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. the remaining provisions relate to a variety of positions, for example provision for disability of employees and provision for royalty obligations. the releases in 2021 and 2022 are due to the reassessment of the positions in other provisions throughout the year. 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, 2022 | |
Post-employment benefits [Abstract] | |
Post-employment benefits [Text Block] | 20 Accounting policies Defined contribution plans A defined contribution plan is a post-employment benefit plan for which the company 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. Defined Benefit plans A defined benefit plan is a post-employment benefit plan that is not a defined contribution plan. Defined benefit plans define an amount of pension benefit that an employee will receive after retirement. That pension benefit typically depends on several factors such as years of service, age and salary. The net pension asset or liability recognized in the Consolidated balance sheets in respect of defined benefit 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 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. 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. 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 other 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 Accounting estimates and judgments To make the actuarial calculations for the valuation of defined benefit obligations, assumptions are needed for interest rates, healthcare cost increases, future pension increases, life expectancy and employee turnover rates. The actuarial calculations are made by external actuaries based on inputs from observable market data, such as corporate bond returns and yield curves to determine the discount rates to apply, mortality tables to determine life expectancy and inflation rates to determine future salary and pension growth assumptions. 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. The table also provides the value of reimbursement rights. Philips Group Post-employment benefits in millions of EUR Germany United States Other Countries Total 2021 2022 2021 2022 2021 2022 2021 2022 Present value of funded DBO (606) (489) (558) (440) (206) (179) (1,370) (1,108) Present value of unfunded DBO (316) (249) (149) (128) (135) (136) (600) (513) Total present value of DBO (921) (738) (708) (568) (341) (315) (1,970) (1,621) Fair value of plan assets 572 477 623 474 185 171 1,380 1,122 Net position (349) (261) (84) (94) (157) (144) (590) (499) Value of reimbursement rights 6 6 The classification of the net position is as follows: Philips Group Classification net position in millions of EUR Germany United States Other Countries Total 2021 2022 2021 2022 2021 2022 2021 2022 Total asset for plans in a surplus 3 9 65 34 1 4 69 46 Total liability for plans in a deficit (352) (270) (149) (128) (157) (148) (659) (546) Provisions for post-employment benefit plans under AHFS Net position (349) (261) (84) (94) (157) (144) (590) (499) 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 the 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 2020 2021 2022 Defined benefit plans 74 36 50 - included in income from operations 59 28 39 - included in financial expense 13 8 10 - included in Discontinued operations 1 1 Defined contribution plans 366 375 400 - included in income from operations 358 368 400 - included in Discontinued operations 8 7 Post-employment benefits costs 440 411 449 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 2021 2022 Balance as of January 1 2,153 1,970 Service cost 36 32 Interest cost 33 36 Employee contributions 7 4 Actuarial (gains) / losses - demographic assumptions 3 2 - financial assumptions (86) (366) - experience adjustment (6) 12 (Negative) past service cost (5) 16 Settlements (90) Benefits paid from plan (95) (95) Benefits paid directly by employer (33) (41) Translation differences and other 52 52 Balance as of December 31 1,970 1,621 Philips Group Plan assets in millions of EUR 2021 2022 Balance as of January 1 1,403 1,380 Interest income on plan assets 25 26 Admin expenses paid (1) (1) Return on plan assets excluding interest income 44 (254) Employee contributions 7 4 Employer contributions 33 17 Settlements (86) 0 Benefits paid from plan (96) (95) Translation differences and other 50 45 Balance as of December 31 1,380 1,122 The past service cost in 2022 mainly relates to the retiree medical plans in Brazil. The settlement amounts of 2021 mainly relate to the transfer of the provident fund plan into the government provident fund in India. Plan assets allocation The asset allocation in the company’s DB plans as of December 31 was as follows: Philips Group Plan assets allocation in millions of EUR 2021 2022 Assets quoted in active markets - Debt securities 790 560 - Equity securities - Other 195 203 Assets not quoted in active markets - Debt securities 1 - Equity securities 122 101 - Other 272 258 Total assets 1,380 1,122 The plan assets in 2022 contain 32% (2021: 29%) unquoted plan assets. Plan assets in 2022 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 2021 2022 2021 2022 2021 2022 2021 2022 Discount rate 1.1% 4.1% 2.6% 5.2% 2.1% 4.9% 1.8% 4.7% Inflation rate 1.8% 2.0% 2.2% 2.3% 2.0% 2.6% 2.0% 2.2% Salary increase 2.5% 2.8% 0.0% 0.0% 2.9% 3.3% 2.6% 2.9% 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 8 years (Germany: 9, United States: 8, and Other countries: 8) as of December 31, 2022 (2021: 11 years). Philips Group Sensitivity of key assumptions in millions of EUR 2021 2022 Increase Discount rate (1% movement) (196) (122) Pension increase (1% movement) 99 57 Salary increase (1% movement) 19 12 Longevity 1 48 32 Decrease Discount rate (1% movement) 241 145 Pension increase (1% movement) (83) (49) Salary increase (1% movement) (18) (11) 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 2023 Cash outflows in relation to post-employment benefits are estimated to amount to EUR 464 million in 2023, consisting of: EUR 19 million employer contributions to funded DB plans (Germany: EUR 7 million, United States: EUR 0 million, Other Countries: EUR 12 million); EUR 43 million cash outflows in relation to unfunded DB plans (Germany: EUR 20 million, United States: EUR 11 million, Other Countries: EUR 12 million); and EUR 402 million employer contributions to DC plans (Netherlands: EUR 186 million, United States: EUR 153 million, Other Countries: EUR 63 million). The service and administration cost for 2023 is expected to amount to EUR 29 million for DB plans. The net interest cost for 2023 for the DB plans is expected to amount to EUR 21 million. The cost for DC pension plans in 2023 is equal to the expected DC cash flow. |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued liabilities [Abstract] | |
Accrued liabilities [Text Block] | 21 Accounting policies Accrued liabilities are initially measured at fair value and subsequently at amortized cost and are derecognized when the obligation under the liability is discharged, cancelled or has expired. Accrued liabilities are summarized as follows: Philips Group Accrued liabilities in millions of EUR 2021 2022 Personnel-related costs: - Salaries and wages 566 490 - Accrued holiday entitlements 127 97 - Other personnel-related costs 108 101 Fixed-asset-related costs: - Gas, water, electricity, rent and other 33 46 Communication and IT costs 82 64 Distribution costs 122 110 Sales-related costs: - Commission payable 7 8 - Advertising and marketing-related costs 175 127 - Other sales-related costs 20 20 Material-related costs 130 132 Interest-related accruals 52 71 Other accrued liabilities 362 361 Accrued liabilities 1,784 1,626 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other liabilities [Abstract] | |
Other liabilities [Text Block] | 22 Accounting policies Other liabilities are initially measured at fair value and subsequently at amortized cost and are derecognized when the obligation under the liability is discharged, cancelled or has expired. The company recognizes contract liabilities if a payment is received or a payment is due (whichever is earlier) from a customer before the company transfers the related goods or services. Contract liabilities are recognized as revenue when the company performs under the contract (i.e., transfers control of the related goods or services to the customer). Other non-current liabilities Non-current liabilities were EUR 60 million as of December 31, 2022 (December 31, 2021: EUR 56 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 2021 2022 Accrued customer rebates 280 213 Other taxes including social security premiums 190 115 Other liabilities 116 120 Other current liabilities 587 448 Contract liabilities Non-current contract liabilities were EUR 515 million as of December 31, 2022 (December 31, 2021: EUR 446 million) and current contract liabilities were EUR 1,696 million as of December 31, 2022 (December 31, 2021: EUR 1,491 million). The current contract liabilities increased by EUR 205 million, which is mainly driven by an increase in deferred balances for customer service contracts. The current contract liabilities as of December 31, 2021 resulted in revenue recognized of EUR 1,491 million in 2022. |
Cash flow statement supplementa
Cash flow statement supplementary information | 12 Months Ended |
Dec. 31, 2022 | |
Cash flow statement supplementary information [Abstract] | |
Cash flow statement supplementary information [Text Block] | 23 Accounting policies 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. Bank overdrafts are included in borrowings in current liabilities. Cash flow statements The cash flow statement is prepared using the indirect method. Cash flows related to interest and tax are included in operating activities. Assets and liabilities acquired as part of a business combination are included in investing activities (net of cash acquired). Dividends paid to shareholders are included in financing activities. Dividends received are included in operating activities. 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. Cash paid for leases In 2022, gross lease payments of EUR 316 million (2021: EUR 308 million; 2020: EUR 325 million) included interest of EUR 25 million (2021: EUR 25 million; 2020: EUR 29 million). Net cash used for derivatives and current financial assets In 2022, a total of EUR 72 million cash was paid with respect to foreign exchange derivative contracts related to activities for liquidity management (2021: EUR 48 million inflow; 2020: EUR 13 million outflow). Purchase and proceeds from non-current financial assets In 2022, the net cash outflow is EUR 38 million. 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. Reconciliation of liabilities arising from financing activities Certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items, principally because of the effects of translation differences and consolidation changes. Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR Balance as of Cash flow Currency effects and consolidation changes Other 1 Balance as of December 31, 2022 Long term debt 2 6,933 1,045 107 27 8,111 EUR bonds 3,233 827 4,061 USD bonds 1,313 (20) 85 1,378 Leases 1,220 (260) 17 105 1,082 Forward contracts 3 934 (76) 858 Bank borrowings 203 498 4 705 Other long-term debt 30 (1) 1 (1) 28 Short term debt 2 47 47 (6) 1 89 Short-term bank borrowings 47 47 (6) 1 89 Other short-term loans Forward contracts 3 Equity (1,410) (593) 869 (1,133) Dividend payable (418) 418 Forward contracts 3 (934) 76 (858) Treasury shares (476) (174) 375 (275) Total 500 1) Besides non-cash, other includes interest paid on leases, which is part of cash flows from operating activities 2) In this table, current portion of long-term debt is included in long-term debt (and excluded from short-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 Cash flow Currency effects and consolidation changes Other 1 Balance as of Long term debt 2 6,857 (226) 200 101 6,933 EUR bonds 3,229 4 3,233 USD bonds 1,210 103 1,313 Leases 1,216 (239) 98 145 1,220 Forward contracts 3 982 (48) 934 Bank borrowings 205 (1) 203 Other long-term debt 16 14 30 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 finance leases, which is part of cash flows from operating activities 2) In this table, current portion of long-term debt is included in long-term debt (and excluded from short-term debt). 3) The forward contracts are related to the share buyback program and LTI plans |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Contingencies [Abstract] | |
Contingencies [Text Block] | 24 Accounting policies Contingent liabilities A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized in the balance sheet because they are dependent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or because the risk of loss is estimated to be possible but not probable or because the amount cannot be measured reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain information is not disclosed for legal proceedings for which the company concludes that disclosure can be expected to seriously prejudice the outcome of the matter. Financial 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 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. Accounting estimates and judgments Significant judgment is required to determine the likelihood of a potential outflow of resources. In addition, judgment is involved in determining whether the amount of an obligation can be measured with sufficient reliability. Contingencies involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties, governmental actions, tax and environmental remediation. Contingent assets As of December 31, 2022, the company had no material contingent assets. Guarantees 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. Public Investigations The company is engaged in discussions with, and has provided information to, the US Securities and Exchange Commission (SEC) and US 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 compliance findings that the company is addressing in Brazil, China and Bulgaria. In connection with these discussions and their status, the company recorded a provision in the amount of EUR 60 million. Given the significant uncertainty regarding the nature of the relevant events and obligations, Philips is not currently able to reliably estimate the full financial effect of a range of possible outcomes in connection with the abovementioned discussions with the SEC and DoJ beyond the recorded provision. 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 CPAP, Bi-Level PAP, and mechanical ventilator devices (the “Recalled Devices”). Consent decree 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. In July 2022, Philips started discussions with the DoJ acting on behalf of the FDA on a consent decree that would address compliance requirements for future sales, the resolution of the inspectional findings and the completion of the recall. At the end of December 2022, the discussions are ongoing. DoJ investigation On April 8, 2022, Philips Respironics and certain of Philips’ subsidiaries in the US received a subpoena from the US DoJ to provide information related to events leading to the Respironics recall. The relevant subsidiaries are cooperating with the investigation. The criminal and civil investigation is being conducted by the US DoJ’s Consumer Protection Branch and Civil Fraud Section, and the US Attorney’s Office for the Eastern District of Pennsylvania. Given the early stages of the investigation, the company is not able to reliably estimate the financial impact, if any. 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, consumer and commercial class action lawsuits have been filed alleging economic loss and medical monitoring claims. Individual personal injury lawsuits have also been filed. 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. As of December 31, 2022, plaintiffs have filed a consolidated economic loss class action complaint on behalf of device users, hospitals, and insurers and other third-party payers, a consolidated medical monitoring class action complaint on behalf of device users, and over 300 individual personal injury complaints. The company anticipates that the number of individual personal injury complaints will increase in 2023. In September 2022, the MDL court established a voluntary, court-approved census registry, and associated tolling, for potential claimants who have not filed claims, but may file claims in the future, relating to the Recalled Devices. The census registry replaces the private tolling agreement that had been in effect before the establishment of the census registry. At the time of termination, approximately 60,000 individuals had entered into the private tolling agreement. In the event these individuals wish to pursue or preserve their claims, they will need to file a lawsuit or register on the census registry. By December 31, 2022, approximately 13,500 individuals had joined the census registry. The company anticipates that the number of individuals on the census registry will increase in 2023. 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. In the course of 2022, the plaintiff in the case has sought leave of the court to discontinue the class action citing that there is insufficient evidence to warrant the continuation of the class action and that since the issue of proceedings, Philips Respironics has been repairing, replacing, or refunding the devices which are the subject of the recall, meaning that any compensation relating to financial loss would be relatively confined. It is expected that the case will be discontinued in the first half of 2023. Philips Respironics and certain of its affiliates (including the company) are also defendants in consumer class action lawsuits in Canada and Israel and collective actions in Chile, France and the Netherlands 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 lawsuits and the cost to resolve them cannot currently be determined due to a number of variables, including uncertainty regarding the ultimate number of claimants and their allegations. Moreover, Philips Respironics has not yet completed its test and research program for all of the categories of the Recalled Devices. For the United States specifically, the relative early stage of the census registry, and lack of clarity around the nature of the specific injury each claimant is claiming, contribute to the uncertainty. In addition, the MDL court has not yet decided several significant motions, including motions to dismiss all of the complaints, and plaintiffs have not yet filed their motions for class certification in the economic loss and medical monitoring actions. Further, discovery is still in its early stages, and expert discovery has not yet begun. Moreover, Philips Respironics has not yet completed its test and research program for all of the categories of the Recalled Devices. 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 claims On August 16, 2021, a securities class action complaint was filed against the company, its former 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. Following the filing and briefing of the company’s motion to dismiss in the first half of 2022, plaintiff filed a second amended complaint on November 30, 2022, in which the alleged damage period was expanded to include certain share price declines that were allegedly based on disclosures made in 2022. The second amended complaint now focuses on share price declines that allegedly occurred as a result of various disclosures starting on April 26, 2021 through October 2022. The company’s motion to dismiss the second amended complaint is due in the first quarter of 2023. On September 11, 2022, the company received a letter from shareholders representative organization European Investors-VEB ("VEB"). The VEB holds Philips and its (former) managing and supervisory directors liable for – inter alia – allegedly failing to timely disclose price-sensitive information to shareholders regarding indications of potential (severe) health risks from the use of Recalled Devices, failing to exercise proper oversight over Philips Respironics and implement and ensure a proper information and risk management structure; providing incorrect or incomplete information in the company’s financial disclosures. It is the company’s assessment that it is possible but not probable that these cases could lead to a certain outflow of economic resources. The company is not able to reliably estimate the financial impact, if any. 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. Philips believes that the claim is without merit and will vigorously defend itself. Motions to dismiss the case were filed in November and December 2022. In addition, some of Philips Respironics’ business partners such as distributors and durable medical equipment providers have filed or threatened to file claims alleging economic losses suffered as a consequence of the voluntary recall. In particular, Philips Respironics is engaging with certain of its business partners on the level of compensation they allege to be entitled to under Philips Respironics’ replacement program of the Recalled Devices. It is the company’s assessment that it is possible but not probable that these cases could lead to a certain outflow of economic resources. The company is not able to reliably estimate the financial impact, if any. To date no provisions have been recorded for the litigation and investigations 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, 2022 | |
Related-party transactions [Abstract] | |
Related-party transactions [Text Block] | 25 In the normal course of business, Philips purchases and sells goods and services from/to various related parties in which Philips typically holds between 20% and 50% equity interest and has significant influence. These transactions are generally conducted with terms comparable to transactions with third parties. Philips Group Related-party transactions in millions of EUR 2020 2021 2022 Sales of goods and services 204 116 111 Purchases of goods and services 57 41 46 Receivables from related parties 37 40 55 Payables to related parties 1 2 2 In the previous table, sales transactions between Philips and PMC are included amounting to EUR 101 million in 2022 (2021: EUR 106 million; 2020: EUR 191 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 117 million in 2022 (2021: EUR 162 million; 2020: EUR 242 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, 2022 | |
Share-based compensation [Abstract] | |
Share-based compensation [Text Block] | 26 Accounting policies Philips share-based compensation is an equity-settled plan comprising restricted and performance shares. The restricted shares are subject to a three-year service condition and the performance shares include both market and non-market-based performance conditions, in addition to a three-year vesting period. These shares are awarded to the Executive Committee and Senior Management. The grant date fair value of market-based performance shares is determined through a Monte Carlo valuation model. The grant date fair value of non-market-based performance shares and restricted shares is determined as the share price at the grant date as participants are eligible to receive dividends throughout the vesting period. The costs of share-based compensation plans are revised for expected performance (non-market-based performance shares) and forfeiture and are spread evenly over the service period. Share-based compensation is recognized over the vesting period as personnel expense in the consolidated statement of income, with a corresponding increase to equity. Accounting estimates and judgments The use of a valuation model to determine market-based performance share fair value requires estimates for the expected volatility of the Philips share price and correlation among input variables. At each reporting date, Philips calculates the expected realization the of non-market-based performance targets and revises the expected share-based compensation expense. The cumulative effect is recorded in the consolidated statement of income with a corresponding adjustment in equity. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. 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 104 million (2021: EUR 115 million; 2020: EUR 119 million). This includes the employee stock purchase plan of EUR 9 million, which is not a share-based compensation that affects equity . In the Consolidated statements of changes in equity EUR 95 million is recognized in 2022 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 (2021: 20 companies; 2020: 20 companies, 2019; 20 companies) and adjusted Earnings Per Share growth ** 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, 2021, and 2022 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 ** 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 2022 grants: Risk-free rate: 0.43% Expected share price volatility: 32% 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, 2022 and changes during the year are presented in the following table: Philips Group Performance shares 2021 2022 shares weighted average grant-date fair value shares weighted average grant-date fair value EUR-denominated Outstanding as of January 1 3,545,312 41.31 3,097,713 45.28 Granted 1,121,001 50.73 2,323,435 20.55 Notional dividends 1 62,872 45.22 155,067 33.91 Vested/Issued (1,466,223) 39.18 (434,329) 40.90 Forfeited (272,873) 45.90 (233,556) 38.67 Adjusted quantity 2 107,624 37.67 (522,493) 40.48 Outstanding as of December 31 3,097,713 45.28 4,385,837 33.13 USD-denominated Outstanding as of January 1 2,412,767 47.10 2,005,000 51.48 Granted 693,918 61.32 1,530,585 21.93 Notional dividends 1 41,324 51.42 98,883 37.15 Vested/Issued (947,772) 47.48 (248,848) 45.23 Forfeited (268,500) 51.29 (309,570) 44.04 Adjusted quantity 2 73,264 50.06 (326,066) 45.26 Outstanding as of December 31 2,005,000 51.48 2,749,983 36.66 1) Dividend declared in 2022 on outstanding shares. 2) Adjusted quantity includes the adjustments made to Performance shares outstanding due to updates on the actual TSR and EPS. As of December 31, 2022, a total of EUR 103 million of unrecognized compensation costs relate to non-vested performance shares (as of December 31, 2021 EUR 110 million; as of December 31, 2020 EUR 116 million). These costs are expected to be recognized over a weighted-average period of 1.83 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, 2022 and changes during the year are presented in the following table: Philips Group Restricted shares 2021 2022 shares weighted average grant-date fair value shares weighted average grant-date fair value EUR-denominated Outstanding as of January 1 1,813,385 36.20 1,618,488 39.93 Granted 631,347 44.41 1,349,003 22.03 Notional dividends 1 33,430 39.69 81,500 35.67 Vested/Issued (671,703) 33.96 (540,930) 35.82 Forfeited (187,648) 40.19 (186,811) 35.06 Cancelled (323) 35.72 Outstanding as of December 31 1,618,488 39.93 2,321,250 30.73 USD-denominated Outstanding as of January 1 1,649,847 41.14 1,611,021 46.26 Granted 721,469 53.42 1,463,855 23.60 Notional dividends 1 30,551 44.99 83,151 39.37 Vested/Issued (584,833) 40.64 (541,336) 41.48 Forfeited (206,013) 46.09 (271,427) 38.51 Outstanding as of December 31 1,611,021 46.26 2,345,263 33.87 1) Dividend declared in 2022 on outstanding shares. As of December 31, 2022, a total of EUR 72 million of unrecognized compensation costs relate to non-vested restricted shares (as of December 31, 2021 EUR 66 million; as of December 31, 2020 EUR 62 million). These costs are expected to be recognized over a weighted-average period of 1.84 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, 2022. The following tables summarize information about the company’s options as of December 31, 2022 and changes during the year: Philips Group Options on EUR-denominated listed share options weighted average exercise price Outstanding as of January 1, 2022 239,077 14.93 Exercised (226,177) 14.91 Expired (12,150) 14.82 Outstanding as of December 31, 2022 750 22.43 Exercisable as of December 31, 2022 750 22.43 The exercise prices range from EUR 14.82 to EUR 22.43. The weighted average remaining contractual term for options outstanding and options exercisable as of December 31, 2022, was 0.1 years. The aggregate intrinsic value of the options outstanding and options exercisable as of December 31, 2022, was EUR 0 million. The total intrinsic value of options exercised during 2022 was EUR 3 million (2021: EUR 6 million, 2020: EUR 9 million). Philips Group Options on USD-denominated listed share options weighted average exercise price Outstanding as of January 1, 2022 150,165 19.75 Exercised (136,665) 19.53 Expired (11,550) 20.62 Outstanding as of December 31, 2022 1,950 30.27 Exercisable as of December 31, 2022 1,950 30.27 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, 2022, was 0.1 years. The aggregate intrinsic value of the options outstanding and options exercisable as of December 31, 2022, was 0 million. The total intrinsic value of options exercised during 2022 was USD2 million (2021; USD 7 million, 2020: USD 11 million). As of December 31, 2022 there were no unrecognized compensation costs related to outstanding options. Cash received from exercises under the company’s option plans amounted to EUR 6 million in 2022 (2021: EUR 9 million, 2020: EUR 21 million), The actual tax deductions realized as a result of USD option exercises totaled approximately 0.6 million in 2022 (2021: EUR 1 million, 2020: EUR 3 million). The outstanding options as of December 31, 2022 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 15-20 20-25 750 0.1 Outstanding options 750 0.1 USD-denominated 15-20 20-25 25-30 30-35 1,950 0.1 Outstanding options 1,950 0.1 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 2022 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, 2022. The following table summarizes information about the company’s Accelerate! options as of December 31, 2022 and changes during the year: Philips Group Accelerate! options options weighted average exercise price EUR-denominated Outstanding as of January 1, 2022 136,975 18.13 Exercised (81,975) 15.24 Outstanding as of December 31, 2022 55,000 22.43 Exercisable as of December 31, 2022 55,000 22.43 USD-denominated Outstanding as of January 1, 2022 17,500 20.02 Exercised (17,500) 20.02 Outstanding as of December 31, 2022 Exercisable as of December 31, 2022 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 as of December 31, 2022 was 0.1 years. The weighted average remaining contractual term for USD-Accelerate! options outstanding and exercisable as of December 31, 2022 was 0 years. The aggregate intrinsic value of the EUR-denominated Accelerate! options outstanding and exercisable as of December 31, 2022, was EUR 0 million. The aggregate intrinsic value of the USD-denominated Accelerate! options outstanding and exercisable as of December 31, 2022 was USD 0 million. The total intrinsic value of Accelerate! options exercised during 2022 was EUR 1.1 million for EUR-denominated options (2021: EUR 0.7 million, 2020: EUR 1.6 million) and USD 0.3 million for USD-denominated options (2021: USD 0.7 million, 2020: USD 0.9 million). Cash received from exercises for EUR-denominated and USD-denominated Accelerate! options amounted to EUR 1.6 million in 2022 (2021: EUR 0.7 million, 2020: EUR 1.4 million). The actual tax deductions realized as a result of Accelerate! USD options exercises totaled approximately EUR 0.1 million in 2022 (2021: EUR 0.1 million, 2020: EUR 0.1 million). *) Executive Committee members can receive restricted share rights as a sign-on LTI awards upon hiring. **) The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Equity |
Information on remuneration
Information on remuneration | 12 Months Ended |
Dec. 31, 2022 | |
Information on remuneration [Abstract] | |
Information on remuneration [Text Block] | 27 Remuneration of the Executive Committee In 2022, the total remuneration costs relating to the members of the Executive Committee (consisting of 14 members throughout the year, including the members of the Board of Management) amounted to EUR 25.6 million (2021: EUR 33.4 million; 2020: EUR 33.2 million) consisting of the elements in the following table. Philips Group Remuneration costs of the Executive Committee 1 in EUR 2020 2021 2022 Base salary/Base compensation 9,299,794 9,598,588 9,528,279 Annual incentive 2 6,726,768 5,250,408 208,370 Performance shares 3 13,153,975 12,610,073 11,242,581 Restricted share rights 3 288,372 1,380,644 1,191,529 Pension allowances 4 2,054,570 2,107,953 1,949,204 Pension scheme costs 382,513 306,694 288,179 Other compensation 5 1,264,908 2,104,044 1,216,163 Total 33,170,901 33,358,405 25,624,305 1) The Executive Committee consisted of 13 members as per December 31, 2022 (2021: 13 members; 2020: 15 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) Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 5) 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 As of December 31, 2022, the members of the Executive Committee (including the members of the Board of Management) held 0 stock options (2021: 184,900; 2020: 193,300). Remuneration of the Board of Management In 2022, the total remuneration costs relating to the members of the Board of Management amounted to EUR 8.4 million (2021: EUR 10.3 million; 2020: EUR 11.4 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 2022 R. Jakobs 4 256,438 112,737 - 57,973 6,012 11,507 444,667 F.A. van Houten 4 1,041,849 208,370 2,930,068 - 444,051 22,121 42,533 4,688,992 A. Bhattacharya 806,250 - 763,140 - 237,250 28,133 61,308 1,896,081 M.J. van Ginneken 626,250 - 585,490 - 141,622 28,133 35,343 1,416,837 2,730,788 208,370 4,391,434 - 880,896 84,398 150,691 8,446,577 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 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. 4) As per October 15, 2022, Roy Jakobs was appointed as CEO of the company. The table includes actual costs incurred in respect of the remuneration received by Mr Van Houten and Mr Jakobs, respectively, as CEO. 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, 2022 accumulated annual pension as of December 31, 2022 total pension related costs R. Jakobs 48 53,175 63,985 A. Bhattacharya 61 37,446 265,383 M.J. van Ginneken 49 50,614 169,755 Pension costs 499,123 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 2022, 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 1.5 million (2021: EUR 1.3 million; 2020: 1.3 million). Former members received no remuneration. The members of the Supervisory Board do not receive any share-based remuneration. Therefore, as of December 31, 2022 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 2022 F. Sijbesma 155,000 35,000 16,345 206,345 P.A.M. Stoffels 115,000 35,000 27,269 177,269 N. Dhawan 35,616 6,411 5,808 47,836 D.E.I. Pyott 100,000 35,000 17,269 152,269 A.M. Harrison 100,000 14,000 12,269 126,269 M.E. Doherty 100,000 27,000 24,769 151,769 P. Löscher 100,000 32,000 24,769 156,769 I. Nooyi 100,000 14,000 17,269 131,269 S.K. Chua 100,000 18,000 22,269 140,269 H. Verhagen 100,000 14,000 7,269 121,269 S. Poonen 100,000 18,000 17,269 135,269 1,105,616 248,411 192,574 1,546,602 2021 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 P.A.M. Stoffels 109,863 27,808 4,769 142,440 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 F. Sijbesma 141,301 27,808 8,237 177,346 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 P. Löscher 66,667 21,333 1,513 89,513 F. Sijbesma 76,667 9,333 1,513 87,513 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 1,013,333 236,000 65,254 1,314,587 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, 2021 December 31, 2022 R. Jakobs 101,156 109,422 A. Bhattacharya 148,365 169,517 M.J. van Ginneken 110,528 123,914 P. Stoffels - 17,000 S. Poonen - 3,000 I. Nooyi - 3,100 D. Pyott - 19,000 S.K. Chua - 2,000 F. Sijbesma - 12,500 M. Harrison - 1,500 P. Löscher - 20,732 1) Reference date for board membership is December 31, 2022. 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, 2022 | |
Fair value of financial assets and liabilities [Abstract] | |
Fair value of financial assets and liabilities [Text Block] | 28 Accounting policies Fair value hierarchy For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are as follows: Level 1 – inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that the company can access at the measurement date. Level 2 – all significant inputs (other than quoted prices included within Level 1) are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3 – one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, for the asset or liability. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period during which the change has occurred. Offsetting and master netting agreements Financial assets and liabilities are offset and the net amount is reported in the balance sheet when, and only when, the company has currently a legally enforceable right to set-off the amounts and the group intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. Accounting estimates and judgments Determining the fair value of financial instruments requires the use of estimates according to the method applied for each type of financial asset of liability. 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. 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. The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or on the basis of discounted cash flow analysis using 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. The fair value of contingent consideration is dependent on the terms of the respective acquisition agreement that may require Philips 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 the contingent consideration provision is generally 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 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. 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. Philips Group Fair value of financial assets and liabilities in millions of EUR carrying amount estimated fair value 1 Level 1 Level 2 Level 3 December 31, 2022 Financial assets Carried at fair value: Debt instruments 232 232 232 Equity instruments 4 4 1 2 Other financial assets 86 86 35 51 Financial assets carried at FVTP&L 322 322 1 35 285 Debt instruments 25 25 25 Equity instruments 259 259 30 229 Current financial assets 9 9 9 Receivables - current 26 26 26 Financial assets carried at FVTOCI 319 319 30 25 264 Derivative financial instruments 127 127 127 Financial assets carried at fair value 768 768 32 187 549 Carried at (amortized) cost: Cash and cash equivalents 1,172 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 54 Receivables - current 4,088 Receivables - non-current 279 Financial assets carried at (amortized) cost 5,596 Total financial assets 6,364 Financial liabilities Carried at fair value: Contingent consideration (113) (113) (113) Financial liabilities carried at FVTP&L (113) (113) (113) Derivative financial instruments (211) (211) (211) Financial liabilities carried at fair value (324) (324) (211) (113) Carried at (amortized) cost: Accounts payable (1,968) Interest accrual (71) Debt (Corporate bonds and leases) (6,520) (6,083) (5,001) (1,082) Debt (excluding corporate bonds and leases) (1,680) Financial liabilities carried at (amortized) cost (10,240) Total financial liabilities (10,564) 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 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 December 31, 2021 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 FVTP&L 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. 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, 2022 523 208 Acquisitions 96 Purchase 131 Sales (76) Utilizations (105) Recognized in profit and loss: other business income (85) financial income and expenses 1 7 (8) Recognized in other comprehensive income 2 8 Receivables held to collect and sell (41) Reclassification 5 Balance as of December 31, 2022 549 113 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, 2021 411 318 Acquisitions 16 Purchase 113 Sales (122) Utilizations (48) Recognized in profit and loss: other business income (87) financial income and expenses 98 1 Recognized in other comprehensive income 1 12 9 Receivables held to collect and sell (25) Reclassification from associates 36 Balance as of December 31, 2021 523 208 1) Includes translation differences Offsetting and master netting agreements 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 2021 2022 Derivatives Gross amounts of recognized financial assets 63 127 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 63 127 Related amounts not offset in the balance sheet Financial instruments (47) (54) Net amount 17 73 Philips Group Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2021 2022 Derivatives Gross amounts of recognized financial liabilities (202) (211) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (202) (211) Related amounts not offset in the balance sheet Financial instruments 47 54 Net amount (155) (157) |
Details of treasury and other f
Details of treasury and other financial risks | 12 Months Ended |
Dec. 31, 2022 | |
Details of treasury and other financial risks [Abstract] | |
