Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018€ / sharesshares | |
Document And Entity Information [Abstract] | |
Entity Central Index Key | 313,216 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,018 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Entity Registrant Name | KONINKLIJKE PHILIPS NV |
Entity Common Stock Shares Outstanding | shares | 914,184,087 |
Entity listing par value per share | € / shares | € 0.20 |
Entity Well Known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Consolidated statements of inco
Consolidated statements of income - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Profit or loss [abstract] | |||||||
Sales | € 18,121 | [1] | € 17,780 | € 17,422 | |||
Cost of sales | 9,568 | 9,600 | 9,484 | ||||
Gross margin | 8,554 | 8,181 | 7,939 | ||||
Selling expenses | 4,500 | 4,398 | 4,142 | ||||
General and administrative expenses | 631 | 577 | 658 | ||||
Research and development expenses | 1,759 | 1,764 | 1,669 | ||||
Other business income | 88 | 152 | 17 | ||||
Other business expenses | 33 | 76 | 23 | ||||
Income from operations | 1,719 | 1,517 | 1,464 | ||||
Financial income | 51 | 126 | 65 | ||||
Financial expenses | 264 | 263 | 507 | ||||
Investments in associates, net of income taxes | (2) | (4) | 11 | ||||
Income before taxes | 1,503 | 1,377 | 1,034 | ||||
Income tax expense | 193 | 349 | 203 | ||||
Income from continuing operations | 1,310 | [2] | 1,028 | [3],[4] | 831 | [3],[4] | |
Discontinued operations, net of income taxes | [4],[5] | (213) | 843 | [3] | 660 | [3] | |
Net income | [5] | 1,097 | [2] | 1,870 | 1,491 | ||
Net income attributable to Koninklijke Philips N.V. shareholders | [4] | 1,090 | 1,657 | [3] | 1,448 | [3] | |
Net income attributable to non-controlling interests | € 7 | € 214 | € 43 | ||||
Income from continuing operations attributable to shareholders | [6] | € 1.41 | € 1.10 | € 0.90 | |||
Net income attributable to shareholders | [4] | 1.18 | 1.78 | [3] | 1.58 | [3] | |
Income from continuing operations attributable to shareholders | [6] | 1.39 | 1.08 | 0.89 | |||
Net income attributable to shareholders | [4] | € 1.16 | € 1.75 | [3] | € 1.56 | [3] | |
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[3] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies | ||||||
[4] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[5] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[6] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Statement of comprehensive income [abstract] | |||||
Net income for the period | [2] | € 1,097 | [1] | € 1,870 | € 1,491 |
Remeasurement | (8) | 102 | (96) | ||
Income tax effect on remeasurements | (19) | (78) | 28 | ||
Release revaluation reserve | (4) | ||||
Reclassification directly into retained earnings | (5) | 4 | |||
Net current-period change, before tax | (147) | ||||
Total of items that will not be reclassified to Income Statement | (179) | 25 | (68) | ||
Net current period change, before tax | 383 | (1,177) | 219 | ||
Income tax effect on net current-period change | (29) | 39 | 2 | ||
Reclassification adjustment for (gain) loss realized, in discontinued operations | (6) | 191 | |||
Net current period change, before tax | (66) | (44) | |||
Income tax effect on net current-period change | (1) | ||||
Reclassification adjustment for loss (gain) realized | 1 | 24 | |||
Net current-period change, before tax | (13) | 33 | 3 | ||
Income tax effect on net current-period change | 11 | (3) | (9) | ||
Reclassification adjustment for loss (gain) realized | (31) | (17) | 5 | ||
Total of items that are or may be reclassified to Income Statement | 315 | (1,000) | 200 | ||
Other comprehensive income for the period | 136 | (975) | 132 | ||
Total comprehensive income for the period | 1,233 | 895 | 1,623 | ||
Shareholders of Koninklijke Philips N.V. | 1,225 | 805 | 1,550 | ||
Non-controlling interests | € 8 | € 90 | € 73 | ||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |||
Statement of financial position [abstract] | |||||
Property, plant and equipment | € 1,712 | € 1,591 | |||
Goodwill | 8,503 | 7,731 | |||
Intangible assets excluding goodwill | 3,589 | 3,322 | |||
Non-current receivables | 162 | 130 | |||
Investments in associates | 244 | 142 | |||
Other non-current financial assets | 360 | 587 | [1] | ||
Non-current derivative financial assets | 1 | 22 | |||
Deferred tax assets | 1,828 | 1,598 | |||
Other non-current assets | 47 | 75 | |||
Total non-current assets | 16,447 | 15,198 | |||
Inventories | 2,674 | 2,353 | |||
Current financial assets | 436 | 2 | |||
Other current assets | 469 | 392 | |||
Current derivative financial assets | 36 | 57 | |||
Income tax receivable | 147 | 109 | |||
Current receivables | 4,035 | 3,909 | |||
Assets classified as held for sale | 87 | 1,356 | |||
Cash and cash equivalents | [2] | 1,688 | 1,939 | ||
Total current assets | 9,572 | 10,117 | |||
Total assets | 26,019 | 25,315 | |||
Equity | 12,088 | 11,999 | |||
Common shares | 185 | 188 | |||
Reserves | 548 | 385 | |||
Other | 11,355 | 11,426 | |||
Non-controlling interests | 29 | 24 | |||
Group equity | 12,117 | 12,023 | |||
Long-term debt | 3,427 | 4,044 | |||
Non-current derivative financial liabilities | 114 | 216 | |||
Long-term provisions | 1,788 | 1,659 | |||
Deferred tax liabilities | 152 | 33 | |||
Non-current contract liabilities | 226 | [3] | 249 | ||
Other non-current liabilities | [3] | 253 | 474 | ||
Total non-current liabilities | 5,959 | 6,426 | |||
Short-term debt | 1,394 | 672 | |||
Current derivative financial liabilities | 176 | 167 | |||
Income tax payable | 118 | 83 | |||
Accounts payable | 2,303 | [4],[5] | 2,090 | ||
Accrued liabilities | [3] | 1,537 | 2,319 | ||
Current contract liabilities | 1,303 | [3] | 1,163 | ||
Short-term provisions | 363 | 400 | |||
Liabilities directly associated with assets held for sale | 12 | 8 | |||
Other current liabilities | [3] | 737 | 1,126 | ||
Total current liabilities | 7,943 | 6,866 | |||
Total liabilities and group equity | € 26,019 | € 25,315 | |||
[1] | Refer to IFRS 9 disclosure in Significant accounting policies note for the impact of IFRS 9 on 2018 opening balance. | ||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||
[3] | Due to IFRS 15 adoption, contractual liabilities are shown as separate captions on the balance sheet as of 2018. For more details refer to the Significant accounting policies | ||||
[4] | Amounts in this table are undiscounted | ||||
[5] | 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Statement of cash flows [abstract] | |||||||
Cash and cash equivalents at beginning of period | [1] | € 1,939 | € 2,334 | € 1,766 | |||
Net income | [1] | 1,097 | [2] | 1,870 | 1,491 | ||
Results of discontinued operations, net of income taxes | [1],[3] | (213) | 843 | [4] | 660 | [4] | |
Depreciation, amortization, and impairment of fixed assets | [1] | 1,089 | 1,025 | 976 | |||
Impairment of goodwill and other non-current financial assets | [1] | 1 | 15 | 24 | |||
Net gain on sale of assets | [1] | (71) | (107) | (3) | |||
Interest income | [1] | (31) | (40) | (43) | |||
Interest expense on debt, borrowings, and other liabilities | [1] | 165 | 186 | 294 | |||
Income taxes | [1] | 193 | 349 | 203 | |||
Investments in associates, net of income taxes | [1] | 2 | (11) | ||||
Decrease (increase) in working capital | [1] | 179 | (101) | (131) | |||
Decrease (increase) in receivables and other current assets | [1] | (97) | 64 | (89) | |||
Decrease (Increase) in inventories | [1] | (394) | (144) | (63) | |||
Increase (decrease) in accounts payable, accrued and other current liabilities | [1] | 311 | 181 | 283 | |||
Decrease (increase) in non-current receivables, other assets and other liabilities | [1] | (49) | (358) | (160) | |||
Increase (decrease) in provisions | [1] | (271) | (252) | (647) | |||
Other items | [1] | 37 | 377 | 76 | |||
Interest paid | [1] | 170 | 215 | 296 | |||
Interest received | [1] | 35 | 40 | 42 | |||
Dividends received from investments in associates | [1] | 20 | 6 | 48 | |||
Income taxes paid | [1] | (301) | (284) | (295) | |||
Net cash provided by (used for) operating activities | [1] | 1,780 | 1,870 | 1,170 | |||
Net capital expenditures | [1] | (796) | (685) | (741) | |||
Purchase of intangible assets | [1] | (123) | (106) | (95) | |||
Expenditures on development assets | [1] | (298) | (333) | (301) | |||
Capital expenditures on property, plant and equipment | [1] | (422) | (420) | (360) | |||
Proceeds from sales of property, plant and equipment | [1] | 46 | 175 | 15 | |||
Net proceeds from (cash used for) derivatives and current financial assets | [1] | (175) | (198) | (117) | |||
Purchase of other non-current financial assets | [1] | (34) | (42) | (53) | |||
Proceeds from other non-current financial assets | [1] | 77 | 6 | 14 | |||
Purchase of businesses, net of cash acquired | [1] | (628) | (2,344) | (197) | |||
Net proceeds from sale of interests in businesses, net of cash disposed of | [1] | 70 | 64 | ||||
Net cash provided by (used for) for investing activities | [1] | (1,486) | (3,199) | (1,092) | |||
Proceeds from issuance (payments) of short-term debt | [1] | 34 | 12 | (1,377) | |||
Principal payments on short-term portion of long-term debt | [1] | (1,161) | (1,332) | (357) | |||
Proceeds from issuance of long-term debt | [1] | 1,287 | 1,115 | 123 | |||
Re-issuance of treasury shares | [1] | 94 | 227 | 80 | |||
Purchase of treasury shares | [1] | (1,042) | (642) | (606) | |||
Proceeds from sale of Signify (Philips Lighting) shares | [1] | 1,065 | 863 | ||||
Transaction costs paid for sale of Signify (Philips Lighting) shares | [1] | (5) | (38) | ||||
Dividends paid to shareholders of Koninklijke Philips N.V. | [1] | (401) | (384) | (330) | |||
Dividends paid to non-controlling interests | [1] | (3) | (2) | (2) | |||
Net cash provided by (used for) financing activities | [1] | (1,192) | 55 | (1,643) | |||
Net cash provided by (used for) continuing operations | [1] | (898) | (1,274) | (1,566) | |||
Net cash provided by (used for) discontinued operations | [1] | 647 | 1,063 | 2,151 | |||
Net cash provided by (used for) continuing and discontinued operations | [1] | (251) | (211) | 585 | |||
Effect of changes in exchange rates on cash and cash equivalents | [1] | 0 | (184) | (17) | |||
Cash and cash equivalents at end of period | [1] | € 1,688 | € 1,939 | € 2,334 | |||
[1] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[3] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[4] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Millions | Total | Equity attributable to owners of parent [member] | Issued capital [member] | Non-controlling interests [member] | Reserve of cash flow hedges [member] | Reserve of exchange differences on translation [member] | [1] | Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | [2] | Reserve of gains and losses on remeasuring available-for-sale financial assets [member] | [2] | Retained earnings [member] | Revaluation surplus [member] | Share premium [member] | Treasury shares [member] | |
Equity at beginning of period at Dec. 31, 2015 | € 11,725 | € 11,607 | € 186 | € 118 | € 12 | € 1,058 | € 56 | € 7,985 | € 4 | € 2,669 | € (363) | |||||
Total comprehensive income (loss) | 1,623 | 1,550 | 73 | (1) | 191 | (20) | 1,384 | € (4) | ||||||||
Dividend distributed | (330) | (330) | 4 | (94) | (732) | 398 | ||||||||||
IPO Philips Lighting (now Signify) | 825 | 125 | ||||||||||||||
Cancellation of treasury shares | (4) | (446) | 450 | |||||||||||||
Purchase of treasury shares | (589) | (589) | (589) | |||||||||||||
Sale or issue of treasury shares | 74 | 74 | (35) | (122) | 231 | |||||||||||
Share call options | (13) | (103) | ||||||||||||||
Increase (decrease) through share-based payment transactions, equity | 119 | 119 | 8,266 | 119 | ||||||||||||
Income tax share-based compensation plans | 19 | 19 | 19 | |||||||||||||
Equity at end of period at Dec. 31, 2016 | 13,453 | 12,546 | 186 | 907 | 10 | 1,234 | 36 | 8,178 | 3,083 | (181) | ||||||
Total comprehensive income (loss) | 895 | 805 | 90 | 12 | (823) | (66) | 1,681 | |||||||||
Dividend distributed | (478) | (384) | 2 | (3) | (742) | 356 | ||||||||||
IPO Philips Lighting (now Signify) | 109 | 716 | (1) | (15) | ||||||||||||
Purchase of treasury shares | (318) | (318) | (318) | |||||||||||||
Sale or issue of treasury shares | 133 | 133 | 3 | (205) | 334 | |||||||||||
Share call options | (160) | (160) | 90 | |||||||||||||
Increase (decrease) through share-based payment transactions, equity | 151 | 151 | 151 | |||||||||||||
Sale of shares of Philips Lighting (now Signify) | 1,039 | 327 | 712 | (19) | 346 | |||||||||||
Deconsolidation Philips Lighting (now Signify) | (1,602) | (12) | (1,590) | 54 | (66) | |||||||||||
Increase (decrease) forward contracts | (1,079) | (1,018) | (61) | |||||||||||||
Income Tax Share-based Compensation Plans | (8) | (8) | (8) | |||||||||||||
Equity at end of period at Dec. 31, 2017 | 12,023 | 11,999 | 188 | 24 | 23 | 392 | (30) | 8,596 | 3,311 | (481) | ||||||
Total comprehensive income (loss) | 1,233 | 1,225 | 8 | (33) | 347 | € (147) | 1,058 | |||||||||
Dividend distributed | (403) | (400) | 2 | (738) | 336 | |||||||||||
Purchase of treasury shares | (514) | (514) | (4) | (276) | (514) | |||||||||||
Sale or issue of treasury shares | 107 | 61 | 341 | |||||||||||||
Share call options | 34 | (51) | ||||||||||||||
Increase (decrease) through share-based payment transactions, equity | 107 | 107 | ||||||||||||||
Increase (decrease) forward contracts | (319) | (319) | 124 | (443) | ||||||||||||
Income Tax Share-based Compensation Plans | 11 | 11 | 11 | |||||||||||||
IFRS 9 And 15 Adjustment | [3] | (29) | (29) | € (4) | (25) | |||||||||||
Cancellation of treasury shares | (5) | € (779) | 783 | |||||||||||||
Equity at end of period at Dec. 31, 2018 | € 12,117 | € 12,088 | € 185 | € 29 | € (10) | € 739 | € (181) | € 3,487 | € (399) | |||||||
[1] | Cumulative translation adjustments related to investments in associates were EUR 45 million at December 31,2018 (2017: EUR 46 million, 2016: EUR 40 million). | |||||||||||||||
[2] | Previously available-for-sale financial assets. | |||||||||||||||
[3] | Impact of IFRS 9 and 15 adoption. Reference is made to the Significant accounting policies |
Consolidated statements of ch_2
Consolidated statements of changes in equity (Parenthetical) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity | € 12,117 | € 12,023 | € 13,453 | |
Reserve of exchange differences on translation [member] | ||||
Equity | [1] | 739 | 392 | 1,234 |
Associates [member] | Reserve of exchange differences on translation [member] | ||||
Equity | € 45 | € 46 | € 40 | |
[1] | Cumulative translation adjustments related to investments in associates were EUR 45 million at December 31,2018 (2017: EUR 46 million, 2016: EUR 40 million). |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies [Abstract] | |
Disclosure of significant accounting policies [text block] | Significant accounting policies The Consolidated financial statements in the Group financial statements section have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU) and with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code. All standards and interpretations issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee effective 2018 have been endorsed by the EU; consequently, the accounting policies applied by Philips also comply with IFRS as issued by the IASB. These accounting policies have been applied by group entities. The Consolidated financial statements have been prepared under the historical cost convention, unless otherwise indicated. The Consolidated financial statements are presented in euros, which is the presentation currency. Due to rounding, amounts may not add up precisely to the totals provided. On February 25, 2019, the Board of Management authorized the Consolidated financial statements for issue. The Consolidated financial statements as presented in this report are subject to adoption by the Annual General Meeting of Shareholders, to be held on May 9, 2019. Use of estimates The preparation of the Consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. These estimates inherently contain a degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions. In the process of applying the accounting policies, management has made estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the reported amounts of assets and liabilities within the next financial year, as well as to the disclosure of contingent liabilities at the date of the Consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The company evaluates these estimates and judgments on an ongoing basis and bases the estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that Philips believes are reasonable under the circumstances. Existing circumstances and assumptions about future developments may change due to circumstances beyond the company’s control and are reflected in the assumptions if and when they occur. The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. The company revises material estimates if changes occur in the circumstances or if there is new information or experience on which an estimate was or can be based. The areas where the most significant judgments and estimates are made are goodwill, deferred tax asset recoverability, impairments, classification and measurement of financial instruments, the accounting for an arrangement containing a lease, revenue recognition, tax risks and other contingencies, assessment of control, classification of assets and liabilities held for sale and the presentation of items of profit and loss and cash flows as continuing or discontinued, as well as when determining the fair values of acquired identifiable intangible assets, contingent considerations and investments based on an assessment of future cash flows (e.g. earn out arrangements as part of acquisitions). For further discussion of these significant judgements and estimates, reference is made to the respective accounting policies and notes within these Consolidated financial statements that relate to the above topics. Further judgment is applied when analyzing impairments of goodwill and intangible assets not yet ready for use that are performed annually and whenever a triggering event has occurred to determine whether the carrying value exceeds the recoverable amount. These analyses are generally based on estimates of discounted future cash flows. Furthermore, the company applies judgment when actuarial assumptions are established to anticipate future events that are used in calculating post-employment benefit expenses and liabilities. These factors include assumptions with respect to interest rates, rates of increase in healthcare costs, rates of future compensation increases, turnover rates and life expectancy. Correction of errors in accounting for Earnings Per Share During 2018, Philips determined that the basic and diluted earnings per common share amounts for income from continuing operations attributable to shareholders, presented in the 2017 consolidated financial statements of the Group, were understated for both 2017 and 2016. The understatement was a result of an error, solely impacting certain EPS calculations and disclosures, in the allocation of income attributable to non-controlling interests, between continuing and discontinued operations. The correction of this error resulted in basic earnings per common share for income from continuing operations attributable to shareholders for 2017, being restated upwards from EUR 0.88 to EUR 1.10 (2016: EUR 0.86 to EUR 0.90). Similarly, diluted earnings per common share for income from continuing operations attributable to shareholders for 2017 was restated upwards from EUR 0.86 to EUR 1.08 (2016: EUR 0.85 to EUR 0.89). Basic and diluted earnings per common share for income from discontinued operations has been restated downwards in an equal amount. The basic and diluted net income attributable to shareholders earnings per common share in either year were not impacted. Changes in presentation from the prior year Accounting policies have been applied consistently for all periods presented in these consolidated financial statements, except for the items mentioned below. In addition, certain prior-year amounts have been reclassified to conform to the current year presentation. Change in Consolidated balance sheets presentation Following the adoption of IFRS 15, the company has changed the presentation of certain amounts in the Consolidated balance sheets to reflect the terminology of IFRS 15. Further reference is made to the section New standards and interpretations of this note. Change in Segment reporting Due to the divestment and deconsolidation of businesses in 2017, Philips changed the way it allocates resources and analyzes its performance based on the revised segment structure. Accordingly, from 2018 onwards the operational reportable segments for the purpose of the disclosures required by IFRS 8 Operating Segments were Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses and Personal Health businesses. Each being responsible for the management of its business worldwide. Additionally, HealthTech Other and Legacy Items were combined into Other. The new segment structure had no impact on the cash-generating units disclosed in Goodwill Consequential changes to comparative segment disclosures have been processed in Other assets Receivables Provisions Information by segment and main country Specific choices within IFRS In certain instances IFRS allows alternative accounting treatments for measurement and/or disclosure. Philips has adopted one of the treatments as appropriate to the circumstances of the company. The most important of these alternative treatments are mentioned below. Tangible and intangible fixed assets Under IFRS, an entity shall choose either the cost model or the revaluation model as its accounting model for tangible and intangible fixed assets. In this respect, items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The useful lives and residual values are evaluated annually. Furthermore, the company chose to apply the cost model, meaning that costs relating to product development, the development and purchase of software for internal use and other intangible assets are capitalized and subsequently amortized over the estimated useful life. Further information on Tangible and Intangible fixed assets can be found in Property, plant and equipment Intangible assets excluding goodwill Employee benefit accounting IFRS does not specify how an entity should present its service costs related to pensions and net interest on the net defined-benefit liability (asset) in the Consolidated statements of income. With regards to these elements, the company presents service costs in Income from operations and the net interest expenses related to defined-benefit plans in Financial expense. Furthermore, when accounting for the settlement of defined-benefit plans, the company made the accounting policy choice to adjust the amount of the plan assets transferred for the effect of the asset ceiling. Further information on employee benefit accounting can be found in Post-employment benefits Cash flow statements Under IFRS, an entity shall report cash flows from operating activities using either the direct method (whereby major classes of gross cash receipts and gross cash payments are disclosed) or the indirect method (whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows). In this respect, the company chose to prepare the cash flow statements using the indirect method. Furthermore, interest cash flows are presented in cash flows from operating activities rather than in cash flows from financing or investing activities, because they enter into the determination of profit or loss. The company chose to present dividends paid to shareholders of Koninklijke Philips N.V. as a component of cash flows from financing activities, rather than to present such dividends as cash flows from operating activities, which is an allowed alternative under IFRS. Consolidated statements of cash flows can be found in Consolidated statements of cash flows Policies that are more critical in nature Revenue recognition Revenue from the sale of goods in the normal course of business is recognized at a point in time when the performance obligation is satisfied and it is based on the amount of the transaction price that is allocated to the performance obligation. The transaction price is the amount of the consideration to which the company expects to be entitled in exchange for transferring the promised goods to the customer. The consideration expected by the company may include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and volume rebates. The company adjusts the consideration for the time value of money for the contracts where no explicit interest rate is mentioned if the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds six months. Revenue for the sale of goods is recognized when control of the asset is transferred to the buyer and only when it is highly probable that a significant reversal of revenue will not occur when uncertainties related to a variable consideration are resolved. Transfer of control varies depending on the individual terms of the contract of sale. For consumer-type products in the segment of Personal Health, control is transferred when the product is shipped and delivered to the customer and title and risk have passed to the customer (depending on the delivery conditions) and acceptance of the product has been obtained. Examples of delivery conditions are ‘Free on Board point of delivery’ and ‘Costs, Insurance Paid point of delivery’, where the point of delivery may be the shipping warehouse or any other point of destination as agreed in the contract with the customer and where control is transferred to the customer. Revenues from transactions relating to distinct goods or services are accounted for separately based on their relative stand-alone selling prices. The stand-alone selling price is defined as the price that would be charged for the goods or service in a separate transaction under similar conditions to similar customers (adjusted market assessment approach or expected costs plus margin approach), which within the company is mainly the Country Target Price (CTP). The transaction price determined (taking into account variable considerations) is allocated to performance obligations based on relative stand-alone selling prices. These transactions mainly occur in the segments Diagnosis & Treatment and Connected Care & Health Informatics and include arrangements that require subsequent installation and training activities in order to make distinct goods operable for the customer. As such, the related installation and training activities are part of equipment sales rather than separate performance obligations. Revenue is recognized when the performance obligation is satisfied, i.e. when the installation has been completed and the equipment is ready to be used by the customer in the way contractually agreed. Revenues are recorded net of sales taxes. A variable consideration is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such assessment is performed on each reporting date to check whether it is constrained. For products for which a right of return exists during a defined period, revenue recognition is determined based on the historical pattern of actual returns, or in cases where such information is not available revenue recognition is postponed until the return period has lapsed. Return policies are typically based on customary return arrangements in local markets. A provision is recognized for assurance-type product warranty at the time of revenue recognition and reflects the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to the products sold. For certain products, the customer has the option to purchase the warranty separately, which is considered a separate performance obligation on top of the assurance-type product warranty. For such warranties which provide distinct service, revenue recognition occurs on a straight-line basis over the extended warranty contract period. In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred for shipping and handling of internal movements of goods are recorded as cost of sales. Shipping and handling related to sales to third parties are recorded as selling expenses. When shipping and handling are part of a project and billed to the customer, then the related expenses are recorded as cost of sales. Shipping and handling billed to customers are distinct and separate performance obligations and recognized as revenues. Expenses incurred for sales commissions that are considered incremental to the contracts are recognized immediately in the Consolidated statements of income as selling expenses as a practical expedient under IFRS 15. Revenue from services is recognized over a period of time as the company transfers control of the services to the customer which is demonstrated by the customer simultaneously receiving and consuming the benefits provided by the company. The amount of revenues is measured by reference to the progress made towards complete satisfaction of the performance obligation, which in general is evenly over time. Service revenue related to repair and maintenance activities for goods sold is recognized ratably over the service period or as services are rendered. Royalty income from brand license arrangements is recognized based on a right to access the license, which in practice means over the contract period based on a fixed amount or reliable estimate of sales made by a licensee. Royalty income from intellectual property rights such as technology licenses or patents is recognized based on a right to use the license, which in practice means at a point in time based on the contractual terms and substance of the relevant agreement with a licensee. However, revenue related to intellectual property contracts with variable consideration where a constraint in the estimation is identified, is recognized over the contract period and is based on actual or reliably estimated sales made by a licensee. The company receives payments from customers based on a billing schedule or credit period, as established in our contracts. Credit periods are determined based on standard terms, which vary according to local market conditions. Amounts posted in deferred revenue for which the goods or services have not yet been transferred to the customer and amounts that have either been received or are due, are presented as Contract liabilities in the Consolidated balance sheets. Income taxes Income taxes comprise current and deferred tax. Income tax is recognized in the Consolidated statements of income except to the extent that it relates to items recognized directly within equity or in other comprehensive income. Current tax is the expected taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Tax liabilities are recognized when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the company to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact the income tax expense in the period during which such a determination is made. Deferred tax assets and liabilities are recognized, using the Consolidated balance sheets method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill; the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; and differences relating to investments in subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by the company and it is probable that it will not reverse in the foreseeable future. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity or on different taxable entities, but the company intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that there will be future taxable profits against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Deferred tax liabilities for withholding taxes are recognized for subsidiaries in situations where the income is to be paid out as dividend in the foreseeable future and for undistributed earnings of unconsolidated companies to the extent that these withholding taxes are not expected to be refundable or deductible. Changes in tax rates and tax laws are reflected in the period when the change was enacted or substantively enacted by the reporting date. Any subsequent adjustment to a tax asset or liability that originated in discontinued operations and for which no specific arrangements were made at the time of divestment, due to a change in the tax base or its measurement, is allocated to discontinued operations (i.e. backwards tracing). Examples are a tax rate change or change in retained assets or liabilities directly relating to the discontinued operation. Any subsequent change to the recognition of deferred tax assets is allocated to the component in which the taxable gain is or will be recognized. The above principles are applied to the extent the ‘discontinued operations’ are sufficiently separable from continuing operations. Further information on income tax can be found in Income taxes Provisions Provisions are recognized if, as a result of a past event, the company has a present legal or constructive obligation, the amount can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money. The increase in the provision due to passage of time is recognized as interest expense. The accounting and presentation for some of the company’s provisions is as follows: Product warranty – A provision for assurance-type product warranty is recognized when the underlying products or services are sold. The provision is based on historical warranty data and a weighing of possible outcomes against their associated probabilities. Environmental provisions – Measurement of liabilities associated with environmental obligations is based on current legal and constructive requirements. Liabilities and expected insurance recoveries, if any, are recorded separately. The carrying amount of environmental liabilities is regularly reviewed and adjusted for new facts and changes in law. Restructuring-related provisions – The provision for restructuring mainly relates to the estimated costs of initiated restructurings, the most significant of which have been approved by the Executive Committee, and which generally involve the realignment of certain parts of the industrial and commercial organization. When such restructurings require discontinuance and/or closure of lines of activities, the anticipated costs of closure or discontinuance are included in restructuring provisions. A liability is recognized for those costs only when the company has a detailed formal plan for the restructuring and has raised a valid expectation with those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. Before a provision is established, the company recognizes any impairment loss on the assets associated with the restructuring. Litigation provisions – In relation to legal claim provisions and settlements, the relevant balances are transferred to Other liabilities at the point when the amount and timing of cash outflows are no longer uncertain. Settlements which are agreed for amounts in excess of existing provisions are reflected as increases in Other liabilities. Further information on provisions can be found in Provisions Goodwill The measurement of goodwill at initial recognition is described in the Basis of consolidation note. Goodwill is subsequently measured at cost less accumulated impairment losses. Further information on goodwill can also be found in Goodwill Intangible assets other than goodwill Acquired finite-lived intangible assets are amortized using the straight-line method over their estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized at cost, with the exception of intangible assets acquired as part of a business combination, which are capitalized at their acquisition date fair value. The company expenses all research costs as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized as an intangible asset if the product or process is technically and commercially feasible, the company has sufficient resources and the intention to complete development and can measure the attributable expenditure reliably. The capitalized development expenditure comprises of all directly attributable costs (including the cost of materials and direct labor). Other development expenditures and expenditures on research activities are recognized in the Consolidated statements of income. Capitalized development expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of capitalized development expenditure is charged to the Consolidated statements of income on a straight-line basis over the estimated useful lives of the intangible assets. Further information on intangible assets other than goodwill can be found in Intangible assets excluding goodwill Discontinued operations and non-current assets held for sale Non-current assets and disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Consolidated balance sheets. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Consolidated balance sheets. A discontinued operation is a component of an entity that has either been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations; or is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a view to sell. If a discontinued operation is sold in stages as part of a single coordinated plan until it is completely sold, then the Investment in associate that is recognized upon sale of a portion that results in Philips having significant influence in the operation (rather than control) is continued to be treated as discontinued operation provided that the held for sale criteria are met. Non-current assets held for sale and discontinued operations are carried at the lower of carrying amount or fair value less cost of disposal. Any gain or loss from disposal, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Consolidated financial statements and related notes for all periods presented. Comparatives in the Consolidated balance sheets are not represented when a non-current asset or disposal group is classified as held for sale. Comparatives are represented for presentation of discontinued operations in the Consolidated statements of cash flows and Consolidated statements of income. Adjustments in the current period to amounts previously presented in discontinued operations that are directly related to the disposal of a discontinued operation in a prior period, and for which no specific arrangements were made at the time of divestment, are classified separately in discontinued operations. Circumstances to which these adjustments may relate include resolution of uncertainties that arise from the terms of the disposal transaction, such as the resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise from and are directly related to the operations of the component before its disposal, such as environmental and assurance-type product warranty obligations retained by the company, and the settlement of employee benefit plan obligations provided that the settlement is directly related to the disposal transaction. Further information on discontinued operations and non-current assets held for sale can be found in Discontinued operations and assets classified as held for sale Impairment Impairment of goodwill and intangible assets not yet ready for use Goodwill and intangible assets not yet ready for use are not amortized but are tested for impairment annually and whenever impairment indicators require. In case of goodwill and intangible assets not yet ready for use, either internal or external sources of information are considered indicators that an asset or a CGU may be impaired. In most cases the company identified its cash-generating units for goodwill at one level below that of an operating segment. Cash flows at this level are substantially independent from other cash flows and this is the lowest level at which goodwill is monitored by the Executive Committee. An impairment loss is recognized in the Consolidated statements of income whenever and to the extent that the carrying amount of a cash-generating unit exceeds the unit’s recoverable amount, whichever is the greater, its value in use or its fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from the sale of an asset in an arm’s length transaction, less costs of disposal. Further information on impairment of goodwill and intangible assets not yet ready for use can be found in Goodwill Intangible assets excluding goodwill Impairment of non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of an asset with the greater of its value in use and fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from a sale of an asset in an arm’s length transaction, less costs of disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the recoverable amount. The review for impairment is carried out at the level where cash flows occur that are independent of other cash flows. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if and to the extent that there has been a change in the estimates used to determine the recoverable amount. The loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment are recognized in the Consolidated statements of income. Impairment of financial assets The company recognizes an allowance for expected credit losses (ECLs) for trade receivables, contract assets, lease receivables, debt investments carried at FVTOCI and amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the company expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized in two stages. For credit risk exposures for which there has not been a significant in |
Information by segment and main
Information by segment and main country | 12 Months Ended |
Dec. 31, 2018 | |
Information by segment and main country [Abstract] | |
Information by segment and main country [Text block] | Information by segment and main country Philips Group Information on income statements in millions of EUR unless otherwise stated 2016 - 2018 sales sales including intercompany depreciation and amortization 1 Adjusted EBITA 2 2018 Diagnosis & Treatment 7,245 7,364 (302) 838 Connected Care & Health Informatics 3,084 3,126 (176) 341 Personal Health 7,228 7,240 (367) 1,215 Other 564 674 (244) (28) Inter-segment eliminations (282) Philips Group 18,121 18,121 (1,089) 2,366 2017 Diagnosis & Treatment 6,891 6,953 (267) 716 Connected Care & Health Informatics 3,163 3,200 (208) 372 Personal Health 7,310 7,333 (371) 1,221 Other 416 564 (179) (157) Inter-segment eliminations (269) Philips Group 17,780 17,780 (1,025) 2,153 2016 Diagnosis & Treatment 6,686 6,741 (229) 631 Connected Care & Health Informatics 3,158 3,213 (184) 324 Personal Health 7,099 7,119 (385) 1,108 Other 479 641 (179) (142) Inter-segment eliminations (292) Philips Group 17,422 17,422 (976) 1,921 1 Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2 For reconciliation Adjusted EBITA, refer to the table below. As required by IFRS 8 Operating Segments, Philips operating segments are Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses and Personal Health businesses, each being responsible for the management of its business worldwide. Due to the divestment and deconsolidation of businesses in 2017, Legacy Items no longer require separate disclosure. Therefore, as from January 1, 2018, HealthTech Other and Legacy Items are combined into Other. Prior-period comparatives have been adjusted to conform with current presentation. From 2017, Signify is reported as part of Discontinued Operations (refer to note 3, Discontinued operations and assets classified as held for sale Philips focuses on improving people’s lives through meaningful innovation across the health continuum – from healthy living and prevention to diagnosis, treatment and home care. The Diagnosis & Treatment businesses deliver precision medicine and least-invasive treatment and therapy to improve outcomes, lower the cost of care delivery and enhance the patient experience. The Connected Care & Health Informatics businesses deliver digital solutions that facilitate value-based care through consumer technology, patient monitoring and clinical informatics. The Personal Health businesses deliver integrated, connected solutions that support healthier lifestyles and those living with chronic disease. The Executive Committee of Philips is deemed to be the chief operating decision maker (CODM) for IFRS 8 segment reporting purposes. The key segmental performance measure is Adjusted EBITA, which Management believes is the most relevant measure to evaluate the results of the segments. 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. Below 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 unless otherwise stated 2016 - 2018 Philips Group Diagnosis & Treatment Connected Care & Health Informatics Personal Health Other 2018 Net Income 1,097 Discontinued operations, net of income taxes 213 Income tax expense 193 Investments in associates, net of income taxes 2 Financial expenses 264 Financial income (51) Income from operations 1,719 600 179 1,045 (105) Amortization of intangible assets 347 97 46 126 79 Impairment of goodwill - - EBITA 2,066 696 225 1,171 (27) Restructuring and acquisition-related charges 258 142 59 26 31 Other items 41 - 56 18 (33) Adjusted EBITA 2,366 838 341 1,215 (28) 2017 Net Income 1,870 Discontinued operations, net of income taxes (843) Income tax expense 349 Investments in associates, net of income taxes 4 Financial expenses 263 Financial income (126) Income from operations 1,517 488 206 1,075 (252) Amortization of intangible assets 260 55 44 135 26 Impairment of goodwill 9 9 EBITA 1,787 543 250 1,211 (217) Restructuring and acquisition-related charges 316 151 91 11 64 Other items 50 22 31 (3) Adjusted EBITA 2,153 716 372 1,221 (157) 2016 Net Income 1,491 Discontinued operations, net of income taxes (660) Income tax expense 203 Investments in associates, net of income taxes (11) Financial expenses 507 Financial income (65) Income from operations 1,464 546 275 953 (310) Amortization of intangible assets 242 48 46 139 9 Impairment of goodwill 1 1 EBITA 1,707 594 322 1,092 (301) Restructuring and acquisition-related charges 94 37 14 16 27 Other items 120 (12) 132 Adjusted EBITA 1,921 631 324 1,108 (142) 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 2016 - 2018 sales 1 tangible and intangible assets 2 2018 Netherlands 510 1,666 United States 6,050 9,493 China 2,380 353 Japan 1,045 491 Germany 1,032 263 France 519 30 South Korea 498 3 Other countries 6,087 1,506 Total main countries 18,121 13,805 2017 Netherlands 414 1,154 United States 6,084 8,408 China 2,322 959 Japan 1,059 457 Germany 1,011 270 France 530 33 India 425 100 Other countries 5,935 1,263 Total main countries 17,780 12,644 2016 Netherlands 393 1,007 United States 5,948 9,425 China 2,210 1,167 Japan 1,103 492 Germany 965 201 France 513 45 India 399 121 Other countries 5,891 2,147 Total main countries 17,422 14,605 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, 2018 | |
Discontinued operations and assets classified as held for sale [Abstract] | |
Disclosure of discontinued operations [text block] | Discontinued operations and assets classified as held for sale Discontinued operations consist primarily of our retained shareholding in Signify (formerly Philips Lighting), the combined Lumileds and Automotive businesses and certain other divestments formerly reported as discontinued operations. The below table summarizes the discontinued operations, net of income taxes results reported in the consolidated statements of income. Philips Group Discontinued operations, net of income taxes in millions of EUR 2016 - 2018 2016 2017 2018 Signify 244 896 (198) The combined Lumileds and Automotive businesses 282 (29) 12 Other 134 (24) (27) Discontinued operations, net of income taxes 660 843 (213) Signify As from December 31, 2018, Philips is no longer able to exercise significant influence with respect to Signify. The results related to Philips' retained interest in Signify until the moment the company lost significant influence are recognized in discontinued operations. These results relate to an overall EUR 198 million loss, which reflects dividends received of EUR 32 million and a loss due to value adjustments of EUR 218 million. As of December 31, 2018 the remaining shareholding in Signify is part of continued operations. For further details, please refer to Interest in entities The following table, summarizes the results of Signify included in the Consolidated statements of income as discontinued operations. Results of Signify in millions of EUR 2016 - 2018 2016 2017 2018 Sales 7,094 6,319 Costs and expenses (6,726) (5,776) (18) Result on the deconsolidation of discontinued operations 538 Fair value adjustment retained interest (104) (218) Dividend income 32 Income before tax 368 977 (204) Income tax expense (124) (150) 7 Income tax on the deconsolidation of discontinued operations 61 US Tax Cuts and Jobs Act 8 Results from discontinued operations 244 896 (198) Discontinued operations: Combined Lumileds and Automotive businesses On June 30, 2017, Philips completed the sale of an 80.1% interest in the combined Lumileds and Automotive businesses to certain funds managed by affiliates of Apollo Global Management, LLC. In the first quarter of 2018 we reached a final settlement resulting in a gain of EUR 8 million. The combined businesses of Lumileds and Automotive were reported as discontinued operations as from the end of November 2014. For details on the retained interest in the combined Lumileds and Automotive businesses we refer to Other financial assets The following table summarizes the results of the combined businesses of Lumileds and Automotive in the Consolidated statements of income as discontinued operations. Philips Group Results of combined Lumileds and Automotive businesses in millions of EUR 2016 - 2018 2016 2017 2018 Sales 1,711 804 Costs and expenses (1,376) (630) 5 Result on the sale of discontinued operations (98) 8 Income before tax 335 76 13 Income tax expense (53) (25) (1) Income tax on the sale of discontinued operations 26 US Tax Cuts and Jobs Act 1 (107) Results from discontinued operations 282 (29) 12 1 For further details related to US Tax Cuts and Jobs Act please refer to Income Taxes Discontinued operations: Other Certain other divestments reported as discontinued operations, resulted in a net loss of EUR 27 million in 2018 (2017: a net loss of EUR 24 million; 2016: a net gain of EUR 134 million). The main result in 2016 related to the court decision in favor of Philips in an arbitration case against Funai Electric Co., Ltd. Philips started the arbitration after it terminated the agreement to transfer the Audio, Video, Media & Accessories business to Funai following a breach of contract by Funai. As a consequence the court ordered Funai to pay EUR 144 million, which includes disbursements and interest, as compensation for damages. The amount was received in the second quarter of 2016. Discontinued operations cash flows The following table presents the net cash flows of operating, investing and financing activities reported in the Consolidated cash flow statements related to discontinued operations. Discontinued operations cash flows in millions of EUR 2016 -2018 2016 2017 2018 Cash flows from operating activities 1,037 350 (15) Cash flows from investing activities (112) 856 662 Cash flows from financing activities 1,226 (144) Total discontinued operations cash flows 2,151 1,063 647 In 2018, discontinued operations cash flows mainly include EUR 642 million related to the sale of Signify shares and dividend received from Signify reported in investing activities. The sale of Signify shares in 2017 (prior to losing control) are included in cash flows from financing activities of continuing operations. In 2017, cash flows from operating activities reflect the period prior to the divestment of the combined Lumileds and Automotive businesses (six months of cash flows) and prior to the deconsolidation of Signify (eleven months of cash flows). In 2017, cash flows from investing activities includes the net cash outflow related to the deconsolidation of Signify of EUR 175 million, consisting of EUR 545 million proceeds from the sale of shares on November 28, 2017, offset by the deconsolidation of EUR 720 million of cash and cash equivalents, and proceeds of EUR 1,067 million received from the sale of the combined Lumileds and Automotive businesses. Assets classified as held for sale As of December 31, 2018, assets held for sale consisted of property, plant and equipment for an amount of EUR 23 million, and assets and liabilities directly associated with assets-held-for-sale businesses of EUR 52 million. As of December 31, 2017, assets held for sale consisted of the retained interest in Signify for an amount of EUR 1,264 million, property, plant and equipment for an amount of EUR 40 million, and assets and liabilities directly associated with assets held for sale businesses of EUR 44 million. |
Acquisitions and divestments
Acquisitions and divestments | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions and divestments [Abstract] | |
Disclosure of acquisitions and divestments [Text block] | Acquisitions and divestments 2018 Philips completed nine acquisitions in 2018. The acquisitions involved an aggregated net cash outflow of EUR 476 million and a contingent consideration of EUR 366 million at fair value. The aggregated impact on Goodwill and Other intangible assets was EUR 430 million and EUR 443 million respectively. EPD Solutions Ltd. (EPD) was the most notable acquisition and is discussed below. The remaining eight acquisitions involved an aggregated net cash outflow of EUR 228 million and a contingent consideration of EUR 127 million at fair value. Separately, the net cash outflow ranged from EUR 2 million to EUR 90 million. These remaining acquisitions had an aggregated impact on Goodwill and Other intangible assets of EUR 168 million and EUR 216 million respectively. EPD On July 9, 2018 Philips acquired 100% of the outstanding shares of EPD for an upfront cash consideration of EUR 250 million and a contingent consideration, which may be due between December 31, 2018 and December 31, 2030. In connection with the contingent consideration, the company recognized a Long-term provision of EUR 239 million at closing of the transaction. The estimated fair value of the contingent consideration is re-measured at each reporting period. Therefore, any changes in the fair value impacts reported earnings in each reporting period, thereby resulting in variability in earnings. For more details about the fair value measurements please refer to Fair value of financial assets and liabilities EPD is an innovator in image-guided procedures for cardiac arrhythmias (heart rhythm disorders). As of the date of acquisition, EPD is part of the Diagnosis & Treatment segment. Acquisition-related costs of EUR 6 million were recognized in General and administrative expenses. The condensed opening balance sheet of EPD as of July 9, 2018 was as follows: EPD Opening Balance sheet in millions of EUR 2018 2018 at acquisition date Goodwill 262 Intangible assets excluding goodwill 227 Property, plant and equipment - Deferred tax assets - Inventories - Receivables and other current assets - Cash 2 Accounts payable and other payables (2) Deferred tax liabilities - Provision for contingent consideration (239) Total assets and liabilities 250 Financed by equity (250) Opening balance positions are subject to final purchase price adjustments, which are expected to be processed in the second quarter of 2019. Main pending final purchase price adjustments concerns Other Intangible assets (Technology). Goodwill recognized in the amount of EUR 262 million, mainly represents expected revenue synergies leveraging the complementarity between EPD’s cardiac imaging and navigation system solutions and Philips' interventional imaging systems. Other intangible assets comprised of EUR 227 million of Technology, amortized over 10 years. The fair value of Technology is determined using the multi-period excess earnings method, which is a valuation technique that estimates the fair value of an asset based on market participants' expectations of the cash flows associated with that asset over its remaining useful life. The fair value of Technology is based on an estimate of positive future cash flows associated with incremental profits related to excess earnings until 2032, discounted at a rate of 14.4%. As from acquisition date, the contribution of EPD to revenue and net income in 2018 was not material. Divestments Philips completed two divestments in 2018. The divestments involved an aggregated cash consideration of EUR 68 million. 2017 Philips completed ten acquisitions in 2017. The acquisitions involved an aggregated net cash outflow of EUR 2,333 million. Including 2018 purchase price adjustments, these acquisitions had an aggregated impact on Goodwill and Other intangible assets of EUR 1,584 million and EUR 898 million respectively. The Spectranetics Corporation (Spectranetics) was the most notable acquisition and is discussed below. The remaining nine acquisitions involved an aggregated net cash outflow of EUR 425 million. Separately, the net cash outflow ranged from EUR 3 million to EUR 117 million. Including 2018 purchase price adjustments, these remaining acquisitions had an aggregated impact on Goodwill and Other intangible assets of EUR 317 million and EUR 228 million respectively. On August 9, 2017 Philips completed the acquisition of Spectranetics, by acquiring all of the issued and outstanding shares of Spectranetics for USD 38.50 per share, paid in cash at completion. As of the date of acquisition, Spectranetics became a wholly owned subsidiary of Philips and was consolidated within Philips Image-Guided Therapy business as part of the Diagnosis & Treatment businesses segment. Spectranetics is a US-based global leader in vascular intervention and lead management solutions, present in 11 countries and employs over 900 employees. The acquisition involved a net cash outflow of EUR 1,908 million. This amount comprised the purchase price of shares (EUR 1,441 million), the settlement of share-based compensation plans (EUR 94 million), the redemption of debt (EUR 378 million) and the settlement of various other items (EUR 48 million). The overall cash position of Spectranetics on the transaction date was EUR 53 million. The condensed opening balance sheet of Spectranetics, including minor final purchase price adjustments which were processed in the course of 2018, was as follows: Spectranetics Opening Balance sheet as of acquisition date in millions of EUR 2018 Goodwill 1,266 Intangible assets excluding goodwill 670 Property, plant and equipment 64 Deferred tax assets 136 Inventories 35 Receivables and other current assets 42 Cash 53 Accounts payable and other payables (53) Deferred tax liabilities (253) Total assets and liabilities 1,960 Financed by equity (1,960) The purchase price adjustments recognized in 2018 for all other acquisitions on Goodwill and Other intangible assets was EUR 24 million increase and EUR 24 million reduction respectively. Divestments Apart from the sale of the combined Lumileds and Automotive businesses and the deconsolidation of Signify, Philips completed two divestments during 2017 at an aggregate cash consideration of EUR 54 million. |
Interests in entities
Interests in entities | 12 Months Ended |
Dec. 31, 2018 | |
Interests in entities [Abstract] | |
Disclosure of interests in other entities [text block] | Interests in entities In this section we discuss the nature of the company’s interests in its consolidated entities and associates, and the effects of those interests on the company’s financial position and financial performance. Transactions in Signify shares In 2018, Philips completed various transactions in Signify shares (formerly Philips Lighting) which reduced the interest in this company from 29.01% as of December 31, 2017 to 16.5% as of December 31, 2018. In February 2018, Philips sold 16.22 million shares through an accelerated bookbuild offering to institutional investors. Subsequently, during the fourth quarter of 2018, Philips sold a total of 4.04 million shares. Given Philips’ shareholding in Signify of 16.5%, with Philips’ CFO stepping down from the Supervisory Board of Signify as of December 31, 2018, the remaining stake was reclassified from Assets classified as held-for-sale to Current financial assets, with fair value changes recognized through OCI. Group companies Set out below is a list of material subsidiaries as per December 31, 2018 representing greater than 5% of either the consolidated group Sales, Income from operations or Income from continuing operations (before any intra-group eliminations) of Group legal entities. All of the entities are fully consolidated in the group accounts of the company. Philips Group Interests in group companies in alphabetical order 2018 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips Medizin Systeme Böblingen GmbH Germany Philips GmbH Germany Philips Consumer Lifestyle B.V. Netherlands Philips Medical Systems Nederland B.V. Netherlands Philips Ultrasound, Inc. United States Philips Oral Healthcare, LLC United States Philips North America LLC United States Respironics, Inc. United States Information related to Non-controlling interests As of December 31, 2018, six consolidated subsidiaries are not wholly owned by Philips (December 31, 2017: four). In 2018, Sales to third parties and Net income for these subsidiaries in aggregate are EUR 627 million and EUR 27 million respectively. Investments in associates Philips has investments in a number of associates. None of them are regarded as individually material. During 2018, Philips purchased ten investments in associates, which involved an aggregated amount of EUR 107 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. At December 31, 2018, Philips’ stake in Philips Medical Capital, LLC had a carrying value of EUR 24 million (December 31, 2017: EUR 29 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, 2018 | |
Income from operations [Abstract] | |
Disclosure of income from operations [Text block] | Income from operations For information related to Sales on a segment and geographical basis, see Information by segment and main country Philips Group Sales and costs by nature in millions of EUR 2016 - 2018 2016 2017 2018 Sales 17,422 17,780 18,121 Costs of materials used (5,030) (4,918) (4,826) Employee benefit expenses (5,298) (5,824) (5,827) Depreciation and amortization (976) (1,025) (1,089) Shipping and handling (545) (602) (605) Advertising and promotion (915) (939) (937) Lease expense 1 (223) (227) (225) Other operational costs 2 (2,963) (2,804) (2,948) Other business income (expenses) (6) 76 55 Income from operations 1,464 1,517 1,719 1 Lease expense includes EUR 32 million (2017: EUR 38 million, 2016: EUR 30 million) of other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor 2 Other operational costs contain items which are dissimilar in nature and individually insignificant in amount to disclose separately. These costs contain among others expenses for outsourcing services, mainly in IT and HR, 3rd party workers, consultants, warranty, patents, costs for travelling, external legal services and EUR 81 million government grants recognized in 2018 (2017: EUR 90 million, 2016: EUR 79 million). The grants mainly relate to research and development activities and business development. Sales composition and disaggregation Philips Group Sales composition in millions of EUR 2016 - 2018 2016 2017 2018 Goods 13,568 13,974 14,056 Services 3,478 3,477 3,325 Royalties 375 329 402 Total sales from contracts with customers 17,784 Other sources 1 338 Sales 17,422 17,780 18,121 1 Other sources mainly includes leases At 31 December 2018, the aggregate amount of the transaction price allocated to remaining performance obligations from a sale of goods and services was EUR 10,637 million. The company expects to recognize approximately 47% of the remaining performance obligations within 1 year. Revenue expected to be recognized beyond 1 year is mostly related to longer term customer service and software contracts. Philips Group Disaggregation of Sale per segment in millions of EUR 2016 - 2018 2016 2017 2018 Total sales Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Diagnosis & Treatment 6,686 6,891 4,883 2,328 7,212 34 7,245 Connected Care & Health Informatics 3,158 3,163 2,124 914 3,038 46 3,084 Personal Health 7,099 7,310 6,952 18 6,969 258 7,228 Other 479 416 310 254 564 - 564 Philips Group 17,422 17,780 14,270 3,514 17,784 338 18,121 1 Sales from other sources mainly includes leases 2 Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2016 - 2018 2016 2017 2018 Total sales Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Western Europe 3,756 3,802 3,174 781 3,955 35 3,990 North America 6,279 6,409 4,616 1,696 6,311 27 6,338 Other mature geographies 1,792 1,707 1,280 339 1,619 273 1,892 Total mature geographies 11,826 11,918 9,070 2,815 11,885 335 12,221 Growth geographies 5,596 5,862 5,200 699 5,898 2 5,901 Sales 17,422 17,780 14,270 3,514 17,784 338 18,121 1 Sales from other sources mainly includes leases 2 Represents revenue from external customers as required by IFRS 8 Operating Segments. Costs of materials used Cost of materials used represents the inventory recognized in cost of sales. Employee benefit expenses Philips Group Employee benefit expenses in millions of EUR 2016 - 2018 2016 2017 2018 Salaries and wages 1 4,422 4,856 4,849 Post-employment benefits costs 279 347 351 Other social security and similar charges: - Required by law 489 514 524 - Voluntary 108 108 103 Employee benefit expenses 5,298 5,824 5,827 1 Salaries and wages includes EUR 102 million (2017: EUR 122 million, 2016: EUR 95 million) of share-based compensation expenses. The employee benefit expenses relate to employees who are working on the payroll of Philips, both with permanent and temporary contracts. For further information on post-employment benefit costs, see Post-employment benefits For details on the remuneration of the members of the Board of Management and the Supervisory Board, see Information on remuneration Employees The average number of employees by category is summarized as follows: Philips Group Employees in FTEs 2016 - 2018 2016 2017 2018 Production 27,899 27,697 30,774 Research & development 9,087 9,787 10,700 Other 24,565 26,314 26,175 Employees 61,552 63,798 67,649 3rd party workers 8,050 8,098 7,239 Continuing operations 69,602 71,895 74,888 Discontinued operations 43,971 43,497 Philips Group 113,572 115,392 74,888 Employees consist of those persons working on the payroll of Philips and whose costs are reflected in the Employee benefit expenses table. 3 rd Philips Group Employees per geographical location in FTEs 2016 - 2018 2016 2017 2018 Netherlands 11,199 11,308 11,427 Other countries 58,403 60,587 63,460 Continuing operations 69,602 71,895 74,888 Discontinued operations 43,971 43,497 Philips Group 113,572 115,392 74,888 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 2016 - 2018 2016 2017 2018 Depreciation of property, plant and equipment 458 437 438 Amortization of software 49 50 64 Amortization of other intangible assets 244 260 347 Amortization of development costs 225 277 240 Depreciation and amortization 976 1,025 1,089 1 Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill Depreciation of property, plant and equipment is primarily included in cost of sales. Amortization of the categories of other intangible assets are reported in selling expenses for brand names and customer relationships and are reported in cost of sales for technology based and other intangible assets. Amortization of development cost is included in research and development expenses. Shipping and handling Shipping and handling costs are included in cost of sales and selling expenses in Consolidated statements of income Significant accounting policies Advertising and promotion Advertising and promotion costs are included in selling expenses in Consolidated statements of income Audit fees The table below shows the fees attributable to the fiscal years 2016, 2017 and 2018 for services rendered by the respective Group auditors. Philips Group Agreed fees 2016 - 2018 2016 2017 2018 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 8.8 9.6 18.4 9.0 8.9 17.9 6.5 4.9 11.3 -consolidated financial statements 8.8 4.6 13.4 9.0 4.4 13.4 6.5 2.3 8.8 -statutory financial statements 5 5.0 0.0 4.5 4.5 2.5 2.5 Audit-related fees 2 1.5 0.8 2.3 0.8 0.7 1.5 0.5 0.3 0.9 -Acquisitions and divestments 0.8 0.1 0.9 0.0 0.0 0.0 -Sustainability assurance 0.7 0.0 0.7 0.7 0.0 0.7 0.4 0.4 -Other 0.7 0.7 0.1 0.7 0.8 0.1 0.3 0.5 Fees 10.3 10.4 20.7 9.7 9.6 19.4 7.0 5.2 12.2 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 2016 - 2018 2016 2017 2018 Result on disposal of businesses: - income 1 15 45 - expense (4) (5) - Result on disposal of fixed assets: - income 4 96 20 - expense (1) (1) (1) Result on other remaining businesses: - income 13 41 23 - expense (17) (62) (32) Impairment of goodwill 1 (1) (9) Other business income (expense) (6) 76 55 Total other business income 17 152 88 Total other business expense (23) (76) (33) 1 Further information on goodwill movement can be found in Goodwill The result on disposal of businesses was mainly due to divestment of non-strategic businesses. The result on disposal of fixed assets was mainly due to sale of real estate assets. The result on other remaining businesses mainly relates to non-core revenue and various legal matters. |
Financial income and expenses
Financial income and expenses | 12 Months Ended |
Dec. 31, 2018 | |
Financial income and expenses [Abstract] | |
Financial income and expenses [Text block] | Financial income and expenses Philips Group Financial income and expenses in millions of EUR 2016 - 2018 2016 201 2018 Interest income 43 40 31 Interest income from loans and receivables 15 12 8 Interest income from cash and cash equivalents 28 28 22 Dividend income from financial assets 4 64 2 Net gains from disposal of financial assets 3 1 6 Net change in fair value of financial assets at fair value through profit or loss 7 Other financial income 15 14 12 Financial income 65 126 51 Interest expense (342) (222) (188) Interest on debt and borrowings (288) (177) (158) Finance charges under finance lease contract (7) (8) (7) Interest expenses - pensions (48) (37) (23) Provision-related accretion and interest 44 (22) (15) Net foreign exchange losses (1) (2) (2) Impairment loss of financial assets (24) (2) - Net change in fair value of financial assets at fair value through profit or loss (4) (1) Net change in fair value of financial liabilities at fair value through profit or loss Other financial expenses (180) (15) (58) Financial expense (507) (263) (264) Financial income and expenses (442) (137) (213) Net financial income and expense showed a EUR 213 million expense in 2018, which was EUR 76 million higher than in 2017. Other financial expenses included financial charges related to the early redemption of USD bonds of EUR 46 million. Net interest expense in 2018 was EUR 25 million lower than in 2017, mainly due to lower interest expenses on pensions and lower interest expenses on net debt. Net financial income and expense showed a EUR 137 million expense in 2017, which was EUR 305 million lower than in 2016. Net interest expense in 2017 was EUR 117 million lower than in 2016, mainly due to lower interest expenses on net debt following the bond redemptions in October 2016 and January 2017. Higher dividend income was mainly related to the retained interest in the combined businesses of Lumileds and Automotive. Impairment charges in 2016 amounted to EUR 24 million mainly due to Corindus Vascular Robotics. Lower provision-related accretion and interest in 2016 is primarily due to the release of accrued interest as a result of the settlement of the Masimo litigation. Other financial expenses included financial charges related to the early redemption of USD bonds of EUR 153 million. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income taxes [Abstract] | |
