{ "documentInfo": { "documentType": "https://xbrl.org/2021/xbrl-json", "features": { "xbrl:canonicalValues": true }, "namespaces": { "ifrs-full": "https://xbrl.ifrs.org/taxonomy/2022-03-24/ifrs-full", "iso4217": "http://www.xbrl.org/2003/iso4217", "phg": "http://www.philips.com/20241231", "scheme": "http://standards.iso.org/iso/17442", "xbrl": "https://xbrl.org/2021", "xbrli": "http://www.xbrl.org/2003/instance" }, "linkTypes": { "ftTyp_fact-footnote": "http://www.xbrl.org/2003/arcrole/fact-footnote" }, "linkGroups": { "ftGrp_default": "http://www.xbrl.org/2003/role/link" }, "taxonomy": [ "http://www.philips.com/20241231/phg-2024-12-31.xsd" ] }, "facts": { "f-1": { "value": "17827000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-2": { "value": "18169000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-3": { "value": "18021000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-4": { "value": "10633000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-5": { "value": "10721000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-6": { "value": "10248000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-7": { "value": "7194000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-8": { "value": "7448000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-9": { "value": "7773000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-10": { "value": "4621000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-11": { "value": "4524000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-12": { "value": "4486000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-13": { "value": "671000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GeneralAndAdministrativeExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-14": { "value": "608000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GeneralAndAdministrativeExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-15": { "value": "582000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GeneralAndAdministrativeExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-16": { "value": "2091000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-17": { "value": "1890000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-18": { "value": "1747000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-19": { "value": "1357000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ImpairmentLossRecognisedInProfitOrLossGoodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-20": { "value": "8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ImpairmentLossRecognisedInProfitOrLossGoodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-21": { "value": "127000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-22": { "value": "112000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-23": { "value": "590000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-24": { "value": "109000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherExpenseByFunction", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-25": { "value": "645000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherExpenseByFunction", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-26": { "value": "1019000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherExpenseByFunction", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-27": { "value": "-1529000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-28": { "value": "-115000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-29": { "value": "529000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-30": { "value": "58000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinanceIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-31": { "value": "63000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinanceIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-32": { "value": "105000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinanceIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-33": { "value": "258000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinanceCosts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-34": { "value": "376000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinanceCosts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-35": { "value": "387000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinanceCosts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-36": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAccountedForUsingEquityMethod", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-37": { "value": "-98000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAccountedForUsingEquityMethod", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-38": { "value": "-124000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAccountedForUsingEquityMethod", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-39": { "value": "-1731000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-40": { "value": "-526000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-41": { "value": "123000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-42": { "value": "-113000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-43": { "value": "-73000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-44": { "value": "963000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-45": { "value": "-1618000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-46": { "value": "-454000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-47": { "value": "-840000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-48": { "value": "13000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-49": { "value": "-10000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-50": { "value": "142000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-51": { "value": "-1605000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-52": { "value": "-463000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-53": { "value": "-698000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-54": { "value": "-1608000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-55": { "value": "-466000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-56": { "value": "-702000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-57": { "value": "3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-58": { "value": "2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-59": { "value": "3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-60": { "value": "-1.70", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-61": { "value": "-0.48", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-62": { "value": "-0.90", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-63": { "value": "-1.69", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-64": { "value": "-0.49", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-65": { "value": "-0.75", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-66": { "value": "-1.70", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-67": { "value": "-0.48", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-68": { "value": "-0.90", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-69": { "value": "-1.69", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-70": { "value": "-0.49", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-71": { "value": "-0.75", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" }, "links": { "ftTyp_fact-footnote": { "ftGrp_default": [ "fn-1" ] } } }, "f-72": { "value": "-1605000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-73": { "value": "-463000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-74": { "value": "-698000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-75": { "value": "101000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-76": { "value": "-26000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-77": { "value": "-18000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-78": { "value": "20000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-79": { "value": "-3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-80": { "value": "-12000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-81": { "value": "-32000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-82": { "value": "-20000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-83": { "value": "-21000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-84": { "value": "-1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToInvestmentsInEquityInstrumentsOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-85": { "value": "-3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToInvestmentsInEquityInstrumentsOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-86": { "value": "-9000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToInvestmentsInEquityInstrumentsOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-87": { "value": "49000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-88": { "value": "-40000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-89": { "value": "-17000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-90": { "value": "748000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-91": { "value": "-579000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-92": { "value": "768000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-93": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToExchangeDifferencesOnTranslationOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-94": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToExchangeDifferencesOnTranslationOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-95": { "value": "8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToExchangeDifferencesOnTranslationOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-96": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-97": { "value": "26000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-98": { "value": "7000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-99": { "value": "-29000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnCashFlowHedgesBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-100": { "value": "29000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnCashFlowHedgesBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-101": { "value": "21000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnCashFlowHedgesBeforeTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-102": { "value": "10000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToCashFlowHedgesOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-103": { "value": "2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToCashFlowHedgesOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-104": { "value": "-3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToCashFlowHedgesOfOtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-105": { "value": "-63000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnCashFlowHedgesNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-106": { "value": "19000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnCashFlowHedgesNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-107": { "value": "29000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnCashFlowHedgesNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-108": { "value": "774000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-109": { "value": "-597000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-110": { "value": "748000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-111": { "value": "823000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-112": { "value": "-637000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-113": { "value": "731000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-114": { "value": "-782000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-115": { "value": "-1100000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-116": { "value": "33000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-117": { "value": "-786000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-118": { "value": "-1101000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-119": { "value": "27000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-120": { "value": "4000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-121": { "value": "1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-122": { "value": "6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-123": { "value": "2483000000.0", "decimals": -6, "dimensions": { "concept": "phg:PropertyPlantAndEquipmentIncludingRightofuseAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-124": { "value": "2452000000.0", "decimals": -6, "dimensions": { "concept": "phg:PropertyPlantAndEquipmentIncludingRightofuseAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-125": { "value": "9876000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Goodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-126": { "value": "10383000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Goodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-127": { "value": "3190000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsOtherThanGoodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-128": { "value": "2982000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsOtherThanGoodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-129": { "value": "193000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentReceivables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-130": { "value": "208000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentReceivables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-131": { "value": "381000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentsInAssociatesAccountedForUsingEquityMethod", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-132": { "value": "257000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentsInAssociatesAccountedForUsingEquityMethod", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-133": { "value": "619000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-134": { "value": "631000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-135": { "value": "3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentDerivativeFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-136": { "value": "8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentDerivativeFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-137": { "value": "2627000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-138": { "value": "1916000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-139": { "value": "93000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentNonfinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-140": { "value": "118000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentNonfinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-141": { "value": "19466000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-142": { "value": "18955000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-143": { "value": "3491000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-144": { "value": "3198000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-145": { "value": "3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-146": { "value": "2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-147": { "value": "500000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentPrepaymentsAndCurrentAccruedIncomeIncludingCurrentContractAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-148": { "value": "586000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentPrepaymentsAndCurrentAccruedIncomeIncludingCurrentContractAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-149": { "value": "45000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentDerivativeFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-150": { "value": "69000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentDerivativeFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-151": { "value": "220000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-152": { "value": "94000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-153": { "value": "3733000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentReceivables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-154": { "value": "3672000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentReceivables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-155": { "value": "79000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleOrAsHeldForDistributionToOwners", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-156": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleOrAsHeldForDistributionToOwners", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-157": { "value": "1869000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-158": { "value": "2401000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-159": { "value": "9940000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-160": { "value": "10022000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-161": { "value": "29406000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-162": { "value": "28976000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-163": { "value": "12028000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-164": { "value": "12006000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-165": { "value": "183000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IssuedCapital", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-166": { "value": "188000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IssuedCapital", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-167": { "value": "5827000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SharePremium", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-168": { "value": "6654000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SharePremium", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-169": { "value": "879000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherReserves", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-170": { "value": "1925000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherReserves", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-171": { "value": "5139000000.0", "decimals": -6, "dimensions": { "concept": "phg:EquityOther", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-172": { "value": "3239000000.0", "decimals": -6, "dimensions": { "concept": "phg:EquityOther", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-173": { "value": "33000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-174": { "value": "37000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-175": { "value": "12061000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-176": { "value": "12043000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-177": { "value": "7035000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LongtermBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-178": { "value": "7113000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LongtermBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-179": { "value": "3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentDerivativeFinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-180": { "value": "4000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentDerivativeFinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-181": { "value": "1035000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-182": { "value": "996000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-183": { "value": "71000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-184": { "value": "81000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-185": { "value": "469000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentContractLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-186": { "value": "431000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentContractLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-187": { "value": "390000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesNoncurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-188": { "value": "119000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesNoncurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-189": { "value": "54000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentNonfinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-190": { "value": "45000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentNonfinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-191": { "value": "9058000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-192": { "value": "8787000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-193": { "value": "654000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBorrowingsAndCurrentPortionOfNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-194": { "value": "526000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBorrowingsAndCurrentPortionOfNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-195": { "value": "40000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentDerivativeFinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-196": { "value": "59000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentDerivativeFinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-197": { "value": "83000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-198": { "value": "71000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-199": { "value": "1917000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-200": { "value": "1830000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-201": { "value": "1887000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AccrualsClassifiedAsCurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-202": { "value": "1630000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AccrualsClassifiedAsCurrent", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-203": { "value": "1809000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentContractLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-204": { "value": "1699000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentContractLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-205": { "value": "1463000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-206": { "value": "1977000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-207": { "value": "11000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentDividendPayables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-208": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentDividendPayables", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-209": { "value": "9000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-210": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-211": { "value": "414000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentNonfinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-212": { "value": "354000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentNonfinancialLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-213": { "value": "8287000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-214": { "value": "8146000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-215": { "value": "17345000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Liabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-216": { "value": "16933000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Liabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-217": { "value": "29406000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-218": { "value": "28976000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-219": { "value": "-1605000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-220": { "value": "-463000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-221": { "value": "-698000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-222": { "value": "13000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-223": { "value": "-10000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-224": { "value": "142000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-225": { "value": "1602000000.0", "decimals": -6, "dimensions": { "concept": "phg:DepreciationAmortizationAndImpairmentOfFixedAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-226": { "value": "1261000000.0", "decimals": -6, "dimensions": { "concept": "phg:DepreciationAmortizationAndImpairmentOfFixedAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-227": { "value": "1390000000.0", "decimals": -6, "dimensions": { "concept": "phg:DepreciationAmortizationAndImpairmentOfFixedAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-228": { "value": "1357000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForImpairmentLossRecognisedInProfitOrLossGoodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-229": { "value": "8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForImpairmentLossRecognisedInProfitOrLossGoodwill", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-230": { "value": "95000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForSharebasedPayments", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-231": { "value": "88000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForSharebasedPayments", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-232": { "value": "96000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForSharebasedPayments", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-233": { "value": "-115000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForLossesGainsOnDisposalOfNoncurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-234": { "value": "-71000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForLossesGainsOnDisposalOfNoncurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-235": { "value": "-19000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForLossesGainsOnDisposalOfNoncurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-236": { "value": "25000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForInterestIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-237": { "value": "46000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForInterestIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-238": { "value": "81000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForInterestIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-239": { "value": "226000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForInterestExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-240": { "value": "255000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForInterestExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-241": { "value": "270000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForInterestExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-242": { "value": "-112000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfAssociates", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-243": { "value": "-107000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfAssociates", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-244": { "value": "-126000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfAssociates", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-245": { "value": "-113000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncomeTaxExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-246": { "value": "-71000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncomeTaxExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-247": { "value": "964000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncomeTaxExpense", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-248": { "value": "862000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-249": { "value": "-913000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-250": { "value": "355000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-251": { "value": "-342000000.0", "decimals": -6, "dimensions": { "concept": "phg:DecreaseIncreaseInReceivablesAndOtherCurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-252": { "value": "298000000.0", "decimals": -6, "dimensions": { "concept": "phg:DecreaseIncreaseInReceivablesAndOtherCurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-253": { "value": "-1000000.0", "decimals": -6, "dimensions": { "concept": "phg:DecreaseIncreaseInReceivablesAndOtherCurrentAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-254": { "value": "-572000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-255": { "value": "257000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-256": { "value": "230000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-257": { "value": "52000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseInAccountsPayableAccruedAndOtherCurrentLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-258": { "value": "358000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseInAccountsPayableAccruedAndOtherCurrentLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-259": { "value": "-583000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseInAccountsPayableAccruedAndOtherCurrentLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-260": { "value": "1000000.0", "decimals": -6, "dimensions": { "concept": "phg:DecreaseIncreaseInNonCurrentReceivablesAndOtherAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-261": { "value": "-33000000.0", "decimals": -6, "dimensions": { "concept": "phg:DecreaseIncreaseInNonCurrentReceivablesAndOtherAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-262": { "value": "-5000000.0", "decimals": -6, "dimensions": { "concept": "phg:DecreaseIncreaseInNonCurrentReceivablesAndOtherAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-263": { "value": "-84000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInOtherLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-264": { "value": "-38000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInOtherLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-265": { "value": "-51000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInOtherLiabilities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-266": { "value": "-199000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForProvisions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-267": { "value": "422000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForProvisions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-268": { "value": "316000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForProvisions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-269": { "value": "-39000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-270": { "value": "129000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-271": { "value": "101000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-272": { "value": "15000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-273": { "value": "53000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-274": { "value": "83000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-275": { "value": "205000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-276": { "value": "250000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-277": { "value": "261000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-278": { "value": "12000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-279": { "value": "13000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-280": { "value": "8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-281": { "value": "333000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-282": { "value": "152000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-283": { "value": "173000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-284": { "value": "-173000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-285": { "value": "2136000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-286": { "value": "1569000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-287": { "value": "788000000.0", "decimals": -6, "dimensions": { "concept": "phg:NetCapitalExpenditures", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-288": { "value": "554000000.0", "decimals": -6, "dimensions": { "concept": "phg:NetCapitalExpenditures", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-289": { "value": "663000000.0", "decimals": -6, "dimensions": { "concept": "phg:NetCapitalExpenditures", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-290": { "value": "105000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-291": { "value": "96000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-292": { "value": "118000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-293": { "value": "257000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsForDevelopmentProjectExpenditure", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-294": { "value": "203000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsForDevelopmentProjectExpenditure", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-295": { "value": "241000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsForDevelopmentProjectExpenditure", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-296": { "value": "444000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-297": { "value": "345000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-298": { "value": "317000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-299": { "value": "18000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-300": { "value": "90000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-301": { "value": "13000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-302": { "value": "-72000000.0", "decimals": -6, "dimensions": { "concept": "phg:NetProceedsFromCashUsedForDerivativesAndCurrentFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-303": { "value": "-46000000.0", "decimals": -6, "dimensions": { "concept": "phg:NetProceedsFromCashUsedForDerivativesAndCurrentFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-304": { "value": "38000000.0", "decimals": -6, "dimensions": { "concept": "phg:NetProceedsFromCashUsedForDerivativesAndCurrentFinancialAssets", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-305": { "value": "116000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashPaymentsToAcquireEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-306": { "value": "92000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashPaymentsToAcquireEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-307": { "value": "123000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashPaymentsToAcquireEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-308": { "value": "78000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashReceiptsFromSalesOfEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-309": { "value": "48000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashReceiptsFromSalesOfEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-310": { "value": "57000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashReceiptsFromSalesOfEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-311": { "value": "712000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-312": { "value": "73000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-313": { "value": "8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-314": { "value": "124000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromLosingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-315": { "value": "80000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromLosingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-316": { "value": "126000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromLosingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-317": { "value": "-1487000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-318": { "value": "-636000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-319": { "value": "-573000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-320": { "value": "47000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInIncreaseDecreaseInCurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-321": { "value": "29000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInIncreaseDecreaseInCurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-322": { "value": "-30000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInIncreaseDecreaseInCurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-323": { "value": "1472000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-324": { "value": "754000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-325": { "value": "763000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-326": { "value": "2516000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-327": { "value": "544000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-328": { "value": "710000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromNoncurrentBorrowings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-329": { "value": "12000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-330": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-331": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-332": { "value": "187000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-333": { "value": "662000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-334": { "value": "411000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-335": { "value": "412000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-336": { "value": "2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-337": { "value": "1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-338": { "value": "6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-339": { "value": "3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-340": { "value": "2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToNoncontrollingInterests", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-341": { "value": "500000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-342": { "value": "-848000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-343": { "value": "-496000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivitiesContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-344": { "value": "-1160000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseInCashAndCashEquivalentsContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-345": { "value": "652000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseInCashAndCashEquivalentsContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-346": { "value": "500000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseInCashAndCashEquivalentsContinuingOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-347": { "value": "-12000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-348": { "value": "123000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-349": { "value": "-13000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-350": { "value": "-1172000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-351": { "value": "776000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-352": { "value": "487000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-353": { "value": "41000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-354": { "value": "-79000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-355": { "value": "45000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-356": { "value": "2303000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-357": { "value": "1172000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-358": { "value": "1869000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-359": { "value": "1172000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-360": { "value": "1869000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-361": { "value": "2401000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-362": { "value": "177000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-363": { "value": "4646000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-364": { "value": "-344000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-365": { "value": "-25000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-366": { "value": "1117000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-367": { "value": "9344000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-368": { "value": "-476000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-369": { "value": "14438000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-370": { "value": "36000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-371": { "value": "14475000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-372": { "value": "-32000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-373": { "value": "23000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-374": { "value": "749000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-375": { "value": "-1527000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-376": { "value": "-786000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-377": { "value": "4000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-378": { "value": "-782000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-379": { "value": "-3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-380": { "value": "-326000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-381": { "value": "741000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-382": { "value": "412000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-383": { "value": "6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-384": { "value": "418000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-385": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "phg:MinorityBuyOut", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-386": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "phg:MinorityBuyOut", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-387": { "value": "-1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-388": { "value": "1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-389": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-390": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-391": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-392": { "value": "24000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-393": { "value": "24000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-394": { "value": "24000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-395": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-396": { "value": "-43000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-397": { "value": "-28000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-398": { "value": "77000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-399": { "value": "7000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-400": { "value": "7000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-401": { "value": "76000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-402": { "value": "-140000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-403": { "value": "-64000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-404": { "value": "-64000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-405": { "value": "5000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-406": { "value": "-12000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-407": { "value": "-6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-408": { "value": "-6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-409": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-410": { "value": "-298000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-411": { "value": "299000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-412": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-413": { "value": "95000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-414": { "value": "95000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-415": { "value": "95000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-416": { "value": "-1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-417": { "value": "-1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-418": { "value": "-1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-419": { "value": "178000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-420": { "value": "5025000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-421": { "value": "-376000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-422": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-423": { "value": "1866000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-424": { "value": "6832000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-425": { "value": "-275000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-426": { "value": "13249000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-427": { "value": "34000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-428": { "value": "13283000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-429": { "value": "-17000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-430": { "value": "8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-431": { "value": "-604000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-432": { "value": "-488000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-433": { "value": "-1101000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-434": { "value": "1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-435": { "value": "-1100000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-436": { "value": "-8000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-437": { "value": "-741000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-438": { "value": "816000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-439": { "value": "68000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-440": { "value": "3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-441": { "value": "70000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-442": { "value": "4000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-443": { "value": "-4000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-444": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-445": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-446": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-447": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-448": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-449": { "value": "-29000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-450": { "value": "-24000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-451": { "value": "54000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-452": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-453": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-454": { "value": "465000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-455": { "value": "-608000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-456": { "value": "-143000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-457": { "value": "-143000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-458": { "value": "-3000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-459": { "value": "-563000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-460": { "value": "566000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-461": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-462": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-463": { "value": "88000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-464": { "value": "88000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-465": { "value": "88000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-466": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-467": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-468": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-469": { "value": "183000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-470": { "value": "5827000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-471": { "value": "-390000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-472": { "value": "6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-473": { "value": "1263000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-474": { "value": "5402000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-475": { "value": "-262000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-476": { "value": "12028000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-477": { "value": "33000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-478": { "value": "12061000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-479": { "value": "-11000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-480": { "value": "-5000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-481": { "value": "751000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-482": { "value": "-707000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-483": { "value": "27000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-484": { "value": "6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-485": { "value": "33000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-486": { "value": "-6000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-487": { "value": "-762000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-488": { "value": "799000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-489": { "value": "31000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-490": { "value": "2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-491": { "value": "32000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-492": { "value": "311000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-493": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-494": { "value": "-313000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-495": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-496": { "value": "-2000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransferBetweenRevaluationReserveAndRetainedEarnings", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-497": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-498": { "value": "60000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-499": { "value": "60000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-500": { "value": "60000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-501": { "value": "-36000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-502": { "value": "-18000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-503": { "value": "54000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-504": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-505": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SaleOrIssueOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-506": { "value": "251000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-507": { "value": "-310000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-508": { "value": "-59000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-509": { "value": "-59000000.0", "decimals": -6, "dimensions": { "concept": "phg:IncreaseDecreaseForwardContracts", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-510": { "value": "-1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-511": { "value": "-166000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-512": { "value": "167000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-513": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CancellationOfTreasuryShares", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-514": { "value": "96000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-515": { "value": "96000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-516": { "value": "96000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-517": { "value": "-5000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-518": { "value": "-5000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-519": { "value": "-5000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-520": { "value": "188000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-521": { "value": "6654000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-522": { "value": "-90000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember", "unit": "iso4217:EUR" } }, "f-523": { "value": "1000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-524": { "value": "2014000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-525": { "value": "3650000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:EUR" } }, "f-526": { "value": "-411000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-527": { "value": "12006000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-528": { "value": "37000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-529": { "value": "12043000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2025-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-539": { "value": "
1General information to the Consolidated financial statements
Reporting entity and its operations
Koninklijke Philips N.V. (\u2018Royal Philips\u2019), incorporated and domiciled in the Netherlands , is a public
limited liability company organized under Dutch Law. Philips is headquartered in Amsterdam, the
Netherlands and has its registered address at High Tech Campus 52, 5656 AG Eindhoven, the
Netherlands . The consolidated financial statements of Royal Philips as of December\u00a031, 2024
comprise Royal Philips and its subsidiaries (together referred to as the 'company\u2019 or \u2018Philips\u2019 or the
'Group\u2019). Philips is a leading health technology company primarily involved in diagnostic imaging,
image-guided therapy, patient monitoring and health informatics, as well as in consumer health
and home care.
Basis of preparation
The Consolidated financial statements are:
\u2022 prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
European Union (EU) and comply with the statutory provisions of Part 9, Book 2 of the Dutch
Civil Code. All standards and interpretations issued by the International Accounting Standards
Board (IASB) and the IFRS Interpretations Committee effective 2024 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
\u2022 authorized for issue by the Board of Management of Royal Philips on February 21, 2025
\u2022 prepared under the historical cost convention, unless otherwise indicated
\u2022 prepared on a going concern basis
\u2022 presented in euro, which is the presentation currency
\u2022 rounded to the nearest million euro unless stated otherwise
\u2022 subject to rounding, whereby amounts may not add up precisely to the totals provided", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-540": { "value": "
1General information to the Consolidated financial statements
Basis of consolidation
The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V.
and all subsidiaries that the company controls on a consolidated basis. Control exists when the
company is exposed or has rights to variable returns from its involvement with the investee and the
company has the ability to affect those returns through its power over the investee. Generally,
there is a presumption that a majority of voting rights results in control. To support this
presumption and in cases where Philips has less than a majority of the voting or similar rights of an
investee, Philips considers all relevant facts and circumstances in assessing whether it has power
over an investee, including the contractual arrangement(s) with the other vote holders of the
investee, rights arising from other contractual arrangements and the company\u2019s 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.
4Acquisitions and divestments
Accounting policies
Divestments
Upon loss of control, the company derecognizes the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of equity related to the subsidiary. Any surplus or
deficit arising from the loss of control is recognized in the Consolidated statements of income. If
the company retains any interest in the previous subsidiary, such interest is measured at fair value
at the date the control is lost. Subsequently it is accounted for as either an equity-accounted
investee (associate) or as a financial asset, depending on the level of influence retained. Further
information on loss of control can be found in Discontinued operations and assets classified as held
for sale .", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-538": { "value": "
1General information to the Consolidated financial statements
Basis of consolidation
The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V.
and all subsidiaries that the company controls on a consolidated basis. Control exists when the
company is exposed or has rights to variable returns from its involvement with the investee and the
company has the ability to affect those returns through its power over the investee. Generally,
there is a presumption that a majority of voting rights results in control. To support this
presumption and in cases where Philips has less than a majority of the voting or similar rights of an
investee, Philips considers all relevant facts and circumstances in assessing whether it has power
over an investee, including the contractual arrangement(s) with the other vote holders of the
investee, rights arising from other contractual arrangements and the company\u2019s 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.
4Acquisitions and divestments
Accounting policies
Divestments
Upon loss of control, the company derecognizes the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of equity related to the subsidiary. Any surplus or
deficit arising from the loss of control is recognized in the Consolidated statements of income. If
the company retains any interest in the previous subsidiary, such interest is measured at fair value
at the date the control is lost. Subsequently it is accounted for as either an equity-accounted
investee (associate) or as a financial asset, depending on the level of influence retained. Further
information on loss of control can be found in Discontinued operations and assets classified as held
for sale .
Divestments
During 2024 Philips completed four divestments for net cash consideration of EUR 118 million , of
which EUR 2\u00a0million is to be received in 2025. The result of these divestments amounted to a EUR 8
million gain, which is included in Other business income in the Consolidated statements of income.
The divestments were not material.
Divestments
During 2023 Philips completed six divestments for net cash consideration of EUR 80 million and a
gain of EUR 50 million, which is included in Other business income of the Consolidated statements
of income. The divestments were not material.
5Interests in entities
Accounting policies
Associates are all entities over which the company has significant influence, but not control or joint
control. Significant influence is presumed with a shareholding of between 20% and 50% of the
voting rights.
Investments in associates are accounted for using the equity method of accounting and are initially
recognized at cost. The carrying amount of an investment in an associate includes the carrying
amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to
the investment as a whole.
The company\u2019s share of the net income of these associates is included in Investments in associates,
net of income taxes, in the Consolidated statements of income, after adjustments to align the
accounting policies with those of the company. Dilution gains and losses arising from investments
in associates are recognized in the Consolidated statements of income as part of Investments in
associates, net of income taxes. Impairment losses and gains or losses on sale of investments are
recorded in the Consolidated statements of income, more specifically on the line item \u2019Investments
in associates, net of income taxes\u2019.
When the company\u2019s share of losses exceeds its interest in an associate, the carrying amount of
that interest is reduced to zero and recognition of further losses is discontinued except to the
extent that the company has an obligation or made payments on behalf of the associate.
The nature of the company\u2019s interests in its consolidated entities and associates, and the effects of
those interests on the company\u2019s financial position and financial performance are discussed below.
Group companies
Below is a list of subsidiaries as of December\u00a031, 2024, that individually exceed 5% of either the
consolidated group Sales, Income from operations or Income from continuing operations (before
any intra-group eliminations) of Group legal entities. All of the entities are fully consolidated in the
Group financial statements.
Philips Group
Interests in group companies in alphabetical order by country
December 31, 2024
Legal entity name
Principal country of business
Philips (China) Investment Company, Ltd.
China
Philips Medizin Systeme B\u00f6blingen GmbH
Germany\u00b9
Philips Consumer Lifestyle B.V.
Netherlands
Philips Medical Systems (Cleveland), Inc.
United States
Philips North America LLC
United States
Philips RS North America LLC
United States
1Application of Sec. 264 (3) and Sec. 264b HGB (German Commercial Code) for fully consolidated legal
entities: Philips GmbH, Hamburg; Philips Medical Systems DMC GmbH, Hamburg; Respironics Deutschland
GmbH & Co.KG, M\u00fcnchen; Philips Medizin Systeme Hofheim-Wallau GmbH, Hamburg; Philips Medizin
Systeme B\u00f6blingen GmbH, B\u00f6blingen; TomTec Imaging Systems GmbH, Unterschlei\u00dfheim; PIP
Verwaltungsgesellschaft mbH, Hamburg.\u00a0
Information related to non-controlling interests
As of December\u00a031, 2024, three consolidated subsidiaries are not wholly owned by Philips
(December\u00a031, 2023: four). In 2024, sales to third parties and Net income for these subsidiaries in
aggregate are EUR 467 million (December\u00a031, 2023: EUR 492 million) and EUR 10 million
(December\u00a031, 2023: EUR 27 million), respectively.
Investments in associates
Philips has investments in a number of associates. During 2024, Philips did not make any new
investments in associates.
In 2024 Philips recognized its share of net results from associates, reporting a loss of EUR 20 million
and an impairment of EUR 103 million. The most significant impairment was related to B-Soft Co.,
Ltd. (EUR 63 million), a Chinese IT provider for the medical and health sectors, largely due to
adverse economic conditions in China. The net results from associates and impairment losses were
recorded as part of Investments in associates, net of income taxes.
Cumulative translation adjustments related to investments in associates were EUR (10) million as of
December\u00a031, 2024 (2023: EUR (21) million).
Involvement with unconsolidated structured entities
Philips founded three Philips Medical Capital (PMC) entities, in the US, France and Germany, in
which Philips holds a minority interest. Philips Medical Capital, LLC in the US 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 US, PMC operates as a subsidiary of De Lage Landen Financial Services, Inc. The
same structure and treatment is applied to the PMC entities in the other countries, with other
majority shareholders. Operating agreements are in place for all PMC entities, whereby acceptance
of sales and financing transactions resides with the respective majority shareholder. After
acceptance of a transaction by PMC, Philips transfers control and does not retain any obligations
towards PMC or its customers, from the sales contracts.
As of December\u00a031, 2024, Philips\u2019 shareholding in Philips Medical Capital, LLC had a carrying value
of EUR 31 million (December\u00a031, 2023: EUR 27 million).
The company does not have any material exposures to losses from interests in unconsolidated
structured entities other than the invested amounts.
17Equity
Non-controlling interests
Non-controlling interests relate to minority stakes held by third parties in consolidated group
companies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-537": { "value": "
1General information to the Consolidated financial statements
Accounting estimates and judgments
The preparation of these financial statements requires management to make a number of
estimates and judgments that affect the application of accounting policies and the reported
amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets
and liabilities. Amounts recognized are based on factors that are by default associated with
uncertainty. Actual results may therefore differ from estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revision to estimates are recognized prospectively.
Where applicable, the estimates and judgments of specific financial statement items are described
in the respective note to the consolidated financial statements.
The areas involving a higher degree of judgment and complexity in applying accounting principles
and for which changes in the assumptions and estimates could result in significantly different
results than those recorded in the consolidated financial statements are the following:
\u2022 judgment applied in determining reportable segments involves evaluating the information
reviewed by the Chief Operating Decision-Maker (the Board of Management) to assess
performance and allocate resources (Information by segment and main country )
\u2022 assessment of control (below paragraph Basis of consolidation and Interests in entities )
\u2022 revenue recognition (Income from operations )
\u2022 for acquisitions, the identification and valuation of acquired assets and liabilities including
contingent considerations provisions (Acquisitions and divestments, Provisions)
\u2022 determination of deferred tax assets for losses carried forward and uncertain tax positions
(Income taxes )
\u2022 assumptions used for impairment testing (Goodwill , Intangible assets excluding goodwill)
\u2022 assessments of exposure to credit risk of financial instruments ( Other financial assets ,
Receivables, Debt, Fair value of financial assets and liabilities, Details of treasury and other
financial risks )
\u2022 assumptions used to determine the net realizable value of inventories (Inventories)
\u2022 actuarial assumptions of future events that are used in calculating post-employment benefit
expenses and liabilities (Post-employment benefits)
\u2022 estimates and assumptions regarding the timing and the amount of outflow of resources, as
well as estimating the likelihood of a potential outflow of resources and the ability to make a
reliable estimate of the obligation relating to provisions and contingent liabilities (Provisions,
Contingencies )
The company regularly updates its significant assumptions and estimates to support the reported
amounts of assets, liabilities, income and expenses.
Climate change
In preparing the consolidated financial statements, management has considered the impact of
climate change, specifically the financial impact of Philips meeting its internal and external climate-
related aims, the potential impact of climate- related risks, and the costs incurred to pro-actively
manage such risks. These considerations did not have a material impact on the financial reporting
judgments, estimates or assumptions. The financial impacts considered include specific climate
mitigation measures, such as the use of lower-carbon energy sources, the cost of developing more
sustainable product offerings, and expenses incurred to mitigate against the impact of extreme
weather conditions. To meet its long-term Science Based Targets and reduce its full value chain
emissions in line with a 1.5 \u00b0C global warming scenario, Philips has entered into a number of Power
Purchase Agreements. Philips uses 100% electricity from renewable sources, mainly through long-
term Power Purchase Agreements, thereby mitigating the impact of carbon taxes. The development
of more sustainable products are covered through our EcoDesign program and already included in
our R&D expenses. The physical risk related to climate change on our sites resulting from our Task
Force on Climate-Related Financial Disclosures assessment is currently considered limited.
3Discontinued operations and assets classified as held for sale
Accounting estimates and judgments
The determination of the fair value less costs of disposal involves the use of estimates and
assumptions that tend to be uncertain. Circumstances to which these adjustments may relate
include resolution of uncertainties that arise from the terms of the disposal transaction, such as the
resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise
from and are directly related to the operations of the component before its disposal, such as
environmental and assurance-type product warranty obligations retained by the company, and the
settlement of employee benefit plan obligations provided that the settlement is directly related to
the disposal transaction.
4Acquisitions and divestments
Accounting estimates and judgments
Intangible assets acquired in a business acquisition and the financial liability related to non-
controlling interest are measured at fair value at the date of the acquisition.
To determine the fair value of intangible assets at the acquisition date, estimates and assumptions
are required. The valuation of the identifiable intangible assets involves estimates of expected sales,
earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty
rate and growth rates.
Estimates are also applied when determining the fair value of legal cases and tax positions in the
acquired entity. The fair value is based on estimates of the likelihood, the expected timing and the
amount of the potential cash outflow. Provisions for legal cases and non-income tax positions are
recognized at fair value even if it is not probable that an outflow will be required to settle the
obligation. After initial recognition and until the liability is settled, cancelled or expired, the liability
is measured at the higher of the amount that would be recognized in accordance with IAS 37
'Provisions, contingent liabilities and contingent assets' and the initial liability amount. For income
tax positions, the company applies IAS 12 'Income Taxes', which requires recognition of provisions
only when the likelihood of cash outflow is considered probable.
6Income from operations
Accounting policies
Revenue recognition
The company recognizes revenue when it transfers control over a good or service to a customer, in
an amount that reflects the consideration (i.e., transaction price) to which the company expects to
be entitled in exchange for the good or service. The consideration expected by the company may
include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and
volume rebates. The company adjusts the consideration for the time value of money if the period
between the transfer of the promised goods or services to the customer and payment by the
customer exceeds six months.
Transfer of control varies depending on the individual terms of the contract of sale. For consumer-
type products in the Personal Health segment, control is transferred when the product is shipped
and delivered to the customer and title and risk have passed to the customer (depending on the
delivery conditions) and acceptance of the product has been obtained.
Revenues from transactions relating to distinct goods or services are accounted for separately based
on their relative stand-alone selling prices. The stand-alone selling price is the price that would be
charged for the goods or service in a separate transaction under similar conditions to similar
customers. The transaction price is determined (considering variable considerations) and allocated
to performance obligations based on their relative stand-alone selling prices. These transactions
mainly occur in the segments Diagnosis & Treatment and Connected Care and include
arrangements that require subsequent installation and training activities to make distinct goods
operable for the customer. As such, the related installation and training activities are part of
equipment sales rather than separate performance obligations. Revenue is recognized when the
performance obligation is satisfied, i.e., when the installation has been completed and the
equipment is ready to be used by the customer in the way contractually agreed.
Variable consideration is included in the transaction price to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognized will not occur once
associated uncertainties are resolved. Such assessment is performed on each reporting date to
check whether it is constrained. For products for which a right of return exists during a defined
period, revenue recognition is determined based on the historical pattern of actual returns, or in
cases where such information is not available, revenue recognition is postponed until the return
period has lapsed. Return policies are typically based on customary return arrangements in local
markets. A provision is recognized for assurance-type product warranty at the time of revenue
recognition and reflects the estimated costs of replacement and free-of-charge services that will be
incurred by the company with respect to the products sold. For certain products, the customer has
the option to purchase the warranty separately, which is considered a separate performance
obligation on top of the assurance-type product warranty. For such warranties which provide
distinct service, revenue recognition occurs on a straight-line basis over the extended warranty
contract period. Occasionally, the company may offer a full or partial refund of consideration
previously paid, for example as part of the resolution to warranty related matters. In such instances,
a provision is recognized for the amounts expected to be refunded to customers, and remeasured
at each reporting date to reflect changes in the estimated refunds, with a corresponding
adjustment to revenue.
In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred
for sales commissions that are considered incremental to the contracts are recognized immediately
in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15
Revenue from Contracts with Customers.
Accounting estimates and judgments
Sales-related accruals
The company has sales promotions-related agreements with distributors and retailers designed to
promote the sale of products. Among the programs are arrangements under which rebates and
discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or
for participating in specific marketing programs. Management estimates the sales-related accruals
associated with these arrangements based on a combination of historical patterns and future
expectations regarding which promotional targets are expected to be met by distributors and
retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right
to offset against the respective accounts receivable.
Accounting estimates and judgments
Impairment of owned and right-of-use assets
Judgments are required, not only to determine whether there is an indication that an asset may be
impaired, but also whether indications exist that impairment losses previously recognized may no
longer exist or may have decreased (impairment reversal). After indications of impairment have
been identified, estimates and assumptions are used in the determination of the recoverable
amount of a fixed asset. These involve estimates of expected future cash flows (based on future
growth rates and remaining useful life) and residual value assumptions, as well as discount rates to
calculate the present value of the future cash flows.
Owned assets
Estimates are required to determine the (remaining) useful lives of fixed assets. Useful lives are
determined based on an asset's age, the frequency of its use, repair and maintenance policy,
technology changes in production and expected restructuring. The company estimates the
expected residual value per asset item. The residual value is the higher of the asset's expected sales
price (based on recent market transactions of similar sold items) and its material scrap value.
Right-of-use assets
Judgment is required to determine the lease term. The assessment of whether the company is
reasonably certain to exercise extension options impacts the lease term, which could affect the
amount of lease liabilities and right-of-use assets recognized.
11Goodwill
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for goodwill impairment testing
contain various judgments and estimations as described in the \u2018key assumptions\u2019 section.
Goodwill impairment testing
During 2024 , there were no goodwill impairments recorded.
Goodwill allocated to the Businesses (groups of cash-generating units) as of December\u00a031, 2024, is
presented in the following table:
Philips Group
Goodwill by business in millions of EUR
2023
2024
Monitoring
3,964
4,194
Image-Guided Therapy
3,044
3,216
Precision Diagnosis
1,363
1,440
Sleep & Respiratory Care
687
694
Personal Health
483
509
Enterprise Informatics
336
331
Book value
9,876
10,383
The carrying amount of each group of CGUs is compared to the recoverable amount of the group
of CGUs. Unless otherwise noted, the recoverable amount for each group of CGUs is based on
value-in-use calculations. Cash flow projections were determined using Philips management's
internal forecasts that cover an initial forecast period from 2025 to 2027. Projections were
extrapolated using the growth rates disclosed in the following table for an extrapolation period of 4
years (2028-2031), after which a terminal value was calculated per 2032. For the terminal value
calculation, growth rates were capped at a historical long-term average growth rate. The company
uses scenarios in the business forecasting process and the most reasonable and supportable
assumptions that represent management\u2019s best estimate are used as the basis for the value-in-use
calculations.
Key assumptions
Key assumptions used in the value-in-use calculations were compound sales growth rates, EBITA*
in the terminal value and the rates used for discounting the projected cash flows.
The compound sales growth rate is the annualized steady nominal growth rate over the forecast
period calculated with reference to the latest full year of actual sales as the base for the growth.
The compound sales growth rate used to calculate the terminal value is only applied to the first
year after the extrapolation period, after which no further growth is assumed for the terminal value
calculation.
The compound sales growth rates and EBITA* used to estimate cash flows are based on past
performance, external market growth assumptions and industry long-term growth averages.
EBITA* for each group of CGUs is expected to increase over the projection period as a result of
volume growth and cost efficiencies. By their nature, these assumptions involve risk and uncertainty
because they relate to future events and circumstances and there are many factors that could cause
actual results and developments to differ materially from the plans, goals and expectations set forth
in these assumptions.
The rates used for discounting the projected cash flows in goodwill impairment testing is based on
a weighted cost of capital (WACC), which in turn is based on business-specific inputs along with
other inputs as mentioned below. The WACC is based on post-tax cost of equity and cost of debt,
and is further calculated based on market data and inputs to accurately capture changes to the
time value of money, such as the risk-free interest rate, the beta factor and country risk premium.
In order to properly reflect the different risk-profiles of different businesses, a WACC is determined
for each business. As such, the beta factor is determined based on a selection of peer companies,
which can differ per business. Different businesses have different geographical footprints, resulting
in business-specific inputs for variables like country risk. Philips performs the value-in-use
calculations using post-tax cash flows and discount rate, the implicit pre-tax rate discount rate is
derived from an iterative calculation for disclosure purposes.
The values assigned to the key assumptions used for the value-in-use calculations were as follows:
Philips Group
Key assumptions\u00a02024
Compound sales growth rate
Initial forecast
period
Extrapolation
period
Used to
calculate
terminal value
Pre-tax
discount rates
Monitoring
5.3%
4.7%
2.5%
9.1%
Image-Guided Therapy
6.3%
5.0%
2.5%
9.7%
Precision Diagnosis
2.4%
3.6%
2.5%
9.9%
Sleep & Respiratory Care
10.1%
7.3%
2.5%
10.3%
Personal Health
5.1%
4.2%
2.5%
9.9%
Enterprise Informatics
4.4%
5.4%
2.5%
8.9%
The assumptions used for the 2023 value-in-use calculations for cash-generating units to which a
significant amount of goodwill was allocated were as follows:
Philips Group
Key assumptions\u00a02023
compound sales growth rate
initial forecast
period
extrapolation
period
used to
calculate
terminal value
pre-tax discount
rates
Monitoring
8.2%
5.5%
2.5%
9.5%
Image-Guided Therapy
7.9%
5.2%
2.5%
10.7%
Precision Diagnosis
3.8%
3.4%
2.5%
10.4%
Sleep & Respiratory Care
9.5%
9.3%
2.5%
10.8%
Personal Health
5.0%
4.6%
2.5%
10.3%
Enterprise Informatics
5.3%
5.8%
2.5%
9.0%
Sensitivity to changes in assumptions
The results of the annual impairment tests of the groups of CGUs 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.
*The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Information
by segment and main country
12Intangible assets excluding goodwill
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for intangible assets excluding
goodwill contain various judgments and estimations. For intangible assets excluding goodwill,
estimates are required to determine the (remaining) useful lives.
13Other financial assets
Accounting policies
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
Accounting estimates and judgments
The determination of fair value is subject to estimates for investments that are not publicly traded.
Refer to Fair value of financial assets and liabilities .
Financial assets classified at amortized cost and at fair value through OCI are subject to impairment
assessment. The calculation of expected credit losses requires the company to apply significant
judgment and make estimates and assumptions that involve significant uncertainty at the time they
are made. Changes to these estimates and assumptions can result in significant changes to the
timing and amount of expected credit losses to be recognized.
15Inventories
Accounting policies
Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to
their present location and condition. The costs of conversion of inventories include direct labor and
fixed and variable production overheads, considering the stage of completion and the normal
capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of
inventories is determined using the first-in, first-out (FIFO) method. The write-down of inventories
to net realizable value is included in cost of sales.
Accounting estimates and judgments
Inventory is reduced for the estimated losses due to obsolescence. This reduction is determined for
groups of products based on sales in the recent past and/or expected future demand.
16Receivables
Accounting estimates
Receivables are subject to impairment assessment, which involves estimating expected credit losses.
Refer to Other financial assets for accounting policies on impairment of financial assets.
19Provisions
Accounting estimates and judgments
By their nature, the recognition of provisions requires estimates and assumptions regarding the
timing and the amount of outflow of resources. The main estimates include:
\u2022 Product warranty provisions \u2013 the provisions for assurance-type product warranty reflect the
estimated costs of replacement and free-of-charge services that will be incurred by the company
with respect to products sold and include costs to execute quality remediation and related field
actions (including the Respironics field action). These require management to make estimates
and assumptions about items such as quantities and the portion of products to be remediated
through replacement, repair or (partial) refund.
\u2022 Environmental provisions \u2013 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. The impact of climate change is also
considered when assessing whether Philips has a present legal or constructive obligation,
particularly in relation to fines, penalties and commitments to reduce greenhouse gas emissions.
\u2022 Legal provisions \u2013 provisions for legal claims and investigations reflect the best estimate of the
outflow of resources, supported by internal and external legal counsel, when it is probable that
such outflow of resources will be required to settle an obligation.
\u2022 Contingent consideration provisions \u2013 the provision for contingent consideration reflects the
fair value of the expected payment to former shareholders of an acquired company for the
exchange of control if specified future events occur or conditions are met, such as the
achievement of certain regulatory milestones or the achievement of certain commercial
milestones. The provision for contingent consideration can change significantly due to changes
in the estimated achievement of milestones and changes in discount rates. Changes in fair value
of the contingent consideration liability are reflected in other business income (expenses).
20Post-employment benefits
Accounting estimates and judgments
To make the actuarial calculations for the valuation of defined benefit obligations, assumptions are
needed for interest rates, healthcare cost increases, future pension increases, life expectancy and
employee turnover rates. The actuarial calculations are made by external actuaries based on inputs
from observable market data, such as corporate bond returns and yield curves to determine the
discount rates to apply, mortality tables to determine life expectancy and inflation rates to
determine future salary and pension growth assumptions.
Assumptions
The mortality tables used for the company\u2019s largest DB plans are:
Germany: Heubeck-Richttafeln 2018 Generational, assuming 93% of mortality rates for male
retirees between ages 60 and 85. US: PRI-2012 Generational with MP2021 improvement scale +
white collar adjustment.
The weighted averages of the assumptions used to calculate the DBO were as follows:
Philips Group
Assumptions used for defined benefit obligations\u00a0in %
as of December 31,
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Discount rate
3.7%
3.3%
5.0%
5.1%
4.9%
4.2%
4.3%
4.0%
Inflation rate
2.0%
2.0%
2.3%
2.3%
2.5%
2.2%
2.2%
2.1%
Salary increase
2.8%
2.8%
0.0%
0.0%
4.3%
4.4%
3.0%
3.1%
Sensitivity analysis
The following table illustrates the approximate impact on the DBO from movements in key
assumptions. The DBO was recalculated using a change in the assumptions of 1% which overall is
considered a reasonably possible change. The impact on the DBO because of changes in discount
rate is normally accompanied by offsetting movements in plan assets, especially when using
matching strategies.
The average duration in years of the DBO of the DB plans is 10 (Germany: 11, US: 8, and other
countries: 10) as of December\u00a031, 2024 (2023: 10).
Philips Group
Sensitivity of key assumptions in millions of EUR
2023
2024
Increase
Discount rate (1% movement)
(123)
(123)
Pension increase (1% movement)
60
60
Salary increase (1% movement)
12
14
Longevity\u00b9
32
34
Decrease
Discount rate (1% movement)
147
150
Pension increase (1% movement)
(52)
(52)
Salary increase (1% movement)
(11)
(12)
Longevity\u00b9
(22)
(24)
1The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on
the DBO of a further 10% decrease / increase in the assumed rates of mortality for the company\u2019s major
plans. A 10% decrease / increase in assumed mortality rates equals a change of life expectancy by 0.5\u00a0- 1
year.
26Share-based compensation
Accounting estimates and judgments
The use of a valuation model to determine market-based performance share fair value requires
estimates for the expected volatility of the Philips share price and correlation among input variables.
At each reporting date, Philips calculates the expected realization of the non-market-based
performance targets and revises the expected share-based compensation expense. The cumulative
effect is recorded in the consolidated statement of income with a corresponding adjustment in equity.
No expense is recognized for awards that do not ultimately vest because non-market performance
and/or service conditions have not been met.
28Fair value of financial assets and liabilities
Accounting estimates and judgments
Determining the fair value of financial instruments requires the use of estimates according to the
method applied for each type of financial asset of liability. The estimated fair value of financial
instruments has been determined by the company using available market information and
appropriate valuation methods. The estimates presented are not necessarily indicative of the
amounts that will ultimately be realized by the company upon maturity or disposal. The use of
different market assumptions and/or estimation methods may have a material effect on the
estimated fair value amounts.
Specific valuation techniques used to value financial instruments include:
Level 1
Instruments included in level 1 are composed 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 (OCI). 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\u2019s 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.
The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or
on the basis of discounted cash flow analysis using market rates plus Philips\u2019 spread for the
particular tenors of the borrowing arrangement. Accrued interest is not included within the
carrying amount or estimated fair value of debt.
Level 3
If one or more of the significant inputs are not based on observable market data, such as third-
party pricing information without adjustments, the instrument is included in level 3.
The fair value of contingent consideration is dependent on the terms of the respective acquisition
agreement that may require Philips to pay additional consideration to former shareholders if
specified future events occur or conditions are met, such as the achievement of certain regulatory
milestones or the achievement of certain commercial milestones. The fair value of the contingent
consideration provision is generally determined using a probability-weighted and a risk-adjusted
approach to estimate the achievement of future regulatory and commercial milestones,
respectively. The discount rates used in the risk adjusted approach reflect the inherent risk related
to achieving the commercial milestones. Both regulatory and commercial milestones are discounted
for the time value of money at risk-free rates. The fair value measurement is based on
management\u2019s estimates and assumptions and hence classified as Level 3 in the fair value
hierarchy.
29Details of treasury and other financial risks
Accounting estimates and judgments
Financial assets are subject to impairment assessment, which involves estimating expected credit
losses. Refer to Other financial assets for accounting policies on impairment of financial assets.
Credit risk
Credit risk represents the loss that would be recognized at the reporting date, if counterparties
failed completely to perform their payment obligations as contracted. Credit risk is present within
Philips trade receivables and contract assets. To have better insights into the credit exposures,
Philips performs ongoing evaluations of the financial and non-financial condition of its customers
and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is
determined not to be sufficient to grant the credit limit required, there are a number of mitigation
tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-
payments and pledges on assets.
Philips invests available cash and cash equivalents with various financial institutions and is exposed
to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-
performance by financial institutions with respect to financial derivative instruments. Philips actively
manages concentration risk and on a daily basis measures the potential loss under certain stress
scenarios, should a financial institution default. These worst-case scenario losses are monitored and
limited by the company.
The company does not enter into any financial derivative instruments to protect against default by
financial institutions. However, where possible the company requires all financial institutions with
which it deals in derivative transactions to complete legally enforceable netting agreements under
an International Swap Dealers Association master agreement or otherwise prior to trading, and
whenever possible, to have a strong credit rating. Philips also regularly monitors the development
of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial
transactions are concluded with financial institutions with strong credit ratings or with governments
or government-backed institutions.