Details of treasury and other financial risks [Text Block] | 29 Accounting policies 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. Accounting estimates and judgments Financial assets are subject to impairment assessment, which involves estimating expected credit losses. Refer to Other financial assets Philips is exposed to several types of financial risks which are further analyzed below. 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. As of December 31, 2022, Philips had EUR 1,172 million in cash and cash equivalents (2021: EUR 2,303 million), within which short-term deposits of EUR 482 million (2021: EUR 1,357 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. 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 for its Commercial Paper Program. As of December 31, 2022, Philips did not have any loans outstanding under either facility. These facilities do not have a material adverse change clause, have no financial covenants and no credit-rating-related acceleration possibilities. Philips issued commercial paper of EUR 200 million 101 million 1 billion 500 million 10 billion 2 billion Debt In addition to cash and cash equivalents, as of December 31, 2022, Philips also held EUR 32 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, 2022. 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 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 8,168 842 1,760 1,809 3,757 Short-term debt 89 89 Interest on debt 1,683 159 304 264 956 Derivative liabilities 210 208 2 Purchase obligations 3 782 336 412 21 12 Trade and other payables 1,968 1,968 Contractual cash obligations 12,901 3,603 2,478 2,094 4,725 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) 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 127 million (2021: EUR 116 million). As of December 31, 2022 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. As of December 31, 2022 approximately EUR 151 million (2021: EUR 139 million)of the Philips account payable were transferred under these arrangements. With respect to the Respironics field action, please refer to Contingencies 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 400 million. In addition, the company is committed to leases not yet commenced to EUR 93 million. The company's lease contracts do not contain financial covenants. The company enters into sale-and-leaseback 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 2022 were EUR 72 million (2021: EUR 85 million). The remaining minimum payment under sale-and-leaseback arrangements included in lease obligations above are as follows: Philips Group Remaining minimum payments under sale-and-leaseback arrangements in millions of EUR 2023 55 2024 38 2025 23 2026 14 2027 5 Thereafter 18 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 as of December 31, 2022 was EUR 0.6 million (2021: 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, 2022: 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, 2022 Exposure currency USD 1,754 (1,530) (979) 936 JPY 479 (289) (9) 9 GBP 303 (188) (7) 7 CNY 346 (259) (80) 79 CAD 203 (138) PLN 65 (62) AUD 139 (92) (1) 1 CHF 132 (56) (3) 2 CZK 48 (50) SEK 55 (17) (1) 1 RUB 192 (192) (129) 129 Others 64 (46) (259) 162 Total 2022 3,779 (2,920) (1,468) 1,326 Total 2021 5,131 (3,363) (1,559) 1,322 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. The RUB as shown in the table above was hedged for part of the year till Q2 2022. nil The total net fair value of hedges related to transaction exposure as of December 31, 2022, was an unrealized gain of EUR 6 million. The estimated impact of a 10% increase of value of the EUR is estimated to be EUR 114 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 2021 2022 USD 78 68 JPY 13 15 GBP 14 16 CHF 5 4 PLN 3 2 RUB 10 0 The EUR 114 million increase includes a gain of EUR 41 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 73 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 748 million mainly relates to the development of the USD versus the EUR. As of December 31, 2022, 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 1,384 million. Refer to the country risk paragraph for countries with significant foreign currency denominated equity invested. As of December 31, 2022, cross-currency interest rate swaps for a nominal value of USD 500 million (liability at fair value: EUR 147 million) and external bond funding for a nominal value of USD 1,490 million (liability at book value: EUR 1,378 million) were designated as net investment hedges of financing investments in foreign operations for an equal amount. During 2022 a total loss 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, 2022, was a liability of EUR 147 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 192 million in the value of the derivatives, including a EUR 191 million increase related to the USD. 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 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. 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. As of December 31, 2022, Philips had outstanding debt of EUR 8,201 million (2021: EUR 6,980 million), which constitutes an inherent interest rate risk with potential negative impact on financial results. At year-end, Philips held EUR 1,172 million in cash and cash equivalents (2021: EUR 2,303 million), and had total long-term debt of EUR 7,270 million (2021: EUR 6,473 million) and total short-term debt of EUR 931 million (2021: EUR 506 million). As of December 31, 2022, Philips had a ratio of fixed-rate long-term debt to total outstanding debt of approximately 80% compared to 90% one year earlier. Philips debt has a long maturity profile with an average tenor of long-term debt of 6.1 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 2021 2022 Impact 1% 2 3 (297) (274) Impact 1% 2 3 298 274 Impact 1% 4 20 4 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, 2022, 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) as of December 31, 2022. 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 no interest rate hedging relationships which get affected by the reform and does 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 upon transition was EUR 1 million financial expense. 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 32 million as of December 31, 2022 (2021: EUR 67 million). Philips does not hold derivatives in the above-mentioned listed companies. Philips also has shareholdings in several privately-owned companies amounting to EUR 229 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, 2022 and 2021, 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, 2022. 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 0 0 A+ rated bank counterparties 3 1 0 A rated bank counterparties 0 1 0 A- rated bank counterparties 1 1 0 5 3 0 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 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, 2022, the company had country risk exposure of EUR 14.0 billion in the United States, EUR 1.3 billion in China (including Hong Kong). Other countries higher than EUR 500 million are Germany EUR 808 million, United Kingdom EUR 766 million, and Japan The impact of hyperinflation is also routinely assessed and was not material for the periods presented. Other insurable risks Philips is insured 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 10 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 2022 retained EUR 25 million per claim and EUR 50 million in the annual aggregate for general, product, professional liability, and marine cargo claims. New contracts were signed effective December 31, 2022, for the coming year, whereby the re-insurance captive retentions remained the same. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events [Abstract] | |
Subsequent events [Text Block] | 30 On January 30, 2023, Philips announced plans to create value with sustainable impact, which is based on focused organic growth to deliver patient- and people-driven innovation at scale with improved execution as key value driver, prioritizing patient safety and quality, supply chain reliability and a simplified operating model. In addition to the reduction of its workforce by 4,000 roles announced in October 2022, Philips plans to reduce its workforce by an additional 6,000 roles globally by 2025, of which 3,000 will be implemented in 2023 in line with the relevant local regulations and processes. These reductions are focused on Corporate and Functions optimization and non-core activities, for which charges in 2023 are expected to be approximately EUR 470 million. |
Significant accounting policies
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies (Policies) [Abstract] | |
Disclosure of basis of preparation of financial statements [text block] | Basis of preparation The Consolidated financial statements are: prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and comply 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 2022 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; authorized for issue by the Board of Management of Royal Philips on February 21, 2023; prepared under the historical cost convention, unless otherwise indicated; prepared on a going concern basis; presented in euro, which is the presentation currency; rounded to the nearest million euro unless stated otherwise; subject to rounding, whereby amounts may not add up precisely to the totals provided. |
Disclosure of accounting judgements and estimates [text block] | Accounting estimates and judgments The preparation of financial statements requires management to make a number of estimates and judgments that affect the application of accounting policies and the reporting amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Amounts recognized are based on factors that are by default associated with uncertainty. Actual results may therefore differ from estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to estimates are recognized prospectively. Where applicable, the estimates and judgments of specific financial statement items are described in the respective note to the consolidated financial statements. The areas involving a higher degree of judgment and complexity in applying accounting principles and for which changes in the assumptions and estimates could result in significantly different results than those recorded in the consolidated financial statements are the following: Assessment of control (below paragraph Basis of consolidation and Interests in entities Revenue recognition ( Income from operations For acquisitions, the identification and valuation of acquired assets and liabilities including contingent considerations provisions ( Acquisitions and divestments Provisions Determination of deferred tax assets for losses carried forward and uncertain tax positions ( Income taxes Assumptions used for impairment testing ( Property, plant and equipment Goodwill Intangible assets excluding goodwill Assessments of exposure to credit risk of financial instruments (Note Other financial assets Receivables Debt Fair value of financial assets and liabilities Details of treasury and other financial risks Assumptions used to determine the net realizable value of inventories ( Inventories Actuarial assumptions of future events that are used in calculating post-employment benefit expenses and liabilities ( Post-employment benefits Estimating the likelihood of a potential outflow of resources, as well as the ability to make a reliable estimate of the obligation relating to provisions and contingent liabilities ( Provisions Contingencies 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 the accounting policies, those which are primarily impacted by the macroeconomic environment include impairment testing, valuation of inventories, valuation of deferred tax balances, measurement of financial instruments and the determination of fair values (for example fair values of acquired identifiable intangible assets, contingent considerations and certain investments). 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 judgments, 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. |
Disclosure of significant accounting policies [text block] | Accounting policies The general accounting policies as applied throughout the financial statements are described below. Accounting policies relating to specific financial statement items are included in the respective notes to the financial statements. |
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 on a consolidated basis. Control exists when the company is exposed or has rights to variable returns from its involvement with the investee and the company 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 foreign currency translation [text block] | 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 consolidated financial statements. Foreign currency transactions are converted into the functional currency using the exchange rates prevailing at transaction date or the valuation date in cases where items are remeasured. Gains and losses resulting from the settlement of foreign currency transactions and those resulting from the conversion of foreign currency denominated monetary assets and liabilities at period-end exchange rates are recognized in the Consolidated statements of income, except for qualifying cash flow hedges, qualifying net investment hedges and equity investments measured at fair value through OCI which are recognized in other comprehensive income. All foreign exchange differences are presented as part of Cost of sales, apart from 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 not a wholly-owned subsidiary, the 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. Philips operates in two economies that are considered hyperinflationary, Argentina and Turkey. The impact of the application of IAS 29, Financial Reporting in Hyperinflationary Economies, is not material for the consolidated financial statements. |
Disclosure of changes in accounting policies [text block] | New accounting policies effective in 2022 No new IFRS accounting standards or amendments to existing standards, effective in 2022, had a significant impact on the consolidated financial statements. The company has not early adopted any standards or amendments to existing standards. New accounting policies effective after 2022 The IASB has issued several IFRS accounting standards, or amendments to standards, with an effective date after 2022. The company does not anticipate that the application of these standards, or amendments to standards, will have a significant effect on the consolidated financial statements upon adoption. Changes in presentation from the prior year Accounting policies have been applied consistently for all periods presented in these consolidated financial statements. Certain prior-year amounts have been reclassified to conform to the current year presentation due to immaterial organizational changes. |
Description of accounting policy for segment reporting [text block] | 2 Accounting policies Segment accounting policies are the same as the accounting policies applied by the company. 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 contains the items Innovation & Strategy, IP Royalties, Central costs, and other small items. |
Description of accounting policy for discontinued operations [text block] | 3 Accounting policies Assets classified as held-for-sale Non-current assets (or disposal groups) are classified as held-for-sale if their carrying amounts are expected be recovered through a sale transaction rather than through continuing use. Non-current assets (or disposal groups) classified as held-for-sale are measured at the lower of their carrying amount or the fair value less costs of disposal. Depreciation or amortization of an asset ceases when it is classified as held-for-sale. When non-current assets (or disposal groups) are classified as held-for-sale, comparative balances prior to such date are not represented in the Consolidated balance sheets. Discontinued operations A discontinued operation is a component of the company 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. Any gain or loss from disposal, together with the results of these operations until the date of disposal, are reported separately as discontinued operations in the Consolidated statements of income. 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 are re-presented for presentation of discontinued operations in the Consolidated statements of income and Consolidated statements of cash flows. Accounting estimates and judgments The determination of the fair value less costs of disposal involves the use of estimates and assumptions that tend to be uncertain. 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. |
Description of accounting policy for business combinations [text block] | 4 Accounting policies Acquisitions The company accounts for business combinations using the acquisition method when control is transferred to the group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition date and is initially 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 in the fair value of the contingent consideration are recognized in the Consolidated statements of income. Changes to the initial fair value of the acquired assets and liabilities, based on new information about the circumstances at the acquisition date, can be made up to twelve months after the acquisition date. Divestments 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 Accounting estimates and judgments Intangible assets acquired in a business acquisition and the financial liability related to non-controlling interest are measured at fair value at the date of the acquisition. To determine the fair value of intangible assets at the acquisition date, estimates and assumptions are required. The valuation of the identifiable intangible assets involves estimates of expected sales, earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty rate and growth rates. Estimates are also applied when determining the fair value of legal cases and tax positions in the acquired entity. The fair value is based on estimates of the likelihood, the expected timing and the amount of the potential cash outflow. Provisions for legal cases and non-income tax positions are recognized at fair value even if it is not probable that an outflow will be required to settle the obligation. After initial recognition and until the liability is settled, cancelled or expired, the liability is measured at the higher of the amount that would be recognized in accordance with IAS 37 'Provisions, contingent liabilities and contingent assets' and the initial liability amount. For income tax positions, the company applies IAS 12 'Income Taxes', which requires recognition of provisions only when the likelihood of cash outflow is considered probable. |
Description of accounting policy for investment in associates [text block] | 5 Accounting policies Associates are all entities over which the company has significant influence, but not control or joint control. Significant influence is presumed with a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The carrying amount of an investment in associate 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 associates 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. 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. Impairment losses and gains or losses on sale of investments are recorded in the Consolidated statements of income, more specifically on the line item ’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 is reduced to zero and recognition of further losses is discontinued except to the extent that the company has an obligation or made payments on behalf of the associate. |
Description of accounting policy for recognition of revenue [text block] | 6 Accounting policies Revenue recognition The company recognizes revenue when it transfers control over a good or service to a customer, in an amount that reflects the consideration (i.e., transaction price) to which the company expects to be entitled to in exchange for the good or service. 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 if the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds six months. 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. 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 the price that would be charged for the goods or service in a separate transaction under similar conditions to similar customers. The transaction price is determined (considering variable considerations) and allocated to performance obligations based on their 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 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. Variable consideration is included in the transaction price to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur once associated uncertainties are 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. Sale of goods Revenues are recognized at a point in time when control of the goods passes to the buyer, based on the allocation of the transaction price to the performance obligation. Revenue from services Revenues are recognized over 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. Income from royalties Royalty income from brand license arrangements and from intellectual property rights, such as technology licenses or patents, is recognized on an accrual basis in accordance with the substance of the relevant agreement. Shipping and handling Expenses incurred for shipping and handling are mainly recorded as cost of sales. 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 related to sales to third parties are partly recorded as selling expenses. When shipping and handling billed to customers are considered a distinct and separate performance obligation, the fees are recognized as revenue and costs included in cost of sales. Other business income (expenses) Other business income (expenses) includes gains and losses on the sale of property, plant and equipment, gains and losses on the sale of businesses as well as other gains and losses not related to the company’s operating activities. Government grants Grants from governments are recognized at their fair value when there is a reasonable assurance that the grant will be received and the company will comply with the conditions. Grants related to costs are deferred in the consolidated balance sheet and recognized in the consolidated statement of income as a reduction of the related 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. Accounting estimates and judgments Sales-related accruals The company has sales promotions-related agreements with distributors and retailers designed to promote the sale of products. Among the programs are arrangements under which rebates and discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or for participating in specific marketing programs. Management estimates the sales-related accruals associated with these arrangements based on a combination of historical patterns and future expectations regarding which promotional targets are expected to be met by distributors and retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right to offset against the respective accounts receivable. |
Description of accounting policy for finance income and costs [text block] | 7 Accounting policies Financial income and expenses are recognized on the accrual basis in the consolidated statements of income. Interest income and expense are measured 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. |
Description of accounting policy for income tax [text block] | 8 Accounting policies 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. Accounting estimates and judgments Deferred tax recoverability Deferred tax assets are recognized to the extent that it is probable that there will be future taxable profits against which these can be utilized. Significant judgment is involved in determining whether such profits are probable. Management determines this on the basis of expected taxable profits arising from the reversal of recognized deferred tax liabilities, appropriate tax planning opportunities to support business goals and on the basis of forecasts. Uncertain tax positions Uncertain tax positions are recognized as liabilities if and to the extent it is probable that additional tax will be due and the amount can be reliably measured. Significant judgment is involved in determining these positions. |
Description of accounting policy for earnings per share [text block] | 9 Accounting policies 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 (after deduction of treasury shares) during the period. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders and the weighted average number of common shares outstanding (after deduction of treasury shares) during the period, for the effects of all dilutive potential common shares, which comprise performance shares, restricted shares and share options granted under share-based compensation plans as well as forward contracts to repurchase shares. |
Description of accounting policy for property, plant and equipment [text block] | 10 Accounting policies Owned assets The cost 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. Land and assets under construction are not depreciated. When assets under construction are ready for their intended use, they are transferred to the relevant asset category and depreciation starts. All other property, plant and equipment items are depreciated over their estimated useful lives to their estimated residual values. The estimated useful lives of property, plant and equipment are as follows: Philips Group Useful lives of property, plant and equipment Buildings from 5 to 50 years Machinery and installations from 3 to 20 years Other equipment from 1 to 10 years Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the asset's book value exceeds their recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. The recoverable amount is defined as the higher of the asset’s fair value less costs of disposal and its value in use. 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 they extend the asset's original lifetime or capacity. Right-of-use assets The company leases various items of real estate, vehicles and other equipment. The company determines whether an arrangement constitutes or contains a lease based on the substance of the arrangement at the lease inception. 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 The company recognizes right-of-use assets and lease liabilities for leases with a term of more than twelve months if the underlying asset is not of low value. Payments for short-term and low-value leases are expensed over the lease term. Extension options are included in the lease term if their exercise is reasonably certain. Right-of-use assets are measured at cost less accumulated depreciation and impairment losses, adjusted for any remeasurements. Right-of-use assets are depreciated using the straight-line method over the shorter of the lease term and the useful life of the underlying assets. 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 term in the Consolidated statement of income. Accounting estimates and judgments Impairment of owned and right-of-use assets Judgments are required, not only to determine whether there is an indication that an asset may be impaired, but also whether indications exist that impairment losses previously recognized may no longer exist or may have decreased (impairment reversal). After indications of impairment have been identified, estimates and assumptions are used in the determination of the recoverable amount of a fixed asset. These involve estimates of expected future cash flows (based on future growth rates and remaining useful life) and residual value assumptions, as well as discount rates to calculate the present value of the future cash flows. Owned assets Estimates are required to determine the (remaining) useful lives of fixed assets. Useful lives are determined based on an asset's age, the frequency of its use, repair and maintenance policy, technology changes in production and expected restructuring. The company estimates the expected residual value per asset item. The residual value is the higher of the asset's expected sales price (based on recent market transactions of similar sold items) and its material scrap value. Right-of-use assets Significant judgment is required to determine the lease term. The assessment of whether the company is reasonably certain to exercise extension options impacts the lease term, which could affect the amount of lease liabilities and right-of-use assets recognized. |
Description of accounting policy for goodwill [text block] | 11 Accounting policies The measurement of goodwill at initial recognition is described in the Acquisitions and divestments note. Goodwill is subsequently measured at cost less accumulated impairment losses. Goodwill is not amortized but tested for impairment annually and whenever impairment indicators require. Internal or external sources of information are considered to assess if there are indicators that an asset or a CGU may be impaired. In most cases the company identifies 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. Accounting estimates and judgments The cash flow projections used in the value in use calculations for goodwill impairment testing contain various judgments and estimations as described in the key assumptions sections below. |
Description of accounting policy for intangible assets other than goodwill [text block] | 12 Accounting policies 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. 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 9.4 years as of December 31, 2022 (2021: 9.6 years). Impairment of intangible assets not yet ready for use Intangible assets not yet ready for use are not amortized but are tested for impairment annually and whenever impairment indicators require. In the case of intangible assets not yet ready for use, either internal or external sources of information are considered to assess if there are indicators that an asset or a CGU may be impaired. 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 for Intangible assets other than goodwill 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. Accounting estimates and judgments The cash flow projections used in the value in use calculations for intangible assets excluding goodwill contain various judgments and estimations. For intangible assets excluding goodwill, estimates are required to determine the (remaining) useful lives. |
Description of accounting policy for financial assets [text block] | 13 Accounting policies Classification and measurement of financial assets The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the company’s business model for managing them. The company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. For the purposes of subsequent measurement, financial assets are classified into four categories: Financial assets at amortized cost (debt instruments). Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments). Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments). Financial assets at fair value through profit or loss (debt instruments and equity instruments). Impairment of financial assets The company recognizes a loss allowance for expected credit losses for trade receivables, contract assets, lease receivables, debt investments carried at amortized cost and fair value through other comprehensive income (FVTOCI). At each balance sheet date, the company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired and recognizes a loss allowance for expected credit losses for financial assets measured at either amortized costs or at fair value through other comprehensive income. If, at the reporting date, the credit risk on a financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for the financial instrument at an amount equal to 12 months of expected credit losses. If, at the reporting date, the credit risk on a financial instrument has increased significantly since initial recognition, the company measures the loss allowance for the financial instrument at an amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and lease receivables the company measures the loss allowance at an amount equal to lifetime-expected credit losses. Accounting estimates and judgments The determination of fair value is subject to estimates for investments that are not publicly traded. Refer to Fair value of financial assets and liabilities Financial assets classified at amortized cost and at fair value through OCI are subject to impairment assessment. The calculation of expected credit losses requires the company to apply significant judgment and make estimates and assumptions that involve significant uncertainty at the time they are made. Changes to these estimates and assumptions can result in significant changes to the timing and amount of expected credit losses to be recognized. |
Description of accounting policy for other assets [text block] | 14 Accounting policies The company recognizes contract assets for revenue earned from installation services because the receipt of consideration is conditional on successful completion of the installation. Upon completion of the installation and acceptance by the customer, the amount recognized as contract assets is reclassified to trade receivables. Other assets are measured at amortized cost minus any impairment losses. |
Description of accounting policy for measuring inventories [text block] | 15 Accounting policies 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, considering 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. Accounting estimates and judgments 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. |
Description of accounting policy for trade and other receivables [text block] | 16 Accounting policies Receivables are held by the company to collect the related cash flows. These receivables are measured at fair value and subsequently measured at amortized cost minus any impairment losses. Receivables are derecognized when the company has transferred substantially all risks and rewards, which includes transactions in which the company enters into factoring transactions, or if the company does not retain control over the receivables. Accounting estimates Receivables are subject to impairment assessment, which involves estimating expected credit losses. Refer to Other financial assets |
Description of accounting policy for issued capital [text block] | 17 Accounting policies 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 repurchases 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 shareholders’ equity until such treasury shares are cancelled or reissued. Where such treasury shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in shareholders’ equity. 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. |
Description of accounting policy for borrowings [text block] | 18 Accounting policies Debt Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently, debt is measured at amortized cost using the effective interest rate method. 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. Lease liabilities Lease liabilities are measured at the present value of the lease payments due over the lease term, generally discounted using the incremental borrowing rate. Lease liabilities are subsequently measured at amortized cost using the effective interest method. Lease liabilities are remeasured in case of modifications or reassessments of the lease. |
Description of accounting policy for provisions [text block] | 19 Accounting policies A provision is a liability of uncertain timing or amount. 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 (accretion) is recognized as interest expense. Restructuring-related provisions Provisions for severance and termination benefits are 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. Accounting estimates and judgments By their nature, the recognition of provisions require estimates and assumptions regarding the timing and the amount of outflow of resources. The main estimates include: Respironics field-action provision Product warranty provisions Environmental provisions Legal provisions . Contingent consideration provisions |
Description of accounting policy for post-employment benefits [text block] | 20 Accounting policies Defined contribution plans A defined contribution plan is a post-employment benefit plan for which the company 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. Defined Benefit plans A defined benefit plan is a post-employment benefit plan that is not a defined contribution plan. Defined benefit plans define an amount of pension benefit that an employee will receive after retirement. That pension benefit typically depends on several factors such as years of service, age and salary. The net pension asset or liability recognized in the Consolidated balance sheets in respect of defined benefit 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 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. 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. 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 other 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 Accounting estimates and judgments To make the actuarial calculations for the valuation of defined benefit obligations, assumptions are needed for interest rates, healthcare cost increases, future pension increases, life expectancy and employee turnover rates. The actuarial calculations are made by external actuaries based on inputs from observable market data, such as corporate bond returns and yield curves to determine the discount rates to apply, mortality tables to determine life expectancy and inflation rates to determine future salary and pension growth assumptions. |
Description of accounting policy for financial liabilities [text block] | 21 Accounting policies Accrued liabilities are initially measured at fair value and subsequently at amortized cost and are derecognized when the obligation under the liability is discharged, cancelled or has expired. |
DescriptionOfAccountingPolicyForOtherLiabilitiesExplanatory | 22 Accounting policies Other liabilities are initially measured at fair value and subsequently at amortized cost and are derecognized when the obligation under the liability is discharged, cancelled or has expired. The company recognizes contract liabilities if a payment is received or a payment is due (whichever is earlier) from a customer before the company transfers the related goods or services. Contract liabilities are recognized as revenue when the company performs under the contract (i.e., transfers control of the related goods or services to the customer). |
Description of accounting policy for cash flows [text block] | 23 Accounting policies 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. Bank overdrafts are included in borrowings in current liabilities. Cash flow statements The cash flow statement is prepared using the indirect method. Cash flows related to interest and tax are included in operating activities. Assets and liabilities acquired as part of a business combination are included in investing activities (net of cash acquired). Dividends paid to shareholders are included in financing activities. Dividends received are included in operating activities. 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 contingent liabilities and contingent assets [text block] | 24 Accounting policies Contingent liabilities A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized in the balance sheet because they are dependent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or because the risk of loss is estimated to be possible but not probable or because the amount cannot be measured reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain information is not disclosed for legal proceedings for which the company concludes that disclosure can be expected to seriously prejudice the outcome of the matter. Financial 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 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. Accounting estimates and judgments Significant judgment is required to determine the likelihood of a potential outflow of resources. In addition, judgment is involved in determining whether the amount of an obligation can be measured with sufficient reliability. Contingencies involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties, governmental actions, tax and environmental remediation. |
Description of accounting policy for share-based payment transactions [text block] | 26 Accounting policies Philips share-based compensation is an equity-settled plan comprising restricted and performance shares. The restricted shares are subject to a three-year service condition and the performance shares include both market and non-market-based performance conditions, in addition to a three-year vesting period. These shares are awarded to the Executive Committee and Senior Management. The grant date fair value of market-based performance shares is determined through a Monte Carlo valuation model. The grant date fair value of non-market-based performance shares and restricted shares is determined as the share price at the grant date as participants are eligible to receive dividends throughout the vesting period. The costs of share-based compensation plans are revised for expected performance (non-market-based performance shares) and forfeiture and are spread evenly over the service period. Share-based compensation is recognized over the vesting period as personnel expense in the consolidated statement of income, with a corresponding increase to equity. Accounting estimates and judgments The use of a valuation model to determine market-based performance share fair value requires estimates for the expected volatility of the Philips share price and correlation among input variables. At each reporting date, Philips calculates the expected realization the of non-market-based performance targets and revises the expected share-based compensation expense. The cumulative effect is recorded in the consolidated statement of income with a corresponding adjustment in equity. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. |