Disclosure of income tax [text block] | Income taxes The income tax expense of continuing operations amounted to EUR 193 million (2017: EUR 349 million, 2016: EUR 203 million). The components of income before taxes and income tax expense are as follows: Philips Group Income tax expense in millions of EUR 2016 - 2018 2016 2017 2018 Netherlands 137 929 636 Foreign 886 451 869 Income before taxes of continuing operations 1 1,023 1,381 1,505 Netherlands: Current tax (expense) benefit 10 (15) (25) Deferred tax (expense) benefit (95) (150) 16 Total tax (expense) benefit of continuing operations (Netherlands) (85) (165) (9) Foreign: Current tax (expense) benefit (155) (258) (289) Deferred tax (expense) benefit 37 73 105 Total tax (expense) benefit of continuing operations (foreign) (118) (184) (184) Income tax expense of continuing operations (203) (349) (193) 1 Income before tax excludes the result of investments in associates. Income tax expense of continuing operations excludes the tax benefit of the discontinued operations of EUR 14 million (2017: EUR 182 million tax expense, 2016: EUR 181 million tax expense), further detailed in section Discontinued operations and assets classified as held for sale The components of income tax expense of continuing operations are as follows: Philips Group Current income tax expense in millions of EUR 2016 - 2018 2016 2017 2018 Current year tax (expense) benefit (165) (275) (318) Prior year tax (expense) benefit 20 3 4 Current tax (expense) (145) (272) (314) Philips Group Deferred income tax expense In millions of EUR 2016 - 2018 2016 2017 2018 Changes to recognition of tax loss and credit carry forwards (37) 23 (2) Changes to recognition of temporary differences 31 35 4 Prior year tax (1) 6 15 Tax rate changes 5 (72) (26) Origination and reversal of temporary differences, tax losses and tax credits (56) (69) 130 Deferred tax (expense) benefit (58) (77) 121 Philips’ operations are subject to income taxes in various foreign jurisdictions. The statutory income tax rate varies per country, which results in a difference between the weighted average statutory income tax rate and the Netherlands’ statutory income tax rate of 25.0% (2017: 25.0%; 2016: 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 % 2016 - 2018 2016 2017 2018 Weighted average statutory income tax rate in % 23.3 24.5 24.9 Recognition of previously unrecognized tax loss and credit carryforwards (1.9) (2.3) (0.4) Unrecognized tax loss and credit carryforwards 5.5 0.6 0.5 Changes to recognition of temporary differences (3.1) (2.6) (0.3) Non-taxable income and tax incentives (8.2) (9.8) (11.9) Non-deductible expenses 9.3 6.4 3.7 Withholding and other taxes 1.2 4.0 4.5 Tax rate changes (0.5) 5.2 1.8 Prior year tax (1.8) (0.6) (1.3) Tax expenses (benefit) due to other tax liabilities (2.6) (1.7) (8.6) Others, net (1.3) 1.5 (0.1) Effective income tax rate 19.9 25.3 12.8 The effective income tax rate is lower than the weighted average statutory income tax rate in 2018, mainly due to one-time non-cash benefits from tax audit resolutions and business integration. These tax audit resolutions in multiple jurisdictions, partly offset by provisions relating to tax risks, are reflected in the ‘Tax expense (benefit) due to other tax liabilities’ line. The impact of business integration is included in the ‘Non-taxable income and tax incentives’ line. 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 2018 and 2017 respectively are presented in the tables below. The net deferred tax assets of EUR 1,676 million (2017: EUR 1,565 million) consist of deferred tax assets of EUR 1,828 million (2017: EUR 1,598 million) and deferred tax liabilities of EUR 152 million (2017: EUR 33 million). Of the total deferred tax assets of EUR 1,828 million at December 31, 2018 (2017: EUR 1,598 million), EUR 203 million (2017: EUR 161 million) is recognized in respect of entities in various countries where there have been tax losses in the current or preceding period. Management’s projections support the assumption that it is probable that the results of future operations will generate sufficient taxable income to utilize these deferred tax assets. At December 31, 2018 the temporary differences associated with investments, including potential income tax consequences on dividends, for which no deferred tax liabilities are recognized, aggregate to EUR 186 million (2017: EUR 290 million). Philips Group Deferred tax assets and liabilities in millions of EUR 2018 Balance as of January 1, 2018 recognized in income statement other 1 Balance as of December 31, 2018 Assets Liabilities Intangible assets (383) 299 (78) (162) 90 (252) Property, plant and equipment 23 (13) 2 12 32 (20) Inventories 231 18 8 257 265 (8) Other assets 74 (38) 15 50 77 (27) Pensions and other employee benefits 265 (17) 19 267 269 (2) Other liabilities 536 (137) 30 428 537 (109) Deferred tax assets on tax loss carryforwards 819 11 (6) 824 824 - Set-off deferred tax positions (265) 265 Net deferred tax assets 1,565 121 (10) 1,676 1,828 (152) 1 Other includes the movements of assets and liabilities recognized in OCI, which includes foreign currency translation differences, acquisitions and divestments. Philips Group Deferred tax assets and liabilities in millions of EUR 2017 Balance as of January 1, 2017 recognized in income statement Transfer to assets held for sale other 1 Balance as of December 31, 2017 Assets Liabilities Intangible assets (676) 549 (28) (228) (383) 423 (806) Property, plant and equipment 10 15 (2) 23 39 (16) Inventories 347 (34) (52) (29) 231 235 (4) Other assets 138 7 (82) 12 74 96 (22) Pensions and other employee benefits 597 (126) (149) (57) 265 265 - Other liabilities 989 (288) (8) (158) 536 596 (61) Deferred tax assets on tax loss carryforwards 1,288 (201) (125) (144) 819 819 - Set-off deferred tax positions (876) 876 Net deferred tax assets 2,692 (77) (444) (606) 1,565 1,598 (33) 1 Other includes the movements of assets and liabilities recognized in OCI, which includes foreign currency translation differences and acquisitions, as well as the effects of US Tax Cuts and Jobs Act. 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, 2017 Unrecognized balance as of December 31, 2017 Total Balance as of December 31, 2018 Unrecognized balance as of December 31, 2018 Within 1 year 3 3 2 1 1 to 2 years 5 2 3 1 2 to 3 years 15 6 16 4 3 to 4 years 14 2 1,911 1,906 4 to 5 years 1,843 1,809 18 6 Later 2,134 410 2,312 36 Unlimited 1,812 1,118 1,728 1,123 Total 5,827 3,351 5,990 3,077 At December 31, 2018, the amount of deductible temporary differences for which no deferred tax asset has been recognized in the balance sheet was EUR 37 million (2017: EUR 42 million). Tax risks Philips is exposed to tax risks. With regard to these tax risks a liability is recognized if, as a result of a past event, Philips has an obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. These uncertain positions are presented as Other tax liabilities in Other liabilities US Tax Cuts and Jobs Act Philips assessed the impact of the material aspects of the US Tax Cuts and Jobs Act on its current and deferred tax assets and liabilities. These reported amounts may be subject to estimation uncertainty and measurement adjustments may need to be made in subsequent reporting periods as Philips will get more accurate information on the impact of the Act and the modalities of its application. The main uncertainties relate to the availability of net interest expense carryforwards and the amount of tax earnings and profits subject to tax under the mandatory deemed repatriation provisions. 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, 2018 | |
Earnings per share [abstract] | |
Disclosure of earnings per share [text block] | Earnings per share Philips Group Earnings per share in millions of EUR unless otherwise stated 1 2016 - 2018 2016 2 2017 2 2018 Income from continuing operations 831 1,028 1,310 Income (loss) attributable to non-controlling interest, from continuing operations 4 11 7 Income from continuing operations attributable to shareholders 826 1,017 1,303 Income from Discontinued operations 660 843 (213) Income (loss) attributable to non-controlling interest, from Discontinued operations 38 203 Income from Discontinued operations attributable to shareholders 622 639 (213) Net income attributable to shareholders 1,448 1,657 1,090 Weighted average number of common shares outstanding (after deduction of treasury shares) during the year 918,015,863 928,797,650 922,987,190 Plus incremental shares from assumed conversions of: Options 2,456,616 3,161,267 2,007,703 Performance shares 6,985,509 10,757,785 8,632,652 Restricted share rights 1,331,163 2,008,162 2,223,382 Forward contracts 407,193 Dilutive potential common shares 10,773,289 16,334,406 12,863,738 Diluted weighted average number of shares (after deduction of treasury shares) during the year 928,789,152 945,132,056 935,850,928 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 0.90 1.10 1.41 Income from Discontinued operations attributable to shareholders 0.68 0.69 (0.23) Net income attributable to shareholders 1.58 1.78 1.18 Diluted earnings per common share in EUR 3 4 Income from continuing operations attributable to shareholders 0.89 1.08 1.39 Income from Discontinued operations attributable to shareholders 0.67 0.68 (0.23) Net income attributable to shareholders 1.56 1.75 1.16 Dividend distributed per common share in euros 0.80 0.80 0.80 1 Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 2 During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies 3 In 2016, 9 million securities that could potentially dilute basic EPS were not included in the computation of dilutive EPS because the effect would have been antidilutive for the periods presented. 4 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, 2018 | |
Property, plant and equipment [abstract] | |
Disclosure of property, plant and equipment [text block] | Property, plant and equipment Philips Group Property, plant and equipment in millions of EUR 2018 land and buildings machinery and installations other equipment prepayments and construction in progress total Balance as of January 1, 2018 Cost 1,111 1,708 1,449 140 4,408 Accumulated depreciation (527) (1,217) (1,074) (2,818) Book value 584 491 376 140 1,591 Change in book value: Capital expenditures 20 126 64 337 546 Assets available for use 68 99 108 (275) - Acquisitions - (5) 7 - 2 Depreciation (56) (191) (162) (409) Impairments (5) (13) (12) - (30) Translations differences and other 11 (2) 4 - 13 Total changes 37 13 7 63 121 Balance as of December 31, 2018 Cost 1,193 1,669 1,523 203 4,588 Accumulated depreciation (572) (1,164) (1,140) (2,876) Book value 621 504 383 203 1,712 Philips Group Property, plant and equipment in millions of EUR 2017 land and buildings machinery and installations other equipment prepayments and construction in progress total Balance as of January 1, 2017 Cost 1,766 3,222 1,897 179 7,064 Accumulated depreciation (912) (2,546) (1,451) (4,909) Book value 854 676 446 179 2,155 Change in book value: Capital expenditures 17 128 86 320 551 Assets available for use 63 117 129 (309) - Disposals and sales - 71 3 74 Depreciation (60) (205) (169) (434) Impairments (1) (32) (11) - (44) Reclassifications 39 (47) 9 3 4 Transfer (to) from assets classified as held for sale (284) (186) (82) (44) (596) Translations differences and other (44) (32) (35) (9) (120) Total changes (270) (185) (70) (39) (564) Balance as of December 31, 2017 Cost 1,111 1,708 1,449 140 4,408 Accumulated depreciation (527) (1,217) (1,074) (2,818) Book value 584 491 376 140 1,591 Land with a book value of EUR 56 million at December 31, 2018 (2017: EUR 50 million) is not depreciated. Property, plant and equipment includes financial lease assets with a book value of EUR 334 million at December 31, 2018 (2017: EUR 281 million). The expected useful lives of property, plant and equipment are as follows: Philips Group Useful lives of property, plant and equipment in years Buildings from 5 to 50 years Machinery and installations from 3 to 20 years Other equipment from 1 to 10 years |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill [Abstract] | |
Disclosure of goodwill [text block] | Goodwill The changes in 2017 and 2018 were as follows: Philips Group Goodwill in millions EUR 2017 - 2018 2017 2018 Balance as of January 1: Cost 11,151 9,074 Impairments (2,253) (1,343) Book value 8,898 7,731 Changes in book value: Acquisitions 1,548 465 Divestments and transfers to assets classified as held for sale (1,878) (3) Translation differences and other (836) 310 Balance as of December 31: Cost 9,074 9,908 Impairments (1,343) (1,405) Book value 7,731 8,503 Goodwill increased by EUR 465 million in 2018, mainly from the acquisition of EPD Solutions for an amount of EUR 262 million and other acquisitions for an amount of EUR 203 million. The further increase of EUR 310 million is mainly due to translation differences which impacted the goodwill denominated in USD. In 2017, the increase of goodwill for the amount of EUR 1,548 million relates to Spectranetics for an amount of EUR 1,255 million and other acquisitions for an amount of EUR 293 million. Divestments of EUR 1,878 million primarily relate to the divestment of Signify. Information on the divestment of Signify can be found in Discontinued operations and assets classified as held for sale In 2018, the activities of Patient Care & Monitoring Solutions in the segment Connected Care & Health Informatics were split over two new cash-generating units: Monitoring & Analytics and Therapeutic Care. As a result of the change, the goodwill associated with Patient Care & Monitoring Solutions was allocated over these two new units based on the estimated fair value of Monitoring & Analytics and Therapeutic Care relative to the Q4 2017 Patient Care & Monitoring Solutions value in use calculation. The Therapeutic Care goodwill is considered not to be significant in comparison to the total book value of goodwill. Goodwill impairment testing For impairment testing, goodwill is allocated to (groups of) cash-generating units (typically one level below segment level), which represent the lowest level at which the goodwill is monitored internally for management purposes. Goodwill allocated to the cash-generating units Image-Guided Therapy, Monitoring & Analytics and Sleep & Respiratory Care is considered to be significant in comparison to the total book value of goodwill for the Group at December 31, 2018. The amounts associated as of December 31, 2018 are presented below: Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2017 - 2018 2017 2018 Image-Guided Therapy 2,242 2,357 Patient Care & Monitoring Solutions 1,349 Monitoring & Analytics 1,354 Sleep & Respiratory Care 1,819 1,925 Other (units carrying a non-significant goodwill balance) 2,321 2,867 Book value 7,731 8,503 The basis of the recoverable amount used in the annual impairment tests for the units disclosed in this note is the value in use. In the annual impairment test performed in the fourth quarter of 2018, the estimated recoverable amounts of the cash-generating units tested approximated or exceeded the carrying value of the units, therefore no impairment loss was recognized. Key assumptions - general Key assumptions used in the impairment tests for the units were sales growth rates, EBITA * The sales growth rates and EBITA * * Key assumptions and sensitivity analysis relating to cash-generating units to which a significant amount of goodwill is allocated Cash flow projections of Image-Guided Therapy, Monitoring & Analytics and Sleep & Respiratory Care are based on the key assumptions included in the table below, which were used in the annual impairment test performed in the fourth quarter: Philips Group Key assumptions in % 2018 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 8.1 5.2 2.3 9.3 Monitoring & Analytics 6.5 4.0 2.3 9.9 Sleep & Respiratory Care 8.4 4.8 2.3 10.6 1 Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2 Also referred to later in the text as compound long-term sales growth rate 3 The historical long-term growth rate is only applied to the first year after the 4 year extrapolation period, after which no further growth is assumed for the terminal value calculation The assumptions used for the 2017 cash flow projections were as follows: Philips Group Key assumptions in % 2017 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 5.3 4 2.3 10.9 Patient Care & Monitoring Solutions 3.8 4.8 2.3 12.3 Sleep & Respiratory Care 7.2 5.6 2.3 12.1 1 Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2 Also referred to later in the text as compound long-term sales growth rate 3 The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation The results of the annual impairment test of Image-Guided Therapy, Monitoring & Analytics and Sleep & Respiratory Care indicate that a reasonably possible change in key assumptions would not cause the value in use to fall to the level of the carrying value. Additional information relating to cash-generating units to which a non-significant amount relative to the total goodwill is allocated In addition to the significant goodwill recorded at the units mentioned above, Aging & Caregiving (formerly Home Monitoring) and Population Insights & Care (formerly Population Health Management) are sensitive to fluctuations in the assumptions as set out above. Based on the most recent impairment test of the cash-generating unit Aging & Caregiving, it was noted that an increase of 300 points in the pre-tax discount rate, a 730 basis points decline in the compound long-term sales growth rate or a 39% decrease in terminal value would, individually, cause its recoverable amount to fall to the level of its carrying value. The goodwill allocated to Aging & Caregiving at December 31, 2018 amounts to EUR 43 million. Based on the annual impairment test of the cash-generating unit Population Insights & Care, it was noted that an increase of 10 points in the pre-tax discount rate, a 30 basis points decline in the compound long-term sales growth rate or a 3% decrease in terminal value would, individually, cause its recoverable amount to fall to the level of its carrying value. The goodwill allocated to Population Insights & Care at December 31, 2018 amounts to EUR 207 million. Impairment tests are performed based on forward looking assumptions, using the most recent available information. By their nature, these assumptions involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from the plans, goals and expectations set forth in these assumptions. For the two cash-generating units Aging & Caregiving and Population Insights & Care there is a higher risk that those deviations might cause the recoverable amount to fall below the level of its carrying value. For the other cash-generating units to which a non-significant amount relative to the total goodwill is allocated any reasonable change in assumptions would not cause the value in use to fall to the level of the carrying value. * Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS measure, refer to Information by segment and country |
Intangible assets excluding goo
Intangible assets excluding goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets excluding goodwill [Abstract] | |
Disclosure of intangible assets excluding goodwill [Text block] | Intangible assets excluding goodwill The changes were as follows: Philips Group Intangible assets excluding goodwill in millions of EUR 2018 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2018 Cost 670 2,342 1,985 1,848 487 605 105 8,042 Amortization/ impairments (392) (1,338) (1,161) (1,262) (51) (431) (84) (4,720) Book value 278 1,004 824 586 436 174 21 3,322 Changes in book value: Additions: Purchases 7 14 92 92 1 205 Internally generated assets 203 203 Assets available for use 256 (256) Acquisitions 11 17 330 - 56 415 Amortization (34) (114) (116) (221) (59) (4) (549) Impairments (52) (16) (9) (16) (1) (5) (2) (101) Translation differences and other 3 36 27 15 8 2 3 94 Total changes (72) (70) 246 34 45 30 53 267 Balance as of December 31, 2018 Cost 689 2,421 2,400 2,103 532 684 168 8,997 Amortization/ impairments (484) (1,488) (1,330) (1,483) (51) (480) (93) (5,408) Book Value 205 934 1,070 621 481 204 75 3,589 Philips Group Intangible assets excluding goodwill in millions of EUR 2017 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2017 Cost 1,088 3,429 2,074 1,899 578 580 134 9,782 Amortization/ impairments (633) (2,188) (1,491) (1,362) (36) (421) (99) (6,230) Book value 455 1,241 583 537 542 159 34 3,552 Changes in book value: Additions: Purchases - 23 149 86 3 261 Internally generated assets 189 189 Assets available for use 363 (363) Acquisitions 7 431 470 2 16 926 Amortization (40) (142) (100) (213) - (52) (3) (550) Impairments (12) (43) (27) (1) (83) Divestments and transfers to assets classified as held for sale (120) (438) (103) (23) (11) (19) (6) (721) Translation differences (24) (89) (37) (35) (43) (1) (23) (252) Total changes (178) (238) 241 49 (106) 15 (13) (230) Balance as of December 31, 2017 Cost 670 2,342 1,985 1,848 487 605 105 8,042 Accumulated amortization (392) (1,338) (1,161) (1,262) (51) (431) (84) (4,720) Book Value 278 1,004 824 586 436 174 21 3,322 The acquisitions through business combinations in 2018 mainly consist of the acquired intangible assets of EPD Solutions Ltd. For more information, please refer to Acquisitions and divestments The amortization of intangible assets is specified in Income from operations The expected useful lives of the intangible assets excluding goodwill are as follows: Philips Group Expected useful lives of intangible assets excluding goodwill in years Brand names 2-20 Customer relationships 2-25 Technology 3-20 Other 1-10 Software 1-10 Product development 3-7 The weighted average expected remaining life of brand names, customer relationships, technology and other intangible assets is 9.3 years as of December 31, 2018 (2017: 9.6 years). At December 31, 2018 the carrying amount of customer relationships of Sleep & Respiratory Care was EUR 278 million with a remaining amortization period of 5 years (2017: EUR 315 million; 6 years). For the intangibles relating to the acquisition of Spectranetics refer to Acquisitions and divestments |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2018 | |
Other financial assets [Abstract] | |
Disclosure of other financial assets [Text block] | Other financial assets Other current financial assets In 2018 current financial assets increased by EUR 434 million from EUR 2 million in 2017 to EUR 436 million in 2018, reflecting mainly the remaining interest in Signify (formerly Philips Lighting) of 16.5% as of December 31, 2018 (please refer to Interests in entities Other non-current financial assets The changes during 2018 were as follows: Philips Group Other non-current financial assets in millions of EUR 2018 Non-current financial assets at FVTP&L Non-current financial assets at FVTOCI Non-current financial assets at Amortized cost Total Balance as of January 1, 2018 1 104 369 114 587 Changes: Acquisitions/additions 30 1 14 45 Sales/redemptions/reductions (20) (18) (78) (116) Value adjustment through OCI - (164) (164) Value adjustment through P&L (2) - (1) Translation differences and other 2 12 (4) 10 Reclassifications 2 (2) - - Balance as of December 31, 2018 116 198 46 360 1 Refer to IFRS 9 disclosure in Significant accounting policies note for the impact of IFRS 9 on 2018 opening balance. Philips Group Other non-current financial assets in millions of EUR 2017 available-for-sale financial assets loans and receivables held-to-maturity investments financial assets at fair value through profit or loss total Balance as of January 1, 2017 172 134 2 27 335 Changes: Reclassifications (1) 2 - 1 2 Acquisitions/additions 368 5 - - 374 Sales/redemptions (23) (8) - (3) (34) Impairment (1) - (1) Value adjustments (46) - 8 (39) Translation differences and other (24) (20) (1) (6) (50) Balance as of December 31, 2017 446 114 1 27 587 The company’s investments in non-current financial assets mainly consist of investments in common shares of companies in various industries. In 2018, the main movements in non-current financial assets at FVTOCI can be explained by value adjustments related to the retained investment in the combined Lumileds and Automotive businesses (please refer to Fair value of financial assets and liabilities The retained investment in the combined businesses of Lumileds and Automotive of EUR 112 million (December 31, 2017: EUR 243 million) is classified as a financial asset recognized at fair value through OCI. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2018 | |
Other assets [Abstract] | |
Disclosure of other non-current assets [text block] | Other assets Other non-current assets Other non-current assets in 2018 mainly related to prepaid expenses of EUR 47 million (2017: EUR 74 million). Other current assets Other current assets include EUR 276 million (2017: EUR 186 million) accrued income and EUR 193 million (2017: EUR 206 million) for prepaid expense mainly related to Diagnosis & Treatment businesses and Connected Care & Health Informatics businesses. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Disclosure of inventories [text block] | Inventories Inventories are summarized as follows: Philips Group Inventories in millions of EUR 2017 - 2018 2017 2018 Raw materials and supplies 715 876 Work in process 358 366 Finished goods 1,280 1,432 Inventories 2,353 2,674 The write-down of inventories to net realizable value was EUR 159 million in 2018 (2017: EUR 150 million). The write-down is included in cost of sales. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Disclosure of trade and other receivables [text block] | Receivables Non-current receivables Non-current receivables are associated mainly with customer financing in Diagnosis & Treatment businesses amounting to EUR 44 million (2017: EUR 47 million), for Signify indemnification amounting to EUR 59 million and insurance receivables in Other in the US amounting to EUR 41 million (2017: EUR 47 million). Current receivables Current receivables at December 31, 2018 included accounts receivable net of EUR 3,805 million, accounts receivable other of EUR 203 million and accounts receivable from investments in associates of EUR 27 million. The accounts receivable, net, per segment are as follows: Philips Group Accounts receivables-net in millions of EUR 2017 - 2018 2017 2018 Diagnosis & Treatment 1,489 1,601 Connected Care & Health Informatics 706 723 Personal Health 1,341 1,411 Other 72 70 Accounts receivable-net 3,609 3,805 The aging analysis of accounts receivable, net, is set out below: Philips Group Aging analysis in millions of EUR 2017 - 2018 2017 2018 current 3,046 3,222 overdue 1-30 days 256 228 overdue 31-180 days 242 270 overdue > 180 days 63 85 Accounts receivable-net 3,609 3,805 The above net accounts receivable represent current and overdue but not fully impaired receivables. The changes in the allowance for doubtful accounts receivable are as follows: Philips Group Allowance for accounts receivable in millions of EUR 2016 - 2018 20 2017 201 Balance as of January 1 301 318 215 Additions charged to expense 76 41 28 Deductions from allowance 1 (64) (36) (28) Transfer to assets held for sale (92) Other movements 5 (16) (21) Balance as of December 31 318 215 194 1 Write-offs for which an allowance was previously provided. The allowance for doubtful accounts receivable has been primarily established for receivables that are past due. Included in the above balances as per December 31, 2018 are allowances for individually impaired receivables of EUR 181 million (2017: EUR 197 million; 2016: EUR 289 million). . Contract assets Current contract assets were EUR 232 million per December 31, 2018 (2017: EUR 171 million). The contract assets increased with EUR 61 million. The year-on-year change is mainly driven by timing differences between billing terms and services provided. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [abstract] | |
Disclosure of equity [Text block] | Equity Common shares As of December 31, 2018, authorized common shares consist of 2 billion shares (December 31, 2017: 2 billion; December 31, 2016: 2 billion) and the issued and fully paid share capital consists of 926,195,539 common shares, each share having a par value of EUR 0.20 (December 31, 2017: 940,909,027; December 31, 2016: 929,644,864). Preference shares As a means to protect the Company and its stakeholders against an unsolicited attempt to obtain (de facto) control of the Company, the General Meeting of Shareholders in 1989 adopted amendments to the Company’s articles of association that allow the Board of Management and the Supervisory Board to issue (rights to acquire) preference shares to a third party. The ‘Stichting Preferente Aandelen Philips’ has been granted the right to acquire preference shares in the Company. Such right has not been exercised as of December 31, 2018 and no preference shares have been issued. Authorized preference shares consist of 2 billion shares as of December 31, 2018 (December 31, 2017: 2 billion; December 31, 2016: 2 billion). Options, restricted and performance shares The Company has granted stock options on its common shares and rights to receive common shares in the future (see Share-based compensation Treasury shares In connection with the Company’s share repurchase programs (see next paragraph: Share repurchase methods for share-based compensation plans and capital reduction purposes), shares which have been repurchased and are held in Treasury for the purpose of (i) delivery upon exercise of options, restricted and performance share programs, and (ii) capital reduction, are accounted for as a reduction of shareholders’ equity. Treasury shares are recorded at cost, representing the market price on the acquisition date. When issued, shares are removed from treasury shares on a first-in, first-out (FIFO) basis. When treasury shares are reissued under the Company’s option plans, the difference between the cost and the cash received is recorded in retained earnings. When treasury shares are reissued under the Company’s share plans, the difference between the market price of the shares issued and the cost is recorded in retained earnings, the market price is recorded in capital in excess of par value. The following table shows the movements in the outstanding number of shares over the last three years: Philips Group Outstanding number of shares in number of shares 2016 - 2018 2016 2017 2018 Balance as of January 1 917,103,586 922,436,563 926,191,723 Dividend distributed 17,344,462 11,264,163 9,533,223 Purchase of treasury shares (25,193,411) (19,841,595) (31,993,879) Re-issuance of treasury shares 13,181,926 12,332,592 10,453,020 Balance as of December 31 922,436,563 926,191,723 914,184,087 The following transactions took place resulting from employee option and share plans: Philips Group Employee option and share plan transactions 2016 - 2018 2016 2017 2018 Shares acquired 8,601,426 15,222,662 8,226,101 Average market price EUR 24.73 EUR 31.81 EUR 32.59 Amount paid EUR 213 million EUR 484 million EUR 268 million Shares delivered 13,181,926 12,332,592 10,453,020 Average price (FIFO) EUR 25.86 EUR 27.07 EUR 32.66 Cost of delivered shares EUR 341 million EUR 334 million EUR 341 million Total shares in treasury at year-end 7,208,301 10,098,371 7,871,452 Total cost EUR 181 million EUR 331 million EUR 258 million In order to reduce share capital, the following transactions took place: Philips Group Share capital transactions 2016 - 2018 2016 2017 2018 Shares acquired 16,591,985 4,618,933 23,767,778 Average market price EUR 23.84 EUR 32.47 EUR 32.58 Amount paid EUR 396 million EUR 150 million EUR 774 million Cancellation of treasury shares (shares) 18,829,985 24,246,711 Cancellation of treasury shares (EUR) EUR 450 million EUR 783 million Total shares in treasury at year-end 4,618,933 4,140,000 Total cost EUR 150 million EUR 141 million Share purchase transactions related to employee option and share plans, as well as transactions related to the reduction of share capital, involved a cash outflow of EUR 1,042 million. A cash inflow of EUR 94 million from treasury shares mainly includes settlements of share-based compensation plans. Share repurchase methods for share-based compensation plans and capital reduction purposes During 2018, Royal Philips repurchased shares for share-based compensation plans and capital reduction purposes via three different methods: (i) share buy-back repurchases in the open market via an intermediary (ii) repurchase of shares via forward contracts for future delivery of shares (iii) the unwinding of call options on own shares. In 2018, Royal Philips also used methods (i) and (ii) to repurchase shares for capital reduction purposes. Forward share repurchase contracts In order to hedge commitments under share-based compensation plans, Philips entered into three forward contracts in the last quarter of 2018, involving 10 million shares. This resulted in a reduction of Retained earnings of EUR 319 million against Short-term and Long-term liabilities. Additionally, in the first quarter of 2018 the remaining forward contracts under the forward share buy-back contract of 2017 were exercised at a forward price of EUR 27.03, resulting in a EUR 20 million increase in Retained earnings against Treasury shares. As of December 31, 2018, 10 million forward contracts connected to share based compensation plans were outstanding. In order to reduce its share capital, Royal Philips also entered into six forward contracts in 2017. The forward contacts involved 31,020,000 shares with a settlement date varying between October 2018 and June 2019 and a weighted average forward price of EUR 32.22. In 2018, 12,420,000 forward contracts were exercised resulting in a EUR 423 million increase in Retained earnings against Treasury shares. As of December 31, 2018, 18,600,000 forward contracts connected to share capital reductions were outstanding. For further information on the forward contracts please refer to Debt. Share call options During 2016 Philips bought EUR and USD-denominated call options to hedge options granted under share-based compensation plans before 2013. In 2018, the Company unwound 1,263,486 EUR-denominated and 1,204,126 USD-denominated call options against the transfer of the same number of Royal Philips shares (2,467,612 shares) and an additional EUR 51 million cash payment to the buyer of the call options. The number of outstanding EUR denominated options were 2,023,639 and USD-denominated options were 1,770,218, as of December 2018. Dividend distribution 2018 In June 2018, Philips settled a dividend of EUR 0.80 per common share, representing a total value of EUR 738 million including costs. Shareholders could elect for a cash dividend or a share dividend. Approximately 46% of the shareholders elected for a share dividend, resulting in the issuance of 9,533,233 new common shares. The settlement of the cash dividend involved an amount of EUR 400 million (including costs). A proposal will be submitted to the 2019 Annual General Meeting of Shareholders to pay a dividend of EUR 0.85 per common share, in cash or shares at the option of the shareholders, against the net income of the Company for 2018. 2017 In June 2017, Philips settled a dividend of EUR 0.80 per common share, representing a total value of EUR 742 million including costs. Shareholders could elect for a cash dividend or a share dividend. Approximately 48% of the shareholders elected for a share dividend, resulting in the issuance of 11,264,163 new common shares. The settlement of the cash dividend involved an amount of EUR 384 million (including costs) 2016 In June 2016, Philips settled a dividend of EUR 0.80 per common share, representing a total value of EUR 732 million including costs. Shareholders could elect for a cash dividend or a share dividend. Approximately 55% of the shareholders elected for a share dividend, resulting in the issuance of 17,344,462 new common shares. The settlement of the cash dividend involved an amount of EUR 330 million (including costs). Limitations in the distribution of shareholders’ equity As at December 31, 2018, pursuant to Dutch law, certain limitations exist relating to the distribution of shareholders’ equity of EUR 1,558 million. Such limitations relate to common shares of EUR 185 million, as well as to legal reserves required by Dutch law included under retained earnings of EUR 634 million and unrealized currency translation differences of EUR 739 million. The unrealized losses related to fair value through OCI financial assets of EUR 181 million and unrealized losses related to cash flow hedges of EUR 10 million qualify as revaluation reserves and reduce the distributable amount due to the fact that these reserves are negative. The legal reserve required by Dutch law of EUR 634 million included under retained earnings relates to any legal or economic restrictions on the ability of affiliated companies to transfer funds to the parent company in the form of dividends. As at December 31, 2017, these limitations in distributable amounts were EUR 1,283 million and related to common shares of EUR 188 million, as well as to legal reserves required by Dutch law included under retained earnings of EUR 703 million and unrealized currency translation differences of EUR 392 million. The unrealized losses related to fair value through OCI financial assets of EUR 30 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, for further details reference is made to Interest in entities 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 a 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 2016 - 2018 2016 2017 2018 Long-term debt 4,021 4,044 3,427 Short-term debt 1,585 672 1,394 Total debt 5,606 4,715 4,821 Cash and cash equivalents 2,334 1,939 1,688 Net debt 3,272 2,776 3,132 Shareholders' equity 12,546 11,999 12,088 Non-controlling interests 907 24 29 Group equity 13,453 12,023 12,117 Net debt and group equity ratio 20:80 19:81 21:79 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 2018 is included in the table below. Philips Group Adjusted income from continuing operations attributable to shareholders 1 2018 2018 Net income 1,097 Less: Discontinued operations, net of income taxes 213 Income from continuing operations 1,310 Continuing operations non-controlling interests (7) Income from continuing operations attributable to shareholders 1,303 Adjustments for: Amortization of acquired intangible assets 347 Restructuring costs and acquisition-related charges 258 Other items 41 Net finance expenses 57 Tax impact of adjusted items (365) Adjusted Income from continuing operations attributable to shareholders 1 1,643 1 Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Disclosure of debt [Text block] | Debt Philips has a USD 2.5 billion Commercial Paper Programme 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 Programme. As of December 31, 2018, Philips did not have any loans outstanding under either facility. In April 2018, Philips successfully exercised, with existing terms and conditions, the first of two 1-year extension options of its EUR 1 billion committed standby revolving credit facility, extending the maturity date to April 21, 2023. The facility does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. The provisions applicable to all USD-denominated corporate bonds issued by the company in March 2008 and March 2012 (due 2038 and 2042) contain a ‘Change of Control Triggering Event’. If the company would experience such an event with respect to a series of corporate bonds the company might be required to offer to purchase the bonds that are still outstanding at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any. Furthermore, the conditions applicable to the EUR denominated corporate bonds issued in 2017 and 2018 (due 2019, 2023, 2024 and 2028) contain a similar provision (‘Change of Control Put Event’). Upon the occurrence of such an event, the company might be required to redeem or purchase any of such bonds at their principal amount together with interest accrued. In March 2018, Philips refinanced a loan of EUR 178 million with a new long-term loan of EUR 200 million. In April 2018, Philips completed the early redemption of all the 3.750% USD bonds due 2022 with an aggregate principal amount of USD 1 billion, resulting in financial charges of EUR 24 million. For the purpose of the redemption, a EUR 900 million loan was entered into, which was repaid in May 2018 through the issuance of fixed-rate EUR bonds with an aggregate principal amount of EUR 1 billion (EUR 500 million 0.750% due 2024 and EUR 500 million 1.375% due 2028). 6.875% USD bonds due 2038 with an aggregate principal amount of USD 56 million and USD 16 million were redeemed in May and June 2018 respectively, resulting in financial charges of EUR 21 million. In Q4 2018, a nominal amount of EUR 423 million of forward contracts related to the EUR 1.5 billion share buyback program announced on June 28, 2017 matured. In addition, in Q4 2018, Philips entered into three tranches of forward purchases totaling 10 million shares for a nominal amount of EUR 319 million maturing through 2021 to cover its long-term incentive and employee stock purchase plans. Long-term debt The below tables present information about the long-term debt outstanding, its maturity and average interest rates in 2017 and 2018. Philips Group Long-term debt in millions of EUR unless otherwise stated 2018 amount outstanding in 2018 Current portion Non-current portion Between 1 and 5 years amount due after 5 years average remaining term (in years) average rate of interest USD bonds 1,303 1,303 1,303 18.1 6.3% EUR bonds 1,988 500 1,488 497 991 5.0 0.7% Forward contracts 807 618 188 188 0.8 Finance leases 330 94 236 190 46 3.6 2.9% Bank borrowings 211 211 6 205 6.2 0.3% Other long-term debt 18 18 - - - 1.1 1.6% Long-term debt 4,657 1,230 3,427 882 2,545 7.9 2.3% Philips Group Long-term debt in millions of EUR unless otherwise stated 2017 amount outstanding in 2017 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 2,137 2,137 833 1,305 13.3 5.4% EUR bonds 997 997 501 496 3.7 0.3% Forward contracts 970 394 576 576 1.2 Finance leases 281 87 195 170 24 4.8 3.4% Bank borrowings 190 52 138 138 2.1 1.3% Other long-term debt 20 19 1 1 - 1.1 0.9% Long-term debt 4,595 552 4,044 2,218 1,825 7.6 2.8% Bonds The below table discloses the amount outstanding and effective rate of bonds in 2017 and 2018. Philips Group Unsecured Bonds in millions of EUR unless otherwise stated 2017 - 2018 effective rate 2017 2018 Unsecured EUR Bonds Due 9/06/2023; 1/2% 0.634% 500 500 Due 9/06/2019; 3M Euribor +20bps 500 500 Due 5/02/2024; 3/4% 0.861% 500 Due 5/02/2028; 1 3/8% 1.523% 500 Unsecured USD Bonds Due 5/15/25; 7 3/4% 7.429% 53 55 Due 6/01/26; 7 1/5% 6.885% 114 119 Due 5/15/25; 7 1/8% 6.794% 70 74 Due 11/03/38; 6 7/8% 7.210% 668 636 Due 3/15/22; 3 3/4% 1 3.906% 837 Due 3/15/42; 5% 5.273% 418 438 Adjustments 2 (26) (31) Unsecured Bonds 3,134 3,291 1 In April 2018, Philips completed the early redemption of all the 3.750% USD bonds due 2022 with an aggregate principal amount of USD 1 billion. 2 Adjustments related to both EUR and USD bonds and concern bond discounts and premium, transaction costs and fair value adjustments for interest rate derivatives. Finance lease liabilities The below table discloses the reconciliation between the total of future minimum lease payments and their present value. For further information regarding the adoption of IFRS 16, please refer to Significant accounting policies Philips Group Finance lease liabilities in millions of EUR 2017 - 2018 2017 2018 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 93 6 87 100 6 94 Between one and five years 184 14 170 206 16 190 More than five years 29 4 24 52 6 46 Finance lease 306 24 281 357 28 330 Short-term debt Philips Group Short-term debt in millions of EUR 2017 - 2018 2017 2018 Short-term bank borrowings 71 76 Forward contracts 49 88 Other short-term loans Current portion of long-term debt 552 1,230 Short-term debt 672 1,394 During 2018, the weighted average interest rate on the bank borrowings was 15.0% (2017: 3.3%). The increase was mainly driven by a higher relative amount of borrowings in high interest rate countries. In addition, there was an increase in interest rates in these countries during 2018. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Provisions [abstract] | |
Disclosure of provisions [text block] | Provisions Philips Group Provisions in millions of EUR 2017 - 2018 2017 2018 long-term short-term total long-term short-term total Post-employment benefit (see note 20) 973 973 835 835 Product warranty 44 157 201 37 153 190 Environmental provisions 140 19 160 124 20 144 Restructuring-related provisions 25 87 112 45 68 114 Litigation provisions 26 24 50 17 9 26 Other provisions 451 113 564 730 112 842 Provisions 1,659 400 2,059 1,788 363 2,151 Assurance-type product warranty The provisions for assurance-type product warranty reflect the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to products sold. The company expects the provisions to be utilized mainly within the next year. Philips Group Provisions for assurance-type product warranty in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 289 259 201 Changes: Additions 325 283 248 Utilizations (357) (270) (261) Transfer to liabilities directly associated with assets held for sale (56) Translation differences and other 2 (16) 2 Balance as of December 31 259 201 190 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 70 million of the long term provision is expected to be utilized after one to five years, with the remainder after five years. For more details on the environmental remediation reference is made to Contingent assets and liabilities Philips Group Environmental provisions in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 335 321 160 Changes: Additions 18 18 23 Utilizations (24) (21) (15) Releases (36) (8) (4) Changes in discount rate 11 11 (28) Accretion 7 6 5 Translation differences and other 10 (20) 4 Transfer to liabilities directly associated with assets held for sale (146) Balance as of December 31 321 160 144 The additions and the releases of the provisions originate from additional insights in relation to factors like the estimated cost of remediation, changes in regulatory requirements and efficiencies in completion of various site work phases. Restructuring-related provisions Philips Group Restructuring-related provisions in millions of EUR 2018 Jan. 1, 2018 additions utilizations releases Dec. 31, 2018 Diagnosis & Treatment 38 60 (32) (11) 55 Connected Care & Health Informatics 20 19 (13) (8) 18 Personal Health 7 14 (6) (1) 14 Other 47 42 (47) (16) 26 Philips Group 112 136 (98) (37) 114 In 2018, the most significant restructuring projects impacted Diagnosis & Treatment, Connected Care & Health Informatics and Other businesses and mainly took place in the Netherlands, Germany and the US. The restructuring comprised mainly product portfolio rationalization and the reorganization of global support functions. The company expects the provisions to be utilized mainly within the next year. 2017 In 2017, the most significant restructuring projects impacted Diagnosis & Treatment and Other businesses and mainly took place in the Netherlands and the US. The movements in the provisions for restructuring in 2017 are presented by segment as follows: Philips Group Restructuring-related provision in millions of EUR 2017 Jan. 1, 2017 additions utilizations releases other changes 1 Dec. 31, 2017 Diagnosis & Treatment 13 46 (16) (5) (1) 38 Connected Care & Health Informatics 13 27 (12) (6) (1) 20 Personal Health 5 14 (5) (6) (1) 7 Other 37 55 (27) (16) (1) 47 Lighting (now Signify) 133 9 (35) (3) (104) Philips Group 201 150 (96) (37) (107) 112 1 Other changes primarily relate to translation differences and reclassification to liabilities directly associated with assets held for sale. 2016 In 2016, the most significant restructuring projects mainly impacted Other and mainly took place in the Netherlands. The movements in the provisions for restructuring in 2016 are presented by segment as follows: Philips Group Restructuring-related provisions in millions of EUR 2016 Jan. 1, 2016 additions utilizations releases other changes 1 Dec. 31, 2016 Diagnosis & Treatment 28 11 (19) (6) (1) 13 Connected Care & Health Informatics 21 11 (14) (6) 1 13 Personal Health 32 7 (29) (2) (3) 5 Other 38 34 (17) (20) 2 37 Lighting (now Signify) 178 95 (118) (27) 5 133 Philips Group 297 158 (197) (61) 4 201 1 Other changes primarily relate to translation differences and transfers between segments Litigation provisions The Company and certain of its group companies and former group companies are involved as a party in legal proceedings, including regulatory and other governmental proceedings. Philips Group Litigation provisions in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 578 96 50 Changes: Additions 31 40 17 Utilizations 1 (313) (52) (29) Releases (98) (11) (11) Reclassifications 1 (125) 2 - Changes in discount rate 5 Accretion 8 3 2 Transfer to liabilities directly associated with assets held for sale (21) Translation differences and other 10 (7) (3) Balance as of December 31 96 50 26 1 The presentation of prior-year information has been reclassified to conform to the current-year presentation. The most significant proceedings The majority of the movements in the above schedule related to the Cathode Ray Tube (CRT) antitrust litigation and Masimo Corporation (Masimo) patent litigation. Cathode Ray Tube (CRT) antitrust litigation In 2016, 2017 and 2018 the majority of the movements in relation to the CRT antitrust litigation were utilizations due to the transfer to other liabilities for which the company was able to reach a settlement. These settlements were subsequently paid out in the respective following year. For more details reference is made to Contingent assets and liabilities Masimo Corporation (Masimo) patent litigation On October 1, 2014, a jury awarded USD 467 million to Masimo Corporation (Masimo) in a trial held before the United States District Court for the District of Delaware. The decision by the jury completed an initial phase of a three-phase trial regarding a first lawsuit started by Masimo against the company in 2009. A second lawsuit was started by Masimo against the company in 2016. Between the two lawsuits, claims were raised by the parties against each other relating to patent infringement and antitrust violations in the field of pulse oximetry. On November 5, 2016, the company and Masimo entered into a wide-ranging, multi-year business partnership involving both companies’ innovations in patient monitoring and therapy solutions, ending all pending lawsuits between the two companies, including releasing the company from paying the USD 467 million jury verdict. The company and Masimo also agreed to: a USD 300 million cash payment by Philips to Masimo; a one-time donation to the Masimo Foundation of USD 5 million to support the Masimo Foundation’s project on patient safety and better outcomes; commitments of the company with respect to sales targets, marketing and product integration over the coming years of about USD 136 million. Entering into the agreements resulted in a payment of USD 305 million (EUR 280 million) in November 2016, a release of litigation provisions of USD 86 million (EUR 79 million) and a liability reclassification from litigation provisions to other provisions of USD 136 million (EUR 125 million). The utilizations and reclassifications in 2016 mainly related to Masimo. Reclassifications include reclassification from litigation provisions to other provisions. Other In 2018 the translation differences in the schedule above are mainly explained by the movements in the BRL/EUR rate which impacted the litigation provisions denominated in BRL. In 2017 the translation differences are mainly explained by the movements in the USD/EUR rate which impacted the litigation provisions denominated in USD. The company expects the provisions to be utilized mainly within the next three years. Other provisions Philips Group Other provisions in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 604 733 564 Changes: Additions 1 183 241 176 Utilizations 1 (167) (175) (226) Releases (61) (88) (58) Reclassification 142 4 2 Accretion 8 - 14 Acquisitions - 62 367 Transferred to liabilities directly associated with assets held for sale (156) Translation differences and other 24 (56) 3 Balance as of December 31 733 564 842 1 The presentation of prior-year information has been reclassified to conform to the current-year presentation. In 2018 the acquisitions through business combinations mainly consists of a provision for contingent consideration of EUR 239 million relating to the acquisition of EPD. For more details reference is made to Acquisitions and divestments The main elements of other provisions are: provisions for possible taxes/social security of EUR 65 million (2017: EUR 97 million); onerous contract provisions for unfavorable supply contracts as part of divestment transactions, onerous (sub)lease contracts and expected losses on existing projects /orders totaling EUR 18 million (2017: EUR 31 million); provisions for employee jubilee funds EUR 73 million (2017: EUR 57 million); self-insurance provisions of EUR 45 million (2017: EUR 48 million); provisions for decommissioning costs of EUR 32 million (2017: EUR 32 million); provisions for rights of return of EUR 35 million (2017: EUR 37 million); provisions for other employee benefits and obligatory severance payments of EUR 13 million (2017: EUR 24 million); provisions for contingent considerations of EUR 409 million (2017: EUR 66 million); the release in 2017 of EUR 88 million is due to the reassessment of our positions in other provisions. The company expects the provisions to be utilized mainly within the next five years, except for: provisions for employee jubilee funds of which over a half is expected to be utilized after five years; provisions for decommissioning costs of which over 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, 2018 | |
Post-employment benefits [Abstract] | |
Disclosure of post-employment benefits [Text block] | Post-employment benefits Employee post-employment plans have been established in many countries in accordance with the legal requirements, customs and the local practice in the countries involved. All funded post-employment 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. 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 average duration of the defined benefit obligation (DBO) of the DB plans is 11 years (2017: 12 years). The largest DB plans in 2018 are in the United States and Germany. These plans account for approximately 88% of the total DBO. 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 Trustees. The excess pension plans that covered accrual above the maximum salary of the funded plan are unfunded. The company’s qualified pension commitments in the United States are covered via the Pension Benefit Guaranty Corporation (PBGC) which charges a fee to US companies providing DB pension plans. The fee is also dependent on the amount of unfunded liabilities. In 2018, the company paid an additional de-risking contribution into the US plan of EUR 130 million (USD 150 million). 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 and are open for future pension accrual. Indexation is mandatory due to legal requirements. Some of the German plans have a DC design, but are accounted for as DB plans due to a legal minimum return requirement. Company pension commitments in Germany are partly protected against employer bankruptcy via the “Pensions Sicherungs Verein” which charges a fee to all German companies providing pension promises. Philips is one of the sponsors of Philips Pensionskasse VVaG in Germany, which is a multi-employer plan. The plan is classified and accounted for as a DC plan. Risks related to DB plans DB plans expose the company to various demographic and economic risks such as longevity risk, investment risks, currency and interest rate risk and in some cases inflation risk. The latter plays a role in the assumed wage increase but more importantly in some countries where indexation of pensions is mandatory. Pension fund Trustees are responsible for and have full discretion over the investment strategy of the plan assets. In general Trustees manage pension fund risks by diversifying the investments of plan assets and by (partially) matching interest rate risk of liabilities. The company has an active de-risking strategy in which it constantly looks for opportunities to reduce the risks associated with its DB plans. Liability-driven investment strategies, lump sum cash-out options, buy-ins, buy-outs and a change to DC are examples of the strategy. Investment policy in our largest pension plans The trustees of the Philips pension plans 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. 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 additional investment returns of the return portfolio are 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 2016 - 2018 2016 2017 2018 Defined-benefit plans 58 95 46 - included in income from operations (19) 1 32 23 - included in financial expense 48 37 23 - included in Discontinued operations 29 26 Defined-contribution plans 392 397 327 - included in income from operations 299 315 327 - included in Discontinued operations 93 82 Post-employment benefits costs 450 492 374 1 The net income mainly relates to the settlement of the pension related legal claim in the UK Summary of the net defined benefit liability and reconciliations The adjacent tables contain the total net defined benefit liability and the reconciliations for the DBO and plan assets. The negative past service cost in 2018 relates to plan amendments in Brazil and Switzerland. Reconciliations for the DBO and plan assets for DB plans: Philips Group Defined-benefit obligations in millions of EUR 2017 - 2018 2017 2018 Balance as of January 1 4,987 3,109 Service cost 34 27 Interest cost 126 85 Employee contributions 4 4 Actuarial (gains) / losses – demographic assumptions (14) 4 – financial assumptions 75 (131) – experience adjustment (15) 5 (Negative) past service cost 1 (6) Settlements (348) (0) Benefits paid from plan (172) (152) Benefits paid directly by employer (52) (42) Transfer to Liabilities directly associated with assets held for sale 1 (1,210) Translation differences and other (307) 94 Balance as of December 31 3,109 2,998 Present value of funded obligations at end of year 2,476 2,388 Present value of unfunded obligations at end of year 633 610 1 The amount presented under 'Transfer to Liabilities directly associated with assets held for sale' in 2017 relates to Signify (former Philips Lighting) Philips Group Plan assets in millions of EUR 2017 - 2018 2017 2018 Balance as of January 1 3,095 2,137 Interest income on plan assets 87 62 Admin expenses paid (2) (1) Return on plan assets excluding interest income 70 (129) Employee contributions 4 4 Employer contributions 263 159 Settlements (348) (0) Benefits paid from plan (172) (152) Transfer to Assets classified as held for sale 1 (642) - Translation differences and other (218) 83 Balance as of December 31 2,137 2,164 Funded status (972) (834) Unrecognized net assets Net balance sheet position (972) (834) 1 The amount presented under 'Transfer to Liabilities directly associated with assets held for sale' in 2017 relates to Signify (former Philips Lighting) Reconciliation for the effect of the asset ceiling: Philips Group Changes in the effect of the asset ceiling in millions of EUR 2017 2017 Balance as of January 1 105 Interest on unrecognized assets 4 Remeasurements (100) Translation differences (9) Balance as of December 31 Due to the settlement of the Brazil pension plan in 2017 there is no effect of the asset ceiling remaining as of 31 December 2017 onwards. Plan assets allocation The asset allocation in the company’s DB plans at December 31 was as follows: Philips Group Plan assets allocation in millions of EUR 2017 - 2018 2017 2018 Assets quoted in active markets - Debt securities 1,142 1,294 - Equity securities 69 - Other 137 161 Assets not quoted in active markets - Debt securities 14 12 - Equity securities 457 368 - Other 318 329 Total assets 2,137 2,164 The assets in 2018 contain 33% (2017: 37%) unquoted assets. Plan assets in 2018 do not include property occupied by or financial instruments issued by the company. Assumptions The mortality tables used for the company’s largest DB plans are: US: RP2014 with MP2018 improvement scale for qualified and retiree medical plan; RP2006 with MP2018 improvement scale + white collar adjustment for the unfunded excess plans Germany: Heubeck-Richttafeln 2018 Generational The weighted averages of the assumptions used to calculate the DBO as of December 31 were as follows: Philips Group Assumptions used for defined-benefit obligations in % 2017- 2018 2017 2018 Discount rate 2.8% 3.2% Inflation rate 2.1% 2.1% Salary increase 2.4% 2.4% Sensitivity analysis The tables below illustrates the approximate impact on the DBO from movements in key assumptions. The DBO was recalculated using a change in the assumptions of 1% which overall is considered a reasonably possible change. The impact on the DBO because of changes in discount rate is normally accompanied by offsetting movements in plan assets, especially when using matching strategies. Philips Group Sensitivity of key assumptions in millions of EUR 2018 Defined benefit obligation Increase Discount rate (1% movement) (298) Inflation rate (1% movement) 97 Salary increase (1% movement) 21 Longevity 1 65 Decrease Discount rate (1% movement) 367 Inflation rate (1% movement) (89) Salary increase (1% movement) (20) 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 schemes. A 10% decrease in assumed mortality rates equals improvement of life expectancy by 0.5 - 1 year. Philips Group Sensitivity of key assumptions in millions of EUR 2017 Defined benefit obligation Increase Discount rate (1% movement) (323) Inflation rate (1% movement) 85 Salary increase (1% movement) 20 Longevity 1 72 Decrease Discount rate (1% movement) 394 Inflation rate (1% movement) (86) Salary increase (1% movement) (19) 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 schemes. A 10% decrease in assumed mortality rates equals improvement of life expectancy by 0.5 - 1 year. Cash flows and costs in 2019 The company expects considerable cash outflows in relation to post-employment benefits which are estimated to amount to EUR 402 million in 2019, consisting of: EUR 20 million employer contributions to funded DB plans (US: EUR 0 million, DE: EUR 13 million, Other: EUR 7 million); EUR 42 million cash outflows in relation to unfunded DB plans (US: EUR 10 million, DE: EUR 19 million, Other: EUR 13 million); and EUR 340 million employer contributions to DC plans (NL: EUR 168 million, US: EUR 118 million, Other: EUR 54 million). The service and administration cost for 2019 is expected to amount to EUR 31 million for DB plans. The net interest cost for 2019 for the DB plans is expected to amount to EUR 22 million. The cost for DC pension plans in 2019 is equal to the expected DC cash flow. |
Accrued liabilities
Accrued liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued liabilities [Abstract] | |
Disclosure of accrued expenses and other liabilities [text block] | Accrued liabilities Accrued liabilities are summarized as follows: Philips Group Accrued liabilities in millions of EUR 2017 - 2018 2017 2018 Personnel-related costs: - Salaries and wages 529 530 - Accrued holiday entitlements 109 111 - Other personnel-related costs 71 73 Fixed-asset-related costs: - Gas, water, electricity, rent and other 52 36 Communication and IT costs 42 55 Distribution costs 83 78 Sales-related costs: - Commission payable 7 6 - Advertising and marketing-related costs 174 179 - Other sales-related costs 38 28 Material-related costs 110 112 Interest-related accruals 38 36 Deferred income 1 791 Other accrued liabilities 273 293 Accrued liabilities 2,319 1,537 1 Due to implementation of IFRS 15 balances included in deferred income are now presented as contract liabilities. |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities [Abstract] | |
Disclosure of other liabilities [text block] | Other liabilities Other non-current liabilities Other non-current liabilities are summarized as follows: Philips Group Other non-current liabilities in millions of EUR 2017 - 2018 2017 2018 Accrued pension costs Deferred income 1 249 Other tax liability 161 181 Other liabilities 65 72 Other non-current liabilities 474 253 1 Due to implementation of IFRS 15 balances included in deferred income are now presented as contract liabilities. The other non-current liabilities decreased with EUR 221 million. This increase is mainly driven by the change of presentation of balances included in deferred income. For further details on tax related liabilities refer to Income taxes Other current liabilities Other current liabilities are summarized as follows: Philips Group Other current liabilities in millions of EUR 2017 - 2018 2017 2018 Accrued customer rebates that cannot be offset with accounts receivables for those customers 435 422 Advances received from customers on orders not covered by work in process 1 372 Other taxes including social security premiums 164 178 Other liabilities 155 137 Other current liabilities 1,126 737 1 Due to implementation of IFRS 15 balances included in advances received from customers on orders not covered by work in progress are now presented as contract liabilities. The other current liabilities decreased with EUR 389 million. This decrease is mainly driven by the change of presentation of balances included in advances received from customers on orders not covered by work in process. The other liabilities per December 31, 2017 and 2018 include reclassifications from litigation provisions to liabilities due to settlements reached. For more details reference is made to Litigation provisions in Provisions Contingent assets and liabilities Contract liabilities Non-current contract liabilities were EUR 226 million at December 31, 2018 (2017: EUR 249 million) and current contract liabilities were EUR 1,303 million at December 31, 2018 (2017: EUR 1,163 million). The current contract liabilities increased with EUR 140 million. The year-on-year change is mainly driven by an increase in contractual billings. The current contract liabilities as per December 31, 2017 resulted in revenue recognized of EUR 1,163 million in 2018. |
Cash flow statement supplementa
Cash flow statement supplementary information | 12 Months Ended |
Dec. 31, 2018 | |
Cash flow statement supplementary information [Abstract] | |
Disclosure of cash flow statement supplementary information [Text block] | Cash flow statement supplementary information Net cash used for derivatives and current financial assets In 2018, a total of EUR 177 million cash was paid with respect to foreign exchange derivative contracts related to activities for liquidity management and funding (2017: EUR 295 million outflow; 2016: EUR 128 million outflow). Purchase and proceeds from non-current financial assets In 2018, the net cash inflow of EUR 43 million was mainly due to inflows from the repayment of loans receivable, the sale of stakes and capital distributions from investment funds, partly offset by an outflow due to capital contributions into investment funds. In 2017, the net cash outflow of EUR 36 million was mainly due to capital contributions in Gilde and Abraaj Growth Markets Fund and the acquisition of other stakes. In 2016, the net cash inflow of EUR 39 million was mainly due to the acquisition of stakes in Abraaj Growth Markets Fund. Reconciliation of liabilities arising from financing activities Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2017 - 2018 Balance as of Dec. 31, 2017 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2018 Long term debt 2 4,595 126 45 (109) 4,657 USD bonds 2,137 (866) 31 - 1,303 EUR bonds 997 990 1 1,988 Bank borrowings 190 21 - - 211 Other long-term debt 20 (1) - - 18 Finance leases 281 (18) 13 53 330 Forward contracts 3 970 (163) 807 Short term debt 2 120 34 (29) 39 164 Short-term bank borrowings 71 34 (29) 76 Other short-term loans Forward contracts 3 49 39 88 Equity (1,500) (1,351) 1,558 (1,293) Dividend payable (404) 404 Forward contracts 3 (1,018) 124 (894) Treasury shares (481) (948) 1,030 (399) Total (1,192) 1 Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 2 Long-term debt includes the short-term portion of long-term debt, and short-term debt excludes the short-term portion of the long-term debt. 3 The forward contracts are related to the share buyback program and LTI plans Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2016 - 2017 Balance as of Dec. 31, 2016 Cash flow 1 Transfer to liabilities directly associated with assets held for sale Currency effects and consolidation changes Other 2 Balance as of Dec. 31, 2017 Long term debt 3 5,396 (217) (1,255) (327) 998 4,595 USD bonds 3,608 (1,184) (287) 1 2,137 EUR bonds 997 - 997 Bank borrowings 1,470 (22) (1,238) (21) - 190 Other long-term debt 39 (20) - 1 (1) 20 Finance leases 279 12 (18) (20) 29 281 Forward contracts 4 970 970 Short term debt 3 210 (4) (86) (49) 49 120 Short-term bank borrowings 207 (3) (84) (49) 71 Other short-term loans 2 (1) (2) - Forward contracts 4 49 49 Equity (181) 168 (1,487) (1,500) Sale of Lighting (now Signify) shares 1,060 (1,060) Dividend payable (478) 478 Forward contracts 4 (1,018) (1,018) Treasury shares (181) (414) 114 (481) Total (53) 1 Cash flow includes cash movements related to Lighting from January to April 2017, and therefore does not equal cash flow financing activities in the consolidated statements of cash flows. 2 Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 3 Long-term debt includes the short-term portion of long-term debt, and short-term debt excluding the short-term portion of long-term debt. 4 The forward contracts are mainly related to the share buyback program |