The following table shows the number of financial institutions with credit rating A- and above with
which Philips has cash at hand and short-term deposits above EUR 10 million as of December\u00a031,
2024.
Philips Group
Credit risk with number of counterparties for deposits above EUR 10 million
10-100 million
100-500 million
500 million and
above
AAA rated bank counterparties
2
AA- rated bank counterparties
1
A+ rated bank counterparties
1
4
A rated bank counterparties
2
2
A- rated bank counterparties
2
2
Total
6
10
For an overview of the overall maximum credit exposure related to debt instruments, derivatives
and loans and receivables, refer to Fair value of financial assets and liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-535": { "value": "
1General information to the Consolidated financial statements
Changes in presentation from the prior year
Accounting policies have been applied consistently for all periods presented in these consolidated
financial statements. Certain prior-year amounts have been reclassified to conform to the current
year presentation due to immaterial organizational changes.
Per share calculations have been adjusted retrospectively for all periods presented to reflect the
issuance of shares for the share dividend in respect of 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-534": { "value": "
1General information to the Consolidated financial statements
Material accounting policies
The material accounting policies as generally applied throughout the financial statements are
described below. Material accounting policies relating to specific financial statement items are
described in the respective notes to the financial statements.
Foreign currency transactions
The financial statements of all group entities are measured using the currency of the primary
economic environment in which the entity operates (functional currency). The euro (EUR) is the
functional currency of the company and the presentation currency of the consolidated financial
statements. Foreign currency transactions are converted into the functional currency using the
exchange rates prevailing at transaction date or the valuation date in cases where items are
remeasured. Gains and losses resulting from the settlement of foreign currency transactions and
those resulting from the conversion of foreign currency denominated monetary assets and liabilities
at period-end exchange rates are recognized in the Consolidated statements of income, except for
qualifying cash flow hedges, qualifying net investment hedges and equity investments measured at
fair value through OCI which are recognized in other comprehensive income.
All foreign exchange differences are presented as part of Cost of sales, apart from tax items and
financial income and expense, which are recognized in the same line item as they relate to in the
Consolidated statements of income.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency using the exchange rate at the date the fair value
was determined. Non-monetary items in a foreign currency that are measured based on historical
cost are translated using the exchange rate at the transaction date.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising
on acquisition, are translated to euros at the exchange rates prevailing at the reporting date. The
income and expenses of foreign operations are translated to euros at the exchange rates prevailing
at the dates of the transactions.
Foreign currency differences arising upon translation of foreign operations into euros are
recognized in Other comprehensive income and presented as part of Currency translation
differences in Equity. However, if the operation is not a wholly-owned subsidiary, the proportionate
share of the translation difference is allocated to Non-controlling interests.
When a foreign operation is disposed of such that control, significant influence or joint control is
lost, the cumulative amount in the Currency translation differences related to the foreign operation
is reclassified to the Consolidated statements of income as part of the gain or loss on disposal.
When the company disposes of only part of its interest in a subsidiary that includes a foreign
operation while retaining control, the respective proportion of the cumulative amount is
reattributed to Non-controlling interests. When the company disposes of only part of its investment
in an associate or joint venture that includes a foreign operation while retaining significant
influence or joint control, the relevant proportion of the cumulative amount is reclassified to the
Consolidated statements of income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-533": { "value": "
1General information to the Consolidated financial statements
Basis of consolidation
The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V.
and all subsidiaries that the company controls on a consolidated basis. Control exists when the
company is exposed or has rights to variable returns from its involvement with the investee and the
company has the ability to affect those returns through its power over the investee. Generally,
there is a presumption that a majority of voting rights results in control. To support this
presumption and in cases where Philips has less than a majority of the voting or similar rights of an
investee, Philips considers all relevant facts and circumstances in assessing whether it has power
over an investee, including the contractual arrangement(s) with the other vote holders of the
investee, rights arising from other contractual arrangements and the company\u2019s 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.
4Acquisitions and divestments
Accounting policies
Divestments
Upon loss of control, the company derecognizes the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of equity related to the subsidiary. Any surplus or
deficit arising from the loss of control is recognized in the Consolidated statements of income. If
the company retains any interest in the previous subsidiary, such interest is measured at fair value
at the date the control is lost. Subsequently it is accounted for as either an equity-accounted
investee (associate) or as a financial asset, depending on the level of influence retained. Further
information on loss of control can be found in Discontinued operations and assets classified as held
for sale .
Divestments
During 2024 Philips completed four divestments for net cash consideration of EUR 118 million , of
which EUR 2\u00a0million is to be received in 2025. The result of these divestments amounted to a EUR 8
million gain, which is included in Other business income in the Consolidated statements of income.
The divestments were not material.
Divestments
During 2023 Philips completed six divestments for net cash consideration of EUR 80 million and a
gain of EUR 50 million, which is included in Other business income of the Consolidated statements
of income. The divestments were not material.
5Interests in entities
Group companies
Below is a list of subsidiaries as of December\u00a031, 2024, that individually exceed 5% of either the
consolidated group Sales, Income from operations or Income from continuing operations (before
any intra-group eliminations) of Group legal entities. All of the entities are fully consolidated in the
Group financial statements.
Philips Group
Interests in group companies in alphabetical order by country
December 31, 2024
Legal entity name
Principal country of business
Philips (China) Investment Company, Ltd.
China
Philips Medizin Systeme B\u00f6blingen GmbH
Germany\u00b9
Philips Consumer Lifestyle B.V.
Netherlands
Philips Medical Systems (Cleveland), Inc.
United States
Philips North America LLC
United States
Philips RS North America LLC
United States
1Application of Sec. 264 (3) and Sec. 264b HGB (German Commercial Code) for fully consolidated legal
entities: Philips GmbH, Hamburg; Philips Medical Systems DMC GmbH, Hamburg; Respironics Deutschland
GmbH & Co.KG, M\u00fcnchen; Philips Medizin Systeme Hofheim-Wallau GmbH, Hamburg; Philips Medizin
Systeme B\u00f6blingen GmbH, B\u00f6blingen; TomTec Imaging Systems GmbH, Unterschlei\u00dfheim; PIP
Verwaltungsgesellschaft mbH, Hamburg.\u00a0
Information related to non-controlling interests
As of December\u00a031, 2024, three consolidated subsidiaries are not wholly owned by Philips
(December\u00a031, 2023: four). In 2024, sales to third parties and Net income for these subsidiaries in
aggregate are EUR 467 million (December\u00a031, 2023: EUR 492 million) and EUR 10 million
(December\u00a031, 2023: EUR 27 million), respectively.
17Equity
Non-controlling interests
Non-controlling interests relate to minority stakes held by third parties in consolidated group
companies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-532": { "value": "
1General information to the Consolidated financial statements
Material accounting policies
The material accounting policies as generally applied throughout the financial statements are
described below. Material accounting policies relating to specific financial statement items are
described in the respective notes to the financial statements.
Basis of consolidation
The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V.
and all subsidiaries that the company controls on a consolidated basis. Control exists when the
company is exposed or has rights to variable returns from its involvement with the investee and the
company has the ability to affect those returns through its power over the investee. Generally,
there is a presumption that a majority of voting rights results in control. To support this
presumption and in cases where Philips has less than a majority of the voting or similar rights of an
investee, Philips considers all relevant facts and circumstances in assessing whether it has power
over an investee, including the contractual arrangement(s) with the other vote holders of the
investee, rights arising from other contractual arrangements and the company\u2019s voting rights and
potential voting rights. Subsidiaries are fully consolidated from the date that control commences
until the date that control ceases. All intercompany balances and transactions have been eliminated
in the Consolidated financial statements. Unrealized losses are eliminated in the same way as
unrealized gains, but only to the extent that there is no evidence of impairment.
Foreign currency transactions
The financial statements of all group entities are measured using the currency of the primary
economic environment in which the entity operates (functional currency). The euro (EUR) is the
functional currency of the company and the presentation currency of the consolidated financial
statements. Foreign currency transactions are converted into the functional currency using the
exchange rates prevailing at transaction date or the valuation date in cases where items are
remeasured. Gains and losses resulting from the settlement of foreign currency transactions and
those resulting from the conversion of foreign currency denominated monetary assets and liabilities
at period-end exchange rates are recognized in the Consolidated statements of income, except for
qualifying cash flow hedges, qualifying net investment hedges and equity investments measured at
fair value through OCI which are recognized in other comprehensive income.
All foreign exchange differences are presented as part of Cost of sales, apart from tax items and
financial income and expense, which are recognized in the same line item as they relate to in the
Consolidated statements of income.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency using the exchange rate at the date the fair value
was determined. Non-monetary items in a foreign currency that are measured based on historical
cost are translated using the exchange rate at the transaction date.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising
on acquisition, are translated to euros at the exchange rates prevailing at the reporting date. The
income and expenses of foreign operations are translated to euros at the exchange rates prevailing
at the dates of the transactions.
Foreign currency differences arising upon translation of foreign operations into euros are
recognized in Other comprehensive income and presented as part of Currency translation
differences in Equity. However, if the operation is not a wholly-owned subsidiary, the proportionate
share of the translation difference is allocated to Non-controlling interests.
When a foreign operation is disposed of such that control, significant influence or joint control is
lost, the cumulative amount in the Currency translation differences related to the foreign operation
is reclassified to the Consolidated statements of income as part of the gain or loss on disposal.
When the company disposes of only part of its interest in a subsidiary that includes a foreign
operation while retaining control, the respective proportion of the cumulative amount is
reattributed to Non-controlling interests. When the company disposes of only part of its investment
in an associate or joint venture that includes a foreign operation while retaining significant
influence or joint control, the relevant proportion of the cumulative amount is reclassified to the
Consolidated statements of income.
2Information by segment and main country
Accounting policies
Segment accounting policies are the same as the accounting policies applied by the company.
Operating segments are components of the company\u2019s business activities about which separate
financial information is available that is evaluated regularly by the Chief Operating Decision-Maker
(the Board of Management of the company). The Board of Management decides how to allocate
resources and assesses performance. Reportable segments comprise the operating segments
Diagnosis & Treatment, Connected Care and Personal Health. Besides these reportable segments,
segment Other contains Innovation & Strategy, IP Royalties, Central costs, and other small items.
3Discontinued operations and assets classified as held for sale
Accounting policies
Assets classified as held-for-sale
Non-current assets (or disposal groups) are classified as held-for-sale if their carrying amounts are
expected to be recovered through a sale transaction rather than through continuing use. Non-
current assets (or disposal groups) classified as held-for-sale are measured at the lower of their
carrying amount or the fair value less costs of disposal. Depreciation or amortization of an asset
ceases when it is classified as held-for-sale. When non-current assets (or disposal groups) are
classified as held-for-sale, comparative balances prior to such date are not represented in the
Consolidated balance sheets.
Discontinued operations
A discontinued operation is a component of the company that has either been disposed of or is
classified as held-for-sale and represents a separate major line of business or geographical area of
operations or is a part of a single coordinated plan to dispose of a separate major line of business
or geographical area of operations. Any gain or loss from disposal, together with the results of
these operations until the date of disposal, are reported separately as discontinued operations in
the Consolidated statements of income.
The financial information of discontinued operations is excluded from the respective captions in the
Consolidated financial statements and related notes for all periods presented. Comparatives are re-
presented for presentation of discontinued operations in the Consolidated statements of income
and Consolidated statements of cash flows.
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
Divestments
Upon loss of control, the company derecognizes the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of equity related to the subsidiary. Any surplus or
deficit arising from the loss of control is recognized in the Consolidated statements of income. If
the company retains any interest in the previous subsidiary, such interest is measured at fair value
at the date the control is lost. Subsequently it is accounted for as either an equity-accounted
investee (associate) or as a financial asset, depending on the level of influence retained. Further
information on loss of control can be found in Discontinued operations and assets classified as held
for sale .
5Interests in entities
Accounting policies
Associates are all entities over which the company has significant influence, but not control or joint
control. Significant influence is presumed with a shareholding of between 20% and 50% of the
voting rights.
Investments in associates are accounted for using the equity method of accounting and are initially
recognized at cost. The carrying amount of an investment in an associate includes the carrying
amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to
the investment as a whole.
The company\u2019s share of the net income of these associates is included in Investments in associates,
net of income taxes, in the Consolidated statements of income, after adjustments to align the
accounting policies with those of the company. Dilution gains and losses arising from investments
in associates are recognized in the Consolidated statements of income as part of Investments in
associates, net of income taxes. Impairment losses and gains or losses on sale of investments are
recorded in the Consolidated statements of income, more specifically on the line item \u2019Investments
in associates, net of income taxes\u2019.
When the company\u2019s share of losses exceeds its interest in an associate, the carrying amount of
that interest is reduced to zero and recognition of further losses is discontinued except to the
extent that the company has an obligation or made payments on behalf of the associate.
6Income from operations
Accounting policies
Revenue recognition
The company recognizes revenue when it transfers control over a good or service to a customer, in
an amount that reflects the consideration (i.e., transaction price) to which the company expects to
be entitled in exchange for the good or service. The consideration expected by the company may
include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and
volume rebates. The company adjusts the consideration for the time value of money if the period
between the transfer of the promised goods or services to the customer and payment by the
customer exceeds six months.
Transfer of control varies depending on the individual terms of the contract of sale. For consumer-
type products in the Personal Health segment, control is transferred when the product is shipped
and delivered to the customer and title and risk have passed to the customer (depending on the
delivery conditions) and acceptance of the product has been obtained.
Revenues from transactions relating to distinct goods or services are accounted for separately based
on their relative stand-alone selling prices. The stand-alone selling price is the price that would be
charged for the goods or service in a separate transaction under similar conditions to similar
customers. The transaction price is determined (considering variable considerations) and allocated
to performance obligations based on their relative stand-alone selling prices. These transactions
mainly occur in the segments Diagnosis & Treatment and Connected Care and include
arrangements that require subsequent installation and training activities to make distinct goods
operable for the customer. As such, the related installation and training activities are part of
equipment sales rather than separate performance obligations. Revenue is recognized when the
performance obligation is satisfied, i.e., when the installation has been completed and the
equipment is ready to be used by the customer in the way contractually agreed.
Variable consideration is included in the transaction price to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognized will not occur once
associated uncertainties are resolved. Such assessment is performed on each reporting date to
check whether it is constrained. For products for which a right of return exists during a defined
period, revenue recognition is determined based on the historical pattern of actual returns, or in
cases where such information is not available, revenue recognition is postponed until the return
period has lapsed. Return policies are typically based on customary return arrangements in local
markets. A provision is recognized for assurance-type product warranty at the time of revenue
recognition and reflects the estimated costs of replacement and free-of-charge services that will be
incurred by the company with respect to the products sold. For certain products, the customer has
the option to purchase the warranty separately, which is considered a separate performance
obligation on top of the assurance-type product warranty. For such warranties which provide
distinct service, revenue recognition occurs on a straight-line basis over the extended warranty
contract period. Occasionally, the company may offer a full or partial refund of consideration
previously paid, for example as part of the resolution to warranty related matters. In such instances,
a provision is recognized for the amounts expected to be refunded to customers, and remeasured
at each reporting date to reflect changes in the estimated refunds, with a corresponding
adjustment to revenue.
In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred
for sales commissions that are considered incremental to the contracts are recognized immediately
in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15
Revenue from Contracts with Customers.
Sale of goods
Revenues are recognized at a point in time when control of the goods passes to the buyer, based
on the allocation of the transaction price to the performance obligation.
Revenue from services
Revenues are recognized over time as the company transfers control of the services to the
customer, which is demonstrated by the customer simultaneously receiving and consuming the
benefits provided by the company. The amount of revenues is measured by reference to the
progress made toward complete satisfaction of the performance obligation, which in general is
evenly over time. Service revenue related to repair and maintenance activities for goods sold is
recognized ratably over the service period or as services are rendered.
Income from royalties
Royalty income from brand license arrangements and from intellectual property rights, such as
technology licenses or patents, is recognized on an accrual basis in accordance with the substance
of the relevant agreement.
Shipping and handling
Expenses incurred for shipping and handling are mainly recorded as cost of sales. When shipping
and handling are part of a project and billed to the customer, then the related expenses are
recorded as cost of sales. Shipping and handling related to sales to third parties are partly recorded
as selling expenses. When shipping and handling billed to customers are considered a distinct and
separate performance obligation, the fees are recognized as revenue and costs included in cost of
sales.
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.
Government grants
Grants from governments are recognized at their fair value when there is a reasonable assurance
that the grant will be received and the company will comply with the conditions. Grants related to
costs are deferred in the consolidated balance sheet and recognized in the consolidated statement
of income as a reduction of the related costs that they are intended to compensate. Grants related
to assets are deducted from the cost of the asset and presented net in the consolidated balance
sheets.
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
8Income taxes
Accounting policies
Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the
Consolidated statements of income except to the extent that it relates to items recognized directly
within equity or in other comprehensive income. Current tax is the expected taxes payable on the
taxable income for the year, using tax rates enacted or substantively enacted at the reporting date,
and any adjustment to tax payable in respect of previous years.
In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the
effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities
or, alternatively, a provision is made for the amount that is expected to be settled, where this can
be reasonably estimated. This assessment relies on estimates and assumptions and may involve a
series of judgments about future events. New information may become available that causes the
company to change its judgment regarding the adequacy of existing tax assets and liabilities. Such
changes to tax assets and liabilities will impact the income tax expense in the period during which
such a determination is made.
Deferred tax assets and liabilities are recognized, using the consolidated balance sheet 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: (a) the initial recognition of goodwill; or (b) the initial recognition
of an asset or liability in a transaction which: (i) is not a business combination, (ii) at the time of
transaction, affects neither accounting profit nor taxable profit (tax loss), (iii) at the time of the
transaction, does not give rise to equal amounts of taxable and deductible differences; or (c)
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 \u2018discontinued operations\u2019 are sufficiently separable from continuing
operations.
Consistent with the IAS 12 amendment regarding Pillar Two taxation as issued by the IASB and
adopted by the EU, Philips does not recognize and disclose deferred taxes arising from tax laws that
implement Pillar Two model rules published by the Organization for Economic Co-operation and
Development.
9Earnings per share
Accounting policies
The company presents basic and diluted earnings per share (EPS) data for its common shares. Basic
EPS is calculated by dividing the Net income (loss) attributable to shareholders by the weighted
average number of common shares outstanding (after deduction of treasury shares) during the
period. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders
and the weighted average number of common shares outstanding (after deduction of treasury
shares) during the period, for the effects of all dilutive potential common shares, which comprise
performance shares, restricted shares and share options granted under share-based compensation
plans as well as forward contracts to repurchase shares.
10Property, plant and equipment
Accounting policies
Owned assets
The cost of property, plant and equipment comprise all directly attributable costs (including the cost
of material and direct labor).
Depreciation is generally calculated using the straight-line method over the useful life of the asset.
Land and assets under construction are not depreciated. When assets under construction are ready
for their intended use, they are transferred to the relevant asset category and depreciation starts.
All other property, plant and equipment items are depreciated over their estimated useful lives to
their estimated residual values.
The estimated useful lives of property, plant and equipment are as follows:
Philips Group
Useful lives of property, plant and equipment
\u00a0
\u00a0
Buildings
from\u00a05 to 50\u00a0years
Machinery and installations
from 3\u00a0to 20 years
Other equipment
from 1 to 10 years
Property, plant and equipment are reviewed for impairment whenever events or changes in
circumstances indicate that the book value of the assets concerned may not be recoverable. An
impairment loss is recognized for the amount by which the asset's book value exceeds their
recoverable amount. Impairments are reversed if and to the extent that the impairment no longer
exists. The recoverable amount is defined as the higher of the asset\u2019s fair value less costs of disposal
and its value in use.
Gains and losses on the sale of property, plant and equipment are included in other business
income. Costs related to repair and maintenance activities are expensed in the period in which they
are incurred unless they extend the asset's original lifetime or capacity.
Right-of-use assets
The company leases various items of real estate, vehicles and other equipment. The company
determines whether an arrangement constitutes or contains a lease based on the substance of the
arrangement at the lease inception. The arrangement constitutes or contains a lease if fulfillment is
dependent on the use of a specific asset and the arrangement conveys a right to use the asset,
even if that asset is not explicitly specified in the arrangement.
Company as a lessee
The company recognizes right-of-use assets and lease liabilities for leases with a term of more than
12 months if the underlying asset is not of low value. Payments for short-term and low-value leases
are expensed over the lease term. Extension options are included in the lease term if their exercise
is reasonably certain. Right-of-use assets are measured at cost less accumulated depreciation and
impairment losses, adjusted for any remeasurements. Right-of-use assets are depreciated using the
straight-line method over the shorter of the lease term and the useful life of the underlying assets.
Company as a lessor
When the company acts as a lessor, it determines at lease inception whether a lease is a finance
lease or an operating lease. Leases in which the company does not transfer substantially all the risks
and rewards incidental to ownership of an asset are classified as operating leases. The company
recognizes lease payments received under operating leases as income on a straight-line basis over
the lease term in the Consolidated statement of income.
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.
12Intangible assets excluding goodwill
Accounting policies
Acquired finite-lived intangible assets are amortized using the straight-line method over their
estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized
at cost, with the exception of intangible assets acquired as part of a business combination, which
are capitalized at their acquisition date fair value.
The company expenses all research costs as incurred. Expenditure on development activities,
whereby research findings are applied to a plan or design for the production of new or substantially
improved products and processes, is capitalized as an intangible asset if the product or process is
technically and commercially feasible, the company has sufficient resources and the intention to
complete development and can measure the attributable expenditure reliably.
The capitalized development expenditure comprises of all directly attributable costs (including the
cost of materials and direct labor). Other development expenditures and expenditures on research
activities are recognized in the Consolidated statements of income. Capitalized development
expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of
capitalized development expenditure is charged to the Consolidated statements of income on a
straight-line basis over the estimated useful lives of the intangible assets.
Philips Group
Expected useful lives of intangible assets excluding goodwill in years
Brand names
2-20
Customer relationships
2-25
Technology
3-20
Other
1-10
Software
1-10
Product development
3-10
The weighted average expected remaining life of brand names, customer relationships, technology
and other intangible assets is 8.5 years as of December\u00a031, 2024 (2023: 9.3 years).
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
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.
13Other financial assets
Accounting policies
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset\u2019s
contractual cash flow characteristics and the company\u2019s business model for managing them.
The company initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
\u2022 financial assets at amortized cost (debt instruments)
\u2022 financial assets at fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments)
\u2022 financial assets desi gnated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
\u2022 financial assets at fair value through profit or loss (debt instruments and equity instruments)
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
15Inventories
Accounting policies
Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to
their present location and condition. The costs of conversion of inventories include direct labor and
fixed and variable production overheads, considering the stage of completion and the normal
capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of
inventories is determined using the first-in, first-out (FIFO) method. The write-down of inventories
to net realizable value is included in cost of sales.
16Receivables
Accounting policies
Receivables are initially measured at fair value and are subsequently measured at amortized cost if
held within a business model with the objective to collect the contractual cash flows or at fair value
through OCI if held within a business model with the objective of both holding to collect
contractual cash flows and selling. Receivables are measured less any impairment losses.
Receivables are derecognized when the company has transferred substantially all risks and rewards,
which includes transactions in which the company enters into factoring transactions, or if the
company does not retain control over the receivables.
17Equity
Accounting policies
Common shares are classified as equity. Incremental costs directly attributable to the issuance of
shares are recognized as a deduction from equity. Where the company repurchases the company\u2019s
equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental transaction costs (net of income taxes), is deducted from shareholders\u2019 equity until
such treasury shares are cancelled or reissued.
Where such treasury shares are subsequently reissued, any consideration received, net of any
directly attributable incremental transaction costs and the related income tax effects, is included in
shareholders\u2019 equity.
Call options on own shares are treated as equity instruments.
Dividends are recognized as a liability in the period in which they are declared and approved by
shareholders. The income tax consequences of dividends are recognized when a liability to pay the
dividend is recognized.
18Debt
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.
Lease liabilities
Lease liabilities are measured at the present value of the lease payments due over the lease term,
generally discounted using the incremental borrowing rate. Lease liabilities are subsequently
measured at amortized cost using the effective interest method. Lease liabilities are remeasured in
case of modifications or reassessments of the lease.
19Provisions
Accounting policies
A provision is a liability of uncertain timing or amount. Provisions are recognized if, as a result of a
past event, the company has a present legal or constructive obligation, it is probable that an
outflow of economic benefits will be required to settle the obligation and the amount can be
estimated reliably. Provisions are measured at the present value of the expenditures expected to be
required to settle the obligation using a pre-tax discount rate that reflects current market
assessments of the time value of money. The increase in the provision due to passage of time
(accretion) is recognized as interest expense.
Restructuring-related provisions
Provisions for severance and termination benefits are recognized for those costs only when the
company has a detailed formal plan for the restructuring and has raised a valid expectation with
those affected that it will carry out the restructuring by starting to implement that plan or
announcing its main features to those affected by it. Before a provision is established, the company
recognizes any impairment loss on the assets associated with the restructuring.
20Post-employment benefits
Accounting policies
Defined contribution plans
A defined contribution plan is a post-employment benefit plan for which the company pays fixed
contributions into a separate entity and will have no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution pension plans are recognized as an
employee benefit expense in the Consolidated statements of income in the periods during which
services are rendered by employees.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan that is not a defined contribution plan.
Defined benefit plans define an amount of pension benefit that an employee will receive after
retirement. That pension benefit typically depends on several factors such as years of service, age
and salary.
The net pension asset or liability recognized in the Consolidated balance sheets in respect of
defined benefit plans is the fair value of plan assets less the present value of the projected defined
benefit obligation at the balance sheet 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\u2019s major plans, a full discount rate curve of high-quality corporate bonds is used to
determine the defined benefit obligation, where available. The curves are based on the Mercer
Yield Curve methodology, which uses data of corporate bonds rated AA or equivalent. For the
other plans the Mercer Yield Curve/Mercer Methodology has also been used taking into account
the cash flows as much as possible in case there is a deep market in corporate bonds. For plans in
countries without a deep corporate bond market, the discount rate is based on government bonds
and the plan\u2019s maturity.
Pension costs with respect to defined benefit plans primarily represent the increase of the actuarial
present value of the obligation for post-employment benefits based on employee service during the
year and the interest on the net recognized asset or liability with respect to employee service in
previous years.
Remeasurements of the net defined benefit asset or liability comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The
company recognizes all remeasurements in Other comprehensive income.
Past service costs arising from the introduction of a change to the benefit payable under a plan or a
significant reduction of the number of employees covered by a plan (curtailment) are recognized in
full in the Consolidated statements of income.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided. The company recognizes a liability and an expense for bonuses
and incentives based on a formula that takes into consideration the profit attributable to the
company\u2019s shareholders after certain adjustments.
The company\u2019s net obligation with respect to other long-term employee benefits is the amount of
future benefit that employees have earned in return for their service in the current and prior
periods, such as jubilee entitlements. That benefit is discounted to determine its present value.
Remeasurements are recognized in the Consolidated statements of income in the period in which
they arise.
Further information on other long-term employee benefits can be found in Provisions in the Other
provisions section.
21Accrued liabilities
Accounting policies
Accrued liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
The company recognizes contract liabilities if a payment is received or a payment is due (whichever
is earlier) from a customer before the company transfers the related goods or services. Contract
liabilities are recognized as revenue when the company performs under the contract (i.e., transfers
control of the related goods or services to the customer).
23Cash flow statement supplementary information
Accounting policies
Cash and cash equivalents
Cash and cash equivalents include all cash balances, certain money market funds and short-term
highly liquid investments with an original maturity of three months or less that are readily
convertible into known amounts of cash. Bank overdrafts are included in borrowings in current
liabilities.
Cash flow statements
The cash flow statement is prepared using the indirect method. Cash flows related to interest and
tax are included in operating activities. Assets and liabilities acquired as part of a business
combination are included in investing activities (net of cash acquired). Dividends paid to
shareholders are included in financing activities. Dividends received are included in operating
activities.
Cash flows arising from transactions in a foreign currency are translated into the company\u2019s
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.
24Contingencies
Accounting policies
Contingent liabilities
A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized
in the balance sheet because they are dependent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the company or because the risk of
loss is estimated to be possible but not probable or because the amount cannot be measured
reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain
information is not disclosed for legal proceedings for which the company concludes that disclosure
can be expected to seriously prejudice the outcome of the matter.
Contingent assets
Contingent assets are disclosed if the inflow of economic benefits is probable, but not virtually
certain. If the inflow of economic benefits becomes virtually certain, the asset would no longer be
contingent and its recognition appropriate.
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.
26Share-based compensation
Accounting policies
Philips share-based compensation is an equity-settled plan made of restricted and performance
shares. The restricted shares are subject to a three -year service condition and the performance
shares include both market and non-market-based performance conditions, in addition to a three -
year service condition. These shares are awarded to the Executive Committee and senior
management.
The grant date fair value of market-based performance shares is determined through a Monte
Carlo valuation model. The grant date fair value of non-market-based performance shares and
restricted shares is determined as the share price at the grant date as participants receive notional
dividends throughout the vesting period. The costs of share-based compensation plans are revised
for expected performance (non-market-based performance shares) and forfeiture and are spread
evenly over the service period.
Share-based compensation is recognized over the service period as personnel expense in the
consolidated statement of income, with a corresponding increase to equity.
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
Offsetting and master netting agreements
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when,
and only when, the company currently has a legally enforceable right to set-off the amounts and
the group intends either to settle them on a net basis or to realize the asset and settle the liability
simultaneously.
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-531": { "value": "
1General information to the Consolidated financial statements
Accounting estimates and judgments
The preparation of these financial statements requires management to make a number of
estimates and judgments that affect the application of accounting policies and the reported
amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets
and liabilities. Amounts recognized are based on factors that are by default associated with
uncertainty. Actual results may therefore differ from estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revision to estimates are recognized prospectively.
Where applicable, the estimates and judgments of specific financial statement items are described
in the respective note to the consolidated financial statements.
The areas involving a higher degree of judgment and complexity in applying accounting principles
and for which changes in the assumptions and estimates could result in significantly different
results than those recorded in the consolidated financial statements are the following:
\u2022 judgment applied in determining reportable segments involves evaluating the information
reviewed by the Chief Operating Decision-Maker (the Board of Management) to assess
performance and allocate resources (Information by segment and main country )
\u2022 assessment of control (below paragraph Basis of consolidation and Interests in entities )
\u2022 revenue recognition (Income from operations )
\u2022 for acquisitions, the identification and valuation of acquired assets and liabilities including
contingent considerations provisions (Acquisitions and divestments, Provisions)
\u2022 determination of deferred tax assets for losses carried forward and uncertain tax positions
(Income taxes )
\u2022 assumptions used for impairment testing (Goodwill , Intangible assets excluding goodwill)
\u2022 assessments of exposure to credit risk of financial instruments ( Other financial assets ,
Receivables, Debt, Fair value of financial assets and liabilities, Details of treasury and other
financial risks )
\u2022 assumptions used to determine the net realizable value of inventories (Inventories)
\u2022 actuarial assumptions of future events that are used in calculating post-employment benefit
expenses and liabilities (Post-employment benefits)
\u2022 estimates and assumptions regarding the timing and the amount of outflow of resources, as
well as estimating the likelihood of a potential outflow of resources and the ability to make a
reliable estimate of the obligation relating to provisions and contingent liabilities (Provisions,
Contingencies )
The company regularly updates its significant assumptions and estimates to support the reported
amounts of assets, liabilities, income and expenses.
Climate change
In preparing the consolidated financial statements, management has considered the impact of
climate change, specifically the financial impact of Philips meeting its internal and external climate-
related aims, the potential impact of climate- related risks, and the costs incurred to pro-actively
manage such risks. These considerations did not have a material impact on the financial reporting
judgments, estimates or assumptions. The financial impacts considered include specific climate
mitigation measures, such as the use of lower-carbon energy sources, the cost of developing more
sustainable product offerings, and expenses incurred to mitigate against the impact of extreme
weather conditions. To meet its long-term Science Based Targets and reduce its full value chain
emissions in line with a 1.5 \u00b0C global warming scenario, Philips has entered into a number of Power
Purchase Agreements. Philips uses 100% electricity from renewable sources, mainly through long-
term Power Purchase Agreements, thereby mitigating the impact of carbon taxes. The development
of more sustainable products are covered through our EcoDesign program and already included in
our R&D expenses. The physical risk related to climate change on our sites resulting from our Task
Force on Climate-Related Financial Disclosures assessment is currently considered limited.
Basis of consolidation
The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V.
and all subsidiaries that the company controls on a consolidated basis. Control exists when the
company is exposed or has rights to variable returns from its involvement with the investee and the
company has the ability to affect those returns through its power over the investee. Generally,
there is a presumption that a majority of voting rights results in control. To support this
presumption and in cases where Philips has less than a majority of the voting or similar rights of an
investee, Philips considers all relevant facts and circumstances in assessing whether it has power
over an investee, including the contractual arrangement(s) with the other vote holders of the
investee, rights arising from other contractual arrangements and the company\u2019s 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.
2Information by segment and main country
Accounting estimates and judgments
Determining reportable segments requires significant judgment and involves evaluating the
information which is reviewed by the Chief Operating Decision-Maker (the Board of Management)
to assess performance and allocate resources, in accordance with IFRS 8 'Operating Segments'.
3Discontinued operations and assets classified as held for sale
Accounting estimates and judgments
The determination of the fair value less costs of disposal involves the use of estimates and
assumptions that tend to be uncertain. Circumstances to which these adjustments may relate
include resolution of uncertainties that arise from the terms of the disposal transaction, such as the
resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise
from and are directly related to the operations of the component before its disposal, such as
environmental and assurance-type product warranty obligations retained by the company, and the
settlement of employee benefit plan obligations provided that the settlement is directly related to
the disposal transaction.
4Acquisitions and divestments
Accounting estimates and judgments
Intangible assets acquired in a business acquisition and the financial liability related to non-
controlling interest are measured at fair value at the date of the acquisition.
To determine the fair value of intangible assets at the acquisition date, estimates and assumptions
are required. The valuation of the identifiable intangible assets involves estimates of expected sales,
earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty
rate and growth rates.
Estimates are also applied when determining the fair value of legal cases and tax positions in the
acquired entity. The fair value is based on estimates of the likelihood, the expected timing and the
amount of the potential cash outflow. Provisions for legal cases and non-income tax positions are
recognized at fair value even if it is not probable that an outflow will be required to settle the
obligation. After initial recognition and until the liability is settled, cancelled or expired, the liability
is measured at the higher of the amount that would be recognized in accordance with IAS 37
'Provisions, contingent liabilities and contingent assets' and the initial liability amount. For income
tax positions, the company applies IAS 12 'Income Taxes', which requires recognition of provisions
only when the likelihood of cash outflow is considered probable.
6Income from operations
Accounting policies
Revenue recognition
The company recognizes revenue when it transfers control over a good or service to a customer, in
an amount that reflects the consideration (i.e., transaction price) to which the company expects to
be entitled in exchange for the good or service. The consideration expected by the company may
include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and
volume rebates. The company adjusts the consideration for the time value of money if the period
between the transfer of the promised goods or services to the customer and payment by the
customer exceeds six months.
Transfer of control varies depending on the individual terms of the contract of sale. For consumer-
type products in the Personal Health segment, control is transferred when the product is shipped
and delivered to the customer and title and risk have passed to the customer (depending on the
delivery conditions) and acceptance of the product has been obtained.
Revenues from transactions relating to distinct goods or services are accounted for separately based
on their relative stand-alone selling prices. The stand-alone selling price is the price that would be
charged for the goods or service in a separate transaction under similar conditions to similar
customers. The transaction price is determined (considering variable considerations) and allocated
to performance obligations based on their relative stand-alone selling prices. These transactions
mainly occur in the segments Diagnosis & Treatment and Connected Care and include
arrangements that require subsequent installation and training activities to make distinct goods
operable for the customer. As such, the related installation and training activities are part of
equipment sales rather than separate performance obligations. Revenue is recognized when the
performance obligation is satisfied, i.e., when the installation has been completed and the
equipment is ready to be used by the customer in the way contractually agreed.
Variable consideration is included in the transaction price to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognized will not occur once
associated uncertainties are resolved. Such assessment is performed on each reporting date to
check whether it is constrained. For products for which a right of return exists during a defined
period, revenue recognition is determined based on the historical pattern of actual returns, or in
cases where such information is not available, revenue recognition is postponed until the return
period has lapsed. Return policies are typically based on customary return arrangements in local
markets. A provision is recognized for assurance-type product warranty at the time of revenue
recognition and reflects the estimated costs of replacement and free-of-charge services that will be
incurred by the company with respect to the products sold. For certain products, the customer has
the option to purchase the warranty separately, which is considered a separate performance
obligation on top of the assurance-type product warranty. For such warranties which provide
distinct service, revenue recognition occurs on a straight-line basis over the extended warranty
contract period. Occasionally, the company may offer a full or partial refund of consideration
previously paid, for example as part of the resolution to warranty related matters. In such instances,
a provision is recognized for the amounts expected to be refunded to customers, and remeasured
at each reporting date to reflect changes in the estimated refunds, with a corresponding
adjustment to revenue.
In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred
for sales commissions that are considered incremental to the contracts are recognized immediately
in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15
Revenue from Contracts with Customers.
Accounting estimates and judgments
Sales-related accruals
The company has sales promotions-related agreements with distributors and retailers designed to
promote the sale of products. Among the programs are arrangements under which rebates and
discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or
for participating in specific marketing programs. Management estimates the sales-related accruals
associated with these arrangements based on a combination of historical patterns and future
expectations regarding which promotional targets are expected to be met by distributors and
retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right
to offset against the respective accounts receivable.
8Income taxes
Accounting estimates and judgments
Deferred tax recoverability
Deferred tax assets are recognized to the extent that it is probable that there will be future taxable
profits against which these can be utilized. Significant judgment is involved in determining whether
such profits are probable. Management determines this on the basis of expected taxable profits
arising from the reversal of recognized deferred tax liabilities, on appropriate tax planning
opportunities to support business goals and on the basis of forecasts.
Uncertain tax positions
Uncertain tax positions are recognized as liabilities if and to the extent it is probable that additional
tax will be due and the amount can be reliably measured. Significant judgment is involved in
determining these positions.
Philips is exposed to tax risks and uncertainty over tax treatments. For particular tax treatments that
are not expected to be accepted by tax authorities, Philips either recognizes a liability or reflects the
uncertainty in the recognition and measurement of its current and deferred tax assets and tax
attributes. For the measurement of the uncertainty, Philips uses the most likely amount or the
expected value of the tax treatment. The expected liabilities resulting from the uncertain tax
treatments are included in non-current tax liabilities (2024: EUR 116 million; 2023: EUR 390 million,
and this decrease mainly relates to releases and settlements arising out of the tax audit settlements
of prior years, in combination with higher tax losses or similar tax carryforwards that can be used if
uncertain tax treatments were settled for the presumed amount at balance sheet date). The
positions include, among others, the following:
Transfer pricing risks
Philips has issued transfer pricing directives, which are in accordance with international guidelines
such as those of the Organization of Economic Co-operation and Development. In order to reduce
the transfer pricing uncertainties, monitoring procedures are carried out by Group Tax to safeguard
the correct implementation of the transfer pricing directives. However, tax disputes can arise due to
inconsistent transfer pricing regimes and different views on 'at arm's length' pricing.
Tax risks on general and specific service agreements and licensing agreements
Due to the centralization of certain activities (such as research and development, IT and group
Functions), costs are also centralized. As a consequence, these costs and/or revenues must be
allocated to the beneficiaries, i.e., the various Philips entities. For that purpose, service contracts
such as intra-group service agreements and licensing agreements are signed with a large number of
group entities. Tax authorities review these intra-group service and licensing agreements, and may
reject the implemented intra-group charges. Furthermore, buy in/out situations in the case of
(de)mergers could affect the cost allocation resulting from the intra-group 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.
10Property, plant and equipment
Accounting estimates and judgments
Impairment of owned and right-of-use assets
Judgments are required, not only to determine whether there is an indication that an asset may be
impaired, but also whether indications exist that impairment losses previously recognized may no
longer exist or may have decreased (impairment reversal). After indications of impairment have
been identified, estimates and assumptions are used in the determination of the recoverable
amount of a fixed asset. These involve estimates of expected future cash flows (based on future
growth rates and remaining useful life) and residual value assumptions, as well as discount rates to
calculate the present value of the future cash flows.
Owned assets
Estimates are required to determine the (remaining) useful lives of fixed assets. Useful lives are
determined based on an asset's age, the frequency of its use, repair and maintenance policy,
technology changes in production and expected restructuring. The company estimates the
expected residual value per asset item. The residual value is the higher of the asset's expected sales
price (based on recent market transactions of similar sold items) and its material scrap value.
Right-of-use assets
Judgment is required to determine the lease term. The assessment of whether the company is
reasonably certain to exercise extension options impacts the lease term, which could affect the
amount of lease liabilities and right-of-use assets recognized.
11Goodwill
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for goodwill impairment testing
contain various judgments and estimations as described in the \u2018key assumptions\u2019 section.
Goodwill impairment testing
During 2024 , there were no goodwill impairments recorded.
Goodwill allocated to the Businesses (groups of cash-generating units) as of December\u00a031, 2024, is
presented in the following table:
Philips Group
Goodwill by business in millions of EUR
2023
2024
Monitoring
3,964
4,194
Image-Guided Therapy
3,044
3,216
Precision Diagnosis
1,363
1,440
Sleep & Respiratory Care
687
694
Personal Health
483
509
Enterprise Informatics
336
331
Book value
9,876
10,383
The carrying amount of each group of CGUs is compared to the recoverable amount of the group
of CGUs. Unless otherwise noted, the recoverable amount for each group of CGUs is based on
value-in-use calculations. Cash flow projections were determined using Philips management's
internal forecasts that cover an initial forecast period from 2025 to 2027. Projections were
extrapolated using the growth rates disclosed in the following table for an extrapolation period of 4
years (2028-2031), after which a terminal value was calculated per 2032. For the terminal value
calculation, growth rates were capped at a historical long-term average growth rate. The company
uses scenarios in the business forecasting process and the most reasonable and supportable
assumptions that represent management\u2019s best estimate are used as the basis for the value-in-use
calculations.
Key assumptions
Key assumptions used in the value-in-use calculations were compound sales growth rates, EBITA*
in the terminal value and the rates used for discounting the projected cash flows.
The compound sales growth rate is the annualized steady nominal growth rate over the forecast
period calculated with reference to the latest full year of actual sales as the base for the growth.
The compound sales growth rate used to calculate the terminal value is only applied to the first
year after the extrapolation period, after which no further growth is assumed for the terminal value
calculation.
The compound sales growth rates and EBITA* used to estimate cash flows are based on past
performance, external market growth assumptions and industry long-term growth averages.
EBITA* for each group of CGUs is expected to increase over the projection period as a result of
volume growth and cost efficiencies. By their nature, these assumptions involve risk and uncertainty
because they relate to future events and circumstances and there are many factors that could cause
actual results and developments to differ materially from the plans, goals and expectations set forth
in these assumptions.
The rates used for discounting the projected cash flows in goodwill impairment testing is based on
a weighted cost of capital (WACC), which in turn is based on business-specific inputs along with
other inputs as mentioned below. The WACC is based on post-tax cost of equity and cost of debt,
and is further calculated based on market data and inputs to accurately capture changes to the
time value of money, such as the risk-free interest rate, the beta factor and country risk premium.
In order to properly reflect the different risk-profiles of different businesses, a WACC is determined
for each business. As such, the beta factor is determined based on a selection of peer companies,
which can differ per business. Different businesses have different geographical footprints, resulting
in business-specific inputs for variables like country risk. Philips performs the value-in-use
calculations using post-tax cash flows and discount rate, the implicit pre-tax rate discount rate is
derived from an iterative calculation for disclosure purposes.
The values assigned to the key assumptions used for the value-in-use calculations were as follows:
Philips Group
Key assumptions\u00a02024
Compound sales growth rate
Initial forecast
period
Extrapolation
period
Used to
calculate
terminal value
Pre-tax
discount rates
Monitoring
5.3%
4.7%
2.5%
9.1%
Image-Guided Therapy
6.3%
5.0%
2.5%
9.7%
Precision Diagnosis
2.4%
3.6%
2.5%
9.9%
Sleep & Respiratory Care
10.1%
7.3%
2.5%
10.3%
Personal Health
5.1%
4.2%
2.5%
9.9%
Enterprise Informatics
4.4%
5.4%
2.5%
8.9%
The assumptions used for the 2023 value-in-use calculations for cash-generating units to which a
significant amount of goodwill was allocated were as follows:
Philips Group
Key assumptions\u00a02023
compound sales growth rate
initial forecast
period
extrapolation
period
used to
calculate
terminal value
pre-tax discount
rates
Monitoring
8.2%
5.5%
2.5%
9.5%
Image-Guided Therapy
7.9%
5.2%
2.5%
10.7%
Precision Diagnosis
3.8%
3.4%
2.5%
10.4%
Sleep & Respiratory Care
9.5%
9.3%
2.5%
10.8%
Personal Health
5.0%
4.6%
2.5%
10.3%
Enterprise Informatics
5.3%
5.8%
2.5%
9.0%
Sensitivity to changes in assumptions
The results of the annual impairment tests of the groups of CGUs 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.
*The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Information
by segment and main country
12Intangible assets excluding goodwill
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for intangible assets excluding
goodwill contain various judgments and estimations. For intangible assets excluding goodwill,
estimates are required to determine the (remaining) useful lives.
13Other financial assets
Accounting policies
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
Accounting estimates and judgments
The determination of fair value is subject to estimates for investments that are not publicly traded.
Refer to Fair value of financial assets and liabilities .
Financial assets classified at amortized cost and at fair value through OCI are subject to impairment
assessment. The calculation of expected credit losses requires the company to apply significant
judgment and make estimates and assumptions that involve significant uncertainty at the time they
are made. Changes to these estimates and assumptions can result in significant changes to the
timing and amount of expected credit losses to be recognized.
15Inventories
Accounting policies
Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to
their present location and condition. The costs of conversion of inventories include direct labor and
fixed and variable production overheads, considering the stage of completion and the normal
capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of
inventories is determined using the first-in, first-out (FIFO) method. The write-down of inventories
to net realizable value is included in cost of sales.
Accounting estimates and judgments
Inventory is reduced for the estimated losses due to obsolescence. This reduction is determined for
groups of products based on sales in the recent past and/or expected future demand.
16Receivables
Accounting estimates
Receivables are subject to impairment assessment, which involves estimating expected credit losses.
Refer to Other financial assets for accounting policies on impairment of financial assets.
19Provisions
Accounting estimates and judgments
By their nature, the recognition of provisions requires estimates and assumptions regarding the
timing and the amount of outflow of resources. The main estimates include:
\u2022 Product warranty provisions \u2013 the provisions for assurance-type product warranty reflect the
estimated costs of replacement and free-of-charge services that will be incurred by the company
with respect to products sold and include costs to execute quality remediation and related field
actions (including the Respironics field action). These require management to make estimates
and assumptions about items such as quantities and the portion of products to be remediated
through replacement, repair or (partial) refund.
\u2022 Environmental provisions \u2013 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. The impact of climate change is also
considered when assessing whether Philips has a present legal or constructive obligation,
particularly in relation to fines, penalties and commitments to reduce greenhouse gas emissions.
\u2022 Legal provisions \u2013 provisions for legal claims and investigations reflect the best estimate of the
outflow of resources, supported by internal and external legal counsel, when it is probable that
such outflow of resources will be required to settle an obligation.
\u2022 Contingent consideration provisions \u2013 the provision for contingent consideration reflects the
fair value of the expected payment to former shareholders of an acquired company for the
exchange of control if specified future events occur or conditions are met, such as the
achievement of certain regulatory milestones or the achievement of certain commercial
milestones. The provision for contingent consideration can change significantly due to changes
in the estimated achievement of milestones and changes in discount rates. Changes in fair value
of the contingent consideration liability are reflected in other business income (expenses).
20Post-employment benefits
Accounting estimates and judgments
To make the actuarial calculations for the valuation of defined benefit obligations, assumptions are
needed for interest rates, healthcare cost increases, future pension increases, life expectancy and
employee turnover rates. The actuarial calculations are made by external actuaries based on inputs
from observable market data, such as corporate bond returns and yield curves to determine the
discount rates to apply, mortality tables to determine life expectancy and inflation rates to
determine future salary and pension growth assumptions.
Assumptions
The mortality tables used for the company\u2019s largest DB plans are:
Germany: Heubeck-Richttafeln 2018 Generational, assuming 93% of mortality rates for male
retirees between ages 60 and 85. US: PRI-2012 Generational with MP2021 improvement scale +
white collar adjustment.
The weighted averages of the assumptions used to calculate the DBO were as follows:
Philips Group
Assumptions used for defined benefit obligations\u00a0in %
as of December 31,
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Discount rate
3.7%
3.3%
5.0%
5.1%
4.9%
4.2%
4.3%
4.0%
Inflation rate
2.0%
2.0%
2.3%
2.3%
2.5%
2.2%
2.2%
2.1%
Salary increase
2.8%
2.8%
0.0%
0.0%
4.3%
4.4%
3.0%
3.1%
Sensitivity analysis
The following table illustrates the approximate impact on the DBO from movements in key
assumptions. The DBO was recalculated using a change in the assumptions of 1% which overall is
considered a reasonably possible change. The impact on the DBO because of changes in discount
rate is normally accompanied by offsetting movements in plan assets, especially when using
matching strategies.
The average duration in years of the DBO of the DB plans is 10 (Germany: 11, US: 8, and other
countries: 10) as of December\u00a031, 2024 (2023: 10).
Philips Group
Sensitivity of key assumptions in millions of EUR
2023
2024
Increase
Discount rate (1% movement)
(123)
(123)
Pension increase (1% movement)
60
60
Salary increase (1% movement)
12
14
Longevity\u00b9
32
34
Decrease
Discount rate (1% movement)
147
150
Pension increase (1% movement)
(52)
(52)
Salary increase (1% movement)
(11)
(12)
Longevity\u00b9
(22)
(24)
1The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on
the DBO of a further 10% decrease / increase in the assumed rates of mortality for the company\u2019s major
plans. A 10% decrease / increase in assumed mortality rates equals a change of life expectancy by 0.5\u00a0- 1
year.
24Contingencies
Accounting policies
Contingent liabilities
A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized
in the balance sheet because they are dependent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the company or because the risk of
loss is estimated to be possible but not probable or because the amount cannot be measured
reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain
information is not disclosed for legal proceedings for which the company concludes that disclosure
can be expected to seriously prejudice the outcome of the matter.
Contingent assets
Contingent assets are disclosed if the inflow of economic benefits is probable, but not virtually
certain. If the inflow of economic benefits becomes virtually certain, the asset would no longer be
contingent and its recognition appropriate.
Accounting estimates and judgments
Significant judgment is required to determine the likelihood of a potential outflow of resources. In
addition, judgment is involved in determining whether the amount of an obligation can be
measured with sufficient reliability. Contingencies involve inherent uncertainties including, but not
limited to, court rulings, negotiations between affected parties, governmental actions, tax and
environmental remediation. Contingent assets require management to apply judgment, especially
to estimate the likelihood of the inflow of economic benefits and timing of recognition.