Description of accounting policy for fair value measurement [text block] | 28 Accounting policies Fair value hierarchy For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are as follows: Level 1 – inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that the company can access at the measurement date. Level 2 – all significant inputs (other than quoted prices included within Level 1) are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3 – one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, for the asset or liability. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period during which the change has occurred. Offsetting and master netting agreements Financial assets and liabilities are offset and the net amount is reported in the balance sheet when, and only when, the company has currently a legally enforceable right to set-off the amounts and the group intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. Accounting estimates and judgments Determining the fair value of financial instruments requires the use of estimates according to the method applied for each type of financial asset of liability. 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. 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. The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or on the basis of discounted cash flow analysis using 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. The fair value of contingent consideration is dependent on the terms of the respective acquisition agreement that may require Philips 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 the contingent consideration provision is generally 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 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. |
Description of accounting policy for derivative financial instruments and hedging [text block] | 29 Accounting policies 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. Accounting estimates and judgments Financial assets are subject to impairment assessment, which involves estimating expected credit losses. Refer to Other financial assets |
Information by segment and ma_2
Information by segment and main country (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 Diagnosis & Treatment 9,168 9,471 (559) 774 Connected Care 4,403 4,441 (514) 95 Personal Health 3,626 3,684 (132) 538 Other 629 596 (397) (89) Inter-segment eliminations (366) Philips Group 17,827 17,827 (1,602) 1,318 2021 Diagnosis & Treatment 8,635 8,846 (459) 1,071 Connected Care 4,573 4,617 (382) 497 Personal Health 3,429 3,462 (131) 590 Other 519 531 (350) (105) Inter-segment eliminations (299) Philips Group 17,156 17,156 (1,323) 2,054 2020 Diagnosis & Treatment 8,175 8,289 (536) 818 Connected Care 5,543 5,620 (414) 1,191 Personal Health 3,199 3,198 (145) 433 Other 396 481 (368) (165) Inter-segment eliminations (275) Philips Group 17,313 17,313 (1,462) 2,277 1) Includes impairments (excluding goodwill impairment); for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Information by segment and main country - Reconciliation from net income to Adjusted EBITA [Text Block] | Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR Philips Group Diagnosis & Treatment Connected Care Personal Health Other 2022 Net Income (1,605) Discontinued operations, net of income taxes (13) Income tax expense (113) Investments in associates, net of income taxes 2 Financial expenses 258 Financial income (58) Income from operations (1,529) 404 (2,246) 515 (202) Amortization and impairment of acquired intangible assets 363 143 199 15 7 Impairment of goodwill 1,357 27 1,331 EBITA 192 573 (716) 531 (196) Restructuring and acquisition-related charges 202 21 108 11 61 Other items: 925 180 703 (4) 46 Respironics field-action provision 250 250 Respironics field-action running remediation costs 210 210 R&D project impairments 134 120 12 3 Portfolio realignment charges 109 109 Impairment of assets in S&RC 39 39 Provision for public investigations tender irregularities 60 60 Provisions for quality actions in Connected Care 59 59 Remaining items 63 - 24 (6) 46 Adjusted EBITA 1,318 774 95 538 (89) Philips Group Reconciliation from net income to Adjusted EBITA 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 (722) 576 (242) Amortization and impairment of acquired intangible assets 322 153 148 15 6 Impairment of goodwill 15 2 13 EBITA 890 1,097 (562) 591 (236) Restructuring and acquisition-related charges 95 7 93 (1) (5) Other items: 1,069 (32) 965 - 136 Respironics field-action provision 719 - 719 - Respironics field-action running remediation costs 94 94 Provisions for quality actions in Connected Care 94 94 Loss on divestment of business 76 76 Remaining items 87 (32) 58 - 61 Adjusted EBITA 2,054 1,071 497 590 (105) Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR Philips Group Diagnosis & Treatment Connected Care Personal Health Other 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 1,264 497 704 362 (300) Amortization and impairment of intangible assets 377 209 134 16 18 Impairment of goodwill 144 - 144 EBITA 1,784 706 982 378 (282) Restructuring and acquisition-related charges 195 29 97 31 37 Other items 299 83 112 24 81 Adjusted EBITA 2,277 818 1,191 433 (165) |
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 2022 Netherlands 540 1,746 United States 7,246 12,087 China 2,193 290 Japan 1,077 436 Germany 821 323 United Kingdom 463 527 France 400 249 Other countries 5,085 744 Total main countries 17,827 16,402 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 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, 2022 | |
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 2020 2021 2022 Domestic Appliances 206 2,698 3 Other (10) 13 10 Discontinued operations, net of income taxes 196 2,711 13 |
Discontinued operations and assets classified as held for sale - Results of Domestic Appliances [Text Block] | Philips Group Results of Domestic Appliances in millions of EUR 2020 2021 2022 Sales 2,222 1,516 6 Costs and expenses (1,944) (1,322) (2) Income from operations 279 194 4 Result on the sale of discontinued operations 3,241 1 Income before tax 279 3,435 5 Income tax expense 1 (72) 6 (2) Income tax related the sale of discontinued operations (743) Results from discontinued operations 206 2,698 3 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 [Text Block] | Net cash provided by (used for) discontinued operations in millions of EUR 2020 2021 2022 Net cash provided by (used for) operating activities 129 85 (27) Net cash provided by (used for) investing activities 3,319 15 Net cash provided by (used for) discontinued operations 129 3,403 (12) |
Acquisitions and divestments (T
Acquisitions and divestments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions and divestments [Abstract] | |
Acquisitions and divestments - Opening balance sheet [Text Block] | Opening balance sheet in millions of EUR At acquisition date Vesper Medical Inc, Assets Intangible assets excluding goodwill 84 Deferred tax assets 15 Cash 7 Total Assets 106 Liabilities Accounts payable and other payables (1) Deferred tax liabilities (20) Total Liabilities (21) Total identifiable net assets at fair value 85 Goodwill arising on acquisition 177 Total purchase consideration 262 Of which: Purchase consideration transferred 227 Contingent consideration 34 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 77 17 Inventories 11 11 Receivables and other current assets 75 97 Cash 205 19 Total Assets 1,082 371 Liabilities Accounts payable and other payables (278) (98) Deferred tax liabilities (160) (46) Long-term liabilities (82) (11) Acquired provision for contingent considerations (16) Total Liabilities (536) (155) Total identifiable net assets at fair value 547 217 Goodwill arising on acquisition 1,790 322 Purchase consideration transferred 2,337 539 |
Interests in entities (Tables)
Interests in entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interests in entities [Abstract] | |
Interests in entities - Interests in group companies [Text Block] | Philips Group Interests in group companies in alphabetical order by country 2022 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips Medizin Systeme Böblingen GmbH Germany 1 Philips Japan, Ltd. Japan Philips Consumer Lifestyle B.V. Netherlands Philips Oral Healthcare B.V. Netherlands Philips Ultrasound LLC United States Philips North America LLC United States Philips USA Export Corporation United States 1) Application of Sec. 264 (3) and Sec. 264b HGB (German Commercial Code) for fully consolidated legal entities: Philips GmbH, Hamburg; Philips Medical Systems DMC GmbH, Hamburg; Respironics Deutschland GmbH & Co. KG, München; Philips Medizin Systeme Hofheim-Wallau GmbH, Hamburg; Philips Medizin Systeme Böblingen GmbH, Böblingen; TomTec Imaging Systems GmbH, Unterschleißheim; Forecare GmbH, Ratingen. |
Income from operations (Tables)
Income from operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2020 2021 2022 Sales 17,313 17,156 17,827 Costs of materials used (4,221) (4,142) (4,320) Employee benefit expenses (6,289) (6,246) (6,952) Depreciation and amortization 1 (1,462) (1,323) (1,602) Impairment of goodwill (144) (15) (1,357) Shipping and handling (554) (645) (756) Advertising and promotion (696) (752) (739) Lease expenses (34) (19) (39) Other operational costs (2,741) (3,524) (3,609) Other business income (expenses) 92 63 18 Income from operations 1,264 553 (1,529) 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations - Sales composition [Text Block] | Philips Group Sales composition in millions of EUR 2020 2021 2022 Goods 12,491 11,981 12,139 Services 4,058 4,374 4,878 Royalties 301 383 419 Total sales from contracts with customers 16,851 16,738 17,435 Sales from other sources 462 418 391 Total sales 17,313 17,156 17,827 |
Income from operations - Disaggregation of Sales per segment [Text Block] | Philips Group Disaggregation of Sales per segment in millions of EUR 2022 Sales at a Sales Total sales from Sales from Total Diagnosis & Treatment 5,565 3,547 9,112 56 9,168 Connected Care 2,803 1,266 4,068 335 4,403 Personal Health 3,615 11 3,626 3,626 Other 279 348 629 - 629 Philips Group 12,263 5,172 17,435 391 17,827 Philips Group Disaggregation of Sales per segment in millions of EUR 2021 Sales at a Sales Total sales from Sales from Total Diagnosis & Treatment 5,408 3,177 8,583 52 8,635 Connected Care 3,116 1,090 4,207 366 4,573 Personal Health 3,423 6 3,429 3,429 Other 194 323 518 - 519 Philips Group 12,142 4,596 16,738 418 17,156 Philips Group Disaggregation of Sales per segment in millions of EUR 2020 Sales at a Sales Total sales from Sales from Total Diagnosis & Treatment 5,133 2,997 8,129 46 8,175 Connected Care 4,183 943 5,126 417 5,543 Personal Health 3,195 4 3,199 3,199 Other 69 327 396 - 396 Philips Group 12,580 4,271 16,851 462 17,313 |
Income from operations - Disaggregation of Sales per geographical cluster [Text Block] | Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2022 Sales at a Sales Total sales from Sales from Total Western Europe 2,387 1,183 3,572 31 3,603 North America 4,889 2,612 7,502 86 7,588 Other mature geographies 972 399 1,369 274 1,643 Total mature geographies 8,248 4,194 12,443 390 12,833 Growth geographies 4,015 978 4,992 1 4,993 Sales 12,263 5,172 17,435 391 17,827 Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2021 Sales at a Sales Total sales from Sales from Total 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 Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2020 Sales at a Sales Total sales from Sales from Total 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 4,271 16,851 462 17,313 |
Income from operations - Employee benefit expenses [Text Block] | Philips Group Employee benefit expenses in millions of EUR 2020 2021 2022 Salaries and wages excluding share-based compensation 5,085 5,014 5,594 Share-based compensation 119 115 104 Post-employment benefit costs 418 396 439 Other social security and similar charges: Required by law 556 529 590 Voluntary 111 192 225 Employee benefit expenses 6,289 6,246 6,952 |
Income from operations - Employees by category [Text Block] | Philips Group Employees by category in FTEs 2020 2021 2022 Production 35,482 38,618 39,742 Research & development 10,812 10,751 11,690 Other 22,474 22,543 23,019 Employees 68,769 71,912 74,451 Third party workers 4,998 4,533 4,086 Philips Group 73,767 76,445 78,538 |
Income from operations - Employees by geographical location [Text Block] | Philips Group Employees by geographical location in FTEs 2020 2021 2022 Netherlands 11,146 11,142 11,180 Other countries 62,621 65,303 67,357 Philips Group 73,767 76,445 78,538 |
Income from operations - Depreciation and amortization [Text Block] | Philips Group Depreciation and amortization 1 in millions of EUR 2020 2021 2022 Depreciation of property, plant and equipment 691 630 711 Amortization of software 76 88 117 Amortization of other intangible assets 377 322 363 Amortization of development costs 319 284 411 Depreciation and amortization 1,462 1,323 1,602 1) Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations - Audit and audit-related fees [Text Block] | Philips Group Audit and audit-related fees in millions of EUR 2020 2021 2022 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 9.0 5.6 14.6 10.3 5.4 15.7 8.9 5.5 14.4 consolidated financial statements 9.0 2.9 11.9 10.3 2.7 13.0 8.9 3.0 11.9 statutory financial statements 2.7 2.7 2.7 2.7 2.5 2.5 Audit-related fees 2 2.2 0.5 2.7 0.6 0.3 0.9 0.7 0.2 0.9 divestment 1.5 0.2 1.7 sustainability assurance 0.5 0.5 0.5 0.5 0.6 0.6 other 0.2 0.3 0.5 0.1 0.3 0.4 0.1 0.2 0.3 Tax fees All other fees Fees 11.2 6.1 17.3 10.9 5.7 16.6 9.6 5.7 15.3 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 2020 2021 2022 Result on disposal of businesses: income - - 4 expenses - (75) - Result on disposal of fixed assets: income 2 24 3 expenses - (5) (1) Result on other remaining businesses: income 120 161 121 expenses (30) (43) (109) Other business income (expenses) 92 63 18 Total other business income 122 186 127 Total other business expenses (29) (123) (109) |
Financial income and expenses (
Financial income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2020 2021 2022 Interest income 13 18 25 Interest income from loans and receivables 8 7 7 Interest income from cash and cash equivalents 5 11 18 Dividend income from financial assets 3 2 3 Net gains from disposal of financial assets 2 - - Net change in fair value of financial assets through profit or loss 129 95 9 Other financial income 12 33 20 Financial income 158 149 58 Interest expense (173) (159) (235) Interest expense on debt and borrowings (130) (126) (200) Finance charges under lease contract (29) (25) (25) Interest expense on pensions (13) (8) (10) Provision-related accretion expenses (10) (5) (9) Net foreign exchange gains (losses) 4 - 9 Other financial expenses (23) (24) (24) Financial expenses (202) (188) (258) Financial income and expenses (44) (39) (200) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
Income taxes - Income tax expense [Text Block] | Philips Group Income tax expense in millions of EUR 2020 2021 2022 Income before taxes 1,211 509 (1,731) Investments in associates, net of income taxes (9) (4) (2) Income before taxes and Investment in associates 1,220 513 (1,729) Current tax (expense) benefit (380) (298) (97) Deferred tax (expense) benefit 167 401 210 Income tax (expense) of continuing operations (212) 103 113 |
Income taxes - Current income tax expense [Text Block] | Philips Group Current income tax expense in millions of EUR 2020 2021 2022 Current year tax (expense) benefit (390) (291) (111) Prior year tax (expense) benefit 10 (7) 14 Current tax (expense) benefit (380) (298) (97) |
Income taxes - Deferred income tax expense [Text Block] | Philips Group Deferred income tax expense In millions of EUR 2020 2021 2022 Recognition of previously unrecognized tax loss and credit carryforwards 6 138 2 Unrecognized tax loss and credit carryforwards (10) (13) Changes to recognition of temporary differences 19 (1) (4) Prior year tax (expense) benefit (8) 20 (1) Tax rate changes 12 10 (18) Origination and reversal of temporary differences, tax losses and tax credits 137 245 244 Deferred tax (expense) benefit 167 401 210 |
Income taxes - Effective income tax rate [Text Block] | Philips Group Effective income tax rate in % 2020 2021 2022 Weighted average statutory income tax rate in % 25.2 22.7 23.6 Recognition of previously unrecognized tax loss and credit carryforwards (0.5) (26.9) 0.1 Unrecognized tax loss and credit carryforwards 0.0 1.9 (0.7) Changes to recognition of temporary differences (1.6) 0.3 (0.2) Non-taxable income and tax incentives (12.9) (40.6) 5.8 Non-deductible expenses 7.0 19.3 (22.9) Withholding and other taxes 0.6 7.2 (1.4) Tax rate changes (1.0) (1.9) (1.0) Prior year tax (0.2) (2.4) 0.7 Tax expense (benefit) due to change in uncertain tax treatments 1.2 4.4 2.8 Others, net (0.2) (4.0) (0.2) Effective income tax rate 17.6 (20.0) 6.5 |
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, 2022 recognized in income statement other 1 Balance as of December 31, 2022 Assets Liabilities Intangible assets 587 63 (20) 630 783 (152) Property, plant and equipment 29 (33) 2 (2) 49 (52) Inventories 372 75 17 464 473 (8) Other assets 68 (16) (8) 44 98 (55) Pensions and other employee benefits 180 6 (32) 153 175 (22) Other liabilities 499 (34) 17 483 560 (77) Deferred tax assets on tax loss carryforwards 398 149 38 586 586 Set-off deferred tax positions (275) 275 Net deferred tax assets 2,134 210 14 2,358 2,449 (91) 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, 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. |
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, 2021 Unrecognized balance as of December 31, 2021 Total Balance as of December 31, 2022 Unrecognized balance as of December 31, 2022 Within 1 year 1,593 1,592 4 3 1 to 2 years 6 - 10 5 2 to 3 years 9 - 9 3 3 to 4 years 7 - 13 4 4 to 5 years 18 - 38 3 Later 751 21 812 93 Unlimited 1,567 934 2,301 920 Total 3,951 2,547 3,187 1,032 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2020 2021 2022 Income from continuing operations 999 612 (1,618) Income from continuing operations attributable to shareholders 991 608 (1,622) Income from continuing operations attributable to non-controlling interests 8 4 3 Income from discontinued operations 196 2,711 13 Income from discontinued operations attributable to shareholders 196 2,711 13 Net income 1,195 3,323 (1,605) Net income attributable to shareholders 1,187 3,319 (1,608) Net income attributable to non-controlling interests 8 4 3 Weighted average number of common shares outstanding (after deduction of treasury shares) during the period 907,721,150 904,271,675 881,615,862 Plus incremental shares from assumed conversions of: Share options 757,622 387,125 25,506 Performance shares 5,561,501 2,548,891 1,147,790 Restricted shares 2,584,728 2,376,736 1,986,538 Forward contracts to repurchase shares 70,329 17,611,920 Dilutive potential common shares 2 8,903,851 5,383,080 20,771,753 Diluted weighted average number of shares outstanding (after deduction of treasury shares) during the period 916,625,001 909,654,754 881,615,862 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 1.09 0.67 (1.84) Income from discontinued operations attributable to shareholders 0.22 3.00 0.02 Net income attributable to shareholders 1.31 3.67 (1.82) Diluted earnings per common share in EUR 2 Income from continuing operations attributable to shareholders 1.08 0.67 (1.84) Income from discontinued operations attributable to shareholders 0.21 2.98 0.02 Net income attributable to shareholders 1.29 3.65 (1.82) Dividend distributed per common share in EUR 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, 2022 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment - Useful lives of property, plant and equipment [Text Block] | Philips Group Useful lives of property, plant and equipment Buildings from 5 to 50 years Machinery and installations from 3 to 20 years Other equipment from 1 to 10 years |
Property, plant and equipment - Property, plant and equipment [Text Block] | Philips Group Property, plant and equipment in millions of EUR 2021 2022 Owned assets 1,641 1,718 Right-of-use assets 1,058 919 Total 2,699 2,638 |
Property, plant and equipment - Property, plant and equipment - owned assets [Text Block] | Philips Group Property, plant and equipment - owned assets in millions of EUR Land and Machinery and installations Other Assets under construction Total Balance as of January 1, 2022 Cost 1,097 1,585 1,382 208 4,273 Accumulated depreciation (591) (1,074) (967) (2,632) Book value 506 511 415 208 1,641 Additions 1 102 77 314 494 Assets available for use 34 69 111 (220) (6) Depreciation (56) (215) (176) - (447) Impairments (3) (20) (18) (1) (42) Transfer (to) from AHFS (3) - (3) Reclassifications 18 14 (5) 2 29 Translation differences and other 16 26 2 5 50 Total change 8 (23) (8) 100 78 Balance as of December 31, 2022 Cost 1,135 1,779 1,454 309 4,676 Accumulated depreciation (621) (1,291) (1,046) (2,958) Book value 514 488 408 309 1,718 Philips Group Property, plant and equipment - owned assets in millions of EUR Land and Machinery and installations Other Assets under construction Total Balance as of January 1, 2021 Cost 1,076 1,506 1,572 261 4,415 Accumulated depreciation (539) (1,028) (1,185) (2,752) Book value 537 478 387 261 1,663 Additions 9 62 77 261 409 Assets available for use 72 110 117 (305) (5) Acquisitions - 9 43 53 Depreciation (53) (144) (158) (355) Impairments (1) (6) (11) - (18) Transfer (to) from AHFS (87) (16) (46) (20) (170) Reclassifications 6 2 (10) 1 - Translation differences and other 23 14 16 10 65 Total change (31) 33 29 (53) (22) Balance as of December 31, 2021 Cost 1,097 1,585 1,382 208 4,273 Accumulated depreciation (591) (1,074) (967) (2,632) Book value 506 511 415 208 1,641 |
Property, plant and equipment - Property, plant and equipment - right-of-use assets [Text Block] | Philips Group Property, plant and equipment - right-of-use assets in millions of EUR Land and Machinery and installations Other Total Balance as of January 1, 2022 Cost 1,332 176 216 1,724 Accumulated depreciation (418) (139) (109) (666) Book value 914 37 107 1,058 Additions 52 - 54 106 Assets available for use 5 1 6 Depreciation (155) (2) (58) (214) Impairments (8) - - (9) Transfer (to) from AHFS 3 3 Reclassifications (19) (13) - (32) Translation differences and other 31 (23) (6) 1 Total change (92) (37) (9) (139) Balance as of December 31, 2022 Cost 1,365 - 206 1,571 Accumulated depreciation (543) (108) (651) Book value 822 - 98 919 Philips Group Property, plant and equipment - right-of-use assets in millions of EUR Land and Machinery and installations Other Assets under construction Total Balance as of January 1, 2021 Cost 1,147 199 213 1 1,560 Accumulated depreciation (310) (144) (86) (540) Book value 837 55 126 1 1,020 Additions 150 21 44 215 Assets available for use 2 3 5 Acquisitions 43 43 Depreciation (157) (32) (63) (252) Impairments 1 (5) - (4) Transfer (to) from AHFS (7) (1) (8) Reclassifications 2 (1) 1 Translation differences and other 44 (2) (4) 39 Total change 77 (18) (20) (1) 38 Balance as of December 31, 2021 Cost 1,332 176 216 1,724 Accumulated depreciation (418) (139) (109) (666) Book value 914 37 107 1,058 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill - Goodwill [Text Block] | Philips Group Goodwill in millions of EUR 2021 2022 Balance as of January 1 Cost 9,094 11,793 Impairments (1,080) (1,156) Book value 8,014 10,637 Acquisitions 2,095 317 Impairments (15) (1,357) Divestments and transfers to assets classified as held for sale (189) Translation differences and other 732 641 Total change 2,622 (399) Balance as of December 31 Cost 11,793 12,747 Impairments (1,156) (2,509) Book value 10,637 10,238 |
Goodwill - Key assumptions [Text Block] | Philips Group Key assumptions - Interim impairment testing compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Sleep & Respiratory Care 1.5% 4.3% 2.5% 9.5% 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 extrapolation period, after which no further growth is assumed for the terminal value calculation Philips Group Key assumptions 2022 compound sales growth rate 1 initial forecast period extrapolation period 2 used to calculate terminal value 3 pre-tax discount rates Ambulatory Monitoring & Diagnostics 15.4% 9.5% 2.5% 8.5% Hospital Patient Monitoring 4.8% 3.4% 2.5% 8.5% Image-Guided Therapy 8.7% 5.0% 2.5% 10.6% Sleep & Respiratory Care 10.0% 5.0% 2.5% 9.9% 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 extrapolation period, after which no further growth is assumed for the terminal value calculation 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 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 extrapolation period, after which no further growth is assumed for the terminal value calculation |
Goodwill - Goodwill allocated to the cash-generating units [Text Block] | Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2021 2022 Ambulatory Monitoring & Diagnostics 1,897 2,215 Hospital Patient Monitoring 1,663 1,806 Image-Guided Therapy 2,802 3,154 Sleep & Respiratory Care 2,031 731 Other (units carrying a non-significant goodwill balance) 2,245 2,332 Book value 10,637 10,238 |
Intangible assets excluding g_2
Intangible assets excluding goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets excluding goodwill [Abstract] | |
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 |
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, 2022 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 Additions (3) - 51 - 257 109 1 416 Assets available for use 118 (118) Acquisitions 1 3 177 - - 180 Amortization (24) (141) (140) (206) (1) (100) (3) (614) Impairments - (6) (46) (123) (81) (17) (2) (276) Translation differences and other 4 71 59 5 31 1 (2) 169 Total change (22) (74) 102 (206) 88 (7) (6) (125) Balance as of December 31, 2022 Cost 647 2,735 2,947 2,605 648 869 152 10,602 Amortization / impairments (507) (1,665) (1,845) (2,212) (146) (589) (113) (7,077) Book Value 140 1,070 1,102 393 502 280 39 3,526 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 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 change 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 |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 283 300 47 630 Changes: Acquisitions/additions 114 18 18 150 Sales/redemptions/reductions (75) (3) (8) (86) Impairments (3) (1) (5) Value adjustment through OCI - (35) (35) Value adjustment through P&L 5 - 5 Translation differences and other (2) 5 (1) 2 Reclassifications 1 (2) (1) (2) Balance as of December 31, 2022 322 284 54 660 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) - (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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories - Inventories [Text Block] | Philips Group Inventories in millions of EUR 2021 2022 Raw materials and supplies 1,143 1,541 Work in process 646 648 Finished goods 1,660 1,860 Inventories 3,450 4,049 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables - Trade accounts receivable, net [Text Block] | Philips Group Trade accounts receivable, net in millions of EUR 2021 2022 Diagnosis & Treatment 1,759 2,013 Connected Care 980 1,114 Personal Health 575 479 Other 245 226 Trade accounts receivable, net 3,559 3,832 |
Receivables - Aging analysis [Text Block] | Philips Group Aging analysis in millions of EUR 2021 2022 Current 3,075 3,280 Overdue 1-30 days 160 169 Overdue 31-180 days 245 282 Overdue more than 180 days 79 101 Trade accounts receivable, net 3,559 3,832 |
Receivables - Allowance for accounts receivable [Text Block] | Philips Group Allowance for accounts receivable in millions of EUR 2021 2022 Balance as of January 1 195 190 Additions charged to expense 4 66 Deductions from allowance 1 (17) (51) Transfer to assets held for sale (8) Other movements 16 21 Balance as of December 31 190 226 1) Write-offs for which an allowance was previously provided. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity - Outstanding number of shares [Text Block] | Philips Group Outstanding number of shares 2020 2021 2022 Balance as of January 1 890,973,790 905,128,293 870,182,445 Dividend distributed 18,080,198 6,345,968 14,174,568 Purchase of treasury shares (8,669,622) (45,486,392) (5,080,693) Delivery of treasury shares 4,695,170 4,194,577 2,204,207 Issuance of new shares 48,757 Balance as of December 31 905,128,293 870,182,445 881,480,527 |
Equity - Transactions related to share-based compensation plans [Text Block] | Philips Group Transactions related to share-based compensation plans 2020 2021 2022 Shares acquired 5,351,411 3,996,576 2,142,445 Average market price EUR 33.81 EUR 36.15 EUR 31.76 Amount paid EUR 181 million EUR 144 million EUR 68 million Shares delivered 4,695,170 4,194,577 2,204,207 Average price (FIFO) EUR 34.35 EUR 34.14 EUR 35.16 Cost of delivered shares EUR 161 million EUR 143 million EUR 77 million Total shares in treasury at year-end 5,924,708 5,726,708 5,664,946 Total cost EUR 199 million EUR 201 million EUR 191 million |
Equity - Transactions related to capital reduction [Text Block] | Philips Group Transactions related to capital reduction 2020 2021 2022 Shares acquired 3,318,211 41,489,816 2,938,248 Average market price EUR 39.21 EUR 36.22 EUR 36.61 Amount paid EUR 130 million EUR 1,503 million EUR 108 million Cancellation of treasury shares (shares) 3,809,675 33,500,000 8,758,455 Cancellation of treasury shares (EUR) EUR 152 million EUR 1,216 million EUR 299 million Total shares in treasury at year-end 7,989,816 2,169,609 Total cost EUR 287 million EUR 83 million |
Equity - Composition of net debt and group equity [Text Block] | Philips Group Composition of net debt and group equity in millions of EUR unless otherwise stated 2020 2021 2022 Long-term debt 5,705 6,473 7,270 Short-term debt 1,229 506 931 Total debt 6,934 6,980 8,201 Cash and cash equivalents 3,226 2,303 1,172 Net debt 3,708 4,676 7,028 Shareholders' equity 11,870 14,438 13,249 Non-controlling interests 31 36 34 Group equity 11,901 14,475 13,283 Net debt and group equity ratio 24:76 24:76 35:65 |
Equity - Adjusted income from continuing operations attributable to shareholders [Text Block] | Philips Group Adjusted income from continuing operations attributable to shareholders 1 2020 2021 2022 Net income 1,195 3,323 (1,605) Discontinued operations, net of income taxes (196) (2,711) (13) Income from continuing operations 999 612 (1,618) Income from continuing operations attributable to non-controlling interests (8) (4) (3) Income from continuing operations attributable to shareholders 1 991 608 (1,622) Adjustments for: Amortization and impairment of acquired intangible assets 377 322 363 Impairment of goodwill 144 15 1,357 Restructuring costs and acquisition-related charges 195 95 202 Other items: 299 1,069 925 Respironics field-action provision 719 250 Respironics field-action running remediation cost 94 210 R&D project impairments 134 Portfolio realignment charges 109 Impairment of assets in S&RC 39 Provision for public investigations tender irregularities 60 Provisions for quality actions in Connected Care 94 59 Loss on divestment of business 76 Remaining items 299 87 63 Net finance income/expenses (125) (84) (4) Tax impact of adjusted items and tax only adjusting items (285) (527) (376) Adjusted Income from continuing operations attributable to shareholders 1 1,594 1,497 845 1) Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
Debt - Long-term debt [Text Block] | Philips Group Long-term debt in millions of EUR unless otherwise stated 2022 amount outstanding 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 1,378 1,378 250 1,128 14.3 6.3% EUR bonds 4,061 4,061 1,836 2,225 5.7 1.7% Forward contracts 858 606 252 252 1.0 Lease liabilities 1,082 230 852 504 348 3.9 2.4% Bank borrowings 705 2 702 702 1.9 1.7% Other long-term debt 28 4 24 17 6 8.9 2.9% Long-term debt 8,111 842 7,270 3,562 3,706 6.1 2.4% Philips Group Long-term debt in millions of EUR unless otherwise stated 2021 amount outstanding 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 liabilities 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% |
Debt - Unsecured Bonds [Text Block] | Philips Group Unsecured Bonds in millions of EUR unless otherwise stated effective rate 2021 2022 Unsecured EUR Bonds Due 06/09/2023; 1/2% 0.634% 500 Due 02/05/2024; 3/4% 0.861% 500 Due 22/05/2026; 1/2% 0.608% 750 750 Due 02/05/2028; 1 3/8% 1.523% 500 500 Due 30/03/2025; 1 3/8% 1.509% 500 346 Due 30/03/2030; 2% 2.128% 500 500 Due 05/05/2027; 1 7/8% 2.049% 750 Due 05/11/2029; 2 1/8% 2.441% 650 Due 05/05/2033; 2 5/8% 2.710% 600 Unsecured USD Bonds Due 15/05/2025; 7 3/4% 7.429% 56 51 Due 01/06/2026; 7 1/5% 6.885% 120 119 Due 15/05/2025; 7 1/8% 6.794% 74 78 Due 11/03/2038; 6 7/8% 7.210% 641 683 Due 15/03/2042; 5% 5.273% 441 470 Adjustments 1 (37) (57) Unsecured Bonds 4,545 5,439 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 2021 2022 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 280 22 257 251 21 230 Between one and five years 636 56 580 554 49 505 More than five years 417 34 383 376 28 348 Lease liabilities 1,333 113 1,220 1,180 98 1,082 |
Debt - Short-term debt [Text Block] | Philips Group Short-term debt in millions of EUR 2021 2022 Short-term bank borrowings 47 89 Current portion of long-term debt 459 842 Short-term debt 506 931 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [Abstract] | |
Provisions - Provisions [Text Block] | Philips Group Provisions in millions of EUR 2021 2022 long-term short-term total long-term short-term total Post-employment benefits 1 659 659 546 546 Respironics field-action provision 52 525 577 23 366 390 Product warranty provisions 32 207 238 57 287 344 Environmental provisions 99 26 124 83 20 104 Restructuring-related provisions 8 58 66 6 134 140 Legal provisions 53 39 91 14 74 89 Contingent consideration provisions 156 52 208 89 23 113 Other provisions 257 92 349 279 112 390 Provisions 1,315 998 2,313 1,097 1,018 2,115 1) For more details refer to Post-employment benefits |
Provisions - Respironics field-action provision [Text Block] | Philips Group Respironics field-action provision in millions of EUR 2021 2022 Balance as of January 1 - 577 Additions 719 250 Utilizations (175) (486) Translation differences 33 49 Balance as of December 31 577 390 |
Provisions - Main assumptions [Text Block] | Philips Group Main assumptions in millions of EUR unless otherwise stated Increase (decrease) in provision Assumption Increase individual assumption by 10% Decrease individual assumption by 10% Total quantity of devices remaining 26 (26) Replacement share 12 (12) |
Provisions - Provisions for assurance-type product warranty [Text Block] | Philips Group Provisions for assurance-type product warranty in millions of EUR 2021 2022 Balance as of January 1 167 238 Additions 364 320 Utilizations (265) (224) Transfer to liabilities associated with assets held for sale (37) Translation differences and other 10 9 Balance as of December 31 238 344 |
Provisions - Environmental provisions [Text Block] | Philips Group Environmental provisions in millions of EUR 2021 2022 Balance as of January 1 183 124 Additions 18 15 Utilizations (15) (17) Releases (64) (2) Changes in discount rate (10) (27) Accretion 3 4 Translation differences and other 9 7 Balance as of December 31 124 104 |
Provisions - Restructuring-related provisions [Text Block] | Philips Group Restructuring-related provisions in millions of EUR January 1, 2022 additions utilizations releases other changes December 31, 2022 Diagnosis & Treatment 26 58 (27) (8) 0 49 Connected Care 17 34 (13) (3) (1) 34 Personal Health 9 9 (7) (2) 0 10 Other 14 52 (14) (5) 0 47 Philips Group 66 154 (61) (18) (1) 140 Philips Group Restructuring-related provisions in millions of EUR January 1, 2021 additions utilizations releases other changes December 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 - Legal provisions [Text Block] | Philips Group Legal provisions in millions of EUR 2021 2022 Balance as of January 1 72 91 Additions 43 89 Acquisitions 38 4 Utilizations (17) (100) Releases (48) (3) Accretion 1 - Translation differences and other 3 7 Balance as of December 31 91 89 |
Provisions - Contingent consideration provisions [Text Block] | Philips Group Contingent consideration provisions in millions of EUR 2021 2022 Balance as of January 1 318 208 Acquisitions 16 96 Utilizations (48) (105) Fair value changes (78) (86) Balance as of December 31 208 113 |
Provisions - Other provisions [Text Block] | Philips Group Other provisions in millions of EUR 2021 2022 Balance as of January 1 372 349 Additions 89 160 Utilizations (87) (95) Releases (29) (35) Accretion (5) (3) Translation differences and other 9 14 Balance as of December 31 349 390 |
Post-employment benefits (Table
Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2021 2022 2021 2022 2021 2022 2021 2022 Present value of funded DBO (606) (489) (558) (440) (206) (179) (1,370) (1,108) Present value of unfunded DBO (316) (249) (149) (128) (135) (136) (600) (513) Total present value of DBO (921) (738) (708) (568) (341) (315) (1,970) (1,621) Fair value of plan assets 572 477 623 474 185 171 1,380 1,122 Net position (349) (261) (84) (94) (157) (144) (590) (499) Value of reimbursement rights 6 6 |
Post-employment benefits - Classification net position [Text Block] | Philips Group Classification net position in millions of EUR Germany United States Other Countries Total 2021 2022 2021 2022 2021 2022 2021 2022 Total asset for plans in a surplus 3 9 65 34 1 4 69 46 Total liability for plans in a deficit (352) (270) (149) (128) (157) (148) (659) (546) Provisions for post-employment benefit plans under AHFS Net position (349) (261) (84) (94) (157) (144) (590) (499) |
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 2020 2021 2022 Defined benefit plans 74 36 50 - included in income from operations 59 28 39 - included in financial expense 13 8 10 - included in Discontinued operations 1 1 Defined contribution plans 366 375 400 - included in income from operations 358 368 400 - included in Discontinued operations 8 7 Post-employment benefits costs 440 411 449 |
Post-employment benefits - Defined benefit obligations [Text Block] | Philips Group Defined benefit obligations in millions of EUR 2021 2022 Balance as of January 1 2,153 1,970 Service cost 36 32 Interest cost 33 36 Employee contributions 7 4 Actuarial (gains) / losses - demographic assumptions 3 2 - financial assumptions (86) (366) - experience adjustment (6) 12 (Negative) past service cost (5) 16 Settlements (90) Benefits paid from plan (95) (95) Benefits paid directly by employer (33) (41) Translation differences and other 52 52 Balance as of December 31 1,970 1,621 |
Post-employment benefits - Plan assets [Text Block] | Philips Group Plan assets in millions of EUR 2021 2022 Balance as of January 1 1,403 1,380 Interest income on plan assets 25 26 Admin expenses paid (1) (1) Return on plan assets excluding interest income 44 (254) Employee contributions 7 4 Employer contributions 33 17 Settlements (86) 0 Benefits paid from plan (96) (95) Translation differences and other 50 45 Balance as of December 31 1,380 1,122 |
Post-employment benefits - Plan assets allocation [Text Block] | Philips Group Plan assets allocation in millions of EUR 2021 2022 Assets quoted in active markets - Debt securities 790 560 - Equity securities - Other 195 203 Assets not quoted in active markets - Debt securities 1 - Equity securities 122 101 - Other 272 258 Total assets 1,380 1,122 |
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 2021 2022 2021 2022 2021 2022 2021 2022 Discount rate 1.1% 4.1% 2.6% 5.2% 2.1% 4.9% 1.8% 4.7% Inflation rate 1.8% 2.0% 2.2% 2.3% 2.0% 2.6% 2.0% 2.2% Salary increase 2.5% 2.8% 0.0% 0.0% 2.9% 3.3% 2.6% 2.9% |
Post-employment benefits - Sensitivity of key assumptions [Text Block] | Philips Group Sensitivity of key assumptions in millions of EUR 2021 2022 Increase Discount rate (1% movement) (196) (122) Pension increase (1% movement) 99 57 Salary increase (1% movement) 19 12 Longevity 1 48 32 Decrease Discount rate (1% movement) 241 145 Pension increase (1% movement) (83) (49) Salary increase (1% movement) (18) (11) 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, 2022 | |
Accrued liabilities [Abstract] | |