Contingent assets and liabiliti
Contingent assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Contingent assets and liabilities [Abstract] | |
Disclosure of contingent liabilities [text block] | Contingent assets and liabilities Contingent assets As per December 31, 2018, the company had no material contingent assets. Contingent liabilities Guarantees Philips’ policy is to provide guarantees and other letters of support only in writing. Philips does not stand by other forms of support. The total fair value of guarantees recognized on the balance sheet amounts to EUR nil Environmental remediation The Company and its subsidiaries are subject to environmental laws and regulations. Under these laws, the Company and/or its subsidiaries may be required to remediate the effects of certain manufacturing activities on the environment. Legal proceedings The Company and certain of its group companies and former group companies are involved as a party in legal proceedings, regulatory and other governmental proceedings, including discussions on potential remedial actions, relating to such matters as competition issues, commercial transactions, product liability, participations and environmental pollution. While it is not feasible to predict or determine the ultimate outcome of all pending or threatened legal proceedings, regulatory and governmental proceedings, the Company is of the opinion that the cases described below may have, or have had in the recent past, a significant impact on the Company’s consolidated financial position, results of operations and cash flows. Cathode Ray Tubes (CRT) Starting in 2007, competition law authorities in several jurisdictions had commenced investigations into possible anticompetitive activities in the Cathode Ray Tubes, or CRT industry. On December 5, 2012, this lead to a European Commission decision imposing fines on (former) CRT manufacturers including the company. The European Commission imposed a fine of EUR 313 million on the company and a fine of EUR 392 million jointly and severally on the company and LG Electronics, Inc (LGE). In total a payable of EUR 509 million was recognized in 2012 and the fine was paid in the first quarter of 2013. The company appealed the decision of the European Commission with the General Court and later with European Court of Justice. These appeals were denied on September 9, 2015 and September 15, 2017 respectively. No further appeals are pending. Please refer to Subsequent events United States and Canada Subsequent to the public announcement of these investigations in 2007, certain Philips Group companies were named as defendants in class action antitrust complaints by direct and indirect purchasers of CRTs filed in various federal district courts in the United States. These actions alleged anticompetitive conduct by manufacturers of CRTs and sought treble damages on a joint and several liability basis. In addition, sixteen individual plaintiffs, principally large retailers of CRT products who opted out of the direct purchaser class, filed separate complaints against the company and other defendants based on the same substantive allegations. All these actions were consolidated for pre-trial proceedings in the United States District Court for the Northern District of California. In addition, the state attorneys general of California, Florida, Illinois, Oregon and Washington filed actions against the company and other defendants seeking to recover damages on behalf of the states and, acting as parens patriae, their consumers. All actions have been settled or otherwise resolved. The indirect purchaser settlement that was approved by the United States District Court for the Northern District of California in 2016, is now again pending before the District Court after it had been remanded to the District Court by the Ninth Circuit Court of Appeals in February 2019. In 2007, certain Philips Group companies were also being named as defendants in proposed class proceedings in Ontario, Quebec and British Columbia, Canada, along with numerous other participants in the industry. In 2017, a settlement has been reached for all three proposed class actions which was approved by the courts in 2018. Other jurisdictions In 2014, the company was named as a defendant in a consumer class action lawsuit filed in Israel in which damages are claimed against several defendants based on alleged anticompetitive activities in the CRT industry. In addition, an electronics manufacturer filed a claim against the company and several co-defendants with a court in the Netherlands and Turkey, also seeking compensation for the alleged damage sustained as a result from the alleged anticompetitive activities in the CRT industry. In 2015 and 2016, the company became involved in further civil CRT antitrust litigation with previous CRT customers based in the United Kingdom, Germany, Brazil and Denmark. In 2018 a case in Germany and in Denmark were settled while two new cases were brought in the United Kingdom. Currently two cases are pending before the Dutch courts (one of which is also subject to parallel proceedings in Turkey), one case pending before the Israeli court, two cases are pending before the German courts and three cases have been filed in the United Kingdom. Except for the case in Israel where the plaintiffs are a purported class of consumers, all plaintiffs are television or monitor manufacturers who acquired either CRT’s to be integrated in their finished products or OEM monitors containing CRT’s. In all cases, the same substantive allegations about anticompetitive activities in the CRT industry are made and damages are sought. Despite prior settlements, the company has concluded that due to the specific circumstances in the cases that settled and the particularities and considerable uncertainty associated with the remaining matters, based on current knowledge, potential losses cannot be reliably estimated with respect to these matters. Connected Care & Health Informatics On July 4, 2018 the Public Prosecution Service in Rio de Janeiro and representatives from the Brazilian antitrust authority CADE inspected the offices of more than 30 companies, including Philips, in São Paulo. The Brazilian authorities are conducting an investigation into tender irregularities in the medical device industry. The company has also received inquiries from certain US authorities in respect of this matter. Personal Health In April 2017, the company received a Civil Investigative Demand (CID) out of the US Attorney’s Office in Northern District of Iowa. The CID relates to an evaluation of the appropriateness of certain sleep and respiratory care equipment financing programs available for Respironics’ products. In addition, in late 2017, the company received an information request from the Department of Justice regarding the relationship between Respironics’ business and certain sleep centers that use Respironics’ products. In 2018 the company has provided the requested information to the US government and is awaiting next steps. The company has not been advised that any claim has been asserted by the US government in connection with these matters and it continues to cooperate fully in both inquiries. Given the uncertain nature of the relevant events and liabilities, it is not practicable to provide information on the estimate of the financial effect, if any, or timing. The outcome of the uncertain events could have a material impact on the Company’s consolidated financial position, results of operations and cash flows. Miscellaneous For details on other contractual obligations, please refer to liquidity risk in Details of Treasury risk / other financial risk |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions [abstract] | |
Disclosure of related party [text block] | Related-party transactions 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. From November 28, 2017, Philips lost control over Signify but still had significant influence. This has resulted in Signify becoming a non-consolidated related party which is reported in the table below for the time period January 1, 2018 to December 31, 2018. Philips and Signify have several agreements in place which impact the related party balances disclosed. There is a Transitional Service Level Agreement, based on which Philips provides Signify with services such as IT, real estate and human resources among others. Additionally, a Trademark License Agreement was signed in which Signify uses the Philips brand name. From December 31, 2018 Philips has no longer significant influence over Signify and therefore Signify ceased to be a related party. As a result, receivables from and payables to related parties in relation Signify are not included in the table below. For details of these parties in which Philips typically holds between 20% and 50% equity interest, refer to the Investments in associates section of Interests in entities Discontinued operations and assets classified as held for sale Philips Group Related-party transactions in millions of EUR 2016 - 2018 2016 2017 2018 Sales of goods and services 207 196 232 Purchases of goods and services 81 62 67 Receivables from related parties 33 127 28 Payables to related parties 3 36 1 In addition to the table above, as part of its operations in the US, Philips sold non-recourse third-party receivables to PMC US amounting to EUR 244 million in 2018 (2017: EUR 151 million; 2016: EUR 139 million). 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 parties’. 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, 2018 | |
Share-based compensation [Abstract] | |
Disclosure of share-based payment arrangements [text block] | Share-based compensation 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. Restricted shares are granted to executives, certain selected employees and new employees. Prior to 2013 options were also granted. Under the terms of employee stock purchase plans established by the Company in various countries, employees are eligible to purchase a limited number of Philips shares at discounted prices through payroll withholdings. Share-based compensation costs were EUR 102 million (2017: EUR 122 million; 2016: EUR 95 million). This includes the employee stock purchase plan of EUR 5 million, which is not a share-based compensation that affects equity. In the Consolidated statements of changes in equity EUR 107 million is recognized in 2018 and represent the costs of the share-based compensation plans, including EUR 10 million of costs of former Philips employees which are now employed with Signify. The amount recognized as an expense is adjusted for forfeiture. USD-denominated performance shares, restricted shares and options are granted to employees in the United States only. Performance shares The performance is measured over a three-year performance period. The performance shares have two performance conditions, relative Total Shareholders’ Return compared to a peer group of 20 companies including Philips (2017: 20 companies, 2016: 21 companies) and adjusted Earnings Per Share growth. The performance shares vest three years after the grant date. The number of performance shares that will vest is dependent on achieving the two performance conditions, which are equally weighted, and provided that the grantee is still employed with the company. The amount recognized as an expense is adjusted for actual performance of adjusted Earnings Per Share growth since this is a non-market performance condition. It is not adjusted for non-vesting or extra vesting of performance shares due to a relative Total Shareholders’ Return performance that differs from the performance anticipated at the grant date, since this is a market-based performance condition. The fair value of the performance shares is measured based on Monte-Carlo simulation, which takes into account dividend payments between the grant date and the vesting date by including reinvested dividends, the market conditions expected to impact relative Total Shareholders’ Return performance in relation to selected peers. The following weighted-average assumptions were used for the 2018 grants: Risk-free rate: (0.47)% Expected share price volatility: 22 % 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, 2018 and changes during the year are presented below: Philips Group Performance shares 2018 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2018 1 6,828,444 29.15 Granted 1,322,107 39.22 Notional dividends 2 112,952 32.21 Vested/Issued 4,237,835 28.50 Forfeited 415,273 29.61 Adjusted quantity 3 1,127,703 28.97 Outstanding at December 31, 2018 4,738,099 32.54 USD-denominated Outstanding at January 1, 2018 1 4,396,514 31.96 Granted 907,782 47.50 Notional dividends 2 70,579 37.51 Vested/Issued 2,840,286 30.14 Forfeited 424,139 36.12 Adjusted quantity 3 767,599 30.32 Outstanding at December 31, 2018 2,878,048 23.71 1 The outstanding number of performance shares as per January 1, 2018 was updated to reflect the dividend declared on outstanding shares between grant date and vesting date that will be issued in shares. 2 Dividend declared in 2018 on outstanding shares. 3 Adjusted quantity includes the adjustments made to performance shares outstanding due to updates on the actual and expected EPS. At December 31, 2018, a total of EUR 111 million of unrecognized compensation costs relate to non-vested performance shares. These costs are expected to be recognized over a weighted-average period of 1.85 years. Restricted shares The fair value of restricted shares is equal to the share price at grant date. The Company issues restricted shares that, in general, have a 3 year cliff-vesting period. A summary of the status of the Company’s restricted shares as of December 31, 2018 and changes during the year are presented below: Philips Group Restricted shares 2018 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2018 1 1,807,009 27.72 Granted 729,798 33.15 Notional dividends 2 52,317 29.58 Vested/Issued 193,968 25.40 Forfeited 174,266 28.52 Outstanding at December 31, 2018 2,220,891 29.69 USD-denominated Outstanding at January 1, 2018 1 1,753,505 31.26 Granted 717,654 36.67 Notional dividends 2 48,082 33.35 Vested/Issued 407,743 28.84 Forfeited 205,630 33.97 Outstanding at December 31, 2018 1,905,867 33.58 1 Excludes premium shares on Restricted shares granted before 2013. (20% additional (premium) shares that may be received if shares delivered under the plan are not sold for three-year period). 2 Dividend declared in 2018 on outstanding shares. At December 31, 2018, a total of EUR 59 million of unrecognized compensation costs relate to non-vested restricted shares. These costs are expected to be recognized over a weighted-average period of 1.83 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, 2018. The following tables summarize information about the Company’s options as of December 31, 2018 and changes during the year: Philips Group Options on EUR-denominated listed share 2018 options weighted average exercise price Outstanding at January 1, 2018 2,772,210 19.49 Exercised 1,024,063 20.14 Forfeited Expired 99,427 22.52 Outstanding at December 31, 2018 1,648,720 18.90 Exercisable at December 31, 2018 1,648,720 18.90 The exercise prices range from EUR 12.63 to EUR 24.90. The weighted average remaining contractual term for options outstanding and options exercisable at December 31, 2018, was 2.3 years. The aggregate intrinsic value of the options outstanding and options exercisable at December 31, 2018, was EUR 20 million. The total intrinsic value of options exercised during 2018 was EUR 15 million (2017: EUR 29 million, 2016: EUR 20 million). Philips Group Options on USD-denominated listed share 2018 option weighted average exercise price Outstanding at January 1, 2018 3,309,766 28.41 Exercised 1,451,964 29.91 Forfeited Expired 223,934 35.36 Outstanding at December 31, 2018 1,633,868 26.13 Exercisable at December 31, 2018 1,633,868 26.13 The exercise prices range from USD 16.76 to USD 36.63. The weighted average remaining contractual term for options outstanding and options exercisable at December 31, 2018, was 2.3 years. The aggregate intrinsic value of the options outstanding and options exercisable at December 31, 2018, was USD 15 million. The total intrinsic value of options exercised during 2018 was USD 16 million (2017: USD 22 million, 2016: USD 6 million). At December 31, 2018 there were no unrecognized compensation costs related to outstanding options. Cash received from exercises under the Company’s option plans amounted to EUR 57 million in 2018 (2017: EUR 128 million, 2016: EUR 65 million). The actual tax deductions realized as a result of USD option exercises totaled approximately EUR 3 million in 2018 (2017: EUR 5 million, 2016: EUR 2 million). The outstanding options as of December 31, 2018 are categorized in exercise price ranges as follows: Philips Group Outstanding options in millions of EUR 2018 options intrinsic value in millions weighted average remaining contractual term EUR-denominated 10-15 701,262 11.6 2.7 yrs 15-20 22,011 0.3 3.0 yrs 20-25 925,447 7.9 2.0 yrs Outstanding options 1,648,720 19.8 2.3 yrs USD-denominated 15-20 645,598 10.4 2.7 yrs 20-25 23,925 0.3 3.0 yrs 25-30 595,675 3.3 2.3 yrs 30-35 368,670 0.7 1.4 yrs Outstanding options 1,633,868 14.7 2.3 yrs The aggregate intrinsic value in the tables and text above represents the total pre-tax intrinsic value (the difference between the Company’s closing share price on the last trading day of 2018 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, 2018. The following table summarizes information about the Company’s Accelerate! options as of December 31, 2018 and changes during the year: Philips Group Accelerate! options 2018 optio weighted average exercise price EUR-denominated Outstanding at January 1, 2018 481,200 16.06 Exercised 179,450 15.24 Expired 5,000 15.24 Outstanding at December 31, 2018 296,750 16.57 Exercisable at December 31, 2018 296,750 16.57 USD-denominated Outstanding at January 1, 2018 170,800 20.02 Exercised 47,500 20.02 Forfeited 0 0.00 Outstanding at December 31, 2018 123,300 20.02 Exercisable at December 31, 2018 123,300 20.02 The exercise prices of the Accelerate! options are EUR 15.24 and EUR 22.43 for EUR-denominated options and is USD 20.02 for USD-denominated options. The weighted average remaining contractual term for EUR-denominated Accelerate! options outstanding and exercisable at December 31, 2018 was 3.3 years. The weighted average remaining contractual term for USD-Accelerate! options outstanding and exercisable at December 31, 2018 was 3.1 years. The aggregate intrinsic value of the EUR-denominated Accelerate! options outstanding and exercisable at December 31, 2018, was EUR 4.3 million. The aggregate intrinsic value of the USD-denominated Accelerate! options outstanding and exercisable at December 31, 2018 was USD 1.9 million. The total intrinsic value of Accelerate! options exercised during 2018 was EUR 4 million for EUR-denominated options (2017: EUR 6 million) and USD 1 million for USD-denominated options (2017: USD 1 million). Cash received from exercises for EUR-denominated and USD-denominated Accelerate! options amounted to EUR 4 million in 2018 (2017: EUR 8 million). The actual tax deductions realized as a result of Accelerate! USD options exercises totaled approximately EUR 0.2 million in 2018 (2017: EUR 0.3 million). |
Information on remuneration
Information on remuneration | 12 Months Ended |
Dec. 31, 2018 | |
Information on remuneration [Abstract] | |
Disclosure of information on remuneration [Text block] | Information on remuneration Remuneration of the Executive Committee In 2018, the total remuneration costs relating to the members of the Executive Committee (consisting of 13 members, including the members of the Board of Management) amounted to EUR 26,755,003 (2017: EUR 25,848,741; 2016: EUR 22,433,827) consisting of the elements in the following table. Philips Group Remuneration costs of the Executive Committee 1 in EUR 2016-2018 2016 2017 2018 Base salary/Base compensation 6,388,667 8,089,063 8,370,406 Annual incentive 2 5,746,347 6,345,576 5,651,996 Performance shares 3 4 5,943,782 6,371,297 8,896,369 Stock options 3 - - - Restricted share rights 3 764,311 885,343 492,237 Pension allowances 5 1,854,129 1,886,963 1,919,839 Pension scheme costs 180,077 408,695 411,028 Other compensation 6 1,556,514 1,861,803 1,013,128 1 The Executive Committee consisted of 13 members as per December 31, 2018 (2017: 12 members; 2016: 12 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, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date 4 For 2018, a release of EUR 1,740,520 (2017: EUR 2,469,670; 2016: EUR 0) is included due to non-vesting of performance shares 5 Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 6 The stated amounts mainly concern (share of) allowances to members of the 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 At December 31, 2018, the members of the Executive Committee (including the members of the Board of Management) held 333,670 Remuneration of the Board of Management In 2018, the total remuneration costs relating to the members of the Board of Management amounted to EUR 9,848,153 (2017: EUR 7,808,117; 2016: EUR 8,904,859), see table below. Philips Group Remuneration costs of individual members of the Board of Management 2016-2018 base compensation/salary annual incentive 1 performance shares 2 stock options 2 restricted share rights 2 pension allowances 3 pension schemecosts other compensation total costs 2018 F.A. van Houten 1,205,000 1,264,286 2,319,460 - 588 537,181 25,708 39,042 5,391,265 A. Bhattacharya 718,750 637,536 942,220 - 129 217,823 25,708 53,522 2,595,688 M.J. van Ginneken 557,500 362,611 711,806 - 66 168,210 25,708 35,299 1,861,200 2,481,250 2,264,433 3,973,486 - 783 923,214 77,124 127,863 9,848,153 2017 F.A. van Houten 1,205,000 1,270,166 1,975,277 - 4,034 537,621 25,278 84,053 5,101,429 A. Bhattacharya 687,500 553,392 669,396 - 888 210,450 25,278 100,918 2,247,822 P.A.J. Nota 606,250 429,886 (1,203,992) - (188) 236,208 21,065 63,576 152,805 M.J. van Ginneken 91,667 69,168 100,022 - 75 27,796 4,213 13,120 306,061 2,590,417 2,322,612 1,540,703 - 4,809 1,012,075 75,834 261,667 7,808,117 2016 F.A. van Houten 1,197,500 1,354,227 1,423,538 - 12,041 536,195 24,838 126,703 4,675,042 A. Bhattacharya 650,000 540,072 362,758 - 3,341 201,524 24,838 73,642 1,856,175 P.A.J. Nota 702,500 619,745 683,101 - 9,251 277,649 24,838 56,558 2,373,642 2,550,000 2,514,044 2,469,397 - 24,633 1,015,368 74,514 256,903 8,904,859 1 The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. For more details on the annual incentives refer to 2018 Annual Incentive 2 Costs of performance shares, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date 3 The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated. For further information on remuneration costs, see Remuneration costs The tables below give an overview of the performance share plans and the stock option plans of the Company, held by the members of the Board of Management: Philips Group Number of performance shares (holdings) in number of shares 2018 January 1, 2018 awarded 2018 awarded dividend shares 2018 realized 2018 December 31, 2018 vesting date F.A. van Houten 60,112 - - 100,207 - 05.05.2018 62,880 - 1,423 - 64,303 04.29.2019 74,878 - 1,693 - 76,571 05.11.2020 - 69,005 1,561 - 70,566 04.27.2021 A. Bhattacharya 12,790 1 - - 21,312 - 05.05.2018 28,265 1 - 640 - 28,905 04.29.2019 32,623 - 738 - 33,361 05.11.2020 - 31,138 704 - 31,842 04.27.2021 M.J. van Ginneken 19,185 1 - - 31,981 - 05.05.2018 22,243 1 - 503 - 22,746 04.29.2019 19,030 1 - 431 - 19,461 05.11.2020 - 24,052 544 - 24,596 04.27.2021 Performance shares (holdings) 332,006 124,195 8,237 153,500 372,351 1 Awarded before date of appointment as a member of the Board of Management At December 31, 2018, the members of the Board of Management held 333,670 stock options (2017: 333,670; 2016: 476,200) at a weighted average exercise price of EUR 18.99 (2017: EUR 18.99; 2016: EUR 19.47). Philips Group Stock options (holdings) number of shares 2018 January, 1 2018 granted exercised expired December 31, 2018 grant price (in euros) share (closing) price on exercise date expiry date F.A. van Houten 20,400 − − − 20,400 22.88 − 10.18.2020 75,000 − − − 75,000 20.9 − 04.18.2021 75,000 − − − 75,000 14.82 − 04.23.2022 55,000 − − − 55,000 22.43 − 01.29.2023 A. Bhattacharya 16,500 − − − 16,500 22.88 − 10.18.2020 16,500 − − − 16,500 20.9 − 04.18.2021 20,000 − − − 20,000 15.24 − 01.30.2022 16,500 − − − 16,500 14.82 − 04.23.2022 M.J. van Ginneken 5,250 − − − 5,250 12.63 − 04.14.2019 6,720 − − − 6,720 24.9 − 04.19.2020 8,400 − − − 8,400 20.9 − 04.18.2021 10,000 − − − 10,000 15.24 − 01.30.2022 8,400 − − − 8,400 14.82 − 04.23.2022 Stock options (holdings) 333,670 − − − 333,670 − See Notes 2018 Long-Term Incentive Plan The accumulated annual pension entitlements and the pension costs of individual members of the Board of Management are as follows (in EUR): Philips Group Accumulated annual pension entitlements and pension-related costs in EUR 2018 age at December 31, 2018 accumulated annual pension as of December 31, 2018 total pension related costs F.A. van Houten 58 298,470 562,889 A. Bhattacharya 57 27,383 243,531 M.J. van Ginneken 45 39,552 193,918 Pension costs 1,000,338 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 2018, 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 1,088,375 (2017: EUR 950,500; 2016: EUR 1,037,209). Former members received no remuneration. At December 31, 2018 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 (in EUR): Philips Group Remuneration of the Supervisory Board in EUR 2016-2018 membership committees other compensation 1 total 2018 2 J.A. van der Veer 140,000 27,500 12,000 179,500 C. Poon 96,250 36,625 22,000 154,875 H. von Prondzynski 85,000 36,625 14,500 136,125 J.P. Tai 85,000 34,625 22,000 141,625 N. Dhawan 85,000 14,250 24,500 123,750 O. Gadiesh 85,000 14,250 22,000 121,250 D.E.I. Pyott 85,000 25,250 32,000 142,250 P.A. Stoffels 38,333 - 8,333 46,667 A.M. Harrison 31,667 - 10,667 42,333 731,250 189,125 168,000 1,088,375 2017 2 J.A. van der Veer 135,000 25,000 7,000 167,000 C. Poon 90,000 32,500 17,000 139,500 H. von Prondzynski 80,000 32,500 19,500 132,000 J.P. Tai 80,000 32,500 32,000 144,500 N. Dhawan 80,000 13,000 27,000 120,000 O. Gadiesh 80,000 13,000 19,500 112,500 D.E.I. Pyott 80,000 23,000 32,000 135,000 625,000 171,500 154,000 950,500 2016 2 J.A. van der Veer 135,000 26,667 7,000 168,667 C. Poon 90,000 32,500 22,000 144,500 C.J.A. van Lede (Jan.-May) 33,333 4,375 2,000 39,708 E. Kist (Jan.-May) 40,000 4,167 2,000 46,167 H. von Prondzynski 80,000 25,000 19,500 124,500 J.P. Tai 80,000 34,167 32,000 146,167 N. Dhawan 80,000 13,000 27,000 120,000 O. Gadiesh 80,000 13,000 19,500 112,500 D.E.I. Pyott 80,000 23,000 32,000 135,000 698,333 175,876 163,000 1,037,209 1 The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel (effective 2015) and the entitlement of EUR 2,000 under the Philips product arrangement 2 As of 2013, part of the remuneration of members of the Supervisory Board living in the Netherlands is subject to VAT. The amounts mentioned in this table are excluding VAT Supervisory Board members’ and Board of Management members’ interests in Philips shares Members of the Supervisory Board and of the Executive Committee are prohibited from writing call and put options or similar derivatives of Philips securities. Philips Group Shares held by Board members 1 in number of shares 2018 December 31, 2017 December 31, 2018 J. van der Veer 18,366 18,366 H. von Prondzynski 3,851 3,937 J.P. Tai 3,844 3,844 F.A. van Houten 233,119 292,302 A. Bhattacharya 53,974 66,794 M.J. van Ginneken 30,246 47,856 1 Reference date for board membership is December 31, 2018. |
Fair value of financial assets
Fair value of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Fair value of financial assets and liabilities [Abstract] | |
Disclosure of information about possible differences between carrying amount and fair value of contracts described in IFRS 7.29 b and IFRS 7.29 c [text block] | Fair value of financial assets and liabilities The estimated fair value of financial instruments has been determined by the company using available market information and appropriate valuation methods. The estimates presented are not necessarily indicative of the amounts that will ultimately be realized by the company upon maturity or disposal. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts. The fair value of Philips’ debt is estimated on the basis of the quoted market prices for certain issues, or on the basis of discounted cash flow analysis based upon market rates plus Philips’ spread for the particular tenors of the borrowing arrangement. Accrued interest is not included within the carrying amount or estimated fair value of debt. The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not carried at fair value if the carrying amount is a reasonable approximation of fair value. As reflected in the table below, equity instruments carried at FVTOCI were designated as such upon the adoption of IFRS 9. The remaining equity investment in Signify (current financial assets) was designated as FVTOCI upon initial recognition as of December 31, 2018. Remaining financial assets are mandatorily classified as FVTPL or FVTOCI. Philips Group Fair value of financial assets and liabilities in millions of EUR 2018 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 69 69 69 Equity instruments 20 20 20 Other financial assets 27 27 22 5 Financial assets carried at FVTPL 116 116 20 22 74 Debt instruments 26 26 26 - Equity instruments 172 172 22 1 149 Current financial assets 2 435 435 434 - Receivables - current 32 32 32 Financial assets carried at FVTOCI 664 664 457 27 181 Derivative financial instruments 36 36 36 Financial assets carried at fair value 817 817 476 85 255 Carried at (amortized) cost: Cash and cash equivalents 1,688 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 46 Receivables - current 4,004 Receivables - non-current 162 Financial assets carried at (amortized) cost 5,902 Total financial assets 6,718 Financial liabilities Carried at fair value: Contingent consideration (409) (409) (409) Financial liabilities carried at FVTP&L (409) (409) (409) Derivative financial instruments (290) (290) (290) Financial liabilities carried at fair value (699) (699) (290) (409) Carried at (amortized) cost: Accounts payable (2,303) Interest accrual (36) Debt (Corporate bonds and finance leases) (3,621) (3,906) (3,576) (330) Debt (excluding corporate bonds and finance leases) (1,200) Financial liabilities carried at (amortized) cost (7,159) Total financial liabilities (7,858) 1 For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the short maturity and the nature of these instruments, and therefore fair value information is not included in the table above. 2 The majority of the balance reflects the remaining stake in Signify (formerly Philips Lighting), which relates to equity instruments. Philips Group Fair value of financial assets and liabilities in millions of EUR 2017 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Available-for-sale financial assets 446 446 49 29 368 Securities classified as assets held for sale 1,264 1,264 1,264 Fair value through profit and loss 27 27 23 4 Derivative Financial Instruments 78 78 78 Financial assets carried at fair value 1,815 1,815 1,313 130 372 Carried at (amortized) cost: Cash and cash equivalents 1,939 Loans and receivables: Current loans receivable 2 Other non-current loans and receivables 114 Receivables - current 3,909 Receivables - non-current 130 Held-to-maturity investments 1 Financial assets carried at (amortized) costs 6,095 Total financial assets 7,909 Financial liabilities Carried at fair value: Contingent consideration (66) (66) (66) Derivative Financial Instruments (383) (383) (383) Financial liabilities carried at fair value (449) (449) (383) (66) Carried at amortized cost: Accounts payable (2,090) Interest accrual (38) Debt (Corporate bond and finance lease) (3,378) (3,860) (3,579) (281) Debt (other bank loans, overdrafts, forward contacts etc.) (1,337) Financial liabilities carried at (amortized) costs (6,843) Total financial liabilities (7,292) 1 For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the short maturity and the nature of these instruments, and therefore fair value information is not included in the table above. The tables above represents categorization of measurement of the estimated fair values of financial assets and liabilities. 2017 comparatives have not been restated for the adoption of IFRS 9. Specific valuation techniques used to value financial instruments include: Level 1 Instruments included in level 1 are comprised primarily of listed equity investments classified as financial assets carried at fair value through profit or loss or carried at fair value through other comprehensive income. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Level 2 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives or convertible bond instruments) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are based on observable market data, the instrument is included in level 2. The fair value of derivatives is calculated as the present value of the estimated future cash flows based on observable interest yield curves, basis spread and foreign exchange rates. The valuation of convertible bond instruments uses observable market quoted data for the options and present value calculations using observable yield curves for the fair value of the bonds. Level 3 If one or more of the significant inputs are not based on observable market data, such as third-party pricing information without adjustments, the instrument is included in level 3. Philips recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. The retained investment in the combined businesses of Lumileds and Automotive of EUR 112 million (December 31, 2017: EUR 243 million) is classified as a financial asset recognized at fair value through OCI, based on a valuation model with inputs, including earnings, multiples and discount rates, which are market-corroborated to the extent possible, and hence classified as Level 3 in the fair value hierarchy. The value decrease in 2018 was mainly attributable to a lower earnings assumption. A sensitivity analysis of the investment in the combined Lumileds and Automotive businesses at December 31, 2018 shows that if the earnings assumption were to increase instantaneously by 10%, with all other variables (including foreign exchange rates) held constant, the fair value of the investment would increase by approximately 60%. Similarly, a decrease of 10% in the earnings assumption would reduce the fair value by approximately 47%. If the valuation multiples were to increase instantaneously by 10% from the assumption at December 31, 2018, with all other variables (including foreign exchange rates) held constant, the fair value of the investment would increase by approximately 34%, while a decrease of 10% in valuation multiples would reduce the fair value by approximately 30%. As part of the EPD acquisition (refer to Acquisitions and Divestments A sensitivity analysis of the EPD contingent consideration liability at December 31, 2018 shows that if the probabilities of success for every milestone increased by 10 percentage points, with all other variables (including foreign exchange rates) held constant, the fair value of the liability would increase by approximately 3%. Similarly, a decrease in the probabilities of success for every milestone by 10 percentage points would reduce the fair value by approximately 4%. If the discount rates were to increase instantaneously by 100 basis points from the assumption at December 31, 2018, with all other variables (including foreign exchange rates) held constant, the fair value of the liability would decrease by approximately 3%, while a decrease in the discount rates of 100 basis points would increase the fair value by approximately 3%. The table below shows the reconciliation from the beginning balance to the end balance for Level 3 fair value measurements. Philips Group Reconciliation of the fair value hierarchy in millions of EUR 2018 Financial assets Financial liabilities Balance as of December 31, 2017 372 66 IFRS 9 adjustment 1 47 Balance at January 1, 2018 420 66 Assumed in a business combination 370 Purchase 30 Sales (35) Utilizations (48) Recognized in profit and loss: - other business income 5 - financial income and expenses - 12 Recognized in other comprehensive income 2 (145) 5 Receivables held to collect and sell (15) Balance at December 31, 2018 255 409 1 IFRS 9 adjustments relates to Receivables-current carried at FVTOCI. For further information refer to Significant accounting policies note. 2 Includes translation differences The section below elaborates on transactions in derivatives. Transactions in derivatives are subject to master netting and set-off agreements. In the case of certain termination events, under the terms of the master agreement, Philips can terminate the outstanding transactions and aggregate their positive and negative values to arrive at a single net termination sum (or close-out amount). This contractual right is subject to the following: The right may be limited by local law if the counterparty is subject to bankruptcy proceedings; The right applies on a bilateral basis. Philips Group Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2017 - 2018 2017 2018 Derivatives Gross amounts of recognized financial assets 78 36 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 78 36 Related amounts not offset in the balance sheet Financial instruments (38) (25) Cash collateral received Net amount 39 12 Philips Group Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2017 - 2018 2017 2018 Derivatives Gross amounts of recognized financial liabilities (383) (290) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (383) (290) Related amounts not offset in the balance sheet Financial instruments 38 25 Cash collateral received Net amount (345) (265) |
Details of treasury _ other fin
Details of treasury / other financial risks | 12 Months Ended |
Dec. 31, 2018 | |
Details of treasury / other financial risks [Abstract] | |
Disclosure of details of treasury risks [Text block] | Details of treasury / other financial risks Philips is exposed to several types of financial risks. This note further analyzes financial risks. Philips does not purchase or hold derivative financial instruments for speculative purposes. Information regarding financial instruments is included in Fair value of financial assets and liabilities Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk for the group is monitored through the Treasury liquidity committee, which tracks the development of the actual cash flow position for the group and uses input from a number of sources in order to forecast the overall liquidity position on both a short and longer term basis. Philips invests surplus cash in money market deposits with appropriate maturities to ensure sufficient liquidity is available to meet liabilities when due and in money market funds. The rating of the company’s debt by major rating agencies may improve or deteriorate. As a result, Philips’ future borrowing capacity may be influenced and its financing costs may fluctuate. Philips has various sources to mitigate the liquidity risk for the group. At December 31, 2018, Philips had EUR 1,688 million in cash and cash equivalents (2017: EUR 1,939 million), within which short-term deposits of EUR 1,174 million (2017: EUR 1,302 million). Cash and cash equivalents include all cash balances, money market funds and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash. Philips pools cash from subsidiaries to the extent legally and economically feasible; cash not pooled remains available for the company’s operational or investment needs. Philips faces cross-border foreign exchange controls and/or other legal restrictions in a few countries that could limit its ability to make these balances available on short notice for general use by the group. Furthermore, Royal Philips has a USD 2.5 billion Commercial Paper Programme and a EUR 1 billion committed revolving credit facility that can be used for general group purposes, such as a backstop for its Commercial Paper Programme. As of December 31, 2018, Royal Philips did not have any amounts outstanding under any of these facilities. A description of Philips’ credit facilities can be found in Debt In addition to cash and cash equivalents, Philips also held EUR 42 million of level 1 equity investments in other non-current financial assets (fair value at December 31, 2018). Furthermore, Philips is also a shareholder in Signify (EUR 434 million at year-end 2018) which is publicly listed and classified as other current financial asset. The table below presents a summary of the Group’s fixed contractual cash obligations and commitments at December 31, 2018. These amounts are an estimate of future payments which could change as a result of various factors such as a change in interest rates, contractual provisions, as well as changes in our business strategy and needs. Therefore, the actual payments made in future periods may vary from those presented in the following table: Philips Group Contractual cash obligation 1 2 in millions of EUR 2018 payments due by period total less than 1 year 1-3 years 3-5 years after 5 years Long-term debt 3 4,358 1,136 194 501 2,527 Finance lease obligations 357 100 152 53 52 Short-term debt 164 164 Operating leases obligations 756 176 227 148 204 Derivative liabilities 296 179 2 114 Interest on debt 1,632 108 207 200 1,117 Purchase obligations 4 666 233 352 52 30 Trade and other payables 2,303 2,303 Contractual cash obligations 10,532 4,399 1,134 1,069 3,929 3 Long-term debt includes short-term portion of long-term debt and excludes finance lease obligations 4 Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not include open purchase orders or other commitments which do not specify all significant terms. 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 1 Amounts in this table are undiscounted 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 86 million (2017: EUR 83 million). As at December 31, 2018 capital contributions already made to these investment funds are recorded as non-current financial assets. In January 2018, it was announced that the North American headquarters will move from Andover to Cambridge. Philips has entered into a new lease commitment commencing in 2020 with a term of 15 Certain Philips suppliers factor their trade receivables from Philips with third parties through supplier finance arrangements. At December 31, 2018 approximately EUR 275 million of the Philips accounts payable were known to have been sold onward under such arrangements whereby Philips confirms invoices. Philips continues to recognize these liabilities as trade payables and will settle the liabilities in line with the original payment terms of the related invoices. The operating lease obligations are mainly related to the rental of buildings. A number of these leases originate from sale-and-leaseback arrangements. Operating lease payments under sale-and-leaseback arrangements for 2018 totaled EUR 31 million (2017: EUR 31 million). The remaining minimum payment under sales-and-leaseback arrangements included in operating lease obligations above are as follows: Philips Group Operating lease - minimum payments under sale-and-leaseback arrangements in millions of EUR 2018 2019 29 2020 26 2021 23 2022 21 2023 20 Thereafter 106 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%, using forwards and currency options. 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, 2018: Philips Group Estimated transaction exposure and related hedges in millions of EUR 2018 Sales/Receivables Purchases/Payable exposure hedges exposure hedges Balance as of December 31, 2018 Exposure currency USD 1,672 (1,178) (659) 571 JPY 683 (361) (9) 9 CAD 263 (137) - - GBP 222 (102) (14) 6 CNY 276 (220) (120) 113 AUD 199 (109) CHF 107 (56) PLN 113 (63) SEK 46 (23) (1) 1 CZK 38 (19) RUB 97 (87) (1) 1 Others 215 (207) (156) 109 Total 2018 3,930 (2,562) (960) 809 Total 2017 3,395 (2,189) (867) 760 Philips uses foreign exchange spot and forward contracts, as well as zero cost collars in hedging the exposure. The derivatives related to transactions are, for hedge accounting purposes, split into hedges of on-balance-sheet accounts receivable/payable and forecasted sales and purchases. Changes in the value of on-balance-sheet foreign-currency accounts receivable/payable, as well as the changes in the fair value of the hedges related to these exposures, are reported in the income statement under costs of sales. Hedges related to forecasted transactions, where hedge accounting is applied, are accounted for as cash flow hedges. The results from such hedges are deferred in other comprehensive income within equity to the extent that the hedge is effective. As of December 31, 2018, a loss of EUR 10 million was deferred in equity as a result of these hedges (2017: EUR 23 million gain). The result deferred in equity will be released to earnings mostly during 2019 at the time when the related hedged transactions affect the income statement. During 2018, a net gain of EUR 0.04 million (2017: EUR 0.1 million net gain) was recorded in the consolidated statement of income as a result of ineffectiveness on certain anticipated cash flow hedges. Ineffectiveness arises when anticipated exposures are no longer expected to be highly probable. Philips has completed updates to its internal documentation and monitoring processes and concluded that all existing hedge relationships that are currently designated as effective hedging relationships will continue to qualify for hedge accounting under IFRS 9. As at December 31, 2018, a loss of EUR 6 million was included in the cash flow hedges reserve related to changes in fair value of foreign exchange forward contracts attributable to forward points and changes in the time value of option contracts, which under IFRS 9 are deferred in the cash flow hedges reserve within equity. The total net fair value of hedges related to transaction exposure as of December 31, 2018, was an unrealized liability of EUR 7 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 113 million in the value of the derivatives; including a EUR 75 million increase related to foreign exchange transactions of the USD against the EUR, a EUR 15 million increase related to foreign exchange transactions of the JPY against the EUR, a EUR 7 million increase related to foreign exchange transactions of the GBP against the EUR, a EUR 6 million increase related to foreign exchange transactions of the RUB against the EUR, a EUR 5 million increase related to foreign exchange transactions of the PLN against the EUR and a EUR 5 million increase related to foreign exchange transactions of the CHF against the EUR. The EUR 113 million increase includes a gain of EUR 14 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 99 million would be recognized in equity to the extent that the cash flow hedges were effective. The total net fair value of hedges related to transaction exposure as of December 31, 2017, was an unrealized asset of EUR 21 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 102 million in the value of the derivatives; including a EUR 53 million increase related to foreign exchange transactions of the USD against the EUR, a EUR 17 million increase related to foreign exchange transactions of the JPY against the EUR, a EUR 10 million increase related to foreign exchange transactions of the GBP against the EUR, a EUR 6 million increase related to foreign exchange transactions of the PLN against the EUR and a EUR 5 million increase related to foreign exchange transactions of the CHF against the EUR. Foreign exchange exposure also arises as a result of inter-company loans and deposits. Where the company enters into such arrangements, the financing is generally provided in the functional currency of the subsidiary entity. The currency of the company’s external funding and liquid assets is matched with the required financing of subsidiaries, either directly through external foreign currency loans and deposits, or synthetically by using foreign exchange derivatives, including cross currency interest rate swaps and foreign exchange forward contracts. In certain cases where group companies may also have external foreign currency debt or liquid assets, these exposures are also hedged through the use of foreign exchange derivatives. Changes in the fair value of hedges related to this exposure are recognized within financial income and expenses in the statements of income. When such loans would be considered part of the net investment in the subsidiary, net investment hedging would be applied. Translation exposure of foreign-currency equity invested in consolidated entities may be hedged. If a hedge is entered into, it is accounted for as a net investment hedge. Net current-period change, before tax, of the currency translation reserve of EUR 383 million relates mainly to the positive impact of the weaker EUR against the foreign currencies of countries in which Philips’ operations are located. The change in currency translation reserve was mostly related to the development of the USD. As of December 31, 2018, cross-currency interest rate swaps for a nominal value of USD 1,100 million (liability at fair value: EUR 246 million) and external bond funding for a nominal value of USD 1,473 million (liability at book value: EUR 1,290 million) were designated as net investment hedges of our financing investments in foreign operations for an equal amount. During 2018 a total loss of EUR 0.2 million was recognized in the income statement as ineffectiveness on net investment hedges, arising from counterparty and own credit risk. The total net fair value of financing derivatives as of December 31, 2018, was a liability of EUR 246 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 63 million in the value of the derivatives, including a EUR 79 million increase related to the USD. As of December 31, 2017, cross-currency interest rate swaps with a fair value liability of EUR 330 million and external bond funding for a nominal value of USD 2,535 million were designated as net investment hedges of our financing investments in foreign operations. During 2017 a total gain of EUR 1.4 million was recognized in the income statement as ineffectiveness on net investment hedges. The total net fair value of financing derivatives as of December 31, 2017, was a liability of EUR 326 million. An instantaneous 10% increase in the value of the EUR against all currencies would lead to an increase of EUR 213 million in the value of the derivatives, including a EUR 208 million increase related to the USD. Philips does not currently hedge the foreign exchange exposure arising from equity interests in non-functional-currency investments in associates and other non-current financial assets. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Philips had, at year-end, outstanding debt of EUR 4,821 million (2017: EUR 4,715 million), which constitutes an inherent interest rate risk with potential negative impact on financial results. At year-end, Philips held EUR 1,688 million in cash and cash equivalents (2017: EUR 1,939 million), and had total long-term debt of EUR 3,427 million (2017: EUR 4,044 million) and total short-term debt of EUR 1,394 million (2017: EUR 672 million). At December 31, 2018, Philips had a ratio of fixed-rate long-term debt to total outstanding debt of approximately 67%, compared to 72% one year earlier. A sensitivity analysis conducted shows that if long-term interest rates were to decrease instantaneously by 1% from their level of December 31, 2018, with all other variables (including foreign exchange rates) held constant, the fair value of the fixed-rate long-term debt (excluding forward contracts) would increase by approximately EUR 275 million. If there was an increase of 1% in long-term interest rates, this would reduce the market value of the fixed-rate long-term debt (excluding forward contracts) by approximately EUR 276 million. If interest rates were to increase instantaneously by 1% from their level of December 31, 2018, with all other variables held constant, the annualized net interest expense would decrease by approximately EUR 9 million. This impact was based on the outstanding net cash position (after excluding fixed-rate debt) at December 31, 2018. A sensitivity analysis conducted shows that if long-term interest rates were to decrease instantaneously by 1% from their level of December 31, 2017, with all other variables (including foreign exchange rates) held constant, the fair value of the long-term debt would increase by approximately EUR 271 million. If there was an increase of 1% in long-term interest rates, this would reduce the market value of the long-term debt by approximately EUR 271 million. If interest rates were to increase instantaneously by 1% from their level of December 31, 2017, with all other variables held constant, the annualized net interest expense would decrease by approximately EUR 12 million. This impact was based on the outstanding net cash position (after excluding fixed-rate debt) at December 31, 2017. 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, including Signify and Corindus Vascular Robotics. As a result, Philips 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 476 million at year-end 2018 (2017: EUR 1,313 million). Philips does not hold derivatives in the above-mentioned listed companies. Philips also has shareholdings in several privately-owned companies amounting to EUR 150 million, mainly consisting of the combined businesses in Lumileds and Automotive. 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. The commodity price derivatives that Philips may enter into are accounted for as cash flow hedges to offset forecasted purchases. As of December 31, 2018 and 2017, respectively, Philips did not have any material outstanding commodity derivatives. Credit risk Credit risk represents the loss that would be recognized at the reporting date, if counterparties failed completely to perform their payment obligations as contracted. Credit risk is present within Philips trade receivables and contract assets. To have better insights into the credit exposures, Philips performs ongoing evaluations of the financial and non-financial condition of its customers and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is determined not to be sufficient to grant the credit limit required, there are a number of mitigation tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-payments and pledges on assets. Philips invests available cash and cash equivalents with various financial institutions and is exposed to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-performance by financial institutions with respect to financial derivative instruments. Philips actively manages concentration risk and on a daily basis measures the potential loss under certain stress scenarios, should a financial institution default. These worst-case scenario losses are monitored and limited by the company. The company does not enter into any financial derivative instruments to protect against default by financial institutions. However, where possible the company requires all financial institutions with which it deals in derivative transactions to complete legally enforceable netting agreements under an International Swap Dealers Association master agreement or otherwise prior to trading, and whenever possible, to have a strong credit rating from Fitch and Standard & Poor’s Investor Services. Philips also regularly monitors the development of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial transactions are concluded with financial institutions with strong credit ratings or with governments or government-backed institutions. The table below shows the number of financial institutions with credit rating A- and above with which Philips has cash at hand and short-term deposits above EUR 10 million as of December 31, 2018. Philips Group Credit risk with number of counterparties for deposits above EUR 10 million 2018 10-100 million 100-500 millio 500 million and above AA- rated bank counterparties 1 1 1 A+ rated bank counterparties 2 2 A rated bank counterparties 2 A- rated bank counterparties 1 3 6 1 For an overview of the overall maximum credit exposure related to debt instruments, derivatives and loans and receivables, please refer to Fair value of financial assets and liabilities Country risk Country risk is the risk that political, legal, or economic developments in a single country could adversely impact our performance. The country risk per country is defined as the sum of the equity of all subsidiaries and associated companies in country cross-border transactions, such as intercompany loans, accounts receivable from third parties and intercompany accounts receivable. The country risk is monitored on a regular basis. As of December 31, 2018, the company had country risk exposure of EUR 10.9 billion in the United States, EUR 1.9 billion in the Netherlands and EUR 1.9 billion in China (including Hong Kong). Other countries higher than EUR 500 million are Japan (EUR 714 million), the United Kingdom (EUR 643 million) and Germany (EUR 551 million). India exceeded EUR 300 million but was less than EUR 500 million. The degree of risk of a country is taken into account when new investments are considered. The company does not, however, use financial derivative instruments to hedge country risk. The impact of hyperinflation is also routinely assessed and was not material for the periods presented. Other insurable risks Philips is covered for a broad range of losses by global insurance policies in the areas of property damage/ business interruption, general and product liability, transport, directors’ and officers’ liability, employment practice liability, crime and cyber security. 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 an S&P credit rating 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 0.25 million to EUR 5 million per occurrence and this variance is designed to differentiate between the existing risk categories within Philips. Above a first layer of working deductibles, Philips operates its own re-insurance captive, which during 2018 retained EUR 5 million per claim and EUR 10 million in the annual aggregate for general, product and professional liability claims. New contracts were signed effective December 31, 2018, for the coming year, whereby the re-insurance captive retentions remained unchanged. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent events [Abstract] | |
Disclosure of subsequent events [Text block] | Subsequent events New share buyback program On January 29, 2019, Philips announced a new share buyback program for an amount of up to EUR 1.5 billion. At the current share price, the program represents a total of approximately 46 million shares. Philips expects to start the program in the first quarter of 2019 and to complete it within two years. As the program will be initiated for capital reduction purposes, Philips intends to cancel all of the shares acquired under the program. The program will be executed by an intermediary to allow for purchases in the open market during both open and closed periods, in accordance with the EU Market Abuse Regulation. Claim LG Electronics, Inc (LGE) In connection with the CRT matter as referenced in Contingent assets and liabilities |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Document And Entity Information [Abstract] | |
Statement of IFRS compliance [text block] | All standards and interpretations issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee effective 2018 have been endorsed by the EU; consequently, the accounting policies applied by Philips also comply with IFRS as issued by the IASB. These accounting policies have been applied by group entities. |
Description of presentation currency | The Consolidated financial statements are presented in euros, which is the presentation currency. Due to rounding, amounts may not add up precisely to the totals provided. |
Disclosure of accounting judgements and estimates [text block] | Use of estimates The preparation of the Consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. These estimates inherently contain a degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions. In the process of applying the accounting policies, management has made estimates and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the reported amounts of assets and liabilities within the next financial year, as well as to the disclosure of contingent liabilities at the date of the Consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The company evaluates these estimates and judgments on an ongoing basis and bases the estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that Philips believes are reasonable under the circumstances. Existing circumstances and assumptions about future developments may change due to circumstances beyond the company’s control and are reflected in the assumptions if and when they occur. The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. The company revises material estimates if changes occur in the circumstances or if there is new information or experience on which an estimate was or can be based. The areas where the most significant judgments and estimates are made are goodwill, deferred tax asset recoverability, impairments, classification and measurement of financial instruments, the accounting for an arrangement containing a lease, revenue recognition, tax risks and other contingencies, assessment of control, classification of assets and liabilities held for sale and the presentation of items of profit and loss and cash flows as continuing or discontinued, as well as when determining the fair values of acquired identifiable intangible assets, contingent considerations and investments based on an assessment of future cash flows (e.g. earn out arrangements as part of acquisitions). For further discussion of these significant judgements and estimates, reference is made to the respective accounting policies and notes within these Consolidated financial statements that relate to the above topics. Further judgment is applied when analyzing impairments of goodwill and intangible assets not yet ready for use that are performed annually and whenever a triggering event has occurred to determine whether the carrying value exceeds the recoverable amount. These analyses are generally based on estimates of discounted future cash flows. Furthermore, the company applies judgment when actuarial assumptions are established to anticipate future events that are used in calculating post-employment benefit expenses and liabilities. These factors include assumptions with respect to interest rates, rates of increase in healthcare costs, rates of future compensation increases, turnover rates and life expectancy. Correction of errors in accounting for Earnings Per Share During 2018, Philips determined that the basic and diluted earnings per common share amounts for income from continuing operations attributable to shareholders, presented in the 2017 consolidated financial statements of the Group, were understated for both 2017 and 2016. The understatement was a result of an error, solely impacting certain EPS calculations and disclosures, in the allocation of income attributable to non-controlling interests, between continuing and discontinued operations. The correction of this error resulted in basic earnings per common share for income from continuing operations attributable to shareholders for 2017, being restated upwards from EUR 0.88 to EUR 1.10 (2016: EUR 0.86 to EUR 0.90). Similarly, diluted earnings per common share for income from continuing operations attributable to shareholders for 2017 was restated upwards from EUR 0.86 to EUR 1.08 (2016: EUR 0.85 to EUR 0.89). Basic and diluted earnings per common share for income from discontinued operations has been restated downwards in an equal amount. The basic and diluted net income attributable to shareholders earnings per common share in either year were not impacted. |
Disclosure of reclassifications or changes in presentation [text block] | Changes in presentation from the prior year Accounting policies have been applied consistently for all periods presented in these consolidated financial statements, except for the items mentioned below. In addition, certain prior-year amounts have been reclassified to conform to the current year presentation. Change in Consolidated balance sheets presentation Following the adoption of IFRS 15, the company has changed the presentation of certain amounts in the Consolidated balance sheets to reflect the terminology of IFRS 15. Further reference is made to the section New standards and interpretations of this note. Change in Segment reporting Due to the divestment and deconsolidation of businesses in 2017, Philips changed the way it allocates resources and analyzes its performance based on the revised segment structure. Accordingly, from 2018 onwards the operational reportable segments for the purpose of the disclosures required by IFRS 8 Operating Segments were Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses and Personal Health businesses. Each being responsible for the management of its business worldwide. Additionally, HealthTech Other and Legacy Items were combined into Other. The new segment structure had no impact on the cash-generating units disclosed in Goodwill Consequential changes to comparative segment disclosures have been processed in Other assets Receivables Provisions Information by segment and main country |
Specific choices within IFRS [Text block] | Specific choices within IFRS In certain instances IFRS allows alternative accounting treatments for measurement and/or disclosure. Philips has adopted one of the treatments as appropriate to the circumstances of the company. The most important of these alternative treatments are mentioned below. |
Accounting policy for tangible and intangible fixed assets [Text block] | Tangible and intangible fixed assets Under IFRS, an entity shall choose either the cost model or the revaluation model as its accounting model for tangible and intangible fixed assets. In this respect, items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The useful lives and residual values are evaluated annually. Furthermore, the company chose to apply the cost model, meaning that costs relating to product development, the development and purchase of software for internal use and other intangible assets are capitalized and subsequently amortized over the estimated useful life. Further information on Tangible and Intangible fixed assets can be found in Property, plant and equipment Intangible assets excluding goodwill |
Description of accounting policy for employee benefits [text block] | Employee benefit accounting IFRS does not specify how an entity should present its service costs related to pensions and net interest on the net defined-benefit liability (asset) in the Consolidated statements of income. With regards to these elements, the company presents service costs in Income from operations and the net interest expenses related to defined-benefit plans in Financial expense. Furthermore, when accounting for the settlement of defined-benefit plans, the company made the accounting policy choice to adjust the amount of the plan assets transferred for the effect of the asset ceiling. Further information on employee benefit accounting can be found in Post-employment benefits Employee benefit accounting A defined-contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined-contribution pension plans are recognized as an employee benefit expense in the Consolidated statements of income in the periods during which services are rendered by employees. A defined-benefit plan is a post-employment benefit plan other than a defined-contribution plan. Plans for which the company has no legal or constructive obligation to pay further amounts, but to which it does pay non-fixed contributions, are also treated as a defined-benefit plan. The net pension asset or liability recognized in the Consolidated balance sheets in respect of defined-benefit post-employment plans is the fair value of plan assets less the present value of the projected defined-benefit obligation at the Consolidated balance sheets date. The defined-benefit obligation is calculated annually by qualified actuaries using the projected unit credit method. Recognized assets are limited to the present value of any reductions in future contributions or any future refunds. The net pension liability is presented as a long-term provision; no distinction is made for the short-term portion. For the company’s major plans, a full discount rate curve of high-quality corporate bonds is used to determine the defined-benefit obligation. The curves are based on Willis Towers Watson’s rate methodology which uses data of corporate bonds rated AA or equivalent. For the other plans a single-point discount rate is used based on corporate bonds for which there is a deep market and on the plan’s maturity. Plans in countries without a deep corporate bond market use a discount rate based on the local sovereign curve and the plan’s maturity. Pension costs in respect of defined-benefit post-employment plans primarily represent the increase of the actuarial present value of the obligation for post-employment benefits based on employee service during the year and the interest on the net recognized asset or liability in respect of employee service in previous years. Remeasurements of the net defined-benefit asset or liability comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The company recognizes all remeasurements in Other comprehensive income. The company recognizes gains and losses on the settlement of a defined-benefit plan when the settlement occurs. The gain or loss on settlement is the difference between the present value of the defined-benefit obligation being settled, as determined on the date of settlement, and the settlement price, including any plan assets transferred and any payments made directly by the company in connection with the settlement. In this respect, the amount of the plan assets transferred is adjusted for the effect of the asset ceiling. Past service costs arising from the introduction of a change to the benefit payable under a plan or a significant reduction of the number of employees covered by a plan (curtailment) are recognized in full in the Consolidated statements of income. Further information on post-employment benefit accounting can be found in Post-employment benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. The company recognizes a liability and an expense for bonuses and incentives based on a formula that takes into consideration the profit attributable to the company’s shareholders after certain adjustments. The company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods, such as jubilee entitlements. That benefit is discounted to determine its present value. Remeasurements are recognized in the Consolidated statements of income in the period in which they arise. Further information on other employee benefits can be found in Provisions |