26Share-based compensation
Accounting estimates and judgments
The use of a valuation model to determine market-based performance share fair value requires
estimates for the expected volatility of the Philips share price and correlation among input variables.
At each reporting date, Philips calculates the expected realization of the non-market-based
performance targets and revises the expected share-based compensation expense. The cumulative
effect is recorded in the consolidated statement of income with a corresponding adjustment in equity.
No expense is recognized for awards that do not ultimately vest because non-market performance
and/or service conditions have not been met.
28Fair value of financial assets and liabilities
Accounting estimates and judgments
Determining the fair value of financial instruments requires the use of estimates according to the
method applied for each type of financial asset of liability. The estimated fair value of financial
instruments has been determined by the company using available market information and
appropriate valuation methods. The estimates presented are not necessarily indicative of the
amounts that will ultimately be realized by the company upon maturity or disposal. The use of
different market assumptions and/or estimation methods may have a material effect on the
estimated fair value amounts.
Specific valuation techniques used to value financial instruments include:
Level 1
Instruments included in level 1 are composed 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 (OCI). 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\u2019s 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.
The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or
on the basis of discounted cash flow analysis using market rates plus Philips\u2019 spread for the
particular tenors of the borrowing arrangement. Accrued interest is not included within the
carrying amount or estimated fair value of debt.
Level 3
If one or more of the significant inputs are not based on observable market data, such as third-
party pricing information without adjustments, the instrument is included in level 3.
The fair value of contingent consideration is dependent on the terms of the respective acquisition
agreement that may require Philips to pay additional consideration to former shareholders if
specified future events occur or conditions are met, such as the achievement of certain regulatory
milestones or the achievement of certain commercial milestones. The fair value of the contingent
consideration provision is generally determined using a probability-weighted and a risk-adjusted
approach to estimate the achievement of future regulatory and commercial milestones,
respectively. The discount rates used in the risk adjusted approach reflect the inherent risk related
to achieving the commercial milestones. Both regulatory and commercial milestones are discounted
for the time value of money at risk-free rates. The fair value measurement is based on
management\u2019s estimates and assumptions and hence classified as Level 3 in the fair value
hierarchy.
29Details of treasury and other financial risks
Accounting estimates and judgments
Financial assets are subject to impairment assessment, which involves estimating expected credit
losses. Refer to Other financial assets for accounting policies on impairment of financial assets.
Credit risk
Credit risk represents the loss that would be recognized at the reporting date, if counterparties
failed completely to perform their payment obligations as contracted. Credit risk is present within
Philips trade receivables and contract assets. To have better insights into the credit exposures,
Philips performs ongoing evaluations of the financial and non-financial condition of its customers
and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is
determined not to be sufficient to grant the credit limit required, there are a number of mitigation
tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-
payments and pledges on assets.
Philips invests available cash and cash equivalents with various financial institutions and is exposed
to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-
performance by financial institutions with respect to financial derivative instruments. Philips actively
manages concentration risk and on a daily basis measures the potential loss under certain stress
scenarios, should a financial institution default. These worst-case scenario losses are monitored and
limited by the company.
The company does not enter into any financial derivative instruments to protect against default by
financial institutions. However, where possible the company requires all financial institutions with
which it deals in derivative transactions to complete legally enforceable netting agreements under
an International Swap Dealers Association master agreement or otherwise prior to trading, and
whenever possible, to have a strong credit rating. Philips also regularly monitors the development
of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial
transactions are concluded with financial institutions with strong credit ratings or with governments
or government-backed institutions.
The following table shows the number of financial institutions with credit rating A- and above with
which Philips has cash at hand and short-term deposits above EUR 10 million as of December\u00a031,
2024.
Philips Group
Credit risk with number of counterparties for deposits above EUR 10 million
10-100 million
100-500 million
500 million and
above
AAA rated bank counterparties
2
AA- rated bank counterparties
1
A+ rated bank counterparties
1
4
A rated bank counterparties
2
2
A- rated bank counterparties
2
2
Total
6
10
For an overview of the overall maximum credit exposure related to debt instruments, derivatives
and loans and receivables, refer to Fair value of financial assets and liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-530": { "value": "
1General information to the Consolidated financial statements
Material accounting policies
The material accounting policies as generally applied throughout the financial statements are
described below. Material accounting policies relating to specific financial statement items are
described in the respective notes to the financial statements.
Foreign currency transactions
The financial statements of all group entities are measured using the currency of the primary
economic environment in which the entity operates (functional currency). The euro (EUR) is the
functional currency of the company and the presentation currency of the consolidated financial
statements. Foreign currency transactions are converted into the functional currency using the
exchange rates prevailing at transaction date or the valuation date in cases where items are
remeasured. Gains and losses resulting from the settlement of foreign currency transactions and
those resulting from the conversion of foreign currency denominated monetary assets and liabilities
at period-end exchange rates are recognized in the Consolidated statements of income, except for
qualifying cash flow hedges, qualifying net investment hedges and equity investments measured at
fair value through OCI which are recognized in other comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-536": { "value": "1General information to the Consolidated financial statementsAccounting estimates and judgments The preparation of these financial statements requires management to make a number of estimates and judgments that affect the application of accounting policies and the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Amounts recognized are based on factors that are by default associated with uncertainty. Actual results may therefore differ from estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to estimates are recognized prospectively. Where applicable, the estimates and judgments of specific financial statement items are described in the respective note to the consolidated financial statements.The areas involving a higher degree of judgment and complexity in applying accounting principles and for which changes in the assumptions and estimates could result in significantly different results than those recorded in the consolidated financial statements are the following: \u2022 judgment applied in determining reportable segments involves evaluating the information reviewed by the Chief Operating Decision-Maker (the Board of Management) to assess performance and allocate resources (Information by segment and main country )\u2022 assessment of control (below paragraph Basis of consolidation and Interests in entities ) \u2022 revenue recognition (Income from operations ) \u2022 for acquisitions, the identification and valuation of acquired assets and liabilities including contingent considerations provisions (Acquisitions and divestments, Provisions)\u2022 determination of deferred tax assets for losses carried forward and uncertain tax positions (Income taxes )\u2022 assumptions used for impairment testing (Goodwill , Intangible assets excluding goodwill) \u2022 assessments of exposure to credit risk of financial instruments ( Other financial assets , Receivables, Debt, Fair value of financial assets and liabilities, Details of treasury and other financial risks )\u2022 assumptions used to determine the net realizable value of inventories (Inventories) \u2022 actuarial assumptions of future events that are used in calculating post-employment benefit expenses and liabilities (Post-employment benefits)\u2022 estimates and assumptions regarding the timing and the amount of outflow of resources, as well as estimating the likelihood of a potential outflow of resources and the ability to make a reliable estimate of the obligation relating to provisions and contingent liabilities (Provisions, Contingencies )The company regularly updates its significant assumptions and estimates to support the reported amounts of assets, liabilities, income and expenses.Climate changeIn preparing the consolidated financial statements, management has considered the impact of climate change, specifically the financial impact of Philips meeting its internal and external climate-related aims, the potential impact of climate- related risks, and the costs incurred to pro-actively manage such risks. These considerations did not have a material impact on the financial reporting judgments, estimates or assumptions. The financial impacts considered include specific climate mitigation measures, such as the use of lower-carbon energy sources, the cost of developing more sustainable product offerings, and expenses incurred to mitigate against the impact of extreme weather conditions. To meet its long-term Science Based Targets and reduce its full value chain emissions in line with a 1.5 \u00b0C global warming scenario, Philips has entered into a number of Power Purchase Agreements. Philips uses 100% electricity from renewable sources, mainly through long-term Power Purchase Agreements, thereby mitigating the impact of carbon taxes. The development of more sustainable products are covered through our EcoDesign program and already included in our R&D expenses. The physical risk related to climate change on our sites resulting from our Task Force on Climate-Related Financial Disclosures assessment is currently considered limited.3Discontinued operations and assets classified as held for saleAccounting estimates and judgments The determination of the fair value less costs of disposal involves the use of estimates and assumptions that tend to be uncertain. Circumstances to which these adjustments may relate include resolution of uncertainties that arise from the terms of the disposal transaction, such as the resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise from and are directly related to the operations of the component before its disposal, such as environmental and assurance-type product warranty obligations retained by the company, and the settlement of employee benefit plan obligations provided that the settlement is directly related to the disposal transaction. 4Acquisitions and divestmentsAccounting estimates and judgmentsIntangible assets acquired in a business acquisition and the financial liability related to non- controlling interest are measured at fair value at the date of the acquisition. To determine the fair value of intangible assets at the acquisition date, estimates and assumptions are required. The valuation of the identifiable intangible assets involves estimates of expected sales, earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty rate and growth rates. Estimates are also applied when determining the fair value of legal cases and tax positions in the acquired entity. The fair value is based on estimates of the likelihood, the expected timing and the amount of the potential cash outflow. Provisions for legal cases and non-income tax positions are recognized at fair value even if it is not probable that an outflow will be required to settle the obligation. After initial recognition and until the liability is settled, cancelled or expired, the liability is measured at the higher of the amount that would be recognized in accordance with IAS 37 'Provisions, contingent liabilities and contingent assets' and the initial liability amount. For income tax positions, the company applies IAS 12 'Income Taxes', which requires recognition of provisions only when the likelihood of cash outflow is considered probable. 6Income from operationsAccounting policies Revenue recognition The company recognizes revenue when it transfers control over a good or service to a customer, in an amount that reflects the consideration (i.e., transaction price) to which the company expects to be entitled in exchange for the good or service. The consideration expected by the company may include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and volume rebates. The company adjusts the consideration for the time value of money if the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds six months. Transfer of control varies depending on the individual terms of the contract of sale. For consumer- type products in the Personal Health segment, control is transferred when the product is shipped and delivered to the customer and title and risk have passed to the customer (depending on the delivery conditions) and acceptance of the product has been obtained. Revenues from transactions relating to distinct goods or services are accounted for separately based on their relative stand-alone selling prices. The stand-alone selling price is the price that would be charged for the goods or service in a separate transaction under similar conditions to similar customers. The transaction price is determined (considering variable considerations) and allocated to performance obligations based on their relative stand-alone selling prices. These transactions mainly occur in the segments Diagnosis & Treatment and Connected Care and include arrangements that require subsequent installation and training activities to make distinct goods operable for the customer. As such, the related installation and training activities are part of equipment sales rather than separate performance obligations. Revenue is recognized when the performance obligation is satisfied, i.e., when the installation has been completed and the equipment is ready to be used by the customer in the way contractually agreed. Variable consideration is included in the transaction price to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur once associated uncertainties are resolved. Such assessment is performed on each reporting date to check whether it is constrained. For products for which a right of return exists during a defined period, revenue recognition is determined based on the historical pattern of actual returns, or in cases where such information is not available, revenue recognition is postponed until the return period has lapsed. Return policies are typically based on customary return arrangements in local markets. A provision is recognized for assurance-type product warranty at the time of revenue recognition and reflects the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to the products sold. For certain products, the customer has the option to purchase the warranty separately, which is considered a separate performance obligation on top of the assurance-type product warranty. For such warranties which provide distinct service, revenue recognition occurs on a straight-line basis over the extended warranty contract period. Occasionally, the company may offer a full or partial refund of consideration previously paid, for example as part of the resolution to warranty related matters. In such instances, a provision is recognized for the amounts expected to be refunded to customers, and remeasured at each reporting date to reflect changes in the estimated refunds, with a corresponding adjustment to revenue. In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred for sales commissions that are considered incremental to the contracts are recognized immediately in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15 Revenue from Contracts with Customers. Accounting estimates and judgments Sales-related accruals The company has sales promotions-related agreements with distributors and retailers designed to promote the sale of products. Among the programs are arrangements under which rebates and discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or for participating in specific marketing programs. Management estimates the sales-related accruals associated with these arrangements based on a combination of historical patterns and future expectations regarding which promotional targets are expected to be met by distributors and retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right to offset against the respective accounts receivable. 10Property, plant and equipmentAccounting estimates and judgments Impairment of owned and right-of-use assets Judgments are required, not only to determine whether there is an indication that an asset may be impaired, but also whether indications exist that impairment losses previously recognized may no longer exist or may have decreased (impairment reversal). After indications of impairment have been identified, estimates and assumptions are used in the determination of the recoverable amount of a fixed asset. These involve estimates of expected future cash flows (based on future growth rates and remaining useful life) and residual value assumptions, as well as discount rates to calculate the present value of the future cash flows. Owned assetsEstimates are required to determine the (remaining) useful lives of fixed assets. Useful lives are determined based on an asset's age, the frequency of its use, repair and maintenance policy, technology changes in production and expected restructuring. The company estimates the expected residual value per asset item. The residual value is the higher of the asset's expected sales price (based on recent market transactions of similar sold items) and its material scrap value. Right-of-use assets Judgment is required to determine the lease term. The assessment of whether the company is reasonably certain to exercise extension options impacts the lease term, which could affect the amount of lease liabilities and right-of-use assets recognized.11GoodwillAccounting estimates and judgments The cash flow projections used in the value in use calculations for goodwill impairment testing contain various judgments and estimations as described in the \u2018key assumptions\u2019 section. Goodwill impairment testingDuring 2024 , there were no goodwill impairments recorded.Goodwill allocated to the Businesses (groups of cash-generating units) as of December\u00a031, 2024, is presented in the following table: Philips Group Goodwill by business in millions of EUR 2023 2024 Monitoring 3,964 4,194 Image-Guided Therapy 3,044 3,216 Precision Diagnosis 1,363 1,440 Sleep & Respiratory Care 687 694 Personal Health 483 509 Enterprise Informatics 336 331 Book value 9,876 10,383 The carrying amount of each group of CGUs is compared to the recoverable amount of the group of CGUs. Unless otherwise noted, the recoverable amount for each group of CGUs is based on value-in-use calculations. Cash flow projections were determined using Philips management's internal forecasts that cover an initial forecast period from 2025 to 2027. Projections were extrapolated using the growth rates disclosed in the following table for an extrapolation period of 4 years (2028-2031), after which a terminal value was calculated per 2032. For the terminal value calculation, growth rates were capped at a historical long-term average growth rate. The company uses scenarios in the business forecasting process and the most reasonable and supportable assumptions that represent management\u2019s best estimate are used as the basis for the value-in-use calculations.Key assumptionsKey assumptions used in the value-in-use calculations were compound sales growth rates, EBITA* in the terminal value and the rates used for discounting the projected cash flows. The compound sales growth rate is the annualized steady nominal growth rate over the forecast period calculated with reference to the latest full year of actual sales as the base for the growth. The compound sales growth rate used to calculate the terminal value is only applied to the first year after the extrapolation period, after which no further growth is assumed for the terminal value calculation.The compound sales growth rates and EBITA* used to estimate cash flows are based on past performance, external market growth assumptions and industry long-term growth averages. EBITA* for each group of CGUs is expected to increase over the projection period as a result of volume growth and cost efficiencies. By their nature, these assumptions involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from the plans, goals and expectations set forth in these assumptions.The rates used for discounting the projected cash flows in goodwill impairment testing is based on a weighted cost of capital (WACC), which in turn is based on business-specific inputs along with other inputs as mentioned below. The WACC is based on post-tax cost of equity and cost of debt, and is further calculated based on market data and inputs to accurately capture changes to the time value of money, such as the risk-free interest rate, the beta factor and country risk premium. In order to properly reflect the different risk-profiles of different businesses, a WACC is determined for each business. As such, the beta factor is determined based on a selection of peer companies, which can differ per business. Different businesses have different geographical footprints, resulting in business-specific inputs for variables like country risk. Philips performs the value-in-use calculations using post-tax cash flows and discount rate, the implicit pre-tax rate discount rate is derived from an iterative calculation for disclosure purposes.The values assigned to the key assumptions used for the value-in-use calculations were as follows:Philips GroupKey assumptions\u00a02024Compound sales growth rate Initial forecast period Extrapolation period Used to calculate terminal value Pre-tax discount rates Monitoring 5.3%4.7%2.5%9.1%Image-Guided Therapy 6.3%5.0%2.5%9.7%Precision Diagnosis 2.4%3.6%2.5%9.9%Sleep & Respiratory Care 10.1%7.3%2.5%10.3%Personal Health 5.1%4.2%2.5%9.9%Enterprise Informatics 4.4%5.4%2.5%8.9%The assumptions used for the 2023 value-in-use calculations for cash-generating units to which a significant amount of goodwill was allocated were as follows:Philips GroupKey assumptions\u00a02023 compound sales growth rate initial forecast period extrapolation period used to calculate terminal value pre-tax discount rates Monitoring 8.2%5.5%2.5%9.5%Image-Guided Therapy 7.9%5.2%2.5%10.7%Precision Diagnosis 3.8%3.4%2.5%10.4%Sleep & Respiratory Care 9.5%9.3%2.5%10.8%Personal Health 5.0%4.6%2.5%10.3%Enterprise Informatics 5.3%5.8%2.5%9.0%Sensitivity to changes in assumptionsThe results of the annual impairment tests of the groups of CGUs 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.*The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Information by segment and main country12Intangible assets excluding goodwillAccounting estimates and judgments The cash flow projections used in the value in use calculations for intangible assets excluding goodwill contain various judgments and estimations. For intangible assets excluding goodwill, estimates are required to determine the (remaining) useful lives. 13Other financial assetsAccounting policies Impairment of financial assets The company recognizes a loss allowance for expected credit losses for trade receivables, contract assets, lease receivables, debt investments carried at amortized cost and fair value through other comprehensive income (FVTOCI). At each balance sheet date, the company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired and recognizes a loss allowance for expected credit losses for financial assets measured at either amortized costs or at fair value through other comprehensive income. If, at the reporting date, the credit risk on a financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for the financial instrument at an amount equal to 12 months of expected credit losses. If, at the reporting date, the credit risk on a financial instrument has increased significantly since initial recognition, the company measures the loss allowance for the financial instrument at an amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and lease receivables the company measures the loss allowance at an amount equal to lifetime- expected credit losses. Accounting estimates and judgments The determination of fair value is subject to estimates for investments that are not publicly traded. Refer to Fair value of financial assets and liabilities .Financial assets classified at amortized cost and at fair value through OCI are subject to impairment assessment. The calculation of expected credit losses requires the company to apply significant judgment and make estimates and assumptions that involve significant uncertainty at the time they are made. Changes to these estimates and assumptions can result in significant changes to the timing and amount of expected credit losses to be recognized. 15InventoriesAccounting policies Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include direct labor and fixed and variable production overheads, considering the stage of completion and the normal capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of inventories is determined using the first-in, first-out (FIFO) method. The write-down of inventories to net realizable value is included in cost of sales. Accounting estimates and judgments Inventory is reduced for the estimated losses due to obsolescence. This reduction is determined for groups of products based on sales in the recent past and/or expected future demand. 16ReceivablesAccounting estimates Receivables are subject to impairment assessment, which involves estimating expected credit losses. Refer to Other financial assets for accounting policies on impairment of financial assets. 19ProvisionsAccounting estimates and judgments By their nature, the recognition of provisions requires estimates and assumptions regarding the timing and the amount of outflow of resources. The main estimates include: \u2022 Product warranty provisions \u2013 the provisions for assurance-type product warranty reflect the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to products sold and include costs to execute quality remediation and related field actions (including the Respironics field action). These require management to make estimates and assumptions about items such as quantities and the portion of products to be remediated through replacement, repair or (partial) refund. \u2022 Environmental provisions \u2013 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. The impact of climate change is also considered when assessing whether Philips has a present legal or constructive obligation, particularly in relation to fines, penalties and commitments to reduce greenhouse gas emissions. \u2022 Legal provisions \u2013 provisions for legal claims and investigations reflect the best estimate of the outflow of resources, supported by internal and external legal counsel, when it is probable that such outflow of resources will be required to settle an obligation. \u2022 Contingent consideration provisions \u2013 the provision for contingent consideration reflects the fair value of the expected payment to former shareholders of an acquired company for the exchange of control if specified future events occur or conditions are met, such as the achievement of certain regulatory milestones or the achievement of certain commercial milestones. The provision for contingent consideration can change significantly due to changes in the estimated achievement of milestones and changes in discount rates. Changes in fair value of the contingent consideration liability are reflected in other business income (expenses). 20Post-employment benefitsAccounting estimates and judgments To make the actuarial calculations for the valuation of defined benefit obligations, assumptions are needed for interest rates, healthcare cost increases, future pension increases, life expectancy and employee turnover rates. The actuarial calculations are made by external actuaries based on inputs from observable market data, such as corporate bond returns and yield curves to determine the discount rates to apply, mortality tables to determine life expectancy and inflation rates to determine future salary and pension growth assumptions. AssumptionsThe mortality tables used for the company\u2019s largest DB plans are:Germany: Heubeck-Richttafeln 2018 Generational, assuming 93% of mortality rates for male retirees between ages 60 and 85. US: PRI-2012 Generational with MP2021 improvement scale + white collar adjustment.The weighted averages of the assumptions used to calculate the DBO were as follows:Philips GroupAssumptions used for defined benefit obligations\u00a0in % as of December 31,Germany United States Other countries Total 2023 2024 2023 2024 2023 2024 2023 2024 Discount rate 3.7%3.3%5.0%5.1%4.9%4.2%4.3%4.0%Inflation rate 2.0%2.0%2.3%2.3%2.5%2.2%2.2%2.1%Salary increase 2.8%2.8%0.0%0.0%4.3%4.4%3.0%3.1%Sensitivity analysisThe following table illustrates the approximate impact on the DBO from movements in key assumptions. The DBO was recalculated using a change in the assumptions of 1% which overall is considered a reasonably possible change. The impact on the DBO because of changes in discount rate is normally accompanied by offsetting movements in plan assets, especially when using matching strategies.The average duration in years of the DBO of the DB plans is 10 (Germany: 11, US: 8, and other countries: 10) as of December\u00a031, 2024 (2023: 10).Philips GroupSensitivity of key assumptions in millions of EUR2023 2024 Increase Discount rate (1% movement) (123) (123) Pension increase (1% movement) 60 60 Salary increase (1% movement) 12 14 Longevity\u00b932 34 Decrease Discount rate (1% movement) 147 150 Pension increase (1% movement) (52) (52) Salary increase (1% movement) (11) (12) Longevity\u00b9(22) (24) 1The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on the DBO of a further 10% decrease / increase in the assumed rates of mortality for the company\u2019s major plans. A 10% decrease / increase in assumed mortality rates equals a change of life expectancy by 0.5\u00a0- 1 year.26Share-based compensationAccounting estimates and judgments The use of a valuation model to determine market-based performance share fair value requires estimates for the expected volatility of the Philips share price and correlation among input variables. At each reporting date, Philips calculates the expected realization of the non-market-based performance targets and revises the expected share-based compensation expense. The cumulative effect is recorded in the consolidated statement of income with a corresponding adjustment in equity. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. 28Fair value of financial assets and liabilitiesAccounting estimates and judgments Determining the fair value of financial instruments requires the use of estimates according to the method applied for each type of financial asset of liability. The estimated fair value of financial instruments has been determined by the company using available market information and appropriate valuation methods. The estimates presented are not necessarily indicative of the amounts that will ultimately be realized by the company upon maturity or disposal. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts. Specific valuation techniques used to value financial instruments include: Level 1 Instruments included in level 1 are composed 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 (OCI). 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\u2019s 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. The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or on the basis of discounted cash flow analysis using market rates plus Philips\u2019 spread for the particular tenors of the borrowing arrangement. Accrued interest is not included within the carrying amount or estimated fair value of debt. Level 3If one or more of the significant inputs are not based on observable market data, such as third- party pricing information without adjustments, the instrument is included in level 3. The fair value of contingent consideration is dependent on the terms of the respective acquisition agreement that may require Philips to pay additional consideration to former shareholders if specified future events occur or conditions are met, such as the achievement of certain regulatory milestones or the achievement of certain commercial milestones. The fair value of the contingent consideration provision is generally determined using a probability-weighted and a risk-adjusted approach to estimate the achievement of future regulatory and commercial milestones, respectively. The discount rates used in the risk adjusted approach reflect the inherent risk related to achieving the commercial milestones. Both regulatory and commercial milestones are discounted for the time value of money at risk-free rates. The fair value measurement is based on management\u2019s estimates and assumptions and hence classified as Level 3 in the fair value hierarchy. 29Details of treasury and other financial risksAccounting estimates and judgments Financial assets are subject to impairment assessment, which involves estimating expected credit losses. Refer to Other financial assets for accounting policies on impairment of financial assets.Credit riskCredit risk represents the loss that would be recognized at the reporting date, if counterparties failed completely to perform their payment obligations as contracted. Credit risk is present within Philips trade receivables and contract assets. To have better insights into the credit exposures, Philips performs ongoing evaluations of the financial and non-financial condition of its customers and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is determined not to be sufficient to grant the credit limit required, there are a number of mitigation tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-payments and pledges on assets.Philips invests available cash and cash equivalents with various financial institutions and is exposed to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-performance by financial institutions with respect to financial derivative instruments. Philips actively manages concentration risk and on a daily basis measures the potential loss under certain stress scenarios, should a financial institution default. These worst-case scenario losses are monitored and limited by the company.The company does not enter into any financial derivative instruments to protect against default by financial institutions. However, where possible the company requires all financial institutions with which it deals in derivative transactions to complete legally enforceable netting agreements under an International Swap Dealers Association master agreement or otherwise prior to trading, and whenever possible, to have a strong credit rating. Philips also regularly monitors the development of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial transactions are concluded with financial institutions with strong credit ratings or with governments or government-backed institutions.The following table shows the number of financial institutions with credit rating A- and above with which Philips has cash at hand and short-term deposits above EUR 10 million as of December\u00a031, 2024.Philips GroupCredit risk with number of counterparties for deposits above EUR 10 million10-100 million 100-500 million 500 million and above AAA rated bank counterparties 2 AA- rated bank counterparties 1 A+ rated bank counterparties 1 4 A rated bank counterparties 2 2 A- rated bank counterparties 2 2 Total 6 10 For an overview of the overall maximum credit exposure related to debt instruments, derivatives and loans and receivables, refer to Fair value of financial assets and liabilities.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-541": { "value": "Koninklijke Philips N.V.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-542": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-543": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-544": { "value": "public limited liability company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-545": { "value": "High Tech Campus 52, 5656 AG Eindhoven, the Netherlands", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-546": { "value": "Philips is a leading health technology company primarily involved in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-550": { "value": "
Basis of preparation
The Consolidated financial statements are:
\u2022 prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
European Union (EU) and comply with the statutory provisions of Part 9, Book 2 of the Dutch
Civil Code. All standards and interpretations issued by the International Accounting Standards
Board (IASB) and the IFRS Interpretations Committee effective 2024 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
\u2022 authorized for issue by the Board of Management of Royal Philips on February 21, 2025
\u2022 prepared under the historical cost convention, unless otherwise indicated
\u2022 prepared on a going concern basis
\u2022 presented in euro, which is the presentation currency
\u2022 rounded to the nearest million euro unless stated otherwise
\u2022 subject to rounding, whereby amounts may not add up precisely to the totals provided", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-549": { "value": "
Basis of preparation
The Consolidated financial statements are:
\u2022 prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
European Union (EU) and comply with the statutory provisions of Part 9, Book 2 of the Dutch
Civil Code. All standards and interpretations issued by the International Accounting Standards
Board (IASB) and the IFRS Interpretations Committee effective 2024 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
\u2022 authorized for issue by the Board of Management of Royal Philips on February 21, 2025
\u2022 prepared under the historical cost convention, unless otherwise indicated
\u2022 prepared on a going concern basis
\u2022 presented in euro, which is the presentation currency
\u2022 rounded to the nearest million euro unless stated otherwise
\u2022 subject to rounding, whereby amounts may not add up precisely to the totals provided", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-548": { "value": "
Basis of preparation
The Consolidated financial statements are:
\u2022 prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
European Union (EU) and comply with the statutory provisions of Part 9, Book 2 of the Dutch
Civil Code. All standards and interpretations issued by the International Accounting Standards
Board (IASB) and the IFRS Interpretations Committee effective 2024 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
\u2022 authorized for issue by the Board of Management of Royal Philips on February 21, 2025
\u2022 prepared under the historical cost convention, unless otherwise indicated
\u2022 prepared on a going concern basis
\u2022 presented in euro, which is the presentation currency
\u2022 rounded to the nearest million euro unless stated otherwise
\u2022 subject to rounding, whereby amounts may not add up precisely to the totals provided", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-547": { "value": "
Basis of preparation
The Consolidated financial statements are:
\u2022 prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
European Union (EU) and comply with the statutory provisions of Part 9, Book 2 of the Dutch
Civil Code. All standards and interpretations issued by the International Accounting Standards
Board (IASB) and the IFRS Interpretations Committee effective 2024 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
\u2022 authorized for issue by the Board of Management of Royal Philips on February 21, 2025
\u2022 prepared under the historical cost convention, unless otherwise indicated
\u2022 prepared on a going concern basis
\u2022 presented in euro, which is the presentation currency
\u2022 rounded to the nearest million euro unless stated otherwise
\u2022 subject to rounding, whereby amounts may not add up precisely to the totals provided", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-551": { "value": "
Basis of consolidation
The Consolidated financial statements comprise the financial statements of Koninklijke Philips N.V.
and all subsidiaries that the company controls on a consolidated basis. Control exists when the
company is exposed or has rights to variable returns from its involvement with the investee and the
company has the ability to affect those returns through its power over the investee. Generally,
there is a presumption that a majority of voting rights results in control. To support this
presumption and in cases where Philips has less than a majority of the voting or similar rights of an
investee, Philips considers all relevant facts and circumstances in assessing whether it has power
over an investee, including the contractual arrangement(s) with the other vote holders of the
investee, rights arising from other contractual arrangements and the company\u2019s 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-553": { "value": "
New accounting policies effective in 2024
No new IFRS accounting standards or amendments to existing standards, effective in 2024, had a
significant impact on the consolidated financial statements.
New accounting policies effective after 2024
The IASB has issued several IFRS accounting standards, or amendments to standards, with an
effective date after 2024. Considerations relating to IFRS 18 Presentation and Disclosure in Financial
Statements are set out below. The company has not early adopted any standards or amendments
to existing standards. The company does not anticipate that the application of any other standards,
or amendments to standards, will have a significant impact on the consolidated financial
statements upon adoption.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 was issued in April 2024 and is endorsed by the EU. It will supersede IAS 1 Presentation of
Financial Statements. IFRS 18 introduces new requirements for presentation within the
Consolidated statement of income, including specified totals and subtotals. Even though the new
standard will not impact the recognition and measurement of items in the financial statements, the
new standard requires entities to include additional defined subtotals to the Consolidated
statement of income, disclosures about management-defined performance measures and is adding
new principles for aggregation and disaggregation of information.
IFRS 18 is effective for reporting periods beginning on or after January 1, 2027. Retrospective
application is required; therefore, comparative information will be restated in accordance with IFRS
18. Philips is currently assessing the detailed implications of applying the new standard on the
group\u2019s Consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-552": { "value": "
New accounting policies effective in 2024
No new IFRS accounting standards or amendments to existing standards, effective in 2024, had a
significant impact on the consolidated financial statements.
New accounting policies effective after 2024
The IASB has issued several IFRS accounting standards, or amendments to standards, with an
effective date after 2024. Considerations relating to IFRS 18 Presentation and Disclosure in Financial
Statements are set out below. The company has not early adopted any standards or amendments
to existing standards. The company does not anticipate that the application of any other standards,
or amendments to standards, will have a significant impact on the consolidated financial
statements upon adoption.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 was issued in April 2024 and is endorsed by the EU. It will supersede IAS 1 Presentation of
Financial Statements. IFRS 18 introduces new requirements for presentation within the
Consolidated statement of income, including specified totals and subtotals. Even though the new
standard will not impact the recognition and measurement of items in the financial statements, the
new standard requires entities to include additional defined subtotals to the Consolidated
statement of income, disclosures about management-defined performance measures and is adding
new principles for aggregation and disaggregation of information.
IFRS 18 is effective for reporting periods beginning on or after January 1, 2027. Retrospective
application is required; therefore, comparative information will be restated in accordance with IFRS
18. Philips is currently assessing the detailed implications of applying the new standard on the
group\u2019s Consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-554": { "value": "
2Information by segment and main country
Accounting policies
Segment accounting policies are the same as the accounting policies applied by the company.
Operating segments are components of the company\u2019s business activities about which separate
financial information is available that is evaluated regularly by the Chief Operating Decision-Maker
(the Board of Management of the company). The Board of Management decides how to allocate
resources and assesses performance. Reportable segments comprise the operating segments
Diagnosis & Treatment, Connected Care and Personal Health. Besides these reportable segments,
segment Other contains Innovation & Strategy, IP Royalties, Central costs, and other small items.
Accounting estimates and judgments
Determining reportable segments requires significant judgment and involves evaluating the
information which is reviewed by the Chief Operating Decision-Maker (the Board of Management)
to assess performance and allocate resources, in accordance with IFRS 8 'Operating Segments'.
The Philips reportable segments are Diagnosis & Treatment, Connected Care and Personal Health,
each being responsible for the management of its Businesses worldwide.
Philips focuses on improving people\u2019s lives through meaningful innovation. The Diagnosis &
Treatment segment unites the Businesses related to the goal of precision diagnosis and disease
pathway selection, and the Businesses related to image-guided, minimally invasive treatment. The
Connected Care segment focuses on patient care solutions, advanced informatics and analytics,
and patient and workflow optimization inside and outside the hospital, and aims to unlock
synergies from integrating and optimizing patient care pathways, and leveraging provider-payer-
patient business models. The Personal Health segment focuses on healthy living and preventative
care.
Philips has realigned the composition of its reportable segments effective from April 1, 2023. The
most notable change is the shift of the previous Enterprise Diagnostic Informatics Business from the
Diagnosis & Treatment segment to the Connected Care segment. This Business, together with
other informatics solutions in the Connected Care segment, now forms the Enterprise Informatics
Business. Accordingly, the 2022 comparative figures for the affected segments were previously
restated. The realignment did not impact the presentation of the reportable segments or the key
segmental performance measure, which continues to be Adjusted EBITA*.
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\u2019s length basis. Philips has no single external customer that represents 10% or more of
sales. Sales by country is presented based on the country of seller.
Philips Group
Information on income statements in millions of EUR
Sales
Sales including
intercompany
Depreciation
and
amortization\u00b9
Adjusted EBITA
2024
Diagnosis & Treatment
8,790
9,269
(464)
1,018
Connected Care
5,134
5,163
(403)
494
Personal Health
3,486
3,566
(117)
584
Other
611
750
(406)
(18)
Inter-segment eliminations
(726)
Philips Group
18,021
18,021
(1,390)
2,077
2023
Diagnosis & Treatment
8,825
9,269
(306)
1,028
Connected Care
5,138
5,149
(445)
369
Personal Health
3,602
3,685
(115)
597
Other
604
413
(394)
(73)
Inter-segment eliminations
(346)
Philips Group
18,169
18,169
(1,261)
1,921
2022
Diagnosis & Treatment
8,303
8,597
(417)
786
Connected Care
5,268
5,280
(646)
111
Personal Health
3,626
3,684
(132)
538
Other
630
715
(407)
(118)
Inter-segment eliminations
(449)
Philips Group
17,827
17,827
(1,602)
1,318
1 Includes impairments (excluding goodwill impairment); for impairment values please refer to Property, plant
and equipment and Intangible assets excluding goodwill
The term Adjusted EBITA* is used to evaluate the performance of Philips and its segments.
Adjusted EBITA* represents income from operations excluding amortization and impairment of
acquired intangible assets and impairment of goodwill (EBITA) and excluding gains or losses from
restructuring costs, acquisition-related charges and other items.
Adjusted EBITA* is not a recognized measure of financial performance under IFRS. Presented in the
following tables are the reconciliations of Adjusted EBITA* to the most directly comparable IFRS
measure, Net income, for the years indicated. Net income is not allocated to segments as certain
income and expense line items are monitored on a centralized basis, resulting in them being shown
on a Philips Group level only.
Philips Group
Reconciliation from net income to Adjusted EBITA in millions of EUR
Philips
Group
Diagnosis &
Treatment
Connected
Care
Personal
Health
Other
2024
Net Income
(698)
Discontinued operations, net of income
taxes
(142)
Income tax expense (benefit)
963
Investments in associates, net of income
taxes
124
Financial expenses
387
Financial income
(105)
Income from operations
529
592
(466)
544
(142)
Amortization and impairment of acquired
intangible assets
392
225
141
15
12
EBITA
921
817
(324)
559
(130)
Restructuring and acquisition-related
charges
326
157
53
25
92
Other items:
830
45
765
-
20
Respironics litigation provision
984
984
Respironics insurance income
(538)
(538)
Respironics field-action running costs
133
133
Respironics consent decree charges
113
113
Quality actions
123
45
78
Remaining items
16
(4)
-
20
Adjusted EBITA*
2,077
1,018
494
584
(18)
Philips Group
Reconciliation from net income to Adjusted EBITA in millions of EUR
Philips
Group
Diagnosis &
Treatment
Connected
Care
Personal
Health
Other
2023
Net Income
(463)
Discontinued operations, net of income
taxes
10
Income tax expense (benefit)
(73)
Investments in associates, net of income
taxes
98
Financial expenses
376
Financial income
(63)
Income from operations
(115)
721
(1,199)
552
(190)
Amortization and impairment of acquired
intangible assets
290
89
178
14
9
Impairment of goodwill
8
8
-
EBITA
183
818
(1,020)
567
(181)
Restructuring and acquisition-related
charges
381
118
115
9
140
Other items:
1,358
92
1,275
22
(32)
Respironics litigation provision
575
575
Respironics field-action connected to the
proposed consent decree
363
363
Respironics field-action running costs
224
224
Quality actions
175
81
94
Provision for a legal matter
31
31
Investment re-measurement loss
23
23
Gain on divestment of business
(35)
(35)
Remaining items
2
11
(12)
(1)
3
Adjusted EBITA*
1,921
1,028
369
597
(73)
Philips Group
Reconciliation from net income to Adjusted EBITA in millions of EUR
Philips
Group
Diagnosis &
Treatment
Connected
Care
Personal
Health
Other
2022
Net Income
(1,605)
Discontinued operations, net of income
taxes
(13)
Income tax expense (benefit)
(113)
Investments in associates, net of income
taxes
2
Financial expenses
258
Financial income
(58)
Income from operations
(1,529)
536
(2,347)
515
(233)
Amortization and impairment of acquired
intangible assets
363
115
226
15
8
Impairment of goodwill
1,357
1,357
EBITA
192
650
(764)
531
(225)
Restructuring and acquisition-related
charges
202
3
125
11
62
Other items:
925
133
750
(4)
46
Respironics field-action connected to the
proposed consent decree
250
250
Respironics field-action running costs
210
210
R&D project impairments
134
73
59
3
Portfolio realignment charges
109
109
Provision for public investigations tender
irregularities
60
60
Quality actions
59
59
Impairment of assets in S&RC
39
39
Remaining items
63
-
24
(6)
46
Adjusted EBITA*
1,318
786
111
538
(118)
*Non-IFRS financial measure. For the definition and reconciliation of the most directly comparable IFRS
measure, refer to Reconciliation of non-IFRS information.
Philips Group
Main countries in millions of EUR
Sales
Tangible and
intangible
assets\u00b9
2024
Netherlands
2,506
1,662
United States
7,227
11,607
China
1,153
250
Japan
886
396
Germany
653
392
Other countries
5,596
1,509
Total main countries
18,021
15,816
2023
Netherlands
2,390
1,624
United States
7,178
11,410
China
1,408
234
Japan
941
407
Germany
573
348
Other countries
5,679
1,527
Total main countries
18,169
15,550
2022
Netherlands
2,021
1,746
United States
7,226
12,087
China
1,239
260
Japan
1,011
436
Germany
642
323
Other countries
5,688
1,550
Total main countries
17,827
16,402
1 Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill
6Income from operations
Sales composition and disaggregation
For information related to sales on a segment and geographical basis, refer to Information by
segment and main country.
Philips Group
Sales composition in millions of EUR
2022
2023
2024
Goods
12,139
12,419
12,198
Services
4,878
4,926
5,003
Royalties
419
434
466
Total sales from contracts with customers
17,435
17,779
17,667
Sales from other sources
391
390
354
Total sales
17,827
18,169
18,021
Total sales from other sources mainly relates to operating leases EUR 222 million (2023: EUR 234
million; 2022: EUR 258 million). Sales represent revenue from external customers.
As of December\u00a031, 2024, the aggregate amount of the transaction price allocated to remaining
performance obligations from a sale of goods and services was EUR 15,632 million (2023 :15,571
million ) . The company expects to recognize approximately 56% of the remaining performance
obligations within 1 year . Revenue expected to be recognized beyond is mostly related to longer
term customer service and software contracts.
Sales over time represent services and Other also includes royalties over time (2024: EUR 277
million; 2023: EUR 283 million; 2022: EUR 292 million).
Sales per geographic area are reported based on country of destination.
Philips Group
Disaggregation of Sales per segment in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,655
3,070
8,725
65
8,790
Connected Care
2,959
1,886
4,845
289
5,134
Personal Health
3,471
15
3,486
3,486
Other
300
311
611
611
Philips Group
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per segment in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,768
2,980
8,749
76
8,825
Connected Care
2,970
1,854
4,824
314
5,138
Personal Health
3,586
16
3,602
3,602
Other
245
360
604
-
604
Philips Group
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per segment in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,295
2,954
8,248
55
8,303
Connected Care
3,079
1,853
4,932
336
5,268
Personal Health
3,615
11
3,626
3,626
Other
274
353
630
630
Philips Group
12,263
5,172
17,435
391
17,827
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,698
1,254
3,951
28
3,978
North America
4,958
2,602
7,560
93
7,655
Other mature geographies
893
401
1,294
231
1,526
Mature geographies
8,549
4,256
12,805
353
13,159
Growth geographies
3,836
1,026
4,861
1
4,863
Sales
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,552
1,221
3,770
49
3,819
North America
4,859
2,608
7,470
92
7,562
Other mature geographies
980
398
1,378
248
1,626
Mature geographies
8,392
4,227
12,618
389
13,007
Growth geographies
4,177
984
5,161
1
5,162
Sales
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,387
1,183
3,572
31
3,603
North America
4,889
2,612
7,502
86
7,588
Other mature geographies
972
399
1,369
274
1,643
Mature geographies
8,248
4,194
12,443
390
12,833
Growth geographies
4,015
978
4,992
1
4,993
Sales
12,263
5,172
17,435
391
17,827
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-555": { "value": "
2Information by segment and main country
Accounting policies
Segment accounting policies are the same as the accounting policies applied by the company.
Operating segments are components of the company\u2019s business activities about which separate
financial information is available that is evaluated regularly by the Chief Operating Decision-Maker
(the Board of Management of the company). The Board of Management decides how to allocate
resources and assesses performance. Reportable segments comprise the operating segments
Diagnosis & Treatment, Connected Care and Personal Health. Besides these reportable segments,
segment Other contains Innovation & Strategy, IP Royalties, Central costs, and other small items.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-558": { "value": "
3Discontinued operations and assets classified as held for sale
Accounting policies
Assets classified as held-for-sale
Non-current assets (or disposal groups) are classified as held-for-sale if their carrying amounts are
expected to be recovered through a sale transaction rather than through continuing use. Non-
current assets (or disposal groups) classified as held-for-sale are measured at the lower of their
carrying amount or the fair value less costs of disposal. Depreciation or amortization of an asset
ceases when it is classified as held-for-sale. When non-current assets (or disposal groups) are
classified as held-for-sale, comparative balances prior to such date are not represented in the
Consolidated balance sheets.
Discontinued operations
A discontinued operation is a component of the company that has either been disposed of or is
classified as held-for-sale and represents a separate major line of business or geographical area of
operations or is a part of a single coordinated plan to dispose of a separate major line of business
or geographical area of operations. Any gain or loss from disposal, together with the results of
these operations until the date of disposal, are reported separately as discontinued operations in
the Consolidated statements of income.
The financial information of discontinued operations is excluded from the respective captions in the
Consolidated financial statements and related notes for all periods presented. Comparatives are re-
presented for presentation of discontinued operations in the Consolidated statements of income
and Consolidated statements of cash flows.
Accounting estimates and judgments
The determination of the fair value less costs of disposal involves the use of estimates and
assumptions that tend to be uncertain. Circumstances to which these adjustments may relate
include resolution of uncertainties that arise from the terms of the disposal transaction, such as the
resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise
from and are directly related to the operations of the component before its disposal, such as
environmental and assurance-type product warranty obligations retained by the company, and the
settlement of employee benefit plan obligations provided that the settlement is directly related to
the disposal transaction.
In 2024 discontinued operations consist primarily of the Domestic Appliances business. In 2023 and
2022 discontinued operations consist of certain costs related to other divestments, which were
previously reported as discontinued operations.
Philips Group
Discontinued operations, net of income taxes in millions of EUR
2022
2023
2024
Domestic Appliances
3
(2)
140
Other
10
(7)
2
Discontinued operations, net of income taxes
13
(10)
142
Discontinued operations: Domestic Appliances
In 2024, Discontinued operations related to the Domestic Appliances business included a tax
benefit of EUR 140 million relating to tax audit settlements of prior years. Discontinued operations
related to the Domestic Appliances business resulted in a net loss of EUR 2 million in 2023 and net
gain of EUR 3 million in 2022.
Discontinued operations: Other
Certain costs related to other divestments, which were previously reported as discontinued
operations, resulted in a net gain of EUR 2 million in 2024, a net loss of EUR 7 million in 2023 and
a net gain of EUR 10 million in 2022 .
Discontinued operations cash flows
The following table presents the net cash provided by (used for) discontinued operations reported
in the Consolidated statements of cash flows.
Philips Group
Net cash provided by (used for) discontinued operations in millions of EUR
2022
2023
2024
Net cash provided by (used for) operating activities
(27)
123
(13)
Net cash provided by (used for) investing activities
15
Net cash provided by (used for) discontinued
operations
(12)
123
(13)
In 2024, net cash used for discontinued operations was EUR 13 million and consisted primarily of
cash flows related to the tax claims from the previously divested business.
In 2023 , net cash provided by discontinued operations was EUR 123 million and consisted primarily
of a refund received of advance tax payments related to a previously divested business.
In 2022, net cash used for discontinued operations was EUR 12 million and consisted primarily of
cash flows related to the tax claims from the previously divested business.
Assets classified as held for sale
As of December\u00a031, 2024, there were no assets held for sale.
As of December\u00a031, 2023 , assets held for sale primarily consisted of assets and liabilities of EUR 69
million, directly associated with a business held for sale.", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-556": { "value": "
3Discontinued operations and assets classified as held for sale
Accounting policies
Assets classified as held-for-sale
Non-current assets (or disposal groups) are classified as held-for-sale if their carrying amounts are
expected to be recovered through a sale transaction rather than through continuing use. Non-
current assets (or disposal groups) classified as held-for-sale are measured at the lower of their
carrying amount or the fair value less costs of disposal. Depreciation or amortization of an asset
ceases when it is classified as held-for-sale. When non-current assets (or disposal groups) are
classified as held-for-sale, comparative balances prior to such date are not represented in the
Consolidated balance sheets.
Discontinued operations
A discontinued operation is a component of the company that has either been disposed of or is
classified as held-for-sale and represents a separate major line of business or geographical area of
operations or is a part of a single coordinated plan to dispose of a separate major line of business
or geographical area of operations. Any gain or loss from disposal, together with the results of
these operations until the date of disposal, are reported separately as discontinued operations in
the Consolidated statements of income.
The financial information of discontinued operations is excluded from the respective captions in the
Consolidated financial statements and related notes for all periods presented. Comparatives are re-
presented for presentation of discontinued operations in the Consolidated statements of income
and Consolidated statements of cash flows.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-560": { "value": "
3Discontinued operations and assets classified as held for sale
Accounting policies
Assets classified as held-for-sale
Non-current assets (or disposal groups) are classified as held-for-sale if their carrying amounts are
expected to be recovered through a sale transaction rather than through continuing use. Non-
current assets (or disposal groups) classified as held-for-sale are measured at the lower of their
carrying amount or the fair value less costs of disposal. Depreciation or amortization of an asset
ceases when it is classified as held-for-sale. When non-current assets (or disposal groups) are
classified as held-for-sale, comparative balances prior to such date are not represented in the
Consolidated balance sheets.
Accounting estimates and judgments
The determination of the fair value less costs of disposal involves the use of estimates and
assumptions that tend to be uncertain. Circumstances to which these adjustments may relate
include resolution of uncertainties that arise from the terms of the disposal transaction, such as the
resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise
from and are directly related to the operations of the component before its disposal, such as
environmental and assurance-type product warranty obligations retained by the company, and the
settlement of employee benefit plan obligations provided that the settlement is directly related to
the disposal transaction.
Assets classified as held for sale
As of December\u00a031, 2024, there were no assets held for sale.
As of December\u00a031, 2023 , assets held for sale primarily consisted of assets and liabilities of EUR 69
million, directly associated with a business held for sale.", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-559": { "value": "
3Discontinued operations and assets classified as held for sale
Accounting policies
Assets classified as held-for-sale
Non-current assets (or disposal groups) are classified as held-for-sale if their carrying amounts are
expected to be recovered through a sale transaction rather than through continuing use. Non-
current assets (or disposal groups) classified as held-for-sale are measured at the lower of their
carrying amount or the fair value less costs of disposal. Depreciation or amortization of an asset
ceases when it is classified as held-for-sale. When non-current assets (or disposal groups) are
classified as held-for-sale, comparative balances prior to such date are not represented in the
Consolidated balance sheets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-557": { "value": "
3Discontinued operations and assets classified as held for sale
Accounting policies
Discontinued operations
A discontinued operation is a component of the company that has either been disposed of or is
classified as held-for-sale and represents a separate major line of business or geographical area of
operations or is a part of a single coordinated plan to dispose of a separate major line of business
or geographical area of operations. Any gain or loss from disposal, together with the results of
these operations until the date of disposal, are reported separately as discontinued operations in
the Consolidated statements of income.
The financial information of discontinued operations is excluded from the respective captions in the
Consolidated financial statements and related notes for all periods presented. Comparatives are re-
presented for presentation of discontinued operations in the Consolidated statements of income
and Consolidated statements of cash flows.
Accounting estimates and judgments
The determination of the fair value less costs of disposal involves the use of estimates and
assumptions that tend to be uncertain. Circumstances to which these adjustments may relate
include resolution of uncertainties that arise from the terms of the disposal transaction, such as the
resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise
from and are directly related to the operations of the component before its disposal, such as
environmental and assurance-type product warranty obligations retained by the company, and the
settlement of employee benefit plan obligations provided that the settlement is directly related to
the disposal transaction.
In 2024 discontinued operations consist primarily of the Domestic Appliances business. In 2023 and
2022 discontinued operations consist of certain costs related to other divestments, which were
previously reported as discontinued operations.