Accrued liabilities - Accrued liabilities [Text Block] | Philips Group Accrued liabilities in millions of EUR 2021 2022 Personnel-related costs: - Salaries and wages 566 490 - Accrued holiday entitlements 127 97 - Other personnel-related costs 108 101 Fixed-asset-related costs: - Gas, water, electricity, rent and other 33 46 Communication and IT costs 82 64 Distribution costs 122 110 Sales-related costs: - Commission payable 7 8 - Advertising and marketing-related costs 175 127 - Other sales-related costs 20 20 Material-related costs 130 132 Interest-related accruals 52 71 Other accrued liabilities 362 361 Accrued liabilities 1,784 1,626 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other liabilities [Abstract] | |
Other liabilities - Other current liabilities [Text Block] | Philips Group Other current liabilities in millions of EUR 2021 2022 Accrued customer rebates 280 213 Other taxes including social security premiums 190 115 Other liabilities 116 120 Other current liabilities 587 448 |
Cash flow statement supplemen_2
Cash flow statement supplementary information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Cash flow Currency effects and consolidation changes Other 1 Balance as of December 31, 2022 Long term debt 2 6,933 1,045 107 27 8,111 EUR bonds 3,233 827 4,061 USD bonds 1,313 (20) 85 1,378 Leases 1,220 (260) 17 105 1,082 Forward contracts 3 934 (76) 858 Bank borrowings 203 498 4 705 Other long-term debt 30 (1) 1 (1) 28 Short term debt 2 47 47 (6) 1 89 Short-term bank borrowings 47 47 (6) 1 89 Other short-term loans Forward contracts 3 Equity (1,410) (593) 869 (1,133) Dividend payable (418) 418 Forward contracts 3 (934) 76 (858) Treasury shares (476) (174) 375 (275) Total 500 1) Besides non-cash, other includes interest paid on leases, which is part of cash flows from operating activities 2) In this table, current portion of long-term debt is included in long-term debt (and excluded from short-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 Cash flow Currency effects and consolidation changes Other 1 Balance as of Long term debt 2 6,857 (226) 200 101 6,933 EUR bonds 3,229 4 3,233 USD bonds 1,210 103 1,313 Leases 1,216 (239) 98 145 1,220 Forward contracts 3 982 (48) 934 Bank borrowings 205 (1) 203 Other long-term debt 16 14 30 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 finance leases, which is part of cash flows from operating activities 2) In this table, current portion of long-term debt is included in long-term debt (and excluded from short-term debt). 3) The forward contracts are related to the share buyback program and LTI plans |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related-party transactions [Abstract] | |
Related-party transactions - Related-party transactions [Text Block] | Philips Group Related-party transactions in millions of EUR 2020 2021 2022 Sales of goods and services 204 116 111 Purchases of goods and services 57 41 46 Receivables from related parties 37 40 55 Payables to related parties 1 2 2 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based compensation [Abstract] | |
Share-based compensation - Performance shares [Text Block] | Philips Group Performance shares 2021 2022 shares weighted average grant-date fair value shares weighted average grant-date fair value EUR-denominated Outstanding as of January 1 3,545,312 41.31 3,097,713 45.28 Granted 1,121,001 50.73 2,323,435 20.55 Notional dividends 1 62,872 45.22 155,067 33.91 Vested/Issued (1,466,223) 39.18 (434,329) 40.90 Forfeited (272,873) 45.90 (233,556) 38.67 Adjusted quantity 2 107,624 37.67 (522,493) 40.48 Outstanding as of December 31 3,097,713 45.28 4,385,837 33.13 USD-denominated Outstanding as of January 1 2,412,767 47.10 2,005,000 51.48 Granted 693,918 61.32 1,530,585 21.93 Notional dividends 1 41,324 51.42 98,883 37.15 Vested/Issued (947,772) 47.48 (248,848) 45.23 Forfeited (268,500) 51.29 (309,570) 44.04 Adjusted quantity 2 73,264 50.06 (326,066) 45.26 Outstanding as of December 31 2,005,000 51.48 2,749,983 36.66 1) Dividend declared in 2022 on outstanding shares. 2) Adjusted quantity includes the adjustments made to Performance shares outstanding due to updates on the actual TSR and EPS. |
Share-based compensation - Restricted shares [Text Block] | Philips Group Restricted shares 2021 2022 shares weighted average grant-date fair value shares weighted average grant-date fair value EUR-denominated Outstanding as of January 1 1,813,385 36.20 1,618,488 39.93 Granted 631,347 44.41 1,349,003 22.03 Notional dividends 1 33,430 39.69 81,500 35.67 Vested/Issued (671,703) 33.96 (540,930) 35.82 Forfeited (187,648) 40.19 (186,811) 35.06 Cancelled (323) 35.72 Outstanding as of December 31 1,618,488 39.93 2,321,250 30.73 USD-denominated Outstanding as of January 1 1,649,847 41.14 1,611,021 46.26 Granted 721,469 53.42 1,463,855 23.60 Notional dividends 1 30,551 44.99 83,151 39.37 Vested/Issued (584,833) 40.64 (541,336) 41.48 Forfeited (206,013) 46.09 (271,427) 38.51 Outstanding as of December 31 1,611,021 46.26 2,345,263 33.87 1) Dividend declared in 2022 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 as of January 1, 2022 239,077 14.93 Exercised (226,177) 14.91 Expired (12,150) 14.82 Outstanding as of December 31, 2022 750 22.43 Exercisable as of December 31, 2022 750 22.43 |
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 as of January 1, 2022 150,165 19.75 Exercised (136,665) 19.53 Expired (11,550) 20.62 Outstanding as of December 31, 2022 1,950 30.27 Exercisable as of December 31, 2022 1,950 30.27 |
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 15-20 20-25 750 0.1 Outstanding options 750 0.1 USD-denominated 15-20 20-25 25-30 30-35 1,950 0.1 Outstanding options 1,950 0.1 |
Share-based compensation - Accelerate! options [Text Block] | Philips Group Accelerate! options options weighted average exercise price EUR-denominated Outstanding as of January 1, 2022 136,975 18.13 Exercised (81,975) 15.24 Outstanding as of December 31, 2022 55,000 22.43 Exercisable as of December 31, 2022 55,000 22.43 USD-denominated Outstanding as of January 1, 2022 17,500 20.02 Exercised (17,500) 20.02 Outstanding as of December 31, 2022 Exercisable as of December 31, 2022 |
Information on remuneration (Ta
Information on remuneration (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2020 2021 2022 Base salary/Base compensation 9,299,794 9,598,588 9,528,279 Annual incentive 2 6,726,768 5,250,408 208,370 Performance shares 3 13,153,975 12,610,073 11,242,581 Restricted share rights 3 288,372 1,380,644 1,191,529 Pension allowances 4 2,054,570 2,107,953 1,949,204 Pension scheme costs 382,513 306,694 288,179 Other compensation 5 1,264,908 2,104,044 1,216,163 Total 33,170,901 33,358,405 25,624,305 1) The Executive Committee consisted of 13 members as per December 31, 2022 (2021: 13 members; 2020: 15 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) Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 5) 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 2022 R. Jakobs 4 256,438 112,737 - 57,973 6,012 11,507 444,667 F.A. van Houten 4 1,041,849 208,370 2,930,068 - 444,051 22,121 42,533 4,688,992 A. Bhattacharya 806,250 - 763,140 - 237,250 28,133 61,308 1,896,081 M.J. van Ginneken 626,250 - 585,490 - 141,622 28,133 35,343 1,416,837 2,730,788 208,370 4,391,434 - 880,896 84,398 150,691 8,446,577 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 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. 4) As per October 15, 2022, Roy Jakobs was appointed as CEO of the company. The table includes actual costs incurred in respect of the remuneration received by Mr Van Houten and Mr Jakobs, respectively, as CEO. |
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, 2022 accumulated annual pension as of December 31, 2022 total pension related costs R. Jakobs 48 53,175 63,985 A. Bhattacharya 61 37,446 265,383 M.J. van Ginneken 49 50,614 169,755 Pension costs 499,123 |
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 2022 F. Sijbesma 155,000 35,000 16,345 206,345 P.A.M. Stoffels 115,000 35,000 27,269 177,269 N. Dhawan 35,616 6,411 5,808 47,836 D.E.I. Pyott 100,000 35,000 17,269 152,269 A.M. Harrison 100,000 14,000 12,269 126,269 M.E. Doherty 100,000 27,000 24,769 151,769 P. Löscher 100,000 32,000 24,769 156,769 I. Nooyi 100,000 14,000 17,269 131,269 S.K. Chua 100,000 18,000 22,269 140,269 H. Verhagen 100,000 14,000 7,269 121,269 S. Poonen 100,000 18,000 17,269 135,269 1,105,616 248,411 192,574 1,546,602 2021 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 P.A.M. Stoffels 109,863 27,808 4,769 142,440 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 F. Sijbesma 141,301 27,808 8,237 177,346 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 P. Löscher 66,667 21,333 1,513 89,513 F. Sijbesma 76,667 9,333 1,513 87,513 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 1,013,333 236,000 65,254 1,314,587 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, 2021 December 31, 2022 R. Jakobs 101,156 109,422 A. Bhattacharya 148,365 169,517 M.J. van Ginneken 110,528 123,914 P. Stoffels - 17,000 S. Poonen - 3,000 I. Nooyi - 3,100 D. Pyott - 19,000 S.K. Chua - 2,000 F. Sijbesma - 12,500 M. Harrison - 1,500 P. Löscher - 20,732 1) Reference date for board membership is December 31, 2022. 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, 2022 | |
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 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 December 31, 2022 Financial assets Carried at fair value: Debt instruments 232 232 232 Equity instruments 4 4 1 2 Other financial assets 86 86 35 51 Financial assets carried at FVTP&L 322 322 1 35 285 Debt instruments 25 25 25 Equity instruments 259 259 30 229 Current financial assets 9 9 9 Receivables - current 26 26 26 Financial assets carried at FVTOCI 319 319 30 25 264 Derivative financial instruments 127 127 127 Financial assets carried at fair value 768 768 32 187 549 Carried at (amortized) cost: Cash and cash equivalents 1,172 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 54 Receivables - current 4,088 Receivables - non-current 279 Financial assets carried at (amortized) cost 5,596 Total financial assets 6,364 Financial liabilities Carried at fair value: Contingent consideration (113) (113) (113) Financial liabilities carried at FVTP&L (113) (113) (113) Derivative financial instruments (211) (211) (211) Financial liabilities carried at fair value (324) (324) (211) (113) Carried at (amortized) cost: Accounts payable (1,968) Interest accrual (71) Debt (Corporate bonds and leases) (6,520) (6,083) (5,001) (1,082) Debt (excluding corporate bonds and leases) (1,680) Financial liabilities carried at (amortized) cost (10,240) Total financial liabilities (10,564) 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 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 December 31, 2021 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 FVTP&L 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. |
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, 2022 523 208 Acquisitions 96 Purchase 131 Sales (76) Utilizations (105) Recognized in profit and loss: other business income (85) financial income and expenses 1 7 (8) Recognized in other comprehensive income 2 8 Receivables held to collect and sell (41) Reclassification 5 Balance as of December 31, 2022 549 113 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, 2021 411 318 Acquisitions 16 Purchase 113 Sales (122) Utilizations (48) Recognized in profit and loss: other business income (87) financial income and expenses 98 1 Recognized in other comprehensive income 1 12 9 Receivables held to collect and sell (25) Reclassification from associates 36 Balance as of December 31, 2021 523 208 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 2021 2022 Derivatives Gross amounts of recognized financial assets 63 127 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 63 127 Related amounts not offset in the balance sheet Financial instruments (47) (54) Net amount 17 73 |
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 2021 2022 Derivatives Gross amounts of recognized financial liabilities (202) (211) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (202) (211) Related amounts not offset in the balance sheet Financial instruments 47 54 Net amount (155) (157) |
Details of treasury and other_2
Details of treasury and other financial risks (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 8,168 842 1,760 1,809 3,757 Short-term debt 89 89 Interest on debt 1,683 159 304 264 956 Derivative liabilities 210 208 2 Purchase obligations 3 782 336 412 21 12 Trade and other payables 1,968 1,968 Contractual cash obligations 12,901 3,603 2,478 2,094 4,725 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) 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 - Remaining minimum payments under sale-and-leaseback arrangements [Text Block] | Philips Group Remaining minimum payments under sale-and-leaseback arrangements in millions of EUR 2023 55 2024 38 2025 23 2026 14 2027 5 Thereafter 18 |
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, 2022 Exposure currency USD 1,754 (1,530) (979) 936 JPY 479 (289) (9) 9 GBP 303 (188) (7) 7 CNY 346 (259) (80) 79 CAD 203 (138) PLN 65 (62) AUD 139 (92) (1) 1 CHF 132 (56) (3) 2 CZK 48 (50) SEK 55 (17) (1) 1 RUB 192 (192) (129) 129 Others 64 (46) (259) 162 Total 2022 3,779 (2,920) (1,468) 1,326 Total 2021 5,131 (3,363) (1,559) 1,322 |
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 2021 2022 USD 78 68 JPY 13 15 GBP 14 16 CHF 5 4 PLN 3 2 RUB 10 0 |
Details of treasury and other financial risks - Net debt and interest rate sensitivity [Text Block] | Philips Group Net debt 1 in millions of EUR 2021 2022 Impact 1% 2 3 (297) (274) Impact 1% 2 3 298 274 Impact 1% 4 20 4 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, 2022, 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) as of December 31, 2022. |
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 0 0 A+ rated bank counterparties 3 1 0 A rated bank counterparties 0 1 0 A- rated bank counterparties 1 1 0 5 3 0 |
Information by segment and ma_3
Information by segment and main country - Text Details (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Information by segment and main country [Abstract] | |
Share of sales for single customer | 10% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Information by segment and main country [Line Items] | ||||||
Revenue | € 17,827 | € 17,156 | € 17,313 | |||
Sales including intercompany | 17,827 | 17,156 | 17,313 | |||
Depreciation and amortisation expense | 1,602 | [1] | 1,323 | [2] | 1,462 | [1] |
Adjusted EBITA | 1,318 | 2,054 | 2,277 | |||
Diagnosis & Treatment [Member] | ||||||
Information by segment and main country [Line Items] | ||||||
Revenue | 9,168 | 8,635 | 8,175 | |||
Sales including intercompany | 9,471 | 8,846 | 8,289 | |||
Depreciation and amortisation expense | 559 | 459 | 536 | |||
Adjusted EBITA | 774 | 1,071 | 818 | |||
Connected Care [Member] | ||||||
Information by segment and main country [Line Items] | ||||||
Revenue | 4,403 | 4,573 | 5,543 | |||
Sales including intercompany | 4,441 | 4,617 | 5,620 | |||
Depreciation and amortisation expense | 514 | 382 | 414 | |||
Adjusted EBITA | 95 | 497 | 1,191 | |||
Personal Health [Member] | ||||||
Information by segment and main country [Line Items] | ||||||
Revenue | 3,626 | 3,429 | 3,199 | |||
Sales including intercompany | 3,684 | 3,462 | 3,198 | |||
Depreciation and amortisation expense | 132 | 131 | 145 | |||
Adjusted EBITA | 538 | 590 | 433 | |||
Other [Member] | ||||||
Information by segment and main country [Line Items] | ||||||
Revenue | 629 | 519 | 396 | |||
Sales including intercompany | 596 | 531 | 481 | |||
Depreciation and amortisation expense | 397 | 350 | 368 | |||
Adjusted EBITA | (89) | (105) | (165) | |||
Intersector Eliminations [member] | ||||||
Information by segment and main country [Line Items] | ||||||
Sales including intercompany | € (366) | € (299) | € (275) | |||
[1] Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) | € (1,605) | [1] | € 3,323 | [2] | € 1,195 | [2] | |
Profit (loss) from discontinued operations | 13 | [2] | 2,711 | [2] | 196 | [1] | |
Tax expense (income) | (113) | (103) | 212 | ||||
Share of profit (loss) of associates and joint ventures accounted for using equity method | (2) | (4) | (9) | ||||
Finance costs | 258 | 188 | 202 | ||||
Finance income | 58 | 149 | 158 | ||||
Profit (loss) from operating activities | (1,529) | 553 | 1,264 | ||||
Amortization of acquired intangible assets | [2] | 363 | 322 | 377 | |||
Impairment loss recognised in profit or loss, goodwill | [2] | 1,357 | 15 | 144 | |||
Earnings before interest, taxes and amortization | 192 | 890 | 1,784 | ||||
Restructuring and acquisition-related charges | [2] | 202 | 95 | 195 | |||
Other items | [2] | 925 | 1,069 | 299 | |||
Adjusted EBITA | 1,318 | 2,054 | 2,277 | ||||
Respironics field-action provision [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 250 | 719 | ||||
Respironics field-action running remediation costs [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 210 | 94 | ||||
R&D project impairments [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 134 | |||||
Portfolio realignment charges [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 109 | |||||
Impairment of assets in S&RC [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 39 | |||||
Provision for public investigations tender irregularities [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 60 | |||||
Provisions for quality actions in Connected Care [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 59 | 94 | ||||
Remaining items [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 63 | 87 | 299 | |||
Loss on divestment of business [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | [2] | 76 | |||||
Diagnosis & Treatment [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | 404 | 941 | 497 | ||||
Amortization of acquired intangible assets | 143 | 153 | 209 | ||||
Impairment loss recognised in profit or loss, goodwill | 27 | 2 | 0 | ||||
Earnings before interest, taxes and amortization | 573 | 1,097 | 706 | ||||
Restructuring and acquisition-related charges | 21 | 7 | 29 | ||||
Other items | 180 | (32) | 83 | ||||
Adjusted EBITA | 774 | 1,071 | 818 | ||||
Diagnosis & Treatment [Member] | Respironics field-action provision [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 0 | ||||||
Diagnosis & Treatment [Member] | R&D project impairments [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 120 | ||||||
Diagnosis & Treatment [Member] | Provision for public investigations tender irregularities [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 60 | ||||||
Diagnosis & Treatment [Member] | Remaining items [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 0 | (32) | |||||
Connected Care [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | (2,246) | (722) | 704 | ||||
Amortization of acquired intangible assets | 199 | 148 | 134 | ||||
Impairment loss recognised in profit or loss, goodwill | 1,331 | 13 | 144 | ||||
Earnings before interest, taxes and amortization | (716) | (562) | 982 | ||||
Restructuring and acquisition-related charges | 108 | 93 | 97 | ||||
Other items | 703 | 965 | 112 | ||||
Adjusted EBITA | 95 | 497 | 1,191 | ||||
Connected Care [Member] | Respironics field-action provision [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 250 | 719 | |||||
Connected Care [Member] | Respironics field-action running remediation costs [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 210 | 94 | |||||
Connected Care [Member] | R&D project impairments [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 12 | ||||||
Connected Care [Member] | Portfolio realignment charges [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 109 | ||||||
Connected Care [Member] | Impairment of assets in S&RC [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 39 | ||||||
Connected Care [Member] | Provisions for quality actions in Connected Care [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 59 | 94 | |||||
Connected Care [Member] | Remaining items [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 24 | 58 | |||||
Personal Health [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | 515 | 576 | 362 | ||||
Amortization of acquired intangible assets | 15 | 15 | 16 | ||||
Earnings before interest, taxes and amortization | 531 | 591 | 378 | ||||
Restructuring and acquisition-related charges | 11 | (1) | 31 | ||||
Other items | (4) | 0 | 24 | ||||
Adjusted EBITA | 538 | 590 | 433 | ||||
Personal Health [Member] | R&D project impairments [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 3 | ||||||
Personal Health [Member] | Remaining items [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | (6) | 0 | |||||
Other [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Profit (loss) from operating activities | (202) | (242) | (300) | ||||
Amortization of acquired intangible assets | 7 | 6 | 18 | ||||
Earnings before interest, taxes and amortization | (196) | (236) | (282) | ||||
Restructuring and acquisition-related charges | 61 | (5) | 37 | ||||
Other items | 46 | 136 | 81 | ||||
Adjusted EBITA | (89) | (105) | € (165) | ||||
Other [Member] | Respironics field-action provision [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | 0 | ||||||
Other [Member] | Remaining items [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | € 46 | 61 | |||||
Other [Member] | Loss on divestment of business [Member] | |||||||
Information by segment and main country [Line Items] | |||||||
Other items | € 76 | ||||||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Information by segment and ma_6
Information by segment and main country - Main countries (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Information by segment and main country [Line Items] | |||
Revenue | € 17,827 | € 17,156 | € 17,313 |
Netherlands [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 540 | 570 | 404 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 1,746 | 1,934 | 1,926 |
United States of America [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 7,246 | 6,420 | 6,580 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 12,087 | 12,615 | 9,080 |
China [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 2,193 | 2,335 | 2,319 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 290 | 283 | 313 |
Japan [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 1,077 | 1,073 | 1,113 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 436 | 480 | 511 |
Germany [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 821 | 839 | 980 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 323 | 305 | 302 |
United Kingdom of Great Britain and Northern Ireland [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 463 | 481 | 509 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 527 | 567 | 545 |
France [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 400 | 397 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 249 | 49 | |
Other countries [Member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 5,085 | 5,040 | 5,024 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | 744 | 753 | 906 |
Foreign countries [member] | |||
Information by segment and main country [Line Items] | |||
Revenue | 17,827 | 17,156 | 17,313 |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts | € 16,402 | € 16,986 | 13,694 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Profit (loss) from discontinued operations | € 13 | [1] | € 2,711 | [1] | € 196 | [2] |
Increase (decrease) in cash and cash equivalents, discontinued operations | (12) | 3,403 | 129 | |||
Cash flows from (used in) investing activities, discontinued operations | 15 | 3,319 | ||||
Advance income tax payment | 126 | 78 | 78 | |||
Domestic Appliances [Member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Profit (loss) from discontinued operations | 3 | 2,698 | 206 | |||
Separation expenses, continuing operations | 64 | |||||
Result on the sale of discontinued operations, before tax | 1 | 3,241 | ||||
Proceeds from disposal of non-current assets or disposal groups classified as held for sale and discontinued operations | 4,041 | |||||
Assets, liabilities directly associated with assets held for sale | 715 | |||||
Transaction cost | 16 | |||||
Reclassification adjustments on exchange differences on translation, before tax in discontinued operations | 69 | |||||
Tax expense (income) relating to gain (loss) on discontinuance | 743 | |||||
Result on the sale of discontinued operations net of tax | € 2,499 | |||||
Brand license agreement | 15 years | |||||
Cash flows from (used in) investing activities, discontinued operations | € 3,319 | |||||
Domestic Appliances [Member] | Goods or services transferred over time [member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Licence fee income | 700 | |||||
Domestic Appliances [Member] | Closing adjustments [Member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Assets, liabilities directly associated with assets held for sale | 191 | |||||
Domestic Appliances [Member] | Disposal groups classified as held for sale [member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Assets classified as held for sale | 3,850 | |||||
Other operations [Member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Profit (loss) from discontinued operations | € 10 | € 13 | € (10) | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Profit (loss) from discontinued operations | € 13 | [1] | € 2,711 | [1] | € 196 | [2] |
Domestic Appliances [Member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Profit (loss) from discontinued operations | 3 | 2,698 | 206 | |||
Other operations [Member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Profit (loss) from discontinued operations | 10 | 13 | (10) | |||
Discontinued operations [member] | ||||||
Discontinued operations and assets classified as held for sale [Line Items] | ||||||
Profit (loss) from discontinued operations | € 13 | € 2,711 | € 196 | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 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 (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Revenue | € 17,827 | € 17,156 | € 17,313 | ||||
Profit (loss) from operating activities | (1,529) | 553 | 1,264 | ||||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | 18 | 737 | 81 | ||||
Profit (loss) from discontinued operations | 13 | [1] | 2,711 | [1] | 196 | [2] | |
Domestic Appliances [Member] | |||||||
Discontinued operations and assets classified as held for sale [Line Items] | |||||||
Revenue | 6 | 1,516 | 2,222 | ||||
Discontinued Operations, Expenses | 2 | 1,322 | 1,944 | ||||
Profit (loss) from operating activities | 4 | 194 | 279 | ||||
Result on the sale of discontinued operations, before tax | 1 | 3,241 | |||||
Profit Loss Discontinued Operations, Before Tax | 5 | 3,435 | 279 | ||||
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | [3] | 2 | (6) | 72 | |||
Tax expense (income) relating to gain (loss) on discontinuance | 743 | ||||||
Profit (loss) from discontinued operations | € 3 | € 2,698 | € 206 | ||||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 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 (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discontinued operations and assets classified as held for sale [Abstract] | |||
Cash flows from (used in) operating activities, discontinued operations | € (27) | € 85 | € 129 |
Cash flows from (used in) investing activities, discontinued operations | 15 | 3,319 | |
Increase (decrease) in cash and cash equivalents, discontinued operations | € (12) | € 3,403 | € 129 |
Acquisitions and divestments -
Acquisitions and divestments - Text Details (Detail) € in Millions | 12 Months Ended | ||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 30, 2022 EUR (€) | Feb. 09, 2021 $ / shares | |
Acquisitions and divestments [Line Items] | |||||
Aggregated net cash outflow for acquisitions | € 139 | ||||
Other non-current financial assets | 660 | € 630 | € 430 | ||
Losses on disposals of other remaining business | 109 | 43 | € 30 | ||
Aging & Caregiving [member] | |||||
Acquisitions and divestments [Line Items] | |||||
Other non-current financial assets | 40 | ||||
Losses on disposals of other remaining business | 75 | ||||
Acquisitions and divestments [Domain] | |||||
Acquisitions and divestments [Line Items] | |||||
Aggregated net cash outflow for acquisitions | 359 | 2,824 | |||
Contingent consideration recognised as of acquisition date | 96 | ||||
Goodwill recognised as of acquisition date | 2,113 | € 307 | |||
Identifiable intangible assets recognised as of acquisition date | 179 | 840 | |||
Deferred tax assets recognised as of acquisition date | 20 | ||||
Deferred tax liabilities recognised as of acquisition date | 43 | 206 | |||
Remaining two acquisitions [Member] | |||||
Acquisitions and divestments [Line Items] | |||||
Contingent consideration recognised as of acquisition date | 61 | ||||
Goodwill recognised as of acquisition date | 130 | ||||
Identifiable intangible assets recognised as of acquisition date | 95 | ||||
Deferred tax liabilities recognised as of acquisition date | 23 | ||||
Vesper Medical [Member] | |||||
Acquisitions and divestments [Line Items] | |||||
Goodwill recognised as of acquisition date | 177 | ||||
Identifiable intangible assets recognised as of acquisition date | 84 | ||||
Deferred tax assets recognised as of acquisition date | 15 | ||||
Deferred tax liabilities recognised as of acquisition date | (20) | ||||
Cash transferred | € 227 | ||||
Discount rate applied to cash flow projections | 12% | ||||
Vesper Medical [Member] | Business combinations [member] | |||||
Acquisitions and divestments [Line Items] | |||||
Discount rate applied to cash flow projections | 12% | ||||
Vesper Medical [Member] | At fair value [member] | |||||
Acquisitions and divestments [Line Items] | |||||
Contingent consideration recognised as of acquisition date | € 34 | ||||
Vesper Medical [Member] | Carrying amount [member] | |||||
Acquisitions and divestments [Line Items] | |||||
Contingent consideration recognised as of acquisition date | € 44 | ||||
BioTelemetry [Member] | |||||
Acquisitions and divestments [Line Items] | |||||
Aggregated net cash outflow for acquisitions | 2,132 | ||||
Contingent consideration recognised as of acquisition date | (16) | ||||
Goodwill recognised as of acquisition date | 1,790 | ||||
Identifiable intangible assets recognised as of acquisition date | 623 | ||||
Deferred tax assets recognised as of acquisition date | 77 | ||||
Deferred tax liabilities recognised as of acquisition date | (160) | ||||
Cash transferred | € 2,337 | ||||
Discount rate applied to cash flow projections | 10% | ||||
Purchase price per share | $ / shares | $ 72 | ||||
Settled liabilities, contingent liabilities recognised in business combination | € 172 | ||||
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 | ||||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 40 | ||||
Capsule Technologies [Member] | |||||
Acquisitions and divestments [Line Items] | |||||
Aggregated net cash outflow for acquisitions | 520 | ||||
Goodwill recognised as of acquisition date | 322 | ||||
Identifiable intangible assets recognised as of acquisition date | 217 | ||||
Deferred tax assets recognised as of acquisition date | 17 | ||||
Deferred tax liabilities recognised as of acquisition date | (46) | ||||
Cash transferred | € 539 | ||||
Discount rate applied to cash flow projections | 12% | ||||
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 | € 11 |
Acquisitions and divestments _2
Acquisitions and divestments - Opening balance sheet (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Acquisitions and divestments [Line Items] | ||
Assets | € 30,688 | € 30,961 |
Vesper Medical [Member] | ||
Acquisitions and divestments [Line Items] | ||
Identifiable intangible assets recognised as of acquisition date | 84 | |
Deferred tax assets recognised as of acquisition date | 15 | |
Cash and cash equivalents recognised as of acquisition date | 7 | |
Assets | 106 | |
Trade and other payables recognised as of acquisition date | (1) | |
Deferred tax liabilities recognised as of acquisition date | (20) | |
Liabilities | (21) | |
Identifiable assets acquired (liabilities assumed) | 85 | |
Goodwill recognised as of acquisition date | 177 | |
Consideration transferred, acquisition-date fair value | 262 | |
Cash transferred | 227 | |
Vesper Medical [Member] | At fair value [member] | ||
Acquisitions and divestments [Line Items] | ||
Contingent consideration recognised as of acquisition date | € 34 | |
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 | 77 | |
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 | 1,082 | |
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 | (82) | |
Liabilities | (536) | |
Identifiable assets acquired (liabilities assumed) | 547 | |
Goodwill recognised as of acquisition date | 1,790 | |
Cash transferred | 2,337 | |
Contingent consideration recognised as of acquisition date | (16) | |
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 | 17 | |
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 | 371 | |
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) | 217 | |
Goodwill recognised as of acquisition date | 322 | |
Cash transferred | € 539 |
Interests in entities - Text De
Interests in entities - Text Details (Detail) € in Millions | 12 Months Ended | |||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | ||||
Interests in entities [Line Items] | ||||||
Number of consolidated subsidiaries not wholly owned | 4 | 4 | ||||
Revenue | € 17,827 | € 17,156 | € 17,313 | |||
Profit (loss) | (1,605) | [1] | 3,323 | [2] | € 1,195 | [2] |
Philips Medical Capital LLC [Member] | ||||||
Interests in entities [Line Items] | ||||||
Stake in unconsolidated structured entity | 29 | 27 | ||||
Associates [member] | ||||||
Interests in entities [Line Items] | ||||||
Net cash outflow for acquisitions | 256 | |||||
B-SOFT Co, Ltd [Member] | ||||||
Interests in entities [Line Items] | ||||||
Net cash outflow for acquisitions | € 172 | |||||
Associate [Member] | ||||||
Interests in entities [Line Items] | ||||||
Percentage of voting equity interests acquired | 10% | |||||
Affera, Inc [Member] | ||||||
Interests in entities [Line Items] | ||||||
Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 | € 84 | |||||
Subsidiaries with material non-controlling interests [member] | ||||||
Interests in entities [Line Items] | ||||||
Revenue | 472 | 522 | ||||
Profit (loss) | € 28 | € 39 | ||||
Consolidated structured entities [member] | ||||||
Interests in entities [Line Items] | ||||||
Materiality threshold on group sales, income from operations or net income | 5% | |||||
Bottom of range [member] | ||||||
Interests in entities [Line Items] | ||||||
Presumed significant influence, voting rights | 20% | |||||
Top of range [member] | ||||||
Interests in entities [Line Items] | ||||||
Presumed significant influence, voting rights | 50% | |||||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Interests in entities - Interes
Interests in entities - Interests in group companies (Detail) | 12 Months Ended | |
Dec. 31, 2022 | ||
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 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 | [1] |
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 Oral Healthcare B.V. [Member] | ||
Interests in entities [Line Items] | ||
Name of subsidiary | Philips Oral Healthcare B.V. | |
Principal place of business of subsidiary | Netherlands | |
Philips Ultrasound LLC [Member] | ||
Interests in entities [Line Items] | ||
Name of subsidiary | Philips Ultrasound LLC | |
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 USA Export Corporation [Member] | ||
Interests in entities [Line Items] | ||
Name of subsidiary | Philips USA Export Corporation | |
Principal place of business of subsidiary | United States | |
[1] Application of Sec. 264 (3) and Sec. 264b HGB (German Commercial Code) for fully consolidated legal entities: Philips GmbH, Hamburg; Philips Medical Systems DMC GmbH, Hamburg; Respironics Deutschland GmbH & Co. KG, München; Philips Medizin Systeme Hofheim-Wallau GmbH, Hamburg; Philips Medizin Systeme Böblingen GmbH, Böblingen; TomTec Imaging Systems GmbH, Unterschleißheim; Forecare GmbH, Ratingen. |
Income from operations - Text D
Income from operations - Text Details (Detail) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income from operations [Line Items] | ||||
Income from subleasing right-of-use assets | € 258,000 | € 293,000 | € 325,000 | |
Transaction price allocated to remaining performance obligations | € 16,570 | |||
Percentage of remaining performance obligations within 1 year | 50% | |||
Royalty income | € 419,000 | 383,000 | 301,000 | |
Impairment loss recognised in profit or loss, goodwill | [1] | 1,357,000 | 15,000 | 144,000 |
Income from government grants | 103,000 | 104,000 | 98,000 | |
Precision Diagnosis Solutions [Member] | ||||
Income from operations [Line Items] | ||||
Impairment loss recognised in profit or loss, goodwill | 27,000 | |||
Goods or services transferred over time [member] | ||||
Income from operations [Line Items] | ||||
Royalty income | € 292,000 | € 220,000 | € 211,000 | |
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 | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Income from operations - Sales
Income from operations - Sales and costs by nature (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Income from operations [Abstract] | |||||||
Revenue | € 17,827 | € 17,156 | € 17,313 | ||||
Raw materials and consumables used | 4,320 | 4,142 | 4,221 | ||||
Employee benefits expense | 6,952 | 6,246 | 6,289 | ||||
Depreciation and amortisation expense | 1,602 | [1] | 1,323 | [2] | 1,462 | [1] | |
Impairment loss recognised in profit or loss, goodwill | [3] | 1,357 | 15 | 144 | |||
Transportation expense | 756 | 645 | 554 | ||||
Advertising expense | 739 | 752 | 696 | ||||
Lease expenses, net | 39 | 19 | 34 | ||||
Other operational costs | 3,609 | 3,524 | 2,741 | ||||
Other gains (losses) | 18 | 63 | 92 | ||||
Profit (loss) from operating activities | € (1,529) | € 553 | € 1,264 | ||||
[1] Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Income from operations - Sale_2
Income from operations - Sales composition (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from operations [Abstract] | |||
Revenue from sale of goods | € 12,139 | € 11,981 | € 12,491 |
Revenue from rendering of services | 4,878 | 4,374 | 4,058 |
Royalty income | 419 | 383 | 301 |
Revenue from contracts with customers | 17,435 | 16,738 | 16,851 |
Revenue From Other Sources | 391 | 418 | 462 |
Revenue | € 17,827 | € 17,156 | € 17,313 |
Income from operations - Disagg
Income from operations - Disaggregation of Sales per segment (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from operations [Line Items] | |||
Revenue from contracts with customers | € 17,435 | € 16,738 | € 16,851 |
Revenue From Other Sources | 391 | 418 | 462 |
Revenue | 17,827 | 17,156 | 17,313 |
Diagnosis & Treatment [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 9,112 | 8,583 | 8,129 |
Revenue From Other Sources | 56 | 52 | 46 |
Revenue | 9,168 | 8,635 | 8,175 |
Connected Care [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 4,068 | 4,207 | 5,126 |
Revenue From Other Sources | 335 | 366 | 417 |
Revenue | 4,403 | 4,573 | 5,543 |
Personal Health [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 3,626 | 3,429 | 3,199 |
Revenue | 3,626 | 3,429 | 3,199 |
Other [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 629 | 518 | 396 |
Revenue From Other Sources | 0 | 0 | 0 |
Revenue | 629 | 519 | 396 |
Goods or services transferred at point in time [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 12,263 | 12,142 | 12,580 |
Goods or services transferred at point in time [member] | Diagnosis & Treatment [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 5,565 | 5,408 | 5,133 |
Goods or services transferred at point in time [member] | Connected Care [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 2,803 | 3,116 | 4,183 |
Goods or services transferred at point in time [member] | Personal Health [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 3,615 | 3,423 | 3,195 |
Goods or services transferred at point in time [member] | Other [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 279 | 194 | 69 |
Goods or services transferred over time [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 5,172 | 4,596 | 4,271 |
Goods or services transferred over time [member] | Diagnosis & Treatment [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 3,547 | 3,177 | 2,997 |
Goods or services transferred over time [member] | Connected Care [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 1,266 | 1,090 | 943 |
Goods or services transferred over time [member] | Personal Health [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 11 | 6 | 4 |
Goods or services transferred over time [member] | Other [Member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | € 348 | € 323 | € 327 |
Income from operations - Disa_2
Income from operations - Disaggregation of Sales per geographical cluster (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from operations [Line Items] | |||
Revenue from contracts with customers | € 17,435 | € 16,738 | € 16,851 |
Revenue From Other Sources | 391 | 418 | 462 |
Revenue | 17,827 | 17,156 | 17,313 |
Western Europe [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 3,572 | 3,624 | 3,682 |
Revenue From Other Sources | 31 | 21 | 19 |
Revenue | 3,603 | 3,645 | 3,702 |
North America [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 7,502 | 6,695 | 6,789 |
Revenue From Other Sources | 86 | 86 | 95 |