Description of accounting policy for cash flows [text block] | Cash flow statements Under IFRS, an entity shall report cash flows from operating activities using either the direct method (whereby major classes of gross cash receipts and gross cash payments are disclosed) or the indirect method (whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows). In this respect, the company chose to prepare the cash flow statements using the indirect method. Furthermore, interest cash flows are presented in cash flows from operating activities rather than in cash flows from financing or investing activities, because they enter into the determination of profit or loss. The company chose to present dividends paid to shareholders of Koninklijke Philips N.V. as a component of cash flows from financing activities, rather than to present such dividends as cash flows from operating activities, which is an allowed alternative under IFRS. Consolidated statements of cash flows can be found in Consolidated statements of cash flows Cash flow statements Cash flows arising from transactions in a foreign currency are translated into the company’s functional currency using the exchange rate at the date of the cash flow. Cash flows from derivative instruments that are accounted for as cash flow hedges are classified in the same category as the cash flows from the hedged items. Cash flows from other derivative instruments are classified as investing cash flows. |
Description of accounting policy for recognition of revenue [text block] | Revenue recognition Revenue from the sale of goods in the normal course of business is recognized at a point in time when the performance obligation is satisfied and it is based on the amount of the transaction price that is allocated to the performance obligation. The transaction price is the amount of the consideration to which the company expects to be entitled in exchange for transferring the promised goods to the customer. The consideration expected by the company may include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and volume rebates. The company adjusts the consideration for the time value of money for the contracts where no explicit interest rate is mentioned if the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds six months. Revenue for the sale of goods is recognized when control of the asset is transferred to the buyer and only when it is highly probable that a significant reversal of revenue will not occur when uncertainties related to a variable consideration are resolved. Transfer of control varies depending on the individual terms of the contract of sale. For consumer-type products in the segment of Personal Health, control is transferred when the product is shipped and delivered to the customer and title and risk have passed to the customer (depending on the delivery conditions) and acceptance of the product has been obtained. Examples of delivery conditions are ‘Free on Board point of delivery’ and ‘Costs, Insurance Paid point of delivery’, where the point of delivery may be the shipping warehouse or any other point of destination as agreed in the contract with the customer and where control is transferred to the customer. Revenues from transactions relating to distinct goods or services are accounted for separately based on their relative stand-alone selling prices. The stand-alone selling price is defined as the price that would be charged for the goods or service in a separate transaction under similar conditions to similar customers (adjusted market assessment approach or expected costs plus margin approach), which within the company is mainly the Country Target Price (CTP). The transaction price determined (taking into account variable considerations) is allocated to performance obligations based on relative stand-alone selling prices. These transactions mainly occur in the segments Diagnosis & Treatment and Connected Care & Health Informatics and include arrangements that require subsequent installation and training activities in order to make distinct goods operable for the customer. As such, the related installation and training activities are part of equipment sales rather than separate performance obligations. Revenue is recognized when the performance obligation is satisfied, i.e. when the installation has been completed and the equipment is ready to be used by the customer in the way contractually agreed. Revenues are recorded net of sales taxes. A variable consideration is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such assessment is performed on each reporting date to check whether it is constrained. For products for which a right of return exists during a defined period, revenue recognition is determined based on the historical pattern of actual returns, or in cases where such information is not available revenue recognition is postponed until the return period has lapsed. Return policies are typically based on customary return arrangements in local markets. A provision is recognized for assurance-type product warranty at the time of revenue recognition and reflects the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to the products sold. For certain products, the customer has the option to purchase the warranty separately, which is considered a separate performance obligation on top of the assurance-type product warranty. For such warranties which provide distinct service, revenue recognition occurs on a straight-line basis over the extended warranty contract period. In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred for shipping and handling of internal movements of goods are recorded as cost of sales. Shipping and handling related to sales to third parties are recorded as selling expenses. When shipping and handling are part of a project and billed to the customer, then the related expenses are recorded as cost of sales. Shipping and handling billed to customers are distinct and separate performance obligations and recognized as revenues. Expenses incurred for sales commissions that are considered incremental to the contracts are recognized immediately in the Consolidated statements of income as selling expenses as a practical expedient under IFRS 15. Revenue from services is recognized over a period of time as the company transfers control of the services to the customer which is demonstrated by the customer simultaneously receiving and consuming the benefits provided by the company. The amount of revenues is measured by reference to the progress made towards complete satisfaction of the performance obligation, which in general is evenly over time. Service revenue related to repair and maintenance activities for goods sold is recognized ratably over the service period or as services are rendered. Royalty income from brand license arrangements is recognized based on a right to access the license, which in practice means over the contract period based on a fixed amount or reliable estimate of sales made by a licensee. Royalty income from intellectual property rights such as technology licenses or patents is recognized based on a right to use the license, which in practice means at a point in time based on the contractual terms and substance of the relevant agreement with a licensee. However, revenue related to intellectual property contracts with variable consideration where a constraint in the estimation is identified, is recognized over the contract period and is based on actual or reliably estimated sales made by a licensee. The company receives payments from customers based on a billing schedule or credit period, as established in our contracts. Credit periods are determined based on standard terms, which vary according to local market conditions. Amounts posted in deferred revenue for which the goods or services have not yet been transferred to the customer and amounts that have either been received or are due, are presented as Contract liabilities in the Consolidated balance sheets. |
Description of accounting policy for income tax [text block] | Income taxes Income taxes comprise current and deferred tax. Income tax is recognized in the Consolidated statements of income except to the extent that it relates to items recognized directly within equity or in other comprehensive income. Current tax is the expected taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Tax liabilities are recognized when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the company to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact the income tax expense in the period during which such a determination is made. Deferred tax assets and liabilities are recognized, using the Consolidated balance sheets method, for the expected tax consequences of temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of goodwill; the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; and differences relating to investments in subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by the company and it is probable that it will not reverse in the foreseeable future. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity or on different taxable entities, but the company intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that there will be future taxable profits against which they can be utilized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during the periods when the deferred tax assets become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Deferred tax liabilities for withholding taxes are recognized for subsidiaries in situations where the income is to be paid out as dividend in the foreseeable future and for undistributed earnings of unconsolidated companies to the extent that these withholding taxes are not expected to be refundable or deductible. Changes in tax rates and tax laws are reflected in the period when the change was enacted or substantively enacted by the reporting date. Any subsequent adjustment to a tax asset or liability that originated in discontinued operations and for which no specific arrangements were made at the time of divestment, due to a change in the tax base or its measurement, is allocated to discontinued operations (i.e. backwards tracing). Examples are a tax rate change or change in retained assets or liabilities directly relating to the discontinued operation. Any subsequent change to the recognition of deferred tax assets is allocated to the component in which the taxable gain is or will be recognized. The above principles are applied to the extent the ‘discontinued operations’ are sufficiently separable from continuing operations. Further information on income tax can be found in Income taxes |
Description of accounting policy for provisions [text block] | Provisions Provisions are recognized if, as a result of a past event, the company has a present legal or constructive obligation, the amount can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money. The increase in the provision due to passage of time is recognized as interest expense. The accounting and presentation for some of the company’s provisions is as follows: Product warranty – A provision for assurance-type product warranty is recognized when the underlying products or services are sold. The provision is based on historical warranty data and a weighing of possible outcomes against their associated probabilities. Environmental provisions – Measurement of liabilities associated with environmental obligations is based on current legal and constructive requirements. Liabilities and expected insurance recoveries, if any, are recorded separately. The carrying amount of environmental liabilities is regularly reviewed and adjusted for new facts and changes in law. Restructuring-related provisions – The provision for restructuring mainly relates to the estimated costs of initiated restructurings, the most significant of which have been approved by the Executive Committee, and which generally involve the realignment of certain parts of the industrial and commercial organization. When such restructurings require discontinuance and/or closure of lines of activities, the anticipated costs of closure or discontinuance are included in restructuring provisions. A liability is recognized for those costs only when the company has a detailed formal plan for the restructuring and has raised a valid expectation with those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. Before a provision is established, the company recognizes any impairment loss on the assets associated with the restructuring. Litigation provisions – In relation to legal claim provisions and settlements, the relevant balances are transferred to Other liabilities at the point when the amount and timing of cash outflows are no longer uncertain. Settlements which are agreed for amounts in excess of existing provisions are reflected as increases in Other liabilities. Further information on provisions can be found in Provisions |
Description of accounting policy for goodwill [text block] | Goodwill The measurement of goodwill at initial recognition is described in the Basis of consolidation note. Goodwill is subsequently measured at cost less accumulated impairment losses. Further information on goodwill can also be found in Goodwill |
Description of accounting policy for intangible assets other than goodwill [text block] | Intangible assets other than goodwill Acquired finite-lived intangible assets are amortized using the straight-line method over their estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized at cost, with the exception of intangible assets acquired as part of a business combination, which are capitalized at their acquisition date fair value. The company expenses all research costs as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized as an intangible asset if the product or process is technically and commercially feasible, the company has sufficient resources and the intention to complete development and can measure the attributable expenditure reliably. The capitalized development expenditure comprises of all directly attributable costs (including the cost of materials and direct labor). Other development expenditures and expenditures on research activities are recognized in the Consolidated statements of income. Capitalized development expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of capitalized development expenditure is charged to the Consolidated statements of income on a straight-line basis over the estimated useful lives of the intangible assets. Further information on intangible assets other than goodwill can be found in Intangible assets excluding goodwill |
Description of accounting policy for non-current assets or disposal groups classified as held for sale and discontinued operations [text block] | Discontinued operations and non-current assets held for sale Non-current assets and disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Consolidated balance sheets. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Consolidated balance sheets. A discontinued operation is a component of an entity that has either been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations; or is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a view to sell. If a discontinued operation is sold in stages as part of a single coordinated plan until it is completely sold, then the Investment in associate that is recognized upon sale of a portion that results in Philips having significant influence in the operation (rather than control) is continued to be treated as discontinued operation provided that the held for sale criteria are met. Non-current assets held for sale and discontinued operations are carried at the lower of carrying amount or fair value less cost of disposal. Any gain or loss from disposal, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Consolidated financial statements and related notes for all periods presented. Comparatives in the Consolidated balance sheets are not represented when a non-current asset or disposal group is classified as held for sale. Comparatives are represented for presentation of discontinued operations in the Consolidated statements of cash flows and Consolidated statements of income. Adjustments in the current period to amounts previously presented in discontinued operations that are directly related to the disposal of a discontinued operation in a prior period, and for which no specific arrangements were made at the time of divestment, are classified separately in discontinued operations. Circumstances to which these adjustments may relate include resolution of uncertainties that arise from the terms of the disposal transaction, such as the resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise from and are directly related to the operations of the component before its disposal, such as environmental and assurance-type product warranty obligations retained by the company, and the settlement of employee benefit plan obligations provided that the settlement is directly related to the disposal transaction. Further information on discontinued operations and non-current assets held for sale can be found in Discontinued operations and assets classified as held for sale |
Description of accounting policy for impairment of non-financial assets [text block] | Impairment of goodwill and intangible assets not yet ready for use Goodwill and intangible assets not yet ready for use are not amortized but are tested for impairment annually and whenever impairment indicators require. In case of goodwill and intangible assets not yet ready for use, either internal or external sources of information are considered indicators that an asset or a CGU may be impaired. In most cases the company identified its cash-generating units for goodwill at one level below that of an operating segment. Cash flows at this level are substantially independent from other cash flows and this is the lowest level at which goodwill is monitored by the Executive Committee. An impairment loss is recognized in the Consolidated statements of income whenever and to the extent that the carrying amount of a cash-generating unit exceeds the unit’s recoverable amount, whichever is the greater, its value in use or its fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from the sale of an asset in an arm’s length transaction, less costs of disposal. Further information on impairment of goodwill and intangible assets not yet ready for use can be found in Goodwill Intangible assets excluding goodwill Impairment of non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and deferred tax assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of an asset with the greater of its value in use and fair value less cost of disposal. Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured as the amount obtained from a sale of an asset in an arm’s length transaction, less costs of disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the recoverable amount. The review for impairment is carried out at the level where cash flows occur that are independent of other cash flows. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if and to the extent that there has been a change in the estimates used to determine the recoverable amount. The loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment are recognized in the Consolidated statements of income. |
Description of accounting policy for impairment of financial assets [text block] | Impairment of financial assets The company recognizes an allowance for expected credit losses (ECLs) for trade receivables, contract assets, lease receivables, debt investments carried at FVTOCI and amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the company expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized in two stages. For credit risk exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (12-month ECLs). The company considers a financial asset to be in default when the counterparty is unlikely to pay its credit obligations to the company in full or when the financial asset is past due. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (lifetime ECLs). When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the company's historical experience and informed credit assessment and including forward-looking information, such as forecast economic conditions that affect the ability of the customers to settle the receivables. For all trade receivables, contract assets and lease receivables, the company applies the IFRS 9 simplified approach to measuring ECLs, which uses the lifetime ECL allowance. To measure the ECLs on trade receivables and contract assets, the company takes into account credit-risk concentration, collective debt risk based on average historical losses, specific circumstances such as serious adverse economic conditions in a specific country or region, and other forward-looking information. Trade receivables, contract assets and lease receivables are written off when there is no reasonable expectation of recovery of the asset, for example because of bankruptcy or other forms of receivership. Further information on financial assets can be found in Other financial assets |
Disclosure of basis of consolidation [text block] | Basis of consolidation The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V. and all subsidiaries that the company controls, i.e. when it is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and in cases where Philips has less than a majority of the voting or similar rights of an investee, Philips considers all relevant facts and circumstances in assessing whether it has power over an investee, including the contractual arrangement(s) with the other vote holders of the investee, rights arising from other contractual arrangements and the company’s voting rights and potential voting rights. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. All intercompany balances and transactions have been eliminated in the Consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. |
Description of accounting policy for loss of control [Text block] | Loss of control Upon loss of control, the company derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising from the loss of control is recognized in the Consolidated statements of income. If the company retains any interest in the previous subsidiary, such interest is measured at fair value at the date the control is lost. Subsequently it is accounted for as either an equity-accounted investee (associate) or as a financial asset, depending on the level of influence retained. Further information on loss of control can be found in Discontinued operations and assets classified as held for sale |
Description of accounting policy for business combinations [text block] | Business combinations Business combinations are accounted for using the acquisition method. Under the acquisition method, the identifiable assets acquired, liabilities assumed and any non-controlling interest in the acquiree are recognized at the acquisition date, which is the date on which control is transferred to the company. The company measures goodwill at the acquisition date as: the fair value of the consideration transferred; plus the recognized amount of any non-controlling interest in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the company incurs are expensed as incurred. Any contingent consideration payable is recognized at fair value at the acquisition date and initially is presented in Long-term provisions. When the timing and amount of the consideration become more certain, it is reclassified to Accrued liabilities. If the contingent consideration that meets the definition of a financial instrument is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in the Consolidated statements of income. Non-controlling interests are measured on the basis of their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Further information on business combinations can be found in Acquisitions and divestments |
Acquisitions of and adjustments to non-controlling interests [Text block] | Acquisitions of and adjustments to non-controlling interests Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognized. Adjustments to non-controlling interests arising from transactions that do not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary. |
Description of accounting policy for investment in associates [text block] | Investments in associates (equity-accounted investees) Associates are all entities over which the company has significant influence, but no control. Significant influence is presumed with a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The carrying amount of an investment includes the carrying amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to the investment as a whole. The company’s share of the net income of these companies is included in Investments in associates, net of income taxes, in the Consolidated statements of income, after adjustments to align the accounting policies with those of the company, from the date that significant influence commences until the date that significant influence ceases. Dilution gains and losses arising from investments in associates are recognized in the Consolidated statements of income as part of Investments in associates, net of income taxes. When the company’s share of losses exceeds its interest in an associate, the carrying amount of that interest (including any long-term loans) is reduced to zero and recognition of further losses is discontinued except to the extent that the company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains on transactions between the company and its associates are eliminated to the extent of the company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Remeasurement differences of an equity stake resulting from gaining control over an investee that was previously recorded as an associate are recorded under Investments in associates. Further information on investments in associates can be found in Interests in entities |
Description of accounting policy for foreign currency translation [text block] | Foreign currencies Foreign currency transactions The financial statements of all group entities are measured using the currency of the primary economic environment in which the entity operates (functional currency). The euro (EUR) is the functional currency of the company and the presentation currency of the Group financial statements. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or the valuation in cases where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated statements of income, except when deferred in Other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign currency differences arising from translations are recognized in the Consolidated statements of income, except for equity investments measured at fair value through OCI which are recognized in Other comprehensive income. If there is an impairment which results in foreign currency differences being recognized, these differences are reclassified from Other comprehensive income to the Consolidated statements of income. All exchange difference items are presented as part of Cost of sales, with the exception of tax items and financial income and expense, which are recognized in the same line item as they relate to in the Consolidated statements of income. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency using the exchange rate at the date the fair value was determined. Non-monetary items in a foreign currency that are measured based on historical cost are translated using the exchange rate at the transaction date. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to euros at the exchange rates prevailing at the reporting date. The income and expenses of foreign operations are translated to euros at the exchange rates prevailing at the dates of the transactions. Foreign currency differences arising upon translation of foreign operations into euros are recognized in Other comprehensive income, and presented as part of Currency translation differences in Equity. However, if the operation is a non-wholly-owned subsidiary, the relevant proportionate share of the translation difference is allocated to Non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the Currency translation differences related to the foreign operation is reclassified to the Consolidated statements of income as part of the gain or loss on disposal. When the company disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the respective proportion of the cumulative amount is reattributed to Non-controlling interests. When the company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to the Consolidated statements of income. |
Description of accounting policy for financial instruments [text block] | Financial instruments Non-derivative financial assets Recognition and initial measurement Non-derivative financial assets are recognized when the company becomes a party to the contractual provisions of the instrument. Purchases and sales of financial assets in the normal course of business are accounted for at the trade date. Dividend and interest income are recognized when earned. Gains or losses, if any, are recorded in Financial income and expense. Non-derivative financial assets are derecognized when the rights to receive cash flows from the asset have expired or the company has transferred its rights to receive cash flows from the asset. At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the Consolidated statements of income. Classification and subsequent measurement The company classifies its non-derivative financial assets in the following measurement categories: those that are measured subsequently at fair value (either through OCI (FVTOCI) or profit or loss (FVTPL)); those that are measured at amortized cost. In assessing the classification, the company considers the business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will be recorded in either the Consolidated statements of income or in Other comprehensive income (OCI). For investments in equity instruments that are not held for trading, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVTOCI. For investments in these equity instruments, the company does not subsequently reclassify between FVTOCI and FVTPL. For debt investments, assets are reclassified between FVTOCI, FVTPL and amortized cost only when its business model for managing those assets changes. Non-derivative financial assets comprise cash and cash equivalents, receivables and other financial assets. Cash and cash equivalents Cash and cash equivalents include all cash balances, certain money market funds and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash. Further information on cash and cash equivalents can be found in Cash flow statement supplementary information Receivables Receivable balances that are held to collect are subsequently measured at amortized cost and are subject to impairment as explained in the impairment section of this note. Receivables that are held to collect and sell are subsequently measured at FVTOCI and are also subject to impairment. The company derecognizes receivables on entering into factoring transactions if the company has transferred substantially all risks and rewards or if the company does not retain control over those receivables. Further information on receivables can be found in Receivables Other (non-)current financial assets Other (non-)current financial assets include both debt instruments and equity instruments. Debt instruments include those subsequently carried at amortized cost, those carried at FVTPL and those carried at FVTOCI. Classification depends on the company’s business model for managing the asset and the cash flow characteristics of the asset. Debt instruments that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost and are subject to impairment. Interest income from these financial assets is included in Financial income using the effective interest rate method. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Debt instruments that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVTOCI and are subject to impairment. Movements in the carrying amounts are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses, which are recognized in the Consolidated statements of income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to the Consolidated statements of income. Interest income from these financial assets is included in Financial income using the effective interest rate method. Debt instruments that do not meet the criteria for amortized cost or FVTOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognized in the Consolidated statements of income in the period in which it arises. Equity investments are subsequently measured at fair value. Equity instruments that are held for trading are measured at FVTPL. For equity instruments that are not held for trading, the company makes an irrevocable election at the time of initial recognition whether to account for the equity investment at FVTPL or FVTOCI. Where management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the Consolidated statements of income following the derecognition of the investment. Dividends from such investments continue to be recognized in the Consolidated statements of income when the company’s right to receive payments is established. Further information on other (non-)current financial assets can be found in Other financial assets Debt and other financial liabilities Debt and other financial liabilities, excluding derivative financial liabilities and provisions, are initially measured at fair value and, in the case of debt and payables, net of directly attributable transaction costs. Debt and other financial liabilities are subsequently measured at amortized cost using the effective interest rate. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. Debt and other financial liabilities are derecognized when the obligation under the liability is discharged, cancelled or has expired. Further information on debt and other financial liabilities can be found in Debt Derivative financial instruments, including hedge accounting The company uses derivative financial instruments principally to manage its foreign currency risks and, to a more limited extent, interest rate and commodity price risks. All derivative financial instruments are accounted for at the trade date and classified as current or non-current assets or liabilities based on the maturity date or the early termination date. The company measures all derivative financial instruments at fair value that is derived from the market prices of the instruments, calculated on the basis of the present value of the estimated future cash flows based on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or derived from option pricing models, as appropriate. Gains or losses arising from changes in fair value of derivatives are recognized in the Consolidated statements of income, except for derivatives that are highly effective and qualify for cash flow or net investment hedge accounting. Changes in the fair value of foreign exchange forward contracts attributable to forward points and changes in the time value of the option contracts are deferred in the cash flow hedges reserve within equity. The deferred amounts are recognized in the Consolidated statements of income against the related hedged transaction when it occurs. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in OCI until the Consolidated statements of income are affected by the variability in cash flows of the designated hedged item. To the extent that the hedge is ineffective, changes in the fair value are recognized in the Consolidated statements of income. The company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. When it is established that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the company discontinues hedge accounting prospectively. When hedge accounting is discontinued because it is expected that a forecasted transaction will not occur, the company continues to carry the derivative on the Consolidated balance sheets at its fair value, and gains and losses that were accumulated in OCI are recognized immediately in the same line item as they relate to in the Consolidated statements of income. Foreign currency differences arising upon retranslation of financial instruments designated as a hedge of a net investment in a foreign operation are recognized directly in the currency translation differences reserve through OCI, to the extent that the hedge is effective. To the extent that the hedge is ineffective, such differences are recognized in the Consolidated statements of income. |
Description of accounting policy for equity [Text block] | Equity Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from equity. Where the company purchases the company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental transaction costs (net of income taxes), is deducted from equity attributable to the company’s equity holders until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the company’s equity holders. Call options on own shares are treated as equity instruments. Dividends are recognized as a liability in the period in which they are declared and approved by shareholders. The income tax consequences of dividends are recognized when a liability to pay the dividend is recognized. Further information on equity can be found in Equity |
Description of accounting policy for offsetting of financial instruments [text block] | Offsetting and master netting agreements The company presents financial assets and financial liabilities on a gross basis as separate line items in the Consolidated balance sheets. Master netting agreements may be entered into when the company undertakes a number of financial instrument transactions with a single counterparty. Such an agreement provides for a net settlement of all financial instruments covered by the agreement in the event of default or certain termination events associated with any of the transactions. A master netting agreement may create a right to offset that becomes enforceable and affects the realization or settlement of individual financial assets and financial liabilities only following a specified termination event. However, if this contractual right is subject to certain limitations then it does not necessarily provide a basis for offsetting, unless both of the offsetting criteria are met, i.e. there is a legally enforceable right and an intention to settle net or simultaneously. |
Description of accounting policy for property, plant and equipment [text block] | Property, plant and equipment The costs of property, plant and equipment comprise all directly attributable costs (including the cost of material and direct labor). Depreciation is generally calculated using the straight-line method over the useful life of the asset. Gains and losses on the sale of property, plant and equipment are included in Other Business Income. Costs related to repair and maintenance activities are expensed in the period in which they are incurred unless leading to an extension of the original lifetime or capacity. Plant and equipment under finance leases and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. The gain realized on sale and operating leaseback transactions that are concluded based upon market conditions is recognized at the time of the sale in Other Business Income, in the Consolidated statements of income. Further information on property, plant and equipment can be found in Property, plant and equipment |
Description of accounting policy for leases [text block] | Leases The company determines whether an arrangement constitutes or contains a lease at inception, which is based on the substance of the arrangement at the inception of the lease. The arrangement constitutes or contains a lease if fulfillment is dependent on the use of a specific asset and the arrangement conveys a right to use the asset, even if that asset is not explicitly specified in the arrangement. Leases in which the company is the lessee and has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the commencement of the lease at the lower of the fair value of the leased assets or the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges. The interest element of the finance cost is charged to the Consolidated statements of income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The corresponding rental obligations, net of finance charges, are included in other short-term and other non-current liabilities. Leases in which the company is the lessee and in which substantially all risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are recognized in the Consolidated statements of income on a straight-line basis over the term of the lease. |
Description of accounting policy for measuring inventories [text block] | Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include direct labor and fixed and variable production overheads, taking into account the stage of completion and the normal capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of inventories is determined using the first-in, first-out (FIFO) method. Inventory is reduced for the estimated losses due to obsolescence. This reduction is determined for groups of products based on sales in the recent past and/or expected future demand. Further information on inventories can be found in Inventories |
Description of accounting policy for share-based payment transactions [text block] | Share-based payment Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model, further details of which are given in Share-based compensation The grant-date fair value of equity-settled share-based payment awards granted to employees is recognized as personnel expense, with a corresponding increase in equity, over the vesting period of the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the company’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense recognized at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant-date fair value of awards, but the likelihood of the conditions being met is assessed as part of the company’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant-date fair value. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. When an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. The dilutive effect of outstanding options and shares is reflected as additional share dilution in the computation of diluted earnings per share (further details are given in Earnings per share |
Description of accounting policy for finance income and costs [text block] | Financial income and expenses Financial income comprises interest income on funds invested (including financial assets), dividend income, net gains on the disposal of financial assets, net fair value gains on financial assets at fair value through profit or loss, net gains on the remeasurement to fair value of any pre-existing interest in an acquiree, and net gains on foreign exchange impacts that are recognized in the Consolidated statements of income. Interest income is recognized on an accrual basis in the Consolidated statements of income, using the effective interest method. Dividend income is recognized in the Consolidated statements of income on the date that the company’s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date. Financial expenses comprise interest expenses on borrowings, unwinding of the discount on provisions and contingent consideration, losses on disposal of financial assets, net fair value losses on financial assets at fair value through profit or loss, impairment losses recognized on financial assets (other than trade receivables), net interest expenses related to defined-benefit plans and net losses on foreign exchange impacts that are recognized in the Consolidated statements of income. Further information on financial income and expenses can be found in Financial income and expenses |
Description of accounting policy for government grants [text block] | Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions. Government grants relating to costs are deferred and recognized in the Consolidated statements of income as a reduction of the related costs over the period necessary to match them with the costs that they are intended to compensate. Grants related to assets are deducted from the cost of the asset and presented net in the Consolidated balance sheets. |
Description of accounting policy for financial guarantees [text block] | Financial guarantees The company recognizes a liability at the fair value of the obligation at the inception of a financial guarantee contract if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. The guarantee is subsequently measured at the higher of the best estimate of the obligation or the amount initially recognized less, when appropriate, cumulative amortization. |
Description of accounting policy for segment reporting [text block] | Segment information Operating segments are components of the company’s business activities about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Executive Committee of the company). The Executive Committee decides how to allocate resources and assesses performance. Reportable segments comprise the operating segments Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses, Personal Health businesses and Other. Segment accounting policies are the same as the accounting policies applied by the company. |
Description of accounting policy for earnings per share [text block] | Earnings per Share The company presents basic and diluted earnings per share (EPS) data for its common shares. Basic EPS is calculated by dividing the Net income (loss) attributable to shareholders by the weighted average number of common shares outstanding during the period, adjusted for own shares held. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders and the weighted average number of common shares outstanding during the period, adjusted for own shares held, for the effects of all dilutive potential common shares, which comprises forward purchase contracts, restricted shares, performance shares and share options granted to employees. Further information on earnings per share can be found in Earnings per share |
Disclosure of first-time adoption [text block] | New standards and interpretations IFRS accounting standards adopted as from 2018 The company applies, for the first time, IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial instruments. The impact of the adoption of these new standards is disclosed below. Other amendments and interpretations applied for the first time in 2018, but did not have a material impact on the consolidated financial statements of the company. Impact on the financial statements As explained below, IFRS 15 was adopted using the modified retrospective approach and IFRS 9 was adopted retrospectively with the exception of certain aspects of hedge accounting. As a result, for IFRS 15 the reclassifications and adjustments arising from the changes in the company’s accounting policies are not reflected in a restated Consolidated balance sheets as at December 31, 2017, but are recognized in the opening Consolidated balance sheets on January 1, 2018. For IFRS 9, the company has taken an exemption not to restate comparative information for prior periods with respect to classification and measurement requirements. Accordingly, the information presented for 2017 does not generally reflect the requirements of IFRS 9 but rather those of IAS 39. The following tables show the adjustments recognized for each individual Consolidated balance sheets caption. Consolidated balance sheets captions that were not affected by the changes have not been included. The adjustments, by standard, are explained in more detail below. Balance sheet presentation impact of IFRS 15 adoption in millions of EUR Balance sheet captions December 31, 2017 Presentation change 1 January 1, 2018 2 Other non-current liabilities 474 (249) 226 Non-current contract liabilities 249 249 Accrued liabilities 2,319 (791) 1,528 Other current liabilities 1,126 (372) 754 Current contract liabilities 1,163 1,163 1 The amounts in relation to the IFRS 15 presentation change have been reclassified to conform to the 31 December 2018 Consolidated balance sheets classification. 2 Opening balance sheet after IFRS 15 presentation change. Balance sheet impact of IFRS 9 and IFRS 15 adoption in millions of EUR Balance sheet captions January 1, 2018 1 IFRS 1 IFRS 9 January 1, 2018 Current receivables 3,909 1 3,911 Income tax receivable 109 1 110 Other current assets 392 (75) 317 Investments in associates 142 7 149 Deferred tax assets 1,598 (5) 1,593 Current contract liabilities 1,163 (13) 1,150 Non-current contract liabilities 249 (12) 237 Deferred tax liabilities 33 (15) 18 Shareholders' equity 11,999 (29) 11,970 1 Opening balance sheet after IFRS 15 presentation change, before other IFRS 15 and IFRS 9 adjustments. The impact on Retained earnings is as follows: Retained earnings impact of IFRS 9 and IFRS 15 adoption in millions of EUR Retained earnings as of December 31, 2017 8,596 IFRS 15 adjustments Cost of obtaining a contract Capitalized costs of obtaining a contract (75) Deferred tax liability 15 Deferred tax asset 2 Income tax receivable 1 Royalty income Royalty income - deferred revenue 25 Deferred tax assets (7) Current receivables 1 Income tax receivable 1 Investment in associates Investments in associates 7 IFRS 9 adjustments Transfer from financial assets fair value through OCI reserve 4 Opening balance Retained earnings as of January 1, 2018 8,571 The above adjustments are based on the company’s finalized assessments, which do not materially differ from the amounts disclosed in the Annual Report 2017. IFRS 9 Financial Instruments - impact of adoption IFRS 9 Financial Instruments brings together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement. With the exception of certain aspects of hedge accounting, which the company applied prospectively, the company has applied IFRS 9 retrospectively, with the initial application date of January 1, 2018, and with the practical expedients permitted under the standard. In accordance with the transitional provisions included in IFRS 9, comparatives have not been restated. As a result of the adoption of IFRS 9, certain financial assets amounting to EUR 77 million were reclassified from measurement at fair value through other comprehensive income (FVTOCI) to fair value through profit or loss (FVTPL). The related fair value gains of EUR 4 million were transferred from the fair value through OCI reserve to retained earnings as per January 1, 2018. In addition, EUR 47 million of factored trade receivables were transferred from measurement at amortized cost to measurement at FVTOCI. The adoption of IFRS 9 did not result in any further material impact on the Consolidated balance sheets, Consolidated statements of income, Consolidated statements of comprehensive income or the basic and diluted EPS. The effect of the adoption of IFRS 9 on the Consolidated balance sheets and retained earnings is disclosed above. Classification and measurement As per January 1, 2018, the company assessed which business models apply to the financial assets held by the company and has classified its financial instruments into the appropriate IFRS 9 categories. The main effects resulting from this reclassification on the company’s other non-current financial assets are as follows: Impact of IFRS 9 on other non-current financial assets in millions of EUR Other non-current financial assets FVTOCI 1 Amortized cost 2 Held-to-maturity investments FVTP Total Closing balance as of December 31, 2017 - IAS 39 446 114 1 27 587 Reclassify investments from available-for-sale to FVTPL (77) 77 Reclassify held-to-maturity investments to amortized cost 1 (1) Opening balance as of January 1, 2018 - IFRS 9 369 114 104 587 1 Previously reported as available-for-sale financial assets 2 Previously reported as loans and receivables. Certain investments previously accounted for as available-for-sale financial assets (FVTOCI) do not meet the IFRS 9 criteria for classification at FVTOCI or amortized cost, because their cash flows do not represent solely payments of principal and interest, and are therefore measured at FVTPL under IFRS 9. Related fair value gains of EUR 4 million were transferred from the fair value through OCI reserve to retained earnings on January 1, 2018. During 2018, net fair value losses of EUR 3 million relating to these investments were recognized in the Consolidated statements of income. The investments previously accounted for as held-to-maturity financial assets continue to be measured at amortized cost under IFRS 9. In addition to the impact on the classification of Other non-current financial assets, IFRS 9 impacted the classification of certain trade receivables which are part of Current receivables. The business model for factored trade receivables, amounting to EUR 47 million, is to collect and sell, and hence under IFRS 9 these financial assets were reclassified from assets measured at amortized cost to assets measured at FVTOCI. Hedge accounting The company completed updates to its internal documentation and monitoring processes and concluded that all existing hedge relationships previously designated as effective hedging relationships continued to qualify for hedge accounting under IFRS 9. The impact of changes in fair value of foreign exchange forward contracts attributable to forward points and changes in the time value of the option contracts, which under IFRS 9 are deferred in the cash flow hedges reserve within equity, is not material. As at December 31, 2018, a loss of EUR 6 million was included in the cash flow hedges reserve in relation to these changes in fair value of foreign exchange forward contracts attributable to forward points and changes in the time value of the option contracts. Impairment of financial assets The company revised its impairment methodology under IFRS 9 for each of its classes of assets that are subject to the IFRS 9 expected credit loss model. Trade receivables, contract assets and lease receivables The company applies the IFRS 9 simplified approach in measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables, contract assets and lease receivables. The company did not identify a material increase in the loss allowance for trade receivables, contract assets and lease receivables as a result of the adoption. Debt investments All of the company’s other debt investments at amortized cost and FVTOCI are considered to have low credit risk, and the loss allowance recognized during the period was therefore limited to 12 months expected losses. The company considers ‘low credit risk’ for listed bonds to be an investment-grade credit rating with at least one major rating agency. Other instruments are considered to be low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term. The restatement of the loss allowance for debt investments at amortized cost and FVTOCI on transition to IFRS 9 as a result of applying the expected credit risk model was immaterial. While Cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. IFRS 15 Revenue from Contracts with Customers - impact of adoption The company has adopted IFRS 15 Revenue from Contracts with Customers from January 1, 2018, using the modified retrospective approach and has adjusted the cumulative impact of adoption in opening retained earnings as of January 1, 2018. Accordingly, comparatives have not been restated. The standard has only been applied to contracts that were not completed by January 1, 2018. The effect of adoption of IFRS 15 on the Consolidated balance sheets and retained earnings is disclosed above. During 2018, EUR 18,121 million of revenues were recognized under IFRS 15. If IAS 18 had been applied during this period, revenues would have amounted to EUR 18,070 million. The difference relates to the timing of revenue recognition on IP Royalties, as explained below. The impact of the accounting on the costs of obtaining a contract, as also explained below, did not materially affect 2018 results under IFRS 15 compared to IAS 18. Costs of obtaining a contract Under IFRS 15, the incremental costs of obtaining a contract with a customer are recognized as an asset if the entity expects to recover them. The company identified that certain sales commissions paid to third parties and internal employees that are typical of transactions in the segments Diagnosis & Treatment and Connected Care & Health Informatics qualify as incremental costs of obtaining a contract. These costs were mostly paid and capitalized as prepayment upon issuance of sales orders and recognition of revenue related to the sale of goods or rendering of services. Such costs were commonly expensed in line with the revenue recognition pattern of the related goods or services. Due to these sales commissions being largely amortized within a year, the company decided to adopt the practical expedient of expensing sales commissions when incurred. An impact of EUR 75 million was recorded as a retained earnings decrease in equity originating from the asset derecognition upon transition, and a net deferred tax benefit of EUR 17 million was recorded through retained earnings as a consequence. The net impact in equity was EUR 57 million. Royalty income In prior years, the company recognized revenue from intellectual property (IP) royalties, which is normally generated based on a percentage of sales or a fixed amount per product sold, on an accrual basis based on actual or reliably estimated sales made by the licensees. Revenue generated from an agreement with lump-sum consideration was recognized over time based on the contractual terms and substance of the relevant agreement with a licensee. In 2018, under IFRS 15, revenues from the licensing of intellectual property were recognized based on a right to access the intellectual property or a right to use the intellectual property. Under the first option, revenue is recognized over time while under the second option revenue is recognized at a point in time. As a result, this had an impact on revenues originating from the company’s IP royalties with lump-sum considerations that are right-to-use licenses since under IFRS 15 such revenues are recognized in the Consolidated statements of income at an earlier point in time rather than over time, as under the previous methodology. As a result, an amount of EUR 25 million of deferred revenue was recorded as an increase in retained earnings upon transition. Additionally, IP royalties related to an associate had a similar accounting impact; hence an amount of EUR 7 million was recorded as an increase in retained earnings upon transition. A total deferred tax asset of EUR 7 million was released as a consequence. The net impact in equity was EUR 27 million. Presentation The company has changed the presentation of certain amounts in the Consolidated balance sheets to reflect the terminology of IFRS 15. Contract liabilities are presented separately on the Consolidated balance sheets for its current and non-current portion and represent amounts posted in deferred revenue for which the goods or services have not yet been transferred to the customer and amounts have either been received or are due. They were part of Accrued liabilities and Other non-current liabilities as of December 31, 2017. IFRS accounting standards to be adopted from 2019 onwards A number of new standards, amendments to existing standards, and interpretations have been published and are mandatory for the company beginning on or after January 1, 2019, or later periods, and the company has not early-adopted them. Those which may be the most relevant to the company are set out below. Changes to other standards, arising from amendments, interpretations and the annual improvement cycles, are not expected to have a material impact on the company’s financial statements. IFRS 16 Leases IFRS 16 was issued in January 2016 and is endorsed by the EU. It will supersede IAS 17 Leases and a number of lease-related interpretations and will result in almost all leases being recognized on the Consolidated balance sheets, as the distinction between operating and finance leases is removed for lessees. Under the new standard, both an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases. The accounting for lessors will not change significantly for the company. As at the reporting date, the company has identified non-cancellable operating lease commitments of approximately EUR 870 million (undiscounted) which are relevant for IFRS 16 adoption. The company expects to recognize right-of-use assets of approximately EUR 760 million from the identified operating lease commitments, a discounted lease liability of approximately EUR 800 million and deferred tax assets of approximately EUR 5 million on January 1, 2019. In addition, the existing finance lease assets and liabilities determined as per IAS 17 with a carrying value of approximately EUR 330 million each as at December 31, 2018 will be reclassified and added to the right-of-use asset and lease liability determined as per IFRS 16 on January 1, 2019. If the lease portfolio and other parameters remain similar during the year 2019 compared to the status per January 1, 2019, then the impact of IFRS 16 on Income from operations is not expected to be material as the increase in depreciation and financial expense would be largely offset by the decrease in operating lease expense. Similarly, in 2019 operating cash flows are expected to increase and financing cash flows decrease by approximately EUR 150 million as repayment of the principal portion of the lease liabilities will be classified as cash flows from financing activities, while previously the operating lease payments were classified as cash flows from operating activities. The company will adopt the standard as of January 1, 2019. Philips will apply the modified retrospective approach. Therefore, the cumulative effect of adopting IFRS 16 of approximately EUR 35 million will be recognized as an adjustment to the opening balance of retained earnings on January 1, 2019, with no restatement of comparative information. The company will elect to apply the standard to contracts that were previously identified as leases applying IAS 17 and IFRIC 4. The company will therefore not apply the new standard to contracts that were not previously identified as containing a lease applying IAS 17 and IFRIC 4. The company will elect to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application and lease contracts for which the underlying asset is of low value. The company will rely on its assessment of whether leases are onerous applying IAS 37 Provisions, Contingent Liabilities and Contingent Assets and accordingly adjust its right-of-use asset. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies [Abstract] | |
Significant accounting policies (Tables), Balance sheet presentation impact of IFRS 15 adoption [Text Block] | Balance sheet presentation impact of IFRS 15 adoption in millions of EUR Balance sheet captions December 31, 2017 Presentation change 1 January 1, 2018 2 Other non-current liabilities 474 (249) 226 Non-current contract liabilities 249 249 Accrued liabilities 2,319 (791) 1,528 Other current liabilities 1,126 (372) 754 Current contract liabilities 1,163 1,163 1 The amounts in relation to the IFRS 15 presentation change have been reclassified to conform to the 31 December 2018 Consolidated balance sheets classification. 2 Opening balance sheet after IFRS 15 presentation change. |
Significant accounting policies (Tables), Balance sheet impact of IFRS 9 and IFRS 15 adoption [Text Block] | Balance sheet impact of IFRS 9 and IFRS 15 adoption in millions of EUR Balance sheet captions January 1, 2018 1 IFRS 1 IFRS 9 January 1, 2018 Current receivables 3,909 1 3,911 Income tax receivable 109 1 110 Other current assets 392 (75) 317 Investments in associates 142 7 149 Deferred tax assets 1,598 (5) 1,593 Current contract liabilities 1,163 (13) 1,150 Non-current contract liabilities 249 (12) 237 Deferred tax liabilities 33 (15) 18 Shareholders' equity 11,999 (29) 11,970 1 Opening balance sheet after IFRS 15 presentation change, before other IFRS 15 and IFRS 9 adjustments. |
Significant accounting policies (Tables), Retained earnings impact of IFRS 9 and IFRS 15 adoption [Text Block] | Retained earnings impact of IFRS 9 and IFRS 15 adoption in millions of EUR Retained earnings as of December 31, 2017 8,596 IFRS 15 adjustments Cost of obtaining a contract Capitalized costs of obtaining a contract (75) Deferred tax liability 15 Deferred tax asset 2 Income tax receivable 1 Royalty income Royalty income - deferred revenue 25 Deferred tax assets (7) Current receivables 1 Income tax receivable 1 Investment in associates Investments in associates 7 IFRS 9 adjustments Transfer from financial assets fair value through OCI reserve 4 Opening balance Retained earnings as of January 1, 2018 8,571 |
Significant accounting policies (Tables), Impact of IFRS 9 on other non-current financial assets [Text Block] | Impact of IFRS 9 on other non-current financial assets in millions of EUR Other non-current financial assets FVTOCI 1 Amortized cost 2 Held-to-maturity investments FVTP Total Closing balance as of December 31, 2017 - IAS 39 446 114 1 27 587 Reclassify investments from available-for-sale to FVTPL (77) 77 Reclassify held-to-maturity investments to amortized cost 1 (1) Opening balance as of January 1, 2018 - IFRS 9 369 114 104 587 1 Previously reported as available-for-sale financial assets 2 Previously reported as loans and receivables. |
Information by segment and ma_2
Information by segment and main country (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Information by segment and main country [Abstract] | |
Information by segment and main country (Tables), Information on income statements [Text Block] | Philips Group Information on income statements in millions of EUR unless otherwise stated 2016 - 2018 sales sales including intercompany depreciation and amortization 1 Adjusted EBITA 2 2018 Diagnosis & Treatment 7,245 7,364 (302) 838 Connected Care & Health Informatics 3,084 3,126 (176) 341 Personal Health 7,228 7,240 (367) 1,215 Other 564 674 (244) (28) Inter-segment eliminations (282) Philips Group 18,121 18,121 (1,089) 2,366 2017 Diagnosis & Treatment 6,891 6,953 (267) 716 Connected Care & Health Informatics 3,163 3,200 (208) 372 Personal Health 7,310 7,333 (371) 1,221 Other 416 564 (179) (157) Inter-segment eliminations (269) Philips Group 17,780 17,780 (1,025) 2,153 2016 Diagnosis & Treatment 6,686 6,741 (229) 631 Connected Care & Health Informatics 3,158 3,213 (184) 324 Personal Health 7,099 7,119 (385) 1,108 Other 479 641 (179) (142) Inter-segment eliminations (292) Philips Group 17,422 17,422 (976) 1,921 1 Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill 2 For reconciliation Adjusted EBITA, refer to the table below. |
Information by segment and main country (Tables), Reconciliation from net income to Adjusted EBITA [Text Block] | Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR unless otherwise stated 2016 - 2018 Philips Group Diagnosis & Treatment Connected Care & Health Informatics Personal Health Other 2018 Net Income 1,097 Discontinued operations, net of income taxes 213 Income tax expense 193 Investments in associates, net of income taxes 2 Financial expenses 264 Financial income (51) Income from operations 1,719 600 179 1,045 (105) Amortization of intangible assets 347 97 46 126 79 Impairment of goodwill - - EBITA 2,066 696 225 1,171 (27) Restructuring and acquisition-related charges 258 142 59 26 31 Other items 41 - 56 18 (33) Adjusted EBITA 2,366 838 341 1,215 (28) 2017 Net Income 1,870 Discontinued operations, net of income taxes (843) Income tax expense 349 Investments in associates, net of income taxes 4 Financial expenses 263 Financial income (126) Income from operations 1,517 488 206 1,075 (252) Amortization of intangible assets 260 55 44 135 26 Impairment of goodwill 9 9 EBITA 1,787 543 250 1,211 (217) Restructuring and acquisition-related charges 316 151 91 11 64 Other items 50 22 31 (3) Adjusted EBITA 2,153 716 372 1,221 (157) 2016 Net Income 1,491 Discontinued operations, net of income taxes (660) Income tax expense 203 Investments in associates, net of income taxes (11) Financial expenses 507 Financial income (65) Income from operations 1,464 546 275 953 (310) Amortization of intangible assets 242 48 46 139 9 Impairment of goodwill 1 1 EBITA 1,707 594 322 1,092 (301) Restructuring and acquisition-related charges 94 37 14 16 27 Other items 120 (12) 132 Adjusted EBITA 1,921 631 324 1,108 (142) |
Information by segment and main country (Tables), Main countries [Text Block] | Philips Group Main countries in millions of EUR 2016 - 2018 sales 1 tangible and intangible assets 2 2018 Netherlands 510 1,666 United States 6,050 9,493 China 2,380 353 Japan 1,045 491 Germany 1,032 263 France 519 30 South Korea 498 3 Other countries 6,087 1,506 Total main countries 18,121 13,805 2017 Netherlands 414 1,154 United States 6,084 8,408 China 2,322 959 Japan 1,059 457 Germany 1,011 270 France 530 33 India 425 100 Other countries 5,935 1,263 Total main countries 17,780 12,644 2016 Netherlands 393 1,007 United States 5,948 9,425 China 2,210 1,167 Japan 1,103 492 Germany 965 201 France 513 45 India 399 121 Other countries 5,891 2,147 Total main countries 17,422 14,605 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, 2018 | |
Discontinued operations and assets classified as held for sale [Abstract] | |
Discontinued operations and assets classified as held for sale (Tables), Discontinued operations, net of income taxes [Text Block] | Philips Group Discontinued operations, net of income taxes in millions of EUR 2016 - 2018 2016 2017 2018 Signify 244 896 (198) The combined Lumileds and Automotive businesses 282 (29) 12 Other 134 (24) (27) Discontinued operations, net of income taxes 660 843 (213) |