Philips Group
Discontinued operations, net of income taxes in millions of EUR
2022
2023
2024
Domestic Appliances
3
(2)
140
Other
10
(7)
2
Discontinued operations, net of income taxes
13
(10)
142
Discontinued operations: Domestic Appliances
In 2024, Discontinued operations related to the Domestic Appliances business included a tax
benefit of EUR 140 million relating to tax audit settlements of prior years. Discontinued operations
related to the Domestic Appliances business resulted in a net loss of EUR 2 million in 2023 and net
gain of EUR 3 million in 2022.
Discontinued operations: Other
Certain costs related to other divestments, which were previously reported as discontinued
operations, resulted in a net gain of EUR 2 million in 2024, a net loss of EUR 7 million in 2023 and
a net gain of EUR 10 million in 2022 .
Discontinued operations cash flows
The following table presents the net cash provided by (used for) discontinued operations reported
in the Consolidated statements of cash flows.
Philips Group
Net cash provided by (used for) discontinued operations in millions of EUR
2022
2023
2024
Net cash provided by (used for) operating activities
(27)
123
(13)
Net cash provided by (used for) investing activities
15
Net cash provided by (used for) discontinued
operations
(12)
123
(13)
In 2024, net cash used for discontinued operations was EUR 13 million and consisted primarily of
cash flows related to the tax claims from the previously divested business.
In 2023 , net cash provided by discontinued operations was EUR 123 million and consisted primarily
of a refund received of advance tax payments related to a previously divested business.
In 2022, net cash used for discontinued operations was EUR 12 million and consisted primarily of
cash flows related to the tax claims from the previously divested business.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-561": { "value": "
3Discontinued operations and assets classified as held for sale
Accounting policies
Discontinued operations
A discontinued operation is a component of the company that has either been disposed of or is
classified as held-for-sale and represents a separate major line of business or geographical area of
operations or is a part of a single coordinated plan to dispose of a separate major line of business
or geographical area of operations. Any gain or loss from disposal, together with the results of
these operations until the date of disposal, are reported separately as discontinued operations in
the Consolidated statements of income.
The financial information of discontinued operations is excluded from the respective captions in the
Consolidated financial statements and related notes for all periods presented. Comparatives are re-
presented for presentation of discontinued operations in the Consolidated statements of income
and Consolidated statements of cash flows.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-566": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
In 2024, financial income and expenses net decreased by EUR 32 million year-on-year, mainly due
to higher interest income on cash and cash equivalents and net foreign exchange losses in 2023 ,
partly offset by higher interest expenses and provision-related accretion costs. Net interest expense
in 2024 was EUR 22 million lower than in 2023 , mainly due to an increased cash position which
was invested in short-term interest-bearing assets, partly offset by higher interest expenses. Interest
expenses increased as a result of debt refinancing in 2024 and higher finance charges on lease
contracts.
In 2023 , financial income and expenses, net increased by EUR 114 million year-on-year, mainly due
to fair value losses and net foreign exchange losses in 2023 , compared with gains in 2022. The fair
value losses mainly relate to Power Purchase Agreements for renewable energy, limited-life funds
(mainly Gilde Healthcare) and other investments recognized at fair value through profit and loss.
Furthermore, provision-related accretion expenses and net interest expense were higher in 2023
compared with 2022. Net interest expense in 2023 was EUR 21 million higher than in 2022, mainly
due the issuance of new debt in 2022 and 2023 and the impact of increasing interest rates.
13Other financial assets
Accounting policies
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset\u2019s
contractual cash flow characteristics and the company\u2019s business model for managing them.
The company initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
\u2022 financial assets at amortized cost (debt instruments)
\u2022 financial assets at fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments)
\u2022 financial assets desi gnated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
\u2022 financial assets at fair value through profit or loss (debt instruments and equity instruments)
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
Accounting estimates and judgments
The determination of fair value is subject to estimates for investments that are not publicly traded.
Refer to Fair value of financial assets and liabilities .
Financial assets classified at amortized cost and at fair value through OCI are subject to impairment
assessment. The calculation of expected credit losses requires the company to apply significant
judgment and make estimates and assumptions that involve significant uncertainty at the time they
are made. Changes to these estimates and assumptions can result in significant changes to the
timing and amount of expected credit losses to be recognized.
Other current financial assets
In 2024 , Other current financial assets decreased from EUR 3 million to EUR 2 million (2023 :
decreased from EUR 11 million to EUR 3 million).
Other non-current financial assets
The company\u2019s investments in Other non-current financial assets mainly consist of investments in
common shares of companies in various industries and investments in limited life funds. The
changes during 2024 and 2023 were as follows:
Philips Group
Other non-current financial assets in millions of EUR
Non-current
financial
assets at
FVTP&L
Non-current
financial
assets at
FVTOCI
Non-current
financial
assets at
Amortized
cost
Total
Balance as of January 1, 2024
284
258
77
619
Changes:
Acquisitions/additions
76
6
65
147
Sales/redemptions/reductions
(31)
(14)
(11)
(56)
Value adjustment through OCI
(23)
(23)
Value adjustment through P&L
(25)
1
(23)
Translation differences and other
8
12
(4)
16
Reclassification
(25)
4
(27)
(47)
Balance as of December 31, 2024
288
242
102
631
Philips Group
Other non-current financial assets in millions of EUR
Non-current
financial
assets at
FVTP&L
Non-current
financial
assets at
FVTOCI
Non-current
financial
assets at
Amortized
cost
Total
Balance as of January 1, 2023
322
284
54
660
Changes:
Acquisitions/additions
71
14
20
105
Sales/redemptions/reductions
(33)
(14)
(11)
(58)
Value adjustment through OCI
(17)
-
(17)
Value adjustment through P&L
(39)
-
-
(39)
Translation differences and other
(29)
(14)
(1)
(44)
Reclassifications
(8)
5
15
12
Balance as of December 31, 2023
284
258
77
619
As of December\u00a031, 2024, equity investments of EUR 222 million (2023 : EUR 231 million) are
accounted under the FVTOCI category based on the company's election at initial recognition mainly
because such investments are neither held for trading purposes nor primarily for their increase in
value and the elected presentation is considered to reflect the nature and purpose of the
investment.
16Receivables
Accounting policies
Receivables are initially measured at fair value and are subsequently measured at amortized cost if
held within a business model with the objective to collect the contractual cash flows or at fair value
through OCI if held within a business model with the objective of both holding to collect
contractual cash flows and selling. Receivables are measured less any impairment losses.
Receivables are derecognized when the company has transferred substantially all risks and rewards,
which includes transactions in which the company enters into factoring transactions, or if the
company does not retain control over the receivables.
Accounting estimates
Receivables are subject to impairment assessment, which involves estimating expected credit losses.
Refer to Other financial assets for accounting policies on impairment of financial assets.
Non-current receivables
Non-current receivables are associated mainly with customer financing in the Diagnosis &
Treatment Businesses amounting (net of allowance) to EUR 81 million (2023 : EUR 102 million) ,
i nsurance receivables in the US amounting to EUR 33 million (2023: EUR 33 million ) and income tax
receivables amounting to EUR 36 million ( 2023: EUR 8 million).
Philips has leasing activities where it acts as lessor. In such arrangements, Philips provides the
customer with a right to use of medical equipment in exchange for a series of payments. Residual
values of assets under lease form an insignificant part of the carrying amount of those assets.
Residual values are influenced by asset market prices and are therefore subject to management
estimation. Residual values are at least reassessed on an annual basis, or more often when
necessary. Reassessments are based on a combination of realization of assets sold, expert
knowledge and judgment of local markets. In order to reduce residual value risk exposures there
may be residual value guarantees or purchase options embedded in the customer contract. Credit
risk for lease receivables is reviewed regularly and mitigated, for example, by retaining a security
interest in the leased asset.
Current receivables
Current receivables of EUR 3,672 million ( 2023 : EUR 3,733 million ) as of December\u00a031, 2024 ,
included trade accounts receivable (net of allowance) of EUR 3,513 million (2023: EUR 3,546
million ), accounts receivable other of EUR 134 million (2023 : EUR 170 million), and accounts
receivable from investments in associates of EUR 25 million ( 2023: EUR 18 million) .
The trade accounts receivable, net, per segment are as follows:
Philips Group
Trade accounts receivable, net in millions of EUR
2023
2024
Diagnosis & Treatment
1,688
1,687
Connected Care
1,105
1,064
Personal Health
576
575
Other
177
187
Trade accounts receivable, net
3,546
3,513
The aging analysis of trade accounts receivable, net, representing current and overdue but not fully
impaired receivables, is as follows:
Philips Group
Aging analysis in millions of EUR
2023
2024
Current
3,132
3,154
Overdue 1-30 days
117
141
Overdue 31-180 days
234
194
Overdue more than 180 days
63
24
Trade accounts receivable, net
3,546
3,513
The changes in the allowance for doubtful accounts receivable are as follows::
Philips Group
Allowance for accounts receivable in millions of EUR
2023
2024
Balance as of January 1
226
216
Additions charged to expense
27
112
Deductions from allowance\u00b9
(26)
(88)
Transfer to assets held for sale
(1)
-
Other movements
(10)
5
Balance as of December 31
216
245
1Write-offs for which an allowance was previously provided.
The allowance for doubtful accounts receivable has been primarily established for receivables that
are past due. Additions and deductions in the allowance include the impact of changes in estimates
for certain Connected Care receivables. The allowance presented also includes the allowance for
Non-current customer finance receivables of EUR 8 million ( 2023: EUR 8 million). Other movements
in the current period are mainly related to foreign currency valuations.
Included in the above balances as of December\u00a031, 2024, are allowances for individually impaired
receivables of EUR 239 million (2023: EUR 210 million).
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion . In 2024, Philips issued EUR 700 million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and other floating rate debt . As of December\u00a031, 2024 , Philips
has EUR 3.7 billion (2023: EUR 3.3 billion) fixed rate notes outstanding under the EMTN program.
The provisions applicable to all USD-denominated corporate bonds issued by the company in March
2008 and March 2012 (due 2038 and 2042) contain a \u2018Change of Control Triggering Event\u2019. 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 since 2018 contain a similar
provision (\u2018Change of Control Put Event\u2019). Upon the occurrence of such an event, the company
might be required to redeem or purchase any of such bonds at their principal amount together
with interest accrued. Philips\u2019 outstanding long-term debt does not contain financial covenants.
As of December 31, 2024, debt includes forward contracts of EUR 142 million (nominal value)
relating to the repurchase of shares to cover long-term incentive and employee stock purchase
plans, with maturity dates in the fourth quarter of 2025 (EUR 77 million ) and the fourth quarter of
2026 (EUR 65 million).
In 2023, Philips issued EUR 500 million of fixed rate notes under the company\u2019s EMTN program
that mature in 2031 and used the proceeds for general corporate purposes, including the
repayment of EUR 500 million that was outstanding under the credit facility entered into in the
fourth quarter of 2022 . In 2023 , Philips entered into a total amount of EUR 138 million forward
contracts relating to the company\u2019s long-term incentive plans. These forwards partly matured in the
fourth quarter of 2024 (EUR 61 million ) with the remainder maturing in 2025 (EUR 77 million ). In
addition, a total of EUR 125 million forward contracts relating to the Long-Term Incentive and
employee stock purchase plans and EUR 481 million of forwards related to the share buyback
program announced in 2021 matured throughout 2023.
Long-term debt
The following tables present information about the long-term debt outstanding, its maturity and
average interest rates in 2024 and 2023.
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2024
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,408
131
1,276
122
1,154
12.3
6.3%
EUR bonds
4,917
4,917
2,639
2,278
4.7
2.3%
Forward contracts
148
82
66
66
1.3
1.2%
Lease liabilities
1,073
219
854
506
347
3.8
3.7%
Bank borrowings
1
1
1
1
1.5
1.0%
Other long-term debt
-
-
-
-
-
3.2
1.2%
Long-term debt
7,546
434
7,113
3,333
3,779
5.9
3.2%
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2023
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,325
1,325
240
1,085
13.3
6.3%
EUR bonds
4,569
4,569
2,335
2,234
5.1
2.0%
Forward contracts
396
321
76
76
0.8
1.4%
Lease liabilities
1,074
211
864
505
358
3.9
3.1%
Bank borrowings
203
1
201
201
1.2
4.2%
Other long-term debt
-
-
-
-
-
7.4
1.2%
Long-term debt
7,568
532
7,035
3,357
3,678
6.0
2.9%
Bonds
The following table presents the amount outstanding and effective rate of bonds.
Philips Group
Unsecured Bonds in millions of EUR unless otherwise stated
Effective rate
2023
2024
Unsecured EUR Bonds
Due 30/03/2025; 1 3/8%
1.509%
346
Due 22/05/2026; 1/2%
0.608%
750
750
Due 05/05/2027; 1 7/8%
2.049%
750
750
Due 02/05/2028; 1 3/8%
1.523%
500
500
Due 05/11/2029; 2 1/8%
2.441%
650
650
Due 30/03/2030; 2%
2.128%
500
500
Due 08/09/2031; 4 2/8%
4.33%
500
500
Due 31/05/2032; 3 3/4%
4.043%
700
Due 05/05/2033; 2 5/8%
2.71%
600
600
Unsecured USD Bonds
Due 15/05/2025; 7 3/4%
7.429%
49
52
Due 15/05/2025; 7 1/8%
6.794%
75
79
Due 01/06/2026; 7 1/5%
6.885%
114
121
Due 03/11/2038; 6 7/8%
7.21%
657
697
Due 15/03/2042; 5%
5.273%
452
480
Adjustments\u00b9
(47)
(55)
Unsecured Bonds
5,894
6,324
1Adjustments related to both EUR and USD bonds and concern bond discounts, premium and
transaction costs.
Short-term debt
Philips Group
Short-term debt in millions of EUR
2023
2024
Short-term bank borrowings
122
92
Current portion of long-term debt
532
434
Short-term debt
654
526
During 2024, the weighted average interest rate on the bank borrowings was 9.3% (2023: 8.6%).
This increase was mainly driven by higher interest rate environments across various countries
globally.
19Provisions
Accounting policies
A provision is a liability of uncertain timing or amount. Provisions are recognized if, as a result of a
past event, the company has a present legal or constructive obligation, it is probable that an
outflow of economic benefits will be required to settle the obligation and the amount can be
estimated reliably. Provisions are measured at the present value of the expenditures expected to be
required to settle the obligation using a pre-tax discount rate that reflects current market
assessments of the time value of money. The increase in the provision due to passage of time
(accretion) is recognized as interest expense.
Accounting estimates and judgments
By their nature, the recognition of provisions requires estimates and assumptions regarding the
timing and the amount of outflow of resources. The main estimates include:
\u2022 Product warranty provisions \u2013 the provisions for assurance-type product warranty reflect the
estimated costs of replacement and free-of-charge services that will be incurred by the company
with respect to products sold and include costs to execute quality remediation and related field
actions (including the Respironics field action). These require management to make estimates
and assumptions about items such as quantities and the portion of products to be remediated
through replacement, repair or (partial) refund.
\u2022 Environmental provisions \u2013 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. The impact of climate change is also
considered when assessing whether Philips has a present legal or constructive obligation,
particularly in relation to fines, penalties and commitments to reduce greenhouse gas emissions.
\u2022 Legal provisions \u2013 provisions for legal claims and investigations reflect the best estimate of the
outflow of resources, supported by internal and external legal counsel, when it is probable that
such outflow of resources will be required to settle an obligation.
\u2022 Contingent consideration provisions \u2013 the provision for contingent consideration reflects the
fair value of the expected payment to former shareholders of an acquired company for the
exchange of control if specified future events occur or conditions are met, such as the
achievement of certain regulatory milestones or the achievement of certain commercial
milestones. The provision for contingent consideration can change significantly due to changes
in the estimated achievement of milestones and changes in discount rates. Changes in fair value
of the contingent consideration liability are reflected in other business income (expenses).
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Additions
81
439
9
131
1,015
5
185
1,865
Utilizations
(76)
(507)
(15)
(127)
(477)
(9)
(124)
(1,336)
Releases
(5)
(15)
-
(26)
(28)
(3)
(35)
(113)
Accretion
5
38
3
(1)
45
Changes in discount rate
(7)
-
(8)
Translation differences and other
2
(24)
4
(1)
44
3
(8)
21
Total change
3
(107)
(5)
(23)
592
(2)
16
474
Current
522
20
77
1,066
61
229
1,977
Non-current
560
63
76
16
13
52
216
996
Balance as of December 31, 2024
560
585
96
94
1,079
113
446
2,972
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
\u00a0warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
653
20
134
74
23
112
1,018
Non-current
546
80
83
6
14
89
279
1,097
Balance as of December 31, 2022
546
733
104
140
89
113
390
2,115
Additions
112
553
18
263
644
24
223
1,836
Utilizations
(91)
(553)
(14)
(219)
(235)
(20)
(134)
(1,266)
Releases
(10)
(20)
(2)
(67)
(10)
(7)
(45)
(159)
Accretion
5
23
1
(3)
25
Acquisitions
6
6
Changes in discount rate
(6)
(6)
Translation differences and other
-
(22)
(3)
(2)
(23)
(2)
(1)
(53)
Total change
12
(42)
(2)
(24)
399
2
39
383
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Contingent consideration provisions
There is no material movement in 2024 and approximately EUR 21 million of the long-term
provision is expected to be utilized within the next three years, with the remainder after four years.
23Cash flow statement supplementary information
Accounting policies
Cash and cash equivalents
Cash and cash equivalents include all cash balances, certain money market funds and short-term
highly liquid investments with an original maturity of three months or less that are readily
convertible into known amounts of cash. Bank overdrafts are included in borrowings in current
liabilities.
24Contingencies
Accounting policies
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.
Guarantees
The total fair value of guarantees recognized on the balance sheet amounts to EUR nil million for
both 2024 and 2023 . Remaining off-balance-sheet business related guarantees on behalf of third
parties and associates as of December\u00a031, 2024, amounted to EUR 343 million (December\u00a031,
2023 : EUR 2 million ). These mainly include bank guarantees secured for insurance companies to
cover product liability-related cash flows related to the Respironics recall.
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
Offsetting and master netting agreements
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when,
and only when, the company currently has a legally enforceable right to set-off the amounts and
the group intends either to settle them on a net basis or to realize the asset and settle the liability
simultaneously.
Accounting estimates and judgments
Determining the fair value of financial instruments requires the use of estimates according to the
method applied for each type of financial asset of liability. The estimated fair value of financial
instruments has been determined by the company using available market information and
appropriate valuation methods. The estimates presented are not necessarily indicative of the
amounts that will ultimately be realized by the company upon maturity or disposal. The use of
different market assumptions and/or estimation methods may have a material effect on the
estimated fair value amounts.
Specific valuation techniques used to value financial instruments include:
Level 1
Instruments included in level 1 are composed 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 (OCI). 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\u2019s 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.
The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or
on the basis of discounted cash flow analysis using market rates plus Philips\u2019 spread for the
particular tenors of the borrowing arrangement. Accrued interest is not included within the
carrying amount or estimated fair value of debt.
Level 3
If one or more of the significant inputs are not based on observable market data, such as third-
party pricing information without adjustments, the instrument is included in level 3.
The fair value of contingent consideration is dependent on the terms of the respective acquisition
agreement that may require Philips to pay additional consideration to former shareholders if
specified future events occur or conditions are met, such as the achievement of certain regulatory
milestones or the achievement of certain commercial milestones. The fair value of the contingent
consideration provision is generally determined using a probability-weighted and a risk-adjusted
approach to estimate the achievement of future regulatory and commercial milestones,
respectively. The discount rates used in the risk adjusted approach reflect the inherent risk related
to achieving the commercial milestones. Both regulatory and commercial milestones are discounted
for the time value of money at risk-free rates. The fair value measurement is based on
management\u2019s estimates and assumptions and hence classified as Level 3 in the fair value
hierarchy.
The following tables show the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets
and financial liabilities not carried at fair value is not included if the carrying amount is a reasonable
approximation of fair value.
Philips Group
Fair value of financial assets and liabilities in millions of EUR\u00a0
2023
2024
Carrying amount
Estimated fair
value\u00b9
Carrying amount
Estimated fair
value\u00b9
Level 1
Level 2
Level 3
December 31
Financial assets
Carried at fair value:
Debt instruments
226
226
231
231
231
Equity instruments
2
2
3
3
2
Other financial assets
56
56
54
54
53
-
Financial assets carried at FVTP&L
284
284
288
288
53
234
Debt instruments
27
27
21
21
20
Equity instruments
231
231
222
222
4
218
Current financial assets
3
3
2
2
2
Receivables - current
32
32
Receivables - non-current
Financial assets carried at FVTOCI
293
293
244
244
4
20
220
Derivative financial instruments
48
48
77
77
72
6
Financial assets carried at fair value
624
624
609
609
4
146
460
Carried at (amortized) cost:
Cash and cash equivalents
1,869
2,401
Loans and receivables:
Current loans receivables
-
-
Other non-current loans and receivables
77
102
Receivables - current
3,701
3,672
Receivables - non-current
193
208
Financial assets carried at (amortized) cost
5,840
6,382
Total financial assets
6,465
6,992
Financial liabilities
Carried at fair value:
Contingent consideration
(115)
(115)
(113)
(113)
(113)
Financial liabilities carried at FVTP&L
(115)
(115)
(113)
(113)
(113)
Derivative financial instruments
(43)
(43)
(63)
(63)
(63)
Financial liabilities carried at fair value
(158)
(158)
(176)
(176)
(63)
(113)
Carried at (amortized) cost:
Accounts payable
(1,917)
(1,830)
Interest accrual
(76)
(83)
Debt (Corporate bonds and leases)
(6,969)
(6,798)
(7,397)
(7,363)
(6,290)
(1,073)
Debt (excluding corporate bonds and leases)
(721)
(241)
Financial liabilities carried at (amortized) cost
(9,682)
(9,551)
Total financial liabilities
(9,840)
(9,728)
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments
(including maturity and interest conditions) and therefore fair value information is not included in the table above.
The following table shows the reconciliation from the beginning balance to the end balance for
Level 3 fair value measurements.
Philips Group
Reconciliation of Level 3 fair value measurements in millions of EUR
2023
2024
Financial assets
Financial
liabilities
Financial assets
Financial
liabilities
Balance as of January 1
549
113
503
115
Acquisitions
6
Purchase
85
86
Sales
(56)
(48)
Utilizations
(20)
(9)
Recognized in profit and loss:
other business income
16
2
financial income and expenses\u00b9
(43)
1
(23)
3
Recognized in other comprehensive
income\u00b2
(40)
(2)
(8)
3
Receivables held to collect and sell
6
(32)
Reclassification
1
(18)
-
Balance as of December 31
503
115
460
113
1Refer to Financial income and expenses for details.\u00a0
2Includes translation differences
Offsetting and master netting agreements
Transactions in derivatives are subject to master netting and set-off agreements. In the case of
certain termination events, under the terms of the master agreement, Philips can terminate the
outstanding transactions and aggregate their positive and negative values to arrive at a single net
termination sum (or close-out amount). This contractual right is subject to the following:
\u2022 The right may be limited by local law if the counterparty is subject to bankruptcy proceedings.
\u2022 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
2023
2024
Derivatives
Gross amounts of recognized financial assets
48
72
Gross amounts of recognized financial liabilities offset in the balance sheet
Net amounts of financial assets presented in the balance sheet
48
72
Related amounts not offset in the balance sheet
Financial instruments
(34)
(45)
Net amount
13
27
Philips Group
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar
agreements in millions of EUR
2023
2024
Derivatives
Gross amounts of recognized financial liabilities
(43)
(63)
Gross amounts of recognized financial assets offset in the balance sheet
Net amounts of financial liabilities presented in the balance sheet
(43)
(63)
Related amounts not offset in the balance sheet
Financial instruments
34
45
Net amount
(9)
(18)
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to occur, the company continues to carry the derivative on the Consolidated
balance sheets at its fair value, and gains and losses that were accumulated in OCI are recognized
immediately in the same line item as they relate to in the Consolidated statements of income.
Foreign currency differences arising upon retranslation of financial instruments designated as a
hedge of a net investment in a foreign operation are recognized directly in the currency translation
differences reserve through OCI, to the extent that the hedge is effective. To the extent that the
hedge is ineffective, such differences are recognized in the Consolidated statements of income.
Accounting estimates and judgments
Financial assets are subject to impairment assessment, which involves estimating expected credit
losses. Refer to Other financial assets for accounting policies on impairment of financial assets.
Philips is exposed to several types of financial risks which are further analyzed below. Philips does
not purchase or hold derivative financial instruments for speculative purposes. Information
regarding financial instruments is included in Fair value of financial assets and liabilities.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities.
Liquidity risk for the group is monitored through the Treasury liquidity committee, which tracks the
development of the actual cash flow position for the group and uses input from a number of
sources in order to forecast the overall liquidity position on both short and longer term basis. Philips
invests surplus cash in short-term deposits with appropriate maturities and money market funds to
ensure sufficient liquidity is available to meet liabilities when due and in money market funds.
The rating of the company\u2019s debt by major rating agencies may improve or deteriorate. As a result,
Philips\u2019 future borrowing capacity may be influenced and its financing costs may fluctuate. Philips
has various sources to mitigate the liquidity risk for the group. As of December\u00a031, 2024 Philips had
EUR 2,401 million in cash and cash equivalents ( 2023 : EUR 1,869 million ), which includes short-
term deposits of EUR 1,946 million ( 2023 : EUR 1,399 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\u2019s operational or investment needs.
Philips faces cross-border foreign exchange controls and/or other legal restrictions in a few
countries that could limit its ability to make these balances available on short notice for general use
by the group.
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and have no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion. In 2024, Philips issued EUR 700\u00a0million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and floating rate debt. As of December\u00a031, 2024, Philips has
EUR 3.7 billion (2023: EUR 3.3 billion) fixed rates notes outstanding under the EMTN program. For
a description of Philips\u2019 credit facilities, refer to Debt.
In addition to cash and cash equivalents, as of December\u00a031, 2024, Philips also held EUR 4 million
(2023: EUR 14 million ) of listed (level 1) equity investments at fair value (classified as other non-
current financial assets).
The following table presents a summary of the Group\u2019s fixed contractual cash obligations and
commitments as of December\u00a031, 2024. These amounts are an estimate of future payments which
could change as a result of various factors such as a change in interest rates, foreign exchange, and
contractual provisions, as well as changes in business strategy and needs. Therefore, the actual
payments made in future periods may vary from those presented in the following table:
Philips Group
Contractual cash obligations1 2 in millions of EUR
Payments due by period
Total
Less than 1
year
1-3 years
3-5 years
After 5
years
Long-term debt
7,168
2,006
1,338
3,824
Short-term debt
525
525
Interest on debt
1,792
197
368
325
902
Derivative liabilities
72
64
8
Purchase obligations\u00b3
1,161
300
307
210
344
Trade and other payables
1,830
1,830
Contractual cash obligations
12,548
2,916
2,689
1,873
5,070
1Amounts in this table are undiscounted
2This 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.
3Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding
for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased,
fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not
include open purchase orders or other commitments which do not specify all significant terms.
Philips has contracts with investment funds where it committed itself to make, under certain
conditions, capital contributions to these funds of an aggregated remaining amount of EUR 130
million (2023: EUR 153 million). As of December\u00a031, 2024, capital contributions already made to
these investment funds are recorded as non-current financial assets.
Philips offers voluntary supply chain finance programs for certain US Dollar, Euro and Swedish
Krona third parties which provide participating suppliers the opportunity to factor their trade
receivables at the sole discretion of both the suppliers and the third parties. Philips continues to
recognize these liabilities as trade payables and settles them accordingly on the invoice maturity
date based on the terms and conditions of those arrangements. As of December 31, 2024,
approximately EUR 97 million (2023: EUR 114 million ) of the Philips account payable were
transferred under these arrangements.
Philips Group
Carrying amount of financial liabilities1 in millions of EUR
2024
Presented in accounts payables:
97
- of which suppliers have received payment from finance provider
85
Philips Group
Range of payment due dates
2024
Liabilities that are part of the arrangements
30 -135 days
Comparable trade payables that are not part of the arrangements
0 -135 days
1 There were no material business combinations or foreign exchange differences during the year.
With respect to the Respironics field action, please refer to Contingencies. The management
continues to monitor the risks associated with such potential claims and its impact on liquidity
position, if any.
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\u2019 financial
results. Philips is exposed to currency risk in the following areas:
\u2022 transaction exposures, related to anticipated sales and purchases and on-balance-sheet
receivables/payables resulting from such transactions
\u2022 translation exposure of foreign-currency intercompany and external debt and deposits
\u2022 translation exposure of net income in foreign entities
\u2022 translation exposure of foreign-currency-denominated equity invested in consolidated
companies
\u2022 translation exposure to equity interests in non-functional-currency investments in associates and
other non-current financial assets
It is Philips\u2019 policy to reduce the potential year-on-year volatility caused by foreign-currency
movements on its net earnings by hedging the anticipated net exposure of foreign currencies
resulting from foreign-currency sales and purchases. In general, net anticipated exposures for the
Group are hedged during a period of 15 months in layers of 20% up to a maximum hedge of
80%. Philips\u2019 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\u2019 most significant currency exposures
consolidated as of December\u00a031, 2024:
Philips Group
Estimated transaction exposure and related hedges in millions of EUR
Sales/Receivables
Purchases/Payable
Exposure
Hedges
Exposure
Hedges
Balance as of December 31, 2024
Exposure currency
USD
2,071
(1,669)
(1,163)
1,049
JPY
527
(300)
(7)
7
GBP
259
(161)
(15)
14
CNY
442
(312)
(209)
209
PLN
95
(62)
(1)
1
CAD
236
(134)
AUD
177
(104)
CHF
144
(85)
KRW
126
(83)
ILS
12
(8)
(204)
121
EUR
160
(158)
(121)
121
Others
169
(113)
(23)
23
Total 2024
4,420
(3,188)
(1,743)
1,543
Total 2023
4,287
(3,185)
(1,346)
1,173
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\u00a031, 2024, a gain of EUR 1 million was deferred in equity as a result of these hedges
(2023: EUR 6 million gain). The result deferred in equity will be released to earnings mostly during
2025 at the time when the related hedged transactions affect the income statement. During 2024,
nil (2023 nil) 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. During 2024, a gain of EUR 29 million (2023 EUR 19 million
gain) included in the cash flow hedges reserve in equity pertaining to changes in fair value of
foreign exchange forward and option contracts was released to income statement.
The total net fair value of hedges related to transaction exposure as of December\u00a031, 2024, was an
unrealized loss of EUR 2 million. The estimated impact of a 10% increase of value of the EUR is
estimated to be EUR 122 million. The following table contains an overview of the instantaneous
10% increase in the value of EUR against major currencies.
Philips Group
Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR
2023
2024
USD
64
63
JPY
15
13
GBP
16
13
CHF
5
7
PLN
1
1
RUB
-
1
The EUR 122 million increase includes a gain of EUR 34 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 88 million would be recognized in equity to
the extent that the cash flow hedges were effective.
Foreign exchange exposure also arises as a result of inter-company loans and deposits. Where the
company enters into such arrangements, the financing is generally provided in the functional
currency of the subsidiary entity. The currency of the company\u2019s external funding and liquid assets
is matched with the required financing of subsidiaries, either directly through external foreign
currency loans and deposits, or synthetically by using foreign exchange derivatives, including cross
currency interest rate swaps and foreign exchange forward contracts. In certain cases where group
companies may also have external foreign currency debt or liquid assets, these exposures are also
hedged through the use of foreign exchange derivatives. Changes in the fair value of hedges
related to this exposure are recognized within financial income and expenses in the statements of
income. When such loans would be considered part of the net investment in the subsidiary, net
investment hedging would be applied.
Translation exposure of foreign-currency equity invested in consolidated entities is generally not
hedged. If a hedge is entered into, it is accounted for as a net investment hedge. Net current-
period change, before tax, of the currency translation reserve of positive EUR 768 million mainly
relates to the development of the USD versus the EUR. As of December\u00a031, 2024, a weakening of
USD by 10% versus the EUR would result in a decrease in the currency translation reserve in equity
of approximately EUR 1,275 million, while a strengthening of USD by 10% versus the EUR would
result in an increase in the currency translation reserve in equity of approximately EUR 1,558
million. Refer to the country risk paragraph for countries with significant foreign currency
denominated equity invested.
As of December\u00a031, 2024, external bond funding for a nominal value of USD 1,466 million (liability
at book value: EUR 1,408 million) was designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2024, no ineffectiveness was
recognized in the income statement on net investment hedges arising from counterparty and own
credit risk.
As of December\u00a031, 2024, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 106 million in the value of the derivatives, including a
EUR 50 million decrease related to the USD.
As of December\u00a031, 2023, external bond funding for a nominal value of USD 1,474 million (liability
at book value: EUR 1,325 million) were designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2023 a total loss of EUR 2 million
was recognized in the income statement as ineffectiveness on net investment hedges, arising from
counterparty and own credit risk.
As of December\u00a031, 2023, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 52 million in the value of the derivatives, including a
EUR 11 million increase related to the USD.
Generally Philips does not hedge the foreign exchange exposure arising from equity interests in
non-functional-currency investments in associates and other non-current financial assets.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. As of December\u00a031, 2024, Philips had
outstanding debt of EUR 7,639 million (2023: EUR 7,689 million), which constitutes an inherent
interest rate risk with potential negative impact on financial results. As of December\u00a031, 2024,
Philips held EUR 2,401 million in cash and cash equivalents (2023: EUR 1,869 million), and had total
long-term debt of EUR 7,113 million (2023: EUR 7,035 million) and total short-term debt of EUR
526 million (2023: EUR 654 million). As of December\u00a031, 2024, Philips had a ratio of fixed-rate
long-term debt to total outstanding debt of approximately 93% compared to 89% one year
earlier. Philips debt has a long maturity profile with an average tenor of long-term debt of 5.9 years
with maturities up to 2042.
The following table provides the impact of a 1% increase/decrease of interest rates on the fair
value of the debt and the annualized net interest expenses.
Philips Group
Interest rate sensitivity in millions of EUR
2023
2024
Impact 1% interest rate increase on fair value of fixed-rate long-term debt\u00b9 \u00b2
(283)
(304)
Impact 1% interest rate decrease on fair value of fixed-rate long-term debt\u00b9 \u00b2
284
304
Impact 1% interest rate increase on annualized net interest expense\u00b3
15
23
1The sensitivity analysis conducted shows that if long-term interest rates were to increase/decrease
instantaneously by 1% from their level of December\u00a031, 2024, with all other variables (including foreign
exchange rates) held constant.
2Fixed-rate long-term debt is excluding forward contracts.
3The impact is based on the outstanding net floating-rate position as of December\u00a031, 2024.
Equity price risk
Equity price risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in equity prices.
Philips is a shareholder in some publicly listed companies and as a result is exposed to potential
financial loss through movements in their share prices. The aggregate equity price exposure in such
financial assets amounted to approximately EUR 4 million as of December\u00a031, 2024 (2023: EUR 14
million). Philips does not hold derivatives in the above-mentioned listed companies. Philips also has
shareholdings in several privately-owned companies amounting to EUR 220 million, mainly
consisting of minority stakes in companies in various industries. As a result, Philips is exposed to
potential value adjustments.
Commodity price risk
Commodity price risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in commodity prices.
Philips is a purchaser of certain base metals, precious metals and energy. Philips may hedge certain
commodity price risks using derivative instruments to minimize significant, unanticipated earnings
fluctuations caused by commodity price volatility. As of December\u00a031, 2024 Philips had financial
commodity derivatives outstanding to the value of EUR 6 million (2023: nil).
Credit risk
Credit risk represents the loss that would be recognized at the reporting date, if counterparties
failed completely to perform their payment obligations as contracted. Credit risk is present within
Philips trade receivables and contract assets. To have better insights into the credit exposures,
Philips performs ongoing evaluations of the financial and non-financial condition of its customers
and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is
determined not to be sufficient to grant the credit limit required, there are a number of mitigation
tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-
payments and pledges on assets.
Philips invests available cash and cash equivalents with various financial institutions and is exposed
to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-
performance by financial institutions with respect to financial derivative instruments. Philips actively
manages concentration risk and on a daily basis measures the potential loss under certain stress
scenarios, should a financial institution default. These worst-case scenario losses are monitored and
limited by the company.
The company does not enter into any financial derivative instruments to protect against default by
financial institutions. However, where possible the company requires all financial institutions with
which it deals in derivative transactions to complete legally enforceable netting agreements under
an International Swap Dealers Association master agreement or otherwise prior to trading, and
whenever possible, to have a strong credit rating. Philips also regularly monitors the development
of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial
transactions are concluded with financial institutions with strong credit ratings or with governments
or government-backed institutions.
The following table shows the number of financial institutions with credit rating A- and above with
which Philips has cash at hand and short-term deposits above EUR 10 million as of December\u00a031,
2024.
Philips Group
Credit risk with number of counterparties for deposits above EUR 10 million
10-100 million
100-500 million
500 million and
above
AAA rated bank counterparties
2
AA- rated bank counterparties
1
A+ rated bank counterparties
1
4
A rated bank counterparties
2
2
A- rated bank counterparties
2
2
Total
6
10
For an overview of the overall maximum credit exposure related to debt instruments, derivatives
and loans and receivables, refer to Fair value of financial assets and liabilities.
Country risk
Country risk is the risk that political, legal, or economic developments in a single country could
adversely impact performance. The country risk per country is defined as the sum of the equity of
all subsidiaries and associated companies in country cross-border transactions, such as
intercompany loans, accounts receivable from third parties and intercompany accounts receivable.
The country risk is monitored on a regular basis.
As of December\u00a031, 2024, the company had country risk exposure of EUR 13.6 billion in the United
States, EUR 2.3 billion in the Netherlands, EUR 872 million in China (including Hong Kong). Other
countries higher than EUR 500 million are United Kingdom EUR 787 million, Japan EUR 635 million
and Germany EUR 625 million. Other countries with significant exposure are: Israel EUR 301
million, Singapore EUR 221 million, and India EUR 226 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 insured for a broad range of losses by global insurance policies in the areas of property
damage/business interruption, general and product liability, transport, directors\u2019 and officers\u2019
liability, employment practice liability, crime and cybersecurity. The counterparty risk related to the
insurance companies participating in the above-mentioned global insurance policies is actively
managed. As a rule, Philips only selects insurance companies with a financial strength of at least A-.
Throughout the year the counterparty risk is monitored on a regular basis.
To lower exposures and to avoid potential losses, Philips has a global Risk Engineering program in
place. The main focus of this program is on property damage and business interruption risks
including company interdependencies. Regular on-site assessments take place at Philips locations
and business-critical suppliers by risk engineers of the insurer in order to provide an accurate
assessment of the potential loss and its impact. The results of these assessments are shared across
the company\u2019s 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 million to EUR 10 million per
occurrence, and this variance is designed to differentiate between the existing risk categories within
Philips. Above a first layer of working deductibles, Philips operates its own re-insurance captive,
which during 2024 retained EUR 25 million per claim and EUR 50 million in the annual aggregate
for general, product, professional liability, and marine cargo claims and EUR 15 million aggregate
for cyber.
New contracts were signed effective December\u00a031, 2024, for the coming year, whereby the re-
insurance captive retention remained the same.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-565": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
Accounting estimates and judgments
Intangible assets acquired in a business acquisition and the financial liability related to non-
controlling interest are measured at fair value at the date of the acquisition.
To determine the fair value of intangible assets at the acquisition date, estimates and assumptions
are required. The valuation of the identifiable intangible assets involves estimates of expected sales,
earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty
rate and growth rates.
Estimates are also applied when determining the fair value of legal cases and tax positions in the
acquired entity. The fair value is based on estimates of the likelihood, the expected timing and the
amount of the potential cash outflow. Provisions for legal cases and non-income tax positions are
recognized at fair value even if it is not probable that an outflow will be required to settle the
obligation. After initial recognition and until the liability is settled, cancelled or expired, the liability
is measured at the higher of the amount that would be recognized in accordance with IAS 37
'Provisions, contingent liabilities and contingent assets' and the initial liability amount. For income
tax positions, the company applies IAS 12 'Income Taxes', which requires recognition of provisions
only when the likelihood of cash outflow is considered probable.
2024
Acquisitions
Philips did not make any acquisitions in 2024.
2023
Acquisitions
On May 5, 2023, Philips completed one acquisition within the Ultrasound Business Unit to
accelerate the growth of its Diagnosis & Treatment segment. The total equity purchase price and
the settlement of debt, net of acquired cash, involved an amount of EUR 53 million . Including final
purchase price adjustments processed in the course of 2024, the company recognized a contingent
consideration of EUR 6 million at fair value, recognized as a Long-term provision, Goodwill of EUR
24 million, Other intangible assets of EUR 40 million and deferred tax asset and liability of EUR 5
million and EUR 2 million , respectively.
From the acquisition date through December 31, 2023, the contributions to sales to third parties
and net income of the acquiree were not material. The sales and net income would not differ
materially if the acquisition date had been January 1, 2023. Acquisition-related costs were
recognized in General and administrative expenses and were not material.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-564": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
13Other financial assets
Accounting policies
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset\u2019s
contractual cash flow characteristics and the company\u2019s business model for managing them.
The company initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
\u2022 financial assets at amortized cost (debt instruments)
\u2022 financial assets at fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments)
\u2022 financial assets desi gnated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
\u2022 financial assets at fair value through profit or loss (debt instruments and equity instruments)
Accounting estimates and judgments
The determination of fair value is subject to estimates for investments that are not publicly traded.
Refer to Fair value of financial assets and liabilities .
Other current financial assets
In 2024 , Other current financial assets decreased from EUR 3 million to EUR 2 million (2023 :
decreased from EUR 11 million to EUR 3 million).
Other non-current financial assets
The company\u2019s investments in Other non-current financial assets mainly consist of investments in
common shares of companies in various industries and investments in limited life funds. The
changes during 2024 and 2023 were as follows:
Philips Group
Other non-current financial assets in millions of EUR
Non-current
financial
assets at
FVTP&L
Non-current
financial
assets at
FVTOCI
Non-current
financial
assets at
Amortized
cost
Total
Balance as of January 1, 2024
284
258
77
619
Changes:
Acquisitions/additions
76
6
65
147
Sales/redemptions/reductions
(31)
(14)
(11)
(56)
Value adjustment through OCI
(23)
(23)
Value adjustment through P&L
(25)
1
(23)
Translation differences and other
8
12
(4)
16
Reclassification
(25)
4
(27)
(47)
Balance as of December 31, 2024
288
242
102
631
Philips Group
Other non-current financial assets in millions of EUR
Non-current
financial
assets at
FVTP&L
Non-current
financial
assets at
FVTOCI
Non-current
financial
assets at
Amortized
cost
Total
Balance as of January 1, 2023
322
284
54
660
Changes:
Acquisitions/additions
71
14
20
105
Sales/redemptions/reductions
(33)
(14)
(11)
(58)
Value adjustment through OCI
(17)
-
(17)
Value adjustment through P&L
(39)
-
-
(39)
Translation differences and other
(29)
(14)
(1)
(44)
Reclassifications
(8)
5
15
12
Balance as of December 31, 2023
284
258
77
619
19Provisions
Accounting policies
A provision is a liability of uncertain timing or amount. Provisions are recognized if, as a result of a
past event, the company has a present legal or constructive obligation, it is probable that an
outflow of economic benefits will be required to settle the obligation and the amount can be
estimated reliably. Provisions are measured at the present value of the expenditures expected to be
required to settle the obligation using a pre-tax discount rate that reflects current market
assessments of the time value of money. The increase in the provision due to passage of time
(accretion) is recognized as interest expense.
Accounting estimates and judgments
By their nature, the recognition of provisions requires estimates and assumptions regarding the
timing and the amount of outflow of resources. The main estimates include:
\u2022 Product warranty provisions \u2013 the provisions for assurance-type product warranty reflect the
estimated costs of replacement and free-of-charge services that will be incurred by the company
with respect to products sold and include costs to execute quality remediation and related field
actions (including the Respironics field action). These require management to make estimates
and assumptions about items such as quantities and the portion of products to be remediated
through replacement, repair or (partial) refund.
\u2022 Environmental provisions \u2013 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. The impact of climate change is also
considered when assessing whether Philips has a present legal or constructive obligation,
particularly in relation to fines, penalties and commitments to reduce greenhouse gas emissions.
\u2022 Legal provisions \u2013 provisions for legal claims and investigations reflect the best estimate of the
outflow of resources, supported by internal and external legal counsel, when it is probable that
such outflow of resources will be required to settle an obligation.
\u2022 Contingent consideration provisions \u2013 the provision for contingent consideration reflects the
fair value of the expected payment to former shareholders of an acquired company for the
exchange of control if specified future events occur or conditions are met, such as the
achievement of certain regulatory milestones or the achievement of certain commercial
milestones. The provision for contingent consideration can change significantly due to changes
in the estimated achievement of milestones and changes in discount rates. Changes in fair value
of the contingent consideration liability are reflected in other business income (expenses).
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Additions
81
439
9
131
1,015
5
185
1,865
Utilizations
(76)
(507)
(15)
(127)
(477)
(9)
(124)
(1,336)
Releases
(5)
(15)
-
(26)
(28)
(3)
(35)
(113)
Accretion
5
38
3
(1)
45
Changes in discount rate
(7)
-
(8)
Translation differences and other
2
(24)
4
(1)
44
3
(8)
21
Total change
3
(107)
(5)
(23)
592
(2)
16
474
Current
522
20
77
1,066
61
229
1,977
Non-current
560
63
76
16
13
52
216
996
Balance as of December 31, 2024
560
585
96
94
1,079
113
446
2,972
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
\u00a0warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
653
20
134
74
23
112
1,018
Non-current
546
80
83
6
14
89
279
1,097
Balance as of December 31, 2022
546
733
104
140
89
113
390
2,115
Additions
112
553
18
263
644
24
223
1,836
Utilizations
(91)
(553)
(14)
(219)
(235)
(20)
(134)
(1,266)
Releases
(10)
(20)
(2)
(67)
(10)
(7)
(45)
(159)
Accretion
5
23
1
(3)
25
Acquisitions
6
6
Changes in discount rate
(6)
(6)
Translation differences and other
-
(22)
(3)
(2)
(23)
(2)
(1)
(53)
Total change
12
(42)
(2)
(24)
399
2
39
383
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Contingent consideration provisions
There is no material movement in 2024 and approximately EUR 21 million of the long-term
provision is expected to be utilized within the next three years, with the remainder after four years.
28Fair value of financial assets and liabilities
The following tables show the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets
and financial liabilities not carried at fair value is not included if the carrying amount is a reasonable
approximation of fair value.
Philips Group
Fair value of financial assets and liabilities in millions of EUR\u00a0
2023
2024
Carrying amount
Estimated fair
value\u00b9
Carrying amount
Estimated fair
value\u00b9
Level 1
Level 2
Level 3
December 31
Financial assets
Carried at fair value:
Debt instruments
226
226
231
231
231
Equity instruments
2
2
3
3
2
Other financial assets
56
56
54
54
53
-
Financial assets carried at FVTP&L
284
284
288
288
53
234
Debt instruments
27
27
21
21
20
Equity instruments
231
231
222
222
4
218
Current financial assets
3
3
2
2
2
Receivables - current
32
32
Receivables - non-current
Financial assets carried at FVTOCI
293
293
244
244
4
20
220
Derivative financial instruments
48
48
77
77
72
6
Financial assets carried at fair value
624
624
609
609
4
146
460
Carried at (amortized) cost:
Cash and cash equivalents
1,869
2,401
Loans and receivables:
Current loans receivables
-
-
Other non-current loans and receivables
77
102
Receivables - current
3,701
3,672
Receivables - non-current
193
208
Financial assets carried at (amortized) cost
5,840
6,382
Total financial assets
6,465
6,992
Financial liabilities
Carried at fair value:
Contingent consideration
(115)
(115)
(113)
(113)
(113)
Financial liabilities carried at FVTP&L
(115)
(115)
(113)
(113)
(113)
Derivative financial instruments
(43)
(43)
(63)
(63)
(63)
Financial liabilities carried at fair value
(158)
(158)
(176)
(176)
(63)
(113)
Carried at (amortized) cost:
Accounts payable
(1,917)
(1,830)
Interest accrual
(76)
(83)
Debt (Corporate bonds and leases)
(6,969)
(6,798)
(7,397)
(7,363)
(6,290)
(1,073)
Debt (excluding corporate bonds and leases)
(721)
(241)
Financial liabilities carried at (amortized) cost
(9,682)
(9,551)
Total financial liabilities
(9,840)
(9,728)
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments
(including maturity and interest conditions) and therefore fair value information is not included in the table above.
Offsetting and master netting agreements
Transactions in derivatives are subject to master netting and set-off agreements. In the case of
certain termination events, under the terms of the master agreement, Philips can terminate the
outstanding transactions and aggregate their positive and negative values to arrive at a single net
termination sum (or close-out amount). This contractual right is subject to the following:
\u2022 The right may be limited by local law if the counterparty is subject to bankruptcy proceedings.
\u2022 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
2023
2024
Derivatives
Gross amounts of recognized financial assets
48
72
Gross amounts of recognized financial liabilities offset in the balance sheet
Net amounts of financial assets presented in the balance sheet
48
72
Related amounts not offset in the balance sheet
Financial instruments
(34)
(45)
Net amount
13
27
Philips Group
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar
agreements in millions of EUR
2023
2024
Derivatives
Gross amounts of recognized financial liabilities
(43)
(63)
Gross amounts of recognized financial assets offset in the balance sheet
Net amounts of financial liabilities presented in the balance sheet
(43)
(63)
Related amounts not offset in the balance sheet
Financial instruments
34
45
Net amount
(9)
(18)
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.
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\u2019 financial
results. Philips is exposed to currency risk in the following areas:
\u2022 transaction exposures, related to anticipated sales and purchases and on-balance-sheet
receivables/payables resulting from such transactions
\u2022 translation exposure of foreign-currency intercompany and external debt and deposits
\u2022 translation exposure of net income in foreign entities
\u2022 translation exposure of foreign-currency-denominated equity invested in consolidated
companies
\u2022 translation exposure to equity interests in non-functional-currency investments in associates and
other non-current financial assets
It is Philips\u2019 policy to reduce the potential year-on-year volatility caused by foreign-currency
movements on its net earnings by hedging the anticipated net exposure of foreign currencies
resulting from foreign-currency sales and purchases. In general, net anticipated exposures for the
Group are hedged during a period of 15 months in layers of 20% up to a maximum hedge of
80%. Philips\u2019 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\u2019 most significant currency exposures
consolidated as of December\u00a031, 2024:
Philips Group
Estimated transaction exposure and related hedges in millions of EUR
Sales/Receivables
Purchases/Payable
Exposure
Hedges
Exposure
Hedges
Balance as of December 31, 2024
Exposure currency
USD
2,071
(1,669)
(1,163)
1,049
JPY
527
(300)
(7)
7
GBP
259
(161)
(15)
14
CNY
442
(312)
(209)
209
PLN
95
(62)
(1)
1
CAD
236
(134)
AUD
177
(104)
CHF
144
(85)
KRW
126
(83)
ILS
12
(8)
(204)
121
EUR
160
(158)
(121)
121
Others
169
(113)
(23)
23
Total 2024
4,420
(3,188)
(1,743)
1,543
Total 2023
4,287
(3,185)
(1,346)
1,173
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\u00a031, 2024, a gain of EUR 1 million was deferred in equity as a result of these hedges
(2023: EUR 6 million gain). The result deferred in equity will be released to earnings mostly during
2025 at the time when the related hedged transactions affect the income statement. During 2024,
nil (2023 nil) 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. During 2024, a gain of EUR 29 million (2023 EUR 19 million
gain) included in the cash flow hedges reserve in equity pertaining to changes in fair value of
foreign exchange forward and option contracts was released to income statement.