Revenue | 7,588 | 6,781 | 6,884 |
Other Mature Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 1,369 | 1,386 | 1,408 |
Revenue From Other Sources | 274 | 309 | 342 |
Revenue | 1,643 | 1,694 | 1,750 |
Total Mature Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 12,443 | 11,705 | 11,879 |
Revenue From Other Sources | 390 | 415 | 457 |
Revenue | 12,833 | 12,120 | 12,336 |
Growth Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 4,992 | 5,033 | 4,972 |
Revenue From Other Sources | 1 | 3 | 5 |
Revenue | 4,993 | 5,036 | 4,977 |
Goods or services transferred at point in time [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 12,263 | 12,142 | 12,580 |
Goods or services transferred at point in time [member] | Western Europe [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 2,387 | 2,537 | 2,747 |
Goods or services transferred at point in time [member] | North America [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 4,889 | 4,427 | 4,654 |
Goods or services transferred at point in time [member] | Other Mature Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 972 | 1,000 | 1,035 |
Goods or services transferred at point in time [member] | Total Mature Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 8,248 | 7,964 | 8,435 |
Goods or services transferred at point in time [member] | Growth Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 4,015 | 4,178 | 4,145 |
Goods or services transferred over time [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 5,172 | 4,596 | 4,271 |
Goods or services transferred over time [member] | Western Europe [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 1,183 | 1,087 | 936 |
Goods or services transferred over time [member] | North America [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 2,612 | 2,268 | 2,135 |
Goods or services transferred over time [member] | Other Mature Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 399 | 386 | 373 |
Goods or services transferred over time [member] | Total Mature Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | 4,194 | 3,741 | 3,444 |
Goods or services transferred over time [member] | Growth Geographies [member] | |||
Income from operations [Line Items] | |||
Revenue from contracts with customers | € 978 | € 856 | € 828 |
Income from operations - Employ
Income from operations - Employee benefit expenses (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from operations [Line Items] | |||
Wages and salaries | € 5,594 | € 5,014 | € 5,085 |
Share-based compensation costs | 104 | 115 | 119 |
Post-employment benefits costs | 439 | 396 | 418 |
Social security contributions | 590 | 529 | 556 |
Voluntary social security contributions | 225 | 192 | 111 |
Employee benefits expense | € 6,952 | € 6,246 | € 6,289 |
Income from operations - Empl_2
Income from operations - Employees by category (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from operations [Line Items] | |||
Average number of employees | 78,538 | 76,445 | 73,767 |
Continuing operations [member] | Production [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 39,742 | 38,618 | 35,482 |
Continuing operations [member] | Research & development [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 11,690 | 10,751 | 10,812 |
Continuing operations [member] | Other [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 23,019 | 22,543 | 22,474 |
Continuing operations [member] | Employees [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 74,451 | 71,912 | 68,769 |
Continuing operations [member] | Third party workers [Member] | |||
Income from operations [Line Items] | |||
Average number of employees | 4,086 | 4,533 | 4,998 |
Income from operations - Empl_3
Income from operations - Employees by geographical location (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from operations [Line Items] | |||
Average number of employees | 78,538 | 76,445 | 73,767 |
Continuing operations [member] | Country of domicile [member] | |||
Income from operations [Line Items] | |||
Average number of employees | 11,180 | 11,142 | 11,146 |
Continuing operations [member] | Foreign countries [member] | |||
Income from operations [Line Items] | |||
Average number of employees | 67,357 | 65,303 | 62,621 |
Income from operations - Deprec
Income from operations - Depreciation and amortization (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Income from operations [Line Items] | |||||||
Depreciation and amortisation expense | € 1,602 | [1] | € 1,323 | [2] | € 1,462 | [1] | |
Property, plant and equipment [member] | |||||||
Income from operations [Line Items] | |||||||
Depreciation expense | [2] | 711 | 630 | 691 | |||
Computer software [member] | |||||||
Income from operations [Line Items] | |||||||
Amortisation expense | [2] | 117 | 88 | 76 | |||
Other intangible assets [member] | |||||||
Income from operations [Line Items] | |||||||
Amortisation expense | [2] | 363 | 322 | 377 | |||
Capitalised development expenditure [member] | |||||||
Income from operations [Line Items] | |||||||
Amortisation expense | [2] | € 411 | € 284 | € 319 | |||
[1] Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations - Audit
Income from operations - Audit and audit-related fees (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | € 14.4 | € 15.7 | € 14.6 | |
Audit-related fees | [1] | 0.9 | 0.9 | 2.7 |
Auditor's remuneration | 15.3 | 16.6 | 17.3 | |
Consolidated financial statements [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 11.9 | 13 | 11.9 | |
Statutory financial statement [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 2.5 | 2.7 | 2.7 | |
Divestment [member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 1.7 | |||
Sustainability assurance [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.6 | 0.5 | 0.5 | |
Other services [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.3 | 0.4 | 0.5 | |
EY NL [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 8.9 | 10.3 | 9 | |
Audit-related fees | [1] | 0.7 | 0.6 | 2.2 |
Auditor's remuneration | 9.6 | 10.9 | 11.2 | |
EY NL [Member] | Consolidated financial statements [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 8.9 | 10.3 | 9 | |
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 | 0.6 | 0.5 | 0.5 | |
EY NL [Member] | Other services [Member] | ||||
Income from operations [Line Items] | ||||
Audit-related fees | 0.1 | 0.1 | 0.2 | |
EY Network [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 5.5 | 5.4 | 5.6 | |
Audit-related fees | [1] | 0.2 | 0.3 | 0.5 |
Auditor's remuneration | 5.7 | 5.7 | 6.1 | |
EY Network [Member] | Consolidated financial statements [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 3 | 2.7 | 2.9 | |
EY Network [Member] | Statutory financial statement [Member] | ||||
Income from operations [Line Items] | ||||
Auditor's remuneration for audit services | 2.5 | 2.7 | 2.7 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from operations [Abstract] | |||
Gains on disposals of investments | € 4 | € 0 | € 0 |
Losses on disposals of investments | 0 | 75 | 0 |
Gains on disposals of non-current assets | 3 | 24 | 2 |
Losses on disposals of non-current assets | 1 | 5 | 0 |
Gains on disposals of other remaining business | 121 | 161 | 120 |
Losses on disposals of other remaining business | 109 | 43 | 30 |
Other gains (losses) | 18 | 63 | 92 |
Other income | 127 | 186 | 122 |
Other expense, by function | € 109 | € 123 | € 29 |
Financial income and expenses -
Financial income and expenses - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial income and expenses [Abstract] | |||
Increase (decrease) in financial income expense | € 5 | ||
Gains (losses) on financial assets at fair value through profit or loss | € 9 | 95 | € 129 |
Increase (decrease) in net interest expense | € 19 |
Financial income and expenses_2
Financial income and expenses - Financial income and expenses (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial income and expenses [Abstract] | |||
Interest income | € 25 | € 18 | € 13 |
Interest income on loans and receivables | 7 | 7 | 8 |
Interest income on cash and cash equivalents | 18 | 11 | 5 |
Dividend Income From Financial Assets | 3 | 2 | 3 |
Net Gains From Disposal Of Financial Assets | 0 | 0 | 2 |
Gains (losses) on financial assets at fair value through profit or loss | 9 | 95 | 129 |
Other finance income (cost) | 20 | 33 | 12 |
Finance income | 58 | 149 | 158 |
Interest expense | 235 | 159 | 173 |
Interest expense on borrowings | 200 | 126 | 130 |
Interest expense on lease liabilities | 25 | 25 | 29 |
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | (10) | (8) | (13) |
Provision-related accretion and interest | 9 | 5 | 10 |
Net foreign exchange loss | (9) | 0 | (4) |
Other finance cost | 24 | 24 | 23 |
Finance costs | 258 | 188 | 202 |
Finance income (cost) | € (200) | € (39) | € (44) |
Income taxes - Text Details (De
Income taxes - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes [Line Items] | ||||
Tax expense (income) | € (113) | € (103) | € 212 | |
Tax expense (income) relating to profit (loss) from ordinary activities of discontinued operations | € 18 | 737 | € 81 | |
Applicable tax rate | 25.80% | 25% | 25% | |
Net deferred tax assets | € 2,358 | 2,134 | ||
Deferred tax assets | 2,449 | 2,216 | € 2,216 | |
Deferred tax liabilities | 91 | 83 | ||
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 | 1,453 | 12 | ||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 355 | 298 | ||
Deductible temporary differences for which no deferred tax asset is recognised | 45 | 33 | ||
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 1,032 | 2,547 | ||
Other tax liability | 435 | 544 | ||
Not later than one year [member] | ||||
Income taxes [Line Items] | ||||
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | € 3 | € 1,592 |
Income taxes - Income tax expen
Income taxes - Income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Line Items] | |||
Profit (loss) before tax | € (1,731) | € 509 | € 1,211 |
Share of profit (loss) of associates and joint ventures accounted for using equity method | (2) | (4) | (9) |
Income before taxes continuing operations | (1,729) | 513 | 1,220 |
Current tax expense (income) and adjustments for current tax of prior periods | 97 | 298 | 380 |
Deferred tax expense (income) recognised in profit or loss | 210 | 401 | 167 |
Tax expense (income) | € (113) | € (103) | € 212 |
Income taxes - Current income t
Income taxes - Current income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Abstract] | |||
Current tax expense (income) | € 111 | € 291 | € 390 |
Adjustments for current tax of prior periods | (14) | 7 | (10) |
Current tax expense (income) and adjustments for current tax of prior periods | € 97 | € 298 | € 380 |
Income taxes - Deferred income
Income taxes - Deferred income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Abstract] | |||
Changes to Recognition of Tax Loss and Credit Carry Forwards | € 2 | € 138 | € 6 |
Tax benefit arising from previously unrecognised tax loss, tax credit or temporary difference of prior period used to reduce deferred tax expense | (13) | (10) | |
Changes to Recognition of Temporary Differences | (4) | (1) | 19 |
Adjustments for deferred tax of prior periods | (1) | 20 | (8) |
Deferred tax expense (income) relating to tax rate changes or imposition of new taxes | (18) | 10 | 12 |
Deferred tax expense (income) relating to origination and reversal of temporary differences | 244 | 245 | 137 |
Deferred tax expense (income) recognised in profit or loss | € 210 | € 401 | € 167 |
Income taxes - Effective income
Income taxes - Effective income tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Abstract] | |||
Weighted average statutory income tax rate | 23.60% | 22.70% | 25.20% |
Recognition of previously unrecognized tax loss and credit carryforwards rate | 0.10% | (26.90%) | (0.50%) |
Unrecognized tax loss and credit carryforwards rate | (0.70%) | 1.90% | 0% |
Changes to Recognition of Temporary Differences Rate | (0.20%) | 0.30% | (1.60%) |
Tax rate effect of revenues exempt from taxation | 5.80% | (40.60%) | (12.90%) |
Tax rate effect of expense not deductible in determining taxable profit (tax loss) | (22.90%) | 19.30% | 7% |
Withholding and other taxes | (1.40%) | 7.20% | 0.60% |
Tax rate effect from change in tax rate | (1.00%) | (1.90%) | (1.00%) |
Tax rate effect of adjustments for current tax of prior periods | 0.70% | (2.40%) | (0.20%) |
Tax expenses (benefit) due to other tax liabilities | 2.80% | 4.40% | 1.20% |
Other tax rate effects for reconciliation between accounting profit and tax expense (income) | (0.20%) | (4.00%) | (0.20%) |
Average effective tax rate | 6.50% | (20.00%) | 17.60% |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Line Items] | |||
Deferred tax expense (income) recognised in profit or loss | € 210 | € 401 | € 167 |
Net deferred tax assets | 2,358 | 2,134 | |
Intangible assets and goodwill [member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (630) | (587) | (240) |
Deferred tax expense (income) recognised in profit or loss | 63 | 535 | |
Other changes in deferred tax assets and liabilities | (20) | (188) | |
Net deferred tax assets | 783 | 716 | |
Net deferred tax liabilities | 152 | 130 | |
Property, plant and equipment [member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | 2 | (29) | (32) |
Deferred tax expense (income) recognised in profit or loss | (33) | 13 | |
Other changes in deferred tax assets and liabilities | 2 | (16) | |
Net deferred tax assets | 49 | 55 | |
Net deferred tax liabilities | 52 | 26 | |
Inventories [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (464) | (372) | (313) |
Deferred tax expense (income) recognised in profit or loss | 75 | 31 | |
Other changes in deferred tax assets and liabilities | 17 | 28 | |
Net deferred tax assets | 473 | 381 | |
Net deferred tax liabilities | 8 | 9 | |
Other assets [member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (44) | (68) | (97) |
Deferred tax expense (income) recognised in profit or loss | (16) | (30) | |
Other changes in deferred tax assets and liabilities | (8) | 1 | |
Net deferred tax assets | 98 | 112 | |
Net deferred tax liabilities | 55 | 43 | |
Pensions and other employee benefits [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (153) | (180) | (245) |
Deferred tax expense (income) recognised in profit or loss | 6 | (45) | |
Other changes in deferred tax assets and liabilities | (32) | (21) | |
Net deferred tax assets | 175 | 182 | |
Net deferred tax liabilities | 22 | 2 | |
Other liabilities [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (483) | (499) | (384) |
Deferred tax expense (income) recognised in profit or loss | (34) | 91 | |
Other changes in deferred tax assets and liabilities | 17 | 25 | |
Net deferred tax assets | 560 | 584 | |
Net deferred tax liabilities | 77 | 84 | |
Deferred tax assets on taxLoss carryforwards [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (586) | (398) | (449) |
Deferred tax expense (income) recognised in profit or loss | 149 | (194) | |
Other changes in deferred tax assets and liabilities | 38 | 143 | |
Net deferred tax assets | 586 | 398 | |
Set-off deffered tax positions [Member] | |||
Income taxes [Line Items] | |||
Net deferred tax assets | (275) | (211) | |
Net deferred tax liabilities | (275) | (211) | |
Net deferred tax assets [Member] | |||
Income taxes [Line Items] | |||
Deferred tax liability (asset) | (2,358) | (2,134) | € (1,761) |
Deferred tax expense (income) recognised in profit or loss | 210 | 401 | |
Other changes in deferred tax assets and liabilities | 14 | (28) | |
Net deferred tax assets | 2,449 | 2,216 | |
Net deferred tax liabilities | € 91 | € 83 |
Income taxes - Expiry years of
Income taxes - Expiry years of net operating loss and credit carryforwards (Detail) - EUR (€) | Dec. 31, 2022 | Dec. 31, 2021 |
Income taxes [Line Items] | ||
Net operating loss carryforwards | € 3,187,000,000 | € 3,951,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 1,032,000,000 | 2,547,000,000 |
Not later than one year [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 4,000,000 | 1,593,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 3,000,000 | 1,592,000,000 |
Later than one year and not later than two years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 10,000,000 | 6,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 5,000,000 | 0 |
Later than two years and not later than three years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 9,000,000 | 9,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 3,000,000 | 0 |
Later than three years and not later than four years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 13,000,000 | 7,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 4,000,000 | 0 |
Later than four years and not later than five years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 38,000,000 | 18,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 3,000,000 | 0 |
Later than five years [member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 812,000,000 | 751,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 93,000,000 | 21,000,000 |
Unlimited [Member] | ||
Income taxes [Line Items] | ||
Net operating loss carryforwards | 2,301,000,000 | 1,567,000,000 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | € 920,000,000 | € 934,000,000 |
Earnings per share - Earnings p
Earnings per share - Earnings per share (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Earnings per share [Abstract] | |||||||
Profit (loss) from continuing operations | € (1,618) | [1] | € 612 | [2] | € 999 | [1] | |
Profit (loss) from continuing operations attributable to ordinary equity holders of parent entity, used in calculating basic earnings per share | [2] | (1,622) | 608 | 991 | |||
Profit (loss) from continuing operations attributable to non-controlling interests | [2] | 3 | 4 | 8 | |||
Profit (loss) from discontinued operations | 13 | [1] | 2,711 | [1] | 196 | [2] | |
Income from discontinued operations attributable to owners of parent | [2] | 13 | 2,711 | 196 | |||
Profit (loss) | (1,605) | [2] | 3,323 | [1] | 1,195 | [1] | |
Profit (loss), attributable to owners of parent | [2] | (1,608) | 3,319 | 1,187 | |||
Profit (loss), attributable to non-controlling interests | [2] | € 3 | € 4 | € 8 | |||
Weighted average number of ordinary shares used in calculating basic earnings per share | [2] | 881,615,862 | 904,271,675 | 907,721,150 | |||
Incremental shares from assumed conversions of options | [2] | 25,506 | 387,125 | 757,622 | |||
Incremental shares from assumed conversions of performance shares | [2] | 1,147,790 | 2,548,891 | 5,561,501 | |||
Incremental shares from assumed conversions of restricted share rights | [2] | 1,986,538 | 2,376,736 | 2,584,728 | |||
Incremental shares from assumed conversions of forward contracts | [2] | 17,611,920 | 70,329 | ||||
Dilutive potential common shares | [2],[3] | 20,771,753 | 5,383,080 | 8,903,851 | |||
Diluted weighted average number of shares (after deduction of treasury shares) during the year | [2] | 881,615,862 | 909,654,754 | 916,625,001 | |||
Basic earnings (loss) per share from continuing operations attributable to shareholders | [2] | € (1.84) | € 0.67 | € 1.09 | |||
Basic earnings (loss) per share from discontinued operations | [2] | 0.02 | 3 | 0.22 | |||
Basic earnings (loss) per share | [2] | (1.82) | 3.67 | 1.31 | |||
Diluted earnings (loss) per share from continuing operations attributable to shareholders | [2],[3] | (1.84) | 0.67 | 1.08 | |||
Diluted earnings (loss) per share from discontinued operations | [2],[3] | 0.02 | 2.98 | 0.21 | |||
Diluted earnings (loss) per share | [2],[3] | (1.82) | 3.65 | 1.29 | |||
Dividends paid, ordinary shares per share | [2] | € 0.85 | € 0.85 | € 0.85 | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 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 - Useful lives of property, plant and equipment (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Property, plant and equipment_2
Property, plant and equipment - Property, plant and equipment (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, plant and equipment [Line Items] | |||
Property, plant and equipment | € 2,638 | € 2,699 | |
Owned [member] | |||
Property, plant and equipment [Line Items] | |||
Property, plant and equipment | 1,718 | 1,641 | € 1,663 |
Right-of-use assets [member] | |||
Property, plant and equipment [Line Items] | |||
Property, plant and equipment | € 919 | € 1,058 | € 1,020 |
Property, plant and equipment_3
Property, plant and equipment - Property, plant and equipment - owned assets (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | € 2,699 | |
Assets available for use | € 0 | |
Reclassifications | (2) | 122 |
Increase (decrease) in property, plant and equipment | 38 | |
Property, plant and equipment at end of period | 2,638 | 2,699 |
Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,641 | 1,663 |
Additions other than through business combinations, property, plant and equipment | 494 | 409 |
Assets available for use | (6) | (5) |
Acquisitions through business combinations, property, plant and equipment | 53 | |
Depreciation, property, plant and equipment | 447 | 355 |
Impairment loss recognised in profit or loss, property, plant and equipment | 42 | 18 |
Decrease through classified as held for sale, property, plant and equipment | 3 | 170 |
Reclassifications | 29 | 0 |
Increase (decrease) through net exchange differences, property, plant and equipment | 50 | 65 |
Increase (decrease) in property, plant and equipment | 78 | (22) |
Property, plant and equipment at end of period | 1,718 | 1,641 |
Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,641 | |
Property, plant and equipment at end of period | 1,718 | 1,641 |
Gross carrying amount [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,724 | |
Property, plant and equipment at end of period | 1,724 | |
Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 4,273 | 4,415 |
Property, plant and equipment at end of period | 4,676 | 4,273 |
Accumulated depreciation, amortisation and impairment [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (2,632) | |
Property, plant and equipment at end of period | (2,958) | (2,632) |
Accumulated depreciation and amortisation [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (666) | |
Property, plant and equipment at end of period | (666) | |
Accumulated depreciation and amortisation [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (2,752) | |
Land and buildings [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 506 | |
Property, plant and equipment at end of period | 506 | |
Land and buildings [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Additions other than through business combinations, property, plant and equipment | 1 | 9 |
Assets available for use | 34 | 72 |
Acquisitions through business combinations, property, plant and equipment | 0 | |
Depreciation, property, plant and equipment | 56 | 53 |
Impairment loss recognised in profit or loss, property, plant and equipment | 3 | 1 |
Decrease through classified as held for sale, property, plant and equipment | 3 | 87 |
Reclassifications | 18 | 6 |
Increase (decrease) through net exchange differences, property, plant and equipment | 16 | 23 |
Increase (decrease) in property, plant and equipment | 8 | (31) |
Land and buildings [member] | Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 506 | 537 |
Property, plant and equipment at end of period | 514 | 506 |
Land and buildings [member] | Gross carrying amount [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,097 | |
Property, plant and equipment at end of period | 1,097 | |
Land and buildings [member] | Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,097 | 1,076 |
Property, plant and equipment at end of period | 1,135 | 1,097 |
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 | (591) | |
Property, plant and equipment at end of period | (621) | (591) |
Land and buildings [member] | Accumulated depreciation and amortisation [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (591) | |
Property, plant and equipment at end of period | (591) | |
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 | (539) | |
Machinery [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 511 | |
Additions other than through business combinations, property, plant and equipment | 102 | 62 |
Assets available for use | 69 | 110 |
Acquisitions through business combinations, property, plant and equipment | 9 | |
Depreciation, property, plant and equipment | 215 | 144 |
Impairment loss recognised in profit or loss, property, plant and equipment | 20 | 6 |
Decrease through classified as held for sale, property, plant and equipment | 16 | |
Reclassifications | 14 | 2 |
Increase (decrease) through net exchange differences, property, plant and equipment | 26 | 14 |
Increase (decrease) in property, plant and equipment | (23) | 33 |
Property, plant and equipment at end of period | 511 | |
Machinery [member] | Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 511 | 478 |
Property, plant and equipment at end of period | 488 | 511 |
Machinery [member] | Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,585 | 1,506 |
Property, plant and equipment at end of period | 1,779 | 1,585 |
Machinery [member] | Accumulated depreciation, amortisation and impairment [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (1,074) | (1,028) |
Property, plant and equipment at end of period | (1,291) | (1,074) |
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 | 415 | |
Additions other than through business combinations, property, plant and equipment | 77 | 77 |
Assets available for use | 111 | 117 |
Acquisitions through business combinations, property, plant and equipment | 43 | |
Depreciation, property, plant and equipment | 176 | 158 |
Impairment loss recognised in profit or loss, property, plant and equipment | 18 | 11 |
Decrease through classified as held for sale, property, plant and equipment | 0 | 46 |
Reclassifications | (5) | (10) |
Increase (decrease) through net exchange differences, property, plant and equipment | 2 | 16 |
Increase (decrease) in property, plant and equipment | (8) | 29 |
Property, plant and equipment at end of period | 415 | |
Other equipment [Member] | Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 415 | 387 |
Property, plant and equipment at end of period | 408 | 415 |
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 | 1,382 | 1,572 |
Property, plant and equipment at end of period | 1,454 | 1,382 |
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 | (967) | (1,185) |
Property, plant and equipment at end of period | (1,046) | (967) |
Construction in progress [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 208 | 261 |
Additions other than through business combinations, property, plant and equipment | 314 | 261 |
Assets available for use | (220) | (305) |
Depreciation, property, plant and equipment | 0 | |
Impairment loss recognised in profit or loss, property, plant and equipment | 1 | 0 |
Decrease through classified as held for sale, property, plant and equipment | 20 | |
Reclassifications | 2 | 1 |
Increase (decrease) through net exchange differences, property, plant and equipment | 5 | 10 |
Increase (decrease) in property, plant and equipment | 100 | (53) |
Property, plant and equipment at end of period | 208 | |
Construction in progress [member] | Owned [member] | IFRS 16 [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 208 | |
Property, plant and equipment at end of period | 309 | 208 |
Construction in progress [member] | Gross carrying amount [member] | Owned [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 208 | 261 |
Property, plant and equipment at end of period | € 309 | € 208 |
Property, plant and equipment_4
Property, plant and equipment - Property, plant and equipment - right-of-use assets (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | € 2,699 | |
Assets available for use | € 0 | |
Reclassifications | (2) | 122 |
Increase (decrease) in property, plant and equipment | 38 | |
Property, plant and equipment at end of period | 2,638 | 2,699 |
Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,058 | 1,020 |
Additions other than through business combinations, property, plant and equipment | 106 | 215 |
Assets available for use | 6 | 5 |
Acquisitions through business combinations, property, plant and equipment | 43 | |
Depreciation, property, plant and equipment | 214 | 252 |
Impairment loss recognised in profit or loss, property, plant and equipment | 9 | 4 |
Decrease through classified as held for sale, property, plant and equipment | (3) | 8 |
Reclassifications | (32) | 1 |
Increase (decrease) through net exchange differences, property, plant and equipment | 1 | 39 |
Increase (decrease) in property, plant and equipment | (139) | |
Property, plant and equipment at end of period | 919 | 1,058 |
Gross carrying amount [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,724 | |
Property, plant and equipment at end of period | 1,724 | |
Gross carrying amount [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,724 | 1,560 |
Property, plant and equipment at end of period | 1,571 | 1,724 |
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 | (666) | |
Property, plant and equipment at end of period | (651) | (666) |
Accumulated depreciation and amortisation [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (666) | |
Property, plant and equipment at end of period | (666) | |
Accumulated depreciation and amortisation [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (540) | |
Land and buildings [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 506 | |
Property, plant and equipment at end of period | 506 | |
Land and buildings [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 914 | 837 |
Additions other than through business combinations, property, plant and equipment | 52 | 150 |
Assets available for use | 5 | 2 |
Acquisitions through business combinations, property, plant and equipment | 43 | |
Depreciation, property, plant and equipment | 155 | 157 |
Impairment loss recognised in profit or loss, property, plant and equipment | 8 | (1) |
Decrease through classified as held for sale, property, plant and equipment | (3) | 7 |
Reclassifications | (19) | |
Increase (decrease) through net exchange differences, property, plant and equipment | 31 | 44 |
Increase (decrease) in property, plant and equipment | (92) | 77 |
Property, plant and equipment at end of period | 822 | 914 |
Land and buildings [member] | Gross carrying amount [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1,097 | |
Property, plant and equipment at end of period | 1,097 | |
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 | 1,332 | 1,147 |
Property, plant and equipment at end of period | 1,365 | 1,332 |
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 | (418) | (310) |
Property, plant and equipment at end of period | (543) | (418) |
Land and buildings [member] | Accumulated depreciation and amortisation [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | (591) | |
Property, plant and equipment at end of period | (591) | |
Machinery [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 37 | 55 |
Additions other than through business combinations, property, plant and equipment | 0 | 21 |
Depreciation, property, plant and equipment | 2 | 32 |
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 5 |
Reclassifications | (13) | |
Increase (decrease) through net exchange differences, property, plant and equipment | (23) | (2) |
Increase (decrease) in property, plant and equipment | (37) | (18) |
Property, plant and equipment at end of period | 0 | 37 |
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 | 176 | 199 |
Property, plant and equipment at end of period | 0 | 176 |
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 | (139) | (144) |
Property, plant and equipment at end of period | (139) | |
Other equipment [Member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 1 | |
Other equipment [Member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 107 | 126 |
Additions other than through business combinations, property, plant and equipment | 54 | 44 |
Assets available for use | 1 | 3 |
Depreciation, property, plant and equipment | 58 | 63 |
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 |
Decrease through classified as held for sale, property, plant and equipment | 1 | |
Reclassifications | 0 | 2 |
Increase (decrease) through net exchange differences, property, plant and equipment | (6) | (4) |
Increase (decrease) in property, plant and equipment | (9) | (20) |
Property, plant and equipment at end of period | 98 | 107 |
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] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment at beginning of period | 216 | 213 |
Property, plant and equipment at end of period | 206 | 216 |
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 | (109) | |
Property, plant and equipment at end of period | € (108) | (109) |
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) | |
Construction in progress [member] | Right-of-use assets [member] | ||
Property, plant and equipment [Line Items] | ||
Reclassifications | (1) | |
Increase (decrease) in property, plant and equipment | € (1) |
Goodwill - Text Details (Detail
Goodwill - Text Details (Detail) | 12 Months Ended | ||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Sep. 30, 2022 | ||
Goodwill [Line Items] | |||||
Impairment loss recognised in profit or loss, goodwill | [1] | € 1,357,000,000 | € 15,000,000 | € 144,000,000 | |
Increase (decrease) through net exchange differences, intangible assets and goodwill | 641,000,000 | ||||
Acquisitions through business combinations, intangible assets and goodwill | 317,000,000 | ||||
Goodwill | 10,238,000,000 | 10,637,000,000 | |||
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 169,000,000 | 195,000,000 | |||
Precision Diagnosis business group [Member] | |||||
Goodwill [Line Items] | |||||
Impairment loss recognised in profit or loss, goodwill | 27,000,000 | ||||
Sleep & Respiratory Care [Member] | |||||
Goodwill [Line Items] | |||||
Impairment loss recognised in profit or loss, goodwill | (1,331,000,000) | ||||
Goodwill | 731,000,000 | € 2,031,000,000 | |||
Recoverable amount of asset or cash-generating unit | € 1,001,000,000 | ||||
Initial forecast period | 10% | 9.20% | 1.50% | ||
Sensitivity pre-tax discount rate | 40 | ||||
Sensitivity compound long-term sales growth | 160 | ||||
Sensitivity terminal value | 7% | ||||
Personal Emergency Response and Senior Living [Member] | |||||
Goodwill [Line Items] | |||||
Impairment loss recognised in profit or loss, goodwill | € 13,000,000 | ||||
Goodwill | 0 | ||||
Ambulatory Monitoring & Diagnostics [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | € 2,215,000,000 | € 1,897,000,000 | |||
Initial forecast period | 15.40% | 24.50% | |||
Sensitivity pre-tax discount rate | 40 | ||||
Sensitivity compound long-term sales growth | 210 | ||||
Sensitivity terminal value | 8% | ||||
Other (units carrying a non-significant goodwill balance) [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | € 2,332,000,000 | € 2,245,000,000 | |||
Sensitivity pre-tax discount rate | 190 | ||||
Sensitivity compound long-term sales growth | 900 | ||||
Sensitivity terminal value | 26% | ||||
BioTelemetry [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | 1,776,000,000 | ||||
Capsule Technologies [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | 325,000,000 | ||||
Goodwill [member] | |||||
Goodwill [Line Items] | |||||
Increase (decrease) in goodwill | € (399,000,000) | 2,622,000,000 | |||
Impairment loss recognised in profit or loss, goodwill | 1,357,000,000 | 15,000,000 | |||
Increase (decrease) through net exchange differences, intangible assets and goodwill | 641,000,000 | 732,000,000 | |||
Acquisitions through business combinations, intangible assets and goodwill | € 317,000,000 | 2,095,000,000 | |||
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 732,000,000 | ||||
Decrease through classified as held for sale, goodwill | 189,000,000 | ||||
Initial forecast period | 400% | ||||
Goodwill [member] | Personal Emergency Response and Senior Living [Member] | |||||
Goodwill [Line Items] | |||||
Impairment loss recognised in profit or loss, goodwill | € 15,000,000 | ||||
Goodwill [member] | Ambulatory Monitoring & Diagnostics [Member] | |||||
Goodwill [Line Items] | |||||
Initial forecast period | 500% | ||||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Goodwill - Goodwill (Detail)
Goodwill - Goodwill (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Goodwill [Line Items] | ||||
Acquisitions through business combinations, intangible assets and goodwill | € 317 | |||
Impairment loss recognised in profit or loss, goodwill | [1] | 1,357 | € 15 | € 144 |
Increase (decrease) through net exchange differences, intangible assets and goodwill | 641 | |||
Goodwill [member] | ||||
Goodwill [Line Items] | ||||
Intangible assets and goodwill | 10,238 | 10,637 | 8,014 | |
Acquisitions through business combinations, intangible assets and goodwill | 317 | 2,095 | ||
Impairment loss recognised in profit or loss, goodwill | 1,357 | 15 | ||
Decrease through classified as held for sale, intangible assets and goodwill | 189 | |||
Increase (decrease) through net exchange differences, intangible assets and goodwill | 641 | 732 | ||
Increase (decrease) in goodwill | (399) | 2,622 | ||
Gross carrying amount [member] | Goodwill [member] | ||||
Goodwill [Line Items] | ||||
Intangible assets and goodwill | 12,747 | 11,793 | 9,094 | |
Accumulated impairment [member] | Goodwill [member] | ||||
Goodwill [Line Items] | ||||
Intangible assets and goodwill | € 2,509 | € 1,156 | € 1,080 | |
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Goodwill - Key assumptions (Det
Goodwill - Key assumptions (Detail) | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill [member] | |||
Goodwill [Line Items] | |||
Initial forecast period | 400% | ||
Sleep & Respiratory Care [Member] | |||
Goodwill [Line Items] | |||
Initial forecast period | 10% | 1.50% | 9.20% |
Growth rate used to extrapolate cash flow projections | 5% | 4.30% | 5% |
Used to calculate terminal value | 2.50% | 2.50% | 2.50% |
Discount rate applied to cash flow projections | 9.90% | 9.50% | 9.20% |
Ambulatory Monitoring & Diagnostics [Member] | |||
Goodwill [Line Items] | |||
Initial forecast period | 15.40% | 24.50% | |
Growth rate used to extrapolate cash flow projections | 9.50% | 11.90% | |
Used to calculate terminal value | 2.50% | 2.50% | |
Discount rate applied to cash flow projections | 7.30% | ||
Ambulatory Monitoring & Diagnostics [Member] | Goodwill [member] | |||
Goodwill [Line Items] | |||
Initial forecast period | 500% | ||
Discount rate applied to cash flow projections | 8.50% | ||
Hospital Patient Monitoring [Member] | |||
Goodwill [Line Items] | |||
Initial forecast period | 4.80% | 5.40% | |
Growth rate used to extrapolate cash flow projections | 3.40% | 3.40% | |
Used to calculate terminal value | 2.50% | 2.50% | |
Discount rate applied to cash flow projections | 8.50% | 7.80% | |
Image-Guided Therapy [Member] | |||
Goodwill [Line Items] | |||
Initial forecast period | 8.70% | 10.20% | |
Growth rate used to extrapolate cash flow projections | 5% | 5.40% | |
Used to calculate terminal value | 2.50% | 2.50% | |
Discount rate applied to cash flow projections | 10.60% | ||
Image-Guided Therapy [Member] | Goodwill [member] | |||
Goodwill [Line Items] | |||
Discount rate applied to cash flow projections | 8.90% |
Goodwill - Goodwill allocated t
Goodwill - Goodwill allocated to the cash-generating units (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | |||
Goodwill | € 10,238 | € 10,637 | |
Goodwill [member] | |||
Goodwill [Line Items] | |||
Intangible assets and goodwill | 10,238 | 10,637 | € 8,014 |
Ambulatory Monitoring & Diagnostics [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 2,215 | 1,897 | |
Hospital Patient Monitoring [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 1,806 | 1,663 | |
Image-Guided Therapy [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 3,154 | 2,802 | |
Sleep & Respiratory Care [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 731 | 2,031 | |
Other (units carrying a non-significant goodwill balance) [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 2,332 | 2,245 | |
Cash-generating units [member] | Goodwill [member] | |||
Goodwill [Line Items] | |||
Intangible assets and goodwill | € 10,238 | € 10,637 |
Intangible assets excluding g_3
Intangible assets excluding goodwill - Text Details (Detail) € in Millions | 12 Months Ended | |||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Intangible assets excluding goodwill [Line Items] | ||||
Acquisitions through business combinations, intangible assets other than goodwill | € 180 | € 841 | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 276 | 126 | ||
Intangible assets other than goodwill | € 3,526 | € 3,526 | 3,650 | € 2,997 |
Brand names, customer relationships, technology and other intangible assets [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Weighted average expected remaining life | 9.6 | 9.4 | ||
Technology-based intangible assets [member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Acquisitions through business combinations, intangible assets other than goodwill | € 177 | 235 | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 46 | 57 | ||