Discontinued operations and assets classified as held for sale (Tables), Results of Signify [Text Block] | Results of Signify in millions of EUR 2016 - 2018 2016 2017 2018 Sales 7,094 6,319 Costs and expenses (6,726) (5,776) (18) Result on the deconsolidation of discontinued operations 538 Fair value adjustment retained interest (104) (218) Dividend income 32 Income before tax 368 977 (204) Income tax expense (124) (150) 7 Income tax on the deconsolidation of discontinued operations 61 US Tax Cuts and Jobs Act 8 Results from discontinued operations 244 896 (198) |
Discontinued operations and assets classified as held for sale (Tables), Results of combined Lumileds and Automotive businesses [Text Block] | Philips Group Results of combined Lumileds and Automotive businesses in millions of EUR 2016 - 2018 2016 2017 2018 Sales 1,711 804 Costs and expenses (1,376) (630) 5 Result on the sale of discontinued operations (98) 8 Income before tax 335 76 13 Income tax expense (53) (25) (1) Income tax on the sale of discontinued operations 26 US Tax Cuts and Jobs Act 1 (107) Results from discontinued operations 282 (29) 12 1 For further details related to US Tax Cuts and Jobs Act please refer to Income Taxes |
Discontinued operations and assets classified as held for sale (Tables), Discontinued operations cash flows [Text Block] | Discontinued operations cash flows in millions of EUR 2016 -2018 2016 2017 2018 Cash flows from operating activities 1,037 350 (15) Cash flows from investing activities (112) 856 662 Cash flows from financing activities 1,226 (144) Total discontinued operations cash flows 2,151 1,063 647 |
Acquisitions and divestments (T
Acquisitions and divestments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions and divestments [Abstract] | |
Acquisitions and divestments (Tables), Opening Balance sheet [Text Block] | EPD Opening Balance sheet in millions of EUR 2018 2018 at acquisition date Goodwill 262 Intangible assets excluding goodwill 227 Property, plant and equipment - Deferred tax assets - Inventories - Receivables and other current assets - Cash 2 Accounts payable and other payables (2) Deferred tax liabilities - Provision for contingent consideration (239) Total assets and liabilities 250 Financed by equity (250) |
Acquisitions and divestments (Tables), Opening Balance sheet as of acquisition date [Text Block] | Spectranetics Opening Balance sheet as of acquisition date in millions of EUR 2018 Goodwill 1,266 Intangible assets excluding goodwill 670 Property, plant and equipment 64 Deferred tax assets 136 Inventories 35 Receivables and other current assets 42 Cash 53 Accounts payable and other payables (53) Deferred tax liabilities (253) Total assets and liabilities 1,960 Financed by equity (1,960) |
Interests in entities (Tables)
Interests in entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interests in entities [Abstract] | |
Interests in entities (Tables), Interests in group companies [Text Block] | Philips Group Interests in group companies in alphabetical order 2018 Legal entity name Principal country of business Philips (China) Investment Company, Ltd. China Philips Medizin Systeme Böblingen GmbH Germany Philips GmbH Germany Philips Consumer Lifestyle B.V. Netherlands Philips Medical Systems Nederland B.V. Netherlands Philips Ultrasound, Inc. United States Philips Oral Healthcare, LLC United States Philips North America LLC United States Respironics, Inc. United States |
Income from operations (Tables)
Income from operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income from operations [Abstract] | |
Income from operations (Tables), Sales and costs by nature [Text Block] | Philips Group Sales and costs by nature in millions of EUR 2016 - 2018 2016 2017 2018 Sales 17,422 17,780 18,121 Costs of materials used (5,030) (4,918) (4,826) Employee benefit expenses (5,298) (5,824) (5,827) Depreciation and amortization (976) (1,025) (1,089) Shipping and handling (545) (602) (605) Advertising and promotion (915) (939) (937) Lease expense 1 (223) (227) (225) Other operational costs 2 (2,963) (2,804) (2,948) Other business income (expenses) (6) 76 55 Income from operations 1,464 1,517 1,719 1 Lease expense includes EUR 32 million (2017: EUR 38 million, 2016: EUR 30 million) of other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor 2 Other operational costs contain items which are dissimilar in nature and individually insignificant in amount to disclose separately. These costs contain among others expenses for outsourcing services, mainly in IT and HR, 3rd party workers, consultants, warranty, patents, costs for travelling, external legal services and EUR 81 million government grants recognized in 2018 (2017: EUR 90 million, 2016: EUR 79 million). The grants mainly relate to research and development activities and business development. |
Income from operations (Tables), Sales composition [Text Block] | Philips Group Sales composition in millions of EUR 2016 - 2018 2016 2017 2018 Goods 13,568 13,974 14,056 Services 3,478 3,477 3,325 Royalties 375 329 402 Total sales from contracts with customers 17,784 Other sources 1 338 Sales 17,422 17,780 18,121 1 Other sources mainly includes leases |
Income from operations (Tables), Disaggregation of Sale per segment [Text Block] | Philips Group Disaggregation of Sale per segment in millions of EUR 2016 - 2018 2016 2017 2018 Total sales Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Diagnosis & Treatment 6,686 6,891 4,883 2,328 7,212 34 7,245 Connected Care & Health Informatics 3,158 3,163 2,124 914 3,038 46 3,084 Personal Health 7,099 7,310 6,952 18 6,969 258 7,228 Other 479 416 310 254 564 - 564 Philips Group 17,422 17,780 14,270 3,514 17,784 338 18,121 1 Sales from other sources mainly includes leases 2 Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Income from operations (Tables), Disaggregation of Sales per geographical cluster [Text Block] | Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2016 - 2018 2016 2017 2018 Total sales Total sales Sales at a point in time Sales over time Total sales from contracts with customers Sales from other sources 1 Total sales 2 Western Europe 3,756 3,802 3,174 781 3,955 35 3,990 North America 6,279 6,409 4,616 1,696 6,311 27 6,338 Other mature geographies 1,792 1,707 1,280 339 1,619 273 1,892 Total mature geographies 11,826 11,918 9,070 2,815 11,885 335 12,221 Growth geographies 5,596 5,862 5,200 699 5,898 2 5,901 Sales 17,422 17,780 14,270 3,514 17,784 338 18,121 1 Sales from other sources mainly includes leases 2 Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Income from operations (Tables), Employee benefit expenses [Text Block] | Philips Group Employee benefit expenses in millions of EUR 2016 - 2018 2016 2017 2018 Salaries and wages 1 4,422 4,856 4,849 Post-employment benefits costs 279 347 351 Other social security and similar charges: - Required by law 489 514 524 - Voluntary 108 108 103 Employee benefit expenses 5,298 5,824 5,827 1 Salaries and wages includes EUR 102 million (2017: EUR 122 million, 2016: EUR 95 million) of share-based compensation expenses. |
Income from operations (Tables), Employees [Text Block] | Philips Group Employees in FTEs 2016 - 2018 2016 2017 2018 Production 27,899 27,697 30,774 Research & development 9,087 9,787 10,700 Other 24,565 26,314 26,175 Employees 61,552 63,798 67,649 3rd party workers 8,050 8,098 7,239 Continuing operations 69,602 71,895 74,888 Discontinued operations 43,971 43,497 Philips Group 113,572 115,392 74,888 |
Income from operations (Tables), Employees per geographical location [Text Block] | Philips Group Employees per geographical location in FTEs 2016 - 2018 2016 2017 2018 Netherlands 11,199 11,308 11,427 Other countries 58,403 60,587 63,460 Continuing operations 69,602 71,895 74,888 Discontinued operations 43,971 43,497 Philips Group 113,572 115,392 74,888 |
Income from operations (Tables), Depreciation and amortization [Text Block] | Philips Group Depreciation and amortization 1 in millions of EUR 2016 - 2018 2016 2017 2018 Depreciation of property, plant and equipment 458 437 438 Amortization of software 49 50 64 Amortization of other intangible assets 244 260 347 Amortization of development costs 225 277 240 Depreciation and amortization 976 1,025 1,089 1 Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations (Tables), Agreed fees [Text Block] | Philips Group Agreed fees 2016 - 2018 2016 2017 2018 EY NL 1 EY Network Total EY NL 1 EY Network Total EY NL 1 EY Network Total Audit fees 8.8 9.6 18.4 9.0 8.9 17.9 6.5 4.9 11.3 -consolidated financial statements 8.8 4.6 13.4 9.0 4.4 13.4 6.5 2.3 8.8 -statutory financial statements 5 5.0 0.0 4.5 4.5 2.5 2.5 Audit-related fees 2 1.5 0.8 2.3 0.8 0.7 1.5 0.5 0.3 0.9 -Acquisitions and divestments 0.8 0.1 0.9 0.0 0.0 0.0 -Sustainability assurance 0.7 0.0 0.7 0.7 0.0 0.7 0.4 0.4 -Other 0.7 0.7 0.1 0.7 0.8 0.1 0.3 0.5 Fees 10.3 10.4 20.7 9.7 9.6 19.4 7.0 5.2 12.2 1 Ernst & Young Accountants LLP 2 Also known as Assurance fees |
Income from operations (Tables), Other business income (expenses) [Text Block] | Philips Group Other business income (expenses) in millions of EUR 2016 - 2018 2016 2017 2018 Result on disposal of businesses: - income 1 15 45 - expense (4) (5) - Result on disposal of fixed assets: - income 4 96 20 - expense (1) (1) (1) Result on other remaining businesses: - income 13 41 23 - expense (17) (62) (32) Impairment of goodwill 1 (1) (9) Other business income (expense) (6) 76 55 Total other business income 17 152 88 Total other business expense (23) (76) (33) 1 Further information on goodwill movement can be found in Goodwill |
Financial income and expenses (
Financial income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial income and expenses [Abstract] | |
Financial income and expenses (Tables), Financial income and expenses [Text Block] | Philips Group Financial income and expenses in millions of EUR 2016 - 2018 2016 201 2018 Interest income 43 40 31 Interest income from loans and receivables 15 12 8 Interest income from cash and cash equivalents 28 28 22 Dividend income from financial assets 4 64 2 Net gains from disposal of financial assets 3 1 6 Net change in fair value of financial assets at fair value through profit or loss 7 Other financial income 15 14 12 Financial income 65 126 51 Interest expense (342) (222) (188) Interest on debt and borrowings (288) (177) (158) Finance charges under finance lease contract (7) (8) (7) Interest expenses - pensions (48) (37) (23) Provision-related accretion and interest 44 (22) (15) Net foreign exchange losses (1) (2) (2) Impairment loss of financial assets (24) (2) - Net change in fair value of financial assets at fair value through profit or loss (4) (1) Net change in fair value of financial liabilities at fair value through profit or loss Other financial expenses (180) (15) (58) Financial expense (507) (263) (264) Financial income and expenses (442) (137) (213) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income taxes [Abstract] | |
Income taxes (Tables), Income tax expense [Text Block] | Philips Group Income tax expense in millions of EUR 2016 - 2018 2016 2017 2018 Netherlands 137 929 636 Foreign 886 451 869 Income before taxes of continuing operations 1 1,023 1,381 1,505 Netherlands: Current tax (expense) benefit 10 (15) (25) Deferred tax (expense) benefit (95) (150) 16 Total tax (expense) benefit of continuing operations (Netherlands) (85) (165) (9) Foreign: Current tax (expense) benefit (155) (258) (289) Deferred tax (expense) benefit 37 73 105 Total tax (expense) benefit of continuing operations (foreign) (118) (184) (184) Income tax expense of continuing operations (203) (349) (193) 1 Income before tax excludes the result of investments in associates. |
Income taxes (Tables), Current income tax expense [Text Block] | Philips Group Current income tax expense in millions of EUR 2016 - 2018 2016 2017 2018 Current year tax (expense) benefit (165) (275) (318) Prior year tax (expense) benefit 20 3 4 Current tax (expense) (145) (272) (314) |
Income taxes (Tables), Deferred income tax expense [Text Block] | Philips Group Deferred income tax expense In millions of EUR 2016 - 2018 2016 2017 2018 Changes to recognition of tax loss and credit carry forwards (37) 23 (2) Changes to recognition of temporary differences 31 35 4 Prior year tax (1) 6 15 Tax rate changes 5 (72) (26) Origination and reversal of temporary differences, tax losses and tax credits (56) (69) 130 Deferred tax (expense) benefit (58) (77) 121 |
Income taxes (Tables), Effective income tax rate [Text Block] | Philips Group Effective income tax rate in % 2016 - 2018 2016 2017 2018 Weighted average statutory income tax rate in % 23.3 24.5 24.9 Recognition of previously unrecognized tax loss and credit carryforwards (1.9) (2.3) (0.4) Unrecognized tax loss and credit carryforwards 5.5 0.6 0.5 Changes to recognition of temporary differences (3.1) (2.6) (0.3) Non-taxable income and tax incentives (8.2) (9.8) (11.9) Non-deductible expenses 9.3 6.4 3.7 Withholding and other taxes 1.2 4.0 4.5 Tax rate changes (0.5) 5.2 1.8 Prior year tax (1.8) (0.6) (1.3) Tax expenses (benefit) due to other tax liabilities (2.6) (1.7) (8.6) Others, net (1.3) 1.5 (0.1) Effective income tax rate 19.9 25.3 12.8 |
Income taxes (Tables), Deferred tax assets and liabilities [Text Block] | Philips Group Deferred tax assets and liabilities in millions of EUR 2018 Balance as of January 1, 2018 recognized in income statement other 1 Balance as of December 31, 2018 Assets Liabilities Intangible assets (383) 299 (78) (162) 90 (252) Property, plant and equipment 23 (13) 2 12 32 (20) Inventories 231 18 8 257 265 (8) Other assets 74 (38) 15 50 77 (27) Pensions and other employee benefits 265 (17) 19 267 269 (2) Other liabilities 536 (137) 30 428 537 (109) Deferred tax assets on tax loss carryforwards 819 11 (6) 824 824 - Set-off deferred tax positions (265) 265 Net deferred tax assets 1,565 121 (10) 1,676 1,828 (152) 1 Other includes the movements of assets and liabilities recognized in OCI, which includes foreign currency translation differences, acquisitions and divestments. Philips Group Deferred tax assets and liabilities in millions of EUR 2017 Balance as of January 1, 2017 recognized in income statement Transfer to assets held for sale other 1 Balance as of December 31, 2017 Assets Liabilities Intangible assets (676) 549 (28) (228) (383) 423 (806) Property, plant and equipment 10 15 (2) 23 39 (16) Inventories 347 (34) (52) (29) 231 235 (4) Other assets 138 7 (82) 12 74 96 (22) Pensions and other employee benefits 597 (126) (149) (57) 265 265 - Other liabilities 989 (288) (8) (158) 536 596 (61) Deferred tax assets on tax loss carryforwards 1,288 (201) (125) (144) 819 819 - Set-off deferred tax positions (876) 876 Net deferred tax assets 2,692 (77) (444) (606) 1,565 1,598 (33) 1 Other includes the movements of assets and liabilities recognized in OCI, which includes foreign currency translation differences and acquisitions, as well as the effects of US Tax Cuts and Jobs Act. |
Income taxes (Tables), Expiry years of net operating loss and credit carryforwards [Text Block] | Philips Group Expiry years of net operating loss and credit carryforwards in millions of EUR Total Balance as of December 31, 2017 Unrecognized balance as of December 31, 2017 Total Balance as of December 31, 2018 Unrecognized balance as of December 31, 2018 Within 1 year 3 3 2 1 1 to 2 years 5 2 3 1 2 to 3 years 15 6 16 4 3 to 4 years 14 2 1,911 1,906 4 to 5 years 1,843 1,809 18 6 Later 2,134 410 2,312 36 Unlimited 1,812 1,118 1,728 1,123 Total 5,827 3,351 5,990 3,077 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Earnings per share (Tables), Earnings per share [Text Block] | Philips Group Earnings per share in millions of EUR unless otherwise stated 1 2016 - 2018 2016 2 2017 2 2018 Income from continuing operations 831 1,028 1,310 Income (loss) attributable to non-controlling interest, from continuing operations 4 11 7 Income from continuing operations attributable to shareholders 826 1,017 1,303 Income from Discontinued operations 660 843 (213) Income (loss) attributable to non-controlling interest, from Discontinued operations 38 203 Income from Discontinued operations attributable to shareholders 622 639 (213) Net income attributable to shareholders 1,448 1,657 1,090 Weighted average number of common shares outstanding (after deduction of treasury shares) during the year 918,015,863 928,797,650 922,987,190 Plus incremental shares from assumed conversions of: Options 2,456,616 3,161,267 2,007,703 Performance shares 6,985,509 10,757,785 8,632,652 Restricted share rights 1,331,163 2,008,162 2,223,382 Forward contracts 407,193 Dilutive potential common shares 10,773,289 16,334,406 12,863,738 Diluted weighted average number of shares (after deduction of treasury shares) during the year 928,789,152 945,132,056 935,850,928 Basic earnings per common share in EUR Income from continuing operations attributable to shareholders 0.90 1.10 1.41 Income from Discontinued operations attributable to shareholders 0.68 0.69 (0.23) Net income attributable to shareholders 1.58 1.78 1.18 Diluted earnings per common share in EUR 3 4 Income from continuing operations attributable to shareholders 0.89 1.08 1.39 Income from Discontinued operations attributable to shareholders 0.67 0.68 (0.23) Net income attributable to shareholders 1.56 1.75 1.16 Dividend distributed per common share in euros 0.80 0.80 0.80 1 Shareholders in this table refers to shareholders of Koninklijke Philips N.V. 2 During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies 3 In 2016, 9 million securities that could potentially dilute basic EPS were not included in the computation of dilutive EPS because the effect would have been antidilutive for the periods presented. 4 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, 2018 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment (Tables), Property, plant and equipment [Text Block] | Philips Group Property, plant and equipment in millions of EUR 2018 land and buildings machinery and installations other equipment prepayments and construction in progress total Balance as of January 1, 2018 Cost 1,111 1,708 1,449 140 4,408 Accumulated depreciation (527) (1,217) (1,074) (2,818) Book value 584 491 376 140 1,591 Change in book value: Capital expenditures 20 126 64 337 546 Assets available for use 68 99 108 (275) - Acquisitions - (5) 7 - 2 Depreciation (56) (191) (162) (409) Impairments (5) (13) (12) - (30) Translations differences and other 11 (2) 4 - 13 Total changes 37 13 7 63 121 Balance as of December 31, 2018 Cost 1,193 1,669 1,523 203 4,588 Accumulated depreciation (572) (1,164) (1,140) (2,876) Book value 621 504 383 203 1,712 Philips Group Property, plant and equipment in millions of EUR 2017 land and buildings machinery and installations other equipment prepayments and construction in progress total Balance as of January 1, 2017 Cost 1,766 3,222 1,897 179 7,064 Accumulated depreciation (912) (2,546) (1,451) (4,909) Book value 854 676 446 179 2,155 Change in book value: Capital expenditures 17 128 86 320 551 Assets available for use 63 117 129 (309) - Disposals and sales - 71 3 74 Depreciation (60) (205) (169) (434) Impairments (1) (32) (11) - (44) Reclassifications 39 (47) 9 3 4 Transfer (to) from assets classified as held for sale (284) (186) (82) (44) (596) Translations differences and other (44) (32) (35) (9) (120) Total changes (270) (185) (70) (39) (564) Balance as of December 31, 2017 Cost 1,111 1,708 1,449 140 4,408 Accumulated depreciation (527) (1,217) (1,074) (2,818) Book value 584 491 376 140 1,591 |
Property, plant and equipment (Tables), Useful lives of property, plant and equipment [Text Block] | Philips Group Useful lives of property, plant and equipment in years Buildings from 5 to 50 years Machinery and installations from 3 to 20 years Other equipment from 1 to 10 years |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill [Abstract] | |
Goodwill (Tables), Goodwill [Text Block] | Philips Group Goodwill in millions EUR 2017 - 2018 2017 2018 Balance as of January 1: Cost 11,151 9,074 Impairments (2,253) (1,343) Book value 8,898 7,731 Changes in book value: Acquisitions 1,548 465 Divestments and transfers to assets classified as held for sale (1,878) (3) Translation differences and other (836) 310 Balance as of December 31: Cost 9,074 9,908 Impairments (1,343) (1,405) Book value 7,731 8,503 |
Goodwill (Tables), Goodwill allocated to the cash-generating units [Text Block] | Philips Group Goodwill allocated to the cash-generating units in millions of EUR 2017 - 2018 2017 2018 Image-Guided Therapy 2,242 2,357 Patient Care & Monitoring Solutions 1,349 Monitoring & Analytics 1,354 Sleep & Respiratory Care 1,819 1,925 Other (units carrying a non-significant goodwill balance) 2,321 2,867 Book value 7,731 8,503 |
Goodwill (Tables), Key assumptions [Text Block] | Philips Group Key assumptions in % 2018 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 8.1 5.2 2.3 9.3 Monitoring & Analytics 6.5 4.0 2.3 9.9 Sleep & Respiratory Care 8.4 4.8 2.3 10.6 1 Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2 Also referred to later in the text as compound long-term sales growth rate 3 The historical long-term growth rate is only applied to the first year after the 4 year extrapolation period, after which no further growth is assumed for the terminal value calculation Philips Group Key assumptions in % 2017 compound sales growth rate 1 initial forecast period extra-polation period 2 used to calculate terminal value 3 pre-tax discount rates Image-Guided Therapy 5.3 4 2.3 10.9 Patient Care & Monitoring Solutions 3.8 4.8 2.3 12.3 Sleep & Respiratory Care 7.2 5.6 2.3 12.1 1 Compound sales growth rate is the annualized steady nominal growth rate over the forecast period 2 Also referred to later in the text as compound long-term sales growth rate 3 The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation |
Intangible assets excluding g_2
Intangible assets excluding goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets excluding goodwill [Abstract] | |
Intangible assets excluding goodwill (Tables), Intangible assets excluding goodwill [Text Block] | Philips Group Intangible assets excluding goodwill in millions of EUR 2018 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2018 Cost 670 2,342 1,985 1,848 487 605 105 8,042 Amortization/ impairments (392) (1,338) (1,161) (1,262) (51) (431) (84) (4,720) Book value 278 1,004 824 586 436 174 21 3,322 Changes in book value: Additions: Purchases 7 14 92 92 1 205 Internally generated assets 203 203 Assets available for use 256 (256) Acquisitions 11 17 330 - 56 415 Amortization (34) (114) (116) (221) (59) (4) (549) Impairments (52) (16) (9) (16) (1) (5) (2) (101) Translation differences and other 3 36 27 15 8 2 3 94 Total changes (72) (70) 246 34 45 30 53 267 Balance as of December 31, 2018 Cost 689 2,421 2,400 2,103 532 684 168 8,997 Amortization/ impairments (484) (1,488) (1,330) (1,483) (51) (480) (93) (5,408) Book Value 205 934 1,070 621 481 204 75 3,589 Philips Group Intangible assets excluding goodwill in millions of EUR 2017 brand names customer relationships technology product development product development construction in progress software other total Balance as of January 1, 2017 Cost 1,088 3,429 2,074 1,899 578 580 134 9,782 Amortization/ impairments (633) (2,188) (1,491) (1,362) (36) (421) (99) (6,230) Book value 455 1,241 583 537 542 159 34 3,552 Changes in book value: Additions: Purchases - 23 149 86 3 261 Internally generated assets 189 189 Assets available for use 363 (363) Acquisitions 7 431 470 2 16 926 Amortization (40) (142) (100) (213) - (52) (3) (550) Impairments (12) (43) (27) (1) (83) Divestments and transfers to assets classified as held for sale (120) (438) (103) (23) (11) (19) (6) (721) Translation differences (24) (89) (37) (35) (43) (1) (23) (252) Total changes (178) (238) 241 49 (106) 15 (13) (230) Balance as of December 31, 2017 Cost 670 2,342 1,985 1,848 487 605 105 8,042 Accumulated amortization (392) (1,338) (1,161) (1,262) (51) (431) (84) (4,720) Book Value 278 1,004 824 586 436 174 21 3,322 |
Intangible assets excluding goodwill (Tables), Expected useful lives of intangible assets excluding goodwill [Text Block] | Philips Group Expected useful lives of intangible assets excluding goodwill in years Brand names 2-20 Customer relationships 2-25 Technology 3-20 Other 1-10 Software 1-10 Product development 3-7 |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other financial assets [Abstract] | |
Other financial assets (Tables), Other non-current financial assets [Text Block] | Philips Group Other non-current financial assets in millions of EUR 2018 Non-current financial assets at FVTP&L Non-current financial assets at FVTOCI Non-current financial assets at Amortized cost Total Balance as of January 1, 2018 1 104 369 114 587 Changes: Acquisitions/additions 30 1 14 45 Sales/redemptions/reductions (20) (18) (78) (116) Value adjustment through OCI - (164) (164) Value adjustment through P&L (2) - (1) Translation differences and other 2 12 (4) 10 Reclassifications 2 (2) - - Balance as of December 31, 2018 116 198 46 360 1 Refer to IFRS 9 disclosure in Significant accounting policies note for the impact of IFRS 9 on 2018 opening balance. Philips Group Other non-current financial assets in millions of EUR 2017 available-for-sale financial assets loans and receivables held-to-maturity investments financial assets at fair value through profit or loss total Balance as of January 1, 2017 172 134 2 27 335 Changes: Reclassifications (1) 2 - 1 2 Acquisitions/additions 368 5 - - 374 Sales/redemptions (23) (8) - (3) (34) Impairment (1) - (1) Value adjustments (46) - 8 (39) Translation differences and other (24) (20) (1) (6) (50) Balance as of December 31, 2017 446 114 1 27 587 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Inventories (Tables), Inventories [Text Block] | Philips Group Inventories in millions of EUR 2017 - 2018 2017 2018 Raw materials and supplies 715 876 Work in process 358 366 Finished goods 1,280 1,432 Inventories 2,353 2,674 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Receivables (Tables), Accounts receivables-net [Text Block] | Philips Group Accounts receivables-net in millions of EUR 2017 - 2018 2017 2018 Diagnosis & Treatment 1,489 1,601 Connected Care & Health Informatics 706 723 Personal Health 1,341 1,411 Other 72 70 Accounts receivable-net 3,609 3,805 |
Receivables (Tables), Aging analysis [Text Block] | Philips Group Aging analysis in millions of EUR 2017 - 2018 2017 2018 current 3,046 3,222 overdue 1-30 days 256 228 overdue 31-180 days 242 270 overdue > 180 days 63 85 Accounts receivable-net 3,609 3,805 |
Receivables (Tables), Allowance for accounts receivable [Text Block] | Philips Group Allowance for accounts receivable in millions of EUR 2016 - 2018 20 2017 201 Balance as of January 1 301 318 215 Additions charged to expense 76 41 28 Deductions from allowance 1 (64) (36) (28) Transfer to assets held for sale (92) Other movements 5 (16) (21) Balance as of December 31 318 215 194 1 Write-offs for which an allowance was previously provided. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [abstract] | |
Equity (Tables), Outstanding number of shares [Text Block] | Philips Group Outstanding number of shares in number of shares 2016 - 2018 2016 2017 2018 Balance as of January 1 917,103,586 922,436,563 926,191,723 Dividend distributed 17,344,462 11,264,163 9,533,223 Purchase of treasury shares (25,193,411) (19,841,595) (31,993,879) Re-issuance of treasury shares 13,181,926 12,332,592 10,453,020 Balance as of December 31 922,436,563 926,191,723 914,184,087 |
Equity (Tables), Employee option and share plan transactions [Text Block] | Philips Group Employee option and share plan transactions 2016 - 2018 2016 2017 2018 Shares acquired 8,601,426 15,222,662 8,226,101 Average market price EUR 24.73 EUR 31.81 EUR 32.59 Amount paid EUR 213 million EUR 484 million EUR 268 million Shares delivered 13,181,926 12,332,592 10,453,020 Average price (FIFO) EUR 25.86 EUR 27.07 EUR 32.66 Cost of delivered shares EUR 341 million EUR 334 million EUR 341 million Total shares in treasury at year-end 7,208,301 10,098,371 7,871,452 Total cost EUR 181 million EUR 331 million EUR 258 million |
Equity (Tables), Share capital transactions [Text Block] | Philips Group Share capital transactions 2016 - 2018 2016 2017 2018 Shares acquired 16,591,985 4,618,933 23,767,778 Average market price EUR 23.84 EUR 32.47 EUR 32.58 Amount paid EUR 396 million EUR 150 million EUR 774 million Cancellation of treasury shares (shares) 18,829,985 24,246,711 Cancellation of treasury shares (EUR) EUR 450 million EUR 783 million Total shares in treasury at year-end 4,618,933 4,140,000 Total cost EUR 150 million EUR 141 million |
Equity (Tables), 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 2016 - 2018 2016 2017 2018 Long-term debt 4,021 4,044 3,427 Short-term debt 1,585 672 1,394 Total debt 5,606 4,715 4,821 Cash and cash equivalents 2,334 1,939 1,688 Net debt 3,272 2,776 3,132 Shareholders' equity 12,546 11,999 12,088 Non-controlling interests 907 24 29 Group equity 13,453 12,023 12,117 Net debt and group equity ratio 20:80 19:81 21:79 |
Equity (Tables), Adjusted income from continuing operations attributable to shareholders [Text Block] | Philips Group Adjusted income from continuing operations attributable to shareholders 1 2018 2018 Net income 1,097 Less: Discontinued operations, net of income taxes 213 Income from continuing operations 1,310 Continuing operations non-controlling interests (7) Income from continuing operations attributable to shareholders 1,303 Adjustments for: Amortization of acquired intangible assets 347 Restructuring costs and acquisition-related charges 258 Other items 41 Net finance expenses 57 Tax impact of adjusted items (365) Adjusted Income from continuing operations attributable to shareholders 1 1,643 1 Shareholders in this table refers to shareholders of Koninklijke Philips N.V. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Debt (Tables), Long-term debt [Text Block] | Philips Group Long-term debt in millions of EUR unless otherwise stated 2018 amount outstanding in 2018 Current portion Non-current portion Between 1 and 5 years amount due after 5 years average remaining term (in years) average rate of interest USD bonds 1,303 1,303 1,303 18.1 6.3% EUR bonds 1,988 500 1,488 497 991 5.0 0.7% Forward contracts 807 618 188 188 0.8 Finance leases 330 94 236 190 46 3.6 2.9% Bank borrowings 211 211 6 205 6.2 0.3% Other long-term debt 18 18 - - - 1.1 1.6% Long-term debt 4,657 1,230 3,427 882 2,545 7.9 2.3% Philips Group Long-term debt in millions of EUR unless otherwise stated 2017 amount outstanding in 2017 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 2,137 2,137 833 1,305 13.3 5.4% EUR bonds 997 997 501 496 3.7 0.3% Forward contracts 970 394 576 576 1.2 Finance leases 281 87 195 170 24 4.8 3.4% Bank borrowings 190 52 138 138 2.1 1.3% Other long-term debt 20 19 1 1 - 1.1 0.9% Long-term debt 4,595 552 4,044 2,218 1,825 7.6 2.8% |
Debt (Tables), Unsecured Bonds [Text Block] | Philips Group Unsecured Bonds in millions of EUR unless otherwise stated 2017 - 2018 effective rate 2017 2018 Unsecured EUR Bonds Due 9/06/2023; 1/2% 0.634% 500 500 Due 9/06/2019; 3M Euribor +20bps 500 500 Due 5/02/2024; 3/4% 0.861% 500 Due 5/02/2028; 1 3/8% 1.523% 500 Unsecured USD Bonds Due 5/15/25; 7 3/4% 7.429% 53 55 Due 6/01/26; 7 1/5% 6.885% 114 119 Due 5/15/25; 7 1/8% 6.794% 70 74 Due 11/03/38; 6 7/8% 7.210% 668 636 Due 3/15/22; 3 3/4% 1 3.906% 837 Due 3/15/42; 5% 5.273% 418 438 Adjustments 2 (26) (31) Unsecured Bonds 3,134 3,291 1 In April 2018, Philips completed the early redemption of all the 3.750% USD bonds due 2022 with an aggregate principal amount of USD 1 billion. 2 Adjustments related to both EUR and USD bonds and concern bond discounts and premium, transaction costs and fair value adjustments for interest rate derivatives. |
Debt (Tables), Finance lease liabilities [Text Block] | Philips Group Finance lease liabilities in millions of EUR 2017 - 2018 2017 2018 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 93 6 87 100 6 94 Between one and five years 184 14 170 206 16 190 More than five years 29 4 24 52 6 46 Finance lease 306 24 281 357 28 330 |
Debt (Tables), Short-term debt [Text Block] | Philips Group Short-term debt in millions of EUR 2017 - 2018 2017 2018 Short-term bank borrowings 71 76 Forward contracts 49 88 Other short-term loans Current portion of long-term debt 552 1,230 Short-term debt 672 1,394 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provisions [abstract] | |
Provisions (Tables), Provisions [Text Block] | Philips Group Provisions in millions of EUR 2017 - 2018 2017 2018 long-term short-term total long-term short-term total Post-employment benefit (see note 20) 973 973 835 835 Product warranty 44 157 201 37 153 190 Environmental provisions 140 19 160 124 20 144 Restructuring-related provisions 25 87 112 45 68 114 Litigation provisions 26 24 50 17 9 26 Other provisions 451 113 564 730 112 842 Provisions 1,659 400 2,059 1,788 363 2,151 |
Provisions (Tables), Provisions for assurance-type product warranty [Text Block] | Philips Group Provisions for assurance-type product warranty in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 289 259 201 Changes: Additions 325 283 248 Utilizations (357) (270) (261) Transfer to liabilities directly associated with assets held for sale (56) Translation differences and other 2 (16) 2 Balance as of December 31 259 201 190 |
Provisions (Tables), Environmental provisions [Text Block] | Philips Group Environmental provisions in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 335 321 160 Changes: Additions 18 18 23 Utilizations (24) (21) (15) Releases (36) (8) (4) Changes in discount rate 11 11 (28) Accretion 7 6 5 Translation differences and other 10 (20) 4 Transfer to liabilities directly associated with assets held for sale (146) Balance as of December 31 321 160 144 |
Provisions (Tables), Restructuring-related provisions [Text Block] | Philips Group Restructuring-related provisions in millions of EUR 2018 Jan. 1, 2018 additions utilizations releases Dec. 31, 2018 Diagnosis & Treatment 38 60 (32) (11) 55 Connected Care & Health Informatics 20 19 (13) (8) 18 Personal Health 7 14 (6) (1) 14 Other 47 42 (47) (16) 26 Philips Group 112 136 (98) (37) 114 Philips Group Restructuring-related provisions in millions of EUR 2016 Jan. 1, 2016 additions utilizations releases other changes 1 Dec. 31, 2016 Diagnosis & Treatment 28 11 (19) (6) (1) 13 Connected Care & Health Informatics 21 11 (14) (6) 1 13 Personal Health 32 7 (29) (2) (3) 5 Other 38 34 (17) (20) 2 37 Lighting (now Signify) 178 95 (118) (27) 5 133 Philips Group 297 158 (197) (61) 4 201 1 Other changes primarily relate to translation differences and transfers between segments |
Provisions (Tables), Restructuring-related provision [Text Block] | Philips Group Restructuring-related provision in millions of EUR 2017 Jan. 1, 2017 additions utilizations releases other changes 1 Dec. 31, 2017 Diagnosis & Treatment 13 46 (16) (5) (1) 38 Connected Care & Health Informatics 13 27 (12) (6) (1) 20 Personal Health 5 14 (5) (6) (1) 7 Other 37 55 (27) (16) (1) 47 Lighting (now Signify) 133 9 (35) (3) (104) Philips Group 201 150 (96) (37) (107) 112 1 Other changes primarily relate to translation differences and reclassification to liabilities directly associated with assets held for sale. |
Provisions (Tables), Litigation provisions [Text Block] | Philips Group Litigation provisions in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 578 96 50 Changes: Additions 31 40 17 Utilizations 1 (313) (52) (29) Releases (98) (11) (11) Reclassifications 1 (125) 2 - Changes in discount rate 5 Accretion 8 3 2 Transfer to liabilities directly associated with assets held for sale (21) Translation differences and other 10 (7) (3) Balance as of December 31 96 50 26 1 The presentation of prior-year information has been reclassified to conform to the current-year presentation. |
Provisions (Tables), Other provisions [Text Block] | Philips Group Other provisions in millions of EUR 2016 - 2018 2016 2017 2018 Balance as of January 1 604 733 564 Changes: Additions 1 183 241 176 Utilizations 1 (167) (175) (226) Releases (61) (88) (58) Reclassification 142 4 2 Accretion 8 - 14 Acquisitions - 62 367 Transferred to liabilities directly associated with assets held for sale (156) Translation differences and other 24 (56) 3 Balance as of December 31 733 564 842 1 The presentation of prior-year information has been reclassified to conform to the current-year presentation. |
Post-employment benefits (Table
Post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Post-employment benefits [Abstract] | |
Post-employment benefits (Tables), Pre-tax costs for post-employment benefits [Text Block] | Philips Group Pre-tax costs for post-employment benefits in millions of EUR 2016 - 2018 2016 2017 2018 Defined-benefit plans 58 95 46 - included in income from operations (19) 1 32 23 - included in financial expense 48 37 23 - included in Discontinued operations 29 26 Defined-contribution plans 392 397 327 - included in income from operations 299 315 327 - included in Discontinued operations 93 82 Post-employment benefits costs 450 492 374 1 The net income mainly relates to the settlement of the pension related legal claim in the UK |
Post-employment benefits (Tables), Defined-benefit obligations [Text Block] | Philips Group Defined-benefit obligations in millions of EUR 2017 - 2018 2017 2018 Balance as of January 1 4,987 3,109 Service cost 34 27 Interest cost 126 85 Employee contributions 4 4 Actuarial (gains) / losses – demographic assumptions (14) 4 – financial assumptions 75 (131) – experience adjustment (15) 5 (Negative) past service cost 1 (6) Settlements (348) (0) Benefits paid from plan (172) (152) Benefits paid directly by employer (52) (42) Transfer to Liabilities directly associated with assets held for sale 1 (1,210) Translation differences and other (307) 94 Balance as of December 31 3,109 2,998 Present value of funded obligations at end of year 2,476 2,388 Present value of unfunded obligations at end of year 633 610 1 The amount presented under 'Transfer to Liabilities directly associated with assets held for sale' in 2017 relates to Signify (former Philips Lighting) |
Post-employment benefits (Tables), Plan assets [Text Block] | Philips Group Plan assets in millions of EUR 2017 - 2018 2017 2018 Balance as of January 1 3,095 2,137 Interest income on plan assets 87 62 Admin expenses paid (2) (1) Return on plan assets excluding interest income 70 (129) Employee contributions 4 4 Employer contributions 263 159 Settlements (348) (0) Benefits paid from plan (172) (152) Transfer to Assets classified as held for sale 1 (642) - Translation differences and other (218) 83 Balance as of December 31 2,137 2,164 Funded status (972) (834) Unrecognized net assets Net balance sheet position (972) (834) 1 The amount presented under 'Transfer to Liabilities directly associated with assets held for sale' in 2017 relates to Signify (former Philips Lighting) |
Post-employment benefits (Tables), Changes in the effect of the asset ceiling [Text Block] | Philips Group Changes in the effect of the asset ceiling in millions of EUR 2017 2017 Balance as of January 1 105 Interest on unrecognized assets 4 Remeasurements (100) Translation differences (9) Balance as of December 31 |
Post-employment benefits (Tables), Plan assets allocation [Text Block] | Philips Group Plan assets allocation in millions of EUR 2017 - 2018 2017 2018 Assets quoted in active markets - Debt securities 1,142 1,294 - Equity securities 69 - Other 137 161 Assets not quoted in active markets - Debt securities 14 12 - Equity securities 457 368 - Other 318 329 Total assets 2,137 2,164 |
Post-employment benefits (Tables), Assumptions used for defined-benefit obligations [Text Block] | Philips Group Assumptions used for defined-benefit obligations in % 2017- 2018 2017 2018 Discount rate 2.8% 3.2% Inflation rate 2.1% 2.1% Salary increase 2.4% 2.4% |
Post-employment benefits (Tables), Sensitivity of key assumptions [Text Block] | Philips Group Sensitivity of key assumptions in millions of EUR 2018 Defined benefit obligation Increase Discount rate (1% movement) (298) Inflation rate (1% movement) 97 Salary increase (1% movement) 21 Longevity 1 65 Decrease Discount rate (1% movement) 367 Inflation rate (1% movement) (89) Salary increase (1% movement) (20) 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 schemes. A 10% decrease in assumed mortality rates equals improvement of life expectancy by 0.5 - 1 year. Philips Group Sensitivity of key assumptions in millions of EUR 2017 Defined benefit obligation Increase Discount rate (1% movement) (323) Inflation rate (1% movement) 85 Salary increase (1% movement) 20 Longevity 1 72 Decrease Discount rate (1% movement) 394 Inflation rate (1% movement) (86) Salary increase (1% movement) (19) 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 schemes. 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, 2018 | |
Accrued liabilities [Abstract] | |
Accrued liabilities (Tables), Accrued liabilities [Text Block] | Philips Group Accrued liabilities in millions of EUR 2017 - 2018 2017 2018 Personnel-related costs: - Salaries and wages 529 530 - Accrued holiday entitlements 109 111 - Other personnel-related costs 71 73 Fixed-asset-related costs: - Gas, water, electricity, rent and other 52 36 Communication and IT costs 42 55 Distribution costs 83 78 Sales-related costs: - Commission payable 7 6 - Advertising and marketing-related costs 174 179 - Other sales-related costs 38 28 Material-related costs 110 112 Interest-related accruals 38 36 Deferred income 1 791 Other accrued liabilities 273 293 Accrued liabilities 2,319 1,537 1 Due to implementation of IFRS 15 balances included in deferred income are now presented as contract liabilities. |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities [Abstract] | |
Other liabilities (Tables), Other non-current liabilities [Text Block] | Philips Group Other non-current liabilities in millions of EUR 2017 - 2018 2017 2018 Accrued pension costs Deferred income 1 249 Other tax liability 161 181 Other liabilities 65 72 Other non-current liabilities 474 253 1 Due to implementation of IFRS 15 balances included in deferred income are now presented as contract liabilities. |
Other liabilities (Tables), Other current liabilities [Text Block] | Philips Group Other current liabilities in millions of EUR 2017 - 2018 2017 2018 Accrued customer rebates that cannot be offset with accounts receivables for those customers 435 422 Advances received from customers on orders not covered by work in process 1 372 Other taxes including social security premiums 164 178 Other liabilities 155 137 Other current liabilities 1,126 737 1 Due to implementation of IFRS 15 balances included in advances received from customers on orders not covered by work in progress are now presented as contract liabilities. |
Cash flow statement supplemen_2
Cash flow statement supplementary information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash flow statement supplementary information [Abstract] | |
Cash flow statement supplementary information (Tables), Reconciliation of liabilities arising from financing activities [Text Block] | Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2017 - 2018 Balance as of Dec. 31, 2017 Cash flow Currency effects and consolidation changes Other 1 Balance as of Dec. 31, 2018 Long term debt 2 4,595 126 45 (109) 4,657 USD bonds 2,137 (866) 31 - 1,303 EUR bonds 997 990 1 1,988 Bank borrowings 190 21 - - 211 Other long-term debt 20 (1) - - 18 Finance leases 281 (18) 13 53 330 Forward contracts 3 970 (163) 807 Short term debt 2 120 34 (29) 39 164 Short-term bank borrowings 71 34 (29) 76 Other short-term loans Forward contracts 3 49 39 88 Equity (1,500) (1,351) 1,558 (1,293) Dividend payable (404) 404 Forward contracts 3 (1,018) 124 (894) Treasury shares (481) (948) 1,030 (399) Total (1,192) 1 Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 2 Long-term debt includes the short-term portion of long-term debt, and short-term debt excludes the short-term portion of the long-term debt. 3 The forward contracts are related to the share buyback program and LTI plans Philips Group Reconciliation of liabilities arising from financing activities in millions of EUR 2016 - 2017 Balance as of Dec. 31, 2016 Cash flow 1 Transfer to liabilities directly associated with assets held for sale Currency effects and consolidation changes Other 2 Balance as of Dec. 31, 2017 Long term debt 3 5,396 (217) (1,255) (327) 998 4,595 USD bonds 3,608 (1,184) (287) 1 2,137 EUR bonds 997 - 997 Bank borrowings 1,470 (22) (1,238) (21) - 190 Other long-term debt 39 (20) - 1 (1) 20 Finance leases 279 12 (18) (20) 29 281 Forward contracts 4 970 970 Short term debt 3 210 (4) (86) (49) 49 120 Short-term bank borrowings 207 (3) (84) (49) 71 Other short-term loans 2 (1) (2) - Forward contracts 4 49 49 Equity (181) 168 (1,487) (1,500) Sale of Lighting (now Signify) shares 1,060 (1,060) Dividend payable (478) 478 Forward contracts 4 (1,018) (1,018) Treasury shares (181) (414) 114 (481) Total (53) 1 Cash flow includes cash movements related to Lighting from January to April 2017, and therefore does not equal cash flow financing activities in the consolidated statements of cash flows. 2 Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities 3 Long-term debt includes the short-term portion of long-term debt, and short-term debt excluding the short-term portion of long-term debt. 4 The forward contracts are mainly related to the share buyback program |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions [abstract] | |
Related-party transactions (Tables), Related-party transactions [Text Block] | Philips Group Related-party transactions in millions of EUR 2016 - 2018 2016 2017 2018 Sales of goods and services 207 196 232 Purchases of goods and services 81 62 67 Receivables from related parties 33 127 28 Payables to related parties 3 36 1 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based compensation [Abstract] | |
Share-based compensation (Tables), Performance shares [Text Block] | Philips Group Performance shares 2018 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2018 1 6,828,444 29.15 Granted 1,322,107 39.22 Notional dividends 2 112,952 32.21 Vested/Issued 4,237,835 28.50 Forfeited 415,273 29.61 Adjusted quantity 3 1,127,703 28.97 Outstanding at December 31, 2018 4,738,099 32.54 USD-denominated Outstanding at January 1, 2018 1 4,396,514 31.96 Granted 907,782 47.50 Notional dividends 2 70,579 37.51 Vested/Issued 2,840,286 30.14 Forfeited 424,139 36.12 Adjusted quantity 3 767,599 30.32 Outstanding at December 31, 2018 2,878,048 23.71 1 The outstanding number of performance shares as per January 1, 2018 was updated to reflect the dividend declared on outstanding shares between grant date and vesting date that will be issued in shares. 2 Dividend declared in 2018 on outstanding shares. 3 Adjusted quantity includes the adjustments made to performance shares outstanding due to updates on the actual and expected EPS. |
Share-based compensation (Tables), Restricted shares [Text Block] | Philips Group Restricted shares 2018 shares weighted average grant-date fair value EUR-denominated Outstanding at January 1, 2018 1 1,807,009 27.72 Granted 729,798 33.15 Notional dividends 2 52,317 29.58 Vested/Issued 193,968 25.40 Forfeited 174,266 28.52 Outstanding at December 31, 2018 2,220,891 29.69 USD-denominated Outstanding at January 1, 2018 1 1,753,505 31.26 Granted 717,654 36.67 Notional dividends 2 48,082 33.35 Vested/Issued 407,743 28.84 Forfeited 205,630 33.97 Outstanding at December 31, 2018 1,905,867 33.58 1 Excludes premium shares on Restricted shares granted before 2013. (20% additional (premium) shares that may be received if shares delivered under the plan are not sold for three-year period). 2 Dividend declared in 2018 on outstanding shares. |
Share-based compensation (Tables), Options on EUR-denominated listed share [Text Block] | Philips Group Options on EUR-denominated listed share 2018 options weighted average exercise price Outstanding at January 1, 2018 2,772,210 19.49 Exercised 1,024,063 20.14 Forfeited Expired 99,427 22.52 Outstanding at December 31, 2018 1,648,720 18.90 Exercisable at December 31, 2018 1,648,720 18.90 |
Share-based compensation (Tables), Options on USD-denominated listed share [Text Block] | Philips Group Options on USD-denominated listed share 2018 option weighted average exercise price Outstanding at January 1, 2018 3,309,766 28.41 Exercised 1,451,964 29.91 Forfeited Expired 223,934 35.36 Outstanding at December 31, 2018 1,633,868 26.13 Exercisable at December 31, 2018 1,633,868 26.13 |
Share-based compensation (Tables), Outstanding options [Text Block] | Philips Group Outstanding options in millions of EUR 2018 options intrinsic value in millions weighted average remaining contractual term EUR-denominated 10-15 701,262 11.6 2.7 yrs 15-20 22,011 0.3 3.0 yrs 20-25 925,447 7.9 2.0 yrs Outstanding options 1,648,720 19.8 2.3 yrs USD-denominated 15-20 645,598 10.4 2.7 yrs 20-25 23,925 0.3 3.0 yrs 25-30 595,675 3.3 2.3 yrs 30-35 368,670 0.7 1.4 yrs Outstanding options 1,633,868 14.7 2.3 yrs |
Share-based compensation (Tables), Accelerate! options [Text Block] | Philips Group Accelerate! options 2018 optio weighted average exercise price EUR-denominated Outstanding at January 1, 2018 481,200 16.06 Exercised 179,450 15.24 Expired 5,000 15.24 Outstanding at December 31, 2018 296,750 16.57 Exercisable at December 31, 2018 296,750 16.57 USD-denominated Outstanding at January 1, 2018 170,800 20.02 Exercised 47,500 20.02 Forfeited 0 0.00 Outstanding at December 31, 2018 123,300 20.02 Exercisable at December 31, 2018 123,300 20.02 |
Information on remuneration (Ta
Information on remuneration (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Information on remuneration [Abstract] | |
Information on remuneration (Tables), Remuneration costs of the Executive Committee [Text Block] | Philips Group Remuneration costs of the Executive Committee 1 in EUR 2016-2018 2016 2017 2018 Base salary/Base compensation 6,388,667 8,089,063 8,370,406 Annual incentive 2 5,746,347 6,345,576 5,651,996 Performance shares 3 4 5,943,782 6,371,297 8,896,369 Stock options 3 - - - Restricted share rights 3 764,311 885,343 492,237 Pension allowances 5 1,854,129 1,886,963 1,919,839 Pension scheme costs 180,077 408,695 411,028 Other compensation 6 1,556,514 1,861,803 1,013,128 1 The Executive Committee consisted of 13 members as per December 31, 2018 (2017: 12 members; 2016: 12 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, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date 4 For 2018, a release of EUR 1,740,520 (2017: EUR 2,469,670; 2016: EUR 0) is included due to non-vesting of performance shares 5 Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement 6 The stated amounts mainly concern (share of) allowances to members of the Board of Management that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated |
Information on remuneration (Tables), Remuneration costs of individual members of the Board of Management [Text Block] | Philips Group Remuneration costs of individual members of the Board of Management 2016-2018 base compensation/salary annual incentive 1 performance shares 2 stock options 2 restricted share rights 2 pension allowances 3 pension schemecosts other compensation total costs 2018 F.A. van Houten 1,205,000 1,264,286 2,319,460 - 588 537,181 25,708 39,042 5,391,265 A. Bhattacharya 718,750 637,536 942,220 - 129 217,823 25,708 53,522 2,595,688 M.J. van Ginneken 557,500 362,611 711,806 - 66 168,210 25,708 35,299 1,861,200 2,481,250 2,264,433 3,973,486 - 783 923,214 77,124 127,863 9,848,153 2017 F.A. van Houten 1,205,000 1,270,166 1,975,277 - 4,034 537,621 25,278 84,053 5,101,429 A. Bhattacharya 687,500 553,392 669,396 - 888 210,450 25,278 100,918 2,247,822 P.A.J. Nota 606,250 429,886 (1,203,992) - (188) 236,208 21,065 63,576 152,805 M.J. van Ginneken 91,667 69,168 100,022 - 75 27,796 4,213 13,120 306,061 2,590,417 2,322,612 1,540,703 - 4,809 1,012,075 75,834 261,667 7,808,117 2016 F.A. van Houten 1,197,500 1,354,227 1,423,538 - 12,041 536,195 24,838 126,703 4,675,042 A. Bhattacharya 650,000 540,072 362,758 - 3,341 201,524 24,838 73,642 1,856,175 P.A.J. Nota 702,500 619,745 683,101 - 9,251 277,649 24,838 56,558 2,373,642 2,550,000 2,514,044 2,469,397 - 24,633 1,015,368 74,514 256,903 8,904,859 1 The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. For more details on the annual incentives refer to 2018 Annual Incentive 2 Costs of performance shares, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date 3 The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated. |
Information on remuneration (Tables), Number of performance shares (holdings) [Text Block] | Philips Group Number of performance shares (holdings) in number of shares 2018 January 1, 2018 awarded 2018 awarded dividend shares 2018 realized 2018 December 31, 2018 vesting date F.A. van Houten 60,112 - - 100,207 - 05.05.2018 62,880 - 1,423 - 64,303 04.29.2019 74,878 - 1,693 - 76,571 05.11.2020 - 69,005 1,561 - 70,566 04.27.2021 A. Bhattacharya 12,790 1 - - 21,312 - 05.05.2018 28,265 1 - 640 - 28,905 04.29.2019 32,623 - 738 - 33,361 05.11.2020 - 31,138 704 - 31,842 04.27.2021 M.J. van Ginneken 19,185 1 - - 31,981 - 05.05.2018 22,243 1 - 503 - 22,746 04.29.2019 19,030 1 - 431 - 19,461 05.11.2020 - 24,052 544 - 24,596 04.27.2021 Performance shares (holdings) 332,006 124,195 8,237 153,500 372,351 1 Awarded before date of appointment as a member of the Board of Management |
Information on remuneration (Tables), Stock options (holdings) [Text Block] | Philips Group Stock options (holdings) number of shares 2018 January, 1 2018 granted exercised expired December 31, 2018 grant price (in euros) share (closing) price on exercise date expiry date F.A. van Houten 20,400 − − − 20,400 22.88 − 10.18.2020 75,000 − − − 75,000 20.9 − 04.18.2021 75,000 − − − 75,000 14.82 − 04.23.2022 55,000 − − − 55,000 22.43 − 01.29.2023 A. Bhattacharya 16,500 − − − 16,500 22.88 − 10.18.2020 16,500 − − − 16,500 20.9 − 04.18.2021 20,000 − − − 20,000 15.24 − 01.30.2022 16,500 − − − 16,500 14.82 − 04.23.2022 M.J. van Ginneken 5,250 − − − 5,250 12.63 − 04.14.2019 6,720 − − − 6,720 24.9 − 04.19.2020 8,400 − − − 8,400 20.9 − 04.18.2021 10,000 − − − 10,000 15.24 − 01.30.2022 8,400 − − − 8,400 14.82 − 04.23.2022 Stock options (holdings) 333,670 − − − 333,670 − |
Information on remuneration (Tables), Accumulated annual pension entitlements and pension-related costs [Text Block] | Philips Group Accumulated annual pension entitlements and pension-related costs in EUR 2018 age at December 31, 2018 accumulated annual pension as of December 31, 2018 total pension related costs F.A. van Houten 58 298,470 562,889 A. Bhattacharya 57 27,383 243,531 M.J. van Ginneken 45 39,552 193,918 Pension costs 1,000,338 |
Information on remuneration (Tables), Remuneration of the Supervisory Board [Text Block] | Philips Group Remuneration of the Supervisory Board in EUR 2016-2018 membership committees other compensation 1 total 2018 2 J.A. van der Veer 140,000 27,500 12,000 179,500 C. Poon 96,250 36,625 22,000 154,875 H. von Prondzynski 85,000 36,625 14,500 136,125 J.P. Tai 85,000 34,625 22,000 141,625 N. Dhawan 85,000 14,250 24,500 123,750 O. Gadiesh 85,000 14,250 22,000 121,250 D.E.I. Pyott 85,000 25,250 32,000 142,250 P.A. Stoffels 38,333 - 8,333 46,667 A.M. Harrison 31,667 - 10,667 42,333 731,250 189,125 168,000 1,088,375 2017 2 J.A. van der Veer 135,000 25,000 7,000 167,000 C. Poon 90,000 32,500 17,000 139,500 H. von Prondzynski 80,000 32,500 19,500 132,000 J.P. Tai 80,000 32,500 32,000 144,500 N. Dhawan 80,000 13,000 27,000 120,000 O. Gadiesh 80,000 13,000 19,500 112,500 D.E.I. Pyott 80,000 23,000 32,000 135,000 625,000 171,500 154,000 950,500 2016 2 J.A. van der Veer 135,000 26,667 7,000 168,667 C. Poon 90,000 32,500 22,000 144,500 C.J.A. van Lede (Jan.-May) 33,333 4,375 2,000 39,708 E. Kist (Jan.-May) 40,000 4,167 2,000 46,167 H. von Prondzynski 80,000 25,000 19,500 124,500 J.P. Tai 80,000 34,167 32,000 146,167 N. Dhawan 80,000 13,000 27,000 120,000 O. Gadiesh 80,000 13,000 19,500 112,500 D.E.I. Pyott 80,000 23,000 32,000 135,000 698,333 175,876 163,000 1,037,209 1 The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel (effective 2015) and the entitlement of EUR 2,000 under the Philips product arrangement 2 As of 2013, part of the remuneration of members of the Supervisory Board living in the Netherlands is subject to VAT. The amounts mentioned in this table are excluding VAT |
Information on remuneration (Tables), Shares held by Board members [Text Block] | Philips Group Shares held by Board members 1 in number of shares 2018 December 31, 2017 December 31, 2018 J. van der Veer 18,366 18,366 H. von Prondzynski 3,851 3,937 J.P. Tai 3,844 3,844 F.A. van Houten 233,119 292,302 A. Bhattacharya 53,974 66,794 M.J. van Ginneken 30,246 47,856 1 Reference date for board membership is December 31, 2018. |
Fair value of financial asset_2
Fair value of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair value of financial assets and liabilities [Abstract] | |
Fair value of financial assets and liabilities (Tables), Fair value of financial assets and liabilities [Text Block] | Philips Group Fair value of financial assets and liabilities in millions of EUR 2018 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Debt instruments 69 69 69 Equity instruments 20 20 20 Other financial assets 27 27 22 5 Financial assets carried at FVTPL 116 116 20 22 74 Debt instruments 26 26 26 - Equity instruments 172 172 22 1 149 Current financial assets 2 435 435 434 - Receivables - current 32 32 32 Financial assets carried at FVTOCI 664 664 457 27 181 Derivative financial instruments 36 36 36 Financial assets carried at fair value 817 817 476 85 255 Carried at (amortized) cost: Cash and cash equivalents 1,688 Loans and receivables: Current loans receivables 2 Other non-current loans and receivables 46 Receivables - current 4,004 Receivables - non-current 162 Financial assets carried at (amortized) cost 5,902 Total financial assets 6,718 Financial liabilities Carried at fair value: Contingent consideration (409) (409) (409) Financial liabilities carried at FVTP&L (409) (409) (409) Derivative financial instruments (290) (290) (290) Financial liabilities carried at fair value (699) (699) (290) (409) Carried at (amortized) cost: Accounts payable (2,303) Interest accrual (36) Debt (Corporate bonds and finance leases) (3,621) (3,906) (3,576) (330) Debt (excluding corporate bonds and finance leases) (1,200) Financial liabilities carried at (amortized) cost (7,159) Total financial liabilities (7,858) 1 For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the short maturity and the nature of these instruments, and therefore fair value information is not included in the table above. 2 The majority of the balance reflects the remaining stake in Signify (formerly Philips Lighting), which relates to equity instruments. Philips Group Fair value of financial assets and liabilities in millions of EUR 2017 carrying amount estimated fair value 1 Level 1 Level 2 Level 3 Financial assets Carried at fair value: Available-for-sale financial assets 446 446 49 29 368 Securities classified as assets held for sale 1,264 1,264 1,264 Fair value through profit and loss 27 27 23 4 Derivative Financial Instruments 78 78 78 Financial assets carried at fair value 1,815 1,815 1,313 130 372 Carried at (amortized) cost: Cash and cash equivalents 1,939 Loans and receivables: Current loans receivable 2 Other non-current loans and receivables 114 Receivables - current 3,909 Receivables - non-current 130 Held-to-maturity investments 1 Financial assets carried at (amortized) costs 6,095 Total financial assets 7,909 Financial liabilities Carried at fair value: Contingent consideration (66) (66) (66) Derivative Financial Instruments (383) (383) (383) Financial liabilities carried at fair value (449) (449) (383) (66) Carried at amortized cost: Accounts payable (2,090) Interest accrual (38) Debt (Corporate bond and finance lease) (3,378) (3,860) (3,579) (281) Debt (other bank loans, overdrafts, forward contacts etc.) (1,337) Financial liabilities carried at (amortized) costs (6,843) Total financial liabilities (7,292) 1 For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the short maturity and the nature of these instruments, and therefore fair value information is not included in the table above. |
Fair value of financial assets and liabilities (Tables), Reconciliation of the fair value hierarchy [Text Block] | Philips Group Reconciliation of the fair value hierarchy in millions of EUR 2018 Financial assets Financial liabilities Balance as of December 31, 2017 372 66 IFRS 9 adjustment 1 47 Balance at January 1, 2018 420 66 Assumed in a business combination 370 Purchase 30 Sales (35) Utilizations (48) Recognized in profit and loss: - other business income 5 - financial income and expenses - 12 Recognized in other comprehensive income 2 (145) 5 Receivables held to collect and sell (15) Balance at December 31, 2018 255 409 1 IFRS 9 adjustments relates to Receivables-current carried at FVTOCI. For further information refer to Significant accounting policies note. 2 Includes translation differences |
Fair value of financial assets and liabilities (Tables), Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements [Text Block] | Philips Group Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2017 - 2018 2017 2018 Derivatives Gross amounts of recognized financial assets 78 36 Gross amounts of recognized financial liabilities offset in the balance sheet Net amounts of financial assets presented in the balance sheet 78 36 Related amounts not offset in the balance sheet Financial instruments (38) (25) Cash collateral received Net amount 39 12 |
Fair value of financial assets and liabilities (Tables), Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements [Text Block] | Philips Group Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in millions of EUR 2017 - 2018 2017 2018 Derivatives Gross amounts of recognized financial liabilities (383) (290) Gross amounts of recognized financial assets offset in the balance sheet Net amounts of financial liabilities presented in the balance sheet (383) (290) Related amounts not offset in the balance sheet Financial instruments 38 25 Cash collateral received Net amount (345) (265) |
Details of treasury _ other f_2
Details of treasury / other financial risks (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Details of treasury / other financial risks [Abstract] | |
Details of treasury / other financial risks (Tables), Contractual cash obligation [Text Block] | Philips Group Contractual cash obligation 1 2 in millions of EUR 2018 payments due by period total less than 1 year 1-3 years 3-5 years after 5 years Long-term debt 3 4,358 1,136 194 501 2,527 Finance lease obligations 357 100 152 53 52 Short-term debt 164 164 Operating leases obligations 756 176 227 148 204 Derivative liabilities 296 179 2 114 Interest on debt 1,632 108 207 200 1,117 Purchase obligations 4 666 233 352 52 30 Trade and other payables 2,303 2,303 Contractual cash obligations 10,532 4,399 1,134 1,069 3,929 3 Long-term debt includes short-term portion of long-term debt and excludes finance lease obligations 4 Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not include open purchase orders or other commitments which do not specify all significant terms. 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 1 Amounts in this table are undiscounted |
Details of treasury / other financial risks (Tables), Operating lease - minimum payments under sale-and-leaseback arrangements [Text Block] | Philips Group Operating lease - minimum payments under sale-and-leaseback arrangements in millions of EUR 2018 2019 29 2020 26 2021 23 2022 21 2023 20 Thereafter 106 |
Details of treasury / other financial risks (Tables), Estimated transaction exposure and related hedges [Text Block] | Philips Group Estimated transaction exposure and related hedges in millions of EUR 2018 Sales/Receivables Purchases/Payable exposure hedges exposure hedges Balance as of December 31, 2018 Exposure currency USD 1,672 (1,178) (659) 571 JPY 683 (361) (9) 9 CAD 263 (137) - - GBP 222 (102) (14) 6 CNY 276 (220) (120) 113 AUD 199 (109) CHF 107 (56) PLN 113 (63) SEK 46 (23) (1) 1 CZK 38 (19) RUB 97 (87) (1) 1 Others 215 (207) (156) 109 Total 2018 3,930 (2,562) (960) 809 Total 2017 3,395 (2,189) (867) 760 |
Details of treasury / other financial risks (Tables), Credit risk with number of counterparties [Text Block] | Philips Group Credit risk with number of counterparties for deposits above EUR 10 million 2018 10-100 million 100-500 millio 500 million and above AA- rated bank counterparties 1 1 1 A+ rated bank counterparties 2 2 A rated bank counterparties 2 A- rated bank counterparties 1 3 6 1 |
Significant accounting polici_4
Significant accounting policies - Text Details (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | |||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Basic earnings (loss) per share from continuing operations | [1] | € 1.41 | € 1.10 | € 0.90 | ||||||
Diluted earnings (loss) per share from continuing operations attributable to shareholders | [2] | € 1.39 | € 1.08 | [3] | € 0.89 | [3] | ||||
Fair value gain (loss) that would have been recognised in profit or loss if financial assets had not been reclassified out of fair value through other comprehensive and into income fair value through profit or loss, initial application of IFRS 9 | € 4 | |||||||||
Fair value loss on the reclassified investments, initial application of IFRS 9 | € (3) | |||||||||
Charges to cash flow hedge reserve on forward contracts | 6 | |||||||||
Revenue | 18,121 | [4] | € 17,780 | € 17,422 | ||||||
Right-of-use assets | € 760 | |||||||||
Lease liabilities | 800 | |||||||||
Deferred tax assets | 1,828 | € 1,598 | 1,593 | |||||||
Finance lease assets and liabilities | 330 | |||||||||
Financial effect of transition to new IFRS | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Deferred tax assets | 5 | |||||||||
IFRS 15 - Costs of obtaining a contract [Member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Impact on equity | 57 | |||||||||
IFRS 15 - Royalty income [Member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Impact on equity | 27 | |||||||||
Deferred revenue recorded as an increase in retained earnings | 25 | |||||||||
IFRS 15 - Royalty income [Member] | Associates [member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Deferred revenue recorded as an increase in retained earnings | 7 | |||||||||
IFRS 15 [Member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Costs Of Obtaining Contract Gross Impact | 75 | |||||||||
Costs to obtain contract tax impact | 17 | |||||||||
IFRS 16 [Member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Impact on equity | € 35 | |||||||||
Cancellable operating lease commitments | € 870 | |||||||||
Expected increase in operating cash flows and expected decrease in financing cash flows | € 150 | |||||||||
IFRS 9 adoption impact [member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Reclassify investments from available-for-sale to FVTPL | 587 | |||||||||
Factored trade receivables were transferred from measurement at amortized cost to measurement at FVTOCI | 47 | |||||||||
IFRS 9 adoption impact [member] | Financial assets at fair value through profit or loss, category [member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Reclassify investments from available-for-sale to FVTPL | € 77 | |||||||||
Bottom of range [member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Presumed significant influence, voting rights | 20.00% | 20.00% | ||||||||
Top of range [member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Presumed significant influence, voting rights | 50.00% | 50.00% | ||||||||
As per IAS 18 [member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Revenue | € 18,070 | |||||||||
Before restatement [Member] | ||||||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||||||
Basic earnings (loss) per share from continuing operations | € 0.88 | € 0.86 | ||||||||
Diluted earnings (loss) per share from continuing operations attributable to shareholders | € 0.86 | € 0.85 | ||||||||
[1] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies | |||||||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||||
[3] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies | |||||||||
[4] | Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Significant accounting polici_5
Significant accounting policies - Balance sheet presentation impact of IFRS 15 adoption (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Significant accounting policies - Text Details (Detail) [Line Items] | |||||
Other non-current non-financial liabilities | [1] | € 253 | € 474 | ||
Non-current contract liabilities | 226 | [1] | € 237 | 249 | |
Accruals | [1] | 1,537 | 2,319 | ||
Other current non-financial liabilities | [1] | 737 | 1,126 | ||
Current contract liabilities | € 1,303 | [1] | 1,150 | € 1,163 | |
After presentation change [Member] | |||||
Significant accounting policies - Text Details (Detail) [Line Items] | |||||
Other non-current non-financial liabilities | [2] | 226 | |||
Non-current contract liabilities | [2],[3] | 249 | |||
Accruals | [2] | 1,528 | |||
Other current non-financial liabilities | [2] | 754 | |||
Current contract liabilities | [2],[3] | 1,163 | |||
Presentation change [member] | |||||
Significant accounting policies - Text Details (Detail) [Line Items] | |||||
Other non-current non-financial liabilities | [4] | (249) | |||
Non-current contract liabilities | [4] | 249 | |||
Accruals | [4] | (791) | |||
Other current non-financial liabilities | [4] | (372) | |||
Current contract liabilities | [4] | € 1,163 | |||
[1] | Due to IFRS 15 adoption, contractual liabilities are shown as separate captions on the balance sheet as of 2018. For more details refer to the Significant accounting policies | ||||
[2] | Opening balance sheet after IFRS 15 presentation change. | ||||
[3] | Opening balance sheet after IFRS 15 presentation change, before other IFRS 15 and IFRS 9 adjustments. | ||||
[4] | The amounts in relation to the IFRS 15 presentation change have been reclassified to conform to the 31 December 2018 Consolidated balance sheets classification. |
Significant accounting polici_6
Significant accounting policies - Balance sheet impact of IFRS 9 and IFRS 15 adoption (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Trade and other current receivables | € 4,035 | € 3,911 | € 3,909 | |||
Current tax assets, current | 147 | 110 | 109 | |||
Current prepayments and other current assets | 469 | 317 | 392 | |||
Investments in subsidiaries, joint ventures and associates | 244 | 149 | 142 | |||
Deferred tax assets | 1,828 | 1,593 | 1,598 | |||
Current contract liabilities | 1,303 | [1] | 1,150 | 1,163 | ||
Non-current contract liabilities | 226 | [1] | 237 | 249 | ||
Deferred tax liabilities | 152 | 18 | 33 | |||