The total net fair value of hedges related to transaction exposure as of December\u00a031, 2024, was an
unrealized loss of EUR 2 million. The estimated impact of a 10% increase of value of the EUR is
estimated to be EUR 122 million. The following table contains an overview of the instantaneous
10% increase in the value of EUR against major currencies.
Philips Group
Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR
2023
2024
USD
64
63
JPY
15
13
GBP
16
13
CHF
5
7
PLN
1
1
RUB
-
1
The EUR 122 million increase includes a gain of EUR 34 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 88 million would be recognized in equity to
the extent that the cash flow hedges were effective.
Foreign exchange exposure also arises as a result of inter-company loans and deposits. Where the
company enters into such arrangements, the financing is generally provided in the functional
currency of the subsidiary entity. The currency of the company\u2019s external funding and liquid assets
is matched with the required financing of subsidiaries, either directly through external foreign
currency loans and deposits, or synthetically by using foreign exchange derivatives, including cross
currency interest rate swaps and foreign exchange forward contracts. In certain cases where group
companies may also have external foreign currency debt or liquid assets, these exposures are also
hedged through the use of foreign exchange derivatives. Changes in the fair value of hedges
related to this exposure are recognized within financial income and expenses in the statements of
income. When such loans would be considered part of the net investment in the subsidiary, net
investment hedging would be applied.
Translation exposure of foreign-currency equity invested in consolidated entities is generally not
hedged. If a hedge is entered into, it is accounted for as a net investment hedge. Net current-
period change, before tax, of the currency translation reserve of positive EUR 768 million mainly
relates to the development of the USD versus the EUR. As of December\u00a031, 2024, a weakening of
USD by 10% versus the EUR would result in a decrease in the currency translation reserve in equity
of approximately EUR 1,275 million, while a strengthening of USD by 10% versus the EUR would
result in an increase in the currency translation reserve in equity of approximately EUR 1,558
million. Refer to the country risk paragraph for countries with significant foreign currency
denominated equity invested.
As of December\u00a031, 2024, external bond funding for a nominal value of USD 1,466 million (liability
at book value: EUR 1,408 million) was designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2024, no ineffectiveness was
recognized in the income statement on net investment hedges arising from counterparty and own
credit risk.
As of December\u00a031, 2024, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 106 million in the value of the derivatives, including a
EUR 50 million decrease related to the USD.
As of December\u00a031, 2023, external bond funding for a nominal value of USD 1,474 million (liability
at book value: EUR 1,325 million) were designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2023 a total loss of EUR 2 million
was recognized in the income statement as ineffectiveness on net investment hedges, arising from
counterparty and own credit risk.
As of December\u00a031, 2023, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 52 million in the value of the derivatives, including a
EUR 11 million increase related to the USD.
Generally Philips does not hedge the foreign exchange exposure arising from equity interests in
non-functional-currency investments in associates and other non-current financial assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-562": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-563": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-572": { "value": "
4Acquisitions and divestments
Accounting estimates and judgments
Intangible assets acquired in a business acquisition and the financial liability related to non-
controlling interest are measured at fair value at the date of the acquisition.
To determine the fair value of intangible assets at the acquisition date, estimates and assumptions
are required. The valuation of the identifiable intangible assets involves estimates of expected sales,
earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty
rate and growth rates.
2024
Acquisitions
Philips did not make any acquisitions in 2024.
2023
Acquisitions
On May 5, 2023, Philips completed one acquisition within the Ultrasound Business Unit to
accelerate the growth of its Diagnosis & Treatment segment. The total equity purchase price and
the settlement of debt, net of acquired cash, involved an amount of EUR 53 million . Including final
purchase price adjustments processed in the course of 2024, the company recognized a contingent
consideration of EUR 6 million at fair value, recognized as a Long-term provision, Goodwill of EUR
24 million, Other intangible assets of EUR 40 million and deferred tax asset and liability of EUR 5
million and EUR 2 million , respectively.
6Income from operations
Impairment of goodwill
There were no goodwill impairment charges in 2024. In 2023, a goodwill charge of EUR 8 million
was recorded for the partial impairment of goodwill allocated to a business that was classified as
held-for-sale as of December\u00a031, 2023. For further information refer to Goodwill.
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for goodwill impairment testing
contain various judgments and estimations as described in the \u2018key assumptions\u2019 section.
The changes in 2023 and 2024 were as follows:
Philips Group
Goodwill in millions of EUR
2023
2024
Balance as of January 1
Cost
12,747
12,133
Impairments
(2,509)
(2,256)
Book value
10,238
9,876
Acquisitions\u00b9
24
Impairments
(8)
Divestments and transfers to assets classified as held for sale\u00b2
(8)
(22)
Translation differences and other
(370)
528
Total change
(362)
507
Balance as of December 31
Cost
12,133
12,777
Impairments
(2,256)
(2,394)
Book value
9,876
10,383
1Refer to Acquisitions and divestments
2 Refer to Discontinued operations and assets classified as held for sale
In 2024, goodwill increased by EUR 507 million , primarily as a result of translation differences.
Goodwill impairment testing
During 2024 , there were no goodwill impairments recorded.
Goodwill allocated to the Businesses (groups of cash-generating units) as of December\u00a031, 2024, is
presented in the following table:
Philips Group
Goodwill by business in millions of EUR
2023
2024
Monitoring
3,964
4,194
Image-Guided Therapy
3,044
3,216
Precision Diagnosis
1,363
1,440
Sleep & Respiratory Care
687
694
Personal Health
483
509
Enterprise Informatics
336
331
Book value
9,876
10,383
The carrying amount of each group of CGUs is compared to the recoverable amount of the group
of CGUs. Unless otherwise noted, the recoverable amount for each group of CGUs is based on
value-in-use calculations. Cash flow projections were determined using Philips management's
internal forecasts that cover an initial forecast period from 2025 to 2027. Projections were
extrapolated using the growth rates disclosed in the following table for an extrapolation period of 4
years (2028-2031), after which a terminal value was calculated per 2032. For the terminal value
calculation, growth rates were capped at a historical long-term average growth rate. The company
uses scenarios in the business forecasting process and the most reasonable and supportable
assumptions that represent management\u2019s best estimate are used as the basis for the value-in-use
calculations.
Key assumptions
Key assumptions used in the value-in-use calculations were compound sales growth rates, EBITA*
in the terminal value and the rates used for discounting the projected cash flows.
The compound sales growth rate is the annualized steady nominal growth rate over the forecast
period calculated with reference to the latest full year of actual sales as the base for the growth.
The compound sales growth rate used to calculate the terminal value is only applied to the first
year after the extrapolation period, after which no further growth is assumed for the terminal value
calculation.
The compound sales growth rates and EBITA* used to estimate cash flows are based on past
performance, external market growth assumptions and industry long-term growth averages.
EBITA* for each group of CGUs is expected to increase over the projection period as a result of
volume growth and cost efficiencies. By their nature, these assumptions involve risk and uncertainty
because they relate to future events and circumstances and there are many factors that could cause
actual results and developments to differ materially from the plans, goals and expectations set forth
in these assumptions.
The rates used for discounting the projected cash flows in goodwill impairment testing is based on
a weighted cost of capital (WACC), which in turn is based on business-specific inputs along with
other inputs as mentioned below. The WACC is based on post-tax cost of equity and cost of debt,
and is further calculated based on market data and inputs to accurately capture changes to the
time value of money, such as the risk-free interest rate, the beta factor and country risk premium.
In order to properly reflect the different risk-profiles of different businesses, a WACC is determined
for each business. As such, the beta factor is determined based on a selection of peer companies,
which can differ per business. Different businesses have different geographical footprints, resulting
in business-specific inputs for variables like country risk. Philips performs the value-in-use
calculations using post-tax cash flows and discount rate, the implicit pre-tax rate discount rate is
derived from an iterative calculation for disclosure purposes.
The values assigned to the key assumptions used for the value-in-use calculations were as follows:
Philips Group
Key assumptions\u00a02024
Compound sales growth rate
Initial forecast
period
Extrapolation
period
Used to
calculate
terminal value
Pre-tax
discount rates
Monitoring
5.3%
4.7%
2.5%
9.1%
Image-Guided Therapy
6.3%
5.0%
2.5%
9.7%
Precision Diagnosis
2.4%
3.6%
2.5%
9.9%
Sleep & Respiratory Care
10.1%
7.3%
2.5%
10.3%
Personal Health
5.1%
4.2%
2.5%
9.9%
Enterprise Informatics
4.4%
5.4%
2.5%
8.9%
The assumptions used for the 2023 value-in-use calculations for cash-generating units to which a
significant amount of goodwill was allocated were as follows:
Philips Group
Key assumptions\u00a02023
compound sales growth rate
initial forecast
period
extrapolation
period
used to
calculate
terminal value
pre-tax discount
rates
Monitoring
8.2%
5.5%
2.5%
9.5%
Image-Guided Therapy
7.9%
5.2%
2.5%
10.7%
Precision Diagnosis
3.8%
3.4%
2.5%
10.4%
Sleep & Respiratory Care
9.5%
9.3%
2.5%
10.8%
Personal Health
5.0%
4.6%
2.5%
10.3%
Enterprise Informatics
5.3%
5.8%
2.5%
9.0%
Sensitivity to changes in assumptions
The results of the annual impairment tests of the groups of CGUs 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.
*The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Information
by segment and main country
12Intangible assets excluding goodwill
Accounting policies
Acquired finite-lived intangible assets are amortized using the straight-line method over their
estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized
at cost, with the exception of intangible assets acquired as part of a business combination, which
are capitalized at their acquisition date fair value.
The company expenses all research costs as incurred. Expenditure on development activities,
whereby research findings are applied to a plan or design for the production of new or substantially
improved products and processes, is capitalized as an intangible asset if the product or process is
technically and commercially feasible, the company has sufficient resources and the intention to
complete development and can measure the attributable expenditure reliably.
The capitalized development expenditure comprises of all directly attributable costs (including the
cost of materials and direct labor). Other development expenditures and expenditures on research
activities are recognized in the Consolidated statements of income. Capitalized development
expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of
capitalized development expenditure is charged to the Consolidated statements of income on a
straight-line basis over the estimated useful lives of the intangible assets.
Philips Group
Expected useful lives of intangible assets excluding goodwill in years
Brand names
2-20
Customer relationships
2-25
Technology
3-20
Other
1-10
Software
1-10
Product development
3-10
The weighted average expected remaining life of brand names, customer relationships, technology
and other intangible assets is 8.5 years as of December\u00a031, 2024 (2023: 9.3 years).
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment
are recognized in the Consolidated statements of income.
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for intangible assets excluding
goodwill contain various judgments and estimations. For intangible assets excluding goodwill,
estimates are required to determine the (remaining) useful lives.
Philips Group
Intangible assets excluding goodwill in millions of EUR
Brand names
Customer
relationships
Technology
Product development
Product development
in progress
Software
Other
Total
Balance as of January 1, 2024
Cost
629
2,593
2,908
2,432
635
929
139
10,265
Amortization / impairments
(511)
(1,718)
(1,895)
(2,096)
(91)
(662)
(101)
(7,075)
Book value
118
875
1,013
336
544
267
38
3,190
Additions
-
36
-
240
85
-
361
Assets available for use
266
(266)
Amortization
(19)
(92)
(138)
(162)
(95)
(1)
(506)
Impairments
(7)
-
(135)
(13)
(24)
(7)
(1)
(188)
Transfers to assets classified as held for sale
(11)
1
(10)
Translation differences and other
6
51
79
(9)
29
15
(37)
134
Total change
(20)
(52)
(158)
82
(21)
(3)
(38)
(208)
Balance as of December 31, 2024
Cost
671
2,722
2,900
2,659
624
984
-
10,559
Amortization / impairments
(573)
(1,899)
(2,044)
(2,241)
(101)
(719)
-
(7,578)
Book Value
98
823
855
418
523
265
-
2,982
Philips Group
Intangible assets excluding goodwill in millions of EUR
Brand names
Customer
relationships
Technology
Product development
Product development
in progress
Software
Other
Total
Balance as of January 1, 2023
Cost
647
2,735
2,947
2,605
648
869
152
10,602
Amortization / impairments
(507)
(1,665)
(1,845)
(2,212)
(146)
(589)
(113)
(7,077)
Book value
140
1,070
1,102
393
502
280
39
3,526
Additions
33
-
214
70
-
317
Assets available for use
157
(157)
-
-
Acquisitions
40
-
-
40
Amortization
(20)
(137)
(131)
(169)
(97)
(1)
(556)
Impairments
-
-
(7)
(7)
(1)
-
(16)
Transfers to assets classified as held for sale
(1)
(20)
(8)
(2)
(32)
Translation differences and other
(1)
(37)
(30)
(38)
1
18
-
(87)
Total change
(22)
(195)
(89)
(57)
42
(13)
(1)
(335)
Balance as of December 31, 2023
Cost
629
2,593
2,908
2,432
635
929
139
10,265
Amortization / impairments
(511)
(1,718)
(1,895)
(2,096)
(91)
(662)
(101)
(7,075)
Book Value
118
875
1,013
336
544
267
38
3,190
Philips did not make any acquisitions in 2024 ( 2023: acquisitions involved EUR 40 million of
intangible assets). For more information, refer to Acquisitions and divestments.
Impairments in 2024 amounted to EUR 188 million (2023: EUR 16 million) and mainly relate to the
impairment of acquired intangible assets following the decision to discontinue certain products in
the Diagnosis & Treatment segment.
The company uses scenarios in the business forecasting process and the most reasonable and
supportable assumptions which represent management\u2019s best estimate are used as the basis for
the value-in-use calculations.
The amortization and impairment of intangible assets is further specified in Income from
operations .
The most notable intangible assets as of December\u00a031, 2024 relate to the BioTelemetry customer
relationships and technology with a carrying value of EUR 316 million and EUR 108 million and a
remaining amortization period of 12 years and 8 years, respectively, and Spectranetics customer
relationships and technology with a carrying value of EUR 256 million and EUR 164 million and a
remaining amortization period of 13 years and 8 years , respectively. The most notable intangible
assets as of December\u00a031, 2023, relate to the BioTelemetry customer relationships and technology
with value of EUR 327 million and EUR 123 million and a remaining amortization period of 13 years
and 9 years, respectively, and Spectranetics customer relationships and technology with a carrying
value of EUR 261 million and EUR 175 million and a remaining amortization period of 14 years and
9 years, respectively.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-571": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
13Other financial assets
Accounting policies
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset\u2019s
contractual cash flow characteristics and the company\u2019s business model for managing them.
The company initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
\u2022 financial assets at amortized cost (debt instruments)
\u2022 financial assets at fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments)
\u2022 financial assets desi gnated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
\u2022 financial assets at fair value through profit or loss (debt instruments and equity instruments)
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
16Receivables
Accounting policies
Receivables are initially measured at fair value and are subsequently measured at amortized cost if
held within a business model with the objective to collect the contractual cash flows or at fair value
through OCI if held within a business model with the objective of both holding to collect
contractual cash flows and selling. Receivables are measured less any impairment losses.
Receivables are derecognized when the company has transferred substantially all risks and rewards,
which includes transactions in which the company enters into factoring transactions, or if the
company does not retain control over the receivables.
18Debt
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.
24Contingencies
Accounting policies
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
Offsetting and master netting agreements
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when,
and only when, the company currently has a legally enforceable right to set-off the amounts and
the group intends either to settle them on a net basis or to realize the asset and settle the liability
simultaneously.
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-570": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
18Debt
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.
24Contingencies
Accounting policies
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
Offsetting and master netting agreements
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when,
and only when, the company currently has a legally enforceable right to set-off the amounts and
the group intends either to settle them on a net basis or to realize the asset and settle the liability
simultaneously.
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-569": { "value": "
4Acquisitions and divestments
Accounting policies
Acquisitions
The company accounts for business combinations using the acquisition method when control is
transferred to the group. The consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired and the liabilities assumed. Transaction costs
are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition
date and is initially presented in Long-term provisions. When the timing and amount of the
consideration become more certain, it is reclassified to Accrued liabilities. If the contingent
consideration that meets the definition of a financial instrument is classified as equity, it is not
remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the
fair value of the contingent consideration are recognized in the Consolidated statements of
income.
Changes to the initial fair value of the acquired assets and liabilities, based on new information
about the circumstances at the acquisition date, can be made up to 12 months after the acquisition
date.
13Other financial assets
Accounting policies
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset\u2019s
contractual cash flow characteristics and the company\u2019s business model for managing them.
The company initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
\u2022 financial assets at amortized cost (debt instruments)
\u2022 financial assets at fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments)
\u2022 financial assets desi gnated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
\u2022 financial assets at fair value through profit or loss (debt instruments and equity instruments)
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-568": { "value": "
4Acquisitions and divestments
2024
Acquisitions
Philips did not make any acquisitions in 2024.
2023
Acquisitions
On May 5, 2023, Philips completed one acquisition within the Ultrasound Business Unit to
accelerate the growth of its Diagnosis & Treatment segment. The total equity purchase price and
the settlement of debt, net of acquired cash, involved an amount of EUR 53 million . Including final
purchase price adjustments processed in the course of 2024, the company recognized a contingent
consideration of EUR 6 million at fair value, recognized as a Long-term provision, Goodwill of EUR
24 million, Other intangible assets of EUR 40 million and deferred tax asset and liability of EUR 5
million and EUR 2 million , respectively.
6Income from operations
Impairment of goodwill
There were no goodwill impairment charges in 2024. In 2023, a goodwill charge of EUR 8 million
was recorded for the partial impairment of goodwill allocated to a business that was classified as
held-for-sale as of December\u00a031, 2023. For further information refer to Goodwill.
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for goodwill impairment testing
contain various judgments and estimations as described in the \u2018key assumptions\u2019 section.
The changes in 2023 and 2024 were as follows:
Philips Group
Goodwill in millions of EUR
2023
2024
Balance as of January 1
Cost
12,747
12,133
Impairments
(2,509)
(2,256)
Book value
10,238
9,876
Acquisitions\u00b9
24
Impairments
(8)
Divestments and transfers to assets classified as held for sale\u00b2
(8)
(22)
Translation differences and other
(370)
528
Total change
(362)
507
Balance as of December 31
Cost
12,133
12,777
Impairments
(2,256)
(2,394)
Book value
9,876
10,383
1Refer to Acquisitions and divestments
2 Refer to Discontinued operations and assets classified as held for sale
In 2024, goodwill increased by EUR 507 million , primarily as a result of translation differences.
Goodwill impairment testing
During 2024 , there were no goodwill impairments recorded.
Goodwill allocated to the Businesses (groups of cash-generating units) as of December\u00a031, 2024, is
presented in the following table:
Philips Group
Goodwill by business in millions of EUR
2023
2024
Monitoring
3,964
4,194
Image-Guided Therapy
3,044
3,216
Precision Diagnosis
1,363
1,440
Sleep & Respiratory Care
687
694
Personal Health
483
509
Enterprise Informatics
336
331
Book value
9,876
10,383
The carrying amount of each group of CGUs is compared to the recoverable amount of the group
of CGUs. Unless otherwise noted, the recoverable amount for each group of CGUs is based on
value-in-use calculations. Cash flow projections were determined using Philips management's
internal forecasts that cover an initial forecast period from 2025 to 2027. Projections were
extrapolated using the growth rates disclosed in the following table for an extrapolation period of 4
years (2028-2031), after which a terminal value was calculated per 2032. For the terminal value
calculation, growth rates were capped at a historical long-term average growth rate. The company
uses scenarios in the business forecasting process and the most reasonable and supportable
assumptions that represent management\u2019s best estimate are used as the basis for the value-in-use
calculations.
Key assumptions
Key assumptions used in the value-in-use calculations were compound sales growth rates, EBITA*
in the terminal value and the rates used for discounting the projected cash flows.
The compound sales growth rate is the annualized steady nominal growth rate over the forecast
period calculated with reference to the latest full year of actual sales as the base for the growth.
The compound sales growth rate used to calculate the terminal value is only applied to the first
year after the extrapolation period, after which no further growth is assumed for the terminal value
calculation.
The compound sales growth rates and EBITA* used to estimate cash flows are based on past
performance, external market growth assumptions and industry long-term growth averages.
EBITA* for each group of CGUs is expected to increase over the projection period as a result of
volume growth and cost efficiencies. By their nature, these assumptions involve risk and uncertainty
because they relate to future events and circumstances and there are many factors that could cause
actual results and developments to differ materially from the plans, goals and expectations set forth
in these assumptions.
The rates used for discounting the projected cash flows in goodwill impairment testing is based on
a weighted cost of capital (WACC), which in turn is based on business-specific inputs along with
other inputs as mentioned below. The WACC is based on post-tax cost of equity and cost of debt,
and is further calculated based on market data and inputs to accurately capture changes to the
time value of money, such as the risk-free interest rate, the beta factor and country risk premium.
In order to properly reflect the different risk-profiles of different businesses, a WACC is determined
for each business. As such, the beta factor is determined based on a selection of peer companies,
which can differ per business. Different businesses have different geographical footprints, resulting
in business-specific inputs for variables like country risk. Philips performs the value-in-use
calculations using post-tax cash flows and discount rate, the implicit pre-tax rate discount rate is
derived from an iterative calculation for disclosure purposes.
The values assigned to the key assumptions used for the value-in-use calculations were as follows:
Philips Group
Key assumptions\u00a02024
Compound sales growth rate
Initial forecast
period
Extrapolation
period
Used to
calculate
terminal value
Pre-tax
discount rates
Monitoring
5.3%
4.7%
2.5%
9.1%
Image-Guided Therapy
6.3%
5.0%
2.5%
9.7%
Precision Diagnosis
2.4%
3.6%
2.5%
9.9%
Sleep & Respiratory Care
10.1%
7.3%
2.5%
10.3%
Personal Health
5.1%
4.2%
2.5%
9.9%
Enterprise Informatics
4.4%
5.4%
2.5%
8.9%
The assumptions used for the 2023 value-in-use calculations for cash-generating units to which a
significant amount of goodwill was allocated were as follows:
Philips Group
Key assumptions\u00a02023
compound sales growth rate
initial forecast
period
extrapolation
period
used to
calculate
terminal value
pre-tax discount
rates
Monitoring
8.2%
5.5%
2.5%
9.5%
Image-Guided Therapy
7.9%
5.2%
2.5%
10.7%
Precision Diagnosis
3.8%
3.4%
2.5%
10.4%
Sleep & Respiratory Care
9.5%
9.3%
2.5%
10.8%
Personal Health
5.0%
4.6%
2.5%
10.3%
Enterprise Informatics
5.3%
5.8%
2.5%
9.0%
Sensitivity to changes in assumptions
The results of the annual impairment tests of the groups of CGUs 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.
*The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Information
by segment and main country
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-567": { "value": "
4Acquisitions and divestments
Accounting estimates and judgments
Intangible assets acquired in a business acquisition and the financial liability related to non-
controlling interest are measured at fair value at the date of the acquisition.
To determine the fair value of intangible assets at the acquisition date, estimates and assumptions
are required. The valuation of the identifiable intangible assets involves estimates of expected sales,
earnings and/or future cash flows and require use of key assumptions such as discount rate, royalty
rate and growth rates.
2024
Acquisitions
Philips did not make any acquisitions in 2024.
2023
Acquisitions
On May 5, 2023, Philips completed one acquisition within the Ultrasound Business Unit to
accelerate the growth of its Diagnosis & Treatment segment. The total equity purchase price and
the settlement of debt, net of acquired cash, involved an amount of EUR 53 million . Including final
purchase price adjustments processed in the course of 2024, the company recognized a contingent
consideration of EUR 6 million at fair value, recognized as a Long-term provision, Goodwill of EUR
24 million, Other intangible assets of EUR 40 million and deferred tax asset and liability of EUR 5
million and EUR 2 million , respectively.
12Intangible assets excluding goodwill
Accounting policies
Acquired finite-lived intangible assets are amortized using the straight-line method over their
estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized
at cost, with the exception of intangible assets acquired as part of a business combination, which
are capitalized at their acquisition date fair value.
The company expenses all research costs as incurred. Expenditure on development activities,
whereby research findings are applied to a plan or design for the production of new or substantially
improved products and processes, is capitalized as an intangible asset if the product or process is
technically and commercially feasible, the company has sufficient resources and the intention to
complete development and can measure the attributable expenditure reliably.
The capitalized development expenditure comprises of all directly attributable costs (including the
cost of materials and direct labor). Other development expenditures and expenditures on research
activities are recognized in the Consolidated statements of income. Capitalized development
expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of
capitalized development expenditure is charged to the Consolidated statements of income on a
straight-line basis over the estimated useful lives of the intangible assets.
Philips Group
Expected useful lives of intangible assets excluding goodwill in years
Brand names
2-20
Customer relationships
2-25
Technology
3-20
Other
1-10
Software
1-10
Product development
3-10
The weighted average expected remaining life of brand names, customer relationships, technology
and other intangible assets is 8.5 years as of December\u00a031, 2024 (2023: 9.3 years).
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment
are recognized in the Consolidated statements of income.
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for intangible assets excluding
goodwill contain various judgments and estimations. For intangible assets excluding goodwill,
estimates are required to determine the (remaining) useful lives.
Philips Group
Intangible assets excluding goodwill in millions of EUR
Brand names
Customer
relationships
Technology
Product development
Product development
in progress
Software
Other
Total
Balance as of January 1, 2024
Cost
629
2,593
2,908
2,432
635
929
139
10,265
Amortization / impairments
(511)
(1,718)
(1,895)
(2,096)
(91)
(662)
(101)
(7,075)
Book value
118
875
1,013
336
544
267
38
3,190
Additions
-
36
-
240
85
-
361
Assets available for use
266
(266)
Amortization
(19)
(92)
(138)
(162)
(95)
(1)
(506)
Impairments
(7)
-
(135)
(13)
(24)
(7)
(1)
(188)
Transfers to assets classified as held for sale
(11)
1
(10)
Translation differences and other
6
51
79
(9)
29
15
(37)
134
Total change
(20)
(52)
(158)
82
(21)
(3)
(38)
(208)
Balance as of December 31, 2024
Cost
671
2,722
2,900
2,659
624
984
-
10,559
Amortization / impairments
(573)
(1,899)
(2,044)
(2,241)
(101)
(719)
-
(7,578)
Book Value
98
823
855
418
523
265
-
2,982
Philips Group
Intangible assets excluding goodwill in millions of EUR
Brand names
Customer
relationships
Technology
Product development
Product development
in progress
Software
Other
Total
Balance as of January 1, 2023
Cost
647
2,735
2,947
2,605
648
869
152
10,602
Amortization / impairments
(507)
(1,665)
(1,845)
(2,212)
(146)
(589)
(113)
(7,077)
Book value
140
1,070
1,102
393
502
280
39
3,526
Additions
33
-
214
70
-
317
Assets available for use
157
(157)
-
-
Acquisitions
40
-
-
40
Amortization
(20)
(137)
(131)
(169)
(97)
(1)
(556)
Impairments
-
-
(7)
(7)
(1)
-
(16)
Transfers to assets classified as held for sale
(1)
(20)
(8)
(2)
(32)
Translation differences and other
(1)
(37)
(30)
(38)
1
18
-
(87)
Total change
(22)
(195)
(89)
(57)
42
(13)
(1)
(335)
Balance as of December 31, 2023
Cost
629
2,593
2,908
2,432
635
929
139
10,265
Amortization / impairments
(511)
(1,718)
(1,895)
(2,096)
(91)
(662)
(101)
(7,075)
Book Value
118
875
1,013
336
544
267
38
3,190
Philips did not make any acquisitions in 2024 ( 2023: acquisitions involved EUR 40 million of
intangible assets). For more information, refer to Acquisitions and divestments.
Impairments in 2024 amounted to EUR 188 million (2023: EUR 16 million) and mainly relate to the
impairment of acquired intangible assets following the decision to discontinue certain products in
the Diagnosis & Treatment segment.
The company uses scenarios in the business forecasting process and the most reasonable and
supportable assumptions which represent management\u2019s best estimate are used as the basis for
the value-in-use calculations.
The amortization and impairment of intangible assets is further specified in Income from
operations .
The most notable intangible assets as of December\u00a031, 2024 relate to the BioTelemetry customer
relationships and technology with a carrying value of EUR 316 million and EUR 108 million and a
remaining amortization period of 12 years and 8 years, respectively, and Spectranetics customer
relationships and technology with a carrying value of EUR 256 million and EUR 164 million and a
remaining amortization period of 13 years and 8 years , respectively. The most notable intangible
assets as of December\u00a031, 2023, relate to the BioTelemetry customer relationships and technology
with value of EUR 327 million and EUR 123 million and a remaining amortization period of 13 years
and 9 years, respectively, and Spectranetics customer relationships and technology with a carrying
value of EUR 261 million and EUR 175 million and a remaining amortization period of 14 years and
9 years, respectively.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-579": { "value": "
5Interests in entities
Accounting policies
Associates are all entities over which the company has significant influence, but not control or joint
control. Significant influence is presumed with a shareholding of between 20% and 50% of the
voting rights.
Investments in associates are accounted for using the equity method of accounting and are initially
recognized at cost. The carrying amount of an investment in an associate includes the carrying
amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to
the investment as a whole.
The company\u2019s share of the net income of these associates is included in Investments in associates,
net of income taxes, in the Consolidated statements of income, after adjustments to align the
accounting policies with those of the company. Dilution gains and losses arising from investments
in associates are recognized in the Consolidated statements of income as part of Investments in
associates, net of income taxes. Impairment losses and gains or losses on sale of investments are
recorded in the Consolidated statements of income, more specifically on the line item \u2019Investments
in associates, net of income taxes\u2019.
When the company\u2019s share of losses exceeds its interest in an associate, the carrying amount of
that interest is reduced to zero and recognition of further losses is discontinued except to the
extent that the company has an obligation or made payments on behalf of the associate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-578": { "value": "
5Interests in entities
Accounting policies
Associates are all entities over which the company has significant influence, but not control or joint
control. Significant influence is presumed with a shareholding of between 20% and 50% of the
voting rights.
Investments in associates are accounted for using the equity method of accounting and are initially
recognized at cost. The carrying amount of an investment in an associate includes the carrying
amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to
the investment as a whole.
The company\u2019s share of the net income of these associates is included in Investments in associates,
net of income taxes, in the Consolidated statements of income, after adjustments to align the
accounting policies with those of the company. Dilution gains and losses arising from investments
in associates are recognized in the Consolidated statements of income as part of Investments in
associates, net of income taxes. Impairment losses and gains or losses on sale of investments are
recorded in the Consolidated statements of income, more specifically on the line item \u2019Investments
in associates, net of income taxes\u2019.
When the company\u2019s share of losses exceeds its interest in an associate, the carrying amount of
that interest is reduced to zero and recognition of further losses is discontinued except to the
extent that the company has an obligation or made payments on behalf of the associate.
Investments in associates
Philips has investments in a number of associates. During 2024, Philips did not make any new
investments in associates.
In 2024 Philips recognized its share of net results from associates, reporting a loss of EUR 20 million
and an impairment of EUR 103 million. The most significant impairment was related to B-Soft Co.,
Ltd. (EUR 63 million), a Chinese IT provider for the medical and health sectors, largely due to
adverse economic conditions in China. The net results from associates and impairment losses were
recorded as part of Investments in associates, net of income taxes.
Cumulative translation adjustments related to investments in associates were EUR (10) million as of
December\u00a031, 2024 (2023: EUR (21) million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-577": { "value": "
5Interests in entities
Accounting policies
Associates are all entities over which the company has significant influence, but not control or joint
control. Significant influence is presumed with a shareholding of between 20% and 50% of the
voting rights.
Investments in associates are accounted for using the equity method of accounting and are initially
recognized at cost. The carrying amount of an investment in an associate includes the carrying
amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to
the investment as a whole.
The company\u2019s share of the net income of these associates is included in Investments in associates,
net of income taxes, in the Consolidated statements of income, after adjustments to align the
accounting policies with those of the company. Dilution gains and losses arising from investments
in associates are recognized in the Consolidated statements of income as part of Investments in
associates, net of income taxes. Impairment losses and gains or losses on sale of investments are
recorded in the Consolidated statements of income, more specifically on the line item \u2019Investments
in associates, net of income taxes\u2019.
When the company\u2019s share of losses exceeds its interest in an associate, the carrying amount of
that interest is reduced to zero and recognition of further losses is discontinued except to the
extent that the company has an obligation or made payments on behalf of the associate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-576": { "value": "
5Interests in entities
Accounting policies
Associates are all entities over which the company has significant influence, but not control or joint
control. Significant influence is presumed with a shareholding of between 20% and 50% of the
voting rights.
Investments in associates are accounted for using the equity method of accounting and are initially
recognized at cost. The carrying amount of an investment in an associate includes the carrying
amount of goodwill identified on acquisition. An impairment loss on such investment is allocated to
the investment as a whole.
The company\u2019s share of the net income of these associates is included in Investments in associates,
net of income taxes, in the Consolidated statements of income, after adjustments to align the
accounting policies with those of the company. Dilution gains and losses arising from investments
in associates are recognized in the Consolidated statements of income as part of Investments in
associates, net of income taxes. Impairment losses and gains or losses on sale of investments are
recorded in the Consolidated statements of income, more specifically on the line item \u2019Investments
in associates, net of income taxes\u2019.
When the company\u2019s share of losses exceeds its interest in an associate, the carrying amount of
that interest is reduced to zero and recognition of further losses is discontinued except to the
extent that the company has an obligation or made payments on behalf of the associate.
Investments in associates
Philips has investments in a number of associates. During 2024, Philips did not make any new
investments in associates.
In 2024 Philips recognized its share of net results from associates, reporting a loss of EUR 20 million
and an impairment of EUR 103 million. The most significant impairment was related to B-Soft Co.,
Ltd. (EUR 63 million), a Chinese IT provider for the medical and health sectors, largely due to
adverse economic conditions in China. The net results from associates and impairment losses were
recorded as part of Investments in associates, net of income taxes.
Cumulative translation adjustments related to investments in associates were EUR (10) million as of
December\u00a031, 2024 (2023: EUR (21) million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-575": { "value": "
5Interests in entities
Information related to non-controlling interests
As of December\u00a031, 2024, three consolidated subsidiaries are not wholly owned by Philips
(December\u00a031, 2023: four). In 2024, sales to third parties and Net income for these subsidiaries in
aggregate are EUR 467 million (December\u00a031, 2023: EUR 492 million) and EUR 10 million
(December\u00a031, 2023: EUR 27 million), respectively.
17Equity
Non-controlling interests
Non-controlling interests relate to minority stakes held by third parties in consolidated group
companies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-574": { "value": "
5Interests in entities
The nature of the company\u2019s interests in its consolidated entities and associates, and the effects of
those interests on the company\u2019s financial position and financial performance are discussed below.
Group companies
Below is a list of subsidiaries as of December\u00a031, 2024, that individually exceed 5% of either the
consolidated group Sales, Income from operations or Income from continuing operations (before
any intra-group eliminations) of Group legal entities. All of the entities are fully consolidated in the
Group financial statements.
Philips Group
Interests in group companies in alphabetical order by country
December 31, 2024
Legal entity name
Principal country of business
Philips (China) Investment Company, Ltd.
China
Philips Medizin Systeme B\u00f6blingen GmbH
Germany\u00b9
Philips Consumer Lifestyle B.V.
Netherlands
Philips Medical Systems (Cleveland), Inc.
United States
Philips North America LLC
United States
Philips RS North America LLC
United States
1Application of Sec. 264 (3) and Sec. 264b HGB (German Commercial Code) for fully consolidated legal
entities: Philips GmbH, Hamburg; Philips Medical Systems DMC GmbH, Hamburg; Respironics Deutschland
GmbH & Co.KG, M\u00fcnchen; Philips Medizin Systeme Hofheim-Wallau GmbH, Hamburg; Philips Medizin
Systeme B\u00f6blingen GmbH, B\u00f6blingen; TomTec Imaging Systems GmbH, Unterschlei\u00dfheim; PIP
Verwaltungsgesellschaft mbH, Hamburg.\u00a0
25Related-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.
Philips Group
Related-party transactions in millions of EUR
2022
2023
2024
Sales of goods and services
111
106
89
Purchases of goods and services
46
42
50
Receivables from related parties
55
18
25
Payables to related parties
2
2
2
The above table includes sales transactions between Philips and PMC of EUR 88 million in 2024
(2023: EUR 87 million; 2022 : EUR 101 million), under which PMC has leased the equipment to the
ultimate customer. In addition, as part of its S&RC operations in the US, Philips Medical Capital LLC
funded durable medical equipment (DMEs) providers, through loans and leases. PMC-funded
transactions these DMEs entered into with Philips amount to EUR 75 million in 2024 ( 2023 : EUR
117 million ; 2022: EUR 117 million). The associated costs of these funding transactions are borne
by the ultimate customer and settled directly with Philips Medical Capital LLC. Philips Medical
Capital LLC, a Pennsylvania limited liability company, is owned 60% by De Lage Landen Financial
Services, Inc. (DLL) and 40% by Philips Electronics North America Corporation (Philips).
On August 14, 2023, it was announced that Exor N.V. acquired a 15% minority stake in Philips
shares and entered into a relationship agreement with the company. Pursuant to the relationship
agreement with the company, Exor N.V. proposed one member to the Supervisory Board, who was
confirmed at the 2024 Annual General Meeting of Shareholders on May 7, 2024. From this date,
Exor is considered a related party for reporting purposes. For remuneration details of Beno\u00eet
Ribadeau-Dumas as the Exor nominee see Information on remuneration. Exor has agreed to
maintain its shareholding of at least 15% up to 20% for three years from August 13, 2023. Philips
did not have other reportable transactions with Exor during the period ended December\u00a031, 2024.
In light of the composition of the Executive Committee, the company considers the members of the
Executive Committee and the Supervisory Board to be the key management personnel as defined in
IAS 24 Related Party Disclosures.
For remuneration details of the Executive Committee, the Board of Management and the
Supervisory Board see Information on remuneration.
For Post-employment benefit plans see Post-employment benefits.
27Information on remuneration
Remuneration of the Executive Committee
In 2024 , the total remuneration costs relating to the Executive Committee (consisting of 15
members throughout the year, including the members of the Board of Management) amounted to
EUR 32.0 million ( 2023 : EUR 32.8 million ; 2022 : EUR 25.6 million ) and consisted of the elements in
the following table.
Philips Group
Remuneration costs of the Executive Committee1 in EUR
2022
2023
2024
Base salary/Base compensation
9,528,279
8,729,458
9,362,765
Annual incentive\u00b2
208,370
11,405,130
5,292,388
Performance shares\u00b3
11,242,581
7,272,815
12,673,614
Stock options
13,358
90,503
Restricted share rights\u00b3
1,191,529
1,907,511
999,374
Pension allowances\u2074
1,949,204
1,346,937
1,197,695
Pension scheme costs
288,179
260,554
269,092
Other compensation\u2075
1,216,163
1,900,224
2,136,668
Total
25,624,305
32,835,987
32,022,099
1The Executive Committee consisted of 13 members as per December\u00a031, 2024 (2023 : 13 members; 2022:
13 members)
2The annual incentives are related to the performance in the year reported which are paid out in the
subsequent year.
3Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do
not reflect the value of performance shares at the vesting/release date
4Pension allowances are gross taxable allowances paid to the Executive Committee members in the
Netherlands. These allowances are part of the pension arrangement
5The 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
Remuneration of the Board of Management
In 2024, the total remuneration costs relating to the members of the Board of Management amounted to EUR 10.3 million (2023: EUR 9.9 million; 2022: EUR 8.5 million). See the following table.
Philips Group
Remuneration costs of individual members of the Board of Management in EUR
Base
compensation/
salary
Annual incentive\u00b9
Performance
shares\u00b2
Restricted share
rights\u00b2
Pension
allowances
Pension scheme
costs
Other
compensation\u00b3
Total costs
2024
R. Jakobs
1,237,500
927,750
1,692,087
274,925
32,218
83,870
4,248,350
C. Hanneman\u2074
175,545
98,372
104,606
35,247
7,775
23,089
444,633
A. Bhattacharya
622,500
351,934
1,424,219
129,788
25,478
963,596
3,517,514
M.J. van Ginneken
652,500
422,374
740,101
128,675
32,218
74,227
2,050,095
2,688,045
1,800,429
3,961,013
568,635
97,689
1,144,781
10,260,593
2023
R. Jakobs
1,200,000
2,004,480
968,922
267,798
31,891
109,256
4,582,347
A. Bhattacharya
810,000
1,075,939
793,429
197,133
31,891
94,516
3,002,907
M.J. van Ginneken
630,000
846,922
614,840
125,298
31,891
53,446
2,302,397
2,640,000
3,927,341
2,377,191
590,228
95,673
257,218
9,887,650
2022
R. Jakobs\u2075
256,438
112,737
57,973
6,012
11,507
444,667
F.A. van Houten\u2075
1,041,849
208,370
2,930,068
444,051
22,121
42,533
4,688,992
A. Bhattacharya
806,250
763,140
237,250
28,133
61,308
1,896,081
M.J. van Ginneken
626,250
585,490
141,622
28,133
35,343
1,416,837
2,730,788
208,370
4,391,434
880,896
84,398
150,691
8,446,577
1The annual incentives are related to the performance in the year reported which are paid out in the subsequent year.
2Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do
not reflect the value of performance shares at the vesting/release date
3The 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.
4As per October 1, 2024, Charlotte Hanneman was appointed as CFO of the company. This table includes
actual costs incurred as of this date and until the end of the year.
5As per October 15, 2022, Roy Jakobs was appointed as CEO of the company. The table includes actual
costs incurred in respect of the remuneration received by Mr Van Houten and Mr Jakobs, respectively, as
CEO.
The accumulated annual pension entitlements and the pension costs of individual members of the
Board of Management are as follows:
Philips Group
Accumulated annual pension entitlements and pension-related costs in EUR unless otherwise stated
Age as of December 31,
2024
Accumulated annual
pension as of December
31, 2024
Total pension related costs
R. Jakobs
50
60,886
307,143
C. Hanneman
46
1,298
100,072
M.J. van Ginneken
51
58,167
160,894
Pension costs
568,109
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 2024, 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 1.7 million (2023:
EUR 1.5 million; 2022: EUR 1.5 million). Former members received no remuneration.
The members of the Supervisory Board do not receive any share-based remuneration. Therefore, as
of December\u00a031, 2024, the members of the Supervisory Board held no stock options, performance
shares or restricted shares.
The individual members of the Supervisory Board received, by virtue of the positions they held, the
following remuneration:
Philips Group
Remuneration of the Supervisory Board in EUR
Membership
Committees
Other compensation\u00b9
Total
2024
F. Sijbesma
166,500
37,500
28,945
232,945
P.A.M. Stoffels
123,500
37,500
13,269
174,269
S.K. Chua
107,500
19,250
26,107
152,857
M.E. Doherty
107,500
29,000
20,289
156,789
A.M. Harrison
107,500
15,000
7,769
130,269
P. L\u00f6scher
107,500
34,250
18,769
160,519
I. Nooyi
107,500
15,000
20,154
142,654
S. Poonen
107,500
16,771
19,267
143,538
D.E.I. Pyott
107,500
28,750
18,769
155,019
B. Ribadeau-Dumas
70,390
9,822
17,986
98,198
H. Verhagen
107,500
26,229
16,267
149,996
1,220,390
269,072
207,592
1,697,054
2023
F. Sijbesma
155,000
35,000
16,345
206,345
P.A.M. Stoffels
115,000
35,000
22,269
172,269
S.K. Chua
100,000
18,000
22,269
140,269
M.E. Doherty
100,000
27,000
27,269
154,269
A.M. Harrison
100,000
14,000
19,769
133,769
P. L\u00f6scher
100,000
32,000
17,269
149,269
I. Nooyi
100,000
14,000
17,269
131,269
S. Poonen
100,000
18,000
19,769
137,769
D.E.I. Pyott
100,000
35,000
19,769
154,769
H. Verhagen
100,000
14,000
7,269
121,269
1,070,000
242,000
189,266
1,501,266
2022
F. Sijbesma
155,000
35,000
16,345
206,345
P.A.M. Stoffels
115,000
35,000
27,269
177,269
S.K. Chua
100,000
18,000
22,269
140,269
N. Dhawan
35,616
6,411
5,808
47,836
M.E. Doherty
100,000
27,000
24,769
151,769
A.M. Harrison
100,000
14,000
12,269
126,269
P. L\u00f6scher
100,000
32,000
24,769
156,769
I. Nooyi
100,000
14,000
17,269
131,269
S. Poonen
100,000
18,000
17,269
135,269
D.E.I. Pyott
100,000
35,000
17,269
152,269
H. Verhagen
100,000
14,000
7,269
121,269
1,105,616
248,411
192,574
1,546,602
1The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-
European travel, the Philips product arrangement and the annual fixed net expense allowance.
Supervisory Board members\u2019 and Board of Management members\u2019 interests in Philips
shares
Members of the Supervisory Board and of the Board of Management are prohibited from writing
call and put options or similar derivatives of Philips securities.
Philips Group
Shares held by Board members1 2 in number of shares
December 31, 2023
December 31, 2024
R. Jakobs
126,809
134,298
M.J. van Ginneken
129,447
137,753
P. Stoffels
17,759
18,366
S. Poonen
3,133
3,240
I. Nooyi
3,238
3,348
D. Pyott
19,848
20,526
S.K. Chua
2,089
2,160
F. Sijbesma
25,000
25,854
M. Harrison
1,567
1,620
P. L\u00f6scher
21,658
22,398
1Reference date for board membership is December\u00a031, 2024
2The total shares held by the members of the Board of Management is less than 1% of the company's
issued share capital.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-573": { "value": "
5Interests in entities
Involvement with unconsolidated structured entities
Philips founded three Philips Medical Capital (PMC) entities, in the US, France and Germany, in
which Philips holds a minority interest. Philips Medical Capital, LLC in the US 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 US, PMC operates as a subsidiary of De Lage Landen Financial Services, Inc. The
same structure and treatment is applied to the PMC entities in the other countries, with other
majority shareholders. Operating agreements are in place for all PMC entities, whereby acceptance
of sales and financing transactions resides with the respective majority shareholder. After
acceptance of a transaction by PMC, Philips transfers control and does not retain any obligations
towards PMC or its customers, from the sales contracts.
As of December\u00a031, 2024, Philips\u2019 shareholding in Philips Medical Capital, LLC had a carrying value
of EUR 31 million (December\u00a031, 2023: EUR 27 million).
The company does not have any material exposures to losses from interests in unconsolidated
structured entities other than the invested amounts.
13Other financial assets
Other non-current financial assets
The company\u2019s investments in Other non-current financial assets mainly consist of investments in
common shares of companies in various industries and investments in limited life funds. The
changes during 2024 and 2023 were as follows:
Philips Group
Other non-current financial assets in millions of EUR
Non-current
financial
assets at
FVTP&L
Non-current
financial
assets at
FVTOCI
Non-current
financial
assets at
Amortized
cost
Total
Balance as of January 1, 2024
284
258
77
619
Changes:
Acquisitions/additions
76
6
65
147
Sales/redemptions/reductions
(31)
(14)
(11)
(56)
Value adjustment through OCI
(23)
(23)
Value adjustment through P&L
(25)
1
(23)
Translation differences and other
8
12
(4)
16
Reclassification
(25)
4
(27)
(47)
Balance as of December 31, 2024
288
242
102
631
Philips Group
Other non-current financial assets in millions of EUR
Non-current
financial
assets at
FVTP&L
Non-current
financial
assets at
FVTOCI
Non-current
financial
assets at
Amortized
cost
Total
Balance as of January 1, 2023
322
284
54
660
Changes:
Acquisitions/additions
71
14
20
105
Sales/redemptions/reductions
(33)
(14)
(11)
(58)
Value adjustment through OCI
(17)
-
(17)
Value adjustment through P&L
(39)
-
-
(39)
Translation differences and other
(29)
(14)
(1)
(44)
Reclassifications
(8)
5
15
12
Balance as of December 31, 2023
284
258
77
619
As of December\u00a031, 2024, equity investments of EUR 222 million (2023 : EUR 231 million) are
accounted under the FVTOCI category based on the company's election at initial recognition mainly
because such investments are neither held for trading purposes nor primarily for their increase in
value and the elected presentation is considered to reflect the nature and purpose of the
investment.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-589": { "value": "
6Income from operations
Accounting policies
Revenue recognition
The company recognizes revenue when it transfers control over a good or service to a customer, in
an amount that reflects the consideration (i.e., transaction price) to which the company expects to
be entitled in exchange for the good or service. The consideration expected by the company may
include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and
volume rebates. The company adjusts the consideration for the time value of money if the period
between the transfer of the promised goods or services to the customer and payment by the
customer exceeds six months.
Transfer of control varies depending on the individual terms of the contract of sale. For consumer-
type products in the Personal Health segment, control is transferred when the product is shipped
and delivered to the customer and title and risk have passed to the customer (depending on the
delivery conditions) and acceptance of the product has been obtained.
Revenues from transactions relating to distinct goods or services are accounted for separately based
on their relative stand-alone selling prices. The stand-alone selling price is the price that would be
charged for the goods or service in a separate transaction under similar conditions to similar
customers. The transaction price is determined (considering variable considerations) and allocated
to performance obligations based on their relative stand-alone selling prices. These transactions
mainly occur in the segments Diagnosis & Treatment and Connected Care and include
arrangements that require subsequent installation and training activities to make distinct goods
operable for the customer. As such, the related installation and training activities are part of
equipment sales rather than separate performance obligations. Revenue is recognized when the
performance obligation is satisfied, i.e., when the installation has been completed and the
equipment is ready to be used by the customer in the way contractually agreed.
Variable consideration is included in the transaction price to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognized will not occur once
associated uncertainties are resolved. Such assessment is performed on each reporting date to
check whether it is constrained. For products for which a right of return exists during a defined
period, revenue recognition is determined based on the historical pattern of actual returns, or in
cases where such information is not available, revenue recognition is postponed until the return
period has lapsed. Return policies are typically based on customary return arrangements in local
markets. A provision is recognized for assurance-type product warranty at the time of revenue
recognition and reflects the estimated costs of replacement and free-of-charge services that will be
incurred by the company with respect to the products sold. For certain products, the customer has
the option to purchase the warranty separately, which is considered a separate performance
obligation on top of the assurance-type product warranty. For such warranties which provide
distinct service, revenue recognition occurs on a straight-line basis over the extended warranty
contract period. Occasionally, the company may offer a full or partial refund of consideration
previously paid, for example as part of the resolution to warranty related matters. In such instances,
a provision is recognized for the amounts expected to be refunded to customers, and remeasured
at each reporting date to reflect changes in the estimated refunds, with a corresponding
adjustment to revenue.