Intangible assets other than goodwill | € 1,102 | 1,102 | 1,000 | 869 |
Technology-based intangible assets [member] | BioTelemetry [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Intangible assets other than goodwill | 150 | € 150 | € 162 | |
Remaining amortisation period of intangible assets material to entity | 10 years | 11 years | ||
Technology-based intangible assets [member] | Image Guided Therapy business group [member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Intangible assets other than goodwill | 203 | € 203 | € 210 | |
Remaining amortisation period of intangible assets material to entity | 10 years | 11 years | ||
Technology-based intangible assets [member] | Diagnosis & Treatment [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Recoverable amount of asset or cash-generating unit | 0 | € 0 | ||
Product development related [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 204 | |||
Product development related [Member] | Precision Diagnosis business group [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 36 | |||
Product development related [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 | 41 | |||
Product development related (productivity) [Member] | Research & development [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 132 | |||
Product development construction in progress [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 81 | € 15 | ||
Intangible assets other than goodwill | 502 | 502 | 414 | 398 |
Product development construction in progress [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 | 16 | |||
Customer-related intangible assets [member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Acquisitions through business combinations, intangible assets other than goodwill | 3 | 544 | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 6 | 3 | ||
Intangible assets other than goodwill | 1,070 | 1,070 | 1,143 | € 651 |
Customer-related intangible assets [member] | BioTelemetry [Member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Intangible assets other than goodwill | 385 | € 385 | € 391 | |
Remaining amortisation period of intangible assets material to entity | 14 years | 15 years | ||
Customer-related intangible assets [member] | Image Guided Therapy business group [member] | ||||
Intangible assets excluding goodwill [Line Items] | ||||
Intangible assets other than goodwill | € 291 | € 291 | € 292 | |
Remaining amortisation period of intangible assets material to entity | 15 years | 16 years |
Intangible assets excluding g_4
Intangible assets excluding goodwill - Expected useful lives of intangible assets excluding goodwill (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Intangible assets excluding g_5
Intangible assets excluding goodwill - Intangible assets excluding goodwill (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | € 3,650 | € 2,997 |
Additions other than through business combinations, intangible assets other than goodwill | 416 | 392 |
Assets available for use | 0 | |
Acquisitions through business combinations, intangible assets other than goodwill | 180 | 841 |
Amortisation, intangible assets other than goodwill | 614 | 568 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 276 | 126 |
Decrease through classified as held for sale, intangible assets other than goodwill | 82 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 169 | 195 |
Increase (decrease) in intangible assets other than goodwill | (125) | 653 |
Intangible assets other than goodwill at end of period | 3,526 | 3,650 |
Brand names [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 162 | 120 |
Additions other than through business combinations, intangible assets other than goodwill | (3) | |
Acquisitions through business combinations, intangible assets other than goodwill | 1 | 62 |
Amortisation, intangible assets other than goodwill | 24 | 21 |
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 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 4 | 12 |
Increase (decrease) in intangible assets other than goodwill | (22) | 42 |
Intangible assets other than goodwill at end of period | 140 | 162 |
Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 1,143 | 651 |
Additions other than through business combinations, intangible assets other than goodwill | 0 | |
Acquisitions through business combinations, intangible assets other than goodwill | 3 | 544 |
Amortisation, intangible assets other than goodwill | 141 | 126 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 6 | 3 |
Decrease through classified as held for sale, intangible assets other than goodwill | 3 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 71 | 80 |
Increase (decrease) in intangible assets other than goodwill | (74) | 492 |
Intangible assets other than goodwill at end of period | 1,070 | 1,143 |
Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 1,000 | 869 |
Additions other than through business combinations, intangible assets other than goodwill | 51 | 9 |
Acquisitions through business combinations, intangible assets other than goodwill | 177 | 235 |
Amortisation, intangible assets other than goodwill | 140 | 114 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 46 | 57 |
Decrease through classified as held for sale, intangible assets other than goodwill | 11 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 59 | 69 |
Increase (decrease) in intangible assets other than goodwill | 102 | 131 |
Intangible assets other than goodwill at end of period | 1,102 | 1,000 |
Product development [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 599 | 622 |
Additions other than through business combinations, intangible assets other than goodwill | 0 | 1 |
Assets available for use | 118 | 247 |
Acquisitions through business combinations, intangible assets other than goodwill | 0 | |
Amortisation, intangible assets other than goodwill | 206 | 219 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 123 | 51 |
Decrease through classified as held for sale, intangible assets other than goodwill | 17 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 5 | 17 |
Increase (decrease) in intangible assets other than goodwill | (206) | (22) |
Intangible assets other than goodwill at end of period | 393 | 599 |
Product development construction in progress [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 414 | 398 |
Additions other than through business combinations, intangible assets other than goodwill | 257 | 261 |
Assets available for use | (118) | (247) |
Amortisation, intangible assets other than goodwill | 1 | 0 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 81 | 15 |
Decrease through classified as held for sale, intangible assets other than goodwill | 6 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 31 | 23 |
Increase (decrease) in intangible assets other than goodwill | 88 | 17 |
Intangible assets other than goodwill at end of period | 502 | 414 |
Computer software [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 287 | 295 |
Additions other than through business combinations, intangible assets other than goodwill | 109 | 117 |
Assets available for use | 0 | |
Acquisitions through business combinations, intangible assets other than goodwill | 0 | 0 |
Amortisation, intangible assets other than goodwill | 100 | 85 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 17 | 0 |
Decrease through classified as held for sale, intangible assets other than goodwill | 34 | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 1 | (7) |
Increase (decrease) in intangible assets other than goodwill | (7) | (8) |
Intangible assets other than goodwill at end of period | 280 | 287 |
Other intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 44 | 44 |
Additions other than through business combinations, intangible assets other than goodwill | 1 | 2 |
Assets available for use | 0 | |
Acquisitions through business combinations, intangible assets other than goodwill | 0 | |
Amortisation, intangible assets other than goodwill | 3 | 3 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 2 | 0 |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | (2) | 1 |
Increase (decrease) in intangible assets other than goodwill | (6) | 1 |
Intangible assets other than goodwill at end of period | 39 | 44 |
Gross carrying amount [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 9,944 | 8,883 |
Intangible assets other than goodwill at end of period | 10,602 | 9,944 |
Gross carrying amount [member] | Brand names [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 644 | 556 |
Intangible assets other than goodwill at end of period | 647 | 644 |
Gross carrying amount [member] | Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,590 | 2,036 |
Intangible assets other than goodwill at end of period | 2,735 | 2,590 |
Gross carrying amount [member] | Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,605 | 2,434 |
Intangible assets other than goodwill at end of period | 2,947 | 2,605 |
Gross carrying amount [member] | Product development [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,701 | 2,519 |
Intangible assets other than goodwill at end of period | 2,605 | 2,701 |
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 | 505 | 480 |
Intangible assets other than goodwill at end of period | 648 | 505 |
Gross carrying amount [member] | Computer software [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 754 | 723 |
Intangible assets other than goodwill at end of period | 869 | 754 |
Gross carrying amount [member] | Other intangible assets [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 146 | 135 |
Intangible assets other than goodwill at end of period | 152 | 146 |
Accumulated depreciation, amortisation and impairment [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (6,294) | (5,886) |
Intangible assets other than goodwill at end of period | (7,077) | (6,294) |
Accumulated depreciation, amortisation and impairment [member] | Brand names [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (481) | (437) |
Intangible assets other than goodwill at end of period | (507) | (481) |
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 | (1,447) | (1,385) |
Intangible assets other than goodwill at end of period | (1,665) | (1,447) |
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 | (1,605) | (1,565) |
Intangible assets other than goodwill at end of period | (1,845) | (1,605) |
Accumulated depreciation, amortisation and impairment [member] | Product development [Member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (2,102) | (1,897) |
Intangible assets other than goodwill at end of period | (2,212) | (2,102) |
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 | (91) | (83) |
Intangible assets other than goodwill at end of period | (146) | (91) |
Accumulated depreciation, amortisation and impairment [member] | Computer software [member] | ||
Intangible assets excluding goodwill [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (467) | (427) |
Intangible assets other than goodwill at end of period | (589) | (467) |
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 | (101) | (91) |
Intangible assets other than goodwill at end of period | € (113) | € (101) |
Other financial assets - Text D
Other financial assets - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other financial assets [Abstract] | |||
Other current financial assets | € 11 | € 2 | |
Non-current investments in equity instruments designated at fair value through other comprehensive income | € 259 | € 273 |
Other financial assets - Other
Other financial assets - Other non-current financial assets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other financial assets [Line Items] | |||
Non-current financial assets at fair value through profit or loss | € 322 | € 283 | € 248 |
Non-current financial assets measured at fair value through other comprehensive income | 284 | 300 | 146 |
Non-current financial assets at amortised cost | 54 | 47 | 37 |
Other non-current financial assets | 660 | 630 | € 430 |
Acquisitions | 150 | 123 | |
Sales redemptions | 86 | 126 | |
Value adjustment through OCI | (35) | (43) | |
Value adjustment through P&L | 5 | 95 | |
Translation Differences And Other | 2 | 29 | |
Reclassifications | (2) | 122 | |
Financial assets impaired [member] | |||
Other financial assets [Line Items] | |||
Impairment loss on financial assets | (5) | ||
Financial assets at fair value through profit or loss, category [member] | |||
Other financial assets [Line Items] | |||
Acquisitions | 114 | 54 | |
Sales redemptions | 75 | 122 | |
Value adjustment through OCI | 0 | ||
Value adjustment through P&L | 5 | 95 | |
Translation Differences And Other | (2) | 8 | |
Reclassifications | 1 | (1) | |
Financial assets at fair value through profit or loss, category [member] | Financial assets impaired [member] | |||
Other financial assets [Line Items] | |||
Impairment loss on financial assets | (3) | ||
Financial assets at fair value through other comprehensive income, category [member] | |||
Other financial assets [Line Items] | |||
Acquisitions | 18 | 59 | |
Sales redemptions | 3 | 0 | |
Value adjustment through OCI | (35) | (43) | |
Translation Differences And Other | 5 | 19 | |
Reclassifications | (2) | 120 | |
Financial assets at amortised cost, category [member] | |||
Other financial assets [Line Items] | |||
Acquisitions | 18 | 10 | |
Sales redemptions | 8 | 3 | |
Value adjustment through OCI | 0 | ||
Value adjustment through P&L | 0 | 0 | |
Translation Differences And Other | (1) | 2 | |
Reclassifications | (1) | € 2 | |
Financial assets at amortised cost, category [member] | Financial assets impaired [member] | |||
Other financial assets [Line Items] | |||
Impairment loss on financial assets | € (1) |
Other assets - Text Details (De
Other assets - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other assets [Line Items] | ||
Current contract assets | € 292 | € 290 |
Non-current assets [member] | ||
Other assets [Line Items] | ||
Non-current prepaid expenses | 98 | 129 |
Current assets [Member] | ||
Other assets [Line Items] | ||
Other current assets | 490 | 493 |
Accrued income including contract assets | 24 | 31 |
Current prepaid expenses | € 174 | € 172 |
Inventories - Text Details (Det
Inventories - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Inventories [Abstract] | ||
Inventory write-down | € 215 | € 177 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories [Abstract] | ||
Current raw materials and current production supplies | € 1,541 | € 1,143 |
Current work in progress | 648 | 646 |
Current finished goods | 1,860 | 1,660 |
Current inventories | € 4,049 | € 3,450 |
Receivables - Text Details (Det
Receivables - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Line Items] | |||
Signify indemnification | € 26 | € 46 | |
Advance income tax payment | 126 | 78 | € 78 |
Non-current interest receivable | 10 | ||
Trade and other current receivables | 4,115 | 3,787 | |
Current trade receivables | 3,832 | 3,559 | |
Other current receivables | 228 | 188 | |
Financial assets individually assessed for credit losses [member] | |||
Receivables [Line Items] | |||
Allowance account for credit losses of financial assets | 222 | 188 | |
Diagnosis & Treatment [Member] | |||
Receivables [Line Items] | |||
Loans and advances to customers | 70 | 44 | |
Current trade receivables | 2,013 | 1,759 | |
Other US [Member] | |||
Receivables [Line Items] | |||
Insurance receivables | 30 | 37 | |
Associates [member] | |||
Receivables [Line Items] | |||
Other current receivables | € 55 | € 40 |
Receivables - Trade accounts re
Receivables - Trade accounts receivable, net (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Line Items] | ||
Current trade receivables | € 3,832 | € 3,559 |
Diagnosis & Treatment [Member] | ||
Receivables [Line Items] | ||
Current trade receivables | 2,013 | 1,759 |
Connected Care [Member] | ||
Receivables [Line Items] | ||
Current trade receivables | 1,114 | 980 |
Personal Health [Member] | ||
Receivables [Line Items] | ||
Current trade receivables | 479 | 575 |
Other Segments [member] | ||
Receivables [Line Items] | ||
Current trade receivables | € 226 | € 245 |
Receivables - Aging analysis (D
Receivables - Aging analysis (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Line Items] | ||
Current trade receivables | € 3,832 | € 3,559 |
Current [member] | ||
Receivables [Line Items] | ||
Current trade receivables | 3,280 | 3,075 |
Not later than one month [member] | ||
Receivables [Line Items] | ||
Current trade receivables | 169 | 160 |
Later than one month and not later than six months [member] | ||
Receivables [Line Items] | ||
Current trade receivables | 282 | 245 |
Later than six months [member] | ||
Receivables [Line Items] | ||
Current trade receivables | € 101 | € 79 |
Receivables - Allowance for acc
Receivables - Allowance for accounts receivable (Detail) - Doubtful accounts receivable [Member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Receivables [Line Items] | |||
Allowance account for credit losses of financial assets at beginning of period | € 190 | € 195 | |
Additional allowance recognised in profit or loss, allowance account for credit losses of financial assets | 66 | 4 | |
Utilisation, allowance account for credit losses of financial assets | [1] | (51) | (17) |
Increase (decrease) through other changes, allowance account for credit losses of financial assets | 21 | 16 | |
Allowance account for credit losses of financial assets at end of period | € 226 | 190 | |
Assets and liabilities classified as held for sale [member] | |||
Receivables [Line Items] | |||
Increase (decrease) through other changes, 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 | 12 Months Ended | ||||||||||||
Dec. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2022 | Oct. 26, 2022 | Jun. 13, 2022 | Nov. 23, 2021 | Sep. 30, 2021 | Jul. 26, 2021 | Dec. 31, 2019 | Jan. 29, 2019 | ||
Equity [Line Items] | |||||||||||||||
Number of shares authorised | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||||
Notional amount | € 500 | € 500 | |||||||||||||
Number of shares purchased through forward contracts | 3,200,000 | 2,000,000 | 3,200,000 | 2,000,000 | 1,750,000 | ||||||||||
Forward price for unsettled (open) forward contracts | € 19.75 | € 44.85 | € 19.75 | € 44.85 | € 34.85 | ||||||||||
Increase (Decrease) retained earnings connected to long-term incentive | € 57 | € 57 | € 61 | ||||||||||||
Purchase of treasury shares | € 24 | 757 | € 130 | ||||||||||||
The number of shares bought back after selling (unwinding) of options | 392,445 | ||||||||||||||
Reduction of treasury shares | 8,800,000 | ||||||||||||||
Cancellation of treasury shares | € 299 | ||||||||||||||
Borrowings | € 8,201 | € 6,980 | € 8,201 | € 6,980 | € 6,934 | € 1,000 | |||||||||
Percentage of shareholders electing share dividend | 45% | ||||||||||||||
Number of shares issued | 14,174,568 | 14,174,568 | 18,080,198 | ||||||||||||
Settlement of cash dividend | € 411 | ||||||||||||||
Dividends paid, ordinary shares per share | [1] | € 0.85 | € 0.85 | € 0.85 | |||||||||||
Dividends paid, ordinary shares | € 758 | ||||||||||||||
Shareholder equity subject to limitations | € 3,054 | 1,947 | € 3,054 | € 1,947 | |||||||||||
Shareholder Equity Subject To Limitations Ordinary Shares | 178 | 177 | 178 | 177 | |||||||||||
Legal reserves required by Dutch law | 1,010 | 654 | 1,010 | 654 | |||||||||||
Equity | 13,283 | 14,475 | 13,283 | 14,475 | 11,901 | € 12,625 | |||||||||
Currency translation differences | 1,117 | 1,117 | |||||||||||||
Purchase forward contracts [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Notional amount | € 211 | € 203 | € 211 | € 203 | € 174 | € 63 | € 90 | ||||||||
Share buyback program [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Borrowings | € 1,500 | € 1,500 | |||||||||||||
Euro [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of call options unwound | 239,880 | 239,880 | |||||||||||||
Number of options outstanding | 55,750 | 55,750 | |||||||||||||
US Dollar [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of call options unwound | 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 | 2,000,000,000 | ||||||||||
Number of shares issued and fully paid | 889,315,082 | 883,898,969 | 889,315,082 | 883,898,969 | 911,053,001 | ||||||||||
Par value per share | € 0.2 | € 0.2 | |||||||||||||
Treasury shares [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Purchase of treasury shares | € 24 | € 758 | € 130 | ||||||||||||
Cancellation of treasury shares | 299 | 1,228 | 152 | ||||||||||||
Equity | € (275) | € (476) | (275) | € (476) | € (199) | (201) | |||||||||
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 | 187 | ||||||||||||||
Cash inflow for settlement of share-based compensation plans | € 12 | ||||||||||||||
Share repurchase LTI [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of treasury shares | 3,200,000 | 3,200,000 | |||||||||||||
Share repurchase LTI [Member] | Performance share plans [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of shares purchased through forward contracts | 7,000,000 | 7,000,000 | |||||||||||||
Share repurchase LTI 2021 [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of treasury shares | 2,000,000 | 2,000,000 | |||||||||||||
Share repurchase LTI 2021 [Member] | Performance share plans [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of shares purchased through forward contracts | 5,500,000 | 5,500,000 | |||||||||||||
Share repurchase LTI 2020 [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of treasury shares | 6,000,000 | ||||||||||||||
Share repurchase LTI 2022 [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of treasury shares | 3,300,000 | 3,300,000 | |||||||||||||
Share repurchase program [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of treasury shares | 2,200,000 | 1,500,000 | 2,200,000 | 1,500,000 | |||||||||||
Notional amount | € 83 | € 781 | € 83 | € 781 | |||||||||||
Purchase of treasury shares | 1,500 | ||||||||||||||
Purchase of treasury shares, number of | 800,000 | 21,000,000 | |||||||||||||
Forward share repurchase contracts [Member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Number of treasury shares | 20,000,000 | ||||||||||||||
Notional amount | € 731 | ||||||||||||||
Forward price for unsettled (open) forward contracts | € 37.36 | ||||||||||||||
Purchased call options [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Additional cash payment for call options sale | 6 | ||||||||||||||
Reserve of exchange differences on translation [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Equity | 1,866 | € 1,117 | 1,866 | 1,117 | € (58) | 978 | |||||||||
Reserve of cash flow hedges [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Equity | (2) | (25) | (2) | (25) | 23 | (24) | |||||||||
Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Equity | € (376) | € (344) | € (376) | € (344) | € (305) | € (303) | |||||||||
Dividend distribution [Member] | Bottom of range [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Dividend payout ratio | 40% | ||||||||||||||
Dividend distribution [Member] | Top of range [member] | |||||||||||||||
Equity [Line Items] | |||||||||||||||
Dividend payout ratio | 50% | ||||||||||||||
[1] 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Line Items] | |||
Issuance of new shares | 48,757 | ||
Ordinary shares [member] | |||
Equity [Line Items] | |||
Number of shares outstanding at end of period | 881,480,527 | 870,182,445 | 905,128,293 |
Dividend distributed | 14,174,568 | 6,345,968 | 18,080,198 |
Purchase of treasury shares, number of | (5,080,693) | (45,486,392) | (8,669,622) |
Re-issuance of treasury shares, number of | 2,204,207 | 4,194,577 | 4,695,170 |
Equity - Transactions related t
Equity - Transactions related to share-based compensation plans (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Line Items] | |||
Purchase of treasury shares | € 24 | € 757 | € 130 |
Treasury shares for share-based payments [Member] | |||
Equity [Line Items] | |||
Shares acquired | 2,142,445 | 3,996,576 | 5,351,411 |
Average market price | € 31.76 | € 36.15 | € 33.81 |
Purchase of treasury shares | € 68 | € 144 | € 181 |
Shares delivered | 2,204,207 | 4,194,577 | 4,695,170 |
Average price (FIFO) | € 35.16 | € 34.14 | € 34.35 |
Cost of delivered shares | € 77 | € 143 | € 161 |
Shares in treasury, at the end of the period | 5,664,946 | 5,726,708 | 5,924,708 |
Cost of treasury shares for employee options | € 191 | € 201 | € 199 |
Equity - Transactions related_2
Equity - Transactions related to capital reduction (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Line Items] | |||
Purchase of treasury shares | € 24 | € 757 | € 130 |
Reduction of treasury shares | 8,800,000 | ||
Cancellation of treasury shares | € 299 | ||
Treasury shares transactions [Member] | |||
Equity [Line Items] | |||
Shares acquired | 2,938,248 | 41,489,816 | 3,318,211 |
Average market price | € 36.61 | € 36.22 | € 39.21 |
Purchase of treasury shares | € 108 | € 1,503 | € 130 |
Reduction of treasury shares | 8,758,455 | 33,500,000 | 3,809,675 |
Cancellation of treasury shares | € 299 | € 1,216 | € 152 |
Shares in treasury, at the end of the period | 2,169,609 | 7,989,816 | |
Total cost | € 83 | € 287 |
Equity - Composition of net deb
Equity - Composition of net debt and group equity (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2022 | Dec. 31, 2019 | |
Equity [Abstract] | |||||
Non-current portion of non-current borrowings | € 7,270 | € 6,473 | € 5,705 | ||
Current borrowings and current portion of non-current borrowings | 931 | 506 | 1,229 | ||
Borrowings | 8,201 | 6,980 | 6,934 | € 1,000 | |
Cash and cash equivalents | 1,172 | 2,303 | 3,226 | € 1,425 | |
Net debt | 7,028 | 4,676 | 3,708 | ||
Equity attributable to owners of parent | 13,249 | 14,438 | 11,870 | ||
Non-controlling interests | 34 | 36 | 31 | ||
Equity | € 13,283 | € 14,475 | € 11,901 | € 12,625 | |
Net debt and group equity ratio | 35:65 | 24:76 | 24:76 |
Equity - Adjusted income from c
Equity - Adjusted income from continuing operations attributable to shareholders (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Equity [Line Items] | |||||||
Profit (loss) | € (1,605) | [1] | € 3,323 | [2] | € 1,195 | [2] | |
Profit (loss) from discontinued operations | 13 | [2] | 2,711 | [2] | 196 | [1] | |
Profit (loss) from continuing operations | (1,618) | [2] | 612 | [1] | 999 | [2] | |
Income from continuing operations attributable to non-controlling interests | [2] | (3) | (4) | (8) | |||
Income from continuing operations attributable to owners of parent | [2] | (1,622) | 608 | 991 | |||
Amortization of acquired intangible assets | [2] | 363 | 322 | 377 | |||
Impairment loss recognised in profit or loss, goodwill | [2] | 1,357 | 15 | 144 | |||
Restructuring and acquisition-related charges | [2] | 202 | 95 | 195 | |||
Other items | [2] | 925 | 1,069 | 299 | |||
Net finance expenses | [2] | (4) | (84) | (125) | |||
Tax impact of adjusted items | [2] | (376) | (527) | (285) | |||
Adjusted Income from continuing operations attributable to shareholders | [2] | 845 | 1,497 | 1,594 | |||
Respironics field-action provision [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 250 | 719 | ||||
Respironics field-action running remediation costs [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 210 | 94 | ||||
R&D project impairments [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 134 | |||||
Portfolio realignment charges [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 109 | |||||
Impairment of assets in S&RC [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 39 | |||||
Provision for public investigations tender irregularities [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 60 | |||||
Provisions for quality actions in Connected Care [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 59 | 94 | ||||
Loss on divestment of business [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | 76 | |||||
Remaining items [Member] | |||||||
Equity [Line Items] | |||||||
Other items | [2] | € 63 | € 87 | € 299 | |||
[1] Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Debt - Text Details (Detail)
Debt - Text Details (Detail) € in Millions, $ in Billions | 12 Months Ended | |||||||||||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Oct. 31, 2022 EUR (€) | Sep. 30, 2022 EUR (€) | Jun. 13, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Nov. 23, 2021 EUR (€) | Jul. 26, 2021 EUR (€) | May 19, 2021 EUR (€) | Feb. 28, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Mar. 09, 2020 EUR (€) | Jan. 29, 2019 EUR (€) | |
Debt [Line Items] | ||||||||||||||
Notional amount | € 500 | € 500 | ||||||||||||
Borrowings | 8,201 | 8,201 | € 6,980 | € 1,000 | € 6,934 | |||||||||
Euro Medium-Term Note program | € 2,000 | € 2,000 | € 10,000 | |||||||||||
Change of Control Triggering Event, potentially required purchase price related to principal amount | 101% | 101% | ||||||||||||
Increase (Decrease) retained earnings connected to long-term incentive | € 57 | € 57 | € 61 | |||||||||||
Weighted average [member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Borrowings, interest rate | 2.40% | 2.40% | 2.10% | 2.10% | ||||||||||
Share repurchase program [member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Notional amount | € 83 | € 83 | € 781 | |||||||||||
Commercial Paper Programme [Member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Notional amount | € 101 | € 200 | $ 2.5 | |||||||||||
Committed revolving credit facility [Member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Undrawn borrowing facilities | 1,000 | 1,000 | 1,000 | |||||||||||
Purchase forward contracts [Member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Notional amount | € 211 | € 211 | 203 | € 63 | € 90 | € 174 | ||||||||
Purchase forward contracts [Member] | Forward contract [member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Notional amount | 123 | |||||||||||||
Purchase forward contracts [Member] | Share repurchase LTI 2021 [Member] | Forward contract [member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Notional amount | € 90 | |||||||||||||
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] | ||||||||||||||
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 | |||||||||||||
Bank borrowings [Member] | Weighted average [member] | ||||||||||||||
Debt [Line Items] | ||||||||||||||
Borrowings, interest rate | 5.70% | 5.70% | 1.20% | 1.20% |
Debt - Long-term debt (Detail)
Debt - Long-term debt (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | € 8,111 | € 6,933 | |
Non-current portion of non-current borrowings | € 7,270 | 6,473 | € 5,705 |
Borrowings, maturity | 6.1 | ||
Current portion of non-current borrowings | € 842 | 459 | |
Forward contract [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 858 | 934 | |
Non-current portion of non-current borrowings | 252 | 738 | |
Current portion of non-current borrowings | 606 | 196 | |
Lease liabilities [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 1,082 | 1,220 | |
Non-current portion of non-current borrowings | 852 | 963 | |
Current portion of non-current borrowings | 230 | 257 | |
Bank borrowings [Member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 705 | 203 | |
Non-current portion of non-current borrowings | 702 | 202 | |
Current portion of non-current borrowings | 2 | 1 | |
Other long-term debt [Member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 28 | 30 | |
Non-current portion of non-current borrowings | 24 | 26 | |
Current portion of non-current borrowings | 4 | 5 | |
US Dollar [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 1,378 | 1,313 | |
Euro [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | € 4,061 | € 3,233 | |
Weighted average [member] | |||
Debt [Line Items] | |||
Borrowings, maturity | 6.1 | 6.0 | |
Borrowings, interest rate | 2.40% | 2.10% | |
Weighted average [member] | Forward contract [member] | |||
Debt [Line Items] | |||
Borrowings, maturity | 1.0 | 1.6 | |
Weighted average [member] | Lease liabilities [member] | |||
Debt [Line Items] | |||
Borrowings, maturity | 3.9 | 4.2 | |
Borrowings, interest rate | 2.40% | 2.10% | |
Weighted average [member] | Bank borrowings [Member] | |||
Debt [Line Items] | |||
Borrowings, maturity | 1.9 | 3.2 | |
Borrowings, interest rate | 1.70% | 0.10% | |
Weighted average [member] | Other long-term debt [Member] | |||
Debt [Line Items] | |||
Borrowings, maturity | 8.9 | 8.6 | |
Borrowings, interest rate | 2.90% | 3.50% | |
Weighted average [member] | US Dollar [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Borrowings, maturity | 14.3 | 15.1 | |
Borrowings, interest rate | 6.30% | 6.30% | |
Weighted average [member] | Euro [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Borrowings, maturity | 5.7 | 4.4 | |
Borrowings, interest rate | 1.70% | 1% | |
Later than one year [member] | US Dollar [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | € 1,378 | € 1,313 | |
Later than one year [member] | Euro [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | 4,061 | 3,233 | |
Later than one year and not later than five years [member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | 3,562 | 4,034 | |
Later than one year and not later than five years [member] | Forward contract [member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | 252 | 738 | |
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 | 505 | 580 | |
Non-current portion of non-current borrowings | 504 | 580 | |
Later than one year and not later than five years [member] | Bank borrowings [Member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | 702 | 202 | |
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 | 17 | 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 | 250 | 255 | |
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 | 1,836 | 2,242 | |
Later than five years [member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | 3,706 | 2,439 | |
Later than five years [member] | Lease liabilities [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 348 | 383 | |
Non-current portion of non-current borrowings | 348 | 383 | |
Later than five years [member] | Other long-term debt [Member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | 6 | 8 | |
Later than five years [member] | US Dollar [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | 1,128 | 1,058 | |
Later than five years [member] | Euro [Member] | Bonds [Member] | |||
Debt [Line Items] | |||
Non-current portion of non-current borrowings | € 2,225 | € 991 |
Debt - Unsecured Bonds (Detail)
Debt - Unsecured Bonds (Detail) - EUR (€) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 7,270,000,000 | € 6,473,000,000 | € 5,705,000,000 | |
Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 5,439,000,000 | 4,545,000,000 | ||
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 | |||
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 | |||
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 | € 346,000,000 | 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 | |||
Euro [Member] | Unsecured EUR Bonds Due 05/05/2027 1 7/8% [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 750,000,000 | |||
Euro [Member] | Unsecured EUR Bonds Due 05/05/2027 1 7/8% [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 2.049% | |||
Euro [Member] | Unsecured EUR Bonds Due 05/11/2029 2 1/8% [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 650,000,000 | |||
Euro [Member] | Unsecured EUR Bonds Due 05/11/2029 2 1/8% [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 2.441% | |||
Euro [Member] | Unsecured EUR Bonds Due 05/05/2033 2 5/8% [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Non-current portion of non-current borrowings | € 600,000,000 | |||
Euro [Member] | Unsecured EUR Bonds Due 05/05/2033 2 5/8% [Member] | Effective interest rate [Member] | Long-term borrowings [member] | ||||
Debt [Line Items] | ||||
Borrowings, interest rate | 2.71% | |||
US Dollar [Member] | Unsecured bonds [Member] | ||||
Debt [Line Items] | ||||
Unsecured bonds adjustments | [1] | € (57,000,000) | (37,000,000) | |
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 | € 51,000,000 | 56,000,000 | ||
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 | € 119,000,000 | 120,000,000 | ||
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 | € 78,000,000 | 74,000,000 | ||
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 | € 683,000,000 | 641,000,000 | ||
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 | € 470,000,000 | € 441,000,000 | ||
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] 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, 2022 | Dec. 31, 2021 | |
Debt [Line Items] | |||
Gross lease liabilities | € 1,180 | € 1,333 | |
Current interest payable | [1],[2] | 1,683 | |
Long-term debt including current portion of long-term debt | 8,111 | 6,933 | |
Interest payable | 71 | 52 | |
Lease liabilities [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 1,082 | 1,220 | |
Interest payable | 98 | 113 | |
Not later than one year [member] | |||
Debt [Line Items] | |||
Gross lease liabilities | 251 | 280 | |
Current interest payable | [1],[2] | 159 | |
Not later than one year [member] | Lease liabilities [member] | |||
Debt [Line Items] | |||
Current interest payable | 21 | 22 | |
Long-term debt including current portion of long-term debt | 230 | 257 | |
Later than one year and not later than five years [member] | |||
Debt [Line Items] | |||
Gross lease liabilities | 554 | 636 | |
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 | 505 | 580 | |
Non-current interest payable | 49 | 56 | |
Later than five years [member] | |||
Debt [Line Items] | |||
Gross lease liabilities | 376 | 417 | |
Current interest payable | [1],[2] | 956 | |
Later than five years [member] | Lease liabilities [member] | |||
Debt [Line Items] | |||
Long-term debt including current portion of long-term debt | 348 | 383 | |
Non-current interest payable | € 28 | € 34 | |
[1] Amounts in this table are undiscounted 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt [Abstract] | |||
Short-term bank borrowings | € 89 | € 47 | |
Current portion of non-current borrowings | 842 | 459 | |
Current borrowings and current portion of non-current borrowings | € 931 | € 506 | € 1,229 |
Provisions - Text Details (Deta
Provisions - Text Details (Detail) € in Millions | 12 Months Ended | |||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2025 | Dec. 31, 2023 EUR (€) | |
Provisions [Line Items] | ||||
Percentage of production completed | 90% | |||
Number of replaced and repaired devices | 5,600,000 | |||
Number of units to be remediated | 400,000 | |||
Replacement devices share percentage | 60% | 46% | ||
Remediation costs | € 210 | € 94 | ||
Effect of change in accounting estimate, remaining duration | 30 years | |||
Number of employees reduced | 4,000 | 6,000 | 3,000 | |
Expected restructuring provision | € 130 | € 470 | ||
Restructuring provision | 80 | |||
Change in Fair value on contingent consideration | € (86) | € (78) | ||
Previously stated [member] | ||||
Provisions [Line Items] | ||||
Effect of change in accounting estimate, remaining duration | 60 years | |||
Not later than five years [Member] | ||||
Provisions [Line Items] | ||||
Provision utilization period | five years | |||
Warranty provision [member] | ||||
Provisions [Line Items] | ||||
Additional provisions, other provisions | € 320 | € 364 | ||
Provision used, other provisions | 224 | 265 | ||
Warranty provision [member] | Connected Care [Member] | ||||
Provisions [Line Items] | ||||
Additional provisions, other provisions | 108 | |||
Other environment related provision [member] | ||||
Provisions [Line Items] | ||||
Additional provisions, other provisions | 15 | 18 | ||
Provision used, other provisions | 17 | 15 | ||
Unused provision reversed, other provisions | 2 | 64 | ||
Other environment related provision [member] | Increase (decrease) due to voluntary changes in accounting policy [member] | ||||
Provisions [Line Items] | ||||
Unused provision reversed, other provisions | 55 | |||
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 | |||
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 | |||
Other environment related provision [member] | Later than one year and not later than five years [member] | ||||
Provisions [Line Items] | ||||
Provision used, other provisions | € 73 | |||
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 | 89 | € 43 | ||
Provision used, other provisions | 100 | 17 | ||
Unused provision reversed, other provisions | 3 | € 48 | ||
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 | 105 | € 48 | ||
Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | ||||
Provisions [Line Items] | ||||
Change in Fair value on contingent consideration | 61 | 45 | ||
Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | Forecasts revision [Member] | ||||
Provisions [Line Items] | ||||
Change in Fair value on contingent consideration | 30 | 14 | ||
Provisions for contingent considerations [Member] | EPD Solutions Ltd [Member] | Milestone [member] | ||||
Provisions [Line Items] | ||||
Change in Fair value on contingent consideration | 31 | € 31 | ||
Provisions for contingent considerations [Member] | Not later than three years [member] | ||||
Provisions [Line Items] | ||||
Provision utilization period | three | |||
Provisions for employee jubilee funds [Member] | ||||
Provisions [Line Items] | ||||