Equity attributable to owners of parent | € 12,088 | 11,970 | € 11,999 | € 12,546 | ||
IFRS 15 adoption impact [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Trade and other current receivables | 1 | |||||
Current tax assets, current | 1 | |||||
Current prepayments and other current assets | (75) | |||||
Investments in subsidiaries, joint ventures and associates | 7 | |||||
Deferred tax assets | 5 | |||||
Current contract liabilities | (13) | |||||
Non-current contract liabilities | (12) | |||||
Deferred tax liabilities | 15 | |||||
Equity attributable to owners of parent | (29) | |||||
After presentation change [Member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Trade and other current receivables | [2] | 3,909 | ||||
Current tax assets, current | [2] | 109 | ||||
Current prepayments and other current assets | [2] | 392 | ||||
Investments in subsidiaries, joint ventures and associates | [2] | 142 | ||||
Deferred tax assets | [2] | 1,598 | ||||
Current contract liabilities | [2],[3] | 1,163 | ||||
Non-current contract liabilities | [2],[3] | 249 | ||||
Deferred tax liabilities | [2] | 33 | ||||
Equity attributable to owners of parent | [2] | € 11,999 | ||||
[1] | Due to IFRS 15 adoption, contractual liabilities are shown as separate captions on the balance sheet as of 2018. For more details refer to the Significant accounting policies | |||||
[2] | Opening balance sheet after IFRS 15 presentation change, before other IFRS 15 and IFRS 9 adjustments. | |||||
[3] | Opening balance sheet after IFRS 15 presentation change. |
Significant accounting polici_7
Significant accounting policies - Retained earnings impact of IFRS 9 and IFRS 15 adoption (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Significant accounting policies - Text Details (Detail) [Line Items] | |||
Current prepayments and other current assets | € 469 | € 317 | € 392 |
Deferred tax liabilities | 152 | 18 | 33 |
Deferred tax assets | 1,828 | 1,593 | 1,598 |
Current tax assets, current | 147 | 110 | 109 |
Trade and other current receivables | 4,035 | 3,911 | 3,909 |
Investments in subsidiaries, joint ventures and associates | 244 | 149 | € 142 |
Retained earnings | 8,571 | ||
IFRS 15 adoption impact - Costs of obtaining contract [member] | |||
Significant accounting policies - Text Details (Detail) [Line Items] | |||
Current prepayments and other current assets | (75) | ||
Deferred tax liabilities | € 15 | ||
Deferred tax assets | 2 | ||
Current tax assets, current | 1 | ||
IFRS 15 adoption impact [member] | |||
Significant accounting policies - Text Details (Detail) [Line Items] | |||
Current prepayments and other current assets | (75) | ||
Deferred tax liabilities | 15 | ||
Deferred tax assets | 5 | ||
Current tax assets, current | 1 | ||
Trade and other current receivables | 1 | ||
Investments in subsidiaries, joint ventures and associates | 7 | ||
IFRS 15 adoption impact - Royalty income [member] | |||
Significant accounting policies - Text Details (Detail) [Line Items] | |||
Deferred tax assets | 7 | ||
Current tax assets, current | 1 | ||
Contract liabilities | 25 | ||
Trade and other current receivables | 1 | ||
IFRS 9 adoption impact [member] | |||
Significant accounting policies - Text Details (Detail) [Line Items] | |||
Transfer from financial assets fair value through OCI reserve | € 4 |
Significant accounting polici_8
Significant accounting policies - Impact of IFRS 9 on other non-current financial assets (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Non-current financial assets measured at fair value through other comprehensive income | € 198 | € 369 | [1] | |||
Non-current financial assets at amortised cost | 46 | 114 | [1],[2] | |||
Other non-current financial assets, total | 360 | 587 | [1] | |||
Non-current financial assets at fair value through profit or loss | € 116 | 104 | [1] | |||
IFRS 9 adoption impact [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Non-current financial assets measured at fair value through other comprehensive income | € 369 | |||||
Non-current financial assets at fair value through profit or loss | 104 | |||||
Reclassify investments from available-for-sale to FVTPL | 587 | |||||
Current financial assets at amortised cost | [2] | 114 | ||||
Financial assets at amortised cost, category [member] | IFRS 9 adoption impact [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Reclassify held-to-maturity investments to amortized cost | [2] | 1 | ||||
Financial assets at fair value through other comprehensive income, category [member] | IFRS 9 adoption impact [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Reclassify investments from available-for-sale to FVTPL | (77) | |||||
Financial assets at fair value through profit or loss, category [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Other non-current financial assets, total | 27 | € 27 | ||||
Financial assets at fair value through profit or loss, category [member] | IFRS 9 adoption impact [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Reclassify investments from available-for-sale to FVTPL | 77 | |||||
Held-to-maturity investments, category [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Other non-current financial assets, total | € 1 | € 2 | ||||
Held-to-maturity investments, category [member] | IFRS 9 adoption impact [member] | ||||||
Significant accounting policies - Text Details (Detail) [Line Items] | ||||||
Other non-current financial assets, total | € (1) | |||||
[1] | Refer to IFRS 9 disclosure in Significant accounting policies note for the impact of IFRS 9 on 2018 opening balance. | |||||
[2] | Previously reported as loans and receivables. |
Information by segment and ma_3
Information by segment and main country - Text Details (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Information by segment and main country [Abstract] | |
Share of sales for single customer | 10.00% |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | € 18,121 | [1] | € 17,780 | € 17,422 | |
Depreciation and amortisation expense | [2] | 1,089 | 1,025 | 976 | |
Adjusted EBITA, total | 2,366 | 2,153 | 1,921 | ||
Connected Care & Health Informatics [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | 3,084 | [3] | 3,163 | 3,158 | |
Sales including intercompany | 3,126 | 3,200 | 3,213 | ||
Depreciation and amortisation expense | [4] | 176 | 208 | 184 | |
Adjusted EBITA, total | [5] | 341 | 372 | 324 | |
Diagnosis & Treatment [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | 7,245 | [3] | 6,891 | 6,686 | |
Sales including intercompany | 7,364 | 6,953 | 6,741 | ||
Depreciation and amortisation expense | [4] | 302 | 267 | 229 | |
Adjusted EBITA, total | [5] | 838 | 716 | 631 | |
Intersector Eliminations [member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Sales including intercompany | (282) | (269) | (292) | ||
Other [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | 564 | [3] | 416 | 479 | |
Sales including intercompany | 674 | 564 | 641 | ||
Depreciation and amortisation expense | [4] | (244) | (179) | (179) | |
Adjusted EBITA, total | [5] | (28) | (157) | (142) | |
Personal Health [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | 7,228 | [3] | 7,310 | 7,099 | |
Sales including intercompany | 7,240 | 7,333 | 7,119 | ||
Depreciation and amortisation expense | [4] | 367 | 371 | 385 | |
Adjusted EBITA, total | [5] | 1,215 | 1,221 | 1,108 | |
Philips Group [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | 18,121 | [3] | 17,780 | 17,422 | |
Sales including intercompany | 18,121 | 17,780 | 17,422 | ||
Depreciation and amortisation expense | [4] | 1,089 | 1,025 | 976 | |
Adjusted EBITA, total | [5] | € 2,366 | € 2,153 | € 1,921 | |
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[2] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | ||||
[3] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[4] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | ||||
[5] | For reconciliation Adjusted EBITA, refer to the table below. |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||||
Profit (loss) | [2] | € 1,097 | [1] | € 1,870 | € 1,491 | ||
Profit (loss) from discontinued operations | [2],[3] | (213) | 843 | [4] | 660 | [4] | |
Tax expense (income), continuing operations | 193 | 349 | 203 | ||||
Share of profit (loss) of associates and joint ventures accounted for using equity method | (2) | (4) | 11 | ||||
Finance costs | 264 | 263 | 507 | ||||
Finance income | 51 | 126 | 65 | ||||
Income from operations | 1,719 | 1,517 | 1,464 | ||||
Amortization of acquired intangible assets | 347 | [1] | 260 | 242 | |||
Impairment loss recognised in profit or loss, goodwill | 0 | 9 | 1 | ||||
Earnings before interest, taxes and amortization, total | 2,066 | 1,787 | 1,707 | ||||
Restructuring and acquisition-related charges | 258 | [1] | 316 | 94 | |||
Other items | 41 | [1] | 50 | 120 | |||
Adjusted EBITA, total | 2,366 | 2,153 | 1,921 | ||||
Connected Care & Health Informatics [Member] | |||||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||||
Income from operations | 179 | 206 | 275 | ||||
Amortization of acquired intangible assets | 46 | 44 | 46 | ||||
Impairment loss recognised in profit or loss, goodwill | 1 | ||||||
Earnings before interest, taxes and amortization, total | 225 | 250 | 322 | ||||
Restructuring and acquisition-related charges | 59 | 91 | 14 | ||||
Other items | 56 | 31 | (12) | ||||
Adjusted EBITA, total | [5] | 341 | 372 | 324 | |||
Diagnosis & Treatment [Member] | |||||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||||
Income from operations | 600 | 488 | 546 | ||||
Amortization of acquired intangible assets | 97 | 55 | 48 | ||||
Earnings before interest, taxes and amortization, total | 696 | 543 | 594 | ||||
Restructuring and acquisition-related charges | 142 | 151 | 37 | ||||
Other items | 0 | 22 | |||||
Adjusted EBITA, total | [5] | 838 | 716 | 631 | |||
HealthTech Other [Member] | |||||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||||
Impairment loss recognised in profit or loss, goodwill | 0 | 9 | |||||
Other [Member] | |||||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||||
Income from operations | (105) | (252) | (310) | ||||
Amortization of acquired intangible assets | 79 | 26 | 9 | ||||
Earnings before interest, taxes and amortization, total | (27) | (217) | (301) | ||||
Restructuring and acquisition-related charges | 31 | 64 | 27 | ||||
Other items | (33) | (3) | 132 | ||||
Adjusted EBITA, total | [5] | (28) | (157) | (142) | |||
Personal Health [Member] | |||||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||||
Income from operations | 1,045 | 1,075 | 953 | ||||
Amortization of acquired intangible assets | 126 | 135 | 139 | ||||
Earnings before interest, taxes and amortization, total | 1,171 | 1,211 | 1,092 | ||||
Restructuring and acquisition-related charges | 26 | 11 | 16 | ||||
Other items | 18 | ||||||
Adjusted EBITA, total | [5] | 1,215 | 1,221 | 1,108 | |||
Philips Group [Member] | |||||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||||
Profit (loss) | 1,097 | 1,870 | 1,491 | ||||
Profit (loss) from discontinued operations | (213) | 843 | 660 | ||||
Tax expense (income), continuing operations | 193 | 349 | 203 | ||||
Share of profit (loss) of associates and joint ventures accounted for using equity method | (2) | (4) | 11 | ||||
Finance costs | 264 | 263 | 507 | ||||
Finance income | 51 | 126 | 65 | ||||
Income from operations | 1,719 | 1,517 | 1,464 | ||||
Adjusted EBITA, total | [5] | € 2,366 | € 2,153 | € 1,921 | |||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[3] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[4] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies | ||||||
[5] | For reconciliation Adjusted EBITA, refer to the table below. |
Information by segment and ma_6
Information by segment and main country - Main countries (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | € 18,121 | [1] | € 17,780 | € 17,422 | |
China [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 959 | 1,167 | ||
Revenue | [3] | 2,380 | 2,322 | 2,210 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 353 | 959 | 1,167 | |
Germany [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 270 | 201 | ||
Revenue | [3] | 1,032 | 1,011 | 965 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 263 | 270 | 201 | |
France [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 33 | 45 | ||
Revenue | [3] | 519 | 530 | 513 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 30 | 33 | 45 | |
Foreign countries [member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 12,644 | 14,605 | ||
Revenue | [3] | 18,121 | 17,780 | 17,422 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 13,805 | 12,644 | 14,605 | |
India [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Revenue | [3] | 425 | 399 | ||
Japan [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 457 | 492 | ||
Revenue | [3] | 1,045 | 1,059 | 1,103 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 491 | 457 | 492 | |
Korea (Republic of) [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 100 | 121 | ||
Revenue | [3] | 498 | |||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 3 | 100 | 121 | |
Netherlands [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 1,154 | 1,007 | ||
Revenue | [3] | 510 | 414 | 393 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 1,666 | 1,154 | 1,007 | |
Other countries [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 1,263 | 2,147 | ||
Revenue | [3] | 6,087 | 5,935 | 5,891 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | 1,506 | 1,263 | 2,147 | |
United States of America [Member] | |||||
Information by segment and main country - Information on income statements (Detail) [Line Items] | |||||
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , start of period | [2] | 8,408 | 9,425 | ||
Revenue | [3] | 6,050 | 6,084 | 5,948 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts, , end of period | [2] | € 9,493 | € 8,408 | € 9,425 | |
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[2] | Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill | ||||
[3] | The sales are reported based on country of destination. |
Discontinued operations and a_3
Discontinued operations and assets classified as held for sale - Text Details (Detail) - EUR (€) € in Millions | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Nov. 30, 2017 | Mar. 31, 2018 | Jun. 30, 2016 | Nov. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | ||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Profit (loss) from discontinued operations | [1],[2] | € (213) | € 843 | [3] | € 660 | [3] | ||||||
Increase (decrease) in cash and cash equivalents, discontinued operations | [2] | 647 | 1,063 | 2,151 | ||||||||
Cash flows from (used in) investing activities, discontinued operations | 662 | 856 | (112) | |||||||||
Combined Lumileds and Automotive Lighting businesses [Member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Profit (loss) from discontinued operations | 12 | (29) | 282 | |||||||||
Sale of stake | 80.10% | |||||||||||
Result on the sale of discontinued operations net of tax | € 8 | 8 | (98) | |||||||||
Proceeds from disposal of non-current assets or disposal groups classified as held for sale and discontinued operations | € 1,067 | |||||||||||
Discontinued operations [member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Profit (loss) from discontinued operations | (213) | 843 | 660 | |||||||||
Discontinued operations [member] | Net business impact [Member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Assets and liabilities directly associated with assets held for sale | € 52 | 52 | 44 | |||||||||
Discontinued operations [member] | Property, plant and equipment [member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Assets classified as held for sale | 23 | 23 | 40 | |||||||||
Discontinued operations [member] | Deconsolidation Signify [Member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Cash flows from (used in) investing activities, discontinued operations | € (175) | |||||||||||
Other operations [Member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Profit (loss) from discontinued operations | (27) | (24) | 134 | |||||||||
Other operations [Member] | Audio, video, media and accessories business Funai contract breach [Member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Profit (loss) from discontinued operations | € 144 | |||||||||||
Signify Member | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Profit (loss) from discontinued operations | (198) | 896 | € 244 | |||||||||
Dividend income | 32 | |||||||||||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | 218 | |||||||||||
Increase (decrease) in cash and cash equivalents, discontinued operations | € 642 | |||||||||||
Proceeds from disposal of non-current assets or disposal groups classified as held for sale and discontinued operations | 545 | |||||||||||
Net cash and cash equivalents of disposed asset held for sale | € 720 | |||||||||||
Signify Member | Retained earnings [member] | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Non-current assets or disposal groups classified as held for sale | € 1,264 | |||||||||||
Signify Member | ||||||||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||||||||
Profit (loss) from discontinued operations | € 198 | |||||||||||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||||||||
[3] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Profit (loss) from discontinued operations | [1],[2] | € (213) | € 843 | [3] | € 660 | [3] |
Combined Lumileds and Automotive Lighting businesses [Member] | ||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Profit (loss) from discontinued operations | 12 | (29) | 282 | |||
Discontinued operations [member] | ||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Profit (loss) from discontinued operations | (213) | 843 | 660 | |||
Other operations [Member] | ||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Profit (loss) from discontinued operations | (27) | (24) | 134 | |||
Signify Member | ||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Profit (loss) from discontinued operations | € (198) | € 896 | € 244 | |||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||
[3] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies |
Discontinued operations and a_5
Discontinued operations and assets classified as held for sale - Results of Signify (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Gain (Loss) Discontinued Operations Before Tax | € 538 | |||||
Tax expense relating to profit (loss) from ordinary activities of discontinued operations | € 14 | 182 | € 181 | |||
Gain (loss) discontinued operations tax | 61 | |||||
Profit (loss) from discontinued operations, total | [1],[2] | (213) | 843 | [3] | 660 | [3] |
Signify Member | ||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Profit (loss) from discontinued operations, total | 198 | |||||
US Tax Cuts and Jobs Act [Member] | Signify Member | ||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Tax expense relating to profit (loss) from ordinary activities of discontinued operations | 8 | |||||
Signify Member | ||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | ||||||
Discontinued Operations, Expenses | 18 | 5,776 | 6,726 | |||
Adjustments for fair value losses (gains) | 218 | 104 | ||||
Dividend income | 32 | |||||
Profit Loss Discontinued Operations, Before Tax | (204) | 977 | 368 | |||
Tax expense relating to profit (loss) from ordinary activities of discontinued operations | (7) | 150 | 124 | |||
Profit (loss) from discontinued operations, total | € (198) | € 896 | € 244 | |||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||
[3] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies |
Discontinued operations and a_6
Discontinued operations and assets classified as held for sale - Results of combined Lumileds and Automotive businesses (Detail) - EUR (€) € in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Tax expense relating to profit (loss) from ordinary activities of discontinued operations | € 14 | € 182 | € 181 | ||||
Profit (loss) from discontinued operations, total | [1],[2] | (213) | 843 | [3] | 660 | [3] | |
Combined Lumileds and Automotive Lighting businesses [Member] | |||||||
Discontinued operations and assets classified as held for sale - Text Details (Detail) [Line Items] | |||||||
Discontinued Operations, Revenue | 804 | 1,711 | |||||
Discontinued Operations, Expenses | (5) | 630 | 1,376 | ||||
Result on the sale of discontinued operations net of tax | € 8 | 8 | (98) | ||||
Profit Loss Discontinued Operations, Before Tax | 13 | 76 | 335 | ||||
Tax expense relating to profit (loss) from ordinary activities of discontinued operations | (1) | (25) | (53) | ||||
Tax expense relating to gain (loss) on discontinuance | 26 | ||||||
US tax reform act | [4] | (107) | |||||
Profit (loss) from discontinued operations, total | € 12 | € (29) | € 282 | ||||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[3] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies | ||||||
[4] | For further details related to US Tax Cuts and Jobs Act please refer to Income Taxes |
Discontinued operations and a_7
Discontinued operations and assets classified as held for sale - Discontinued operations cash flows (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Discontinued operations and assets classified as held for sale [Abstract] | ||||
Cash flows from (used in) operating activities, discontinued operations | € (15) | € 350 | € 1,037 | |
Cash flows from (used in) investing activities, discontinued operations | 662 | 856 | (112) | |
Cash flows from (used in) financing activities, discontinued operations | (144) | 1,226 | ||
Increase (decrease) in cash and cash equivalents, discontinued operations, total | [1] | € 647 | € 1,063 | € 2,151 |
[1] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Acquisitions and divestments -
Acquisitions and divestments - Text Details (Detail) € in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 31, 2017EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Jul. 09, 2018EUR (€) | Aug. 09, 2017EUR (€) | Aug. 09, 2017$ / shares | Jul. 09, 2017EUR (€) | |
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Aggregated net cash outflow for acquisitions | € 476 | € 2,333 | ||||||
Contingent liabilities recognised as of acquisition date | € 366 | 366 | ||||||
Aggregated impact on goodwill | 430 | 1,584 | ||||||
Aggregated impact on other intangible assets | 443 | 898 | ||||||
Goodwill | € 8,503 | 8,503 | 7,731 | |||||
Aggregated net cash consideration for divestments | € 68 | |||||||
Technology-based intangible assets [member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Remaining amortisation period of intangible assets material to entity | 10 | 10 | ||||||
Acquisitions and divestments [Domain] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Aggregated net cash consideration for divestments | 54 | |||||||
EPDSolutionsLtd[Member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Contingent liabilities recognised as of acquisition date | € 239 | € 239 | € 239 | |||||
Cash transferred | 250 | |||||||
Cash and cash equivalents recognised as of acquisition date | 2 | 2 | 2 | |||||
Acquisition-related costs | 6 | |||||||
Goodwill | 262 | 262 | 262 | |||||
Identifiable intangible assets recognised as of acquisition date | 227 | 227 | € 227 | |||||
Discount rate applied to cash flow projections | 14.40% | |||||||
Remaining nine acquisitions [Member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Aggregated net cash outflow for acquisitions | 425 | |||||||
Aggregated impact on goodwill | 317 | |||||||
Aggregated impact on other intangible assets | 228 | |||||||
Increase (decrease) in goodwill | 24 | |||||||
Changes In Other Intangible Assets | 24 | |||||||
Remaining nine acquisitions [Member] | Bottom of range [member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Individual net cash outflow for acquisitions | 3 | |||||||
Remaining nine acquisitions [Member] | Top of range [member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Individual net cash outflow for acquisitions | € 117 | |||||||
Remaining eight acquisition [Member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Aggregated net cash outflow for acquisitions | 228 | |||||||
Contingent liabilities recognised as of acquisition date | € 127 | 127 | ||||||
Aggregated impact on goodwill | 168 | |||||||
Aggregated impact on other intangible assets | 216 | |||||||
Remaining eight acquisition [Member] | Bottom of range [member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Individual net cash outflow for acquisitions | 2 | |||||||
Remaining eight acquisition [Member] | Top of range [member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Individual net cash outflow for acquisitions | € 90 | |||||||
The Spectranetics Corporation [Member] | ||||||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||||||
Cash transferred | € 1,441 | |||||||
Cash and cash equivalents recognised as of acquisition date | 53 | |||||||
Goodwill | € 1,266 | |||||||
Identifiable intangible assets recognised as of acquisition date | € 670 | |||||||
Purchase of businesses, paid in cash, per share | $ / shares | $ 38.50 | |||||||
Countries of presence | 11 | |||||||
Number of employees | 900 | |||||||
Net cash outflow for acquisitions | € 1,908 | |||||||
Settlement of outstanding stock options | 94 | |||||||
Payoff of certain debt | 378 | |||||||
Settlement of various other items | € 48 |
Acquisitions and divestments _2
Acquisitions and divestments - Opening Balance sheet (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Jul. 09, 2018 | Dec. 31, 2017 |
Acquisitions and divestments - Text Details (Detail) [Line Items] | |||
Goodwill | € 8,503 | € 7,731 | |
Contingent liabilities recognised as of acquisition date | 366 | ||
EPDSolutionsLtd[Member] | |||
Acquisitions and divestments - Text Details (Detail) [Line Items] | |||
Goodwill | 262 | € 262 | |
Identifiable intangible assets recognised as of acquisition date | 227 | 227 | |
Property, plant and equipment recognised as of acquisition date | 0 | ||
Deferred tax assets recognised as of acquisition date | 0 | ||
Inventory recognised as of acquisition date | 0 | ||
Receivables And Other Current Assets | 0 | ||
Cash and cash equivalents recognised as of acquisition date | 2 | 2 | |
Trade and other payables recognised as of acquisition date | (2) | ||
Deferred tax liabilities recognised as of acquisition date | 0 | ||
Contingent liabilities recognised as of acquisition date | 239 | € 239 | |
Assets (liabilities) | 250 | ||
Financed by equity | € (250) |
Acquisitions and divestments _3
Acquisitions and divestments - Opening Balance sheet as of acquisition date (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 09, 2017 | Jul. 09, 2017 |
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||
Goodwill | € 8,503 | € 7,731 | ||
The Spectranetics Corporation [Member] | ||||
Acquisitions and divestments - Text Details (Detail) [Line Items] | ||||
Goodwill | € 1,266 | |||
Identifiable intangible assets recognised as of acquisition date | € 670 | |||
Property, plant and equipment recognised as of acquisition date | 64 | |||
Deferred tax assets recognised as of acquisition date | 136 | |||
Inventory recognised as of acquisition date | 35 | |||
Receivables and other current assets as of acquisition date | 42 | |||
Cash and cash equivalents recognised as of acquisition date | 53 | |||
Trade and other payables recognised as of acquisition date | (53) | |||
Deferred tax liabilities recognised as of acquisition date | (253) | |||
Assets and liabilities as of acquisition date, total | 1,960 | |||
Financed by equity | € (1,960) |
Interests in entities - Text De
Interests in entities - Text Details (Detail) - EUR (€) shares in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Number of consolidated subsidiaries not wholly owned | 6 | 4 | ||||
Revenue | € 18,121 | [1] | € 17,780 | € 17,422 | ||
Profit (loss) | [3] | 1,097 | [2] | 1,870 | € 1,491 | |
Associates [member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Net cash outflow for acquisitions | 107 | |||||
Subsidiaries with material non-controlling interests [member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Revenue | 627 | |||||
Profit (loss) | € 27 | |||||
Signify Member | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Interest in entity | 16.50% | |||||
Number of shares sold | 4,040 | |||||
Philips Medical Capital LLC [Member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Stake in unconsolidated structured entity | € 24 | € 29 | ||||
Signify Member | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Interest in entity | 16.50% | 29.01% | ||||
Number of shares sold | 16,220 | |||||
Unconsolidated structured entities [member] | ||||||
Interests in entities - Text Details (Detail) [Line Items] | ||||||
Materiality threshold on group sales, income from operations or net income | 5.00% | |||||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | |||||
[2] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||
[3] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Interests in entities - Interes
Interests in entities - Interests in group companies (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Philips (China) Investment Company Ltd [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips (China) Investment Company, Ltd. |
Principal place of business of subsidiary | China |
Philips Consumer Lifestyle BV [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Consumer Lifestyle B.V. |
Principal place of business of subsidiary | Netherlands |
Philips GmbH [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips GmbH |
Principal place of business of subsidiary | Germany |
Philips Medical Systems Nederland BV [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Medical Systems Nederland B.V. |
Principal place of business of subsidiary | Netherlands |
Philips Medizin Systeme Boblingen GmbH [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Medizin Systeme Böblingen GmbH |
Principal place of business of subsidiary | Germany |
Philips North America LLC [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips North America LLC |
Principal place of business of subsidiary | United States |
Philips Oral Healthcare LLC [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Oral Healthcare, LLC |
Principal place of business of subsidiary | United States |
Philips Ultrasound Inc [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Philips Ultrasound, Inc. |
Principal place of business of subsidiary | United States |
Respironics Inc [Member] | |
Interests in entities - Text Details (Detail) [Line Items] | |
Name of subsidiary | Respironics, Inc. |
Principal place of business of subsidiary | United States |
Income from operations - Text D
Income from operations - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income from operations - Text Details (Detail) [Line Items] | ||||
Lease-related fuel, electricity and taxes | € 32 | € 38 | € 30 | |
Income from government grants | 81 | 90 | 79 | |
Transaction price allocated to remaining performance obligations | € 10,637 | |||
Percentage of remaining performance obligations within 1 year | 47.00% | |||
Employee benefits expense | € 5,827 | 5,824 | 5,298 | |
Share-based compensation expenses [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Employee benefits expense | € 102 | € 122 | € 95 | |
Not later than one year [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Explanation of when entity expects to recognise transaction price allocated to remaining performance obligations as revenue | 11 |
Income from operations - Sales
Income from operations - Sales and costs by nature (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income from operations [Abstract] | |||||
Revenue | € 18,121 | [1] | € 17,780 | € 17,422 | |
Raw materials and consumables used | 4,826 | 4,918 | 5,030 | ||
Employee benefits expense | 5,827 | 5,824 | 5,298 | ||
Depreciation and amortisation expense | [2] | 1,089 | 1,025 | 976 | |
Transportation expense | 605 | 602 | 545 | ||
Advertising expense | 937 | 939 | 915 | ||
Lease expenses, net | [3] | 225 | 227 | 223 | |
Other operational costs | [4] | 2,948 | 2,804 | 2,963 | |
Other gains (losses) | 55 | 76 | (6) | ||
Income from operations | € 1,719 | € 1,517 | € 1,464 | ||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[2] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill | ||||
[3] | Lease expense includes EUR 32 million (2017: EUR 38 million, 2016: EUR 30 million) of other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor | ||||
[4] | Other operational costs contain items which are dissimilar in nature and individually insignificant in amount to disclose separately. These costs contain among others expenses for outsourcing services, mainly in IT and HR, 3rd party workers, consultants, warranty, patents, costs for travelling, external legal services and EUR 81 million government grants recognized in 2018 (2017: EUR 90 million, 2016: EUR 79 million). The grants mainly relate to research and development activities and business development. |
Income from operations - Sale_2
Income from operations - Sales composition (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income from operations [Abstract] | |||||
Revenue from sale of goods | € 14,056 | € 13,974 | € 13,568 | ||
Revenue from rendering of services | 3,325 | 3,477 | 3,478 | ||
Royalty income | 402 | 329 | 375 | ||
Revenue from contracts with customers, total | 17,784 | ||||
Revenue From Other Sources | [1],[2] | 338 | |||
Total revenue | € 18,121 | [3] | € 17,780 | € 17,422 | |
[1] | Other sources mainly includes leases | ||||
[2] | Sales from other sources mainly includes leases | ||||
[3] | Represents revenue from external customers as required by IFRS 8 Operating Segments. |
Income from operations - Disagg
Income from operations - Disaggregation of Sale per segment (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | € 18,121 | [1] | € 17,780 | € 17,422 | |
Revenue from contracts with customers | 17,784 | ||||
Revenue From Other Sources | [2],[3] | 338 | |||
Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 14,270 | ||||
Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 3,514 | ||||
Connected Care & Health Informatics [Member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 3,084 | [4] | 3,163 | 3,158 | |
Revenue from contracts with customers | 3,038 | ||||
Revenue From Other Sources | [5] | 46 | |||
Connected Care & Health Informatics [Member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 2,124 | ||||
Connected Care & Health Informatics [Member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 914 | ||||
Diagnosis & Treatment [Member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 7,245 | [4] | 6,891 | 6,686 | |
Revenue from contracts with customers | 7,212 | ||||
Revenue From Other Sources | [5] | 34 | |||
Diagnosis & Treatment [Member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 4,883 | ||||
Diagnosis & Treatment [Member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 2,328 | ||||
Other [Member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 564 | [4] | 416 | 479 | |
Revenue from contracts with customers | 564 | ||||
Revenue From Other Sources | [5] | 0 | |||
Other [Member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 310 | ||||
Other [Member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 254 | ||||
Personal Health [Member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 7,228 | [4] | 7,310 | 7,099 | |
Revenue from contracts with customers | 6,969 | ||||
Revenue From Other Sources | [5] | 258 | |||
Personal Health [Member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 6,952 | ||||
Personal Health [Member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 18 | ||||
Philips Group [Member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 18,121 | [4] | € 17,780 | € 17,422 | |
Revenue from contracts with customers | 17,784 | ||||
Revenue From Other Sources | [5] | 338 | |||
Philips Group [Member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 14,270 | ||||
Philips Group [Member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | € 3,514 | ||||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[2] | Other sources mainly includes leases | ||||
[3] | Sales from other sources mainly includes leases | ||||
[4] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[5] | Sales from other sources mainly includes leases |
Income from operations - Disa_2
Income from operations - Disaggregation of Sales per geographical cluster (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | € 18,121 | [1] | € 17,780 | € 17,422 | |
Revenue from contracts with customers | 17,784 | ||||
Revenue From Other Sources | [2],[3] | 338 | |||
Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 14,270 | ||||
Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 3,514 | ||||
Growth Geographies [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 5,901 | [1] | 5,862 | 5,596 | |
Revenue from contracts with customers | 5,898 | ||||
Revenue From Other Sources | [3] | 2 | |||
Growth Geographies [member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 5,200 | ||||
Growth Geographies [member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 699 | ||||
North America [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 6,338 | [1] | 6,409 | 6,279 | |
Revenue from contracts with customers | 6,311 | ||||
Revenue From Other Sources | [3] | 27 | |||
North America [member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 4,616 | ||||
North America [member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 1,696 | ||||
Other Mature Geographies [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 1,892 | [1] | 1,707 | 1,792 | |
Revenue from contracts with customers | 1,619 | ||||
Revenue From Other Sources | [3] | 273 | |||
Other Mature Geographies [member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 1,280 | ||||
Other Mature Geographies [member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 339 | ||||
Total Mature Geographies [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 12,221 | [1] | 11,918 | 11,826 | |
Revenue from contracts with customers | 11,885 | ||||
Revenue From Other Sources | [3] | 335 | |||
Total Mature Geographies [member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 9,070 | ||||
Total Mature Geographies [member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 2,815 | ||||
Western Europe [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Total revenue | 3,990 | [1] | € 3,802 | € 3,756 | |
Revenue from contracts with customers | 3,955 | ||||
Revenue From Other Sources | [3] | 35 | |||
Western Europe [member] | Goods or services transferred at point in time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | 3,174 | ||||
Western Europe [member] | Goods or services transferred over time [member] | |||||
Income from operations - Text Details (Detail) [Line Items] | |||||
Revenue from contracts with customers | € 781 | ||||
[1] | Represents revenue from external customers as required by IFRS 8 Operating Segments. | ||||
[2] | Other sources mainly includes leases | ||||
[3] | Sales from other sources mainly includes leases |
Income from operations - Employ
Income from operations - Employee benefit expenses (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income from operations [Abstract] | ||||
Wages and salaries | [1] | € 4,849 | € 4,856 | € 4,422 |
Post-employment benefits costs | 351 | 347 | 279 | |
Social security contributions | 524 | 514 | 489 | |
Voluntary | 103 | 108 | 108 | |
Total employee benefits expense | € 5,827 | € 5,824 | € 5,298 | |
[1] | Salaries and wages includes EUR 102 million (2017: EUR 122 million, 2016: EUR 95 million) of share-based compensation expenses. |
Income from operations - Empl_2
Income from operations - Employees (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 74,888 | 115,392 | 113,572 |
Philips Group [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 74,888 | 115,392 | 113,572 |
Continuing operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 74,888 | 71,895 | 69,602 |
Continuing operations [member] | Employees [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 67,649 | 63,798 | 61,552 |
Continuing operations [member] | Other [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 26,175 | 26,314 | 24,565 |
Continuing operations [member] | Philips Group [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 74,888 | 71,895 | 69,602 |
Continuing operations [member] | Production [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 30,774 | 27,697 | 27,899 |
Continuing operations [member] | Research & development [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 10,700 | 9,787 | 9,087 |
Continuing operations [member] | 3rd party workers [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 7,239 | 8,098 | 8,050 |
Discontinued operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 43,497 | 43,971 | |
Discontinued operations [member] | Philips Group [Member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 43,497 | 43,971 |
Income from operations - Empl_3
Income from operations - Employees per geographical location (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 74,888 | 115,392 | 113,572 |
Continuing operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 74,888 | 71,895 | 69,602 |
Continuing operations [member] | Country of domicile [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 11,427 | 11,308 | 11,199 |
Continuing operations [member] | Foreign countries [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 63,460 | 60,587 | 58,403 |
Discontinued operations [member] | |||
Income from operations - Text Details (Detail) [Line Items] | |||
Average number of employees | 43,497 | 43,971 |
Income from operations - Deprec
Income from operations - Depreciation and amortization (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income from operations - Text Details (Detail) [Line Items] | ||||
Total depreciation and amortisation expense | [1] | € 1,089 | € 1,025 | € 976 |
Capitalised development expenditure [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Amortisation expense | [1] | 240 | 277 | 225 |
Computer software [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Amortisation expense | [1] | 64 | 50 | 49 |
Other intangible assets [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Amortisation expense | [1] | 347 | 260 | 244 |
Property, plant and equipment [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Depreciation expense | [1] | € 438 | € 437 | € 458 |
[1] | Includes impairments; for impairment values please refer to Property, plant and equipment Intangible assets excluding goodwill |
Income from operations - Agreed
Income from operations - Agreed fees (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | € 11.3 | € 17.9 | € 18.4 | |
Audit-related fees | [1] | 0.9 | 1.5 | 2.3 |
Acquisitions and divestments | 0 | |||
Sustainability assurance | 0.4 | 0.7 | ||
Auditor's remuneration | 12.2 | 19.4 | 20.7 | |
Acquisitions and divestments [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0.9 | |||
Consolidated financial statements [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 8.8 | 13.4 | 13.4 | |
EY NL [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | [1],[2] | 0.5 | 0.8 | 1.5 |
Auditor's remuneration | [2] | 7 | 9.7 | 10.3 |
EY Network [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | [1] | 0.3 | 0.7 | 0.8 |
Auditor's remuneration | 5.2 | 9.6 | 10.4 | |
EY Network Acquisitions and divestments [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0 | 0.1 | ||
EY Network Audit Services [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 4.9 | 8.9 | 9.6 | |
EY Network Consolidated financial statements [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 2.3 | 4.4 | ||
EY Network Other [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0.3 | 0.7 | 0.7 | |
EY Network Statutory financial statement [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | 2.5 | 4.5 | ||
EY Network Sustainability assurance [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0 | 0 | ||
EY NL Acquisitions and divestments [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | [2] | 0 | 0.8 | |
EY NL Audit Services [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | [2] | 6.5 | 9 | 8.8 |
EY NL Consolidated financial statements [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | [2] | 6.5 | 9 | |
EY NL Other [member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | [2] | 0.1 | 0.1 | |
EY NL Statutory financial statement [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | [2] | 0 | ||
Audit-related fees | [2] | 0.7 | ||
EY NL Sustainability assurance [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | [2] | 0.4 | 0.7 | |
Other services [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | 0.7 | |||
Statutory financial statement [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Auditor's remuneration for audit services | € 2.5 | € 4.5 | 5 | |
Sustainability assurance [Member] | ||||
Income from operations - Text Details (Detail) [Line Items] | ||||
Audit-related fees | € 0.7 | |||
[1] | Also known as Assurance fees | |||
[2] | Ernst & Young Accountants LLP |
Income from operations - Other
Income from operations - Other business income (expenses) (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income from operations [Abstract] | ||||
Gains on disposals of investments | € 45 | € 15 | € 1 | |
Losses on disposals of investments | 0 | 5 | 4 | |
Gains on disposals of non-current assets | 20 | 96 | 4 | |
Losses on disposals of non-current assets | 1 | 1 | 1 | |
Gains on disposals of other remaining business | 23 | 41 | 13 | |
Losses on disposals of other remaining business | 32 | 62 | 17 | |
Impairment of goodwill | [1] | (9) | (1) | |
Other gains (losses), total | 55 | 76 | (6) | |
Other income | 88 | 152 | 17 | |
Other expense, by function | € 33 | € 76 | € 23 | |
[1] | Further information on goodwill movement can be found in Goodwill |
Financial income and expenses -
Financial income and expenses - Text Details (Detail) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial income and expenses [Abstract] | ||||
Finance income (cost) | € (213) | € (137) | € (442) | |
Increase (decrease) in financial income expense | (76) | (305) | ||
Financial charges related to early redemption of bonds | € (153) | (46) | ||
Increase (decrease) in net interest expense | (25) | (117) | ||
Impairment loss on financial assets | € 0 | € 2 | € 24 |
Financial income and expenses_2
Financial income and expenses - Financial income and expenses (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial income and expenses [Abstract] | |||
Interest income, total | € 31 | € 40 | € 43 |
Interest income on loans and receivables | 8 | 12 | 15 |
Interest income on cash and cash equivalents | 22 | 28 | 28 |
Dividend Income From Financial Assets | 2 | 64 | 4 |
Net Gains From Disposal Of Financial Assets | 6 | 1 | 3 |
Gains (losses) on financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | 7 | ||
Other finance income (cost) | 12 | 14 | 15 |
Finance income, total | 51 | 126 | 65 |
Interest expense, total | 188 | 222 | 342 |
Interest expense on borrowings | 158 | 177 | 288 |
Interest expense on finance leases | 7 | 8 | 7 |
Interest expense (income), net defined benefit liability (asset) | 23 | 37 | 48 |
Provision-related accretion and interest | 15 | 22 | (44) |
Net foreign exchange loss | 2 | 2 | 1 |
Impairment loss on financial assets | 0 | 2 | 24 |
Gains (losses) on financial assets at fair value through profit or loss | 1 | 4 | |
Other finance cost | 58 | 15 | 180 |
Finance costs, total | 264 | 263 | 507 |
Finance income (cost), total | € (213) | € (137) | € (442) |
Income taxes - Text Details (De
Income taxes - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Income taxes - Text Details (Detail) [Line Items] | ||||
Tax expense (income), continuing operations | € 193 | € 349 | € 203 | |
Tax expense relating to profit (loss) from ordinary activities of discontinued operations | € 14 | € 182 | € 181 | |
Applicable tax rate | 25.00% | 25.00% | 25.00% | |
Net deferred tax assets | € 1,676 | € 1,565 | ||
Deferred tax assets | 1,828 | 1,598 | € 1,593 | |
Deferred tax liabilities | 152 | 33 | € 18 | |
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 | 203 | 161 | ||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 186 | 290 | ||
Deductible temporary differences for which no deferred tax asset is recognised | 37 | 42 | ||
Philips Group [Member] | ||||
Income taxes - Text Details (Detail) [Line Items] | ||||
Tax expense (income), continuing operations | € 193 | € 349 | € 203 |
Income taxes - Income tax expen
Income taxes - Income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income taxes - Text Details (Detail) [Line Items] | ||||
Income before taxes continuing operations | [1] | € 1,505 | € 1,381 | € 1,023 |
Current tax expense (income) and adjustments for current tax of prior periods | (314) | (272) | (145) | |
Deferred tax expense (income) recognised in profit or loss | 121 | (77) | (58) | |
Tax expense (income), continuing operations | 193 | 349 | 203 | |
Foreign countries [member] | ||||
Income taxes - Text Details (Detail) [Line Items] | ||||
Income before taxes continuing operations | 869 | 451 | 886 | |
Current tax expense (income) and adjustments for current tax of prior periods | (289) | (258) | (155) | |
Deferred tax expense (income) recognised in profit or loss | 105 | 73 | 37 | |
Tax expense (income), continuing operations | 184 | 184 | 118 | |
Netherlands [Member] | ||||
Income taxes - Text Details (Detail) [Line Items] | ||||
Income before taxes continuing operations | 636 | 929 | 137 | |
Current tax expense (income) and adjustments for current tax of prior periods | (25) | (15) | 10 | |
Deferred tax expense (income) recognised in profit or loss | 16 | (150) | (95) | |
Tax expense (income), continuing operations | € 9 | € 165 | € 85 | |
[1] | Income before tax excludes the result of investments in associates. |
Income taxes - Current income t
Income taxes - Current income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income taxes [Abstract] | |||
Current tax expense (income) | € (318) | € (275) | € (165) |
Adjustments for current tax of prior periods | 4 | 3 | 20 |
Total current tax expense (income) and adjustments for current tax of prior periods | € (314) | € (272) | € (145) |
Income taxes - Deferred income
Income taxes - Deferred income tax expense (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income taxes [Abstract] | |||
Changes to Recognition of Tax Loss and Credit Carry Forwards | € (2) | € 23 | € (37) |
Changes to Recognition of Temporary Differences | 4 | 35 | 31 |
Adjustments for deferred tax of prior periods | 15 | 6 | (1) |
Deferred tax expense (income) relating to tax rate changes or imposition of new taxes | (26) | (72) | 5 |
Deferred tax expense (income) relating to origination and reversal of temporary differences | 130 | (69) | (56) |
Deferred tax expense (income) recognised in profit or loss, total | € 121 | € (77) | € (58) |
Income taxes - Effective income
Income taxes - Effective income tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income taxes [Abstract] | |||
Weighted average statutory income tax rate | 24.90% | 24.50% | 23.30% |
Recognition of previously unrecognized tax loss and credit carryforwards rate | (0.40%) | (2.30%) | (1.90%) |
Unrecognized tax loss and credit carryforwards rate | 0.50% | 0.60% | 5.50% |
Tax rate effect of revenues exempt from taxation | (11.90%) | (9.80%) | (8.20%) |
Tax rate effect of expense not deductible in determining taxable profit (tax loss) | 3.70% | 6.40% | 9.30% |
Withholding and other taxes | 4.50% | 4.00% | 1.20% |
Tax rate effect from change in tax rate | 1.80% | 5.20% | (0.50%) |
Tax rate effect of adjustments for current tax of prior periods | (1.30%) | (0.60%) | (1.80%) |
Tax expenses (benefit) due to other tax liabilities | (8.60%) | (1.70%) | (2.60%) |
Other tax rate effects for reconciliation between accounting profit and tax expense (income) | (0.10%) | 1.50% | (1.30%) |
Average effective tax rate | 12.80% | 25.30% | 19.90% |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax expense (income) recognised in profit or loss | € 121 | € (77) | € (58) | |||
Net deferred tax assets | 1,676 | 1,565 | ||||
Deferred tax assets on taxLoss carryforwards [Member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | 824 | 819 | 1,288 | |||
Deferred tax expense (income) recognised in profit or loss | 11 | (201) | ||||
Other changes in deferred tax assets and liabilities | (6) | [1] | (144) | [2] | ||
Net deferred tax assets | 824 | 819 | ||||
Net deferred tax liabilities | 0 | 0 | ||||
Transfer to assets classified as held for sale | (125) | |||||
Intangible assets and goodwill [member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | (162) | (383) | (676) | |||
Deferred tax expense (income) recognised in profit or loss | 299 | 549 | ||||
Other changes in deferred tax assets and liabilities | (78) | [1] | (228) | [2] | ||
Net deferred tax assets | 90 | 423 | ||||
Net deferred tax liabilities | (252) | (806) | ||||
Transfer to assets classified as held for sale | (28) | |||||
Inventories [Member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | 257 | 231 | 347 | |||
Deferred tax expense (income) recognised in profit or loss | 18 | (34) | ||||
Other changes in deferred tax assets and liabilities | 8 | [1] | (29) | [2] | ||
Net deferred tax assets | 265 | 235 | ||||
Net deferred tax liabilities | (8) | (4) | ||||
Transfer to assets classified as held for sale | (52) | |||||
Net deferred tax assets [Member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | 1,676 | 1,565 | 2,692 | |||
Deferred tax expense (income) recognised in profit or loss | 121 | (77) | ||||
Other changes in deferred tax assets and liabilities | (10) | [1] | (606) | [2] | ||
Net deferred tax assets | 1,828 | 1,598 | ||||
Net deferred tax liabilities | (152) | (33) | ||||
Transfer to assets classified as held for sale | (444) | |||||
Other assets [member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | 50 | 74 | 138 | |||
Deferred tax expense (income) recognised in profit or loss | (38) | 7 | ||||
Other changes in deferred tax assets and liabilities | 15 | [1] | 12 | [2] | ||
Net deferred tax assets | 77 | 96 | ||||
Net deferred tax liabilities | (27) | (22) | ||||
Transfer to assets classified as held for sale | (82) | |||||
Other liabilities [Member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | 428 | 536 | 989 | |||
Deferred tax expense (income) recognised in profit or loss | (137) | (288) | ||||
Other changes in deferred tax assets and liabilities | 30 | [1] | (158) | [2] | ||
Net deferred tax assets | 537 | 596 | ||||
Net deferred tax liabilities | (109) | (61) | ||||
Transfer to assets classified as held for sale | (8) | |||||
Pensions and other employee benefits [Member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | 267 | 265 | 597 | |||
Deferred tax expense (income) recognised in profit or loss | (17) | (126) | ||||
Other changes in deferred tax assets and liabilities | [1] | 19 | ||||
Net deferred tax assets | 269 | 265 | ||||
Net deferred tax liabilities | (2) | 0 | ||||
Transfer to assets classified as held for sale | (149) | |||||
Property, plant and equipment [member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Deferred tax liability (asset) | 12 | 23 | € 10 | |||
Deferred tax expense (income) recognised in profit or loss | (13) | 15 | ||||
Other changes in deferred tax assets and liabilities | 2 | [1] | (2) | [2] | ||
Net deferred tax assets | 32 | 39 | ||||
Net deferred tax liabilities | (20) | (16) | ||||
Set-off deffered tax positions [Member] | ||||||
Income taxes - Text Details (Detail) [Line Items] | ||||||
Net deferred tax assets | (265) | (876) | ||||
Net deferred tax liabilities | € 265 | € 876 | ||||
[1] | Other includes the movements of assets and liabilities recognized in OCI, which includes foreign currency translation differences, acquisitions and divestments. | |||||
[2] | Other includes the movements of assets and liabilities recognized in OCI, which includes foreign currency translation differences and acquisitions, as well as the effects of US Tax Cuts and Jobs Act. |
Income taxes - Expiry years of
Income taxes - Expiry years of net operating loss and credit carryforwards (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | € 5,990 | € 5,827 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 3,077 | 3,351 |
Later than five years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 2,312 | 2,134 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 36 | 410 |
Later than four years and not later than five years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 18 | 1,843 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 6 | 1,809 |
Later than one year and not later than two years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 3 | 5 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 1 | 2 |
Later than three years and not later than four years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 1,911 | 14 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 1,906 | 2 |
Later than two years and not later than three years [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 16 | 15 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 4 | 6 |
Not later than one year [member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 2 | 3 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | 1 | 3 |
Unlimited [Member] | ||
Income taxes - Text Details (Detail) [Line Items] | ||
Net operating loss carryforwards | 1,728 | 1,812 |
Net operating loss and tax credit carryforwards for which no deferred tax asset has been recognized | € 1,123 | € 1,118 |
Earnings per share - Text Detai
Earnings per share - Text Details (Detail) € in Millions | 12 Months Ended |
Dec. 31, 2016EUR (€) | |
Earnings per share [abstract] | |
Securities potentially diluting basic EPS that were not included because the effect would have been antidilutive | € 9 |
Earnings per share - Earnings p
Earnings per share - Earnings per share (Detail) - EUR (€) € / shares in Units, € in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016 | Feb. 28, 2017 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Earnings per share [abstract] | ||||||||||
Income from continuing operations | € 1,310 | [1] | € 1,028 | [2],[3] | € 831 | [2],[3] | ||||
Profit (loss) from continuing operations attributable to non-controlling interests | [3] | 7 | 11 | [2] | 4 | [2] | ||||
Profit (loss) from continuing operations attributable to ordinary equity holders of parent entity | [3] | 1,303 | 1,017 | [2] | 826 | [2] | ||||
Profit (loss) from discontinued operations, total | [3],[4] | (213) | 843 | [2] | 660 | [2] | ||||
Profit (loss) from discontinued operations attributable to non-controlling interests | [2],[3] | 203 | 38 | |||||||
Income from discontinued operations attributable to owners of parent | [3] | € 639 | (213) | 622 | [2] | |||||
Profit (loss), attributable to owners of parent, total | [3] | € 1,090 | € 1,657 | [2] | € 1,448 | [2] | ||||
Weighted average number of ordinary shares outstanding | [3] | 922,987,190 | 928,797,650 | [2] | 918,015,863 | [2] | ||||
Incremental shares from assumed conversions of options | [3] | 2,007,703 | 3,161,267 | [2] | 2,456,616 | [2] | ||||
Incremental shares from assumed conversions of performance shares | [3] | 8,632,652 | 10,757,785 | [2] | 6,985,509 | [2] | ||||
Incremental shares from assumed conversions of restricted share rights | [3] | 2,223,382 | 2,008,162 | [2] | 1,331,163 | [2] | ||||
Incremental shares from assumed conversions of forward contracts | [2],[3] | 407,193 | ||||||||
Dilutive potential common shares | [3] | 12,863,738 | 16,334,406 | [2] | 10,773,289 | [2] | ||||
Diluted weighted average number of shares (after deduction of treasury shares) during the year | [3] | 935,850,928 | 945,132,056 | [2] | 928,789,152 | [2] | ||||
Basic earnings (loss) per share from continuing operations attributable to shareholders | [3] | € 1.41 | € 1.10 | [2] | € 0.90 | [2] | ||||
Basic earnings (loss) per share from discontinued operations | [3] | (0.23) | 0.69 | [2] | 0.68 | [2] | ||||
Basic earnings (loss) per share | [3] | 1.18 | 1.78 | [2] | 1.58 | [2] | ||||
Diluted earnings (loss) per share from continuing operations attributable to shareholders | [3] | 1.39 | 1.08 | [2] | 0.89 | [2] | ||||
Diluted earnings (loss) per share from discontinued operations | [3] | (0.23) | 0.68 | [2] | 0.67 | [2] | ||||
Diluted earnings (loss) per share | [3] | 1.16 | 1.75 | [2] | 1.56 | [2] | ||||
Dividends paid, ordinary shares per share | € 0.80 | € 0.80 | [3] | € 0.80 | [2],[3] | € 0.80 | [2],[3] | |||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||||
[2] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies | |||||||||
[3] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||||
[4] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Property, plant and equipment -
Property, plant and equipment - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant and equipment [abstract] | ||
Land | € 56 | € 50 |
Recognised finance lease as assets | € 334 | € 281 |
Property, plant and equipment_2
Property, plant and equipment - Property, plant and equipment (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | € 1,591 | € 2,155 |
Additions other than through business combinations, property, plant and equipment | 546 | 551 |
Assets available for use | 0 | 0 |
Acquisitions through business combinations, property, plant and equipment | 2 | |
Depreciation, property, plant and equipment | 409 | 434 |
Impairment loss recognised in profit or loss, property, plant and equipment | (30) | (44) |
Increase (decrease) through net exchange differences, property, plant and equipment | 13 | (120) |
Increase (decrease) in property, plant and equipment | 121 | (564) |
Disposals and retirements, property, plant and equipment | 74 | |
Reclassifications | 0 | 4 |
Decrease through classified as held for sale, property, plant and equipment | (596) | |
Property, plant and equipment at end of period | 1,712 | 1,591 |
Construction in progress [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 140 | 179 |
Additions other than through business combinations, property, plant and equipment | 337 | 320 |
Assets available for use | (275) | (309) |
Acquisitions through business combinations, property, plant and equipment | 0 | |
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 |
Increase (decrease) through net exchange differences, property, plant and equipment | 0 | (9) |
Increase (decrease) in property, plant and equipment | 63 | (39) |
Reclassifications | 3 | |
Decrease through classified as held for sale, property, plant and equipment | (44) | |
Property, plant and equipment at end of period | 203 | 140 |
Land and buildings [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 584 | 854 |
Additions other than through business combinations, property, plant and equipment | 20 | 17 |
Assets available for use | 68 | 63 |
Acquisitions through business combinations, property, plant and equipment | 0 | |
Depreciation, property, plant and equipment | 56 | 60 |
Impairment loss recognised in profit or loss, property, plant and equipment | (5) | (1) |
Increase (decrease) through net exchange differences, property, plant and equipment | 11 | (44) |
Increase (decrease) in property, plant and equipment | 37 | (270) |
Disposals and retirements, property, plant and equipment | 0 | |
Reclassifications | 39 | |
Decrease through classified as held for sale, property, plant and equipment | (284) | |
Property, plant and equipment at end of period | 621 | 584 |
Machinery [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 491 | 676 |
Additions other than through business combinations, property, plant and equipment | 126 | 128 |
Assets available for use | 99 | 117 |
Acquisitions through business combinations, property, plant and equipment | (5) | |
Depreciation, property, plant and equipment | 191 | 205 |
Impairment loss recognised in profit or loss, property, plant and equipment | (13) | (32) |
Increase (decrease) through net exchange differences, property, plant and equipment | (2) | (32) |
Increase (decrease) in property, plant and equipment | 13 | (185) |
Disposals and retirements, property, plant and equipment | 71 | |
Reclassifications | (47) | |
Decrease through classified as held for sale, property, plant and equipment | (186) | |
Property, plant and equipment at end of period | 504 | 491 |
Other equipment [Member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 376 | 446 |
Additions other than through business combinations, property, plant and equipment | 64 | 86 |
Assets available for use | 108 | 129 |
Acquisitions through business combinations, property, plant and equipment | 7 | |
Depreciation, property, plant and equipment | 162 | 169 |
Impairment loss recognised in profit or loss, property, plant and equipment | (12) | (11) |
Increase (decrease) through net exchange differences, property, plant and equipment | 4 | (35) |
Increase (decrease) in property, plant and equipment | 7 | (70) |
Disposals and retirements, property, plant and equipment | 3 | |
Reclassifications | 9 | |
Decrease through classified as held for sale, property, plant and equipment | (82) | |
Property, plant and equipment at end of period | 383 | 376 |
Accumulated depreciation, amortisation and impairment [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | (2,818) | |
Property, plant and equipment at end of period | (2,876) | (2,818) |
Accumulated depreciation, amortisation and impairment [member] | Land and buildings [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | (527) | |
Property, plant and equipment at end of period | (572) | (527) |
Accumulated depreciation, amortisation and impairment [member] | Machinery [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | (1,217) | |
Property, plant and equipment at end of period | (1,164) | (1,217) |
Accumulated depreciation and amortisation [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | (2,818) | (4,909) |
Property, plant and equipment at end of period | (2,818) | |
Accumulated depreciation and amortisation [member] | Land and buildings [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | (527) | (912) |
Property, plant and equipment at end of period | (527) | |
Accumulated depreciation and amortisation [member] | Machinery [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | (1,217) | (2,546) |
Property, plant and equipment at end of period | (1,217) | |
Accumulated depreciation and amortisation [member] | Other equipment [Member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | (1,074) | (1,451) |
Property, plant and equipment at end of period | (1,140) | (1,074) |
Gross carrying amount [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 4,408 | 7,064 |
Property, plant and equipment at end of period | 4,588 | 4,408 |
Gross carrying amount [member] | Construction in progress [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 140 | 179 |
Property, plant and equipment at end of period | 203 | 140 |
Gross carrying amount [member] | Land and buildings [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 1,111 | 1,766 |
Property, plant and equipment at end of period | 1,193 | 1,111 |
Gross carrying amount [member] | Machinery [member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 1,708 | 3,222 |
Property, plant and equipment at end of period | 1,669 | 1,708 |
Gross carrying amount [member] | Other equipment [Member] | ||
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | ||
Property, plant and equipment at beginning of period | 1,449 | 1,897 |
Property, plant and equipment at end of period | € 1,523 | € 1,449 |
Property, plant and equipment_3
Property, plant and equipment - Useful lives of property, plant and equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings [member] | |
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | from 5 to 50 years |
Machinery [member] | |
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | from 3 to 20 years |
Other equipment [Member] | |
Property, plant and equipment - Property, plant and equipment (Detail) [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | from 1 to 10 years |
Goodwill - Text Details (Detail
Goodwill - Text Details (Detail) € in Millions | 12 Months Ended | ||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Aging & Caregiving [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Sensitivity pre-tax discount rate | 300 | ||
Sensitivity compound long-term sales growth | (730) | ||
Sensitivity terminal value | (39.00%) | ||
Population Insights & Care [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Sensitivity pre-tax discount rate | 10 | ||
Sensitivity compound long-term sales growth | (30) | ||
Acquisitions and divestments [Domain] | Population Health Management [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Sensitivity terminal value | (3.00%) | ||
Goodwill [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets and goodwill | € 465 | € 1,548 | |
Increase (decrease) through net exchange differences, intangible assets and goodwill | 310 | (836) | |
Decrease through classified as held for sale, intangible assets and goodwill | 3 | 1,878 | |
Intangible assets and goodwill | 8,503 | 7,731 | € 8,898 |
Goodwill [member] | Population Health Management [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 207 | ||
Goodwill [member] | Aging & Caregiving [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 43 | ||
Goodwill [member] | EPDSolutionsLtd[Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets and goodwill | 262 | ||
Goodwill [member] | Remaining acquisitions (excluding EPD) [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets and goodwill | € 203 | ||
Goodwill [member] | Remaining acquisitions (excluding Spectranetics) [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets and goodwill | 293 | ||
Goodwill [member] | The Spectranetics Corporation [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Acquisitions through business combinations, intangible assets and goodwill | € 1,255 |
Goodwill - Goodwill (Detail)
Goodwill - Goodwill (Detail) - Goodwill [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets and goodwill at beginning of period | € 7,731 | € 8,898 |
Acquisitions through business combinations, intangible assets and goodwill | 465 | 1,548 |
Decrease through classified as held for sale, intangible assets and goodwill | 3 | 1,878 |
Increase (decrease) through net exchange differences, intangible assets and goodwill | 310 | (836) |
Intangible assets and goodwill at end of period | 8,503 | 7,731 |
Accumulated impairment [member] | ||
Goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets and goodwill at beginning of period | (1,343) | (2,253) |
Intangible assets and goodwill at end of period | (1,405) | (1,343) |