In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred
for sales commissions that are considered incremental to the contracts are recognized immediately
in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15
Revenue from Contracts with Customers.
Sale of goods
Revenues are recognized at a point in time when control of the goods passes to the buyer, based
on the allocation of the transaction price to the performance obligation.
Revenue from services
Revenues are recognized over time as the company transfers control of the services to the
customer, which is demonstrated by the customer simultaneously receiving and consuming the
benefits provided by the company. The amount of revenues is measured by reference to the
progress made toward complete satisfaction of the performance obligation, which in general is
evenly over time. Service revenue related to repair and maintenance activities for goods sold is
recognized ratably over the service period or as services are rendered.
Income from royalties
Royalty income from brand license arrangements and from intellectual property rights, such as
technology licenses or patents, is recognized on an accrual basis in accordance with the substance
of the relevant agreement.
Accounting estimates and judgments
Sales-related accruals
The company has sales promotions-related agreements with distributors and retailers designed to
promote the sale of products. Among the programs are arrangements under which rebates and
discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or
for participating in specific marketing programs. Management estimates the sales-related accruals
associated with these arrangements based on a combination of historical patterns and future
expectations regarding which promotional targets are expected to be met by distributors and
retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right
to offset against the respective accounts receivable.
A breakdown by nature of the income (loss) from operations is as follows:
Philips Group
Sales and costs by nature in millions of EUR
2022
2023
2024
Sales
17,827
18,169
18,021
Costs of materials used
(4,320)
(4,626)
(4,213)
Employee benefit expenses
(6,952)
(6,903)
(6,641)
Depreciation and amortization\u00b9
(1,602)
(1,261)
(1,390)
Impairment of goodwill
(1,357)
(8)
Shipping and handling
(756)
(668)
(623)
Advertising and promotion
(739)
(700)
(791)
Lease expenses
(39)
(51)
(54)
Other operational costs
(3,609)
(3,535)
(3,351)
Other business income (expenses)
18
(533)
(429)
Income from operations
(1,529)
(115)
529
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Sales composition and disaggregation
For information related to sales on a segment and geographical basis, refer to Information by
segment and main country.
Philips Group
Sales composition in millions of EUR
2022
2023
2024
Goods
12,139
12,419
12,198
Services
4,878
4,926
5,003
Royalties
419
434
466
Total sales from contracts with customers
17,435
17,779
17,667
Sales from other sources
391
390
354
Total sales
17,827
18,169
18,021
Total sales from other sources mainly relates to operating leases EUR 222 million (2023: EUR 234
million; 2022: EUR 258 million). Sales represent revenue from external customers.
As of December\u00a031, 2024, the aggregate amount of the transaction price allocated to remaining
performance obligations from a sale of goods and services was EUR 15,632 million (2023 :15,571
million ) . The company expects to recognize approximately 56% of the remaining performance
obligations within 1 year . Revenue expected to be recognized beyond is mostly related to longer
term customer service and software contracts.
Sales over time represent services and Other also includes royalties over time (2024: EUR 277
million; 2023: EUR 283 million; 2022: EUR 292 million).
Sales per geographic area are reported based on country of destination.
Philips Group
Disaggregation of Sales per segment in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,655
3,070
8,725
65
8,790
Connected Care
2,959
1,886
4,845
289
5,134
Personal Health
3,471
15
3,486
3,486
Other
300
311
611
611
Philips Group
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per segment in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,768
2,980
8,749
76
8,825
Connected Care
2,970
1,854
4,824
314
5,138
Personal Health
3,586
16
3,602
3,602
Other
245
360
604
-
604
Philips Group
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per segment in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,295
2,954
8,248
55
8,303
Connected Care
3,079
1,853
4,932
336
5,268
Personal Health
3,615
11
3,626
3,626
Other
274
353
630
630
Philips Group
12,263
5,172
17,435
391
17,827
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,698
1,254
3,951
28
3,978
North America
4,958
2,602
7,560
93
7,655
Other mature geographies
893
401
1,294
231
1,526
Mature geographies
8,549
4,256
12,805
353
13,159
Growth geographies
3,836
1,026
4,861
1
4,863
Sales
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,552
1,221
3,770
49
3,819
North America
4,859
2,608
7,470
92
7,562
Other mature geographies
980
398
1,378
248
1,626
Mature geographies
8,392
4,227
12,618
389
13,007
Growth geographies
4,177
984
5,161
1
5,162
Sales
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,387
1,183
3,572
31
3,603
North America
4,889
2,612
7,502
86
7,588
Other mature geographies
972
399
1,369
274
1,643
Mature geographies
8,248
4,194
12,443
390
12,833
Growth geographies
4,015
978
4,992
1
4,993
Sales
12,263
5,172
17,435
391
17,827
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
Other current assets
Other current assets as of \u00a0 December\u00a031, 2024, totaled EUR 586 million ( 2023 : EUR 500 million ),
primarily contract assets of EUR 349 million ( 2023 : EUR 297 million ) and prepaid expenses of EUR
238 million (2023: EUR 197 million) mainly related to Diagnosis & Treatment Businesses and
Connected Care Businesses.
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
The company recognizes contract liabilities if a payment is received or a payment is due (whichever
is earlier) from a customer before the company transfers the related goods or services. Contract
liabilities are recognized as revenue when the company performs under the contract (i.e., transfers
control of the related goods or services to the customer).
Contract liabilities
Non-current contract liabilities were EUR 431 million as of December\u00a031, 2024 ( December\u00a031,
2023: EUR 469 million ) and current contract liabilities were EUR 1,699 million as of December\u00a031,
2024 ( December\u00a031, 2023 : EUR 1,809 million).
The current contract liabilities decreased by EUR 109 million , which is mainly driven by an decrease
in deferred balances for customer service contracts.
The current contract liabilities as of December\u00a031, 2023, resulted in revenue recognized of EUR
1,809 million in 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-588": { "value": "
6Income from operations
Accounting policies
Revenue recognition
The company recognizes revenue when it transfers control over a good or service to a customer, in
an amount that reflects the consideration (i.e., transaction price) to which the company expects to
be entitled in exchange for the good or service. The consideration expected by the company may
include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and
volume rebates. The company adjusts the consideration for the time value of money if the period
between the transfer of the promised goods or services to the customer and payment by the
customer exceeds six months.
Transfer of control varies depending on the individual terms of the contract of sale. For consumer-
type products in the Personal Health segment, control is transferred when the product is shipped
and delivered to the customer and title and risk have passed to the customer (depending on the
delivery conditions) and acceptance of the product has been obtained.
Revenues from transactions relating to distinct goods or services are accounted for separately based
on their relative stand-alone selling prices. The stand-alone selling price is the price that would be
charged for the goods or service in a separate transaction under similar conditions to similar
customers. The transaction price is determined (considering variable considerations) and allocated
to performance obligations based on their relative stand-alone selling prices. These transactions
mainly occur in the segments Diagnosis & Treatment and Connected Care and include
arrangements that require subsequent installation and training activities to make distinct goods
operable for the customer. As such, the related installation and training activities are part of
equipment sales rather than separate performance obligations. Revenue is recognized when the
performance obligation is satisfied, i.e., when the installation has been completed and the
equipment is ready to be used by the customer in the way contractually agreed.
Variable consideration is included in the transaction price to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognized will not occur once
associated uncertainties are resolved. Such assessment is performed on each reporting date to
check whether it is constrained. For products for which a right of return exists during a defined
period, revenue recognition is determined based on the historical pattern of actual returns, or in
cases where such information is not available, revenue recognition is postponed until the return
period has lapsed. Return policies are typically based on customary return arrangements in local
markets. A provision is recognized for assurance-type product warranty at the time of revenue
recognition and reflects the estimated costs of replacement and free-of-charge services that will be
incurred by the company with respect to the products sold. For certain products, the customer has
the option to purchase the warranty separately, which is considered a separate performance
obligation on top of the assurance-type product warranty. For such warranties which provide
distinct service, revenue recognition occurs on a straight-line basis over the extended warranty
contract period. Occasionally, the company may offer a full or partial refund of consideration
previously paid, for example as part of the resolution to warranty related matters. In such instances,
a provision is recognized for the amounts expected to be refunded to customers, and remeasured
at each reporting date to reflect changes in the estimated refunds, with a corresponding
adjustment to revenue.
In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred
for sales commissions that are considered incremental to the contracts are recognized immediately
in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15
Revenue from Contracts with Customers.
Sale of goods
Revenues are recognized at a point in time when control of the goods passes to the buyer, based
on the allocation of the transaction price to the performance obligation.
Revenue from services
Revenues are recognized over time as the company transfers control of the services to the
customer, which is demonstrated by the customer simultaneously receiving and consuming the
benefits provided by the company. The amount of revenues is measured by reference to the
progress made toward complete satisfaction of the performance obligation, which in general is
evenly over time. Service revenue related to repair and maintenance activities for goods sold is
recognized ratably over the service period or as services are rendered.
Income from royalties
Royalty income from brand license arrangements and from intellectual property rights, such as
technology licenses or patents, is recognized on an accrual basis in accordance with the substance
of the relevant agreement.
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
The company recognizes contract liabilities if a payment is received or a payment is due (whichever
is earlier) from a customer before the company transfers the related goods or services. Contract
liabilities are recognized as revenue when the company performs under the contract (i.e., transfers
control of the related goods or services to the customer).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-587": { "value": "
6Income from operations
Accounting policies
Revenue recognition
The company recognizes revenue when it transfers control over a good or service to a customer, in
an amount that reflects the consideration (i.e., transaction price) to which the company expects to
be entitled in exchange for the good or service. The consideration expected by the company may
include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and
volume rebates. The company adjusts the consideration for the time value of money if the period
between the transfer of the promised goods or services to the customer and payment by the
customer exceeds six months.
Transfer of control varies depending on the individual terms of the contract of sale. For consumer-
type products in the Personal Health segment, control is transferred when the product is shipped
and delivered to the customer and title and risk have passed to the customer (depending on the
delivery conditions) and acceptance of the product has been obtained.
Revenues from transactions relating to distinct goods or services are accounted for separately based
on their relative stand-alone selling prices. The stand-alone selling price is the price that would be
charged for the goods or service in a separate transaction under similar conditions to similar
customers. The transaction price is determined (considering variable considerations) and allocated
to performance obligations based on their relative stand-alone selling prices. These transactions
mainly occur in the segments Diagnosis & Treatment and Connected Care and include
arrangements that require subsequent installation and training activities to make distinct goods
operable for the customer. As such, the related installation and training activities are part of
equipment sales rather than separate performance obligations. Revenue is recognized when the
performance obligation is satisfied, i.e., when the installation has been completed and the
equipment is ready to be used by the customer in the way contractually agreed.
Variable consideration is included in the transaction price to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognized will not occur once
associated uncertainties are resolved. Such assessment is performed on each reporting date to
check whether it is constrained. For products for which a right of return exists during a defined
period, revenue recognition is determined based on the historical pattern of actual returns, or in
cases where such information is not available, revenue recognition is postponed until the return
period has lapsed. Return policies are typically based on customary return arrangements in local
markets. A provision is recognized for assurance-type product warranty at the time of revenue
recognition and reflects the estimated costs of replacement and free-of-charge services that will be
incurred by the company with respect to the products sold. For certain products, the customer has
the option to purchase the warranty separately, which is considered a separate performance
obligation on top of the assurance-type product warranty. For such warranties which provide
distinct service, revenue recognition occurs on a straight-line basis over the extended warranty
contract period. Occasionally, the company may offer a full or partial refund of consideration
previously paid, for example as part of the resolution to warranty related matters. In such instances,
a provision is recognized for the amounts expected to be refunded to customers, and remeasured
at each reporting date to reflect changes in the estimated refunds, with a corresponding
adjustment to revenue.
In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred
for sales commissions that are considered incremental to the contracts are recognized immediately
in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15
Revenue from Contracts with Customers.
Sale of goods
Revenues are recognized at a point in time when control of the goods passes to the buyer, based
on the allocation of the transaction price to the performance obligation.
Revenue from services
Revenues are recognized over time as the company transfers control of the services to the
customer, which is demonstrated by the customer simultaneously receiving and consuming the
benefits provided by the company. The amount of revenues is measured by reference to the
progress made toward complete satisfaction of the performance obligation, which in general is
evenly over time. Service revenue related to repair and maintenance activities for goods sold is
recognized ratably over the service period or as services are rendered.
Income from royalties
Royalty income from brand license arrangements and from intellectual property rights, such as
technology licenses or patents, is recognized on an accrual basis in accordance with the substance
of the relevant agreement.
Accounting estimates and judgments
Sales-related accruals
The company has sales promotions-related agreements with distributors and retailers designed to
promote the sale of products. Among the programs are arrangements under which rebates and
discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or
for participating in specific marketing programs. Management estimates the sales-related accruals
associated with these arrangements based on a combination of historical patterns and future
expectations regarding which promotional targets are expected to be met by distributors and
retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right
to offset against the respective accounts receivable.
A breakdown by nature of the income (loss) from operations is as follows:
Philips Group
Sales and costs by nature in millions of EUR
2022
2023
2024
Sales
17,827
18,169
18,021
Costs of materials used
(4,320)
(4,626)
(4,213)
Employee benefit expenses
(6,952)
(6,903)
(6,641)
Depreciation and amortization\u00b9
(1,602)
(1,261)
(1,390)
Impairment of goodwill
(1,357)
(8)
Shipping and handling
(756)
(668)
(623)
Advertising and promotion
(739)
(700)
(791)
Lease expenses
(39)
(51)
(54)
Other operational costs
(3,609)
(3,535)
(3,351)
Other business income (expenses)
18
(533)
(429)
Income from operations
(1,529)
(115)
529
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Sales composition and disaggregation
For information related to sales on a segment and geographical basis, refer to Information by
segment and main country.
Philips Group
Sales composition in millions of EUR
2022
2023
2024
Goods
12,139
12,419
12,198
Services
4,878
4,926
5,003
Royalties
419
434
466
Total sales from contracts with customers
17,435
17,779
17,667
Sales from other sources
391
390
354
Total sales
17,827
18,169
18,021
Total sales from other sources mainly relates to operating leases EUR 222 million (2023: EUR 234
million; 2022: EUR 258 million). Sales represent revenue from external customers.
As of December\u00a031, 2024, the aggregate amount of the transaction price allocated to remaining
performance obligations from a sale of goods and services was EUR 15,632 million (2023 :15,571
million ) . The company expects to recognize approximately 56% of the remaining performance
obligations within 1 year . Revenue expected to be recognized beyond is mostly related to longer
term customer service and software contracts.
Sales over time represent services and Other also includes royalties over time (2024: EUR 277
million; 2023: EUR 283 million; 2022: EUR 292 million).
Sales per geographic area are reported based on country of destination.
Philips Group
Disaggregation of Sales per segment in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,655
3,070
8,725
65
8,790
Connected Care
2,959
1,886
4,845
289
5,134
Personal Health
3,471
15
3,486
3,486
Other
300
311
611
611
Philips Group
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per segment in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,768
2,980
8,749
76
8,825
Connected Care
2,970
1,854
4,824
314
5,138
Personal Health
3,586
16
3,602
3,602
Other
245
360
604
-
604
Philips Group
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per segment in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,295
2,954
8,248
55
8,303
Connected Care
3,079
1,853
4,932
336
5,268
Personal Health
3,615
11
3,626
3,626
Other
274
353
630
630
Philips Group
12,263
5,172
17,435
391
17,827
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,698
1,254
3,951
28
3,978
North America
4,958
2,602
7,560
93
7,655
Other mature geographies
893
401
1,294
231
1,526
Mature geographies
8,549
4,256
12,805
353
13,159
Growth geographies
3,836
1,026
4,861
1
4,863
Sales
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,552
1,221
3,770
49
3,819
North America
4,859
2,608
7,470
92
7,562
Other mature geographies
980
398
1,378
248
1,626
Mature geographies
8,392
4,227
12,618
389
13,007
Growth geographies
4,177
984
5,161
1
5,162
Sales
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,387
1,183
3,572
31
3,603
North America
4,889
2,612
7,502
86
7,588
Other mature geographies
972
399
1,369
274
1,643
Mature geographies
8,248
4,194
12,443
390
12,833
Growth geographies
4,015
978
4,992
1
4,993
Sales
12,263
5,172
17,435
391
17,827
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
Other current assets
Other current assets as of \u00a0 December\u00a031, 2024, totaled EUR 586 million ( 2023 : EUR 500 million ),
primarily contract assets of EUR 349 million ( 2023 : EUR 297 million ) and prepaid expenses of EUR
238 million (2023: EUR 197 million) mainly related to Diagnosis & Treatment Businesses and
Connected Care Businesses.
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
The company recognizes contract liabilities if a payment is received or a payment is due (whichever
is earlier) from a customer before the company transfers the related goods or services. Contract
liabilities are recognized as revenue when the company performs under the contract (i.e., transfers
control of the related goods or services to the customer).
Contract liabilities
Non-current contract liabilities were EUR 431 million as of December\u00a031, 2024 ( December\u00a031,
2023: EUR 469 million ) and current contract liabilities were EUR 1,699 million as of December\u00a031,
2024 ( December\u00a031, 2023 : EUR 1,809 million).
The current contract liabilities decreased by EUR 109 million , which is mainly driven by an decrease
in deferred balances for customer service contracts.
The current contract liabilities as of December\u00a031, 2023, resulted in revenue recognized of EUR
1,809 million in 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-580": { "value": "
6Income from operations
Accounting policies
Revenue recognition
The company recognizes revenue when it transfers control over a good or service to a customer, in
an amount that reflects the consideration (i.e., transaction price) to which the company expects to
be entitled in exchange for the good or service. The consideration expected by the company may
include fixed and/or variable amounts which can be impacted by sales returns, trade discounts and
volume rebates. The company adjusts the consideration for the time value of money if the period
between the transfer of the promised goods or services to the customer and payment by the
customer exceeds six months.
Transfer of control varies depending on the individual terms of the contract of sale. For consumer-
type products in the Personal Health segment, control is transferred when the product is shipped
and delivered to the customer and title and risk have passed to the customer (depending on the
delivery conditions) and acceptance of the product has been obtained.
Revenues from transactions relating to distinct goods or services are accounted for separately based
on their relative stand-alone selling prices. The stand-alone selling price is the price that would be
charged for the goods or service in a separate transaction under similar conditions to similar
customers. The transaction price is determined (considering variable considerations) and allocated
to performance obligations based on their relative stand-alone selling prices. These transactions
mainly occur in the segments Diagnosis & Treatment and Connected Care and include
arrangements that require subsequent installation and training activities to make distinct goods
operable for the customer. As such, the related installation and training activities are part of
equipment sales rather than separate performance obligations. Revenue is recognized when the
performance obligation is satisfied, i.e., when the installation has been completed and the
equipment is ready to be used by the customer in the way contractually agreed.
Variable consideration is included in the transaction price to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognized will not occur once
associated uncertainties are resolved. Such assessment is performed on each reporting date to
check whether it is constrained. For products for which a right of return exists during a defined
period, revenue recognition is determined based on the historical pattern of actual returns, or in
cases where such information is not available, revenue recognition is postponed until the return
period has lapsed. Return policies are typically based on customary return arrangements in local
markets. A provision is recognized for assurance-type product warranty at the time of revenue
recognition and reflects the estimated costs of replacement and free-of-charge services that will be
incurred by the company with respect to the products sold. For certain products, the customer has
the option to purchase the warranty separately, which is considered a separate performance
obligation on top of the assurance-type product warranty. For such warranties which provide
distinct service, revenue recognition occurs on a straight-line basis over the extended warranty
contract period. Occasionally, the company may offer a full or partial refund of consideration
previously paid, for example as part of the resolution to warranty related matters. In such instances,
a provision is recognized for the amounts expected to be refunded to customers, and remeasured
at each reporting date to reflect changes in the estimated refunds, with a corresponding
adjustment to revenue.
In the case of loss under a sales agreement, the loss is recognized immediately. Expenses incurred
for sales commissions that are considered incremental to the contracts are recognized immediately
in the consolidated statements of income as selling expenses as a practical expedient under IFRS 15
Revenue from Contracts with Customers.
Sale of goods
Revenues are recognized at a point in time when control of the goods passes to the buyer, based
on the allocation of the transaction price to the performance obligation.
Revenue from services
Revenues are recognized over time as the company transfers control of the services to the
customer, which is demonstrated by the customer simultaneously receiving and consuming the
benefits provided by the company. The amount of revenues is measured by reference to the
progress made toward complete satisfaction of the performance obligation, which in general is
evenly over time. Service revenue related to repair and maintenance activities for goods sold is
recognized ratably over the service period or as services are rendered.
Income from royalties
Royalty income from brand license arrangements and from intellectual property rights, such as
technology licenses or patents, is recognized on an accrual basis in accordance with the substance
of the relevant agreement.
Shipping and handling
Expenses incurred for shipping and handling are mainly recorded as cost of sales. When shipping
and handling are part of a project and billed to the customer, then the related expenses are
recorded as cost of sales. Shipping and handling related to sales to third parties are partly recorded
as selling expenses. When shipping and handling billed to customers are considered a distinct and
separate performance obligation, the fees are recognized as revenue and costs included in cost of
sales.
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.
Government grants
Grants from governments are recognized at their fair value when there is a reasonable assurance
that the grant will be received and the company will comply with the conditions. Grants related to
costs are deferred in the consolidated balance sheet and recognized in the consolidated statement
of income as a reduction of the related costs that they are intended to compensate. Grants related
to assets are deducted from the cost of the asset and presented net in the consolidated balance
sheets.
Accounting estimates and judgments
Sales-related accruals
The company has sales promotions-related agreements with distributors and retailers designed to
promote the sale of products. Among the programs are arrangements under which rebates and
discounts can be earned by the distributors and retailers by attaining agreed upon sales levels, or
for participating in specific marketing programs. Management estimates the sales-related accruals
associated with these arrangements based on a combination of historical patterns and future
expectations regarding which promotional targets are expected to be met by distributors and
retailers. Accrued customer rebates are presented as other current liabilities, unless there is a right
to offset against the respective accounts receivable.
A breakdown by nature of the income (loss) from operations is as follows:
Philips Group
Sales and costs by nature in millions of EUR
2022
2023
2024
Sales
17,827
18,169
18,021
Costs of materials used
(4,320)
(4,626)
(4,213)
Employee benefit expenses
(6,952)
(6,903)
(6,641)
Depreciation and amortization\u00b9
(1,602)
(1,261)
(1,390)
Impairment of goodwill
(1,357)
(8)
Shipping and handling
(756)
(668)
(623)
Advertising and promotion
(739)
(700)
(791)
Lease expenses
(39)
(51)
(54)
Other operational costs
(3,609)
(3,535)
(3,351)
Other business income (expenses)
18
(533)
(429)
Income from operations
(1,529)
(115)
529
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Sales composition and disaggregation
For information related to sales on a segment and geographical basis, refer to Information by
segment and main country.
Philips Group
Sales composition in millions of EUR
2022
2023
2024
Goods
12,139
12,419
12,198
Services
4,878
4,926
5,003
Royalties
419
434
466
Total sales from contracts with customers
17,435
17,779
17,667
Sales from other sources
391
390
354
Total sales
17,827
18,169
18,021
Total sales from other sources mainly relates to operating leases EUR 222 million (2023: EUR 234
million; 2022: EUR 258 million). Sales represent revenue from external customers.
As of December\u00a031, 2024, the aggregate amount of the transaction price allocated to remaining
performance obligations from a sale of goods and services was EUR 15,632 million (2023 :15,571
million ) . The company expects to recognize approximately 56% of the remaining performance
obligations within 1 year . Revenue expected to be recognized beyond is mostly related to longer
term customer service and software contracts.
Sales over time represent services and Other also includes royalties over time (2024: EUR 277
million; 2023: EUR 283 million; 2022: EUR 292 million).
Sales per geographic area are reported based on country of destination.
Philips Group
Disaggregation of Sales per segment in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,655
3,070
8,725
65
8,790
Connected Care
2,959
1,886
4,845
289
5,134
Personal Health
3,471
15
3,486
3,486
Other
300
311
611
611
Philips Group
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per segment in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,768
2,980
8,749
76
8,825
Connected Care
2,970
1,854
4,824
314
5,138
Personal Health
3,586
16
3,602
3,602
Other
245
360
604
-
604
Philips Group
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per segment in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Diagnosis & Treatment
5,295
2,954
8,248
55
8,303
Connected Care
3,079
1,853
4,932
336
5,268
Personal Health
3,615
11
3,626
3,626
Other
274
353
630
630
Philips Group
12,263
5,172
17,435
391
17,827
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2024
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,698
1,254
3,951
28
3,978
North America
4,958
2,602
7,560
93
7,655
Other mature geographies
893
401
1,294
231
1,526
Mature geographies
8,549
4,256
12,805
353
13,159
Growth geographies
3,836
1,026
4,861
1
4,863
Sales
12,385
5,282
17,667
354
18,021
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2023
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,552
1,221
3,770
49
3,819
North America
4,859
2,608
7,470
92
7,562
Other mature geographies
980
398
1,378
248
1,626
Mature geographies
8,392
4,227
12,618
389
13,007
Growth geographies
4,177
984
5,161
1
5,162
Sales
12,569
5,210
17,779
390
18,169
Philips Group
Disaggregation of Sales per geographic area in millions of EUR
2022
Sales at a
point in time
Sales over time
Total sales
from contracts
with
customers
Sales from
other sources
Total sales
Western Europe
2,387
1,183
3,572
31
3,603
North America
4,889
2,612
7,502
86
7,588
Other mature geographies
972
399
1,369
274
1,643
Mature geographies
8,248
4,194
12,443
390
12,833
Growth geographies
4,015
978
4,992
1
4,993
Sales
12,263
5,172
17,435
391
17,827
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
2022
2023
2024
Salaries and wages excluding share-based
compensation
5,594
5,635
5,356
Share-based compensation
104
97
104
Post-employment benefit costs
439
402
388
Other social security and similar charges:
Required by law
590
567
580
Voluntary
225
202
211
Employee benefit expenses
6,952
6,903
6,641
The employee benefit expenses relate to employees who are working on the payroll of Philips, both
with permanent and temporary contracts.
For further information on post-employment benefit costs, refer to Post-employment benefits.
For details on the remuneration of the members of the Board of Management and the Supervisory
Board, refer to Information on remuneration.
Employees
The number (full-time equivalents, or FTEs) of employees by category at year-end is summarized as
follows:
Philips Group
Employees by category in FTEs as of December 31
2022
2023
2024
Production
30,689
28,640
27,478
Research & development
14,169
12,035
10,843
Other
29,082
26,818
27,795
Employees
73,941
67,493
66,116
Third-party workers
3,292
2,163
1,708
Philips Group
77,233
69,656
67,823
Employees consist of those persons working on the payroll of Philips and whose costs are reflected
in employee benefit expenses. Other consists of employees in commercial, general and
administrative functions. Third-party workers consist of personnel hired on a per-period basis, via
external companies.
Philips Group
Employees by geographical location in average FTEs
2022
2023
2024
Netherlands
11,180
9,794
8,844
Other countries
67,357
62,471
60,113
Philips Group
78,538
72,264
68,956
Depreciation and amortization
Depreciation of property, plant and equipment and amortization of intangible assets, including
impairments, are as follows:
Philips Group
Depreciation and amortization1 in millions of EUR
2022
2023
2024
Depreciation of property, plant and equipment
711
689
696
Amortization of software
117
98
102
Amortization of acquired intangible assets
363
290
392
Amortization of development costs
411
184
199
Depreciation and amortization
1,602
1,261
1,390
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Depreciation of property, plant and equipment is mainly included in cost of sales. Amortization of
software is mainly included in general and administration expenses. Amortization of other
intangible assets is included in selling expenses for brand names and customer relationships and is
included in cost of sales for technology-based and other intangible assets. Amortization of
development costs is included in research and development expenses.
Impairment of goodwill
There were no goodwill impairment charges in 2024. In 2023, a goodwill charge of EUR 8 million
was recorded for the partial impairment of goodwill allocated to a business that was classified as
held-for-sale as of December\u00a031, 2023. For further information refer to Goodwill.
Shipping and handling
Shipping and handling costs are included in cost of sales and selling expenses in the Consolidated
statements of income.
Advertising and promotion
Advertising and promotion costs are included in selling expenses in the Consolidated statements of
income.
Lease expense
Lease expense relates to short-term and low value leases.
Other operational costs
Other operational costs contain items which are dissimilar in nature and individually insignificant in
amount to disclose separately. These costs contain, among others, expenses for outsourcing
services, mainly in Information Technology and Human Resources, third-party workers, consultants,
warranty, patents, costs for travelling and external legal services. Government grants of EUR 91
million were recognized as a cost reduction in 2024 (2023: EUR 95 million; 2022: EUR 103
million).The grants mainly relate to research and development activities and business development.
Audit and audit-related fees
The following table shows the fees attributable to the fiscal years 2022, 2023 and 2024 for services
rendered by the external auditors.
Philips Group
Audit and audit-related fees in millions of EUR
2022
2023
2024
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
Audit fees
9.5
5.6
15.2
9.9
5.0
14.9
8.9
5.5
14.4
consolidated
financial
statements
9.5
3.1
12.6
9.9
2.6
12.5
8.9
3.0
11.9
statutory
financial
statements
2.5
2.5
2.5
2.5
2.5
2.5
Audit-related
fees\u00b2
0.8
0.2
1.0
0.9
0.2
1.1
1.9
0.3
2.2
sustainability
assurance
0.6
0.6
0.8
0.8
1.6
1.6
other
0.1
0.2
0.3
0.2
0.2
0.3
0.3
0.3
0.6
Tax fees
All other fees
Fees
10.3
5.8
16.2
10.8
5.2
16.1
10.8
5.7
16.6
1EY Accountants B.V.
2Also 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
2022
2023
2024
Result on disposal of businesses:
income
4
50
27
expenses
-
-
(14)
Result on disposal of fixed assets:
income
3
12
3
expenses
(1)
(1)
-
Result on other remaining businesses:
income
121
49
560
expenses
(109)
(643)
(1,005)
Other business income (expenses)
18
(533)
(429)
Total other business income
127
112
590
Total other business expenses
(109)
(645)
(1,019)
The result on disposal of businesses mainly relates to income (expense) in the respective periods for
divestments of non-strategic businesses. For more information refer to Acquisitions and
divestments.
The result on disposal of fixed assets mainly relates to the sale of real estate assets.
The result on other remaining businesses mainly relates to the revaluation of contingent
consideration and various legal matters. In 2024, Philips Respironics recorded a EUR 984 million
provision in connection with the settlement of the Respironics personal injury and the medical
monitoring claims in the US. Philips Respironics recorded insurance income of EUR 538 million in
connection with the agreement with insurers to partially reimburse the Respironics recall-related
product liability claims. For more information on contingent consideration, refer to Provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-599": { "value": "
6Income from operations
Other business income (expenses)
Other business income (expenses) consists of the following:
Philips Group
Other business income (expenses) in millions of EUR
2022
2023
2024
Result on disposal of businesses:
income
4
50
27
expenses
-
-
(14)
Result on disposal of fixed assets:
income
3
12
3
expenses
(1)
(1)
-
Result on other remaining businesses:
income
121
49
560
expenses
(109)
(643)
(1,005)
Other business income (expenses)
18
(533)
(429)
Total other business income
127
112
590
Total other business expenses
(109)
(645)
(1,019)
The result on other remaining businesses mainly relates to the revaluation of contingent
consideration and various legal matters. In 2024, Philips Respironics recorded a EUR 984 million
provision in connection with the settlement of the Respironics personal injury and the medical
monitoring claims in the US. Philips Respironics recorded insurance income of EUR 538 million in
connection with the agreement with insurers to partially reimburse the Respironics recall-related
product liability claims. For more information on contingent consideration, refer to Provisions.
19Provisions
Accounting policies
A provision is a liability of uncertain timing or amount. Provisions are recognized if, as a result of a
past event, the company has a present legal or constructive obligation, it is probable that an
outflow of economic benefits will be required to settle the obligation and the amount can be
estimated reliably. Provisions are measured at the present value of the expenditures expected to be
required to settle the obligation using a pre-tax discount rate that reflects current market
assessments of the time value of money. The increase in the provision due to passage of time
(accretion) is recognized as interest expense.
Restructuring-related provisions
Provisions for severance and termination benefits are recognized for those costs only when the
company has a detailed formal plan for the restructuring and has raised a valid expectation with
those affected that it will carry out the restructuring by starting to implement that plan or
announcing its main features to those affected by it. Before a provision is established, the company
recognizes any impairment loss on the assets associated with the restructuring.
Accounting estimates and judgments
By their nature, the recognition of provisions requires estimates and assumptions regarding the
timing and the amount of outflow of resources. The main estimates include:
\u2022 Product warranty provisions \u2013 the provisions for assurance-type product warranty reflect the
estimated costs of replacement and free-of-charge services that will be incurred by the company
with respect to products sold and include costs to execute quality remediation and related field
actions (including the Respironics field action). These require management to make estimates
and assumptions about items such as quantities and the portion of products to be remediated
through replacement, repair or (partial) refund.
\u2022 Environmental provisions \u2013 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. The impact of climate change is also
considered when assessing whether Philips has a present legal or constructive obligation,
particularly in relation to fines, penalties and commitments to reduce greenhouse gas emissions.
\u2022 Legal provisions \u2013 provisions for legal claims and investigations reflect the best estimate of the
outflow of resources, supported by internal and external legal counsel, when it is probable that
such outflow of resources will be required to settle an obligation.
\u2022 Contingent consideration provisions \u2013 the provision for contingent consideration reflects the
fair value of the expected payment to former shareholders of an acquired company for the
exchange of control if specified future events occur or conditions are met, such as the
achievement of certain regulatory milestones or the achievement of certain commercial
milestones. The provision for contingent consideration can change significantly due to changes
in the estimated achievement of milestones and changes in discount rates. Changes in fair value
of the contingent consideration liability are reflected in other business income (expenses).
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Additions
81
439
9
131
1,015
5
185
1,865
Utilizations
(76)
(507)
(15)
(127)
(477)
(9)
(124)
(1,336)
Releases
(5)
(15)
-
(26)
(28)
(3)
(35)
(113)
Accretion
5
38
3
(1)
45
Changes in discount rate
(7)
-
(8)
Translation differences and other
2
(24)
4
(1)
44
3
(8)
21
Total change
3
(107)
(5)
(23)
592
(2)
16
474
Current
522
20
77
1,066
61
229
1,977
Non-current
560
63
76
16
13
52
216
996
Balance as of December 31, 2024
560
585
96
94
1,079
113
446
2,972
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
\u00a0warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
653
20
134
74
23
112
1,018
Non-current
546
80
83
6
14
89
279
1,097
Balance as of December 31, 2022
546
733
104
140
89
113
390
2,115
Additions
112
553
18
263
644
24
223
1,836
Utilizations
(91)
(553)
(14)
(219)
(235)
(20)
(134)
(1,266)
Releases
(10)
(20)
(2)
(67)
(10)
(7)
(45)
(159)
Accretion
5
23
1
(3)
25
Acquisitions
6
6
Changes in discount rate
(6)
(6)
Translation differences and other
-
(22)
(3)
(2)
(23)
(2)
(1)
(53)
Total change
12
(42)
(2)
(24)
399
2
39
383
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Post-employment benefits
For details of post-employment benefits refer to Post-employment benefits .
Product warranty provisions
Product warranty provisions include costs to execute quality remediation and related field actions,
as well as the field action provision in connection with the Philips Respironics voluntary recall
notification which is explained separately below. The company expects the provisions to be utilized
mainly within 2025.
Additions in 2024 include quality remediation and related field actions of EUR 137 million and EUR
139 million in the Diagnosis & Treatment and Connected Care segments, respectively, mainly for
the following matters:
Trilogy EVO and Trilogy EV300
In September 2024, Philips issued a field safety notice to customers of its Trilogy EVO and Trilogy
EV300 ventilators, regarding a potential contamination issue when the ventilator is used in
combination with in-line nebulizers. This notification was updated in November 2024 with
additional customer instructions. Philips is in the process of commencing the necessary remediation
actions.
Respironics field-action provision
On June 14, 2021, Philips subsidiary Philips Respironics initiated a voluntary recall notification in the
US and field safety notice outside the US for certain sleep and respiratory care products related to
the polyester-based polyurethane (PE-PUR) sound abatement foam in these devices. The
remediation is progressing globally. The total number of units expected to be remediated as of
December\u00a031, 2024 is 5.1 million (2023: 5.6 million) devices globally. The decrease in units is
mainly due to current insights regarding the number of units that are not expected to be returned
to Philips or where key data collection efforts to perform remediation have been exhausted.
Philips has recognized a provision based on Philips\u2019 best estimate of the costs to repair, replace or
refund devices, subject to the Respironics field action. The provision is related to the cost to repair,
replace or provide financial compensation for affected devices and includes, among others, the
costs for the remaining production, the cost of intensified communication with physicians and
patients, material costs, labor cost and logistics, as well as costs relating to financial compensation
provided to customers under the field action. The provision does not include any product liability
costs or other claims.
Philips Group
Respironics field-action provision in millions of EUR
2023
2024
Balance as of January 1
390
334
Additions
240
30
Utilizations
(285)
(220)
Translation differences and other
(10)
(14)
Balance as of December 31
334
130
Utilizations for the year reflect the costs incurred in executing the remediation during the year.
The completion of the field action continues to be subject to uncertainty, which requires
management to make estimates and assumptions about items such as quantities and the portion to
be replaced, repaired and subject to financial compensation. An increase in the assumption for the
financial compensation portion by 10 percentage points could have the effect of increasing the
provision by an estimated EUR 18 million. Actual outcomes in future periods may differ from these
estimates and affect the company\u2019s results of operations, financial position and cash flows.
Further to the above, field-action running remediation costs during the year of EUR 133 million
(2023: EUR 224 million, 2022: EUR 210 million ), such as testing, external advisory and regulatory
response and additional right-of-return and warranty provisions, have been incurred.
Philips and its affiliates are defendants in a number of consumer class action lawsuits from users of
the affected devices and a number of individual personal injury and other compensation claims. For
legal matters including claims refer to the legal provisions section of this note as well as
Contingencies.
Environmental provisions
The environmental provisions include accrued costs recorded with respect to environmental
remediation in various countries. In the US, subsidiaries of the company have been named as
potentially responsible parties in state and federal proceedings for the clean-up of certain sites.
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.
Approximately EUR 65 million of the long-term provision is expected to be utilized after one to five
years, with the remainder after five years. For more details on the environmental remediation refer
to Contingencies.
Restructuring-related provisions
Philips Group
Restructuring-related provisions\u00a0in millions of EUR
December 31, 2023
December 31, 2024
Diagnosis & Treatment
36
34
Connected Care
18
19
Personal Health
7
15
Other
56
26
Philips Group
116
94
In 2024, the most significant restructuring projects impacted segments Other and Connected Care
and mainly took place in the US and the Netherlands. 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.
In 2024, Philips continued general productivity actions aimed at simplifying the organization as part
of its multi-year plan designed to create value with sustainable impact. This included the further
reduction of 2,000 roles, thereby completing the planned reduction of 10,000 roles globally across
the organization by 2025 ahead of schedule. Severance and termination-related costs of EUR 140
million were recorded in 2023.
Legal provisions
The company and certain of its group companies and former group companies are involved as a
party in legal proceedings, including regulatory and other governmental proceedings.
Additions mainly relate to the legal provision in connection with the settlement of Respironics
personal injury and medical monitoring claims in the US of EUR 982 million (discounted). Under the
settlement Philips Respironics has agreed to pay a total of USD 1.1 billion. Most of the related
payments are expected in 2025. In the first half of 2024 Philips Respironics recorded insurance
income of EUR 538 million in connection with the agreement with insurers to partially reimburse
the Respironics recall related product liability claims. This amount was paid in full to the company in
2024.
Utilizations of EUR 477 million mainly relate to the economic loss class action settlement in the US
that was paid in 2024.
For details of other legal matters, including regulatory and other governmental proceedings, refer
to Contingencies .
The company expects the provisions to be utilized mainly within the next three years.
Contingent consideration provisions
There is no material movement in 2024 and approximately EUR 21 million of the long-term
provision is expected to be utilized within the next three years, with the remainder after four years.
Other provisions
The main elements of other provisions are:
Philips Group
Other provisions in millions of EUR unless otherwise stated
2023
2024
Other long-term employee benefits
77
80
Self-insurance
63
60
Non-income taxes / social security
51
48
Rights of return
39
44
Decommissioning costs
34
37
Onerous contracts
76
66
Remaining
89
111
Balance as of December 31
429
446
Onerous contracts reflect non-cancellable commitments on supplies for which no future demand or
alternative usage has been identified.
Remaining provisions relate to a variety of positions, for example provision for disability of
employees and provision for royalty obligations.
Releases in 2023 and 2024 are due to the reassessment of the positions in other provisions
throughout the year.
The company expects the other provisions to be utilized mainly within the next five years.
20Post-employment benefits
Accounting policies
Defined benefit plans
A defined benefit plan is a post-employment benefit plan that is not a defined contribution plan.
Defined benefit plans define an amount of pension benefit that an employee will receive after
retirement. That pension benefit typically depends on several factors such as years of service, age
and salary.
The net pension asset or liability recognized in the Consolidated balance sheets in respect of
defined benefit plans is the fair value of plan assets less the present value of the projected defined
benefit obligation at the balance sheet 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\u2019s major plans, a full discount rate curve of high-quality corporate bonds is used to
determine the defined benefit obligation, where available. The curves are based on the Mercer
Yield Curve methodology, which uses data of corporate bonds rated AA or equivalent. For the
other plans the Mercer Yield Curve/Mercer Methodology has also been used taking into account
the cash flows as much as possible in case there is a deep market in corporate bonds. For plans in
countries without a deep corporate bond market, the discount rate is based on government bonds
and the plan\u2019s maturity.
Pension costs with respect to defined benefit plans primarily represent the increase of the actuarial
present value of the obligation for post-employment benefits based on employee service during the
year and the interest on the net recognized asset or liability with respect to employee service in
previous years.
Remeasurements of the net defined benefit asset or liability comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The
company recognizes all remeasurements in Other comprehensive income.
Past service costs arising from the introduction of a change to the benefit payable under a plan or a
significant reduction of the number of employees covered by a plan (curtailment) are recognized in
full in the Consolidated statements of income.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided. The company recognizes a liability and an expense for bonuses
and incentives based on a formula that takes into consideration the profit attributable to the
company\u2019s shareholders after certain adjustments.
The company\u2019s net obligation with respect to other long-term employee benefits is the amount of
future benefit that employees have earned in return for their service in the current and prior
periods, such as jubilee entitlements. That benefit is discounted to determine its present value.
Remeasurements are recognized in the Consolidated statements of income in the period in which
they arise.
Further information on other long-term employee benefits can be found in Provisions in the Other
provisions section.
Accounting estimates and judgments
To make the actuarial calculations for the valuation of defined benefit obligations, assumptions are
needed for interest rates, healthcare cost increases, future pension increases, life expectancy and
employee turnover rates. The actuarial calculations are made by external actuaries based on inputs
from observable market data, such as corporate bond returns and yield curves to determine the
discount rates to apply, mortality tables to determine life expectancy and inflation rates to
determine future salary and pension growth assumptions.
Employee post-employment benefit plans have been established in many countries in accordance
with the legal requirements, customs and the local practice in the countries involved. The larger
part of post-employment benefits are company pension plans, of which some are funded and some
are unfunded. All funded post-employment benefit plans are considered to be related parties.
Most employees who 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 US. The company also
sponsors a number of defined benefit (DB) pension plans. The benefits provided by these plans are
based on employees\u2019 years of service and compensation levels.
The company also sponsors a limited number of DB retiree medical plans. The benefits provided by
these plans typically cover a part of the healthcare costs after retirement. None of these plans are
individually significant to the company and are therefore not further separately disclosed.
The larger funded DB and DC plans are governed by independent Trustees who have a legal
obligation to protect the interests of all plan members and operate under the local regulatory
framework.
The DB plans in Germany and the US make up most of the defined benefit obligation (DBO) and
the net position. The company also has DB plans in the rest of the world; however these are
individually not significant to the company and do not have a significantly different risk profile that
would warrant separate disclosure.
The adjacent table provides a breakdown of the present value of the funded and unfunded DBO,
the fair value of plan assets and the net position in Germany, the US and in other countries. The
table also provides the value of reimbursement rights.
Philips Group
Post-employment benefits in millions of EUR
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Present value of funded
DBO
(511)
(531)
(404)
(416)
(182)
(205)
(1,097)
(1,152)
Present value of
unfunded DBO
(253)
(242)
(118)
(131)
(137)
(134)
(508)
(507)
Total present value
of DBO
(764)
(773)
(522)
(547)
(319)
(339)
(1,605)
(1,659)
Fair value of plan assets
481
496
442
465
166
189
1,089
1,150
Asset ceiling
(1)
(1)
Net position
(283)
(277)
(80)
(82)
(153)
(151)
(516)
(510)
Value of
reimbursement rights
8
7
8
7
The classification of the net position is as follows: :
Philips Group
Classification net position in millions of EUR
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Total asset for plans in
a surplus
-
-
39
49
2
1
41
50
Total liability for plans
in a deficit
(283)
(277)
(118)
(131)
(156)
(152)
(558)
(560)
Net position
(283)
(277)
(80)
(82)
(153)
(151)
(516)
(510)
Germany
The company has several DB plans in Germany, some of which are unfunded. The plan assets of
the funded DB plans in Germany are held in a legally separate pension trust.
Due to the relatively high level of social security in Germany, the company\u2019s pension plans mainly
provide benefits for the higher earners. The plans are open for future pension accrual. Indexation is
mandatory due to legal requirements. Some of the German plans have a DC design, but are
accounted for as DB plans due to a legal minimum return requirement.
Company pension commitments in Germany are largely protected against employer bankruptcy via
the \u201cPensions-Sicherungs-Verein\u201d 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.
United States
The US DB pension plans are closed plans without future pension accrual. For the funding of any
deficit in the US plan the Group adheres to the minimum funding requirements of the US Pension
Protection Act.
The assets of the US funded pension plans are in Trusts governed by fiduciaries. The non-qualified
pension plans that cover accrual above the maximum salary of the funded qualified plan are
unfunded.
The company\u2019s qualified pension commitments in the US are covered via the Pension Benefit
Guaranty Corporation, which charges a fee to US companies providing DB pension plans. The fee is
also dependent on the amount of unfunded vested liabilities.
Philips has announced to plan participants the intent to fully terminate the US qualified defined
benefit pension plans in 2025. The announcements made did not impact the accounting for these
plans during 2024 and the anticipated settlement, if and when completed, is not expected to have
a material impact to the company\u2019s results or cash flows in 2025.
Risks related to DB plans
DB plans expose the company to various demographic and economic risks such as longevity risk,
investment risks, currency and interest rate risk and in some cases inflation risk. The latter plays a
role in the assumed wage increase but more importantly in some countries where indexation of
pensions is mandatory.
The company has an active de-risking strategy in which it constantly looks for opportunities to
reduce the risks associated with its DB plans. Liability-driven investment strategies, lump sum cash-
out options, buy-ins, buy-outs and a change to DC are examples of the strategy.
Investment policy in the largest pension plans
Plan assets are managed in legally separate pension trusts, primarily overseen by independent
trustees, who bear full responsibility for and have complete discretion over the investment strategy
for these plan assets. The plan assets of the Philips pension plans are invested in well-diversified
portfolios. For most plans, the interest rate sensitivity of the fixed income portfolio is closely aligned
with that of the plan\u2019s pension liabilities. Contributions from the sponsoring company are primarily
directed toward increasing the fixed income allocation. Additionally, in most investment strategies,
any structural improvement in the plan's funded ratio over time is used to further reduce 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
2022
2023
2024
Defined benefit plans
50
47
43
- included in income from operations
39
25
23
- included in financial expense
10
21
20
- included in Discontinued operations
-
-
Defined contribution plans
400
376
365
- included in income from operations
400
376
365
- included in Discontinued operations
-
-
Post-employment benefits costs
449
423
408
Summary of the reconciliations for the DBO and plan assets
The adjacent tables contain the reconciliations for the DBO and plan assets.
Philips Group
Defined benefit obligations in millions of EUR
2023
2024
Balance as of January 1
1,621
1,605
Service cost
32
29
Interest cost
71
65
Employee contributions
3
4
Actuarial (gains) / losses
- demographic assumptions
-
- financial assumptions
48
20
- experience adjustment
2
9
(Negative) past service cost
(9)
(7)
Settlements
2
1
Benefits paid from plan
(104)
(63)
Benefits paid directly by employer
(39)
(36)
Translation differences and other
(22)
32
Balance as of December 31
1,605
1,659
Philips Group
Plan assets in millions of EUR
2023
2024
Balance as of January 1
1,122
1,089
Interest income on plan assets
49
45
Admin expenses paid
(1)
(1)
Return on plan assets excluding interest income
23
13
Employee contributions
3
4
Employer contributions
14
30
Settlements
-
Benefits paid from plan
(104)
(63)
Translation differences and other
(17)
33
Balance as of December 31
1,089
1,150
The past service costs in 2024 mainly relate to the retiree medical plans in Brazil and the pension
plan in Switzerland. The past service costs in 2023 mainly relate to the retiree medical plans in
Brazil.
Plan assets allocation
The asset allocation in the company\u2019s DB plans as of December 31, 2024, was as follows:
Philips Group
Plan assets allocation in millions of EUR
2023
2024
Assets quoted in active markets
- Debt securities
513
460
- Equity securities
12
- Other1
182
431
Assets not quoted in active markets
- Debt securities
-
- Equity securities
31
-
- Other\u00b9
363
247
Total assets
1,089
1,150
1Other assets are primarily composed of cash and cash equivalents, real estate, investment funds, and assets
managed by insurance companies.
The plan assets in 2024 contain 22% (2023: 36%) unquoted plan assets. Plan assets in 2024 do
not include property occupied by or financial instruments issued by the company.
Assumptions
The mortality tables used for the company\u2019s largest DB plans are:
Germany: Heubeck-Richttafeln 2018 Generational, assuming 93% of mortality rates for male
retirees between ages 60 and 85. US: PRI-2012 Generational with MP2021 improvement scale +
white collar adjustment.
The weighted averages of the assumptions used to calculate the DBO were as follows:
Philips Group
Assumptions used for defined benefit obligations\u00a0in %
as of December 31,
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Discount rate
3.7%
3.3%
5.0%
5.1%
4.9%
4.2%
4.3%
4.0%
Inflation rate
2.0%
2.0%
2.3%
2.3%
2.5%
2.2%
2.2%
2.1%
Salary increase
2.8%
2.8%
0.0%
0.0%
4.3%
4.4%
3.0%
3.1%
Sensitivity analysis
The following table illustrates the approximate impact on the DBO from movements in key
assumptions. The DBO was recalculated using a change in the assumptions of 1% which overall is
considered a reasonably possible change. The impact on the DBO because of changes in discount
rate is normally accompanied by offsetting movements in plan assets, especially when using
matching strategies.