Other provisions | € 83 | € 94 | ||
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 | € 57 | 43 | ||
Provision for taxes other than income tax [member] | ||||
Provisions [Line Items] | ||||
Other provisions | 46 | 37 | ||
Provisions for rights of return [Member] | ||||
Provisions [Line Items] | ||||
Other provisions | € 36 | 40 | ||
Provisions for rights of return [Member] | Not later than one year [member] | ||||
Provisions [Line Items] | ||||
Provision utilization period | year | |||
Provision for decommissioning, restoration and rehabilitation costs [member] | ||||
Provisions [Line Items] | ||||
Other provisions | € 33 | 33 | ||
Provision for decommissioning, restoration and rehabilitation costs [member] | Later than five years [member] | ||||
Provisions [Line Items] | ||||
Provision utilization period | five years | |||
Onerous contracts provision [member] | ||||
Provisions [Line Items] | ||||
Other provisions | € 38 | € 12 |
Provisions - Provisions (Detail
Provisions - Provisions (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | ||||
Non-current provisions | € 1,097 | € 1,315 | ||
Provisions | 2,115 | 2,313 | ||
Current provisions | 1,018 | 998 | ||
Respironics field action [Member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | 23 | 52 | ||
Provisions | 390 | 577 | € 0 | |
Current provisions | 366 | 525 | ||
Post-employement benefit [Member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | [1] | 546 | 659 | |
Provisions | [1] | 546 | 659 | |
Warranty provision [member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | 57 | 32 | ||
Provisions | 344 | 238 | 167 | |
Current provisions | 287 | 207 | ||
Other environment related provision [member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | 83 | 99 | ||
Provisions | 104 | 124 | 183 | |
Current provisions | 20 | 26 | ||
Restructuring provision [member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | 6 | 8 | ||
Provisions | 140 | 66 | 117 | |
Current provisions | 134 | 58 | ||
Legal proceedings provision [member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | 14 | 53 | ||
Provisions | 89 | 91 | 72 | |
Current provisions | 74 | 39 | ||
Provisions for contingent considerations [Member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | 89 | 156 | ||
Provisions | 113 | 208 | € 318 | |
Current provisions | 23 | 52 | ||
Miscellaneous other provisions [member] | ||||
Provisions [Line Items] | ||||
Non-current provisions | 279 | 257 | ||
Provisions | 390 | 349 | ||
Current provisions | € 112 | € 92 | ||
[1] For more details refer to Post-employment benefits |
Provisions - Respironics field-
Provisions - Respironics field-action provision (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions [Line Items] | ||
Provisions, at the start of the period | € 2,313 | |
Provisions, at the end of the period | 2,115 | € 2,313 |
Respironics field action [Member] | ||
Provisions [Line Items] | ||
Provisions, at the start of the period | 577 | 0 |
Additional provisions, other provisions | 250 | 719 |
Provision used, other provisions | (486) | (175) |
Increase (decrease) through net exchange differences, other provisions | 49 | 33 |
Provisions, at the end of the period | € 390 | € 577 |
Provisions - Main assumptions (
Provisions - Main assumptions (Detail) - Respironics field action [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Ten percentage point increase [Member] | ||
Provisions [Line Items] | ||
Sensitivity analysis effect of change in main assumption | 10% | |
Ten percentage point increase [Member] | Total number of devices [Member] | ||
Provisions [Line Items] | ||
Sensitivity analysis effect of change in main assumption | 2,600% | |
Ten percentage point increase [Member] | Replacement share [Member] | ||
Provisions [Line Items] | ||
Sensitivity analysis effect of change in main assumption | 1,200% | |
Ten percentage point decrease [Member] | ||
Provisions [Line Items] | ||
Sensitivity analysis effect of change in main assumption | (10.00%) | |
Ten percentage point decrease [Member] | Total number of devices [Member] | ||
Provisions [Line Items] | ||
Sensitivity analysis effect of change in main assumption | (2600.00%) | |
Ten percentage point decrease [Member] | Replacement share [Member] | ||
Provisions [Line Items] | ||
Sensitivity analysis effect of change in main assumption | (1200.00%) |
Provisions - Provisions for ass
Provisions - Provisions for assurance-type product warranty (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions [Line Items] | ||
Provisions, at the start of the period | € 2,313 | |
Provisions, at the end of the period | 2,115 | € 2,313 |
Warranty provision [member] | ||
Provisions [Line Items] | ||
Provisions, at the start of the period | 238 | 167 |
Additional provisions, other provisions | 320 | 364 |
Provision used, other provisions | 224 | 265 |
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 | 9 | 10 |
Provisions, at the end of the period | € 344 | € 238 |
Provisions - Environmental prov
Provisions - Environmental provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions [Line Items] | ||
Provisions, at the start of the period | € 2,313 | |
Provisions, at the end of the period | 2,115 | € 2,313 |
Other environment related provision [member] | ||
Provisions [Line Items] | ||
Provisions, at the start of the period | 124 | 183 |
Additional provisions, other provisions | 15 | 18 |
Provision used, other provisions | 17 | 15 |
Unused provision reversed, other provisions | 2 | 64 |
Increase (decrease) through change in discount rate, other provisions | (27) | (10) |
Increase through adjustments arising from passage of time, other provisions | 4 | 3 |
Increase (decrease) through net exchange differences, other provisions | 7 | 9 |
Provisions, at the end of the period | € 104 | € 124 |
Provisions - Restructuring-rela
Provisions - Restructuring-related provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions [Line Items] | |||
Provisions | € 2,115 | € 2,313 | |
Restructuring provision [member] | |||
Provisions [Line Items] | |||
Provisions | 140 | 66 | € 117 |
Additional provisions, other provisions | 154 | 55 | |
Provision used, other provisions | 61 | 73 | |
Unused provision reversed, other provisions | 18 | 39 | |
Increase (decrease) through transfers and other changes, other provisions | (1) | 6 | |
Restructuring provision [member] | Diagnosis & Treatment [Member] | |||
Provisions [Line Items] | |||
Provisions | 49 | 26 | 33 |
Additional provisions, other provisions | 58 | 23 | |
Provision used, other provisions | 27 | 19 | |
Unused provision reversed, other provisions | 8 | 13 | |
Increase (decrease) through transfers and other changes, other provisions | 0 | 1 | |
Restructuring provision [member] | Connected Care [Member] | |||
Provisions [Line Items] | |||
Provisions | 34 | 17 | 17 |
Additional provisions, other provisions | 34 | 16 | |
Provision used, other provisions | 13 | 12 | |
Unused provision reversed, other provisions | 3 | 4 | |
Increase (decrease) through transfers and other changes, other provisions | (1) | 0 | |
Restructuring provision [member] | Personal Health [Member] | |||
Provisions [Line Items] | |||
Provisions | 10 | 9 | 28 |
Additional provisions, other provisions | 9 | 6 | |
Provision used, other provisions | 7 | 21 | |
Unused provision reversed, other provisions | 2 | 6 | |
Increase (decrease) through transfers and other changes, other provisions | 0 | 2 | |
Restructuring provision [member] | Other [Member] | |||
Provisions [Line Items] | |||
Provisions | 47 | 14 | € 38 |
Additional provisions, other provisions | 52 | 10 | |
Provision used, other provisions | 14 | 21 | |
Unused provision reversed, other provisions | 5 | 16 | |
Increase (decrease) through transfers and other changes, other provisions | € 0 | € 4 |
Provisions - Legal provisions (
Provisions - Legal provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions [Line Items] | ||
Provisions, at the start of the period | € 2,313 | |
Acquisitions | 150 | € 123 |
Provisions, at the end of the period | 2,115 | 2,313 |
Legal proceedings provision [member] | ||
Provisions [Line Items] | ||
Provisions, at the start of the period | 91 | 72 |
Additional provisions, other provisions | 89 | 43 |
Acquisitions | 4 | 38 |
Provision used, other provisions | 100 | 17 |
Unused provision reversed, other provisions | 3 | 48 |
Increase through adjustments arising from passage of time, other provisions | 0 | 1 |
Increase (decrease) through net exchange differences, other provisions | 7 | 3 |
Provisions, at the end of the period | € 89 | € 91 |
Provisions - Contingent conside
Provisions - Contingent consideration provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions [Line Items] | ||
Provisions, at the start of the period | € 2,313 | |
Acquisitions | 150 | € 123 |
Change in Fair value on contingent consideration | (86) | (78) |
Provisions, at the end of the period | 2,115 | 2,313 |
Provisions for contingent considerations [Member] | ||
Provisions [Line Items] | ||
Provisions, at the start of the period | 208 | 318 |
Acquisitions | 96 | 16 |
Provision used, other provisions | 105 | 48 |
Provisions, at the end of the period | € 113 | € 208 |
Provisions - Other provisions (
Provisions - Other provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Provisions [Line Items] | ||
Provisions, at the start of the period | € 2,313 | |
Provisions, at the end of the period | 2,115 | € 2,313 |
Miscellaneous other provisions [member] | ||
Provisions [Line Items] | ||
Provisions, at the start of the period | 349 | |
Additional provisions, other provisions | 160 | 89 |
Provision used, other provisions | 95 | 87 |
Unused provision reversed, other provisions | 35 | 29 |
Increase through adjustments arising from passage of time, other provisions | (3) | (5) |
Increase (decrease) through net exchange differences, other provisions | 14 | 9 |
Provisions, at the end of the period | € 390 | 349 |
Miscellaneous other provisions [member] | IFRS 16 [Member] | ||
Provisions [Line Items] | ||
Provisions, at the start of the period | € 372 |
Post-employment benefits - Text
Post-employment benefits - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Post-employment benefits [Line Items] | ||||
Percentage of unquoted assets | 32% | 29% | ||
Actuarial assumption of mortality rates | 0.10 | |||
Description of methods and assumptions used in preparing sensitivity analysis for actuarial assumptions | 1% | |||
Weighted average duration of defined benefit obligation | 8 years | 11 years | ||
Employer contributions | € 464 | |||
Current service cost, defined benefit plans | 29 | |||
Interest expense (income), defined benefit plans | 21 | |||
Wholly or partly funded defined benefit plans [member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | 19 | |||
Unfunded defined-benefit plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | 43 | |||
Defined contribution plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | 402 | |||
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] | ||||
Actuarial assumption of mortality rates | 0.93 | |||
Weighted average duration of defined benefit obligation | 9 years | |||
Employer contributions | 7 | |||
Germany [Member] | Unfunded defined-benefit plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | € 20 | |||
Germany [Member] | Bottom of range [member] | ||||
Post-employment benefits [Line Items] | ||||
Age | 60 | |||
Germany [Member] | Top of range [member] | ||||
Post-employment benefits [Line Items] | ||||
Age | 85 | |||
United States of America [Member] | ||||
Post-employment benefits [Line Items] | ||||
Weighted average duration of defined benefit obligation | 8 years | |||
Employer contributions | 0 | |||
United States of America [Member] | Unfunded defined-benefit plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | 11 | |||
United States of America [Member] | Defined contribution plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | 153 | |||
Other countries [Member] | ||||
Post-employment benefits [Line Items] | ||||
Weighted average duration of defined benefit obligation | 8 years | |||
Employer contributions | 12 | |||
Other countries [Member] | Unfunded defined-benefit plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | 12 | |||
Other countries [Member] | Defined contribution plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | 63 | |||
Netherlands [Member] | Defined contribution plans [Member] | ||||
Post-employment benefits [Line Items] | ||||
Employer contributions | € 186 |
Post-employment benefits - Post
Post-employment benefits - Post-employment benefits (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Post-employment benefits [Line Items] | |||
Present value of funded obligations | € 1,108 | € 1,370 | |
Present value of unfunded obligations | 513 | 600 | |
Net defined benefit liability (asset) | 499 | 590 | |
Value of reimbursement rights | 6 | ||
Post-employement benefit [Member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 499 | 590 | |
Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 1,621 | 1,970 | € 2,153 |
Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 1,122 | 1,380 | € 1,403 |
Germany [Member] | |||
Post-employment benefits [Line Items] | |||
Present value of funded obligations | 489 | 606 | |
Present value of unfunded obligations | 249 | 316 | |
Net defined benefit liability (asset) | 261 | 349 | |
Germany [Member] | Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 738 | 921 | |
Germany [Member] | Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 477 | 572 | |
United States of America [Member] | |||
Post-employment benefits [Line Items] | |||
Present value of funded obligations | (440) | 558 | |
Present value of unfunded obligations | 128 | 149 | |
Net defined benefit liability (asset) | 94 | 84 | |
United States of America [Member] | Post-employement benefit [Member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 94 | ||
United States of America [Member] | Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 568 | 708 | |
United States of America [Member] | Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 474 | 623 | |
Other countries [Member] | |||
Post-employment benefits [Line Items] | |||
Present value of funded obligations | (179) | 206 | |
Present value of unfunded obligations | 136 | 135 | |
Net defined benefit liability (asset) | 144 | 157 | |
Value of reimbursement rights | 6 | ||
Other countries [Member] | Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 315 | 341 | |
Other countries [Member] | Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | € 171 | € 185 |
Post-employment benefits - Clas
Post-employment benefits - Classification net position (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Post-employment benefits [Line Items] | ||
Other non-current assets | € 46 | € 69 |
Non-current provisions for employee benefits | (546) | (659) |
Net defined benefit liability (asset) | 499 | 590 |
Germany [Member] | ||
Post-employment benefits [Line Items] | ||
Other non-current assets | 9 | 3 |
Non-current provisions for employee benefits | (270) | (352) |
Net defined benefit liability (asset) | 261 | 349 |
United States of America [Member] | ||
Post-employment benefits [Line Items] | ||
Other non-current assets | 34 | 65 |
Non-current provisions for employee benefits | (128) | (149) |
Net defined benefit liability (asset) | 94 | 84 |
Other countries [Member] | ||
Post-employment benefits [Line Items] | ||
Other non-current assets | 4 | 1 |
Non-current provisions for employee benefits | (148) | (157) |
Net defined benefit liability (asset) | € 144 | € 157 |
Post-employment benefits - Pre-
Post-employment benefits - Pre-tax costs for post-employment benefits (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | € 50 | € 36 | € 74 |
Post-employment benefit expense, defined contribution plans | 400 | 375 | 366 |
Post-employment benefits costs, pre-tax | 449 | 411 | 440 |
Included in income from operations [Member] | |||
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | 39 | 28 | 59 |
Post-employment benefit expense, defined contribution plans | 400 | 368 | 358 |
Included in financial expense [Member] | |||
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | € 10 | 8 | 13 |
Included in discontinued operations [Member] | |||
Post-employment benefits [Line Items] | |||
Post-employment benefit expense in profit or loss, defined benefit plans | 1 | 1 | |
Post-employment benefit expense, defined contribution plans | € 7 | € 8 |
Post-employment benefits - Defi
Post-employment benefits - Defined benefit obligations (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | € 590 | ||
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | (10) | € (8) | € (13) |
Net defined benefit liability (asset) at end of period | 499 | 590 | |
Present value of defined benefit obligation [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | 1,970 | 2,153 | |
Increase in net defined benefit liability (asset) resulting from current service cost | 32 | 36 | |
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | 36 | 33 | |
Decrease (increase) in net defined benefit liability (asset) resulting from contributions to plan by plan participants | 4 | 7 | |
Decrease (increase) in net defined benefit liability (asset) resulting from actuarial gains (losses) arising from changes in demographic assumptions | 2 | 3 | |
Decrease (increase) in net defined benefit liability (asset) resulting from actuarial gains (losses) arising from changes in financial assumptions | (366) | (86) | |
Decrease (increase) in net defined benefit liability (asset) resulting from actuarial gains (losses) arising from experience adjustments | 12 | (6) | |
Increase (decrease) in net defined benefit liability (asset) resulting from past service cost | 16 | (5) | |
Decrease (increase) in net defined benefit liability (asset) resulting from gains (losses) arising from settlements | (90) | ||
Decrease (increase) in net defined benefit liability (asset) resulting from payments from plan | (95) | (95) | |
Benefits paid directly by employer | (41) | (33) | |
Increase (decrease) in net defined benefit liability (asset) resulting from changes in foreign exchange rates, net defined benefit liability (asset) | 52 | 52 | |
Net defined benefit liability (asset) at end of period | € 1,621 | € 1,970 | € 2,153 |
Post-employment benefits - Plan
Post-employment benefits - Plan assets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | € 590 | ||
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | (10) | € (8) | € (13) |
Net defined benefit liability (asset) at end of period | 499 | 590 | |
Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) at beginning of period | 1,380 | 1,403 | |
Increase (decrease) in net defined benefit liability (asset) resulting from interest expense (income) | 26 | 25 | |
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 | (254) | 44 | |
Decrease (increase) in net defined benefit liability (asset) resulting from contributions to plan by plan participants | 4 | 7 | |
Decrease (increase) in net defined benefit liability (asset) resulting from resulting from contributions to plan by employer | 17 | 33 | |
Decrease (increase) in net defined benefit liability (asset) resulting from gains (losses) arising from settlements | 0 | (86) | |
Decrease (increase) in net defined benefit liability (asset) resulting from payments from plan | 95 | 96 | |
Increase (decrease) in net defined benefit liability (asset) resulting from changes in foreign exchange rates, net defined benefit liability (asset) | 45 | 50 | |
Net defined benefit liability (asset) at end of period | € 1,122 | € 1,380 | € 1,403 |
Post-employment benefits - Pl_2
Post-employment benefits - Plan assets allocation (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | € 499 | € 590 | |
Plan assets [member] | |||
Post-employment benefits [Line Items] | |||
Net defined benefit liability (asset) | 1,122 | 1,380 | € 1,403 |
Plan assets [member] | Assets quoted in active market [Member] | |||
Post-employment benefits [Line Items] | |||
Debt instruments, amount contributed to fair value of plan assets | 560 | 790 | |
Equity instruments, amount contributed to fair value of plan assets | 101 | ||
Other assets, amount contributed to fair value of plan assets | 203 | 195 | |
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 | ||
Equity instruments, amount contributed to fair value of plan assets | 122 | ||
Other assets, amount contributed to fair value of plan assets | € 258 | € 272 |
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, 2022 | Dec. 31, 2021 |
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 4.70% | 1.80% |
Actuarial assumption of expected rates of inflation | 2.20% | 2% |
Actuarial assumption of expected rates of salary increases | 2.90% | 2.60% |
Germany [Member] | ||
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 4.10% | 1.10% |
Actuarial assumption of expected rates of inflation | 2% | 1.80% |
Actuarial assumption of expected rates of salary increases | 2.80% | 2.50% |
United States of America [Member] | ||
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 5.20% | 2.60% |
Actuarial assumption of expected rates of inflation | 2.30% | 2.20% |
Actuarial assumption of expected rates of salary increases | 0% | 0% |
Other countries [Member] | ||
Post-employment benefits [Line Items] | ||
Actuarial assumption of discount rates | 4.90% | 2.10% |
Actuarial assumption of expected rates of inflation | 2.60% | 2% |
Actuarial assumption of expected rates of salary increases | 3.30% | 2.90% |
Post-employment benefits - Sens
Post-employment benefits - Sensitivity of key assumptions (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
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 | € (122) | € (196) | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 145 | 241 | |
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 | 57 | 99 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (49) | (83) | |
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 | 12 | 19 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (11) | (18) | |
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] | € 32 | € 48 |
[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, 2022 | Dec. 31, 2021 |
Accrued liabilities [Line Items] | ||
Accruals | € 1,626 | € 1,784 |
Salaries and wages [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 490 | 566 |
Holiday entitlements [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 97 | 127 |
Other personnel-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 101 | 108 |
Gas, water, electricity, rent and other [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 46 | 33 |
Communication and IT costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 64 | 82 |
Distribution costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 110 | 122 |
Commission payable [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 8 | 7 |
Advertising and marketing-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 127 | 175 |
Other sales-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 20 | 20 |
Material-related costs [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 132 | 130 |
Interest-related accruals [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | 71 | 52 |
Other accrued liabilities [Member] | ||
Accrued liabilities [Line Items] | ||
Accruals | € 361 | € 362 |
Other liabilities - Text Detail
Other liabilities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other liabilities [Abstract] | ||
Other non-current non-financial liabilities | € 60 | € 56 |
Non-current contract liabilities | 515 | 446 |
Current contract liabilities | 1,696 | 1,491 |
Increase (Decrease) in current contract liabilities through operational activities | € 205 | |
Revenue that was included in contract liability balance at beginning of period | € 1,491 |
Other liabilities - Other curre
Other liabilities - Other current liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other liabilities [Abstract] | ||
Accrued customer rebates that cannot be offset with accounts receivables for those customers | € 213 | € 280 |
Other taxes including social security premiums | 115 | 190 |
Other current liabilities | 120 | 116 |
Other current non-financial liabilities | € 448 | € 587 |
Cash flow statement supplemen_3
Cash flow statement supplementary information - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flow statement supplementary information [Line Items] | |||
Payments of lease liabilities, classified as financing activities | € 316 | € 308 | € 325 |
Interest paid, classified as operating activities | 205 | 151 | 148 |
Purchase of financial instruments, classified as investing activities | 72 | 48 | 13 |
Net cash outflow from non-current financial assets | 38 | 0 | 66 |
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 | € 25 | € 29 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | € (1,410) | ||||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | € 500 | (2,347) | |||||
Long-term borrowings including current portion of long-term borrowings [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 8,111 | [1] | 6,933 | [1] | € 6,857 | [2] | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 1,045 | [1] | (226) | [2] | |||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 107 | [1] | 200 | [2] | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 27 | [1] | 101 | [2] | |||
EUR Bond [member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 4,061 | 3,233 | |||||
USD Bond [member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 1,378 | 1,313 | |||||
Lease liabilities [member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 1,082 | 1,220 | 1,216 | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (260) | (239) | |||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 17 | 98 | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | 105 | 145 | |||||
Lease liabilities [member] | IFRS 16 [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 1,220 | ||||||
Forward contracts long term [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 858 | [3] | 934 | [3] | 982 | [4] | |
Increase (decrease) through other changes, liabilities arising from financing activities | (76) | [3] | (48) | [4] | |||
Bank borrowings [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 705 | 203 | 205 | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 498 | (1) | |||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 4 | ||||||
Other long-term debt [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 28 | 30 | 16 | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1) | 14 | |||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 1 | ||||||
Increase (decrease) through other changes, liabilities arising from financing activities | (1) | ||||||
Short-term borrowings [member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 89 | [1] | 47 | [2] | 76 | [2] | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 47 | [1] | (25) | [2] | |||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (6) | [1] | (5) | [2] | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 1 | ||||||
Short-term bank borrowings [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 89 | 47 | 76 | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 47 | (24) | |||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (6) | (5) | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | [1] | 1 | |||||
Equity [member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | (1,133) | (1,410) | (1,181) | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (593) | (2,096) | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | 869 | 1,868 | |||||
Dividend payable [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (418) | (484) | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | 418 | 484 | |||||
Forward contracts equity [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | (858) | [3] | (934) | [3] | (982) | [4] | |
Increase (decrease) through other changes, liabilities arising from financing activities | 76 | [3] | 48 | [4] | |||
Treasury shares [member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | (275) | (476) | (199) | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (174) | (1,613) | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | 375 | 1,336 | |||||
Other short-term loans [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 1 | ||||||
Forward contracts short term [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1) | ||||||
Euro [Member] | Bonds [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 3,233 | 3,229 | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 827 | ||||||
Increase (decrease) through other changes, liabilities arising from financing activities | 4 | ||||||
US Dollar [Member] | Bonds [Member] | |||||||
Cash flow statement supplementary information [Line Items] | |||||||
Liabilities arising from financing activities | 1,313 | € 1,210 | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (20) | ||||||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | € 85 | € 103 | |||||
[1] In this table, current portion of long-term debt is included in long-term debt (and excluded from short-term debt). In this table, current portion of long-term debt is included in long-term debt (and excluded from short-term debt). The forward contracts are related to the share buyback program and LTI plans The forward contracts are related to the share buyback program and LTI plans |
Contingencies - Text Details (D
Contingencies - Text Details (Detail) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) | Sep. 30, 2022 | Dec. 31, 2021 EUR (€) | |
Contingencies [Abstract] | |||
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 | (2) | ||
Off-balance-sheet business and credit-related guarantees provided on behalf of third parties and associates | € 2 | ||
Estimated financial effect of contingent liabilities | € 60 | ||
Number of personal injury complaints | 300 | ||
Number of individuals entered private tolling agreement | 60,000 | ||
Number of individuals joined census registry | 13,500 |
Related-party transactions - Te
Related-party transactions - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related-party transactions [Line Items] | ||||
Revenue from sale of goods, related party transactions | € 111 | € 116 | € 204 | |
Non-recourse third-party receivables sold from PMC | 117 | 162 | € 242 | |
PMC [Member] | ||||
Related-party transactions [Line Items] | ||||
Revenue from sale of goods, related party transactions | € 101 | € 106 | € 191 | |
PMC [Member] | Philips North America LLC [Member] | ||||
Related-party transactions [Line Items] | ||||
Proportion of ownership interest in associate | 40% | |||
De Lage Landen Financial Services, Inc. (DLL) [Member] | ||||
Related-party transactions [Line Items] | ||||
Proportion of ownership interest in associate | 60% | |||
Bottom of range [member] | ||||
Related-party transactions [Line Items] | ||||
Presumed significant influence, voting rights | 20% | |||
Top of range [member] | ||||
Related-party transactions [Line Items] | ||||
Presumed significant influence, voting rights | 50% |
Related-party transactions - Re
Related-party transactions - Related-party transactions (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related-party transactions [Abstract] | |||
Revenue from sale of goods, related party transactions | € 111 | € 116 | € 204 |
Purchases of goods, related party transactions | 46 | 41 | 57 |
Amounts receivable, related party transactions, at the end of the period | 55 | 40 | 37 |
Amounts payable, related party transactions, at the end of the period | € 2 | € 2 | € 1 |
Share-based compensation - Text
Share-based compensation - Text Details (Detail) € / shares in Units, $ / shares in Units, € in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2022 EUR (€) € / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 EUR (€) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 | Dec. 31, 2022 USD ($) $ / shares | |
Share-based compensation [Line Items] | ||||||||
Share-based compensation costs | € 104 | € 115 | € 119 | |||||
Employee stock purchase plan | 9 | |||||||
Increase (decrease) through share-based payment transactions, equity | € 95 | € 110 | € 116 | |||||
Comparison group for performance shares | 20 | 20 | 20 | 20 | 20 | 20 | 20 | |
Description of vesting requirements for share-based payment arrangement | 40% | 40% | ||||||
Risk free interest rate, share options granted | 0.43% | 0.43% | ||||||
Expected volatility, share options granted | 32% | 32% | ||||||
Aggregate intrinsic value of liabilities from share-pased payments | € 3 | € 6 | € 9 | |||||
Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 1 month 6 days | 1 month 6 days | ||||||
US Dollar [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 1 month 6 days | 1 month 6 days | ||||||
Top of range [member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Description of vesting requirements for share-based payment arrangement | 50% | 50% | ||||||
Bottom of range [member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Description of vesting requirements for share-based payment arrangement | 10% | 10% | ||||||
Performance share plans [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Unrecognized compensation costs related to non-vested shares | € 103 | 110 | 116 | |||||
Cost recognition period (weighted average) | 1.83 | 1.83 | ||||||
Restricted shares [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Unrecognized compensation costs related to non-vested shares | € 72 | 66 | 62 | |||||
Cost recognition period (weighted average) | 1.84 | 1.84 | ||||||
Cliff-vesting period | 3 | 3 | ||||||
Option plans [Member] | Euro [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 | € 0 | |||||||
Proceeds from exercise of options | 6 | 9 | 21 | |||||
Tax deductions realized as a result of option exercises | € 0.6 | 1 | 3 | |||||
Option plans [Member] | US Dollar [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 | $ | $ 0 | |||||||
Aggregate intrinsic value of liabilities from share-pased payments | $ | $ 2 | $ 7 | $ 11 | |||||
Accelerate options [Member] | Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
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 | € 0 | |||||||
Aggregate intrinsic value of liabilities from share-pased payments | 1.1 | 0.7 | 1.6 | |||||
Proceeds from exercise of options | 1.6 | 0.7 | 1.4 | |||||
Tax deductions realized as a result of option exercises | € 0.1 | € 0.1 | € 0.1 | |||||
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 | 0 years | 0 years | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 0 | |||||||
Aggregate intrinsic value of liabilities from share-pased payments | $ | $ 0.3 | $ 0.7 | $ 0.9 | |||||
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] | Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | € / shares | 15.24 | |||||||
Top of range [member] | Option plans [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | € / shares | 22.43 | |||||||
Top of range [member] | Option plans [Member] | US Dollar [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | $ / shares | $ 30.27 | |||||||
Top of range [member] | Accelerate options [Member] | Euro [Member] | ||||||||
Share-based compensation [Line Items] | ||||||||
Exercise price of outstanding share options | € / shares | € 22.43 |
Share-based compensation - Perf
Share-based compensation - Performance shares (Detail) | 12 Months Ended | ||||||||
Dec. 31, 2022 € / shares shares | Dec. 31, 2022 $ / shares € / shares shares | Dec. 31, 2021 € / shares shares | Dec. 31, 2021 $ / shares € / shares shares | Dec. 31, 2022 $ / shares | 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 | 1,618,488 | 1,618,488 | 1,618,488 | 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 | 4,385,837 | 4,385,837 | 3,097,713 | 3,097,713 | 4,385,837 | 3,097,713 | 3,545,312 | 3,545,312 | |
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € / shares | € 33.13 | € 33.13 | € 45.28 | € 45.28 | € 41.31 | ||||
Number of other equity instruments granted in share-based payment arrangement | 2,323,435 | 2,323,435 | 1,121,001 | 1,121,001 | |||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € / shares | € 20.55 | € 50.73 | |||||||
Notional Dividends | [1] | 155,067 | 155,067 | 62,872 | 62,872 | ||||
Weighted Average Exercise Price Notional Dividends | € / shares | [1] | € 33.91 | € 45.22 | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | (434,329) | (434,329) | (1,466,223) | (1,466,223) | |||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € / shares | € 40.9 | € 39.18 | |||||||
Number of other equity instruments forfeited in share-based payment arrangement | (233,556) | (233,556) | (272,873) | (272,873) | |||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € / shares | € 38.67 | € 45.9 | |||||||
Number of other equity instruments adjusted quantity | shares | [2] | (522,493) | (522,493) | 107,624 | 107,624 | ||||
Weighted average exercise price of other equity instruments adjusted quantity | € / shares | [2] | € 40.48 | € 37.67 | ||||||
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 | 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 | 2,749,983 | 2,749,983 | 2,005,000 | 2,005,000 | 2,749,983 | 2,005,000 | 2,412,767 | 2,412,767 | |
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | $ / shares | $ 36.66 | $ 51.48 | $ 47.1 | ||||||
Number of other equity instruments granted in share-based payment arrangement | 1,530,585 | 1,530,585 | 693,918 | 693,918 | |||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | $ / shares | € 21.93 | € 61.32 | |||||||
Notional Dividends | [1] | 98,883 | 98,883 | 41,324 | 41,324 | ||||
Weighted Average Exercise Price Notional Dividends | $ / shares | [1] | € 37.15 | € 51.42 | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | (248,848) | (248,848) | (947,772) | (947,772) | |||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | $ / shares | € 45.23 | € 47.48 | |||||||
Number of other equity instruments forfeited in share-based payment arrangement | (309,570) | (309,570) | (268,500) | (268,500) | |||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | $ / shares | € 44.04 | € 51.29 | |||||||
Number of other equity instruments adjusted quantity | shares | [2] | (326,066) | (326,066) | 73,264 | 73,264 | ||||
Weighted average exercise price of other equity instruments adjusted quantity | $ / shares | [2] | € 45.26 | € 50.06 | ||||||
[1] Dividend declared in 2022 on outstanding shares. Adjusted quantity includes the adjustments made to Performance shares outstanding due to updates on the actual TSR and EPS. |
Share-based compensation - Rest
Share-based compensation - Restricted shares (Detail) | 12 Months Ended | ||||||||
Dec. 31, 2022 EUR (€) € / shares | Dec. 31, 2022 € / shares $ / shares | Dec. 31, 2021 EUR (€) € / shares | Dec. 31, 2021 $ / shares € / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 € / shares | Dec. 31, 2020 $ / shares | ||
Share-based compensation [Line Items] | |||||||||
Cancellation of treasury shares | € | € 299,000,000 | ||||||||
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 | 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 | 1,611,021 | 1,611,021 | 1,611,021 | 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 | 2,321,250 | 2,321,250 | 1,618,488 | 1,618,488 | 2,321,250 | 1,618,488 | |||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € / shares | € 30.73 | € 30.73 | € 39.93 | € 39.93 | € 36.2 | ||||
Number of other equity instruments granted in share-based payment arrangement | 1,349,003 | 631,347 | |||||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € / shares | € 22.03 | € 44.41 | |||||||
Notional Dividends | [1] | 81,500 | 33,430 | ||||||
Weighted Average Exercise Price Notional Dividends | € / shares | [1] | € 35.67 | € 39.69 | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | (540,930) | (671,703) | |||||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € / shares | € 35.82 | € 33.96 | |||||||
Number of other equity instruments forfeited in share-based payment arrangement | (186,811) | (187,648) | |||||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € / shares | € 35.06 | € 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 | 2,345,263 | 2,345,263 | 1,611,021 | 1,611,021 | 2,345,263 | 1,611,021 | |||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | $ / shares | $ 33.87 | $ 46.26 | $ 41.14 | ||||||
Number of other equity instruments granted in share-based payment arrangement | 1,463,855 | 721,469 | |||||||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | $ / shares | € 23.6 | € 53.42 | |||||||
Notional Dividends | [1] | 83,151 | 30,551 | ||||||
Weighted Average Exercise Price Notional Dividends | $ / shares | [1] | 39.37 | 44.99 | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | (541,336) | (584,833) | |||||||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | $ / shares | 41.48 | 40.64 | |||||||
Number of other equity instruments forfeited in share-based payment arrangement | (271,427) | (206,013) | |||||||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | $ / shares | € 38.51 | € 46.09 | |||||||
[1] Dividend declared in 2022 on outstanding shares. |
Share-based compensation - Opti
Share-based compensation - Options on EUR-denominated listed share (Detail) - Euro [Member] | 12 Months Ended | |
Dec. 31, 2022 € / shares | Dec. 31, 2021 € / shares | |