Gross carrying amount [member] | ||
Goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets and goodwill at beginning of period | 9,074 | 11,151 |
Intangible assets and goodwill at end of period | € 9,908 | € 9,074 |
Goodwill - Goodwill allocated t
Goodwill - Goodwill allocated to the cash-generating units (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill - Text Details (Detail) [Line Items] | |||
Goodwill | € 8,503 | € 7,731 | |
Monitoring and Analytics [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Goodwill | 1,354 | ||
Sleep & Respiratory Care [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Goodwill | 1,925 | 1,819 | |
Goodwill [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 8,503 | 7,731 | € 8,898 |
Goodwill [member] | Image-Guided Therapy [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 2,357 | 2,242 | |
Goodwill [member] | Cash-generating units [member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | 8,503 | 7,731 | |
Goodwill [member] | Other (units carrying a non-significant goodwill balance) [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | € 2,867 | 2,321 | |
Goodwill [member] | Patient Care & Monitoring Solutions [Member] | |||
Goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets and goodwill | € 1,349 |
Goodwill - Key assumptions (Det
Goodwill - Key assumptions (Detail) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Image-Guided Therapy [Member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | 8.10% | [1] | 5.30% | [2] | |
Growth rate used to extrapolate cash flow projections | 5.20% | [1],[3] | 4.00% | [2],[4] | |
Used to calculate terminal value | 2.30% | [1],[5] | 2.30% | [2],[6] | |
Discount rate applied to cash flow projections | 9.30% | 10.90% | |||
Monitoring and Analytics [member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | [1] | 6.50% | |||
Growth rate used to extrapolate cash flow projections | [1],[3] | 4.00% | |||
Used to calculate terminal value | [1],[5] | 2.30% | |||
Discount rate applied to cash flow projections | 9.90% | ||||
Patient Care & Monitoring Solutions [Member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | [2] | 3.80% | |||
Growth rate used to extrapolate cash flow projections | [2],[4] | 4.80% | |||
Used to calculate terminal value | [2],[6] | 2.30% | |||
Discount rate applied to cash flow projections | 12.30% | ||||
Sleep & Respiratory Care [Member] | |||||
Goodwill - Text Details (Detail) [Line Items] | |||||
Initial forecast period | 8.40% | [1] | 7.20% | [2] | |
Growth rate used to extrapolate cash flow projections | 4.80% | [1],[3] | 5.60% | [2],[4] | |
Used to calculate terminal value | 2.30% | [1],[5] | 2.30% | [2],[6] | |
Discount rate applied to cash flow projections | 10.60% | 12.10% | |||
[1] | Compound sales growth rate is the annualized steady nominal growth rate over the forecast period | ||||
[2] | Compound sales growth rate is the annualized steady nominal growth rate over the forecast period | ||||
[3] | Also referred to later in the text as compound long-term sales growth rate | ||||
[4] | Also referred to later in the text as compound long-term sales growth rate | ||||
[5] | The historical long-term growth rate is only applied to the first year after the 4 year extrapolation period, after which no further growth is assumed for the terminal value calculation | ||||
[6] | The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation |
Intangible assets excluding g_3
Intangible assets excluding goodwill - Text Details (Detail) € in Millions | 12 Months Ended | ||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets other than goodwill | € 3,589 | € 3,322 | € 3,552 |
Brand names, customer relationships, technology and other intangible assets [Member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Weighted average expected remaining life | 9.3 | 9.6 | |
Customer-related intangible assets [member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets other than goodwill | € 934 | € 1,004 | € 1,241 |
Customer-related intangible assets [member] | Sleep & Respiratory Care [Member] | |||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |||
Intangible assets other than goodwill | € 278 | € 315 | |
Remaining amortisation period of intangible assets material to entity | 5 | 6 |
Intangible assets excluding g_4
Intangible assets excluding goodwill - Intangible assets excluding goodwill (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | € 3,322 | € 3,552 |
Purchases Intangible assets other than goodwill | 205 | 261 |
Internally generated intangible assets other than goodwill | 203 | 189 |
Acquisitions through business combinations, intangible assets other than goodwill | 926 | |
Amortisation, intangible assets other than goodwill | 415 | (550) |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (549) | (83) |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 94 | (252) |
Increase (decrease) in intangible assets other than goodwill | 267 | (230) |
Assets available for use | 0 | 0 |
Decrease through classified as held for sale, intangible assets other than goodwill | (721) | |
Intangible assets other than goodwill at end of period | 3,589 | 3,322 |
Brand names [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 278 | 455 |
Acquisitions through business combinations, intangible assets other than goodwill | 7 | |
Amortisation, intangible assets other than goodwill | 11 | (40) |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (52) | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 3 | (24) |
Increase (decrease) in intangible assets other than goodwill | (72) | (178) |
Decrease through classified as held for sale, intangible assets other than goodwill | (120) | |
Intangible assets other than goodwill at end of period | 205 | 278 |
Computer software [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 174 | 159 |
Purchases Intangible assets other than goodwill | 92 | 86 |
Acquisitions through business combinations, intangible assets other than goodwill | 2 | |
Amortisation, intangible assets other than goodwill | 0 | (52) |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (59) | (1) |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 2 | (1) |
Increase (decrease) in intangible assets other than goodwill | 30 | 15 |
Decrease through classified as held for sale, intangible assets other than goodwill | (19) | |
Intangible assets other than goodwill at end of period | 204 | 174 |
Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 1,004 | 1,241 |
Purchases Intangible assets other than goodwill | 7 | 0 |
Acquisitions through business combinations, intangible assets other than goodwill | 431 | |
Amortisation, intangible assets other than goodwill | 17 | (142) |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (114) | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 36 | (89) |
Increase (decrease) in intangible assets other than goodwill | (70) | (238) |
Decrease through classified as held for sale, intangible assets other than goodwill | (438) | |
Intangible assets other than goodwill at end of period | 934 | 1,004 |
Other intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 21 | 34 |
Purchases Intangible assets other than goodwill | 1 | 3 |
Acquisitions through business combinations, intangible assets other than goodwill | 16 | |
Amortisation, intangible assets other than goodwill | 56 | (3) |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (4) | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 3 | (23) |
Increase (decrease) in intangible assets other than goodwill | 53 | (13) |
Decrease through classified as held for sale, intangible assets other than goodwill | (6) | |
Intangible assets other than goodwill at end of period | 75 | 21 |
Product development construction in progress [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 436 | 542 |
Purchases Intangible assets other than goodwill | 92 | 149 |
Internally generated intangible assets other than goodwill | 203 | 189 |
Acquisitions through business combinations, intangible assets other than goodwill | (256) | |
Amortisation, intangible assets other than goodwill | 0 | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (27) | |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 8 | (43) |
Increase (decrease) in intangible assets other than goodwill | 45 | (106) |
Assets available for use | (363) | |
Decrease through classified as held for sale, intangible assets other than goodwill | (11) | |
Intangible assets other than goodwill at end of period | 481 | 436 |
Product development [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 586 | 537 |
Acquisitions through business combinations, intangible assets other than goodwill | 256 | |
Amortisation, intangible assets other than goodwill | (213) | |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (221) | (43) |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 15 | (35) |
Increase (decrease) in intangible assets other than goodwill | 34 | 49 |
Assets available for use | 363 | |
Decrease through classified as held for sale, intangible assets other than goodwill | (23) | |
Intangible assets other than goodwill at end of period | 621 | 586 |
Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 824 | 583 |
Purchases Intangible assets other than goodwill | 14 | 23 |
Acquisitions through business combinations, intangible assets other than goodwill | 470 | |
Amortisation, intangible assets other than goodwill | 330 | (100) |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | (116) | (12) |
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 27 | (37) |
Increase (decrease) in intangible assets other than goodwill | 246 | 241 |
Decrease through classified as held for sale, intangible assets other than goodwill | (103) | |
Intangible assets other than goodwill at end of period | 1,070 | 824 |
Accumulated depreciation, amortisation and impairment [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (4,720) | (6,230) |
Intangible assets other than goodwill at end of period | (5,408) | (4,720) |
Accumulated depreciation, amortisation and impairment [member] | Brand names [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (392) | (633) |
Intangible assets other than goodwill at end of period | (484) | (392) |
Accumulated depreciation, amortisation and impairment [member] | Computer software [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (431) | (421) |
Intangible assets other than goodwill at end of period | (480) | (431) |
Accumulated depreciation, amortisation and impairment [member] | Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,338) | (2,188) |
Intangible assets other than goodwill at end of period | (1,488) | (1,338) |
Accumulated depreciation, amortisation and impairment [member] | Other intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (84) | (99) |
Intangible assets other than goodwill at end of period | (93) | (84) |
Accumulated depreciation, amortisation and impairment [member] | Product development construction in progress [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (51) | (36) |
Intangible assets other than goodwill at end of period | (51) | (51) |
Accumulated depreciation, amortisation and impairment [member] | Product development [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,262) | (1,362) |
Intangible assets other than goodwill at end of period | (1,483) | (1,262) |
Accumulated depreciation, amortisation and impairment [member] | Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | (1,161) | (1,491) |
Intangible assets other than goodwill at end of period | (1,330) | (1,161) |
Gross carrying amount [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 8,042 | 9,782 |
Intangible assets other than goodwill at end of period | 8,997 | 8,042 |
Gross carrying amount [member] | Brand names [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 670 | 1,088 |
Intangible assets other than goodwill at end of period | 689 | 670 |
Gross carrying amount [member] | Computer software [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 605 | 580 |
Intangible assets other than goodwill at end of period | 684 | 605 |
Gross carrying amount [member] | Customer-related intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 2,342 | 3,429 |
Intangible assets other than goodwill at end of period | 2,421 | 2,342 |
Gross carrying amount [member] | Other intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 105 | 134 |
Intangible assets other than goodwill at end of period | 168 | 105 |
Gross carrying amount [member] | Product development construction in progress [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 487 | 578 |
Intangible assets other than goodwill at end of period | 532 | 487 |
Gross carrying amount [member] | Product development [Member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 1,848 | 1,899 |
Intangible assets other than goodwill at end of period | 2,103 | 1,848 |
Gross carrying amount [member] | Technology-based intangible assets [member] | ||
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | ||
Intangible assets other than goodwill at beginning of period | 1,985 | 2,074 |
Intangible assets other than goodwill at end of period | € 2,400 | € 1,985 |
Intangible assets excluding g_5
Intangible assets excluding goodwill - Expected useful lives of intangible assets excluding goodwill (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Brand names [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 2-20 |
Capitalised development expenditure [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 3-7 |
Computer software [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 1-10 |
Customer-related intangible assets [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 2-25 |
Other intangible assets [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 1-10 |
Technology-based intangible assets [member] | |
Intangible assets excluding goodwill - Text Details (Detail) [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | 3-20 |
Other financial assets - Text D
Other financial assets - Text Details (Detail) - EUR (€) € in Millions | 2 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other financial assets - Text Details (Detail) [Line Items] | |||
Increase (Decrease) in current financial assets | € 434 | ||
Other current financial assets | € 436 | € 2 | |
Combined Lumileds and Automotive Lighting businesses [Member] | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Non-current financial assets at fair value through other comprehensive income | € 112 | € 243 | |
Signify Member | |||
Other financial assets - Text Details (Detail) [Line Items] | |||
Interest in entity | 16.50% | 29.01% |
Other financial assets - Other
Other financial assets - Other non-current financial assets (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other financial assets - Text Details (Detail) [Line Items] | ||||
Non-current financial assets at fair value through profit or loss | € 116 | € 104 | [1] | |
Non-current financial assets measured at fair value through other comprehensive income | 198 | 369 | [1] | |
Non-current financial assets at amortised cost | 46 | 114 | [1],[2] | |
Other non-current financial assets, total | 360 | 587 | [1] | |
Acquisitions | 45 | |||
Sales redemptions | (116) | |||
Value adjustment through OCI | (164) | |||
Value adjustment through P&L | (1) | |||
Translation Differences And Other | 10 | |||
Reclassifications | 0 | 4 | ||
Financial assets at amortised cost, category [member] | ||||
Other financial assets - Text Details (Detail) [Line Items] | ||||
Acquisitions | 14 | |||
Sales redemptions | (78) | |||
Value adjustment through P&L | 0 | |||
Translation Differences And Other | (4) | |||
Reclassifications | 0 | |||
Financial assets at fair value through other comprehensive income, category [member] | ||||
Other financial assets - Text Details (Detail) [Line Items] | ||||
Acquisitions | 1 | |||
Sales redemptions | (18) | |||
Value adjustment through OCI | (164) | |||
Translation Differences And Other | 12 | |||
Reclassifications | (2) | |||
Financial assets at fair value through profit or loss, category [member] | ||||
Other financial assets - Text Details (Detail) [Line Items] | ||||
Other non-current financial assets, total | 27 | € 27 | ||
Acquisitions | 30 | |||
Sales redemptions | (20) | (3) | ||
Value adjustment through OCI | 0 | |||
Value adjustment through P&L | (2) | |||
Translation Differences And Other | 2 | (6) | ||
Reclassifications | € 2 | 1 | ||
Acquisitions Additions | 0 | |||
Value adjustments | 8 | |||
Financial assets available-for-sale, category [member] | ||||
Other financial assets - Text Details (Detail) [Line Items] | ||||
Other non-current financial assets, total | 446 | 172 | ||
Sales redemptions | (23) | |||
Translation Differences And Other | (24) | |||
Reclassifications | (1) | |||
Acquisitions Additions | 368 | |||
Impairment loss | (1) | |||
Value adjustments | (46) | |||
Held-to-maturity investments, category [member] | ||||
Other financial assets - Text Details (Detail) [Line Items] | ||||
Other non-current financial assets, total | 1 | 2 | ||
Sales redemptions | 0 | |||
Translation Differences And Other | (1) | |||
Reclassifications | 0 | |||
Acquisitions Additions | 0 | |||
Loans and receivables, category [member] | ||||
Other financial assets - Text Details (Detail) [Line Items] | ||||
Other non-current financial assets, total | 114 | € 134 | ||
Sales redemptions | (8) | |||
Translation Differences And Other | (20) | |||
Reclassifications | 2 | |||
Acquisitions Additions | 5 | |||
Impairment loss | 0 | |||
Value adjustments | € 0 | |||
[1] | Refer to IFRS 9 disclosure in Significant accounting policies note for the impact of IFRS 9 on 2018 opening balance. | |||
[2] | Previously reported as loans and receivables. |
Other assets - Text Details (De
Other assets - Text Details (Detail) - Philips Group [Member] - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets [Member] | ||
Other assets - Text Details (Detail) [Line Items] | ||
Accrued income | € 276 | € 186 |
Current prepaid expenses | 193 | 206 |
Non-current assets [member] | ||
Other assets - Text Details (Detail) [Line Items] | ||
Non-current prepaid expenses | € 47 | € 74 |
Inventories - Text Details (Det
Inventories - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories [Abstract] | ||
Inventory write-down | € 159 | € 150 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories [Abstract] | ||
Current raw materials and current production supplies | € 876 | € 715 |
Current work in progress | 366 | 358 |
Current finished goods | 1,432 | 1,280 |
Total current inventories | € 2,674 | € 2,353 |
Receivables - Text Details (Det
Receivables - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables - Text Details (Detail) [Line Items] | |||
Signify indemnification | € 59 | ||
Current trade receivables | 3,805 | € 3,609 | |
Current contract assets | 232 | 171 | |
Increase (decrease) driven by timing differences between billing terms and services provided, contract assets | 61 | ||
Associates [member] | |||
Receivables - Text Details (Detail) [Line Items] | |||
Other current receivables | 27 | ||
Diagnosis & Treatment [Member] | |||
Receivables - Text Details (Detail) [Line Items] | |||
Loans and advances to customers | 44 | 47 | |
Current trade receivables | 1,601 | 1,489 | |
Other US [Member] | |||
Receivables - Text Details (Detail) [Line Items] | |||
Insurance receivables | 41 | 47 | |
Philips Group [Member] | |||
Receivables - Text Details (Detail) [Line Items] | |||
Current trade receivables | 3,805 | 3,609 | |
Other current receivables | 203 | ||
Philips Group [Member] | Financial assets individually assessed for credit losses [member] | |||
Receivables - Text Details (Detail) [Line Items] | |||
Allowance account for credit losses of financial assets | € 181 | € 197 | € 289 |
Receivables - Accounts receivab
Receivables - Accounts receivables-net (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 3,805 | € 3,609 |
Connected Care & Health Informatics [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 723 | 706 |
Diagnosis & Treatment [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 1,601 | 1,489 |
Other Segments [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 70 | 72 |
Personal Health [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 1,411 | 1,341 |
Philips Group [Member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 3,805 | € 3,609 |
Receivables - Aging analysis (D
Receivables - Aging analysis (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 3,805 | € 3,609 |
Current [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 3,222 | 3,046 |
Later than one month and not later than six months [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 270 | 242 |
Later than six months [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | 85 | 63 |
Not later than one month [member] | ||
Receivables - Text Details (Detail) [Line Items] | ||
Current trade receivables | € 228 | € 256 |
Receivables - Allowance for acc
Receivables - Allowance for accounts receivable (Detail) - Doubtful accounts receivable [Member] - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Receivables - Text Details (Detail) [Line Items] | ||||
Allowance account for credit losses of financial assets at beginning of period | € 215 | € 318 | € 301 | |
Additional allowance recognised in profit or loss, allowance account for credit losses of financial assets | 28 | 41 | 76 | |
Utilisation, allowance account for credit losses of financial assets | [1] | (28) | (36) | (64) |
Transfer to assets classified as held for sale | (92) | |||
Increase (decrease) through other changes, allowance account for credit losses of financial assets | (21) | (16) | 5 | |
Allowance account for credit losses of financial assets at end of period | € 194 | € 215 | € 318 | |
[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 | 12 Months Ended | ||||||
Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | ||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Retained earnings | € 8,571 | |||||||
Increase (Decrease) retained earnings connected to long-term incentive | € 20 | |||||||
Exercised Forward Contracts | 12,420,000 | |||||||
Increase (Decrease) retained earnings connected to capital reduction | € 423 | |||||||
The number of shares bought back after selling (unwinding) of options | 2,467,612 | |||||||
Dividends paid, ordinary shares per share | € 0.80 | € 0.80 | [1] | € 0.80 | [1],[2] | € 0.80 | [1],[2] | |
Dividends paid, ordinary shares | € 742 | € 732 | ||||||
Percentage of shareholders electing share dividend | 46.00% | 48.00% | 55.00% | |||||
Number of shares issued | 9,533,233 | 11,264,163 | 17,344,462 | |||||
Settlement of cash dividend | € 400 | € 384 | € 330 | |||||
Proposed dividend per common share | € 0.85 | |||||||
Shareholder equity subject to limitations | € 1,558 | 1,283 | ||||||
Shareholder Equity Subject To Limitations Ordinary Shares | 185 | 188 | ||||||
Legal reserves required by Dutch law | 634 | 703 | ||||||
Currency translation differences | € 739 | 392 | ||||||
Unrealized losses from available-for-sale financial assets | € 30 | |||||||
Capital reduction [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Number of treasury shares | 18,600,000 | |||||||
Long term incentive [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Number of treasury shares | 10,000,000 | |||||||
Euro [Member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Number of call options unwound | 1,263,486 | |||||||
Number of options outstanding | 2,023,639 | |||||||
Dividends paid, ordinary shares | € 738 | |||||||
US Dollar [Member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Number of call options unwound | 1,204,126 | |||||||
Number of options outstanding | 1,770,218 | |||||||
Dividend distribution [Member] | Bottom of range [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Dividend payout ratio | 40.00% | |||||||
Dividend distribution [Member] | Top of range [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Dividend payout ratio | 50.00% | |||||||
Forward share repurchase contracts [Member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Number of shares for the unsettled (open) forward contracts | 10,000,000 | 31,020,000 | ||||||
Retained earnings | € 319 | |||||||
Price per share for the unsettled part | € 27.03 | |||||||
Forward share repurchase contracts [Member] | Weighted average [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Price per share for the unsettled part | € 32.22 | |||||||
Ordinary shares [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Number of shares authorised | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||
Number of shares issued and fully paid | 926,195,539 | 940,909,027 | 929,644,864 | |||||
Par value per share | € 0.20 | |||||||
Preference shares [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Number of shares authorised | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||
Purchased call options [member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Additional cash payment for call options sale | € 51 | |||||||
Treasury shares [member] | Euro [Member] | ||||||||
Equity - Text Details (Detail) [Line Items] | ||||||||
Cash outflow for share purchase transactions related to employee option and share plans and reduction of share capital | 1,042 | |||||||
Cash inflow for settlement of share-based compensation plans | € 94 | |||||||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | |||||||
[2] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies |
Equity - Outstanding number of
Equity - Outstanding number of shares (Detail) - Ordinary shares [member] - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity - Text Details (Detail) [Line Items] | |||
Number of shares outstanding at beginning of period | 926,191,723 | 922,436,563 | 917,103,586 |
Dividend distributed | 9,533,223 | 11,264,163 | 17,344,462 |
Purchase of treasury shares, number of | (31,993,879) | (19,841,595) | (25,193,411) |
Re-issuance of treasury shares, number of | 10,453,020 | 12,332,592 | 13,181,926 |
Number of shares outstanding at end of period | 914,184,087 | 926,191,723 | 922,436,563 |
Equity - Employee option and sh
Equity - Employee option and share plan transactions (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity - Text Details (Detail) [Line Items] | |||
Purchase of treasury shares | € (514) | € (318) | € (589) |
Treasury shares for share-based payments [Member] | |||
Equity - Text Details (Detail) [Line Items] | |||
Shares acquired | 8,226,101 | 15,222,662 | 8,601,426 |
Average market price | € 32.59 | € 31.81 | € 24.73 |
Purchase of treasury shares | € 268 | € 484 | € 213 |
Shares delivered | 10,453,020 | 12,332,592 | 13,181,926 |
Average price (FIFO) | € 32.66 | € 27.07 | € 25.86 |
Cost of delivered shares | € 341 | € 334 | € 341 |
Total Shares In Treasury At Year End | 7,871,452 | 10,098,371 | 7,208,301 |
Cost of treasury shares for employee options | € 258 | € 331 | € 181 |
Equity - Share capital transact
Equity - Share capital transactions (Detail) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity - Text Details (Detail) [Line Items] | |||
Purchase of treasury shares | € (514) | € (318) | € (589) |
Treasury shares transactions [Member] | |||
Equity - Text Details (Detail) [Line Items] | |||
Shares acquired | 23,767,778 | 4,618,933 | 16,591,985 |
Average market price | € 32.58 | € 32.47 | € 23.84 |
Purchase of treasury shares | € 774 | € 150 | € 396 |
Reduction of treasury shares | 24,246,711 | 18,829,985 | |
Cancellation of treasury shares | € 783 | € 450 | |
Total Shares In Treasury At Year End | 4,140,000 | 4,618,933 | |
Total cost | € 141 | € 150 |
Equity - Composition of net deb
Equity - Composition of net debt and group equity (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | ||
Equity [abstract] | ||||||
Non-current portion of non-current borrowings | € 3,427 | € 4,044 | € 4,021 | |||
Current borrowings and current portion of non-current borrowings | 1,394 | 672 | 1,585 | |||
Total borrowings | 4,821 | 4,715 | 5,606 | |||
Cash and cash equivalents | [1] | 1,688 | 1,939 | 2,334 | € 1,766 | |
Net debt | 3,132 | 2,776 | 3,272 | |||
Equity attributable to owners of parent | 12,088 | 11,999 | 12,546 | € 11,970 | ||
Non-controlling interests | 29 | 24 | 907 | |||
Group equity | € 12,117 | € 12,023 | € 13,453 | € 11,725 | ||
Net debt and group equity ratio | 21:79 | 19:81 | 20:80 | |||
[1] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items |
Equity - Adjusted income from c
Equity - Adjusted income from continuing operations attributable to shareholders (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Equity [abstract] | |||||||
Profit (loss) | [2] | € 1,097 | [1] | € 1,870 | € 1,491 | ||
Profit (loss) from discontinued operations | [2],[3] | (213) | 843 | [4] | 660 | [4] | |
Income from continuing operations | 1,310 | [1] | 1,028 | [3],[4] | 831 | [3],[4] | |
Income from continuing operations attributable to non-controlling interests | [1] | (7) | |||||
Income from continuing operations attributable to owners of parent, total | [1] | 1,303 | |||||
Amortization of acquired intangible assets | 347 | [1] | 260 | 242 | |||
Restructuring and acquisition-related charges | 258 | [1] | 316 | 94 | |||
Other items | 41 | [1] | € 50 | € 120 | |||
Net finance expenses | [1] | 57 | |||||
Tax impact of adjusted items | [1] | (365) | |||||
Adjusted Income from continuing operations attributable to shareholders, total | [1] | € 1,643 | |||||
[1] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||
[3] | Shareholders in this table refers to shareholders of Koninklijke Philips N.V. | ||||||
[4] | During 2018, an error was identified in certain non-controlling interests and EPS calculations for 2016 and 2017 respectively. Reference is made to the Significant accounting policies |
Debt - Text Details (Detail)
Debt - Text Details (Detail) € in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||||||||||
Dec. 31, 2018EUR (€)shares | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2018USD ($)shares | Jun. 30, 2018USD ($) | May 31, 2018EUR (€) | May 31, 2018USD ($) | Apr. 30, 2018EUR (€) | Apr. 30, 2018USD ($) | Mar. 31, 2018EUR (€) | Jun. 28, 2017EUR (€) | Apr. 21, 2017EUR (€) | |
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Change of Control Triggering Event, potentially required purchase price related to principal amount | 101.00% | |||||||||||
Finance costs | € 264 | € 263 | € 507 | |||||||||
Tranches of forward purchases | 3 | 3 | ||||||||||
Number of shares purchased through forward contracts | shares | 10 | 10 | ||||||||||
Weighted average [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Borrowings, interest rate | 2.30% | 2.80% | 2.30% | |||||||||
Bank borrowings [Member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | € 178 | |||||||||||
Bank borrowings [Member] | Weighted average [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Borrowings, interest rate | 15.00% | 3.30% | 15.00% | |||||||||
Fixed-rate EUR bonds due 2024 and 2028 [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | € 1,000 | |||||||||||
Fixed-rate EUR bonds due 2024 [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | € 500 | |||||||||||
Borrowings, interest rate | 0.75% | 0.75% | ||||||||||
Fixed-rate EUR bonds due 2028 [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | € 500 | |||||||||||
Borrowings, interest rate | 1.375% | 1.375% | ||||||||||
Loan for the purpose of the redemption [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | € 900 | |||||||||||
Matured [member] | Forward contract [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | € 423 | |||||||||||
Purchase forward contracts [Member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | 319 | |||||||||||
Share buyback program [Member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | € 1,500 | |||||||||||
USD Bonds due 2022, early redemption | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | $ | $ 1,000 | |||||||||||
Borrowings, interest rate | 3.75% | 3.75% | ||||||||||
Finance costs | 24 | |||||||||||
USD bonds due 2038 [member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | $ | $ 16 | $ 56 | ||||||||||
Borrowings, interest rate | 6.875% | |||||||||||
Finance costs | 21 | |||||||||||
Royal Philips NV [Member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Undrawn borrowing facilities | 1,000 | |||||||||||
Royal Philips NV [Member] | Commercial Paper Programme [Member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Notional amount | $ | $ 2,500 | |||||||||||
Royal Philips NV [Member] | Committed revolving credit facility [Member] | ||||||||||||
Debt - Text Details (Detail) [Line Items] | ||||||||||||
Undrawn borrowing facilities | € 1,000 | € 1,000 |
Debt - Long-term debt (Detail)
Debt - Long-term debt (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt - Text Details (Detail) [Line Items] | |||
Long-term Debt Including Current Portion Long-term Debt | € 4,657 | € 4,595 | |
Current portion of non-current borrowings | 1,230 | 552 | |
Non-current portion of non-current borrowings | € 3,427 | € 4,044 | € 4,021 |
Weighted average [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Borrowings, maturity | 7.9 | 7.6 | |
Borrowings, interest rate | 2.30% | 2.80% | |
Later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Non-current portion of non-current borrowings | € 2,545 | € 1,825 | |
Later than one year and not later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Non-current portion of non-current borrowings | 882 | 2,218 | |
Bank borrowings [Member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Long-term Debt Including Current Portion Long-term Debt | 211 | 190 | |
Current portion of non-current borrowings | 52 | ||
Non-current portion of non-current borrowings | € 211 | € 138 | |
Bank borrowings [Member] | Weighted average [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Borrowings, maturity | 6.2 | 2.1 | |
Borrowings, interest rate | 0.30% | 1.30% | |
Bank borrowings [Member] | Later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Non-current portion of non-current borrowings | € 205 | ||
Bank borrowings [Member] | Later than one year and not later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Non-current portion of non-current borrowings | 6 | € 138 | |
Forward contract [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Long-term Debt Including Current Portion Long-term Debt | 807 | 970 | |
Current portion of non-current borrowings | 618 | 394 | |
Non-current portion of non-current borrowings | € 188 | € 576 | |
Forward contract [member] | Weighted average [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Borrowings, maturity | 0.8 | 1.2 | |
Forward contract [member] | Later than one year and not later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Non-current portion of non-current borrowings | € 188 | € 576 | |
Other long-term debt [Member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Long-term Debt Including Current Portion Long-term Debt | 18 | 20 | |
Current portion of non-current borrowings | 18 | 19 | |
Non-current portion of non-current borrowings | € 0 | € 1 | |
Other long-term debt [Member] | Weighted average [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Borrowings, maturity | 1.1 | 1.1 | |
Borrowings, interest rate | 1.60% | 0.90% | |
Other long-term debt [Member] | Later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Non-current portion of non-current borrowings | € 0 | € 0 | |
Other long-term debt [Member] | Later than one year and not later than five years [member] | |||
Debt - Text Details (Detail) [Line Items] | |||
Non-current portion of non-current borrowings | € 0 | € 1 |
Debt - Unsecured Bonds (Detail)
Debt - Unsecured Bonds (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 3,427 | € 4,044 | € 4,021 | |
Unsecured bonds [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | 3,291 | 3,134 | ||
Unsecured bonds [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Unsecured bonds adjustments | [1] | € (31) | (26) | |
UnsecuredUsdBondsDue60126715Percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 6.885% | |||
UnsecuredUsdBondsDue60126715Percent [Member] | Unsecured bonds [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 119 | 114 | ||
Unsecured EUR Bonds Due 5 02 2024 3/4 percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | Euro [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 0.861% | |||
Unsecured EUR Bonds Due 5 02 2024 3/4 percent [member] | Unsecured bonds [Member] | Euro [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 500 | |||
Unsecured EUR Bonds Due 5 02 2028 1 3/8 Percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | Euro [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 1.523% | |||
Unsecured EUR Bonds Due 5 02 2028 1 3/8 Percent [member] | Unsecured bonds [Member] | Euro [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 500 | |||
Unsecured EUR Bonds Due 9 06 2019 [member] | Unsecured bonds [Member] | Euro [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 500 | 500 | ||
Unsecured EUR Bonds Due 9 06 2023 0,5 percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | Euro [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 0.634% | |||
Unsecured EUR Bonds Due 9 06 2023 0,5 percent [member] | Unsecured bonds [Member] | Euro [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 500 | 500 | ||
phg_Unsecuredusdbondsdue110338678percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 7.21% | |||
phg_Unsecuredusdbondsdue110338678percent [Member] | Unsecured bonds [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 636 | 668 | ||
phg_Unsecuredusdbondsdue31522334percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | [2] | 3.906% | ||
phg_Unsecuredusdbondsdue31522334percent [Member] | Unsecured bonds [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | [2] | € 837 | ||
phg_Unsecuredusdbondsdue315425percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 5.273% | |||
phg_Unsecuredusdbondsdue315425percent [Member] | Unsecured bonds [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 438 | 418 | ||
phg_Unsecuredusdbondsdue51525718percent [Member] | Long-term borrowings [member] | Effective interest rate [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 6.794% | |||
phg_Unsecuredusdbondsdue51525718percent [Member] | Unsecured bonds [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 74 | 70 | ||
Unsecured USD Bonds Due 5 15 25 7 3/4 Percent [member] | Long-term borrowings [member] | Effective interest rate [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Borrowings, interest rate | 7.429% | |||
Unsecured USD Bonds Due 5 15 25 7 3/4 Percent [member] | Unsecured bonds [Member] | US Dollar [Member] | ||||
Debt - Text Details (Detail) [Line Items] | ||||
Non-current portion of non-current borrowings | € 55 | € 53 | ||
[1] | Adjustments related to both EUR and USD bonds and concern bond discounts and premium, transaction costs and fair value adjustments for interest rate derivatives. | |||
[2] | In April 2018, Philips completed the early redemption of all the 3.750% USD bonds due 2022 with an aggregate principal amount of USD 1 billion. |
Debt - Finance lease liabilitie
Debt - Finance lease liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt - Text Details (Detail) [Line Items] | ||
Future finance charge on finance lease, total | € 357 | € 306 |
Minimum finance lease payments payable, at present value | 28 | 24 |
Minimum finance lease payments payable | 330 | 281 |
Later than five years [member] | ||
Debt - Text Details (Detail) [Line Items] | ||
Future finance charge on finance lease, total | 52 | 29 |
Minimum finance lease payments payable, at present value | 6 | 4 |
Minimum finance lease payments payable | 46 | 24 |
Later than one year and not later than five years [member] | ||
Debt - Text Details (Detail) [Line Items] | ||
Future finance charge on finance lease, total | 206 | 184 |
Minimum finance lease payments payable, at present value | 16 | 14 |
Minimum finance lease payments payable | 190 | 170 |
Not later than one year [member] | ||
Debt - Text Details (Detail) [Line Items] | ||
Future finance charge on finance lease, total | 100 | 93 |
Minimum finance lease payments payable, at present value | 6 | 6 |
Minimum finance lease payments payable | € 94 | € 87 |
Debt - Short-term debt (Detail)
Debt - Short-term debt (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt [Abstract] | |||
Short-term bank borrowings, total | € 76 | € 71 | |
Forward contracts short term | 88 | 49 | |
Current portion of non-current borrowings | 1,230 | 552 | |
Current borrowings and current portion of non-current borrowings | € 1,394 | € 672 | € 1,585 |
Provisions - Text Details (Deta
Provisions - Text Details (Detail) € in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2016EUR (€) | Nov. 30, 2016USD ($) | Oct. 31, 2014USD ($) | Feb. 28, 2018 | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Jul. 09, 2018EUR (€) | Nov. 30, 2016USD ($) | Nov. 05, 2016USD ($) | Dec. 31, 2015EUR (€) | ||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | five years | |||||||||||
Unused provision reversed, other provisions | € 88 | |||||||||||
EPDSolutionsLtd[Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Cash transferred | € 250 | |||||||||||
Masimo Corporation [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Cash transferred | $ | $ 300 | |||||||||||
Donations and subsidies expense | $ | $ 5 | |||||||||||
Legal proceedings provision [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | three years | |||||||||||
Provision used, other provisions | [1] | € (29) | (52) | € (313) | ||||||||
Unused provision reversed, other provisions | (11) | (11) | (98) | |||||||||
Increase (decrease) through transfers and other changes, other provisions | [1] | 0 | 2 | (125) | ||||||||
Other provisions | 26 | 50 | 96 | € 578 | ||||||||
Legal proceedings provision [member] | Masimo Corporation [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Losses on litigation settlements | $ | 467 | $ 467 | ||||||||||
Cash transferred | € 280 | $ 305 | ||||||||||
Unused provision reversed, other provisions | 79 | 86 | ||||||||||
Increase (decrease) through transfers and other changes, other provisions | € 125 | $ 136 | ||||||||||
Onerous contracts provision [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Other provisions | € 18 | 31 | ||||||||||
Other environment related provision long term [member] | Bottom of range [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | one | |||||||||||
Other environment related provision long term [member] | Top of range [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | five years | |||||||||||
Other environment related provision [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision used, other provisions | € (15) | (21) | (24) | |||||||||
Unused provision reversed, other provisions | (4) | (8) | (36) | |||||||||
Other provisions | 144 | 160 | 321 | 335 | ||||||||
Other environment related provision [member] | Not later than five years [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision used, other provisions | € 70 | |||||||||||
Other environment related provision remainder [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | five years | |||||||||||
Provision for decommissioning, restoration and rehabilitation costs [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | five years | |||||||||||
Other provisions | € 32 | 32 | ||||||||||
Provision for taxes other than income tax [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Other provisions | 65 | 97 | ||||||||||
Provisions for contingent considerations [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Other provisions | 409 | 66 | ||||||||||
Provisions for contingent considerations [Member] | EPDSolutionsLtd[Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Other provisions | € 239 | |||||||||||
Provisions for employee jubilee funds [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | five years | |||||||||||
Other provisions | € 73 | 57 | ||||||||||
Provisions for other employee benefits and obligatory severance payments [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Other provisions | € 13 | 24 | ||||||||||
Provisions for rights of return [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | year | |||||||||||
Other provisions | € 35 | 37 | ||||||||||
Self-insurance provisions [Member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Other provisions | € 45 | 48 | ||||||||||
Warranty provision [member] | ||||||||||||
Provisions - Text Details (Detail) [Line Items] | ||||||||||||
Provision utilization period | next year | |||||||||||
Provision used, other provisions | € (261) | (270) | (357) | |||||||||
Other provisions | € 190 | € 201 | € 259 | € 289 | ||||||||
[1] | The presentation of prior-year information has been reclassified to conform to the current-year presentation. |
Provisions - Provisions (Detail
Provisions - Provisions (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | € 1,788 | € 1,659 |
Total provisions | 2,151 | 2,059 |
Current provisions | 363 | 400 |
Legal proceedings provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 17 | 26 |
Total provisions | 26 | 50 |
Current provisions | 9 | 24 |
Miscellaneous other provisions [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 730 | 451 |
Total provisions | 842 | 564 |
Current provisions | 112 | 113 |
Other environment related provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 124 | 140 |
Total provisions | 144 | 160 |
Current provisions | 20 | 19 |
Post-employement benefit [Member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 835 | 973 |
Total provisions | 835 | 973 |
Restructuring provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 45 | 25 |
Total provisions | 114 | 112 |
Current provisions | 68 | 87 |
Warranty provision [member] | ||
Provisions - Text Details (Detail) [Line Items] | ||
Non-current provisions | 37 | 44 |
Total provisions | 190 | 201 |
Current provisions | € 153 | € 157 |
Provisions - Provisions for ass
Provisions - Provisions for assurance-type product warranty (Detail) - Warranty provision [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | € 201 | € 259 | € 289 |
Additional provisions, other provisions | 248 | 283 | 325 |
Provision used, other provisions | (261) | (270) | (357) |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | (56) | ||
Increase (decrease) through net exchange differences, other provisions | 2 | (16) | 2 |
Other provisions at end of period | € 190 | € 201 | € 259 |
Provisions - Environmental prov
Provisions - Environmental provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provisions - Text Details (Detail) [Line Items] | |||
Unused provision reversed, other provisions | € 88 | ||
Other environment related provision [member] | |||
Provisions - Text Details (Detail) [Line Items] | |||
Other provisions at beginning of period | € 160 | 321 | € 335 |
Additional provisions, other provisions | 23 | 18 | 18 |
Provision used, other provisions | (15) | (21) | (24) |
Unused provision reversed, other provisions | (4) | (8) | (36) |
Increase (decrease) through change in discount rate, other provisions | (28) | 11 | 11 |
Increase through adjustments arising from passage of time, other provisions | 5 | 6 | 7 |
Increase (decrease) through net exchange differences, other provisions | 4 | (20) | 10 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | (146) | ||
Other provisions at end of period | € 144 | € 160 | € 321 |
Provisions - Restructuring-rela
Provisions - Restructuring-related provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Provisions - Text Details (Detail) [Line Items] | |||||
Unused provision reversed, other provisions | € 88 | ||||
Restructuring provision [member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 201 | ||||
Other provisions at end of period | € 201 | ||||
Restructuring provision [member] | Connected Care & Health Informatics [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | € 20 | 13 | 21 | ||
Additional provisions, other provisions | 19 | 27 | 11 | ||
Provision used, other provisions | (13) | (12) | (14) | ||
Unused provision reversed, other provisions | (8) | (6) | (6) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | 1 | [2] | |
Other provisions at end of period | 18 | 20 | 13 | ||
Restructuring provision [member] | Diagnosis & Treatment [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 38 | 13 | 28 | ||
Additional provisions, other provisions | 60 | 46 | 11 | ||
Provision used, other provisions | (32) | (16) | (19) | ||
Unused provision reversed, other provisions | (11) | (5) | (6) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | (1) | [2] | |
Other provisions at end of period | 55 | 38 | 13 | ||
Restructuring provision [member] | Lighting [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 133 | 178 | |||
Additional provisions, other provisions | 9 | 95 | |||
Provision used, other provisions | (35) | (118) | |||
Unused provision reversed, other provisions | (3) | (27) | |||
Increase (decrease) through transfers and other changes, other provisions | (104) | [1] | 5 | [2] | |
Other provisions at end of period | 133 | ||||
Restructuring provision [member] | Other [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 47 | 37 | 38 | ||
Additional provisions, other provisions | 42 | 55 | 34 | ||
Provision used, other provisions | (47) | (27) | (17) | ||
Unused provision reversed, other provisions | (16) | (16) | (20) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | 2 | [2] | |
Other provisions at end of period | 26 | 47 | 37 | ||
Restructuring provision [member] | Personal Health [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 7 | 5 | 32 | ||
Additional provisions, other provisions | 14 | 14 | 7 | ||
Provision used, other provisions | (6) | (5) | (29) | ||
Unused provision reversed, other provisions | (1) | (6) | (2) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | (3) | [2] | |
Other provisions at end of period | 14 | 7 | 5 | ||
Restructuring provision [member] | Philips Group [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 112 | 201 | 297 | ||
Additional provisions, other provisions | 136 | 150 | 158 | ||
Provision used, other provisions | (98) | (96) | (197) | ||
Unused provision reversed, other provisions | (37) | (37) | (61) | ||
Increase (decrease) through transfers and other changes, other provisions | (107) | [1] | 4 | [2] | |
Other provisions at end of period | € 114 | € 112 | € 201 | ||
[1] | Other changes primarily relate to translation differences and reclassification to liabilities directly associated with assets held for sale. | ||||
[2] | Other changes primarily relate to translation differences and transfers between segments |
Provisions - Restructuring-re_2
Provisions - Restructuring-related provision (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Provisions - Text Details (Detail) [Line Items] | |||||
Unused provision reversed, other provisions | € 88 | ||||
Restructuring provision [member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 201 | ||||
Other provisions at end of period | € 201 | ||||
Restructuring provision [member] | Connected Care & Health Informatics [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | € 20 | 13 | 21 | ||
Additional provisions, other provisions | 19 | 27 | 11 | ||
Provision used, other provisions | (13) | (12) | (14) | ||
Unused provision reversed, other provisions | (8) | (6) | (6) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | 1 | [2] | |
Other provisions at end of period | 18 | 20 | 13 | ||
Restructuring provision [member] | Diagnosis & Treatment [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 38 | 13 | 28 | ||
Additional provisions, other provisions | 60 | 46 | 11 | ||
Provision used, other provisions | (32) | (16) | (19) | ||
Unused provision reversed, other provisions | (11) | (5) | (6) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | (1) | [2] | |
Other provisions at end of period | 55 | 38 | 13 | ||
Restructuring provision [member] | Lighting [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 133 | 178 | |||
Additional provisions, other provisions | 9 | 95 | |||
Provision used, other provisions | (35) | (118) | |||
Unused provision reversed, other provisions | (3) | (27) | |||
Increase (decrease) through transfers and other changes, other provisions | (104) | [1] | 5 | [2] | |
Other provisions at end of period | 133 | ||||
Restructuring provision [member] | Other [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 47 | 37 | 38 | ||
Additional provisions, other provisions | 42 | 55 | 34 | ||
Provision used, other provisions | (47) | (27) | (17) | ||
Unused provision reversed, other provisions | (16) | (16) | (20) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | 2 | [2] | |
Other provisions at end of period | 26 | 47 | 37 | ||
Restructuring provision [member] | Personal Health [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 7 | 5 | 32 | ||
Additional provisions, other provisions | 14 | 14 | 7 | ||
Provision used, other provisions | (6) | (5) | (29) | ||
Unused provision reversed, other provisions | (1) | (6) | (2) | ||
Increase (decrease) through transfers and other changes, other provisions | (1) | [1] | (3) | [2] | |
Other provisions at end of period | 14 | 7 | 5 | ||
Restructuring provision [member] | Philips Group [Member] | |||||
Provisions - Text Details (Detail) [Line Items] | |||||
Other provisions at beginning of period | 112 | 201 | 297 | ||
Additional provisions, other provisions | 136 | 150 | 158 | ||
Provision used, other provisions | (98) | (96) | (197) | ||
Unused provision reversed, other provisions | (37) | (37) | (61) | ||
Increase (decrease) through transfers and other changes, other provisions | (107) | [1] | 4 | [2] | |
Other provisions at end of period | € 114 | € 112 | € 201 | ||
[1] | Other changes primarily relate to translation differences and reclassification to liabilities directly associated with assets held for sale. | ||||
[2] | Other changes primarily relate to translation differences and transfers between segments |
Provisions - Litigation provisi
Provisions - Litigation provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Provisions - Text Details (Detail) [Line Items] | ||||
Unused provision reversed, other provisions | € 88 | |||
Legal proceedings provision [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions at beginning of period | € 50 | 96 | € 578 | |
Additional provisions, other provisions | 17 | 40 | 31 | |
Provision used, other provisions | [1] | (29) | (52) | (313) |
Unused provision reversed, other provisions | (11) | (11) | (98) | |
Increase (decrease) through transfers and other changes, other provisions | [1] | 0 | 2 | (125) |
Increase (decrease) through change in discount rate, other provisions | 5 | |||
Increase through adjustments arising from passage of time, other provisions | 2 | 3 | 8 | |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | (21) | |||
Increase (decrease) through net exchange differences, other provisions | (3) | (7) | 10 | |
Other provisions at end of period | € 26 | € 50 | € 96 | |
[1] | The presentation of prior-year information has been reclassified to conform to the current-year presentation. |
Provisions - Other provisions (
Provisions - Other provisions (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Provisions - Text Details (Detail) [Line Items] | ||||
Unused provision reversed, other provisions | € 88 | |||
Acquisitions | € 45 | |||
Miscellaneous other provisions [member] | ||||
Provisions - Text Details (Detail) [Line Items] | ||||
Other provisions at beginning of period | 564 | 733 | € 604 | |
Additional provisions, other provisions | [1] | 176 | 241 | 183 |
Provision used, other provisions | [1] | (226) | (175) | (167) |
Unused provision reversed, other provisions | (58) | (88) | (61) | |
Increase (decrease) through transfers and other changes, other provisions | 2 | 4 | 142 | |
Increase through adjustments arising from passage of time, other provisions | 14 | 0 | 8 | |
Acquisitions | 367 | 62 | 0 | |
Transfer to assets held for sale | (156) | |||
Increase (decrease) through net exchange differences, other provisions | 3 | (56) | 24 | |
Other provisions at end of period | € 842 | € 564 | € 733 | |
[1] | The presentation of prior-year information has been reclassified to conform to the current-year presentation. |
Post-employment benefits - Text
Post-employment benefits - Text Details (Detail) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Weighted average duration of defined benefit obligation | 11 | 11 | 12 | ||
Percentage of unquoted assets | 33.00% | 33.00% | 37.00% | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | 1.00% | |||
Actuarial assumption of mortality rates | 0.10 | 0.10 | |||
Cash outflow | € 402 | ||||
Employer contributions | 20 | ||||
Post-employment benefit expense, defined benefit plans | 31 | € 46 | € 95 | € 58 | |
Interest expense (income), net defined benefit liability (asset) | 23 | 37 | 48 | ||
Included in financial expense [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Post-employment benefit expense, defined benefit plans | € 23 | € 37 | € 48 | ||
Interest expense (income), net defined benefit liability (asset) | 22 | ||||
Bottom of range [member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Actuarial assumption of life expectancy after retirement | 0.5 | 0.5 | |||
Top of range [member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Actuarial assumption of life expectancy after retirement | 1 | 1 | |||
Germany [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 13 | ||||
Other countries [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 7 | ||||
United States of America [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
De-risking contributions paid into pension plan | € 130 | $ 150 | |||
Employer contributions | 0 | ||||
US and Germany [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Percentage of total DBO that relate to the largest DB plans in these countries | 88.00% | 88.00% | |||
Defined contribution plans [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 340 | ||||
Defined contribution plans [Member] | Netherlands [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 168 | ||||
Defined contribution plans [Member] | Other countries [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 54 | ||||
Defined contribution plans [Member] | United States of America [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Employer contributions | 118 | ||||
Unfunded defined-benefit plans [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | 42 | ||||
Unfunded defined-benefit plans [Member] | Germany [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | 19 | ||||
Unfunded defined-benefit plans [Member] | Other countries [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | 13 | ||||
Unfunded defined-benefit plans [Member] | United States of America [Member] | |||||
Post-employment benefits - Text Details (Detail) [Line Items] | |||||
Cash outflow | € 10 |
Post-employment benefits - Pre-
Post-employment benefits - Pre-tax costs for post-employment benefits (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | € 31 | € 46 | € 95 | € 58 |
Post-employment benefit expense, defined contribution plans | 327 | 397 | 392 | |
Post-employment benefits costs, pre-tax, total | 374 | 492 | 450 | |
Included in discontinued operations [Member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | 26 | 29 | ||
Post-employment benefit expense, defined contribution plans | 82 | 93 | ||
Included in financial expense [Member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | 23 | 37 | 48 | |
Included in income from operations [Member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Post-employment benefit expense, defined benefit plans | 23 | 32 | (19) | |
Post-employment benefit expense, defined contribution plans | € 327 | € 315 | € 299 |
Post-employment benefits - Defi
Post-employment benefits - Defined-benefit obligations (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Interest expense (income), net defined benefit liability (asset) | € 23 | € 37 | € 48 | |
Present value of defined benefit obligation [member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Net defined benefit liability (asset) at beginning of period | 3,109 | 4,987 | ||
Current service cost, net defined benefit liability (asset) | 27 | 34 | ||
Interest expense (income), net defined benefit liability (asset) | 85 | 126 | ||
Contributions to plan by plan participants, net defined benefit liability (asset) | 4 | 4 | ||
Actuarial gains (losses) arising from changes in demographic assumptions, net defined benefit liability (asset) | 4 | (14) | ||
Actuarial gains (losses) arising from changes in financial assumptions, net defined benefit liability (asset) | (131) | 75 | ||
Actuarial gains (losses) arising from experience adjustments, net defined benefit liability (asset) | 5 | (15) | ||
Past service cost, net defined benefit liability (asset) | (6) | 1 | ||
Gains (losses) arising from settlements, net defined benefit liability (asset) | 0 | (348) | ||
Payments from plan, net defined benefit liability (asset) | (152) | (172) | ||
Benefits paid directly by employer | (42) | (52) | ||
Transfer to Liabilities directly associated with assets held for sale | [1] | (1,210) | ||
Increase (decrease) through changes in foreign exchange rates, net defined benefit liability (asset) | 94 | (307) | ||
Net defined benefit liability (asset) at end of period | 2,998 | 3,109 | € 4,987 | |
Present value of funded obligations | 2,388 | 2,476 | ||
Present value of unfunded obligations | € 610 | € 633 | ||
[1] | The amount presented under 'Transfer to Liabilities directly associated with assets held for sale' in 2017 relates to Signify (former Philips Lighting) |
Post-employment benefits - Plan
Post-employment benefits - Plan assets (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Interest expense (income), net defined benefit liability (asset) | € 23 | € 37 | € 48 | |
Plan assets [member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Net defined benefit liability (asset) at beginning of period | 2,137 | 3,095 | ||
Interest expense (income), net defined benefit liability (asset) | 62 | 87 | ||
Current service cost, net defined benefit liability (asset) | (1) | (2) | ||
Return on plan assets, net defined benefit liability (asset) | (129) | 70 | ||
Contributions to plan by plan participants, net defined benefit liability (asset) | 4 | 4 | ||
Contributions to plan by employer, net defined benefit liability (asset) | 159 | 263 | ||
Gains (losses) arising from settlements, net defined benefit liability (asset) | 0 | (348) | ||
Payments from plan, net defined benefit liability (asset) | (152) | (172) | ||
Transfer to assets classified as held for sale | [1] | 0 | (642) | |
Increase (decrease) through changes in foreign exchange rates, net defined benefit liability (asset) | 83 | (218) | ||
Net defined benefit liability (asset) at end of period | 2,164 | 2,137 | € 3,095 | |
Funded status | (834) | (972) | ||
Net balance sheet position | € (834) | € (972) | ||
[1] | The amount presented under 'Transfer to Liabilities directly associated with assets held for sale' in 2017 relates to Signify (former Philips Lighting) |
Post-employment benefits - Chan
Post-employment benefits - Changes in the effect of the asset ceiling (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Interest expense (income), net defined benefit liability (asset) | € 23 | € 37 | € 48 |
Effect of asset ceiling [member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | € 105 | ||
Interest expense (income), net defined benefit liability (asset) | 4 | ||
Gain (loss) on changes in effect of limiting net defined benefit asset to asset ceiling, net defined benefit liability (asset) | (100) | ||
Increase (decrease) through changes in foreign exchange rates, net defined benefit liability (asset) | € (9) |
Post-employment benefits - Pl_2
Post-employment benefits - Plan assets allocation (Detail) - Plan assets [member] - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Net defined benefit liability (asset) | € 2,164 | € 2,137 | € 3,095 |
Assets not quoted in active market [Member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Debt instruments, amount contributed to fair value of plan assets | 12 | 14 | |
Equity instruments, amount contributed to fair value of plan assets | 457 | ||
Other assets, amount contributed to fair value of plan assets | 329 | 318 | |
Assets quoted in active market [Member] | |||
Post-employment benefits - Text Details (Detail) [Line Items] | |||
Debt instruments, amount contributed to fair value of plan assets | 1,294 | 1,142 | |
Equity instruments, amount contributed to fair value of plan assets | 368 | 69 | |
Other assets, amount contributed to fair value of plan assets | € 161 | € 137 |
Post-employment benefits - Assu
Post-employment benefits - Assumptions used for defined-benefit obligations (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Post-employment benefits [Abstract] | ||
Actuarial assumption of discount rates | 3.20% | 2.80% |
Actuarial assumption of expected rates of inflation | 2.10% | 2.10% |
Actuarial assumption of expected rates of salary increases | 2.40% | 2.40% |
Post-employment benefits - Sens
Post-employment benefits - Sensitivity of key assumptions (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Actuarial assumption of discount rates [member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | € (298) | € (323) | ||
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 367 | 394 | ||
Actuarial assumption of expected rates of inflation [member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 97 | 85 | ||
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (89) | (86) | ||
Actuarial assumption of expected rates of salary increases [member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 21 | 20 | ||
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (20) | (19) | ||
Actuarial assumption of life expectancy after retirement [member] | ||||
Post-employment benefits - Text Details (Detail) [Line Items] | ||||
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | € 65 | [1] | € 72 | [2] |
[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 schemes. A 10% decrease in assumed mortality rates equals improvement of life expectancy by 0.5 - 1 year. | |||
[2] | 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 schemes. 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, 2018 | Dec. 31, 2017 | |
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | [1] | € 1,537 | € 2,319 |
Advertising and marketing-related costs [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 179 | 174 | |
Commission payable [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 6 | 7 | |
Communication and IT costs [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 55 | 42 | |
Deferred income [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | [2] | 791 | |
Distribution costs [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 78 | 83 | |
Gas, water, electricity, rent and other [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 36 | 52 | |
Holiday entitlements [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 111 | 109 | |
Interest-related accruals [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 36 | 38 | |
Material-related costs [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 112 | 110 | |
Other accrued liabilities [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 293 | 273 | |
Other personnel-related costs [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 73 | 71 | |
Other sales-related costs [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | 28 | 38 | |
Salaries and wages [Member] | |||
Accrued liabilities - Accrued liabilities (Detail) [Line Items] | |||
Accruals | € 530 | € 529 | |
[1] | Due to IFRS 15 adoption, contractual liabilities are shown as separate captions on the balance sheet as of 2018. For more details refer to the Significant accounting policies | ||
[2] | Due to implementation of IFRS 15 balances included in deferred income are now presented as contract liabilities. |
Other liabilities - Text Detail
Other liabilities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Other liabilities [Abstract] | ||||
Increase (Decrease) in other non-current liabilities | € (221) | |||
Non-current contract liabilities | 226 | [1] | € 237 | € 249 |
Current contract liabilities | 1,303 | [1] | € 1,150 | € 1,163 |
Increase (Decrease) in current contract liabilities through operational activities | (140) | |||
Revenue that was included in contract liability balance at beginning of period | € 1,163 | |||
[1] | Due to IFRS 15 adoption, contractual liabilities are shown as separate captions on the balance sheet as of 2018. For more details refer to the Significant accounting policies |
Other liabilities - Other non-c
Other liabilities - Other non-current liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Other liabilities [Abstract] | |||
Deferred income classified as non-current | [1] | € 249 | |
Other tax liability | € 181 | 161 | |
Other non-current liabilities, total | 72 | 65 | |
Other non-current non-financial liabilities | [2] | € 253 | € 474 |
[1] | Due to implementation of IFRS 15 balances included in deferred income are now presented as contract liabilities. | ||
[2] | Due to IFRS 15 adoption, contractual liabilities are shown as separate captions on the balance sheet as of 2018. For more details refer to the Significant accounting policies |
Other liabilities - Other curre
Other liabilities - Other current liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Other liabilities [Abstract] | |||
Accrued customer rebates that cannot be offset with accounts receivables for those customers | € 422 | € 435 | |
Current advances received | [1] | 372 | |
Other taxes including social security premiums | 178 | 164 | |
Other current liabilities, total | 137 | 155 | |
Other current non-financial liabilities | [2] | € 737 | € 1,126 |
[1] | Due to implementation of IFRS 15 balances included in advances received from customers on orders not covered by work in progress are now presented as contract liabilities. | ||
[2] | Due to IFRS 15 adoption, contractual liabilities are shown as separate captions on the balance sheet as of 2018. For more details refer to the Significant accounting policies |
Cash flow statement supplemen_3
Cash flow statement supplementary information - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||
Purchase of financial instruments, classified as investing activities | € (177) | € (295) | € (128) |
Net cash inflow from non-current financial assets | € 43 | € 36 | € 39 |
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, 2018 | Dec. 31, 2017 | ||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | € (1,192) | € (53) | [1] | ||
Bank borrowings [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 190 | 1,470 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 21 | (22) | [1] | ||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 0 | (21) | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 0 | [2] | 0 | ||