The average duration in years of the DBO of the DB plans is 10 (Germany: 11, US: 8, and other
countries: 10) as of December\u00a031, 2024 (2023: 10).
Philips Group
Sensitivity of key assumptions in millions of EUR
2023
2024
Increase
Discount rate (1% movement)
(123)
(123)
Pension increase (1% movement)
60
60
Salary increase (1% movement)
12
14
Longevity\u00b9
32
34
Decrease
Discount rate (1% movement)
147
150
Pension increase (1% movement)
(52)
(52)
Salary increase (1% movement)
(11)
(12)
Longevity\u00b9
(22)
(24)
1The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on
the DBO of a further 10% decrease / increase in the assumed rates of mortality for the company\u2019s major
plans. A 10% decrease / increase in assumed mortality rates equals a change of life expectancy by 0.5\u00a0- 1
year.
Cash flows and costs in 2025
Cash outflows in relation to post-employment benefits are estimated to amount to EUR 421 million
in 2025, consisting of:
\u2022 EUR 24 million employer contributions to DB plans (Germany: EUR 11 million, US: EUR 0 million ,
other countries: EUR 13 million);
\u2022 EUR 45 million cash outflows in relation to DB plans (Germany: EUR 21 million, US: EUR 10
million, Other Countries: EUR 14 million); and
\u2022 EUR 352 million employer contributions to DC plans (Netherlands: EUR 142 million, US: EUR 144
million, Other Countries: EUR 66 million).
The service and administration cost for 2025 is expected to amount to EUR 33 million for DB plans.
The net interest cost for 2025 for the DB plans is expected to amount to EUR 18 million. The cost
for DC pension plans in 2025 is equal to the expected DC cash flow.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-598": { "value": "
6Income from operations
Impairment of goodwill
There were no goodwill impairment charges in 2024. In 2023, a goodwill charge of EUR 8 million
was recorded for the partial impairment of goodwill allocated to a business that was classified as
held-for-sale as of December\u00a031, 2023. For further information refer to Goodwill.
10Property, plant and equipment
Accounting policies
Property, plant and equipment are reviewed for impairment whenever events or changes in
circumstances indicate that the book value of the assets concerned may not be recoverable. An
impairment loss is recognized for the amount by which the asset's book value exceeds their
recoverable amount. Impairments are reversed if and to the extent that the impairment no longer
exists. The recoverable amount is defined as the higher of the asset\u2019s fair value less costs of disposal
and its value in use.
Accounting estimates and judgments
Impairment of owned and right-of-use assets
Judgments are required, not only to determine whether there is an indication that an asset may be
impaired, but also whether indications exist that impairment losses previously recognized may no
longer exist or may have decreased (impairment reversal). After indications of impairment have
been identified, estimates and assumptions are used in the determination of the recoverable
amount of a fixed asset. These involve estimates of expected future cash flows (based on future
growth rates and remaining useful life) and residual value assumptions, as well as discount rates to
calculate the present value of the future cash flows.
Philips Group
Property, plant and equipment\u00a0 in millions of EUR
Owned assets
Right-of-use assets
Property, plant
and equipment
Land and
buildings
Machinery and
installations
Other
equipment
Assets under
construction
Total
Land and
buildings
Other
equipment
Total
Total
Balance as of January 1, 2024
Cost
1,114
1,731
1,404
274
4,521
1,425
216
1,641
6,162
Accumulated depreciation
(638)
(1,278)
(1,041)
(2,957)
(619)
(104)
(722)
(3,679)
Book value
476
453
363
274
1,565
806
113
919
2,483
Additions
2
134
76
236
448
101
87
189
637
Assets available for use
12
70
140
(248)
(26)
26
-
26
-
Depreciation
(49)
(191)
(166)
(406)
(146)
(56)
(202)
(608)
Impairments
(14)
(23)
(28)
-
(65)
(23)
-
(23)
(89)
Transfers to assets classified as held for sale
-
-
-
Reclassifications
7
(6)
8
(1)
8
(9)
(3)
(12)
(4)
Translation differences and other
20
2
9
10
41
(6)
(4)
(10)
31
Total change
(22)
(13)
38
(3)
1
(57)
24
(33)
(32)
Balance as of December 31, 2024
Cost
1,151
1,790
1,527
271
4,738
1,462
241
1,702
6,441
Accumulated depreciation
(697)
(1,350)
(1,126)
(3,173)
(712)
(104)
(816)
(3,989)
Book value
454
440
401
271
1,565
749
137
886
2,452
Philips Group
Property, plant and equipment\u00a0in millions of EUR\u00a0
Owned assets
Right-of-use assets
Property, plant
and equipment
Land and
buildings
Machinery and
installations
Other
equipment
Assets under
construction
Total
Land and
buildings
Other
equipment
Total
Total
Balance as of January 1, 2023
Cost
1,135
1,779
1,454
309
4,676
1,365
206
1,571
6,247
Accumulated depreciation
(621)
(1,291)
(1,046)
(2,958)
(543)
(108)
(651)
(3,609)
Book value
514
488
408
309
1,718
822
98
919
2,638
Additions
1
115
77
239
433
175
62
236
669
Assets available for use
20
90
144
(262)
(8)
2
6
8
-
Depreciation
(56)
(196)
(167)
(420)
(150)
(51)
(201)
(621)
Impairments
(5)
(23)
(17)
-
(45)
(23)
-
(23)
(68)
Transfers to assets classified as held for sale
(1)
(1)
(45)
(46)
(2)
(2)
(48)
Reclassifications
15
2
(17)
(5)
(6)
-
4
4
(2)
Translation differences and other
(14)
(22)
(19)
(7)
(62)
(18)
(5)
(23)
(85)
Total change
(39)
(35)
(45)
(35)
(154)
(16)
15
(1)
(154)
Balance as of December 31, 2023
Cost
1,114
1,731
1,404
274
4,521
1,425
216
1,641
6,162
Accumulated depreciation
(638)
(1,278)
(1,041)
(2,957)
(619)
(104)
(722)
(3,679)
Book value
476
453
363
274
1,565
806
113
919
2,483
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for goodwill impairment testing
contain various judgments and estimations as described in the \u2018key assumptions\u2019 section.
The changes in 2023 and 2024 were as follows:
Philips Group
Goodwill in millions of EUR
2023
2024
Balance as of January 1
Cost
12,747
12,133
Impairments
(2,509)
(2,256)
Book value
10,238
9,876
Acquisitions\u00b9
24
Impairments
(8)
Divestments and transfers to assets classified as held for sale\u00b2
(8)
(22)
Translation differences and other
(370)
528
Total change
(362)
507
Balance as of December 31
Cost
12,133
12,777
Impairments
(2,256)
(2,394)
Book value
9,876
10,383
1Refer to Acquisitions and divestments
2 Refer to Discontinued operations and assets classified as held for sale
In 2024, goodwill increased by EUR 507 million , primarily as a result of translation differences.
Goodwill impairment testing
During 2024 , there were no goodwill impairments recorded.
Goodwill allocated to the Businesses (groups of cash-generating units) as of December\u00a031, 2024, is
presented in the following table:
Philips Group
Goodwill by business in millions of EUR
2023
2024
Monitoring
3,964
4,194
Image-Guided Therapy
3,044
3,216
Precision Diagnosis
1,363
1,440
Sleep & Respiratory Care
687
694
Personal Health
483
509
Enterprise Informatics
336
331
Book value
9,876
10,383
The carrying amount of each group of CGUs is compared to the recoverable amount of the group
of CGUs. Unless otherwise noted, the recoverable amount for each group of CGUs is based on
value-in-use calculations. Cash flow projections were determined using Philips management's
internal forecasts that cover an initial forecast period from 2025 to 2027. Projections were
extrapolated using the growth rates disclosed in the following table for an extrapolation period of 4
years (2028-2031), after which a terminal value was calculated per 2032. For the terminal value
calculation, growth rates were capped at a historical long-term average growth rate. The company
uses scenarios in the business forecasting process and the most reasonable and supportable
assumptions that represent management\u2019s best estimate are used as the basis for the value-in-use
calculations.
Key assumptions
Key assumptions used in the value-in-use calculations were compound sales growth rates, EBITA*
in the terminal value and the rates used for discounting the projected cash flows.
The compound sales growth rate is the annualized steady nominal growth rate over the forecast
period calculated with reference to the latest full year of actual sales as the base for the growth.
The compound sales growth rate used to calculate the terminal value is only applied to the first
year after the extrapolation period, after which no further growth is assumed for the terminal value
calculation.
The compound sales growth rates and EBITA* used to estimate cash flows are based on past
performance, external market growth assumptions and industry long-term growth averages.
EBITA* for each group of CGUs is expected to increase over the projection period as a result of
volume growth and cost efficiencies. By their nature, these assumptions involve risk and uncertainty
because they relate to future events and circumstances and there are many factors that could cause
actual results and developments to differ materially from the plans, goals and expectations set forth
in these assumptions.
The rates used for discounting the projected cash flows in goodwill impairment testing is based on
a weighted cost of capital (WACC), which in turn is based on business-specific inputs along with
other inputs as mentioned below. The WACC is based on post-tax cost of equity and cost of debt,
and is further calculated based on market data and inputs to accurately capture changes to the
time value of money, such as the risk-free interest rate, the beta factor and country risk premium.
In order to properly reflect the different risk-profiles of different businesses, a WACC is determined
for each business. As such, the beta factor is determined based on a selection of peer companies,
which can differ per business. Different businesses have different geographical footprints, resulting
in business-specific inputs for variables like country risk. Philips performs the value-in-use
calculations using post-tax cash flows and discount rate, the implicit pre-tax rate discount rate is
derived from an iterative calculation for disclosure purposes.
The values assigned to the key assumptions used for the value-in-use calculations were as follows:
Philips Group
Key assumptions\u00a02024
Compound sales growth rate
Initial forecast
period
Extrapolation
period
Used to
calculate
terminal value
Pre-tax
discount rates
Monitoring
5.3%
4.7%
2.5%
9.1%
Image-Guided Therapy
6.3%
5.0%
2.5%
9.7%
Precision Diagnosis
2.4%
3.6%
2.5%
9.9%
Sleep & Respiratory Care
10.1%
7.3%
2.5%
10.3%
Personal Health
5.1%
4.2%
2.5%
9.9%
Enterprise Informatics
4.4%
5.4%
2.5%
8.9%
The assumptions used for the 2023 value-in-use calculations for cash-generating units to which a
significant amount of goodwill was allocated were as follows:
Philips Group
Key assumptions\u00a02023
compound sales growth rate
initial forecast
period
extrapolation
period
used to
calculate
terminal value
pre-tax discount
rates
Monitoring
8.2%
5.5%
2.5%
9.5%
Image-Guided Therapy
7.9%
5.2%
2.5%
10.7%
Precision Diagnosis
3.8%
3.4%
2.5%
10.4%
Sleep & Respiratory Care
9.5%
9.3%
2.5%
10.8%
Personal Health
5.0%
4.6%
2.5%
10.3%
Enterprise Informatics
5.3%
5.8%
2.5%
9.0%
Sensitivity to changes in assumptions
The results of the annual impairment tests of the groups of CGUs 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.
*The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Information
by segment and main country
12Intangible assets excluding goodwill
Accounting policies
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment
are recognized in the Consolidated statements of income.
Accounting estimates and judgments
The cash flow projections used in the value in use calculations for intangible assets excluding
goodwill contain various judgments and estimations. For intangible assets excluding goodwill,
estimates are required to determine the (remaining) useful lives.
Philips Group
Intangible assets excluding goodwill in millions of EUR
Brand names
Customer
relationships
Technology
Product development
Product development
in progress
Software
Other
Total
Balance as of January 1, 2024
Cost
629
2,593
2,908
2,432
635
929
139
10,265
Amortization / impairments
(511)
(1,718)
(1,895)
(2,096)
(91)
(662)
(101)
(7,075)
Book value
118
875
1,013
336
544
267
38
3,190
Additions
-
36
-
240
85
-
361
Assets available for use
266
(266)
Amortization
(19)
(92)
(138)
(162)
(95)
(1)
(506)
Impairments
(7)
-
(135)
(13)
(24)
(7)
(1)
(188)
Transfers to assets classified as held for sale
(11)
1
(10)
Translation differences and other
6
51
79
(9)
29
15
(37)
134
Total change
(20)
(52)
(158)
82
(21)
(3)
(38)
(208)
Balance as of December 31, 2024
Cost
671
2,722
2,900
2,659
624
984
-
10,559
Amortization / impairments
(573)
(1,899)
(2,044)
(2,241)
(101)
(719)
-
(7,578)
Book Value
98
823
855
418
523
265
-
2,982
Philips Group
Intangible assets excluding goodwill in millions of EUR
Brand names
Customer
relationships
Technology
Product development
Product development
in progress
Software
Other
Total
Balance as of January 1, 2023
Cost
647
2,735
2,947
2,605
648
869
152
10,602
Amortization / impairments
(507)
(1,665)
(1,845)
(2,212)
(146)
(589)
(113)
(7,077)
Book value
140
1,070
1,102
393
502
280
39
3,526
Additions
33
-
214
70
-
317
Assets available for use
157
(157)
-
-
Acquisitions
40
-
-
40
Amortization
(20)
(137)
(131)
(169)
(97)
(1)
(556)
Impairments
-
-
(7)
(7)
(1)
-
(16)
Transfers to assets classified as held for sale
(1)
(20)
(8)
(2)
(32)
Translation differences and other
(1)
(37)
(30)
(38)
1
18
-
(87)
Total change
(22)
(195)
(89)
(57)
42
(13)
(1)
(335)
Balance as of December 31, 2023
Cost
629
2,593
2,908
2,432
635
929
139
10,265
Amortization / impairments
(511)
(1,718)
(1,895)
(2,096)
(91)
(662)
(101)
(7,075)
Book Value
118
875
1,013
336
544
267
38
3,190
Impairments in 2024 amounted to EUR 188 million (2023: EUR 16 million) and mainly relate to the
impairment of acquired intangible assets following the decision to discontinue certain products in
the Diagnosis & Treatment segment.
The company uses scenarios in the business forecasting process and the most reasonable and
supportable assumptions which represent management\u2019s best estimate are used as the basis for
the value-in-use calculations.
The amortization and impairment of intangible assets is further specified in Income from
operations", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-597": { "value": "
6Income from operations
Government grants
Grants from governments are recognized at their fair value when there is a reasonable assurance
that the grant will be received and the company will comply with the conditions. Grants related to
costs are deferred in the consolidated balance sheet and recognized in the consolidated statement
of income as a reduction of the related costs that they are intended to compensate. Grants related
to assets are deducted from the cost of the asset and presented net in the consolidated balance
sheets.
Other operational costs
Other operational costs contain items which are dissimilar in nature and individually insignificant in
amount to disclose separately. These costs contain, among others, expenses for outsourcing
services, mainly in Information Technology and Human Resources, third-party workers, consultants,
warranty, patents, costs for travelling and external legal services. Government grants of EUR 91
million were recognized as a cost reduction in 2024 (2023: EUR 95 million; 2022: EUR 103
million).The grants mainly relate to research and development activities and business development.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-596": { "value": "
6Income from operations
Employee benefit expenses
Philips Group
Employee benefit expenses in millions of EUR
2022
2023
2024
Salaries and wages excluding share-based
compensation
5,594
5,635
5,356
Share-based compensation
104
97
104
Post-employment benefit costs
439
402
388
Other social security and similar charges:
Required by law
590
567
580
Voluntary
225
202
211
Employee benefit expenses
6,952
6,903
6,641
The employee benefit expenses relate to employees who are working on the payroll of Philips, both
with permanent and temporary contracts.
For further information on post-employment benefit costs, refer to Post-employment benefits.
For details on the remuneration of the members of the Board of Management and the Supervisory
Board, refer to Information on remuneration.
19Provisions
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Additions
81
439
9
131
1,015
5
185
1,865
Utilizations
(76)
(507)
(15)
(127)
(477)
(9)
(124)
(1,336)
Releases
(5)
(15)
-
(26)
(28)
(3)
(35)
(113)
Accretion
5
38
3
(1)
45
Changes in discount rate
(7)
-
(8)
Translation differences and other
2
(24)
4
(1)
44
3
(8)
21
Total change
3
(107)
(5)
(23)
592
(2)
16
474
Current
522
20
77
1,066
61
229
1,977
Non-current
560
63
76
16
13
52
216
996
Balance as of December 31, 2024
560
585
96
94
1,079
113
446
2,972
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
\u00a0warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
653
20
134
74
23
112
1,018
Non-current
546
80
83
6
14
89
279
1,097
Balance as of December 31, 2022
546
733
104
140
89
113
390
2,115
Additions
112
553
18
263
644
24
223
1,836
Utilizations
(91)
(553)
(14)
(219)
(235)
(20)
(134)
(1,266)
Releases
(10)
(20)
(2)
(67)
(10)
(7)
(45)
(159)
Accretion
5
23
1
(3)
25
Acquisitions
6
6
Changes in discount rate
(6)
(6)
Translation differences and other
-
(22)
(3)
(2)
(23)
(2)
(1)
(53)
Total change
12
(42)
(2)
(24)
399
2
39
383
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Other provisions
The main elements of other provisions are:
Philips Group
Other provisions in millions of EUR unless otherwise stated
2023
2024
Other long-term employee benefits
77
80
Self-insurance
63
60
Non-income taxes / social security
51
48
Rights of return
39
44
Decommissioning costs
34
37
Onerous contracts
76
66
Remaining
89
111
Balance as of December 31
429
446
Remaining provisions relate to a variety of positions, for example provision for disability of
employees and provision for royalty obligations.
Releases in 2023 and 2024 are due to the reassessment of the positions in other provisions
throughout the year.
The company expects the other provisions to be utilized mainly within the next five years.
20Post-employment benefits
Accounting policies
Defined contribution plans
A defined contribution plan is a post-employment benefit plan for which the company pays fixed
contributions into a separate entity and will have no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution pension plans are recognized as an
employee benefit expense in the Consolidated statements of income in the periods during which
services are rendered by employees.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan that is not a defined contribution plan.
Defined benefit plans define an amount of pension benefit that an employee will receive after
retirement. That pension benefit typically depends on several factors such as years of service, age
and salary.
The net pension asset or liability recognized in the Consolidated balance sheets in respect of
defined benefit plans is the fair value of plan assets less the present value of the projected defined
benefit obligation at the balance sheet 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\u2019s major plans, a full discount rate curve of high-quality corporate bonds is used to
determine the defined benefit obligation, where available. The curves are based on the Mercer
Yield Curve methodology, which uses data of corporate bonds rated AA or equivalent. For the
other plans the Mercer Yield Curve/Mercer Methodology has also been used taking into account
the cash flows as much as possible in case there is a deep market in corporate bonds. For plans in
countries without a deep corporate bond market, the discount rate is based on government bonds
and the plan\u2019s maturity.
Pension costs with respect to defined benefit plans primarily represent the increase of the actuarial
present value of the obligation for post-employment benefits based on employee service during the
year and the interest on the net recognized asset or liability with respect to employee service in
previous years.
Remeasurements of the net defined benefit asset or liability comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The
company recognizes all remeasurements in Other comprehensive income.
Past service costs arising from the introduction of a change to the benefit payable under a plan or a
significant reduction of the number of employees covered by a plan (curtailment) are recognized in
full in the Consolidated statements of income.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided. The company recognizes a liability and an expense for bonuses
and incentives based on a formula that takes into consideration the profit attributable to the
company\u2019s shareholders after certain adjustments.
The company\u2019s net obligation with respect to other long-term employee benefits is the amount of
future benefit that employees have earned in return for their service in the current and prior
periods, such as jubilee entitlements. That benefit is discounted to determine its present value.
Remeasurements are recognized in the Consolidated statements of income in the period in which
they arise.
Further information on other long-term employee benefits can be found in Provisions in the Other
provisions section.
Accounting estimates and judgments
To make the actuarial calculations for the valuation of defined benefit obligations, assumptions are
needed for interest rates, healthcare cost increases, future pension increases, life expectancy and
employee turnover rates. The actuarial calculations are made by external actuaries based on inputs
from observable market data, such as corporate bond returns and yield curves to determine the
discount rates to apply, mortality tables to determine life expectancy and inflation rates to
determine future salary and pension growth assumptions.
Employee post-employment benefit plans have been established in many countries in accordance
with the legal requirements, customs and the local practice in the countries involved. The larger
part of post-employment benefits are company pension plans, of which some are funded and some
are unfunded. All funded post-employment benefit plans are considered to be related parties.
Most employees who 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 US. The company also
sponsors a number of defined benefit (DB) pension plans. The benefits provided by these plans are
based on employees\u2019 years of service and compensation levels.
The company also sponsors a limited number of DB retiree medical plans. The benefits provided by
these plans typically cover a part of the healthcare costs after retirement. None of these plans are
individually significant to the company and are therefore not further separately disclosed.
The larger funded DB and DC plans are governed by independent Trustees who have a legal
obligation to protect the interests of all plan members and operate under the local regulatory
framework.
The DB plans in Germany and the US make up most of the defined benefit obligation (DBO) and
the net position. The company also has DB plans in the rest of the world; however these are
individually not significant to the company and do not have a significantly different risk profile that
would warrant separate disclosure.
The adjacent table provides a breakdown of the present value of the funded and unfunded DBO,
the fair value of plan assets and the net position in Germany, the US and in other countries. The
table also provides the value of reimbursement rights.
Philips Group
Post-employment benefits in millions of EUR
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Present value of funded
DBO
(511)
(531)
(404)
(416)
(182)
(205)
(1,097)
(1,152)
Present value of
unfunded DBO
(253)
(242)
(118)
(131)
(137)
(134)
(508)
(507)
Total present value
of DBO
(764)
(773)
(522)
(547)
(319)
(339)
(1,605)
(1,659)
Fair value of plan assets
481
496
442
465
166
189
1,089
1,150
Asset ceiling
(1)
(1)
Net position
(283)
(277)
(80)
(82)
(153)
(151)
(516)
(510)
Value of
reimbursement rights
8
7
8
7
The classification of the net position is as follows: :
Philips Group
Classification net position in millions of EUR
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Total asset for plans in
a surplus
-
-
39
49
2
1
41
50
Total liability for plans
in a deficit
(283)
(277)
(118)
(131)
(156)
(152)
(558)
(560)
Net position
(283)
(277)
(80)
(82)
(153)
(151)
(516)
(510)
Germany
The company has several DB plans in Germany, some of which are unfunded. The plan assets of
the funded DB plans in Germany are held in a legally separate pension trust.
Due to the relatively high level of social security in Germany, the company\u2019s pension plans mainly
provide benefits for the higher earners. The plans are open for future pension accrual. Indexation is
mandatory due to legal requirements. Some of the German plans have a DC design, but are
accounted for as DB plans due to a legal minimum return requirement.
Company pension commitments in Germany are largely protected against employer bankruptcy via
the \u201cPensions-Sicherungs-Verein\u201d 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.
United States
The US DB pension plans are closed plans without future pension accrual. For the funding of any
deficit in the US plan the Group adheres to the minimum funding requirements of the US Pension
Protection Act.
The assets of the US funded pension plans are in Trusts governed by fiduciaries. The non-qualified
pension plans that cover accrual above the maximum salary of the funded qualified plan are
unfunded.
The company\u2019s qualified pension commitments in the US are covered via the Pension Benefit
Guaranty Corporation, which charges a fee to US companies providing DB pension plans. The fee is
also dependent on the amount of unfunded vested liabilities.
Philips has announced to plan participants the intent to fully terminate the US qualified defined
benefit pension plans in 2025. The announcements made did not impact the accounting for these
plans during 2024 and the anticipated settlement, if and when completed, is not expected to have
a material impact to the company\u2019s results or cash flows in 2025.
Risks related to DB plans
DB plans expose the company to various demographic and economic risks such as longevity risk,
investment risks, currency and interest rate risk and in some cases inflation risk. The latter plays a
role in the assumed wage increase but more importantly in some countries where indexation of
pensions is mandatory.
The company has an active de-risking strategy in which it constantly looks for opportunities to
reduce the risks associated with its DB plans. Liability-driven investment strategies, lump sum cash-
out options, buy-ins, buy-outs and a change to DC are examples of the strategy.
Investment policy in the largest pension plans
Plan assets are managed in legally separate pension trusts, primarily overseen by independent
trustees, who bear full responsibility for and have complete discretion over the investment strategy
for these plan assets. The plan assets of the Philips pension plans are invested in well-diversified
portfolios. For most plans, the interest rate sensitivity of the fixed income portfolio is closely aligned
with that of the plan\u2019s pension liabilities. Contributions from the sponsoring company are primarily
directed toward increasing the fixed income allocation. Additionally, in most investment strategies,
any structural improvement in the plan's funded ratio over time is used to further reduce 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
2022
2023
2024
Defined benefit plans
50
47
43
- included in income from operations
39
25
23
- included in financial expense
10
21
20
- included in Discontinued operations
-
-
Defined contribution plans
400
376
365
- included in income from operations
400
376
365
- included in Discontinued operations
-
-
Post-employment benefits costs
449
423
408
Summary of the reconciliations for the DBO and plan assets
The adjacent tables contain the reconciliations for the DBO and plan assets.
Philips Group
Defined benefit obligations in millions of EUR
2023
2024
Balance as of January 1
1,621
1,605
Service cost
32
29
Interest cost
71
65
Employee contributions
3
4
Actuarial (gains) / losses
- demographic assumptions
-
- financial assumptions
48
20
- experience adjustment
2
9
(Negative) past service cost
(9)
(7)
Settlements
2
1
Benefits paid from plan
(104)
(63)
Benefits paid directly by employer
(39)
(36)
Translation differences and other
(22)
32
Balance as of December 31
1,605
1,659
Philips Group
Plan assets in millions of EUR
2023
2024
Balance as of January 1
1,122
1,089
Interest income on plan assets
49
45
Admin expenses paid
(1)
(1)
Return on plan assets excluding interest income
23
13
Employee contributions
3
4
Employer contributions
14
30
Settlements
-
Benefits paid from plan
(104)
(63)
Translation differences and other
(17)
33
Balance as of December 31
1,089
1,150
The past service costs in 2024 mainly relate to the retiree medical plans in Brazil and the pension
plan in Switzerland. The past service costs in 2023 mainly relate to the retiree medical plans in
Brazil.
Plan assets allocation
The asset allocation in the company\u2019s DB plans as of December 31, 2024, was as follows:
Philips Group
Plan assets allocation in millions of EUR
2023
2024
Assets quoted in active markets
- Debt securities
513
460
- Equity securities
12
- Other1
182
431
Assets not quoted in active markets
- Debt securities
-
- Equity securities
31
-
- Other\u00b9
363
247
Total assets
1,089
1,150
1Other assets are primarily composed of cash and cash equivalents, real estate, investment funds, and assets
managed by insurance companies.
The plan assets in 2024 contain 22% (2023: 36%) unquoted plan assets. Plan assets in 2024 do
not include property occupied by or financial instruments issued by the company.
Assumptions
The mortality tables used for the company\u2019s largest DB plans are:
Germany: Heubeck-Richttafeln 2018 Generational, assuming 93% of mortality rates for male
retirees between ages 60 and 85. US: PRI-2012 Generational with MP2021 improvement scale +
white collar adjustment.
The weighted averages of the assumptions used to calculate the DBO were as follows:
Philips Group
Assumptions used for defined benefit obligations\u00a0in %
as of December 31,
Germany
United States
Other countries
Total
2023
2024
2023
2024
2023
2024
2023
2024
Discount rate
3.7%
3.3%
5.0%
5.1%
4.9%
4.2%
4.3%
4.0%
Inflation rate
2.0%
2.0%
2.3%
2.3%
2.5%
2.2%
2.2%
2.1%
Salary increase
2.8%
2.8%
0.0%
0.0%
4.3%
4.4%
3.0%
3.1%
Sensitivity analysis
The following table illustrates the approximate impact on the DBO from movements in key
assumptions. The DBO was recalculated using a change in the assumptions of 1% which overall is
considered a reasonably possible change. The impact on the DBO because of changes in discount
rate is normally accompanied by offsetting movements in plan assets, especially when using
matching strategies.
The average duration in years of the DBO of the DB plans is 10 (Germany: 11, US: 8, and other
countries: 10) as of December\u00a031, 2024 (2023: 10).
Philips Group
Sensitivity of key assumptions in millions of EUR
2023
2024
Increase
Discount rate (1% movement)
(123)
(123)
Pension increase (1% movement)
60
60
Salary increase (1% movement)
12
14
Longevity\u00b9
32
34
Decrease
Discount rate (1% movement)
147
150
Pension increase (1% movement)
(52)
(52)
Salary increase (1% movement)
(11)
(12)
Longevity\u00b9
(22)
(24)
1The mortality table (i.e. longevity) also impacts the DBO. The above sensitivity table illustrates the impact on
the DBO of a further 10% decrease / increase in the assumed rates of mortality for the company\u2019s major
plans. A 10% decrease / increase in assumed mortality rates equals a change of life expectancy by 0.5\u00a0- 1
year.
Cash flows and costs in 2025
Cash outflows in relation to post-employment benefits are estimated to amount to EUR 421 million
in 2025, consisting of:
\u2022 EUR 24 million employer contributions to DB plans (Germany: EUR 11 million, US: EUR 0 million ,
other countries: EUR 13 million);
\u2022 EUR 45 million cash outflows in relation to DB plans (Germany: EUR 21 million, US: EUR 10
million, Other Countries: EUR 14 million); and
\u2022 EUR 352 million employer contributions to DC plans (Netherlands: EUR 142 million, US: EUR 144
million, Other Countries: EUR 66 million).
The service and administration cost for 2025 is expected to amount to EUR 33 million for DB plans.
The net interest cost for 2025 for the DB plans is expected to amount to EUR 18 million. The cost
for DC pension plans in 2025 is equal to the expected DC cash flow.
27Information on remuneration
Remuneration of the Executive Committee
In 2024 , the total remuneration costs relating to the Executive Committee (consisting of 15
members throughout the year, including the members of the Board of Management) amounted to
EUR 32.0 million ( 2023 : EUR 32.8 million ; 2022 : EUR 25.6 million ) and consisted of the elements in
the following table.
Philips Group
Remuneration costs of the Executive Committee1 in EUR
2022
2023
2024
Base salary/Base compensation
9,528,279
8,729,458
9,362,765
Annual incentive\u00b2
208,370
11,405,130
5,292,388
Performance shares\u00b3
11,242,581
7,272,815
12,673,614
Stock options
13,358
90,503
Restricted share rights\u00b3
1,191,529
1,907,511
999,374
Pension allowances\u2074
1,949,204
1,346,937
1,197,695
Pension scheme costs
288,179
260,554
269,092
Other compensation\u2075
1,216,163
1,900,224
2,136,668
Total
25,624,305
32,835,987
32,022,099
1The Executive Committee consisted of 13 members as per December\u00a031, 2024 (2023 : 13 members; 2022:
13 members)
2The annual incentives are related to the performance in the year reported which are paid out in the
subsequent year.
3Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do
not reflect the value of performance shares at the vesting/release date
4Pension allowances are gross taxable allowances paid to the Executive Committee members in the
Netherlands. These allowances are part of the pension arrangement
5The 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
Remuneration of the Board of Management
In 2024, the total remuneration costs relating to the members of the Board of Management amounted to EUR 10.3 million (2023: EUR 9.9 million; 2022: EUR 8.5 million). See the following table.
Philips Group
Remuneration costs of individual members of the Board of Management in EUR
Base
compensation/
salary
Annual incentive\u00b9
Performance
shares\u00b2
Restricted share
rights\u00b2
Pension
allowances
Pension scheme
costs
Other
compensation\u00b3
Total costs
2024
R. Jakobs
1,237,500
927,750
1,692,087
274,925
32,218
83,870
4,248,350
C. Hanneman\u2074
175,545
98,372
104,606
35,247
7,775
23,089
444,633
A. Bhattacharya
622,500
351,934
1,424,219
129,788
25,478
963,596
3,517,514
M.J. van Ginneken
652,500
422,374
740,101
128,675
32,218
74,227
2,050,095
2,688,045
1,800,429
3,961,013
568,635
97,689
1,144,781
10,260,593
2023
R. Jakobs
1,200,000
2,004,480
968,922
267,798
31,891
109,256
4,582,347
A. Bhattacharya
810,000
1,075,939
793,429
197,133
31,891
94,516
3,002,907
M.J. van Ginneken
630,000
846,922
614,840
125,298
31,891
53,446
2,302,397
2,640,000
3,927,341
2,377,191
590,228
95,673
257,218
9,887,650
2022
R. Jakobs\u2075
256,438
112,737
57,973
6,012
11,507
444,667
F.A. van Houten\u2075
1,041,849
208,370
2,930,068
444,051
22,121
42,533
4,688,992
A. Bhattacharya
806,250
763,140
237,250
28,133
61,308
1,896,081
M.J. van Ginneken
626,250
585,490
141,622
28,133
35,343
1,416,837
2,730,788
208,370
4,391,434
880,896
84,398
150,691
8,446,577
1The annual incentives are related to the performance in the year reported which are paid out in the subsequent year.
2Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do
not reflect the value of performance shares at the vesting/release date
3The 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.
4As per October 1, 2024, Charlotte Hanneman was appointed as CFO of the company. This table includes
actual costs incurred as of this date and until the end of the year.
5As per October 15, 2022, Roy Jakobs was appointed as CEO of the company. The table includes actual
costs incurred in respect of the remuneration received by Mr Van Houten and Mr Jakobs, respectively, as
CEO.
The accumulated annual pension entitlements and the pension costs of individual members of the
Board of Management are as follows:
Philips Group
Accumulated annual pension entitlements and pension-related costs in EUR unless otherwise stated
Age as of December 31,
2024
Accumulated annual
pension as of December
31, 2024
Total pension related costs
R. Jakobs
50
60,886
307,143
C. Hanneman
46
1,298
100,072
M.J. van Ginneken
51
58,167
160,894
Pension costs
568,109
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 2024, no (additional) pension benefits were granted to former members of the Board
of Management.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-595": { "value": "
6Income from operations
Shipping and handling
Expenses incurred for shipping and handling are mainly recorded as cost of sales. When shipping
and handling are part of a project and billed to the customer, then the related expenses are
recorded as cost of sales. Shipping and handling related to sales to third parties are partly recorded
as selling expenses. When shipping and handling billed to customers are considered a distinct and
separate performance obligation, the fees are recognized as revenue and costs included in cost of
sales.
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.
A breakdown by nature of the income (loss) from operations is as follows:
Philips Group
Sales and costs by nature in millions of EUR
2022
2023
2024
Sales
17,827
18,169
18,021
Costs of materials used
(4,320)
(4,626)
(4,213)
Employee benefit expenses
(6,952)
(6,903)
(6,641)
Depreciation and amortization\u00b9
(1,602)
(1,261)
(1,390)
Impairment of goodwill
(1,357)
(8)
Shipping and handling
(756)
(668)
(623)
Advertising and promotion
(739)
(700)
(791)
Lease expenses
(39)
(51)
(54)
Other operational costs
(3,609)
(3,535)
(3,351)
Other business income (expenses)
18
(533)
(429)
Income from operations
(1,529)
(115)
529
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
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
2022
2023
2024
Salaries and wages excluding share-based
compensation
5,594
5,635
5,356
Share-based compensation
104
97
104
Post-employment benefit costs
439
402
388
Other social security and similar charges:
Required by law
590
567
580
Voluntary
225
202
211
Employee benefit expenses
6,952
6,903
6,641
The employee benefit expenses relate to employees who are working on the payroll of Philips, both
with permanent and temporary contracts.
For further information on post-employment benefit costs, refer to Post-employment benefits.
For details on the remuneration of the members of the Board of Management and the Supervisory
Board, refer to Information on remuneration.
Employees
The number (full-time equivalents, or FTEs) of employees by category at year-end is summarized as
follows:
Philips Group
Employees by category in FTEs as of December 31
2022
2023
2024
Production
30,689
28,640
27,478
Research & development
14,169
12,035
10,843
Other
29,082
26,818
27,795
Employees
73,941
67,493
66,116
Third-party workers
3,292
2,163
1,708
Philips Group
77,233
69,656
67,823
Employees consist of those persons working on the payroll of Philips and whose costs are reflected
in employee benefit expenses. Other consists of employees in commercial, general and
administrative functions. Third-party workers consist of personnel hired on a per-period basis, via
external companies.
Philips Group
Employees by geographical location in average FTEs
2022
2023
2024
Netherlands
11,180
9,794
8,844
Other countries
67,357
62,471
60,113
Philips Group
78,538
72,264
68,956
Depreciation and amortization
Depreciation of property, plant and equipment and amortization of intangible assets, including
impairments, are as follows:
Philips Group
Depreciation and amortization1 in millions of EUR
2022
2023
2024
Depreciation of property, plant and equipment
711
689
696
Amortization of software
117
98
102
Amortization of acquired intangible assets
363
290
392
Amortization of development costs
411
184
199
Depreciation and amortization
1,602
1,261
1,390
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Depreciation of property, plant and equipment is mainly included in cost of sales. Amortization of
software is mainly included in general and administration expenses. Amortization of other
intangible assets is included in selling expenses for brand names and customer relationships and is
included in cost of sales for technology-based and other intangible assets. Amortization of
development costs is included in research and development expenses.
Impairment of goodwill
There were no goodwill impairment charges in 2024. In 2023, a goodwill charge of EUR 8 million
was recorded for the partial impairment of goodwill allocated to a business that was classified as
held-for-sale as of December\u00a031, 2023. For further information refer to Goodwill.
Shipping and handling
Shipping and handling costs are included in cost of sales and selling expenses in the Consolidated
statements of income.
Advertising and promotion
Advertising and promotion costs are included in selling expenses in the Consolidated statements of
income.
Lease expense
Lease expense relates to short-term and low value leases.
Other operational costs
Other operational costs contain items which are dissimilar in nature and individually insignificant in
amount to disclose separately. These costs contain, among others, expenses for outsourcing
services, mainly in Information Technology and Human Resources, third-party workers, consultants,
warranty, patents, costs for travelling and external legal services. Government grants of EUR 91
million were recognized as a cost reduction in 2024 (2023: EUR 95 million; 2022: EUR 103
million).The grants mainly relate to research and development activities and business development.
Audit and audit-related fees
The following table shows the fees attributable to the fiscal years 2022, 2023 and 2024 for services
rendered by the external auditors.
Philips Group
Audit and audit-related fees in millions of EUR
2022
2023
2024
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
Audit fees
9.5
5.6
15.2
9.9
5.0
14.9
8.9
5.5
14.4
consolidated
financial
statements
9.5
3.1
12.6
9.9
2.6
12.5
8.9
3.0
11.9
statutory
financial
statements
2.5
2.5
2.5
2.5
2.5
2.5
Audit-related
fees\u00b2
0.8
0.2
1.0
0.9
0.2
1.1
1.9
0.3
2.2
sustainability
assurance
0.6
0.6
0.8
0.8
1.6
1.6
other
0.1
0.2
0.3
0.2
0.2
0.3
0.3
0.3
0.6
Tax fees
All other fees
Fees
10.3
5.8
16.2
10.8
5.2
16.1
10.8
5.7
16.6
1EY Accountants B.V.
2Also 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
2022
2023
2024
Result on disposal of businesses:
income
4
50
27
expenses
-
-
(14)
Result on disposal of fixed assets:
income
3
12
3
expenses
(1)
(1)
-
Result on other remaining businesses:
income
121
49
560
expenses
(109)
(643)
(1,005)
Other business income (expenses)
18
(533)
(429)
Total other business income
127
112
590
Total other business expenses
(109)
(645)
(1,019)
The result on disposal of businesses mainly relates to income (expense) in the respective periods for
divestments of non-strategic businesses. For more information refer to Acquisitions and
divestments.
The result on disposal of fixed assets mainly relates to the sale of real estate assets.
The result on other remaining businesses mainly relates to the revaluation of contingent
consideration and various legal matters. In 2024, Philips Respironics recorded a EUR 984 million
provision in connection with the settlement of the Respironics personal injury and the medical
monitoring claims in the US. Philips Respironics recorded insurance income of EUR 538 million in
connection with the agreement with insurers to partially reimburse the Respironics recall-related
product liability claims. For more information on contingent consideration, refer to Provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-594": { "value": "
6Income from operations
Depreciation and amortization
Depreciation of property, plant and equipment and amortization of intangible assets, including
impairments, are as follows:
Philips Group
Depreciation and amortization1 in millions of EUR
2022
2023
2024
Depreciation of property, plant and equipment
711
689
696
Amortization of software
117
98
102
Amortization of acquired intangible assets
363
290
392
Amortization of development costs
411
184
199
Depreciation and amortization
1,602
1,261
1,390
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Depreciation of property, plant and equipment is mainly included in cost of sales. Amortization of
software is mainly included in general and administration expenses. Amortization of other
intangible assets is included in selling expenses for brand names and customer relationships and is
included in cost of sales for technology-based and other intangible assets. Amortization of
development costs is included in research and development expenses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-593": { "value": "
6Income from operations
Government grants
Grants from governments are recognized at their fair value when there is a reasonable assurance
that the grant will be received and the company will comply with the conditions. Grants related to
costs are deferred in the consolidated balance sheet and recognized in the consolidated statement
of income as a reduction of the related costs that they are intended to compensate. Grants related
to assets are deducted from the cost of the asset and presented net in the consolidated balance
sheets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-592": { "value": "
6Income from operations
A breakdown by nature of the income (loss) from operations is as follows:
Philips Group
Sales and costs by nature in millions of EUR
2022
2023
2024
Sales
17,827
18,169
18,021
Costs of materials used
(4,320)
(4,626)
(4,213)
Employee benefit expenses
(6,952)
(6,903)
(6,641)
Depreciation and amortization\u00b9
(1,602)
(1,261)
(1,390)
Impairment of goodwill
(1,357)
(8)
Shipping and handling
(756)
(668)
(623)
Advertising and promotion
(739)
(700)
(791)
Lease expenses
(39)
(51)
(54)
Other operational costs
(3,609)
(3,535)
(3,351)
Other business income (expenses)
18
(533)
(429)
Income from operations
(1,529)
(115)
529
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Lease expense
Lease expense relates to short-term and low value leases.
7Financial income and expenses
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
10Property, plant and equipment
Accounting policies
Right-of-use assets
The company leases various items of real estate, vehicles and other equipment. The company
determines whether an arrangement constitutes or contains a lease based on the substance of the
arrangement at the lease inception. The arrangement constitutes or contains a lease if fulfillment is
dependent on the use of a specific asset and the arrangement conveys a right to use the asset,
even if that asset is not explicitly specified in the arrangement.
Company as a lessee
The company recognizes right-of-use assets and lease liabilities for leases with a term of more than
12 months if the underlying asset is not of low value. Payments for short-term and low-value leases
are expensed over the lease term. Extension options are included in the lease term if their exercise
is reasonably certain. Right-of-use assets are measured at cost less accumulated depreciation and
impairment losses, adjusted for any remeasurements. Right-of-use assets are depreciated using the
straight-line method over the shorter of the lease term and the useful life of the underlying assets.
Company as a lessor
When the company acts as a lessor, it determines at lease inception whether a lease is a finance
lease or an operating lease. Leases in which the company does not transfer substantially all the risks
and rewards incidental to ownership of an asset are classified as operating leases. The company
recognizes lease payments received under operating leases as income on a straight-line basis over
the lease term in the Consolidated statement of income.
Accounting estimates and judgments
Right-of-use assets
Judgment is required to determine the lease term. The assessment of whether the company is
reasonably certain to exercise extension options impacts the lease term, which could affect the
amount of lease liabilities and right-of-use assets recognized.
Property, plant and equipment are fixed assets that are owned or right-of-use assets under a lease
agreement. Owned and right-of-use assets are held for use in Philips' operating activities.
Philips Group
Property, plant and equipment in millions of EUR\u00a0
2023
2024
Owned assets
1,565
1,565
Right-of-use assets
919
886
Total
2,483
2,452
Philips Group
Property, plant and equipment\u00a0 in millions of EUR
Owned assets
Right-of-use assets
Property, plant
and equipment
Land and
buildings
Machinery and
installations
Other
equipment
Assets under
construction
Total
Land and
buildings
Other
equipment
Total
Total
Balance as of January 1, 2024
Cost
1,114
1,731
1,404
274
4,521
1,425
216
1,641
6,162
Accumulated depreciation
(638)
(1,278)
(1,041)
(2,957)
(619)
(104)
(722)
(3,679)
Book value
476
453
363
274
1,565
806
113
919
2,483
Additions
2
134
76
236
448
101
87
189
637
Assets available for use
12
70
140
(248)
(26)
26
-
26
-
Depreciation
(49)
(191)
(166)
(406)
(146)
(56)
(202)
(608)
Impairments
(14)
(23)
(28)
-
(65)
(23)
-
(23)
(89)
Transfers to assets classified as held for sale
-
-
-
Reclassifications
7
(6)
8
(1)
8
(9)
(3)
(12)
(4)
Translation differences and other
20
2
9
10
41
(6)
(4)
(10)
31
Total change
(22)
(13)
38
(3)
1
(57)
24
(33)
(32)
Balance as of December 31, 2024
Cost
1,151
1,790
1,527
271
4,738
1,462
241
1,702
6,441
Accumulated depreciation
(697)
(1,350)
(1,126)
(3,173)
(712)
(104)
(816)
(3,989)
Book value
454
440
401
271
1,565
749
137
886
2,452
Philips Group
Property, plant and equipment\u00a0in millions of EUR\u00a0
Owned assets
Right-of-use assets
Property, plant
and equipment
Land and
buildings
Machinery and
installations
Other
equipment
Assets under
construction
Total
Land and
buildings
Other
equipment
Total
Total
Balance as of January 1, 2023
Cost
1,135
1,779
1,454
309
4,676
1,365
206
1,571
6,247
Accumulated depreciation
(621)
(1,291)
(1,046)
(2,958)
(543)
(108)
(651)
(3,609)
Book value
514
488
408
309
1,718
822
98
919
2,638
Additions
1
115
77
239
433
175
62
236
669
Assets available for use
20
90
144
(262)
(8)
2
6
8
-
Depreciation
(56)
(196)
(167)
(420)
(150)
(51)
(201)
(621)
Impairments
(5)
(23)
(17)
-
(45)
(23)
-
(23)
(68)
Transfers to assets classified as held for sale
(1)
(1)
(45)
(46)
(2)
(2)
(48)
Reclassifications
15
2
(17)
(5)
(6)
-
4
4
(2)
Translation differences and other
(14)
(22)
(19)
(7)
(62)
(18)
(5)
(23)
(85)
Total change
(39)
(35)
(45)
(35)
(154)
(16)
15
(1)
(154)
Balance as of December 31, 2023
Cost
1,114
1,731
1,404
274
4,521
1,425
216
1,641
6,162
Accumulated depreciation
(638)
(1,278)
(1,041)
(2,957)
(619)
(104)
(722)
(3,679)
Book value
476
453
363
274
1,565
806
113
919
2,483
Leasing activities
The company leases various items of real estate, vehicles and other equipment where it acts as a
lessee. The company has multiple extension and termination options in a number of lease
contracts. These are used to maximize operational flexibility in terms of managing the assets used
in the company's operations. The options considered reasonably certain are part of lease liabilities.
The company has no commitments to any leases not yet commenced in 2024 ( 2023: EUR 128
million). The company's lease contracts do not contain financial covenants.
The company enters into sale-and-leaseback transactions primarily for its Sleep & Respiratory Care
Business. These transactions are accounted for at market value. The payments for these leases are
considered in determining lease liabilities. Principal repayments are part of cash flows used for
financing activities and interest payments are part of cash flows used for operating activities. The
cash inflows arising from the sales transactions are part of cash flows provided by financing
activities. Lease payments under sale-and-leaseback arrangements for 2024 were EUR 43 million
(2023 : EUR 55 million). The remaining minimum payment under sale-and-leaseback arrangements
included in lease obligations above are as follows:
Philips Group
Remaining minimum payments under sale-and-leaseback arrangements in millions of EUR
2025
29
2026
21
2027
14
2028
7
2029
1
Thereafter
-
Further lease disclosures as lessee can be found in Income from operations; Financial income and
expenses, Cash flow statement supplementary information and Debt. For disclosures for lease
receivables refer to Receivables .
16Receivables
Non-current receivables
Philips has leasing activities where it acts as lessor. In such arrangements, Philips provides the
customer with a right to use of medical equipment in exchange for a series of payments. Residual
values of assets under lease form an insignificant part of the carrying amount of those assets.
Residual values are influenced by asset market prices and are therefore subject to management
estimation. Residual values are at least reassessed on an annual basis, or more often when
necessary. Reassessments are based on a combination of realization of assets sold, expert
knowledge and judgment of local markets. In order to reduce residual value risk exposures there
may be residual value guarantees or purchase options embedded in the customer contract. Credit
risk for lease receivables is reviewed regularly and mitigated, for example, by retaining a security
interest in the leased asset.
18Debt
Accounting policies
Lease liabilities
Lease liabilities are measured at the present value of the lease payments due over the lease term,
generally discounted using the incremental borrowing rate. Lease liabilities are subsequently
measured at amortized cost using the effective interest method. Lease liabilities are remeasured in
case of modifications or reassessments of the lease.
Long-term debt
The following tables present information about the long-term debt outstanding, its maturity and
average interest rates in 2024 and 2023.
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2024
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,408
131
1,276
122
1,154
12.3
6.3%
EUR bonds
4,917
4,917
2,639
2,278
4.7
2.3%
Forward contracts
148
82
66
66
1.3
1.2%
Lease liabilities
1,073
219
854
506
347
3.8
3.7%
Bank borrowings
1
1
1
1
1.5
1.0%
Other long-term debt
-
-
-
-
-
3.2
1.2%
Long-term debt
7,546
434
7,113
3,333
3,779
5.9
3.2%
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2023
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,325
1,325
240
1,085
13.3
6.3%
EUR bonds
4,569
4,569
2,335
2,234
5.1
2.0%
Forward contracts
396
321
76
76
0.8
1.4%
Lease liabilities
1,074
211
864
505
358
3.9
3.1%
Bank borrowings
203
1
201
201
1.2
4.2%
Other long-term debt
-
-
-
-
-
7.4
1.2%
Long-term debt
7,568
532
7,035
3,357
3,678
6.0
2.9%
Leases
The following table presents a reconciliation between the total of future minimum lease payments
and their present value.
Philips Group
Lease liabilities in millions of EUR
2023
2024
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
239
28
211
255
35
219
Between one and five years
572
67
505
592
85
506
More than five years
388
30
358
385
38
347
Lease liabilities
1,200
125
1,074
1,232
159
1,073
23Cash flow statement supplementary information
Cash paid for leases
In 2024, gross lease payments of EUR 252 million ( 2023 : EUR 271 million ; 2022: EUR 316 million )
included interest of EUR 37 million (2023: EUR 27 million ; 2022 : EUR 25 million).", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-591": { "value": "
6Income from operations
Audit and audit-related fees
The following table shows the fees attributable to the fiscal years 2022, 2023 and 2024 for services
rendered by the external auditors.