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 750 | |
Option plans [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 750 | 239,077 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 22.43 | € 14.93 |
Number of share options exercised in share-based payment arrangement | (226,177) | |
Weighted average exercise price of share options exercised in share-based payment arrangement | € 14.91 | |
Number of share options expired in share-based payment arrangement | (12,150) | |
Weighted average exercise price of share options expired in share-based payment arrangement | € 14.82 | |
Number of share options exercisable in share-based payment arrangement | 750 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | € 22.43 |
Share-based compensation - Op_2
Share-based compensation - Options on USD-denominated listed share (Detail) - US Dollar [Member] | 12 Months Ended | |
Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,950 | |
Option plans [Member] | ||
Share-based compensation [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,950 | 150,165 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 30.27 | $ 19.75 |
Number of share options exercised in share-based payment arrangement | (136,665) | |
Weighted average exercise price of share options exercised in share-based payment arrangement | $ 19.53 | |
Number of share options expired in share-based payment arrangement | (11,550) | |
Weighted average exercise price of share options expired in share-based payment arrangement | $ 20.62 | |
Number of share options exercisable in share-based payment arrangement | 1,950 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 30.27 |
Share-based compensation - Outs
Share-based compensation - Outstanding options (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Euro [Member] | |
Share-based compensation [Line Items] | |
Number of share options outstanding in share-based payment arrangement | 750 |
Weighted average remaining contractual life of outstanding share options | 1 month 6 days |
Euro [Member] | Price range three [Member] | |
Share-based compensation [Line Items] | |
Number of share options outstanding in share-based payment arrangement | 750 |
Weighted average remaining contractual life of outstanding share options | 1 month 6 days |
US Dollar [Member] | |
Share-based compensation [Line Items] | |
Number of share options outstanding in share-based payment arrangement | 1,950 |
Weighted average remaining contractual life of outstanding share options | 1 month 6 days |
US Dollar [Member] | Price range five [Member] | |
Share-based compensation [Line Items] | |
Number of share options outstanding in share-based payment arrangement | 1,950 |
Weighted average remaining contractual life of outstanding share options | 1 month 6 days |
Share-based compensation - Acce
Share-based compensation - Accelerate! options (Detail) | 12 Months Ended | |||
Dec. 31, 2022 € / shares | Dec. 31, 2022 € / shares $ / shares | Dec. 31, 2021 € / shares | Dec. 31, 2021 $ / shares | |
Euro [Member] | ||||
Share-based compensation [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 750 | 750 | ||
Euro [Member] | Accelerate options [Member] | ||||
Share-based compensation [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 55,000 | 55,000 | 136,975 | 136,975 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 22.43 | € 22.43 | € 18.13 | |
Number of share options exercised in share-based payment arrangement | (81,975) | (81,975) | ||
Weighted average exercise price of share options exercised in share-based payment arrangement | € 15.24 | |||
Number of share options exercisable in share-based payment arrangement | 55,000 | 55,000 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | € 22.43 | € 22.43 | ||
US Dollar [Member] | ||||
Share-based compensation [Line Items] | ||||
Number of share options outstanding in share-based payment arrangement | 1,950 | 1,950 | ||
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 | ||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ / shares | $ 20.02 | |||
Number of share options exercised in share-based payment arrangement | (17,500) | (17,500) | ||
Weighted average exercise price of share options exercised in share-based payment arrangement | $ / shares | € 20.02 |
Information on remuneration - T
Information on remuneration - Text Details (Detail) | 12 Months Ended | |||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | ||
Executive committee [Member] | ||||
Information on remuneration [Line Items] | ||||
Number of members throughout the period | 14 | |||
Key management personnel compensation | [1] | € 25,624,305 | € 33,358,405 | € 33,170,901 |
Number of members | 13 | 13 | 15 | |
Number of share options outstanding in share-based payment arrangement | 0 | 184,900 | 193,300 | |
Board of management [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | € 8,400,000 | € 10,300,000 | € 11,400,000 | |
Percentage of shares held by board of management | 1% | |||
Supervisory board [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | € 1,546,602 | € 1,325,891 | € 1,314,587 | |
Other compensation, product arrangement entitlement | € 2,000 | |||
[1] The Executive Committee consisted of 13 members as per December 31, 2022 (2021: 13 members; 2020: 15 members) |
Information on remuneration - R
Information on remuneration - Remuneration costs of the Executive Committee (Detail) - Executive committee [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1] | € 25,624,305 | € 33,358,405 | € 33,170,901 |
Base salary [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1] | 9,528,279 | 9,598,588 | 9,299,794 |
Annual incentive [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[2] | 208,370 | 5,250,408 | 6,726,768 |
Performance share plans [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[3] | 11,242,581 | 12,610,073 | 13,153,975 |
Restricted shares [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[3] | 1,191,529 | 1,380,644 | 288,372 |
Pension allowances [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[4] | 1,949,204 | 2,107,953 | 2,054,570 |
Pension scheme costs [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1] | 288,179 | 306,694 | 382,513 |
Other compensation [Member] | ||||
Information on remuneration [Line Items] | ||||
Key management personnel compensation | [1],[5] | € 1,216,163 | € 2,104,044 | € 1,264,908 |
[1] The Executive Committee consisted of 13 members as per December 31, 2022 (2021: 13 members; 2020: 15 members) The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. 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 Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Information on remuneration [Line Items] | |||||
Key management personnel compensation | € 8,400,000 | € 10,300,000 | € 11,400,000 | ||
Base salary [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | 2,730,788 | 2,720,000 | 2,690,000 | ||
Key management personnel compensation other | 150,691 | 168,742 | 179,428 | ||
Key management personnel compensation | 8,446,577 | 10,134,217 | 11,364,217 | ||
Base salary [Member] | R. Jakobs [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | [1] | 256,438 | |||
Key management personnel compensation other | [1] | 11,507 | |||
Key management personnel compensation | [1] | 444,667 | |||
Base salary [Member] | F.A. van Houten [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | 1,041,849 | [1] | 1,325,000 | 1,325,000 | |
Key management personnel compensation other | 42,533 | [1] | 57,224 | 62,176 | |
Key management personnel compensation | 4,688,992 | [1] | 5,452,299 | 6,153,067 | |
Base salary [Member] | A. Bhattacharya [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | 806,250 | 790,000 | 785,000 | ||
Key management personnel compensation other | 61,308 | 68,908 | 70,267 | ||
Key management personnel compensation | 1,896,081 | 2,652,864 | 3,007,990 | ||
Base salary [Member] | M.J. van Ginneken [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | 626,250 | 605,000 | 580,000 | ||
Key management personnel compensation other | 35,343 | 42,610 | 46,986 | ||
Key management personnel compensation | 1,416,837 | 2,029,054 | 2,203,160 | ||
Performance share plans [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | 4,391,434 | 4,684,863 | 5,122,916 | ||
Performance share plans [Member] | R. Jakobs [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | [1] | 112,737 | |||
Performance share plans [Member] | F.A. van Houten [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | 2,930,068 | [1] | 2,626,295 | 2,874,467 | |
Performance share plans [Member] | A. Bhattacharya [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | 763,140 | 1,172,533 | 1,295,996 | ||
Performance share plans [Member] | M.J. van Ginneken [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | 585,490 | 886,035 | 952,453 | ||
Restricted shares [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | 0 | 0 | 0 | ||
Restricted shares [Member] | R. Jakobs [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | [1] | 0 | |||
Restricted shares [Member] | F.A. van Houten [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, share-based payment | 0 | [1] | 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 | 880,896 | 950,014 | 957,849 | ||
Pension allowances [Member] | R. Jakobs [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | [1] | 57,973 | |||
Pension allowances [Member] | F.A. van Houten [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | 444,051 | [1] | 565,403 | 565,922 | |
Pension allowances [Member] | A. Bhattacharya [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | 237,250 | 233,857 | 233,126 | ||
Pension allowances [Member] | M.J. van Ginneken [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | 141,622 | 150,755 | 158,800 | ||
Pension scheme costs [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | 84,398 | 82,387 | 81,004 | ||
Pension scheme costs [Member] | R. Jakobs [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | [1] | 6,012 | |||
Pension scheme costs [Member] | F.A. van Houten [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | 22,121 | [1] | 27,462 | 27,001 | |
Pension scheme costs [Member] | A. Bhattacharya [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | 28,133 | 27,462 | 27,001 | ||
Pension scheme costs [Member] | M.J. van Ginneken [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, post-employment benefits | 28,133 | 27,462 | 27,001 | ||
Annual incentive [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | 208,370 | 1,528,211 | 2,333,020 | ||
Annual incentive [Member] | F.A. van Houten [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | 208,370 | [1] | 850,915 | 1,298,500 | |
Annual incentive [Member] | A. Bhattacharya [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | 0 | 360,103 | 596,600 | ||
Annual incentive [Member] | M.J. van Ginneken [Member] | |||||
Information on remuneration [Line Items] | |||||
Key management personnel compensation, short-term employee benefits | € 0 | € 317,192 | € 437,920 | ||
[1] As per October 15, 2022, Roy Jakobs was appointed as CEO of the company. The table includes actual costs incurred in respect of the remuneration received by Mr Van Houten and Mr Jakobs, respectively, as CEO. |
Information on remuneration - A
Information on remuneration - Accumulated annual pension entitlements and pension-related costs (Detail) - Board of management [Member] | Dec. 31, 2022 EUR (€) |
Information on remuneration [Line Items] | |
Pension-related costs | € 499,123 |
R. Jakobs [Member] | |
Information on remuneration [Line Items] | |
Age | 48 |
Accumulated annual pension | € 53,175 |
Pension-related costs | € 63,985 |
A. Bhattacharya [Member] | |
Information on remuneration [Line Items] | |
Age | 61 |
Accumulated annual pension | € 37,446 |
Pension-related costs | € 265,383 |
M.J. van Ginneken [Member] | |
Information on remuneration [Line Items] | |
Age | 49 |
Accumulated annual pension | € 50,614 |
Pension-related costs | € 169,755 |
Information on remuneration -_3
Information on remuneration - Remuneration of the Supervisory Board (Detail) - Supervisory board [Member] - EUR (€) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 1,546,602 | € 1,325,891 | € 1,314,587 |
F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 206,345 | 177,346 | |
P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 177,269 | 142,440 | 119,102 |
N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 47,836 | 120,269 | 125,269 |
D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 152,269 | 138,639 | 154,269 |
A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 126,269 | 116,269 | 116,269 |
M.E. Doherty [member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 151,769 | 131,769 | 133,769 |
P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 156,769 | 136,769 | |
I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 131,269 | 116,269 | |
S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 140,269 | 79,081 | |
H. Verhagen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 121,269 | ||
S. Poonen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 135,269 | ||
J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 69,505 | 201,345 | |
C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 57,397 | 171,269 | |
O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 40,137 | 116,269 | |
H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 89,513 | ||
J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 87,513 | ||
Membership [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 1,105,616 | 1,044,644 | 1,013,333 |
Membership [Member] | F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 155,000 | 141,301 | |
Membership [Member] | P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 115,000 | 109,863 | 100,000 |
Membership [Member] | N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 35,616 | 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 | 100,000 |
Membership [Member] | P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 100,000 | |
Membership [Member] | I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 100,000 | |
Membership [Member] | S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | 65,753 | |
Membership [Member] | H. Verhagen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | ||
Membership [Member] | S. Poonen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 100,000 | ||
Membership [Member] | J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 53,507 | 155,000 | |
Membership [Member] | C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 39,699 | 115,000 | |
Membership [Member] | O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 34,521 | 100,000 | |
Membership [Member] | H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 66,667 | ||
Membership [Member] | J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 76,667 | ||
Committees [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 248,411 | 242,652 | 236,000 |
Committees [Member] | F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 35,000 | 27,808 | |
Committees [Member] | P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 35,000 | 27,808 | 9,333 |
Committees [Member] | N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 6,411 | 18,000 | 18,000 |
Committees [Member] | D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 35,000 | 36,370 | 42,000 |
Committees [Member] | A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 14,000 | 14,000 | 14,000 |
Committees [Member] | M.E. Doherty [member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 27,000 | 27,000 | 24,000 |
Committees [Member] | P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 32,000 | 32,000 | |
Committees [Member] | I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 14,000 | 14,000 | |
Committees [Member] | S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 18,000 | 11,836 | |
Committees [Member] | H. Verhagen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 14,000 | ||
Committees [Member] | S. Poonen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 18,000 | ||
Committees [Member] | J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 12,082 | 35,000 | |
Committees [Member] | C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 16,915 | 49,000 | |
Committees [Member] | O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 4,833 | 14,000 | |
Committees [Member] | H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 21,333 | ||
Committees [Member] | J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 9,333 | ||
Other compensation [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 192,574 | 38,595 | 65,254 |
Other compensation [Member] | F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 16,345 | 8,237 | |
Other compensation [Member] | P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 27,269 | 4,769 | 9,769 |
Other compensation [Member] | N. Dhawan [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 5,808 | 2,269 | 7,269 |
Other compensation [Member] | D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 17,269 | 2,269 | 12,269 |
Other compensation [Member] | A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 12,269 | 2,269 | 2,269 |
Other compensation [Member] | M.E. Doherty [member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 24,769 | 4,769 | 9,769 |
Other compensation [Member] | P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 24,769 | 4,769 | |
Other compensation [Member] | I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 17,269 | 2,269 | |
Other compensation [Member] | S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 22,269 | 1,492 | |
Other compensation [Member] | H. Verhagen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 7,269 | ||
Other compensation [Member] | S. Poonen [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 17,269 | ||
Other compensation [Member] | J. van der Veer [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 3,916 | 11,345 | |
Other compensation [Member] | C.A. Poon [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 783 | 7,269 | |
Other compensation [Member] | O. Gadiesh [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 783 | 2,269 | |
Other compensation [Member] | H.N.F.M. von Prondzynski [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | 1,513 | ||
Other compensation [Member] | J.P. Tai [Member] | |||
Information on remuneration [Line Items] | |||
Key management personnel compensation | € 1,513 |
Information on remuneration - S
Information on remuneration - Shares held by Board members (Detail) - Board of management [Member] - shares | Dec. 31, 2022 | Dec. 31, 2021 | |
R. Jakobs [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 109,422 | 101,156 |
A. Bhattacharya [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 169,517 | 148,365 |
M.J. van Ginneken [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 123,914 | 110,528 |
P.A.M. Stoffels [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 17,000 | 0 |
S. Poonen [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 3,000 | 0 |
I. Nooyi [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 3,100 | 0 |
D.E.I. Pyott [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 19,000 | 0 |
S.K. Chua [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 2,000 | 0 |
F. Sijbesma [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 12,500 | 0 |
A.M. Harrison [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 1,500 | 0 |
P. Löscher [Member] | |||
Information on remuneration [Line Items] | |||
Shares held | [1],[2] | 20,732 | 0 |
[1] Reference date for board membership is December 31, 2022. 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 - Fair value of financial assets and liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets at fair value through profit or loss | € 322 | € 283 | |||
Financial assets at fair value through other comprehensive income | 319 | 368 | |||
Derivative financial assets | 127 | 63 | |||
Cash and cash equivalents | 1,172 | 2,303 | € 3,226 | € 1,425 | |
Trade and other current receivables | 4,115 | 3,787 | |||
Trade and other non-current receivables | 279 | 224 | |||
Contingent Consideration | 113 | 208 | |||
Financial Liabilities Carried At FV through P&L | 113 | 208 | |||
Derivative financial liabilities | 211 | 202 | |||
Financial liabilities, at fair value | 324 | 410 | |||
Trade and other current payables | 1,968 | [1],[2] | 1,872 | ||
Interest payable | 71 | 52 | |||
Debt (Corporate bond and finance lease) | 6,520 | 5,765 | |||
Debt (Bank loans, overdrafts etc.) | 1,680 | 1,214 | |||
Financial liabilities at amortised cost | 10,240 | 8,904 | |||
Financial liabilities | 10,564 | 9,314 | |||
Financial assets at amortised cost, category [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets, at fair value | 768 | 714 | |||
Cash and cash equivalents | 1,172 | 2,303 | |||
Current loans and receivables | 2 | 2 | |||
Non-current loans and receivables | 54 | 47 | |||
Trade and other current receivables | 4,088 | 3,720 | |||
Trade and other non-current receivables | 279 | 224 | |||
Financial assets at amortised cost | 5,596 | 6,296 | |||
Financial assets | 6,364 | 7,010 | |||
Trade receivables [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets measured at fair value through other comprehensive income | 26 | 68 | |||
At fair value [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets at fair value through profit or loss | 322 | 283 | |||
Financial assets at fair value through other comprehensive income | 319 | 368 | |||
Derivative financial assets | 127 | 63 | |||
Financial assets, at fair value | 768 | 714 | |||
Contingent Consideration | 113 | 208 | |||
Financial Liabilities Carried At FV through P&L | 113 | 208 | |||
Derivative financial liabilities | 211 | 202 | |||
Financial liabilities, at fair value | 324 | 410 | |||
Debt (Corporate bond and finance lease) | 6,083 | 6,396 | |||
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 | 26 | 68 | |||
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 | 285 | 245 | 411 | ||
Financial assets at fair value through other comprehensive income | 264 | 278 | |||
Financial assets, at fair value | 549 | 523 | |||
Contingent Consideration | 113 | 208 | |||
Financial Liabilities Carried At FV through P&L | 113 | 208 | |||
Financial liabilities, at fair value | 113 | 208 | |||
Financial liabilities | 113 | 208 | € 318 | ||
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 | 26 | 68 | |||
Level 3 of fair value hierarchy [member] | Fair value model [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets measured at fair value through other comprehensive income | 9 | ||||
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 | 1 | 4 | |||
Financial assets at fair value through other comprehensive income | 30 | 63 | |||
Financial assets, at fair value | 32 | 67 | |||
Debt (Corporate bond and finance lease) | 5,001 | 5,177 | |||
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 | 35 | 34 | |||
Financial assets at fair value through other comprehensive income | 25 | 27 | |||
Derivative financial assets | 127 | 63 | |||
Financial assets, at fair value | 187 | 124 | |||
Derivative financial liabilities | 211 | 202 | |||
Financial liabilities, at fair value | 211 | 202 | |||
Debt (Corporate bond and finance lease) | 1,082 | 1,220 | |||
Debt securities [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets at fair value through profit or loss | 232 | 233 | |||
Financial assets measured at fair value through other comprehensive income | 25 | 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 | 232 | 233 | |||
Financial assets measured at fair value through other comprehensive income | 25 | 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 | 232 | 233 | |||
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 | 25 | 27 | |||
Other equity securities [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets at fair value through profit or loss | 4 | 4 | |||
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 | 4 | |||
Financial assets measured at fair value through other comprehensive income | 259 | 273 | |||
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 | 259 | 273 | |||
Other equity 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 | 2 | ||||
Financial assets measured at fair value through other comprehensive income | 229 | 210 | |||
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 | 1 | 4 | |||
Financial assets measured at fair value through other comprehensive income | 30 | 63 | |||
Other Financial Assets [member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets at fair value through profit or loss | 86 | 46 | |||
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 | 86 | 46 | |||
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 | 51 | 12 | |||
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 | 35 | 34 | |||
Current assets [Member] | |||||
Fair value of financial assets and liabilities [Line Items] | |||||
Financial assets measured at fair value through other comprehensive income | 9 | 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 | € 9 | € 0 | |||
[1] Amounts in this table are undiscounted 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_4
Fair value of financial assets and liabilities - Reconciliation of Level 3 fair value measurements (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Fair value of financial assets and liabilities [Line Items] | ||||||
Financial liabilities | € 10,564 | € 9,314 | ||||
Reclassifications | (2) | 122 | ||||
Financial assets at fair value through profit or loss | 322 | 283 | ||||
Level 3 of fair value hierarchy [member] | ||||||
Fair value of financial assets and liabilities [Line Items] | ||||||
Financial liabilities | 113 | 208 | € 318 | |||
Assumed in a Business Combination | 96 | |||||
Utilizations | (105) | 48 | ||||
Gains (losses) recognised in profit or loss including exchange differences, fair value measurement, liabilities | (85) | (87) | ||||
Financial income and expenses | (8) | [1] | 1 | |||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, liabilities | 8 | [2] | 9 | [3] | ||
Financial assets at fair value through profit or loss | 285 | 245 | € 411 | |||
Financial liabilities recognised as of acquisition date | 16 | |||||
Level 3 of fair value hierarchy [member] | Financial assets, class [member] | ||||||
Fair value of financial assets and liabilities [Line Items] | ||||||
Financial assets | 549 | 523 | ||||
Purchases, fair value measurement, assets | 131 | 113 | ||||
Sales, fair value measurement, assets | 76 | 122 | ||||
Financial income and expenses | 7 | [1] | 98 | |||
Receivables Held To Collect And Sell | (41) | (25) | ||||
Reclassifications | € 5 | 36 | ||||
Gains (losses) recognised in other comprehensive income including exchange differences, fair value measurement, assets | [3] | € 12 | ||||
[1] Refer to Financial income and expenses Includes translation differences Includes translation differences |
Fair value of financial asset_5
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, 2022 | Dec. 31, 2021 |
Fair value of financial assets and liabilities [Line Items] | ||
Gross financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | € 127 | € 63 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 127 | 63 |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial assets | 54 | 47 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | € 73 | € 17 |
Fair value of financial asset_6
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, 2022 | Dec. 31, 2021 |
Fair value of financial assets and liabilities [Line Items] | ||
Gross financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € 211 | € 202 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 211 | 202 |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 54 | 47 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € 157 | € 155 |
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, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2022 USD ($) | Oct. 31, 2022 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 31, 2019 EUR (€) | |
Details of treasury and other financial risks [Line Items] | ||||||
Cash and cash equivalents | € 1,172 | € 2,303 | € 3,226 | € 1,425 | ||
Short-term deposits, classified as cash equivalents | 482 | 1,357 | ||||
Notional amount | 500 | |||||
Other non-current financial assets | 660 | 630 | 430 | |||
Contractual capital commitments | 127 | 116 | ||||
Accounts payable known to have been sold onwards under supplier finance arrangements | 151 | 139 | ||||
Future cash outflow for leased assets | 400 | |||||
Committed future leases not yet commenced | 93 | |||||
Minimum payments under sale-and-leaseback arrangements | 72 | 85 | ||||
Discounted unguaranteed residual value of assets subject to finance lease | € 0.6 | 0.2 | ||||
Hedge tenor of net anticipated exposure | 15 months | |||||
Net anticipated exposures hedge layer size | 20% | |||||
Net anticipated exposures hedge maximum | 80% | |||||
Equity | € 13,283 | € 14,475 | 11,901 | 12,625 | ||
Net fair value of transactional hedges | € (6) | |||||
Increase in the value of the EUR against all currencies | 10% | 10% | ||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | € (114) | |||||
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 | 41 | |||||
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 | 73 | |||||
Other comprehensive income, before tax, exchange differences on translation of foreign operations | 748 | |||||
Change in currency translation reserve following 10% decrease USD against EUR | 1,132 | |||||
Change in currency translation reserve following 10% increase USD against EUR | 1,384 | |||||
Cross-currency interest rate swaps nominal value | 500 | € 500 | ||||
Fair value liability of cross-currency interest rate swaps designated as net investment hedges | 147 | 116 | ||||
External bond funding for a nominal value designated as net investment hedges | 1,473 | $ 1,490 | ||||
External bond funding book value designated as net investment hedges | (1,378) | 1,313 | ||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | 1.1 | 1.1 | ||||
Net fair value of financing derivatives | 147 | 116 | ||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | 192 | 40 | ||||
Borrowings | 8,201 | 6,980 | € 1,000 | 6,934 | ||
Non-current portion of non-current borrowings | 7,270 | 6,473 | 5,705 | |||
Current borrowings and current portion of non-current borrowings | € 931 | € 506 | 1,229 | |||
Ratio of fixed-rate long-term debt to total outstanding debt | 80% | 90% | 80% | |||
Borrowings, maturity | 6.1 | |||||
Instantaneous increase or decrease in long-term interest rates | 1% | |||||
Change in fair value due to discontinued use of LIBOR | € 1 | |||||
Threshold of cash and short term deposits with A- credit rating | 10 | |||||
Captive retained per claim for general, product and professional liability claims | 25 | |||||
Captive retained per claim for general, product and professional liability claims, aggregate | 50 | |||||
Bottom of range [member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Policy deductibles per occurrence | 0.3 | |||||
Top of range [member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Policy deductibles per occurrence | 10 | |||||
United States of America [Member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Country risk exposure | 14,000 | |||||
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 | |||||
Germany [Member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Country risk exposure | 808 | |||||
United Kingdom of Great Britain and Northern Ireland [Member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Country risk exposure | 766 | |||||
Japan [Member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Country risk exposure | 639 | |||||
Singapore [Member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Country risk exposure | 206 | |||||
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 | (68) | € (78) | ||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | 40 | |||||
Change in the value of derivatives following a 10% increase in the value of a currency against EUR | € 191 | |||||
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 | € 1 | |||||
Reserve of cash flow hedges [member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Equity | (2) | (25) | € 23 | € (24) | ||
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 | 42 | |||||
Level 1 of fair value hierarchy [member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Financial assets, at fair value | 32 | 67 | ||||
Level 1 of fair value hierarchy [member] | Equity investments [member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Other non-current financial assets | 32 | |||||
Financial assets, at fair value | 32 | 67 | ||||
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 | 229 | |||||
Committed revolving credit facility [Member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Undrawn borrowing facilities | 1,000 | € 1,000 | ||||
Royal Philips NV [Member] | ||||||
Details of treasury and other financial risks [Line Items] | ||||||
Notional amount | € 2,500 |
Details of treasury and other_4
Details of treasury and other financial risks - Contractual cash obligations (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 | ||
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] | € 8,168 | ||
Short-term debt | [1],[2] | 89 | ||
Current interest payable | [1],[2] | 1,683 | ||
Derivative liabilities | [1],[2] | 210 | ||
Purchase obligations | [1],[2],[3] | 782 | ||
Trade and other current payables | 1,968 | [1],[2] | € 1,872 | |
Contractual cash obligations | [1],[2] | 12,901 | ||
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] | 842 | ||
Short-term debt | [1],[2] | 89 | ||
Current interest payable | [1],[2] | 159 | ||
Derivative liabilities | [1],[2] | 208 | ||
Purchase obligations | [1],[2],[3] | 336 | ||
Trade and other current payables | [1],[2] | 1,968 | ||
Contractual cash obligations | [1],[2] | 3,603 | ||
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] | 1,760 | ||
Current interest payable | [1],[2] | 304 | ||
Derivative liabilities | [1],[2] | 2 | ||
Purchase obligations | [1],[2],[3] | 412 | ||
Contractual cash obligations | [1],[2] | 2,478 | ||
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] | 1,809 | ||
Current interest payable | [1],[2] | 264 | ||
Purchase obligations | [1],[2],[3] | 21 | ||
Contractual cash obligations | [1],[2] | 2,094 | ||
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] | 3,757 | ||
Current interest payable | [1],[2] | 956 | ||
Purchase obligations | [1],[2],[3] | 12 | ||
Contractual cash obligations | [1],[2] | € 4,725 | ||
[1] Amounts in this table are undiscounted 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. 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 - Remaining minimum payments under sale-and-leaseback arrangements (Detail) - EUR (€) € in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | € 72 | € 85 |
Not later than one year [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | 55 | |
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 | 38 | |
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 | 23 | |
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 | 14 | |
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 | 5 | |
Later than five years [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Minimum payments under sale-and-leaseback arrangements | € 18 |
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, 2022 | Dec. 31, 2021 |
Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | € 3,779 | € 5,131 |
Hedge of transaction exposure | 2,920 | 3,363 |
Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 1,468 | 1,559 |
Hedge of transaction exposure | € 1,322 | |
Payables cash flow [Member] | Cash flow hedges [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Hedge of transaction exposure | 1,326 | |
US Dollar [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 1,754 | |
Hedge of transaction exposure | (1,530) | |
US Dollar [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 979 | |
Hedge of transaction exposure | 936 | |
Yen [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 479 | |
Hedge of transaction exposure | 289 | |
Yen [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 9 | |
Hedge of transaction exposure | 9 | |
Pound Sterling [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 303 | |
Hedge of transaction exposure | 188 | |
Pound Sterling [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 7 | |
Hedge of transaction exposure | 7 | |
Yuan Renminbi [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 346 | |
Hedge of transaction exposure | 259 | |
Yuan Renminbi [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 80 | |
Hedge of transaction exposure | 79 | |
Canadian Dollar [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 203 | |
Hedge of transaction exposure | 138 | |
Zloty [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 65 | |
Hedge of transaction exposure | 62 | |
Australian Dollar [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 139 | |
Hedge of transaction exposure | 92 | |
Australian Dollar [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 1 | |
Hedge of transaction exposure | 1 | |
Swiss Franc [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 132 | |
Hedge of transaction exposure | 56 | |
Swiss Franc [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 3 | |
Hedge of transaction exposure | 2 | |
Czech Koruna [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 48 | |
Hedge of transaction exposure | 50 | |
Swedish Krona [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 55 | |
Hedge of transaction exposure | 17 | |
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 | 192 | |
Russian Ruble [Member] | Receivables cash flow [Member] | Cash flow hedges [member] | ||
Details of treasury and other financial risks [Line Items] | ||
Hedge of transaction exposure | 192 | |
Russian Ruble [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | (129) | |
Hedge of transaction exposure | 129 | |
Others [Member] | Receivables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 64 | |
Hedge of transaction exposure | 46 | |
Others [Member] | Payables cash flow [Member] | ||
Details of treasury and other financial risks [Line Items] | ||
Transaction exposure | 259 | |
Hedge of transaction exposure | € 162 |
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, 2022 | Dec. 31, 2021 | |
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 | € (114) | |
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 | (68) | € (78) |
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 | (15) | (13) |
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 | (16) | (14) |
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 | (4) | (5) |
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 | (2) | (3) |
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 | € 0 | € (10) |
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, 2022 | Dec. 31, 2021 | |
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] | € (274) | € (297) |
Decrease in the value of the fixed rate long term debt excluding forward contracts driven by 1% interest increase | [1],[2],[3] | 274 | 298 |
Annualized net interest expense driven by 1% interest increase | [2],[4] | € 4 | € 20 |
[1] Fixed-rate long-term debt is excluding forward contracts. The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Equity The sensitivity analysis conducted shows that if long-term interest rates were to increase/decrease instantaneously by 1% from their level of December 31, 2022, with all other variables (including foreign exchange rates) held constant. The impact is based on the outstanding net cash position (after excluding fixed-rate debt) as of December 31, 2022. |
Details of treasury and other_9
Details of treasury and other financial risks - Credit risk with number of counterparties (Detail) | Dec. 31, 2022 |
Range 10-100 million [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 5 |
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 | 3 |
Range 10-100 million [Member] | A rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 0 |
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 | 3 |
Range 100-500 million [Member] | AA- Rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 0 |
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 | 1 |
Range 100-500 million [Member] | A- rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 1 |
Range 500 million and above [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 0 |
Range 500 million and above [Member] | AA- Rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 0 |
Range 500 million and above [Member] | A+ rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 0 |
Range 500 million and above [Member] | A rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 0 |
Range 500 million and above [Member] | A- rated [Member] | |
Details of treasury and other financial risks [Line Items] | |
Counterparties | 0 |
Subsequent events - Text Detail
Subsequent events - Text Details (Detail) € in Millions | Dec. 31, 2025 | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) |
Subsequent events [Abstract] | |||
Number of employees reduced | 6,000 | 3,000 | 4,000 |
Expected restructuring provision | € 470 | € 130 |
Uncategorized Items - phg-20221
Label | Element | Value |
Ordinary shares [member] | ||
Number of shares outstanding | ifrs-full_NumberOfSharesOutstanding | 890,973,790 |