Increase (decrease) through transfer to liabilities directly associated with assets held for sale, liabilities arising from financing activities | (1,238) | ||||
Liabilities arising from financing activities at end of period | 211 | 190 | |||
Bonds [Member] | Euro [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 997 | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 990 | 997 | [1] | ||
Increase (decrease) through other changes, liabilities arising from financing activities | 1 | [2] | 0 | ||
Liabilities arising from financing activities at end of period | 997 | ||||
Bonds [Member] | US Dollar [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 2,137 | 3,608 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (866) | (1,184) | [1] | ||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 31 | (287) | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 0 | [2] | 1 | ||
Liabilities arising from financing activities at end of period | 2,137 | ||||
Equity [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | (1,500) | (181) | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1,351) | 168 | [1] | ||
Increase (decrease) through other changes, liabilities arising from financing activities | 1,558 | [2] | (1,487) | ||
Liabilities arising from financing activities at end of period | (1,293) | (1,500) | |||
EUR Bond [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at end of period | 1,988 | ||||
Forward contracts equity [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Increase (decrease) through other changes, liabilities arising from financing activities | 124 | [2],[3] | (1,018) | [4],[5] | |
Forward contracts long term [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 970 | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | (163) | [2],[3] | 970 | [4],[5] | |
Liabilities arising from financing activities at end of period | 88 | 970 | |||
Forward contracts short term [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 49 | ||||
Increase (decrease) through other changes, liabilities arising from financing activities | 39 | [2],[3] | 49 | [4],[5] | |
Liabilities arising from financing activities at end of period | 894 | 49 | |||
Lease liabilities [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 281 | 279 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (18) | 12 | [1] | ||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 13 | (20) | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 53 | [2] | 29 | ||
Increase (decrease) through transfer to liabilities directly associated with assets held for sale, liabilities arising from financing activities | (18) | ||||
Liabilities arising from financing activities at end of period | 330 | 281 | |||
Long-term borrowings including current portion of long-term borrowings [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | [7] | 4,595 | [6] | 5,396 | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 126 | [6] | (327) | [7] | |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | [6] | 45 | |||
Increase (decrease) through other changes, liabilities arising from financing activities | (109) | [2],[6] | 998 | [4],[7] | |
Increase (decrease) through transfer to liabilities directly associated with assets held for sale, liabilities arising from financing activities | [7] | (1,255) | |||
Liabilities arising from financing activities at end of period | [6] | 4,657 | 4,595 | [7] | |
Other long-term debt [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 20 | 39 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (1) | (20) | [1] | ||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 0 | 1 | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 0 | [2] | (1) | ||
Increase (decrease) through transfer to liabilities directly associated with assets held for sale, liabilities arising from financing activities | 0 | ||||
Liabilities arising from financing activities at end of period | 18 | 20 | |||
Other short-term loans [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 2 | ||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | [1] | (1) | |||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 0 | ||||
Increase (decrease) through transfer to liabilities directly associated with assets held for sale, liabilities arising from financing activities | (2) | ||||
Sale of Lighting Shares Net of Costs [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | [1] | 1,060 | |||
Increase (decrease) through other changes, liabilities arising from financing activities | (1,060) | ||||
Short-term bank borrowings [Member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 71 | 207 | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 34 | (3) | [1] | ||
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (29) | (49) | |||
Increase (decrease) through transfer to liabilities directly associated with assets held for sale, liabilities arising from financing activities | (84) | ||||
Liabilities arising from financing activities at end of period | 76 | 71 | |||
Short-term borrowings [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | [7] | 120 | [6] | 210 | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 34 | [6] | (49) | [7] | |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | [6] | (29) | |||
Increase (decrease) through other changes, liabilities arising from financing activities | 39 | [2],[6] | 49 | [4],[7] | |
Increase (decrease) through transfer to liabilities directly associated with assets held for sale, liabilities arising from financing activities | [7] | (86) | |||
Liabilities arising from financing activities at end of period | [6] | 164 | 120 | [7] | |
Treasury shares [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | (481) | (181) | |||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | (948) | (414) | [1] | ||
Increase (decrease) through other changes, liabilities arising from financing activities | [2] | 1,030 | |||
Liabilities arising from financing activities at end of period | (399) | (481) | |||
USD Bond [member] | |||||
Cash flow statement supplementary information - Text Details (Detail) [Line Items] | |||||
Liabilities arising from financing activities at beginning of period | 2,137 | ||||
Liabilities arising from financing activities at end of period | € 1,303 | € 2,137 | |||
[1] | Cash flow includes cash movements related to Lighting from January to April 2017, and therefore does not equal cash flow financing activities in the consolidated statements of cash flows. | ||||
[2] | Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities | ||||
[3] | The forward contracts are related to the share buyback program and LTI plans | ||||
[4] | Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating activities | ||||
[5] | The forward contracts are mainly related to the share buyback program | ||||
[6] | Long-term debt includes the short-term portion of long-term debt, and short-term debt excludes the short-term portion of the long-term debt. | ||||
[7] | Long-term debt includes the short-term portion of long-term debt, and short-term debt excluding the short-term portion of long-term debt. |
Contingent assets and liabili_2
Contingent assets and liabilities - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2012 | Dec. 05, 2012 | |
Contingent assets and liabilities - Text Details (Detail) [Line Items] | ||||
Fair value of guarantees recognized on the balance sheet | ||||
Increase (decrease) of off-balance-sheet business and credit-related guarantees provided on behalf of third parties and associates | € (3) | |||
Off-balance-sheet business and credit-related guarantees provided on behalf of third parties and associates | € 40 | € 44 | ||
Cathode Ray Tubes (CRT) [Member] | ||||
Contingent assets and liabilities - Text Details (Detail) [Line Items] | ||||
Fine imposed | € 313 | |||
Company and LG Electronics Inc [Member] | ||||
Contingent assets and liabilities - Text Details (Detail) [Line Items] | ||||
Fine imposed | € 392 | |||
Legal proceedings contingent liability [member] | Company and LG Electronics Inc [Member] | ||||
Contingent assets and liabilities - Text Details (Detail) [Line Items] | ||||
Fine payable recognized | € 509 |
Related-party transactions - Te
Related-party transactions - Text Details (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related-party transactions - Text Details (Detail) [Line Items] | |||
Non-recourse third-party receivables sold to PMC US | € 244 | € 151 | € 139 |
Bottom of range [member] | |||
Related-party transactions - Text Details (Detail) [Line Items] | |||
Presumed significant influence, voting rights | 20.00% | 20.00% | |
Top of range [member] | |||
Related-party transactions - Text Details (Detail) [Line Items] | |||
Presumed significant influence, voting rights | 50.00% | 50.00% |
Related-party transactions - Re
Related-party transactions - Related-party transactions (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related party transactions [abstract] | |||
Revenue from sale of goods, related party transactions | € 232 | € 196 | € 207 |
Purchases of goods, related party transactions | 67 | 62 | 81 |
Amounts receivable, related party transactions | 28 | 127 | 33 |
Amounts payable, related party transactions | € 1 | € 36 | € 3 |
Share-based compensation - Text
Share-based compensation - Text Details (Detail) | 12 Months Ended | |||||||
Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Share-based compensation costs | € 102,000,000 | € 122,000,000 | € 95,000,000 | |||||
Employee stock purchase plan | 5,000,000 | |||||||
Expense from share-based payment transactions with employees | € 107,000,000 | |||||||
Comparison group for performance shares | 20 | 20 | 20 | 21 | ||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 15,000,000 | € 29,000,000 | 20,000,000 | |||||
Euro [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 2.3 | 2.3 | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 19,800,000 | |||||||
US Dollar [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 2.3 | 2.3 | ||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 14,700,000 | |||||||
former Philips employees now employed by Signify [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Expense from share-based payment transactions with employees | € 10,000,000 | |||||||
Accelerate options [Member] | Euro [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 3.3 | 3.3 | ||||||
Aggregate intrinsic value of liabilities from share-pased payments | € 4,300,000 | |||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | 4,000,000 | 6,000,000 | ||||||
Proceeds from exercise of options | 4,000,000 | 8,000,000 | ||||||
Tax deductions realized as a result of option exercises | € 200,000 | 300,000 | ||||||
Accelerate options [Member] | US Dollar [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Exercise price of outstanding share options | $ | $ 20.02 | |||||||
Weighted average remaining contractual life of outstanding share options | 3.1 | 3.1 | ||||||
Aggregate intrinsic value of liabilities from share-pased payments | $ | $ 1,900,000 | |||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 1,000,000 | $ 1,000,000 | ||||||
Option plans [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 2.3 | 2.3 | ||||||
Aggregate intrinsic value of liabilities from share-pased payments | € 20,000,000 | |||||||
Option plans [Member] | Euro [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Proceeds from exercise of options | 57,000,000 | 128,000,000 | 65,000,000 | |||||
Tax deductions realized as a result of option exercises | € 3,000,000 | € 5,000,000 | € 2,000,000 | |||||
Option plans [Member] | US Dollar [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Weighted average remaining contractual life of outstanding share options | 2.3 | 2.3 | ||||||
Aggregate intrinsic value of liabilities from share-pased payments | $ | $ 15,000,000 | |||||||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | $ | $ 16,000,000 | $ 22,000,000 | $ 6,000,000 | |||||
Option plans [Member] | Bottom of range [member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Exercise price of outstanding share options | $ | 16.76 | |||||||
Option plans [Member] | Top of range [member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Exercise price of outstanding share options | $ | $ 36.63 | |||||||
Performance share plans [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Risk free interest rate, share options granted | (0.47%) | (0.47%) | ||||||
Expected volatility, share options granted | 22.00% | 22.00% | ||||||
Unrecognized compensation costs related to non-vested shares | € 111,000,000 | |||||||
Cost recognition period (weighted average) | 1.85 | 1.85 | ||||||
Restricted shares [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Unrecognized compensation costs related to non-vested shares | € 59,000,000 | |||||||
Cost recognition period (weighted average) | 1.83 | 1.83 | ||||||
Cliff-vesting period | 3 | 3 | ||||||
Bottom of range [member] | Accelerate options [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Exercise price of outstanding share options | € 15.24 | |||||||
Bottom of range [member] | Option plans [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Exercise price of outstanding share options | 12.63 | |||||||
Top of range [member] | Accelerate options [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Exercise price of outstanding share options | 22.43 | |||||||
Top of range [member] | Option plans [Member] | ||||||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||||||
Exercise price of outstanding share options | € 24.90 |
Share-based compensation - Perf
Share-based compensation - Performance shares (Detail) | 12 Months Ended | |||
Dec. 31, 2018EUR (€)shares | Dec. 31, 2017EUR (€) | |||
Euro [Member] | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,807,009 | |||
US Dollar [Member] | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of other equity instruments outstanding in share-based payment arrangement | 1,753,505 | |||
Performance share plans [Member] | Euro [Member] | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of other equity instruments outstanding in share-based payment arrangement | 4,738,099 | 6,828,444 | [1] | |
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € 32.54 | € 29.15 | [1] | |
Number of other equity instruments granted in share-based payment arrangement | 1,322,107 | |||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € 39.22 | |||
Notional Dividends | [2] | 112,952 | ||
Weighted Average Exercise Price Notional Dividends | [2] | € 32.21 | ||
Number of other equity instruments exercised or vested in share-based payment arrangement | 4,237,835 | |||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € 28.50 | |||
Number of other equity instruments forfeited in share-based payment arrangement | 415,273 | |||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € 29.61 | |||
Adjusted Quantity | [3] | 1,127,703 | ||
Weighted Average Exercise Price Adjusted Quantity | [3] | € 28.97 | ||
Performance share plans [Member] | US Dollar [Member] | ||||
Share-based compensation - Text Details (Detail) [Line Items] | ||||
Number of other equity instruments outstanding in share-based payment arrangement | 2,878,048 | 4,396,514 | [1] | |
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € 23.71 | € 31.96 | [1] | |
Number of other equity instruments granted in share-based payment arrangement | 907,782 | |||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € 47.50 | |||
Notional Dividends | [2] | 70,579 | ||
Weighted Average Exercise Price Notional Dividends | [2] | € 37.51 | ||
Number of other equity instruments exercised or vested in share-based payment arrangement | 2,840,286 | |||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € 30.14 | |||
Number of other equity instruments forfeited in share-based payment arrangement | 424,139 | |||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € 36.12 | |||
Number of other equity instruments adjusted quantity | shares | [3] | 767,599 | ||
Weighted average exercise price of other equity instruments adjusted quantity | [3] | € 30.32 | ||
[1] | The outstanding number of performance shares as per January 1, 2018 was updated to reflect the dividend declared on outstanding shares between grant date and vesting date that will be issued in shares. | |||
[2] | Dividend declared in 2018 on outstanding shares. | |||
[3] | Adjusted quantity includes the adjustments made to performance shares outstanding due to updates on the actual and expected EPS. |
Share-based compensation - Rest
Share-based compensation - Restricted shares (Detail) | 12 Months Ended | ||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | ||
Euro [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of other equity instruments outstanding in share-based payment arrangement | 1,807,009 | ||
Euro [Member] | Restricted shares [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of other equity instruments outstanding in share-based payment arrangement | 2,220,891 | ||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € 29.69 | ||
Number of other equity instruments granted in share-based payment arrangement | 729,798 | ||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € 33.15 | ||
Notional Dividends | [1] | 52,317 | |
Weighted Average Exercise Price Notional Dividends | [1] | € 29.58 | |
Number of other equity instruments exercised or vested in share-based payment arrangement | 193,968 | ||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € 25.40 | ||
Number of other equity instruments forfeited in share-based payment arrangement | 174,266 | ||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € 28.52 | ||
US Dollar [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of other equity instruments outstanding in share-based payment arrangement | 1,753,505 | ||
US Dollar [Member] | Restricted shares [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of other equity instruments outstanding in share-based payment arrangement | 1,905,867 | ||
Weighted average exercise price of other equity instruments outstanding in share-based payment arrangement | € 33.58 | € 31.26 | |
Number of other equity instruments granted in share-based payment arrangement | 717,654 | ||
Weighted average exercise price of other equity instruments granted in share-based payment arrangement | € 36.67 | ||
Notional Dividends | [1] | 48,082 | |
Weighted Average Exercise Price Notional Dividends | [1] | € 33.35 | |
Number of other equity instruments exercised or vested in share-based payment arrangement | 407,743 | ||
Weighted average exercise price of other equity instruments exercised or vested in share-based payment arrangement | € 28.84 | ||
Number of other equity instruments forfeited in share-based payment arrangement | 205,630 | ||
Weighted average exercise price of other equity instruments forfeited in share-based payment arrangement | € 33.97 | ||
[1] | Dividend declared in 2018 on outstanding shares. |
Share-based compensation - Opti
Share-based compensation - Options on EUR-denominated listed share (Detail) - Euro [Member] | 12 Months Ended | |
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,648,720 | |
Option plans [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,648,720 | 2,772,210 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 18.90 | € 19.49 |
Number of share options exercised in share-based payment arrangement | 1,024,063 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | € 20.14 | |
Number of share options expired in share-based payment arrangement | 99,427 | |
Weighted average exercise price of share options expired in share-based payment arrangement | € 22.52 | |
Number of share options exercisable in share-based payment arrangement | 1,648,720 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | € 18.90 |
Share-based compensation - Op_2
Share-based compensation - Options on USD-denominated listed share (Detail) - US Dollar [Member] | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,633,868 | |
Option plans [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,633,868 | 3,309,766 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 26.13 | $ 28.41 |
Number of share options exercised in share-based payment arrangement | 1,451,964 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | $ 29.91 | |
Number of share options expired in share-based payment arrangement | 223,934 | |
Weighted average exercise price of share options expired in share-based payment arrangement | $ 35.36 | |
Number of share options exercisable in share-based payment arrangement | 1,633,868 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 26.13 |
Share-based compensation - Outs
Share-based compensation - Outstanding options (Detail) € in Millions | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Share-based compensation - Text Details (Detail) [Line Items] | |||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 15 | € 29 | € 20 |
Euro [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 1,648,720 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 19.8 | ||
Weighted average remaining contractual life of outstanding share options | 2.3 | ||
US Dollar [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 1,633,868 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 14.7 | ||
Weighted average remaining contractual life of outstanding share options | 2.3 | ||
Price range five [Member] | US Dollar [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 368,670 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 0.7 | ||
Weighted average remaining contractual life of outstanding share options | 1.4 | ||
Price range one [Member] | Euro [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 701,262 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 11.6 | ||
Weighted average remaining contractual life of outstanding share options | 2.7 | ||
Price range one [Member] | US Dollar [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 595,675 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 3.3 | ||
Weighted average remaining contractual life of outstanding share options | 2.3 | ||
Price range three [Member] | Euro [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 925,447 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 7.9 | ||
Weighted average remaining contractual life of outstanding share options | 2 | ||
Price range three [Member] | US Dollar [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 23,925 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 0.3 | ||
Weighted average remaining contractual life of outstanding share options | 3 | ||
Price range two [Member] | Euro [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 22,011 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 0.3 | ||
Weighted average remaining contractual life of outstanding share options | 3 | ||
Price range two [Member] | US Dollar [Member] | |||
Share-based compensation - Text Details (Detail) [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | 645,598 | ||
Intrinsic value of liabilities from share-based payment transactions for which counterparty's right to cash or other assets vested | € 10.4 | ||
Weighted average remaining contractual life of outstanding share options | 2.7 |
Share-based compensation - Acce
Share-based compensation - Accelerate! options (Detail) | 12 Months Ended | |
Dec. 31, 2018EUR (€) | Jan. 01, 2018EUR (€) | |
Euro [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,648,720 | |
US Dollar [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 1,633,868 | |
Accelerate options [Member] | Euro [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 296,750 | 481,200 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 16.57 | € 16.06 |
Number of share options exercised in share-based payment arrangement | 179,450 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | € 15.24 | |
Number of share options forfeited in share-based payment arrangement | 5,000 | |
Weighted average exercise price of share options forfeited in share-based payment arrangement | € 15.24 | |
Number of share options exercisable in share-based payment arrangement | 296,750 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | € 16.57 | |
Accelerate options [Member] | US Dollar [Member] | ||
Share-based compensation - Text Details (Detail) [Line Items] | ||
Number of share options outstanding in share-based payment arrangement | 123,300 | 170,800 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 20.02 | € 20.02 |
Number of share options exercised in share-based payment arrangement | 47,500 | |
Weighted average exercise price of share options exercised in share-based payment arrangement | € 20.02 | |
Number of share options forfeited in share-based payment arrangement | 0 | |
Number of share options exercisable in share-based payment arrangement | 123,300 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | € 20.02 |
Information on remuneration - T
Information on remuneration - Text Details (Detail) | 12 Months Ended | ||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Board of management [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Key management personnel compensation | € 9,848,153 | € 7,808,117 | € 8,904,859 |
Number of share options outstanding in share-based payment arrangement | 333,670 | 333,670 | 476,200 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 18.99 | € 18.99 | € 19.47 |
Executive committee [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Number of members | 13 | 12 | 12 |
Key management personnel compensation | € 26,755,003 | € 25,848,741 | € 22,433,827 |
Number of share options outstanding in share-based payment arrangement | 333,670 | 541,400 | 750,631 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | € 18.99 | € 19.82 | € 21.17 |
Supervisory board [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Key management personnel compensation | 1,088,375 | € 950,500 | € 1,037,209 |
Other compensation, product arrangement entitlement | € 2,000 |
Information on remuneration - R
Information on remuneration - Remuneration costs of the Executive Committee (Detail) - Executive committee [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | € 26,755,003 | € 25,848,741 | € 22,433,827 | |
Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[2] | 5,651,996 | 6,345,576 | 5,746,347 |
Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 8,370,406 | 8,089,063 | 6,388,667 |
Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[3] | 1,013,128 | 1,861,803 | 1,556,514 |
Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[4] | 1,919,839 | 1,886,963 | 1,854,129 |
Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 411,028 | 408,695 | 180,077 |
Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[5],[6] | 8,896,369 | 6,371,297 | 5,943,782 |
Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[5] | 492,237 | 885,343 | 764,311 |
Stock options [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1],[5] | € 0 | € 0 | € 0 |
[1] | The Executive Committee consisted of 13 members as per December 31, 2018 (2017: 12 members; 2016: 12 members) | |||
[2] | The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. | |||
[3] | The stated amounts mainly concern (share of) allowances to members of the 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] | Pension allowances are gross taxable allowances paid to the Executive Committee members in the Netherlands. These allowances are part of the pension arrangement | |||
[5] | Costs of performance shares, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date | |||
[6] | For 2018, a release of EUR 1,740,520 (2017: EUR 2,469,670; 2016: EUR 0) is included due to non-vesting of performance shares |
Information on remuneration -_2
Information on remuneration - Remuneration costs of individual members of the Board of Management (Detail) - Board of management [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | € 9,848,153 | € 7,808,117 | € 8,904,859 | |
Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 2,264,433 | 2,322,612 | 2,514,044 |
Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 2,481,250 | 2,590,417 | 2,550,000 | |
Key management personnel compensation other | 127,863 | 261,667 | 256,903 | |
Key management personnel compensation | 9,848,153 | 7,808,117 | 8,904,859 | |
Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 923,214 | 1,012,075 | 1,015,368 |
Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 77,124 | 75,834 | 74,514 | |
Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 3,973,486 | 1,540,703 | 2,469,397 |
Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 783 | 4,809 | 24,633 |
Stock options [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 0 | 0 | 0 |
A. Bhattacharya [Member] | Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 637,536 | 553,392 | 540,072 |
A. Bhattacharya [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 718,750 | 687,500 | 650,000 | |
Key management personnel compensation other | 53,522 | 100,918 | 73,642 | |
Key management personnel compensation | 2,595,688 | 2,247,822 | 1,856,175 | |
A. Bhattacharya [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 217,823 | 210,450 | 201,524 |
A. Bhattacharya [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 25,708 | 25,278 | 24,838 | |
A. Bhattacharya [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 942,220 | 669,396 | 362,758 |
A. Bhattacharya [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 129 | 888 | 3,341 |
A. Bhattacharya [Member] | Stock options [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 0 | 0 | 0 |
F.A. van Houten [Member] | Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 1,264,286 | 1,270,166 | 1,354,227 |
F.A. van Houten [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 1,205,000 | 1,205,000 | 1,197,500 | |
Key management personnel compensation other | 39,042 | 84,053 | 126,703 | |
Key management personnel compensation | 5,391,265 | 5,101,429 | 4,675,042 | |
F.A. van Houten [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 537,181 | 537,621 | 536,195 |
F.A. van Houten [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 25,708 | 25,278 | 24,838 | |
F.A. van Houten [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 2,319,460 | 1,975,277 | 1,423,538 |
F.A. van Houten [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 588 | 4,034 | 12,041 |
F.A. van Houten [Member] | Stock options [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 0 | 0 | 0 |
M.J. van Ginneken [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation other | 35,299 | 13,120 | ||
Key management personnel compensation | 1,861,200 | 306,061 | ||
M.J. van Ginneken [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 168,210 | 27,796 | |
M.J. van Ginneken [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 25,708 | 4,213 | ||
M.J. van Ginneken [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 711,806 | 100,022 | |
M.J. van Ginneken [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | 66 | 75 | |
M.J. van Ginneken [Member] | Stock options [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | € 0 | 0 | |
P.A.J. Nota [Member] | Annual incentive [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | [1] | 429,886 | 619,745 | |
P.A.J. Nota [Member] | Base salary [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, short-term employee benefits | 606,250 | 702,500 | ||
Key management personnel compensation other | 63,576 | 56,558 | ||
Key management personnel compensation | 152,805 | 2,373,642 | ||
P.A.J. Nota [Member] | Pension allowances [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | [2] | 236,208 | 277,649 | |
P.A.J. Nota [Member] | Pension scheme costs [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, post-employment benefits | 21,065 | 24,838 | ||
P.A.J. Nota [Member] | Performance share plans [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | (1,203,992) | 683,101 | |
P.A.J. Nota [Member] | Restricted shares [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | (188) | 9,251 | |
P.A.J. Nota [Member] | Stock options [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation, share-based payment | [3] | € 0 | € 0 | |
[1] | The annual incentives are related to the performance in the year reported which are paid out in the subsequent year. For more details on the annual incentives refer to 2018 Annual Incentive | |||
[2] | The stated amounts mainly concern (share of) allowances to members of the Executive Committee that can be considered as remuneration. In a situation where such a share of an allowance can be considered as (indirect) remuneration (for example, private use of the company car), then the share is both valued and accounted for here. The method employed by the fiscal authorities is the starting point for the value stated. | |||
[3] | Costs of performance shares, stock options and restricted share rights are based on accounting standards (IFRS) and do not reflect the value of stock options at the end of the lock up period and the value of performance shares and restricted share rights at the vesting/release date |
Information on remuneration - N
Information on remuneration - Number of performance shares (holdings) (Detail) - Performance share plans [Member] | 12 Months Ended |
Dec. 31, 2018shares | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 332,006 |
Number of share options granted in share-based payment arrangement | 124,195 |
Number of share options awarded dividend shares | 8,237 |
Number of share options exercised in share-based payment arrangement | 153,500 |
Number of share options outstanding in share-based payment arrangement at end of period | 372,351 |
A. Bhattacharya [Member] | Vesting date 2018-05-05 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 12,790 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 0 |
Number of share options exercised in share-based payment arrangement | 21,312 |
Number of share options outstanding in share-based payment arrangement at end of period | 0 |
A. Bhattacharya [Member] | Vesting date 2019-04-29 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 28,265 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 640 |
Number of share options exercised in share-based payment arrangement | 0 |
Number of share options outstanding in share-based payment arrangement at end of period | 28,905 |
A. Bhattacharya [Member] | Vesting date 2020-05-11 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 32,623 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 738 |
Number of share options exercised in share-based payment arrangement | 0 |
Number of share options outstanding in share-based payment arrangement at end of period | 33,361 |
F.A. van Houten [Member] | Vesting date 2018-05-05 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 60,112 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 0 |
Number of share options exercised in share-based payment arrangement | 100,207 |
Number of share options outstanding in share-based payment arrangement at end of period | 0 |
F.A. van Houten [Member] | Vesting date 2019-04-29 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 62,880 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 1,423 |
Number of share options exercised in share-based payment arrangement | 0 |
Number of share options outstanding in share-based payment arrangement at end of period | 64,303 |
F.A. van Houten [Member] | Vesting date 2020-05-11 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 74,878 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 1,693 |
Number of share options exercised in share-based payment arrangement | 0 |
Number of share options outstanding in share-based payment arrangement at end of period | 76,571 |
M.J. van Ginneken [Member] | Vesting date 2018-05-05 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 19,185 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 0 |
Number of share options exercised in share-based payment arrangement | 31,981 |
Number of share options outstanding in share-based payment arrangement at end of period | 0 |
M.J. van Ginneken [Member] | Vesting date 2019-04-29 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 22,243 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 503 |
Number of share options exercised in share-based payment arrangement | 0 |
Number of share options outstanding in share-based payment arrangement at end of period | 22,746 |
M.J. van Ginneken [Member] | Vesting date 2020-05-11 [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Number of share options outstanding in share-based payment arrangement at beginning of period | 19,030 |
Number of share options granted in share-based payment arrangement | 0 |
Number of share options awarded dividend shares | 431 |
Number of share options exercised in share-based payment arrangement | 0 |
Number of share options outstanding in share-based payment arrangement at end of period | 19,461 |
Information on remuneration - A
Information on remuneration - Accumulated annual pension entitlements and pension-related costs (Detail) - Board of management [Member] | Dec. 31, 2018EUR (€) |
A. Bhattacharya [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Age | 57 |
Accumulated annual pension | € 27,383 |
F.A. van Houten [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Age | 58 |
Accumulated annual pension | € 298,470 |
M.J. van Ginneken [Member] | |
Information on remuneration - Text Details (Detail) [Line Items] | |
Age | 45 |
Accumulated annual pension | € 39,552 |
Information on remuneration -_3
Information on remuneration - Remuneration of the Supervisory Board (Detail) - Supervisory board [Member] - EUR (€) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | € 1,088,375 | € 950,500 | € 1,037,209 | |
Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 189,125 | 171,500 | 175,876 | |
Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 731,250 | 625,000 | 698,333 | |
Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 168,000 | 154,000 | 163,000 |
C.J.A. van Lede [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 39,708 | |||
C.J.A. van Lede [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 4,375 | |||
C.J.A. van Lede [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 33,333 | |||
C.J.A. van Lede [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 2,000 | ||
C. Poon [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 154,875 | 139,500 | 144,500 | |
C. Poon [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 36,625 | 32,500 | 32,500 | |
C. Poon [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 96,250 | 90,000 | 90,000 | |
C. Poon [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 22,000 | 17,000 | 22,000 |
D.E.I. Pyott [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 142,250 | 135,000 | 135,000 | |
D.E.I. Pyott [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 25,250 | 23,000 | 23,000 | |
D.E.I. Pyott [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 85,000 | 80,000 | 80,000 | |
D.E.I. Pyott [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 32,000 | 32,000 | 32,000 |
E. Kist [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 46,167 | |||
E. Kist [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 4,167 | |||
E. Kist [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 40,000 | |||
E. Kist [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 2,000 | ||
H. von Prondzynski [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 136,125 | 132,000 | 124,500 | |
H. von Prondzynski [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 36,625 | 32,500 | 25,000 | |
H. von Prondzynski [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 85,000 | 80,000 | 80,000 | |
H. von Prondzynski [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 14,500 | 19,500 | 19,500 |
J.P. Tai [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 141,625 | 144,500 | 146,167 | |
J.P. Tai [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 34,625 | 32,500 | 34,167 | |
J.P. Tai [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 85,000 | 80,000 | 80,000 | |
J.P. Tai [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 22,000 | 32,000 | 32,000 |
N. Dhawan [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 123,750 | 120,000 | 120,000 | |
N. Dhawan [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 14,250 | 13,000 | 13,000 | |
N. Dhawan [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 85,000 | 80,000 | 80,000 | |
N. Dhawan [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | 24,500 | 27,000 | 27,000 |
O. Gadiesh [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 121,250 | 112,500 | 112,500 | |
O. Gadiesh [Member] | Committees [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 14,250 | 13,000 | 13,000 | |
O. Gadiesh [Member] | Membership [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | 85,000 | 80,000 | 80,000 | |
O. Gadiesh [Member] | Other compensation [Member] | ||||
Information on remuneration - Text Details (Detail) [Line Items] | ||||
Key management personnel compensation | [1] | € 22,000 | € 19,500 | € 19,500 |
[1] | The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-European travel (effective 2015) and the entitlement of EUR 2,000 under the Philips product arrangement |
Information on remuneration - S
Information on remuneration - Shares held by Board members (Detail) - Board of management [Member] - shares | Dec. 31, 2018 | Dec. 31, 2017 | |
A. Bhattacharya [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 66,794 | 53,974 |
F.A. van Houten [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 292,302 | 233,119 |
H. von Prondzynski [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 3,937 | 3,851 |
J.P. Tai [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 3,844 | 3,844 |
M.J. van Ginneken [Member] | |||
Information on remuneration - Text Details (Detail) [Line Items] | |||
Shares held | [1] | 47,856 | 30,246 |
[1] | Reference date for board membership is December 31, 2018. |
Fair value of financial asset_3
Fair value of financial assets and liabilities - Text Details (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
EPDSolutionsLtd[Member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Percentage points increase for every milestone | 10.00% | |
Percentage points decrease for every milestone | (10.00%) | |
Basis points increase in discount rate | 100 | |
Basis points decrease in discount rate | 100 | |
Bottom of range [member] | EPDSolutionsLtd[Member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Milestones and discount rates | 3.00% | |
Bottom of range [member] | EPDSolutionsLtd[Member] | Discount rates [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | (3.00%) | |
Bottom of range [member] | EPDSolutionsLtd[Member] | Milestone [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | (4.00%) | |
Top of range [member] | EPDSolutionsLtd[Member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Milestones and discount rates | 4.00% | |
Top of range [member] | EPDSolutionsLtd[Member] | Discount rates [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | 3.00% | |
Top of range [member] | EPDSolutionsLtd[Member] | Milestone [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Change in fair value of contingent consideration | 3.00% | |
Combined Lumileds and Automotive Lighting businesses [Member] | Level 3 of fair value hierarchy [member] | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Financial assets measured at fair value through other comprehensive income | € 112 | |
Financial assets available-for-sale | € 243 | |
Instantaneous increase in assumed earnings | 10.00% | |
Increase in fair value of the asset when earnings increase | 60.00% | |
Instantaneous decrease in assumed earnings | (10.00%) | |
Decrease in fair value of the asset when earnings decrease | (47.00%) | |
Instantaneous increase in valuation multiples | 10.00% | |
Increase in fair value of the asset when valuation multiples increase | 34.00% | |
Instantaneous decrease in valuation multiples | (10.00%) | |
Decrease in fair value of the asset when valuation multiples decrease | 30.00% |
Fair value of financial asset_4
Fair value of financial assets and liabilities - Fair value of financial assets and liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets, at fair value, total | € 817 | |||||||
Investments in equity instruments designated at fair value through other comprehensive income | [1] | 435 | ||||||
Total financial assets at fair value through other comprehensive income | 664 | |||||||
Derivative financial assets | 36 | € 78 | ||||||
Cash and cash equivalents | [2] | 1,688 | 1,939 | € 2,334 | € 1,766 | |||
Current loans and receivables | 2 | 2 | ||||||
Non-current loans and receivables | 46 | 114 | ||||||
Trade and other current receivables | 4,035 | € 3,911 | 3,909 | |||||
Trade and other non-current receivables | 162 | 130 | ||||||
Financial assets at amortised cost, total | 5,902 | 6,095 | ||||||
Total financial assets | 6,718 | 7,909 | ||||||
Contingent Consideration | 409 | 66 | ||||||
Financial Liabilities Carried At FV through P&L | 409 | |||||||
Derivative financial liabilities | 290 | 383 | ||||||
Financial liabilities at fair value through profit or loss | 699 | 449 | ||||||
Trade and other current payables | 2,303 | [3],[4] | 2,090 | |||||
Interest payable | 36 | 38 | ||||||
Debt (Corporate bond and finance lease) | 3,621 | 3,378 | ||||||
Debt (Bank loans, overdrafts etc.) | 1,200 | 1,337 | ||||||
Financial liabilities at amortised cost, total | 7,159 | 6,843 | ||||||
Total financial liabilities | 7,858 | 7,292 | ||||||
Non-current financial assets available-for-sale | 446 | |||||||
Securities classified as assets held for sale | 1,264 | |||||||
Financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | 27 | |||||||
Held-to-maturity investments | 1 | |||||||
Financial assets at amortised cost, category [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Trade and other current receivables | 4,004 | 3,909 | ||||||
Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 32 | |||||||
At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets, at fair value, total | 116 | [5] | 1,815 | [6] | ||||
Derivative financial assets | 36 | [5] | 78 | [6] | ||||
Derivative financial liabilities | 290 | [5] | 383 | [6] | ||||
Financial liabilities, at fair value, total | 699 | [5] | 449 | [6] | ||||
Debt (Corporate bond and finance lease) | 3,906 | [5] | 3,860 | [6] | ||||
Non-current financial assets available-for-sale | [6] | 446 | ||||||
Securities classified as assets held for sale | [6] | 1,264 | ||||||
Financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | [6] | 27 | ||||||
At fair value [member] | Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | [5] | 32 | ||||||
Level 1 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets, at fair value, total | 20 | 1,313 | ||||||
Debt (Corporate bond and finance lease) | 3,576 | 3,579 | ||||||
Non-current financial assets available-for-sale | 49 | |||||||
Securities classified as assets held for sale | 1,264 | |||||||
Level 2 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets, at fair value, total | 22 | 130 | ||||||
Derivative financial assets | 36 | 78 | ||||||
Derivative financial liabilities | 290 | 383 | ||||||
Financial liabilities, at fair value, total | 290 | 383 | ||||||
Debt (Corporate bond and finance lease) | 330 | 281 | ||||||
Non-current financial assets available-for-sale | 29 | |||||||
Financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | 23 | |||||||
Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets, at fair value, total | 74 | 372 | ||||||
Total financial assets | 420 | |||||||
Financial liabilities, at fair value, total | 409 | 66 | ||||||
Total financial liabilities | 409 | € 66 | 66 | |||||
Non-current financial assets available-for-sale | 368 | |||||||
Financial assets at fair value through profit or loss, designated upon initial recognition or subsequently | 4 | |||||||
Level 3 of fair value hierarchy [member] | Trade receivables [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 32 | |||||||
Debt securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Total financial assets at fair value through profit or loss | 116 | € 1,815 | ||||||
Financial assets measured at fair value through other comprehensive income | 26 | |||||||
Debt securities [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | [5] | 26 | ||||||
Debt securities [member] | Level 2 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 26 | |||||||
Debt securities [member] | Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 0 | |||||||
Other equity securities [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Total financial assets at fair value through profit or loss | [5] | 20 | ||||||
Other equity securities [member] | At fair value [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | [5] | 172 | ||||||
Other equity securities [member] | Carrying amount [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 172 | |||||||
Other equity securities [member] | Level 1 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 22 | |||||||
Other equity securities [member] | Level 2 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 1 | |||||||
Other equity securities [member] | Level 3 of fair value hierarchy [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Financial assets measured at fair value through other comprehensive income | 149 | |||||||
Other Financial Assets [member] | ||||||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||||||
Total financial assets at fair value through profit or loss | € 27 | |||||||
[1] | The majority of the balance reflects the remaining stake in Signify (formerly Philips Lighting), which relates to equity instruments. | |||||||
[2] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | |||||||
[3] | Amounts in this table are undiscounted | |||||||
[4] | This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement | |||||||
[5] | For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the short maturity and the nature of these instruments, and therefore fair value information is not included in the table above. | |||||||
[6] | For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and finance leases), the carrying amounts approximate fair value because of the short maturity and the nature of these instruments, and therefore fair value information is not included in the table above. |
Fair value of financial asset_5
Fair value of financial assets and liabilities - Reconciliation of the fair value hierarchy (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||
Financial assets | € 6,718 | € 7,909 | ||
Financial liabilities | 7,858 | 7,292 | ||
Level 3 of fair value hierarchy [member] | ||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||
Financial assets | € 420 | |||
Financial liabilities | 409 | € 66 | 66 | |
Financial assets, class [member] | Level 3 of fair value hierarchy [member] | ||||
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||||
Financial assets | 255 | € 372 | ||
Purchases, fair value measurement, assets | 30 | |||
Sales, fair value measurement, assets | (35) | |||
Financial income and expenses | 0 | |||
Gains (losses) recognised in other comprehensive income, fair value measurement, assets | [1] | (145) | ||
Receivables Held To Collect And Sell | € (15) | |||
[1] | Includes translation differences |
Fair value of financial asset_6
Fair value of financial assets and liabilities - Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements (Detail) - Derivatives [member] - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Gross financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | € 36 | € 78 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position, total | 36 | 78 |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial assets | (25) | (38) |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements, total | € 12 | € 39 |
Fair value of financial asset_7
Fair value of financial assets and liabilities - Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements (Detail) - Derivatives [member] - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value of financial assets and liabilities - Text Details (Detail) [Line Items] | ||
Gross financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € (290) | € (383) |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position, total | (290) | (383) |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 25 | 38 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements, total | € (265) | € (345) |
Details of treasury _ other f_3
Details of treasury / other financial risks - Text Details (Detail) € in Thousands, $ in Millions | Dec. 31, 2018EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Jan. 01, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2015EUR (€) | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Cash and cash equivalents | [1] | € 1,688,000 | € 1,688,000 | € 1,939,000 | € 2,334,000 | € 1,688,000 | € 1,766,000 | ||||
Short-term deposits, classified as cash equivalents | 1,174,000 | 1,174,000 | 1,302,000 | 1,174,000 | |||||||
Other non-current financial assets | 360,000 | 360,000 | 587,000 | [2] | 360,000 | ||||||
Investments in equity instruments designated at fair value through other comprehensive income | [3] | 435,000 | 435,000 | 435,000 | |||||||
Contractual capital commitments | 86,000 | 86,000 | 83,000 | 86,000 | |||||||
Accounts payable known to have been sold onwards under supplier finance arrangements | 275,000 | 275,000 | 275,000 | ||||||||
Operating lease payments for sale-and-leaseback arrangements | 31,000 | € 31,000 | 31,000 | 31,000 | |||||||
Hedge tenor of net anticipated exposure | 15 months | ||||||||||
Net anticipated exposures hedge layer size | 20.00% | ||||||||||
Net anticipated exposures hedge maximum | 80.00% | ||||||||||
Equity | 12,117,000 | € 12,117,000 | 12,023,000 | 13,453,000 | 12,117,000 | 11,725,000 | |||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | 200 | 1,400 | |||||||||
Net fair value of transactional hedges | (7,000) | € (7,000) | € (21,000) | € (7,000) | |||||||
Increase in the value of the EUR against all currencies | 10.00% | 10.00% | 10.00% | ||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | € 113,000 | € 102,000 | |||||||||
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 | 14,000 | ||||||||||
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 | 99,000 | ||||||||||
Other comprehensive income, before tax, exchange differences on translation | 383,000 | (1,177,000) | 219,000 | ||||||||
Cross-currency interest rate swaps nominal value | $ | $ 1,100 | ||||||||||
Fair value liability of cross-currency interest rate swaps designated as net investment hedges | 246,000 | 246,000 | 330,000 | € 246,000 | |||||||
External bond funding for a nominal value designated as net investment hedges | $ | $ 1,473 | $ 2,535 | |||||||||
External bond funding book value designated as net investment hedges | (1,290,000) | (1,290,000) | (1,290,000) | ||||||||
Net fair value of financing derivatives | 246,000 | 246,000 | 326,000 | 246,000 | |||||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | 63,000 | 213,000 | |||||||||
Borrowings | 4,821,000 | 4,821,000 | 4,715,000 | 5,606,000 | 4,821,000 | ||||||
Non-current portion of non-current borrowings | 3,427,000 | 3,427,000 | 4,044,000 | 4,021,000 | 3,427,000 | ||||||
Short-term debt | [4],[5] | 164,000 | 164,000 | 164,000 | |||||||
Financial assets, at fair value | 817,000 | 817,000 | 817,000 | ||||||||
Threshold of cash and short term deposits with A- credit rating | 10,000 | ||||||||||
Captive retained per claim for general, product and professional liability claims | 5,000 | ||||||||||
Captive retained per claim for general, product and professional liability claims, aggregate | 10,000 | ||||||||||
Interest rate risk [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Cash and cash equivalents | 1,688,000 | 1,688,000 | 1,939,000 | 1,688,000 | |||||||
Borrowings | (4,821,000) | (4,821,000) | (4,715,000) | (4,821,000) | |||||||
Non-current portion of non-current borrowings | (3,427,000) | (3,427,000) | (4,044,000) | (3,427,000) | |||||||
Short-term debt | € (1,394,000) | € (1,394,000) | € (672,000) | € (1,394,000) | |||||||
Ratio of fixed-rate long-term debt to total outstanding debt | 67.00% | 67.00% | 72.00% | 67.00% | 67.00% | 72.00% | |||||
Instantaneous decrease in long-term interest rates | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||
Increase in the value of the fixed rate long term debt excluding forward contracts driven by 1% interest decrease | € (275,000) | € (275,000) | € (271,000) | € (275,000) | |||||||
Instantaneous increase in long-term interest rates | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||
Decrease in the value of the fixed rate long term debt excluding forward contracts driven by 1% interest increase | € 276,000 | € 276,000 | € 271,000 | € 276,000 | |||||||
Annualized net interest expense driven by 1% interest increase | 9,000 | 12,000 | |||||||||
Bottom of range [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Policy deductibles per occurrence | 250 | ||||||||||
Top of range [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Policy deductibles per occurrence | 5,000 | ||||||||||
China [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 1,900,000 | 1,900,000 | 1,900,000 | ||||||||
Germany [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 551,000 | 551,000 | 551,000 | ||||||||
United Kingdom of Great Britain and Northern Ireland [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 643,000 | 643,000 | 643,000 | ||||||||
India [Member] | Bottom of range [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 300,000 | 300,000 | 300,000 | ||||||||
India [Member] | Top of range [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 500,000 | 500,000 | 500,000 | ||||||||
Japan [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 714,000 | 714,000 | 714,000 | ||||||||
Netherlands [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 1,900,000 | 1,900,000 | 1,900,000 | ||||||||
Other countries [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 500,000 | 500,000 | 500,000 | ||||||||
United States of America [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Country risk exposure | 10,900,000 | 10,900,000 | 10,900,000 | ||||||||
Swiss Franc [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | 5,000 | ||||||||||
Change in the value of transactional hedges following a 10% increase in the value of the EUR against all currencies | 5,000 | ||||||||||
Pound Sterling [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | 7,000 | 10,000 | |||||||||
Yen [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | 15,000 | 17,000 | |||||||||
Zloty [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | 5,000 | 6,000 | |||||||||
RUB [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | 6,000 | ||||||||||
US Dollar [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Change in the value of transactional hedges following a 10% increase in the value of a currency against EUR | 75,000 | 53,000 | |||||||||
Change in the value of derivatives following a 10% increase in the value of the EUR against all currencies | 208,000 | ||||||||||
Change in the value of derivatives following a 10% increase in the value of a currency against EUR | 79,000 | ||||||||||
Cash flow hedges [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | 40 | 100 | |||||||||
Change in value of forward elements of forward contracts and time value of options[Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Equity | (6,000) | (6,000) | (6,000) | ||||||||
Reserve of cash flow hedges [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Equity | (10,000) | (10,000) | 23,000 | € 10,000 | (10,000) | € 12,000 | |||||
North American headquarters will move from Andover to Cambridge [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Off balance sheet lease commitment | € 218,000 | ||||||||||
Level 1 of fair value hierarchy [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Financial assets, at fair value | 20,000 | 20,000 | 1,313,000 | 20,000 | |||||||
Level 1 of fair value hierarchy [member] | Signify Member | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Investments in equity instruments designated at fair value through other comprehensive income | 434,000 | 434,000 | 434,000 | ||||||||
Level 1 of fair value hierarchy [member] | Equity investments [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Other non-current financial assets | 42,000 | 42,000 | 42,000 | ||||||||
Financial assets, at fair value | 476,000 | 476,000 | 1,313,000 | 476,000 | |||||||
Level 2 and 3 of fair value hierarchy [member] | Equity investments [member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Financial assets measured at fair value through other comprehensive income | € 150,000 | ||||||||||
Royal Philips NV [Member] | |||||||||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |||||||||||
Commercial Paper Program | $ | $ 2,500 | ||||||||||
Undrawn borrowing facilities | € 1,000,000 | € 1,000,000 | € 1,000,000 | ||||||||
[1] | The accompanying notes are an integral part of these consolidated financial statements. For a number of reasons, principally the effects of translation differences and consolidation changes, certain items in the statements of cash flows do not correspond to the differences between the balance sheet amounts for the respective items | ||||||||||
[2] | Refer to IFRS 9 disclosure in Significant accounting policies note for the impact of IFRS 9 on 2018 opening balance. | ||||||||||
[3] | The majority of the balance reflects the remaining stake in Signify (formerly Philips Lighting), which relates to equity instruments. | ||||||||||
[4] | Amounts in this table are undiscounted | ||||||||||
[5] | 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 |
Details of treasury _ other f_4
Details of treasury / other financial risks - Contractual cash obligation (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | € 4,358 | ||
Finance lease obligations | [1],[3] | 357 | ||
Short-term debt | [1],[3] | 164 | ||
Operating leases obligations | [1],[3] | 756 | ||
Derivative liabilities | [1],[3] | 296 | ||
Interest on debt | [1],[3] | 1,632 | ||
Purchase obligations | [1],[3],[4] | 666 | ||
Trade and other current payables | 2,303 | [1],[3] | € 2,090 | |
Contractual cash obligations, total | [1],[3] | 10,532 | ||
Later than five years [member] | ||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 2,527 | ||
Finance lease obligations | [1],[3] | 52 | ||
Operating leases obligations | [1],[3] | 204 | ||
Interest on debt | [1],[3] | 1,117 | ||
Purchase obligations | [1],[3],[4] | 30 | ||
Contractual cash obligations, total | [1],[3] | 3,929 | ||
Later than one year and not later than three years [member] | ||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 194 | ||
Finance lease obligations | [1],[3] | 152 | ||
Operating leases obligations | [1],[3] | 227 | ||
Derivative liabilities | [1],[3] | 2 | ||
Interest on debt | [1],[3] | 207 | ||
Purchase obligations | [1],[3],[4] | 352 | ||
Contractual cash obligations, total | [1],[3] | 1,134 | ||
Later than three years and not later than five years [member] | ||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 501 | ||
Finance lease obligations | [1],[3] | 53 | ||
Operating leases obligations | [1],[3] | 148 | ||
Derivative liabilities | [1],[3] | 114 | ||
Interest on debt | [1],[3] | 200 | ||
Purchase obligations | [1],[3],[4] | 52 | ||
Contractual cash obligations, total | [1],[3] | 1,069 | ||
Not later than one year [member] | ||||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||||
Long-term debt including current portion of long-term debt and excluding finance lease obligations | [1],[2],[3] | 1,136 | ||
Finance lease obligations | [1],[3] | 100 | ||
Short-term debt | [1],[3] | 164 | ||
Operating leases obligations | [1],[3] | 176 | ||
Derivative liabilities | [1],[3] | 179 | ||
Interest on debt | [1],[3] | 108 | ||
Purchase obligations | [1],[3],[4] | 233 | ||
Trade and other current payables | [1],[3] | 2,303 | ||
Contractual cash obligations, total | [1],[3] | € 4,399 | ||
[1] | Amounts in this table are undiscounted | |||
[2] | Long-term debt includes short-term portion of long-term debt and excludes finance lease obligations | |||
[3] | This table excludes post-employment benefit plan contribution commitments and income tax liabilities in respect of tax risks because it is not possible to make a reasonably reliable estimate of the actual period of cash settlement | |||
[4] | Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not include open purchase orders or other commitments which do not specify all significant terms. |
Details of treasury _ other f_5
Details of treasury / other financial risks - Operating lease - minimum payments under sale-and-leaseback arrangements (Detail) € in Millions | Dec. 31, 2018EUR (€) |
Later than five years [member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Minimum lease payments payable under non-cancellable operating lease | € 106 |
Later than four years and not later than five years [member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Minimum lease payments payable under non-cancellable operating lease | 20 |
Later than one year and not later than two years [member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Minimum lease payments payable under non-cancellable operating lease | 26 |
Later than three years and not later than four years [member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Minimum lease payments payable under non-cancellable operating lease | 21 |
Later than two years and not later than three years [member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Minimum lease payments payable under non-cancellable operating lease | 23 |
Not later than one year [member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Minimum lease payments payable under non-cancellable operating lease | € 29 |
Details of treasury _ other f_6
Details of treasury / other financial risks - Estimated transaction exposure and related hedges (Detail) - Cash flow hedges [member] - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables cash flow [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | € (867) | |
Hedge of transaction exposure | 760 | |
Payables cash flow [Member] | Canadian Dollar [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | € 0 | |
Hedge of transaction exposure | 0 | |
Payables cash flow [Member] | Yuan Renminbi [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | (120) | |
Hedge of transaction exposure | 113 | |
Payables cash flow [Member] | Pound Sterling [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | (14) | |
Hedge of transaction exposure | 6 | |
Payables cash flow [Member] | Yen [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | (9) | |
Hedge of transaction exposure | 9 | |
Payables cash flow [Member] | Others [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | (156) | |
Hedge of transaction exposure | 109 | |
Payables cash flow [Member] | Russian Ruble [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | (1) | |
Hedge of transaction exposure | 1 | |
Payables cash flow [Member] | Swedish Krona [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | (1) | |
Hedge of transaction exposure | 1 | |
Payables cash flow [Member] | US Dollar [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | (659) | |
Hedge of transaction exposure | 571 | |
Receivables cash flow [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 3,395 | |
Hedge of transaction exposure | € (2,189) | |
Receivables cash flow [Member] | Australian Dollar [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 199 | |
Hedge of transaction exposure | (109) | |
Receivables cash flow [Member] | Canadian Dollar [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 263 | |
Hedge of transaction exposure | (137) | |
Receivables cash flow [Member] | Swiss Franc [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 107 | |
Hedge of transaction exposure | (56) | |
Receivables cash flow [Member] | Yuan Renminbi [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 276 | |
Hedge of transaction exposure | (220) | |
Receivables cash flow [Member] | Czech Koruna [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 38 | |
Hedge of transaction exposure | (19) | |
Receivables cash flow [Member] | Pound Sterling [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 222 | |
Hedge of transaction exposure | (102) | |
Receivables cash flow [Member] | Yen [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 683 | |
Hedge of transaction exposure | (361) | |
Receivables cash flow [Member] | Others [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 215 | |
Hedge of transaction exposure | (207) | |
Receivables cash flow [Member] | Zloty [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 113 | |
Hedge of transaction exposure | (63) | |
Receivables cash flow [Member] | Russian Ruble [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 97 | |
Hedge of transaction exposure | (87) | |
Receivables cash flow [Member] | Swedish Krona [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 46 | |
Hedge of transaction exposure | (23) | |
Receivables cash flow [Member] | US Dollar [Member] | ||
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | ||
Transaction exposure | 1,672 | |
Hedge of transaction exposure | € (1,178) |
Details of treasury _ other f_7
Details of treasury / other financial risks - Credit risk with number of counterparties (Detail) | Dec. 31, 2018 |
10-100 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 3 |
100-500 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 6 |
500 million and above [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
A- rated [Member] | 100-500 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
AA- rated [Member] | 10-100 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
AA- rated [Member] | 100-500 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
AA- rated [Member] | 500 million and above [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 1 |
A+ rated [Member] | 10-100 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 2 |
A+ rated [Member] | 100-500 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 2 |
A rated [Member] | 100-500 million [Member] | |
Details of treasury / other financial risks - Text Details (Detail) [Line Items] | |
Counterparties | 2 |
Subsequent events - Text Detail
Subsequent events - Text Details (Detail) - EUR (€) € in Millions, shares in Millions | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2021 | Jan. 29, 2019 | |
Subsequent events - Text Details (Detail) [Line Items] | |||||
Purchase of treasury shares | € (514) | € (318) | € (589) | ||
Claim filed by LGE | € 64.6 | ||||
Major ordinary share transactions [member] | |||||
Subsequent events - Text Details (Detail) [Line Items] | |||||
Purchase of treasury shares | € 1,500 | ||||
Shares acquired | 46 |