Philips Group
Audit and audit-related fees in millions of EUR
2022
2023
2024
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
Audit fees
9.5
5.6
15.2
9.9
5.0
14.9
8.9
5.5
14.4
consolidated
financial
statements
9.5
3.1
12.6
9.9
2.6
12.5
8.9
3.0
11.9
statutory
financial
statements
2.5
2.5
2.5
2.5
2.5
2.5
Audit-related
fees\u00b2
0.8
0.2
1.0
0.9
0.2
1.1
1.9
0.3
2.2
sustainability
assurance
0.6
0.6
0.8
0.8
1.6
1.6
other
0.1
0.2
0.3
0.2
0.2
0.3
0.3
0.3
0.6
Tax fees
All other fees
Fees
10.3
5.8
16.2
10.8
5.2
16.1
10.8
5.7
16.6
1EY Accountants B.V.
2Also known as Assurance fees
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-590": { "value": "
6Income from operations
Employees
The number (full-time equivalents, or FTEs) of employees by category at year-end is summarized as
follows:
Philips Group
Employees by category in FTEs as of December 31
2022
2023
2024
Production
30,689
28,640
27,478
Research & development
14,169
12,035
10,843
Other
29,082
26,818
27,795
Employees
73,941
67,493
66,116
Third-party workers
3,292
2,163
1,708
Philips Group
77,233
69,656
67,823
Employees consist of those persons working on the payroll of Philips and whose costs are reflected
in employee benefit expenses. Other consists of employees in commercial, general and
administrative functions. Third-party workers consist of personnel hired on a per-period basis, via
external companies.
Philips Group
Employees by geographical location in average FTEs
2022
2023
2024
Netherlands
11,180
9,794
8,844
Other countries
67,357
62,471
60,113
Philips Group
78,538
72,264
68,956
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-586": { "value": "
6Income from operations
Accounting policies
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.
Other operational costs
Other operational costs contain items which are dissimilar in nature and individually insignificant in
amount to disclose separately. These costs contain, among others, expenses for outsourcing
services, mainly in Information Technology and Human Resources, third-party workers, consultants,
warranty, patents, costs for travelling and external legal services. Government grants of EUR 91
million were recognized as a cost reduction in 2024 (2023: EUR 95 million; 2022: EUR 103
million).The grants mainly relate to research and development activities and business development.
Other business income (expenses)
Other business income (expenses) consists of the following:
Philips Group
Other business income (expenses) in millions of EUR
2022
2023
2024
Result on disposal of businesses:
income
4
50
27
expenses
-
-
(14)
Result on disposal of fixed assets:
income
3
12
3
expenses
(1)
(1)
-
Result on other remaining businesses:
income
121
49
560
expenses
(109)
(643)
(1,005)
Other business income (expenses)
18
(533)
(429)
Total other business income
127
112
590
Total other business expenses
(109)
(645)
(1,019)
The result on disposal of businesses mainly relates to income (expense) in the respective periods for
divestments of non-strategic businesses. For more information refer to Acquisitions and
divestments.
The result on disposal of fixed assets mainly relates to the sale of real estate assets.
The result on other remaining businesses mainly relates to the revaluation of contingent
consideration and various legal matters. In 2024, Philips Respironics recorded a EUR 984 million
provision in connection with the settlement of the Respironics personal injury and the medical
monitoring claims in the US. Philips Respironics recorded insurance income of EUR 538 million in
connection with the agreement with insurers to partially reimburse the Respironics recall-related
product liability claims. For more information on contingent consideration, refer to Provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-585": { "value": "
6Income from operations
Accounting policies
Shipping and handling
Expenses incurred for shipping and handling are mainly recorded as cost of sales. When shipping
and handling are part of a project and billed to the customer, then the related expenses are
recorded as cost of sales. Shipping and handling related to sales to third parties are partly recorded
as selling expenses. When shipping and handling billed to customers are considered a distinct and
separate performance obligation, the fees are recognized as revenue and costs included in cost of
sales.
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-584": { "value": "
6Income from operations
Accounting policies
Shipping and handling
Expenses incurred for shipping and handling are mainly recorded as cost of sales. When shipping
and handling are part of a project and billed to the customer, then the related expenses are
recorded as cost of sales. Shipping and handling related to sales to third parties are partly recorded
as selling expenses. When shipping and handling billed to customers are considered a distinct and
separate performance obligation, the fees are recognized as revenue and costs included in cost of
sales.
Costs of materials used
Cost of materials used represents the inventory recognized in cost of sales.
Depreciation and amortization
Depreciation of property, plant and equipment and amortization of intangible assets, including
impairments, are as follows:
Philips Group
Depreciation and amortization1 in millions of EUR
2022
2023
2024
Depreciation of property, plant and equipment
711
689
696
Amortization of software
117
98
102
Amortization of acquired intangible assets
363
290
392
Amortization of development costs
411
184
199
Depreciation and amortization
1,602
1,261
1,390
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Depreciation of property, plant and equipment is mainly included in cost of sales. Amortization of
software is mainly included in general and administration expenses. Amortization of other
intangible assets is included in selling expenses for brand names and customer relationships and is
included in cost of sales for technology-based and other intangible assets. Amortization of
development costs is included in research and development expenses.
Shipping and handling
Shipping and handling costs are included in cost of sales and selling expenses in the Consolidated
statements of income.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-583": { "value": "
6Income from operations
Accounting policies
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.
Other operational costs
Other operational costs contain items which are dissimilar in nature and individually insignificant in
amount to disclose separately. These costs contain, among others, expenses for outsourcing
services, mainly in Information Technology and Human Resources, third-party workers, consultants,
warranty, patents, costs for travelling and external legal services. Government grants of EUR 91
million were recognized as a cost reduction in 2024 (2023: EUR 95 million; 2022: EUR 103
million).The grants mainly relate to research and development activities and business development.
Other business income (expenses)
Other business income (expenses) consists of the following:
Philips Group
Other business income (expenses) in millions of EUR
2022
2023
2024
Result on disposal of businesses:
income
4
50
27
expenses
-
-
(14)
Result on disposal of fixed assets:
income
3
12
3
expenses
(1)
(1)
-
Result on other remaining businesses:
income
121
49
560
expenses
(109)
(643)
(1,005)
Other business income (expenses)
18
(533)
(429)
Total other business income
127
112
590
Total other business expenses
(109)
(645)
(1,019)
The result on disposal of businesses mainly relates to income (expense) in the respective periods for
divestments of non-strategic businesses. For more information refer to Acquisitions and
divestments.
The result on disposal of fixed assets mainly relates to the sale of real estate assets.
The result on other remaining businesses mainly relates to the revaluation of contingent
consideration and various legal matters. In 2024, Philips Respironics recorded a EUR 984 million
provision in connection with the settlement of the Respironics personal injury and the medical
monitoring claims in the US. Philips Respironics recorded insurance income of EUR 538 million in
connection with the agreement with insurers to partially reimburse the Respironics recall-related
product liability claims. For more information on contingent consideration, refer to Provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-582": { "value": "
6Income from operations
Accounting policies
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.
Other business income (expenses)
Other business income (expenses) consists of the following:
Philips Group
Other business income (expenses) in millions of EUR
2022
2023
2024
Result on disposal of businesses:
income
4
50
27
expenses
-
-
(14)
Result on disposal of fixed assets:
income
3
12
3
expenses
(1)
(1)
-
Result on other remaining businesses:
income
121
49
560
expenses
(109)
(643)
(1,005)
Other business income (expenses)
18
(533)
(429)
Total other business income
127
112
590
Total other business expenses
(109)
(645)
(1,019)
The result on disposal of businesses mainly relates to income (expense) in the respective periods for
divestments of non-strategic businesses. For more information refer to Acquisitions and
divestments.
The result on disposal of fixed assets mainly relates to the sale of real estate assets.
The result on other remaining businesses mainly relates to the revaluation of contingent
consideration and various legal matters. In 2024, Philips Respironics recorded a EUR 984 million
provision in connection with the settlement of the Respironics personal injury and the medical
monitoring claims in the US. Philips Respironics recorded insurance income of EUR 538 million in
connection with the agreement with insurers to partially reimburse the Respironics recall-related
product liability claims. For more information on contingent consideration, refer to Provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-581": { "value": "
6Income from operations
Accounting policies
Shipping and handling
Expenses incurred for shipping and handling are mainly recorded as cost of sales. When shipping
and handling are part of a project and billed to the customer, then the related expenses are
recorded as cost of sales. Shipping and handling related to sales to third parties are partly recorded
as selling expenses. When shipping and handling billed to customers are considered a distinct and
separate performance obligation, the fees are recognized as revenue and costs included in cost of
sales.
Other business income (expenses)
Other business income (expenses) includes gains and losses on the sale of property, plant and
equipment, gains and losses on the sale of businesses, and other gains and losses not related to the
company\u2019s operating activities.
A breakdown by nature of the income (loss) from operations is as follows:
Philips Group
Sales and costs by nature in millions of EUR
2022
2023
2024
Sales
17,827
18,169
18,021
Costs of materials used
(4,320)
(4,626)
(4,213)
Employee benefit expenses
(6,952)
(6,903)
(6,641)
Depreciation and amortization\u00b9
(1,602)
(1,261)
(1,390)
Impairment of goodwill
(1,357)
(8)
Shipping and handling
(756)
(668)
(623)
Advertising and promotion
(739)
(700)
(791)
Lease expenses
(39)
(51)
(54)
Other operational costs
(3,609)
(3,535)
(3,351)
Other business income (expenses)
18
(533)
(429)
Income from operations
(1,529)
(115)
529
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
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
2022
2023
2024
Salaries and wages excluding share-based
compensation
5,594
5,635
5,356
Share-based compensation
104
97
104
Post-employment benefit costs
439
402
388
Other social security and similar charges:
Required by law
590
567
580
Voluntary
225
202
211
Employee benefit expenses
6,952
6,903
6,641
The employee benefit expenses relate to employees who are working on the payroll of Philips, both
with permanent and temporary contracts.
For further information on post-employment benefit costs, refer to Post-employment benefits.
For details on the remuneration of the members of the Board of Management and the Supervisory
Board, refer to Information on remuneration.
Employees
The number (full-time equivalents, or FTEs) of employees by category at year-end is summarized as
follows:
Philips Group
Employees by category in FTEs as of December 31
2022
2023
2024
Production
30,689
28,640
27,478
Research & development
14,169
12,035
10,843
Other
29,082
26,818
27,795
Employees
73,941
67,493
66,116
Third-party workers
3,292
2,163
1,708
Philips Group
77,233
69,656
67,823
Employees consist of those persons working on the payroll of Philips and whose costs are reflected
in employee benefit expenses. Other consists of employees in commercial, general and
administrative functions. Third-party workers consist of personnel hired on a per-period basis, via
external companies.
Philips Group
Employees by geographical location in average FTEs
2022
2023
2024
Netherlands
11,180
9,794
8,844
Other countries
67,357
62,471
60,113
Philips Group
78,538
72,264
68,956
Depreciation and amortization
Depreciation of property, plant and equipment and amortization of intangible assets, including
impairments, are as follows:
Philips Group
Depreciation and amortization1 in millions of EUR
2022
2023
2024
Depreciation of property, plant and equipment
711
689
696
Amortization of software
117
98
102
Amortization of acquired intangible assets
363
290
392
Amortization of development costs
411
184
199
Depreciation and amortization
1,602
1,261
1,390
1Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible
assets excluding goodwill
Depreciation of property, plant and equipment is mainly included in cost of sales. Amortization of
software is mainly included in general and administration expenses. Amortization of other
intangible assets is included in selling expenses for brand names and customer relationships and is
included in cost of sales for technology-based and other intangible assets. Amortization of
development costs is included in research and development expenses.
Impairment of goodwill
There were no goodwill impairment charges in 2024. In 2023, a goodwill charge of EUR 8 million
was recorded for the partial impairment of goodwill allocated to a business that was classified as
held-for-sale as of December\u00a031, 2023. For further information refer to Goodwill.
Shipping and handling
Shipping and handling costs are included in cost of sales and selling expenses in the Consolidated
statements of income.
Advertising and promotion
Advertising and promotion costs are included in selling expenses in the Consolidated statements of
income.
Lease expense
Lease expense relates to short-term and low value leases.
Other operational costs
Other operational costs contain items which are dissimilar in nature and individually insignificant in
amount to disclose separately. These costs contain, among others, expenses for outsourcing
services, mainly in Information Technology and Human Resources, third-party workers, consultants,
warranty, patents, costs for travelling and external legal services. Government grants of EUR 91
million were recognized as a cost reduction in 2024 (2023: EUR 95 million; 2022: EUR 103
million).The grants mainly relate to research and development activities and business development.
Audit and audit-related fees
The following table shows the fees attributable to the fiscal years 2022, 2023 and 2024 for services
rendered by the external auditors.
Philips Group
Audit and audit-related fees in millions of EUR
2022
2023
2024
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
EY NL\u00b9
EY
Network
Total
Audit fees
9.5
5.6
15.2
9.9
5.0
14.9
8.9
5.5
14.4
consolidated
financial
statements
9.5
3.1
12.6
9.9
2.6
12.5
8.9
3.0
11.9
statutory
financial
statements
2.5
2.5
2.5
2.5
2.5
2.5
Audit-related
fees\u00b2
0.8
0.2
1.0
0.9
0.2
1.1
1.9
0.3
2.2
sustainability
assurance
0.6
0.6
0.8
0.8
1.6
1.6
other
0.1
0.2
0.3
0.2
0.2
0.3
0.3
0.3
0.6
Tax fees
All other fees
Fees
10.3
5.8
16.2
10.8
5.2
16.1
10.8
5.7
16.6
1EY Accountants B.V.
2Also 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
2022
2023
2024
Result on disposal of businesses:
income
4
50
27
expenses
-
-
(14)
Result on disposal of fixed assets:
income
3
12
3
expenses
(1)
(1)
-
Result on other remaining businesses:
income
121
49
560
expenses
(109)
(643)
(1,005)
Other business income (expenses)
18
(533)
(429)
Total other business income
127
112
590
Total other business expenses
(109)
(645)
(1,019)
The result on disposal of businesses mainly relates to income (expense) in the respective periods for
divestments of non-strategic businesses. For more information refer to Acquisitions and
divestments.
The result on disposal of fixed assets mainly relates to the sale of real estate assets.
The result on other remaining businesses mainly relates to the revaluation of contingent
consideration and various legal matters. In 2024, Philips Respironics recorded a EUR 984 million
provision in connection with the settlement of the Respironics personal injury and the medical
monitoring claims in the US. Philips Respironics recorded insurance income of EUR 538 million in
connection with the agreement with insurers to partially reimburse the Respironics recall-related
product liability claims. For more information on contingent consideration, refer to Provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-608": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
In 2024, financial income and expenses net decreased by EUR 32 million year-on-year, mainly due
to higher interest income on cash and cash equivalents and net foreign exchange losses in 2023 ,
partly offset by higher interest expenses and provision-related accretion costs. Net interest expense
in 2024 was EUR 22 million lower than in 2023 , mainly due to an increased cash position which
was invested in short-term interest-bearing assets, partly offset by higher interest expenses. Interest
expenses increased as a result of debt refinancing in 2024 and higher finance charges on lease
contracts.
In 2023 , financial income and expenses, net increased by EUR 114 million year-on-year, mainly due
to fair value losses and net foreign exchange losses in 2023 , compared with gains in 2022. The fair
value losses mainly relate to Power Purchase Agreements for renewable energy, limited-life funds
(mainly Gilde Healthcare) and other investments recognized at fair value through profit and loss.
Furthermore, provision-related accretion expenses and net interest expense were higher in 2023
compared with 2022. Net interest expense in 2023 was EUR 21 million higher than in 2022, mainly
due the issuance of new debt in 2022 and 2023 and the impact of increasing interest rates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-607": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
In 2024, financial income and expenses net decreased by EUR 32 million year-on-year, mainly due
to higher interest income on cash and cash equivalents and net foreign exchange losses in 2023 ,
partly offset by higher interest expenses and provision-related accretion costs. Net interest expense
in 2024 was EUR 22 million lower than in 2023 , mainly due to an increased cash position which
was invested in short-term interest-bearing assets, partly offset by higher interest expenses. Interest
expenses increased as a result of debt refinancing in 2024 and higher finance charges on lease
contracts.
In 2023 , financial income and expenses, net increased by EUR 114 million year-on-year, mainly due
to fair value losses and net foreign exchange losses in 2023 , compared with gains in 2022. The fair
value losses mainly relate to Power Purchase Agreements for renewable energy, limited-life funds
(mainly Gilde Healthcare) and other investments recognized at fair value through profit and loss.
Furthermore, provision-related accretion expenses and net interest expense were higher in 2023
compared with 2022. Net interest expense in 2023 was EUR 21 million higher than in 2022, mainly
due the issuance of new debt in 2022 and 2023 and the impact of increasing interest rates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-606": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
In 2024, financial income and expenses net decreased by EUR 32 million year-on-year, mainly due
to higher interest income on cash and cash equivalents and net foreign exchange losses in 2023 ,
partly offset by higher interest expenses and provision-related accretion costs. Net interest expense
in 2024 was EUR 22 million lower than in 2023 , mainly due to an increased cash position which
was invested in short-term interest-bearing assets, partly offset by higher interest expenses. Interest
expenses increased as a result of debt refinancing in 2024 and higher finance charges on lease
contracts.
In 2023 , financial income and expenses, net increased by EUR 114 million year-on-year, mainly due
to fair value losses and net foreign exchange losses in 2023 , compared with gains in 2022. The fair
value losses mainly relate to Power Purchase Agreements for renewable energy, limited-life funds
(mainly Gilde Healthcare) and other investments recognized at fair value through profit and loss.
Furthermore, provision-related accretion expenses and net interest expense were higher in 2023
compared with 2022. Net interest expense in 2023 was EUR 21 million higher than in 2022, mainly
due the issuance of new debt in 2022 and 2023 and the impact of increasing interest rates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-605": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
In 2024, financial income and expenses net decreased by EUR 32 million year-on-year, mainly due
to higher interest income on cash and cash equivalents and net foreign exchange losses in 2023 ,
partly offset by higher interest expenses and provision-related accretion costs. Net interest expense
in 2024 was EUR 22 million lower than in 2023 , mainly due to an increased cash position which
was invested in short-term interest-bearing assets, partly offset by higher interest expenses. Interest
expenses increased as a result of debt refinancing in 2024 and higher finance charges on lease
contracts.
In 2023 , financial income and expenses, net increased by EUR 114 million year-on-year, mainly due
to fair value losses and net foreign exchange losses in 2023 , compared with gains in 2022. The fair
value losses mainly relate to Power Purchase Agreements for renewable energy, limited-life funds
(mainly Gilde Healthcare) and other investments recognized at fair value through profit and loss.
Furthermore, provision-related accretion expenses and net interest expense were higher in 2023
compared with 2022. Net interest expense in 2023 was EUR 21 million higher than in 2022, mainly
due the issuance of new debt in 2022 and 2023 and the impact of increasing interest rates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-604": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
In 2024, financial income and expenses net decreased by EUR 32 million year-on-year, mainly due
to higher interest income on cash and cash equivalents and net foreign exchange losses in 2023 ,
partly offset by higher interest expenses and provision-related accretion costs. Net interest expense
in 2024 was EUR 22 million lower than in 2023 , mainly due to an increased cash position which
was invested in short-term interest-bearing assets, partly offset by higher interest expenses. Interest
expenses increased as a result of debt refinancing in 2024 and higher finance charges on lease
contracts.
In 2023 , financial income and expenses, net increased by EUR 114 million year-on-year, mainly due
to fair value losses and net foreign exchange losses in 2023 , compared with gains in 2022. The fair
value losses mainly relate to Power Purchase Agreements for renewable energy, limited-life funds
(mainly Gilde Healthcare) and other investments recognized at fair value through profit and loss.
Furthermore, provision-related accretion expenses and net interest expense were higher in 2023
compared with 2022. Net interest expense in 2023 was EUR 21 million higher than in 2022, mainly
due the issuance of new debt in 2022 and 2023 and the impact of increasing interest rates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-600": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
Philips Group
Financial income and expenses in millions of EUR
2022
2023
2024
Interest income
25
46
79
Interest income from loans and receivables
7
13
12
Interest income from cash and cash equivalents
18
33
67
Dividend income from financial assets
3
2
3
Net gains from disposal of financial assets
-
-
2
Net change in fair value of financial assets through
profit or loss
9
-
-
Other financial income
20
15
21
Financial income
58
63
105
Interest expense
(235)
(277)
(288)
Interest expense on debt and borrowings
(200)
(229)
(231)
Finance charges under lease contract
(25)
(27)
(37)
Interest expense on pensions
(10)
(21)
(20)
Provision-related accretion expenses
(9)
(29)
(49)
Net foreign exchange gains (losses)
9
(23)
(7)
Net change in fair value of financial assets through
profit or loss
(26)
(18)
Net change in fair value of derivatives
-
(5)
Other financial expenses
(24)
(21)
(20)
Financial expenses
(258)
(376)
(387)
Financial income and expenses, net
(200)
(314)
(282)
In 2024, financial income and expenses net decreased by EUR 32 million year-on-year, mainly due
to higher interest income on cash and cash equivalents and net foreign exchange losses in 2023 ,
partly offset by higher interest expenses and provision-related accretion costs. Net interest expense
in 2024 was EUR 22 million lower than in 2023 , mainly due to an increased cash position which
was invested in short-term interest-bearing assets, partly offset by higher interest expenses. Interest
expenses increased as a result of debt refinancing in 2024 and higher finance charges on lease
contracts.
In 2023 , financial income and expenses, net increased by EUR 114 million year-on-year, mainly due
to fair value losses and net foreign exchange losses in 2023 , compared with gains in 2022. The fair
value losses mainly relate to Power Purchase Agreements for renewable energy, limited-life funds
(mainly Gilde Healthcare) and other investments recognized at fair value through profit and loss.
Furthermore, provision-related accretion expenses and net interest expense were higher in 2023
compared with 2022. Net interest expense in 2023 was EUR 21 million higher than in 2022, mainly
due the issuance of new debt in 2022 and 2023 and the impact of increasing interest rates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-603": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-602": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-601": { "value": "
7Financial income and expenses
Accounting policies
Financial income and expenses are recognized on the accrual basis in the Consolidated statements
of income. Interest income and expense are measured using the effective interest method. Dividend
income is recognized in the consolidated statements of income on the date that the company\u2019s
right to receive payment is established, which in the case of quoted securities is normally the ex-
dividend date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-610": { "value": "
8Income taxes
Accounting policies
Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the
Consolidated statements of income except to the extent that it relates to items recognized directly
within equity or in other comprehensive income. Current tax is the expected taxes payable on the
taxable income for the year, using tax rates enacted or substantively enacted at the reporting date,
and any adjustment to tax payable in respect of previous years.
In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the
effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities
or, alternatively, a provision is made for the amount that is expected to be settled, where this can
be reasonably estimated. This assessment relies on estimates and assumptions and may involve a
series of judgments about future events. New information may become available that causes the
company to change its judgment regarding the adequacy of existing tax assets and liabilities. Such
changes to tax assets and liabilities will impact the income tax expense in the period during which
such a determination is made.
Deferred tax assets and liabilities are recognized, using the consolidated balance sheet 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: (a) the initial recognition of goodwill; or (b) the initial recognition
of an asset or liability in a transaction which: (i) is not a business combination, (ii) at the time of
transaction, affects neither accounting profit nor taxable profit (tax loss), (iii) at the time of the
transaction, does not give rise to equal amounts of taxable and deductible differences; or (c)
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 \u2018discontinued operations\u2019 are sufficiently separable from continuing
operations.
Consistent with the IAS 12 amendment regarding Pillar Two taxation as issued by the IASB and
adopted by the EU, Philips does not recognize and disclose deferred taxes arising from tax laws that
implement Pillar Two model rules published by the Organization for Economic Co-operation and
Development.
Accounting estimates and judgments
Deferred tax recoverability
Deferred tax assets are recognized to the extent that it is probable that there will be future taxable
profits against which these can be utilized. Significant judgment is involved in determining whether
such profits are probable. Management determines this on the basis of expected taxable profits
arising from the reversal of recognized deferred tax liabilities, on appropriate tax planning
opportunities to support business goals and on the basis of forecasts.
Uncertain tax positions
Uncertain tax positions are recognized as liabilities if and to the extent it is probable that additional
tax will be due and the amount can be reliably measured. Significant judgment is involved in
determining these positions.
The income tax expense of continuing operations amounts to EUR 963 million ( 2023 : EUR 73
million tax benefit; 2022: EUR 113 million tax benefit).
The components of income before taxes and income tax expense are as follows:
Philips Group
Income tax expense in millions of EUR
2022
2023
2024
Income before taxes
(1,731)
(526)
123
Investments in associates, net of income taxes
(2)
(98)
(124)
Income before taxes excluding Investment in
associates
(1,729)
(429)
247
Current tax (expense) benefit
(97)
(201)
(140)
Deferred tax (expense) benefit
210
274
(823)
Income tax (expense) benefit of continuing
operations
113
73
(963)
Income tax expense of continuing operations excludes the tax benefit of the discontinued
operations of EUR 143 million (2023 : EUR 9 million benefit; 2022: EUR 18 million benefit), mainly
related to the tax audit settlements of prior years.
The components of income tax expense of continuing operations are as follows:
Philips Group
Current income tax expense in millions of EUR
2022
2023
2024
Current year tax (expense) benefit
(111)
(211)
(150)
Prior year tax (expense) benefit
14
10
9
Current tax (expense) benefit
(97)
(201)
(140)
Philips Group
Deferred income tax expense in millions of EUR
2022
2023
2024
Recognition of previously unrecognized tax loss
and credit carryforwards
2
72
5
Unrecognized tax loss and credit carryforwards
(13)
(41)
(351)
Changes to recognition of temporary differences
(4)
(112)
(602)
Prior year tax (expense) benefit
(1)
(2)
(13)
Tax rate changes
(18)
4
2
Origination and reversal of temporary differences,
tax losses and tax credits
244
353
136
Deferred tax (expense) benefit
210
274
(823)
The increase in deferred tax expense in 2024 is mainly due to the de-recognition of deferred tax
assets in the US.
Philips\u2019 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\u2019 statutory income tax rate of 25.8% (2023: 25.8%; 2022:
25.8% ).
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 %
2022
2023
2024
Weighted average statutory income tax rate in %
23.6
22.0
26.6
Recognition of previously unrecognized tax loss
and credit carryforwards
0.1
16.8
(1.9)
Unrecognized tax loss and credit carryforwards
(0.7)
(9.6)
141.8
Changes to recognition of temporary differences
(0.2)
(26.2)
243.6
Non-taxable income and tax incentives
5.8
22.8
(30.2)
Non-deductible expenses
(22.9)
(10.7)
10.0
Withholding and other taxes
(1.4)
(5.1)
16.0
Tax rate changes
(1.0)
0.9
(0.9)
Prior year tax
0.7
1.9
1.2
Tax expense (benefit) due to change in uncertain
tax treatments
2.8
2.3
(20.4)
Others, net
(0.2)
1.9
3.1
Effective income tax rate
6.5
17.0
389.5
The effective income tax rate in 2024 is higher than the weighted average statutory income tax
rate, primarily due to the changes in the recognition of temporary differences and unrecognized tax
loss and credit carryforwards. This specifically relates to the de-recognition of deferred tax assets
associated with the Respironics litigation provision and carryforward losses along with temporary
differences in the United States (EUR 941 million). This increase is partly offset by the release of
uncertain tax positions and recurring tax incentives related to the innovation box regime in the
Netherlands, R&D investments and export activities.
Global minimum tax (Pillar Two)
In December 2021, the OECD released model rules to introduce a global minimum corporate
income tax rate of 15% applicable to multinational enterprise groups with global revenue over EUR
750 million (Pillar Two). The formal adoption of Council Directive (EU) 2022/2523 in December
2022 aims to achieve a coordinated implementation of Pillar Two in the EU Member States. The
Dutch Government adopted the Minimum Tax Rate Act 2024 (MTR Act), in December 2023 and
the Pillar Two legislation has been applicable in local law with effect from 2024 in the Netherlands,
the EU and multiple other countries around the world. Therefore, Pillar Two applies to Philips from
the financial year ending December 31, 2024, and onward. Under this legislation, Philips is
generally required to pay top-up taxes on profits if the related Pillar Two jurisdictional effective tax
rate is less than 15% .
The current tax expense related to Pillar Two is EUR 1 million, resulting in an increase of ETR by
0.4%. This amount has been accounted for within the income taxes of the reporting period.
With reference to the income taxes accounting policy, Philips does not recognize and disclose
deferred taxes arising from tax laws that implement Pillar Two model rules published by the
Organization for Economic Co-operation and Development.
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 relating to the years 2024 and 2023, respectively, are presented in the
following tables.
The net deferred tax assets of EUR 1,835 million ( 2023: EUR 2,556 million) consist of deferred tax
assets of EUR 1,916 million ( 2023 : EUR 2,627 million) and deferred tax liabilities of EUR 81 million
(2023: EUR 71 million). Of the total deferred tax assets of EUR 1,916 million as of December 31,
2024 (2023: EUR 2,627 million), EUR 1,188 million (2023: EUR 1,676 million ) is recognized with
respect to entities in various countries where there have been tax losses in the current or preceding
period, primarily the US. Based on Philips' assessment of the recoverability of the recognized
deferred tax assets, the net decrease mainly relates to de-recognition of deferred tax assets on
carryforward losses, intangible assets and other liabilities, which include provisions for Respironics
litigation in the US. The decrease mainly results from updates to the company's long term income
projections by jurisdiction, including the US.
Philips recognizes deferred tax assets only to the extent future tax profits are considered probable.
For the recoverability assessment, the income projections were determined using similar
methodology as used for goodwill impairment testing (for more information refer to note
Goodwill ). The company evaluated multiple risk-adjusted scenarios that support the assumption
that it is probable that the results of future operations will generate sufficient taxable income to
utilize the recognized tax losses as well the deductible temporary differences. The projections
include forward-looking assumptions whereby the most recent available information was used to
determine the expected period of recovery of the deferred tax assets. Relevant developments
potentially impacting the period and probability of recovery are monitored closely.
A change in enacted tax rates or a revision to risk-adjusted long term income projections by
jurisdiction could have an impact on the measurement of deferred tax assets.
As of December 31, 2024, the temporary differences associated with investments, including
potential income tax consequences on dividends, for which no deferred tax liabilities are
recognized, aggregate to EUR 340 million (2023: EUR 444 million).
Philips Group
Deferred tax assets and liabilities in millions of EUR
Balance as
of January
1, 2024
Recognized
in income
statement
Other\u00b9
Balance as
of
December
31, 2024
Assets
Liabilities
Intangible assets
679
(333)
26
373
533
(160)
Property, plant and
equipment
(88)
25
(1)
(64)
39
(103)
Inventories
360
(9)
13
364
369
(5)
Other assets
184
(25)
(9)
151
207
(56)
Pensions and other long-
term employee benefits
193
(61)
20
152
179
(27)
Other liabilities
496
(198)
20
319
365
(47)
Deferred tax assets on tax
loss carryforwards
730
(222)
33
541
541
Set-off deferred tax
positions
(317)
317
Net deferred tax assets
2,556
(823)
102
1,835
1,916
(81)
1Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign
currency translation differences, acquisitions and divestments.
Philips Group
Deferred tax assets and liabilities in millions of EUR
Balance as
of January
1, 2023
Recognized
in income
statement
Other\u00b9
Balance as
of
December
31, 2023
Assets
Liabilities
Intangible assets
630
61
(12)
679
826
(147)
Property, plant and
equipment
(2)
18
(103)
(88)
44
(132)
Inventories
464
(26)
(78)
360
363
(2)
Other assets
44
20
120
184
233
(48)
Pensions and other
employee benefits
153
69
(29)
193
204
(11)
Other liabilities
483
(56)
69
496
521
(25)
Deferred tax assets on tax
loss carryforwards
586
188
(44)
730
730
Set-off deferred tax
positions
(294)
294
Net deferred tax assets
2,358
274
(77)
2,556
2,627
(71)
1Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign
currency translation differences, acquisitions and divestments.
As of December\u00a031, 2024, the amount of deductible temporary differences for which no deferred
tax asset has been recognized in the balance sheet was EUR 788 million (2023: EUR 125 million).
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, 2023
Unrecognized
balance as of
December 31, 2023
Total balance as of
December 31,
2024
Unrecognized
balance as of
December 31,
2024
Within 1 year
17
15
21
21
1 to 2 years
20
16
5
4
2 to 3 years
7
2
6
3
3 to 4 years
9
5
15
6
4 to 5 years
38
16
146
64
Later
808
81
807
771
Unlimited
2,997
1,231
3,342
1,695
Total
3,896
1,366
4,342
2,564
The increase in the unrecognized balance as of December\u00a031, 2024 mainly relates to the US.
Tax risks
Philips is exposed to tax risks and uncertainty over tax treatments. For particular tax treatments that
are not expected to be accepted by tax authorities, Philips either recognizes a liability or reflects the
uncertainty in the recognition and measurement of its current and deferred tax assets and tax
attributes. For the measurement of the uncertainty, Philips uses the most likely amount or the
expected value of the tax treatment. The expected liabilities resulting from the uncertain tax
treatments are included in non-current tax liabilities (2024: EUR 116 million; 2023: EUR 390 million,
and this decrease mainly relates to releases and settlements arising out of the tax audit settlements
of prior years, in combination with higher tax losses or similar tax carryforwards that can be used if
uncertain tax treatments were settled for the presumed amount at balance sheet date). The
positions include, among others, the following:
Transfer pricing risks
Philips has issued transfer pricing directives, which are in accordance with international guidelines
such as those of the Organization of Economic Co-operation and Development. In order to reduce
the transfer pricing uncertainties, monitoring procedures are carried out by Group Tax to safeguard
the correct implementation of the transfer pricing directives. However, tax disputes can arise due to
inconsistent transfer pricing regimes and different views on 'at arm's length' pricing.
Tax risks on general and specific service agreements and licensing agreements
Due to the centralization of certain activities (such as research and development, IT and group
Functions), costs are also centralized. As a consequence, these costs and/or revenues must be
allocated to the beneficiaries, i.e., the various Philips entities. For that purpose, service contracts
such as intra-group service agreements and licensing agreements are signed with a large number of
group entities. Tax authorities review these intra-group service and licensing agreements, and may
reject the implemented intra-group charges. Furthermore, buy in/out situations in the case of
(de)mergers could affect the cost allocation resulting from the intra-group 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.
23Cash flow statement supplementary information
Income taxes
Income taxes in 2023 include EUR 2 million of interest related to uncertain tax positions.", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-609": { "value": "
8Income taxes
Accounting policies
Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the
Consolidated statements of income except to the extent that it relates to items recognized directly
within equity or in other comprehensive income. Current tax is the expected taxes payable on the
taxable income for the year, using tax rates enacted or substantively enacted at the reporting date,
and any adjustment to tax payable in respect of previous years.
In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the
effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities
or, alternatively, a provision is made for the amount that is expected to be settled, where this can
be reasonably estimated. This assessment relies on estimates and assumptions and may involve a
series of judgments about future events. New information may become available that causes the
company to change its judgment regarding the adequacy of existing tax assets and liabilities. Such
changes to tax assets and liabilities will impact the income tax expense in the period during which
such a determination is made.
Deferred tax assets and liabilities are recognized, using the consolidated balance sheet 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: (a) the initial recognition of goodwill; or (b) the initial recognition
of an asset or liability in a transaction which: (i) is not a business combination, (ii) at the time of
transaction, affects neither accounting profit nor taxable profit (tax loss), (iii) at the time of the
transaction, does not give rise to equal amounts of taxable and deductible differences; or (c)
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 \u2018discontinued operations\u2019 are sufficiently separable from continuing
operations.
Consistent with the IAS 12 amendment regarding Pillar Two taxation as issued by the IASB and
adopted by the EU, Philips does not recognize and disclose deferred taxes arising from tax laws that
implement Pillar Two model rules published by the Organization for Economic Co-operation and
Development.
Accounting estimates and judgments
Deferred tax recoverability
Deferred tax assets are recognized to the extent that it is probable that there will be future taxable
profits against which these can be utilized. Significant judgment is involved in determining whether
such profits are probable. Management determines this on the basis of expected taxable profits
arising from the reversal of recognized deferred tax liabilities, on appropriate tax planning
opportunities to support business goals and on the basis of forecasts.
Uncertain tax positions
Uncertain tax positions are recognized as liabilities if and to the extent it is probable that additional
tax will be due and the amount can be reliably measured. Significant judgment is involved in
determining these positions.
The components of income before taxes and income tax expense are as follows:
Philips Group
Income tax expense in millions of EUR
2022
2023
2024
Income before taxes
(1,731)
(526)
123
Investments in associates, net of income taxes
(2)
(98)
(124)
Income before taxes excluding Investment in
associates
(1,729)
(429)
247
Current tax (expense) benefit
(97)
(201)
(140)
Deferred tax (expense) benefit
210
274
(823)
Income tax (expense) benefit of continuing
operations
113
73
(963)
Income tax expense of continuing operations excludes the tax benefit of the discontinued
operations of EUR 143 million (2023 : EUR 9 million benefit; 2022: EUR 18 million benefit), mainly
related to the tax audit settlements of prior years.
Philips Group
Deferred income tax expense in millions of EUR
2022
2023
2024
Recognition of previously unrecognized tax loss
and credit carryforwards
2
72
5
Unrecognized tax loss and credit carryforwards
(13)
(41)
(351)
Changes to recognition of temporary differences
(4)
(112)
(602)
Prior year tax (expense) benefit
(1)
(2)
(13)
Tax rate changes
(18)
4
2
Origination and reversal of temporary differences,
tax losses and tax credits
244
353
136
Deferred tax (expense) benefit
210
274
(823)
The increase in deferred tax expense in 2024 is mainly due to the de-recognition of deferred tax
assets in the US.
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 relating to the years 2024 and 2023, respectively, are presented in the
following tables.
The net deferred tax assets of EUR 1,835 million ( 2023: EUR 2,556 million) consist of deferred tax
assets of EUR 1,916 million ( 2023 : EUR 2,627 million) and deferred tax liabilities of EUR 81 million
(2023: EUR 71 million). Of the total deferred tax assets of EUR 1,916 million as of December 31,
2024 (2023: EUR 2,627 million), EUR 1,188 million (2023: EUR 1,676 million ) is recognized with
respect to entities in various countries where there have been tax losses in the current or preceding
period, primarily the US. Based on Philips' assessment of the recoverability of the recognized
deferred tax assets, the net decrease mainly relates to de-recognition of deferred tax assets on
carryforward losses, intangible assets and other liabilities, which include provisions for Respironics
litigation in the US. The decrease mainly results from updates to the company's long term income
projections by jurisdiction, including the US.
Philips recognizes deferred tax assets only to the extent future tax profits are considered probable.
For the recoverability assessment, the income projections were determined using similar
methodology as used for goodwill impairment testing (for more information refer to note
Goodwill ). The company evaluated multiple risk-adjusted scenarios that support the assumption
that it is probable that the results of future operations will generate sufficient taxable income to
utilize the recognized tax losses as well the deductible temporary differences. The projections
include forward-looking assumptions whereby the most recent available information was used to
determine the expected period of recovery of the deferred tax assets. Relevant developments
potentially impacting the period and probability of recovery are monitored closely.
A change in enacted tax rates or a revision to risk-adjusted long term income projections by
jurisdiction could have an impact on the measurement of deferred tax assets.
As of December 31, 2024, the temporary differences associated with investments, including
potential income tax consequences on dividends, for which no deferred tax liabilities are
recognized, aggregate to EUR 340 million (2023: EUR 444 million).
Philips Group
Deferred tax assets and liabilities in millions of EUR
Balance as
of January
1, 2024
Recognized
in income
statement
Other\u00b9
Balance as
of
December
31, 2024
Assets
Liabilities
Intangible assets
679
(333)
26
373
533
(160)
Property, plant and
equipment
(88)
25
(1)
(64)
39
(103)
Inventories
360
(9)
13
364
369
(5)
Other assets
184
(25)
(9)
151
207
(56)
Pensions and other long-
term employee benefits
193
(61)
20
152
179
(27)
Other liabilities
496
(198)
20
319
365
(47)
Deferred tax assets on tax
loss carryforwards
730
(222)
33
541
541
Set-off deferred tax
positions
(317)
317
Net deferred tax assets
2,556
(823)
102
1,835
1,916
(81)
1Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign
currency translation differences, acquisitions and divestments.
Philips Group
Deferred tax assets and liabilities in millions of EUR
Balance as
of January
1, 2023
Recognized
in income
statement
Other\u00b9
Balance as
of
December
31, 2023
Assets
Liabilities
Intangible assets
630
61
(12)
679
826
(147)
Property, plant and
equipment
(2)
18
(103)
(88)
44
(132)
Inventories
464
(26)
(78)
360
363
(2)
Other assets
44
20
120
184
233
(48)
Pensions and other
employee benefits
153
69
(29)
193
204
(11)
Other liabilities
483
(56)
69
496
521
(25)
Deferred tax assets on tax
loss carryforwards
586
188
(44)
730
730
Set-off deferred tax
positions
(294)
294
Net deferred tax assets
2,358
274
(77)
2,556
2,627
(71)
1Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign
currency translation differences, acquisitions and divestments.
As of December\u00a031, 2024, the amount of deductible temporary differences for which no deferred
tax asset has been recognized in the balance sheet was EUR 788 million (2023: EUR 125 million).
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, 2023
Unrecognized
balance as of
December 31, 2023
Total balance as of
December 31,
2024
Unrecognized
balance as of
December 31,
2024
Within 1 year
17
15
21
21
1 to 2 years
20
16
5
4
2 to 3 years
7
2
6
3
3 to 4 years
9
5
15
6
4 to 5 years
38
16
146
64
Later
808
81
807
771
Unlimited
2,997
1,231
3,342
1,695
Total
3,896
1,366
4,342
2,564
The increase in the unrecognized balance as of December\u00a031, 2024 mainly relates to the US.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-611": { "value": "
8Income taxes
Accounting policies
In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the
effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities
or, alternatively, a provision is made for the amount that is expected to be settled, where this can
be reasonably estimated. This assessment relies on estimates and assumptions and may involve a
series of judgments about future events. New information may become available that causes the
company to change its judgment regarding the adequacy of existing tax assets and liabilities. Such
changes to tax assets and liabilities will impact the income tax expense in the period during which
such a determination is made.
Deferred tax assets and liabilities are recognized, using the consolidated balance sheet 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: (a) the initial recognition of goodwill; or (b) the initial recognition
of an asset or liability in a transaction which: (i) is not a business combination, (ii) at the time of
transaction, affects neither accounting profit nor taxable profit (tax loss), (iii) at the time of the
transaction, does not give rise to equal amounts of taxable and deductible differences; or (c)
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 \u2018discontinued operations\u2019 are sufficiently separable from continuing
operations.
Consistent with the IAS 12 amendment regarding Pillar Two taxation as issued by the IASB and
adopted by the EU, Philips does not recognize and disclose deferred taxes arising from tax laws that
implement Pillar Two model rules published by the Organization for Economic Co-operation and
Development.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-612": { "value": "
8Income taxes
Accounting policies
Income taxes comprise current, non-current and deferred tax. Income tax is recognized in the
Consolidated statements of income except to the extent that it relates to items recognized directly
within equity or in other comprehensive income. Current tax is the expected taxes payable on the
taxable income for the year, using tax rates enacted or substantively enacted at the reporting date,
and any adjustment to tax payable in respect of previous years.
In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the
effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities
or, alternatively, a provision is made for the amount that is expected to be settled, where this can
be reasonably estimated. This assessment relies on estimates and assumptions and may involve a
series of judgments about future events. New information may become available that causes the
company to change its judgment regarding the adequacy of existing tax assets and liabilities. Such
changes to tax assets and liabilities will impact the income tax expense in the period during which
such a determination is made.
Deferred tax assets and liabilities are recognized, using the consolidated balance sheet 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: (a) the initial recognition of goodwill; or (b) the initial recognition
of an asset or liability in a transaction which: (i) is not a business combination, (ii) at the time of
transaction, affects neither accounting profit nor taxable profit (tax loss), (iii) at the time of the
transaction, does not give rise to equal amounts of taxable and deductible differences; or (c)
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 \u2018discontinued operations\u2019 are sufficiently separable from continuing
operations.
Consistent with the IAS 12 amendment regarding Pillar Two taxation as issued by the IASB and
adopted by the EU, Philips does not recognize and disclose deferred taxes arising from tax laws that
implement Pillar Two model rules published by the Organization for Economic Co-operation and
Development.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-614": { "value": "
9Earnings per share
Accounting policies
The company presents basic and diluted earnings per share (EPS) data for its common shares. Basic
EPS is calculated by dividing the Net income (loss) attributable to shareholders by the weighted
average number of common shares outstanding (after deduction of treasury shares) during the
period. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders
and the weighted average number of common shares outstanding (after deduction of treasury
shares) during the period, for the effects of all dilutive potential common shares, which comprise
performance shares, restricted shares and share options granted under share-based compensation
plans as well as forward contracts to repurchase shares.
Philips Group
Earnings per share in millions of EUR unless otherwise stated 1
2022
2023
2024
Income from continuing operations
(1,618)
(454)
(840)
Income from continuing operations attributable to shareholders
(1,622)
(456)
(843)
Income from continuing operations attributable to non-controlling interests
3
2
3
Income from discontinued operations
13
(10)
142
Income from discontinued operations attributable to shareholders
13
(10)
142
Net income
(1,605)
(463)
(698)
Net income attributable to shareholders
(1,608)
(466)
(702)
Net income attributable to non-controlling interests
3
2
3
Weighted average number of common shares outstanding (after deduction of treasury shares) during the period
951,811,382
948,300,672
933,370,814
Plus incremental shares from assumed conversions of:
Share options
25,506
232,965
Performance shares
1,147,790
2,623,097
4,958,144
Restricted shares
1,986,538
2,574,738
3,898,844
Forward contracts to repurchase shares
17,611,920
15,511,844
1,835,048
Dilutive potential common shares\u00b2
20,771,753
20,709,680
10,925,002
Diluted weighted average number of shares outstanding (after deduction of treasury shares) during the period
951,811,382
948,300,672
933,370,814
Basic earnings per common share attributable to shareholders (in EUR)
Income from continuing operations
(1.70)
(0.48)
(0.90)
Income from discontinued operations
0.01
(0.01)
0.15
Net income
(1.69)
(0.49)
(0.75)
Diluted earnings per common share attributable to shareholders (in EUR)\u00b2
Income from continuing operations
(1.70)
(0.48)
(0.90)
Income from discontinued operations
0.01
(0.01)
0.15
Net income
(1.69)
(0.49)
(0.75)
Dividend distributed per common share in EUR
0.85
0.85
0.85
1 Shareholders in this table refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares for the share dividend in respect of 2023.
2The dilutive potential common shares are not taken into account in the periods for which there is a loss, as the effect would be antidilutive.
Per-share calculations adjusted for share dividend
On May 7, 2024, the General Meeting of Shareholders approved a dividend of EUR 0.85 per
common share, in shares only. The dividend was settled in May through the issuance of
30,860,582 new common shares. In accordance with IAS 33 Earnings Per Share, per share
calculations have been adjusted retrospectively for all periods presented to reflect the issuance of
shares for the share dividend with respect to 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-613": { "value": "
9Earnings per share
Accounting policies
The company presents basic and diluted earnings per share (EPS) data for its common shares. Basic
EPS is calculated by dividing the Net income (loss) attributable to shareholders by the weighted
average number of common shares outstanding (after deduction of treasury shares) during the
period. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders
and the weighted average number of common shares outstanding (after deduction of treasury
shares) during the period, for the effects of all dilutive potential common shares, which comprise
performance shares, restricted shares and share options granted under share-based compensation
plans as well as forward contracts to repurchase shares.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-615": { "value": "0.85", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-616": { "value": "0.85", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-617": { "value": "0.85", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-624": { "value": "
10Property, plant and equipment
Accounting policies
Owned assets
The cost of property, plant and equipment comprise all directly attributable costs (including the cost
of material and direct labor).
Depreciation is generally calculated using the straight-line method over the useful life of the asset.
Land and assets under construction are not depreciated. When assets under construction are ready
for their intended use, they are transferred to the relevant asset category and depreciation starts.
All other property, plant and equipment items are depreciated over their estimated useful lives to
their estimated residual values.
The estimated useful lives of property, plant and equipment are as follows:
Philips Group
Useful lives of property, plant and equipment
\u00a0
\u00a0
Buildings
from\u00a05 to 50\u00a0years
Machinery and installations
from 3\u00a0to 20 years
Other equipment
from 1 to 10 years
Property, plant and equipment are reviewed for impairment whenever events or changes in
circumstances indicate that the book value of the assets concerned may not be recoverable. An
impairment loss is recognized for the amount by which the asset's book value exceeds their
recoverable amount. Impairments are reversed if and to the extent that the impairment no longer
exists. The recoverable amount is defined as the higher of the asset\u2019s fair value less costs of disposal
and its value in use.
Gains and losses on the sale of property, plant and equipment are included in other business
income. Costs related to repair and maintenance activities are expensed in the period in which they
are incurred unless they extend the asset's original lifetime or capacity.
Accounting estimates and judgments
Impairment of owned and right-of-use assets
Judgments are required, not only to determine whether there is an indication that an asset may be
impaired, but also whether indications exist that impairment losses previously recognized may no
longer exist or may have decreased (impairment reversal). After indications of impairment have
been identified, estimates and assumptions are used in the determination of the recoverable
amount of a fixed asset. These involve estimates of expected future cash flows (based on future
growth rates and remaining useful life) and residual value assumptions, as well as discount rates to
calculate the present value of the future cash flows.
Owned assets
Estimates are required to determine the (remaining) useful lives of fixed assets. Useful lives are
determined based on an asset's age, the frequency of its use, repair and maintenance policy,
technology changes in production and expected restructuring. The company estimates the
expected residual value per asset item. The residual value is the higher of the asset's expected sales
price (based on recent market transactions of similar sold items) and its material scrap value.
Property, plant and equipment are fixed assets that are owned or right-of-use assets under a lease
agreement. Owned and right-of-use assets are held for use in Philips' operating activities.
Philips Group
Property, plant and equipment in millions of EUR\u00a0
2023
2024
Owned assets
1,565
1,565
Right-of-use assets
919
886
Total
2,483
2,452
Philips Group
Property, plant and equipment\u00a0 in millions of EUR
Owned assets
Right-of-use assets
Property, plant
and equipment
Land and
buildings
Machinery and
installations
Other
equipment
Assets under
construction
Total
Land and
buildings
Other
equipment
Total
Total
Balance as of January 1, 2024
Cost
1,114
1,731
1,404
274
4,521
1,425
216
1,641
6,162
Accumulated depreciation
(638)
(1,278)
(1,041)
(2,957)
(619)
(104)
(722)
(3,679)
Book value
476
453
363
274
1,565
806
113
919
2,483
Additions
2
134
76
236
448
101
87
189
637
Assets available for use
12
70
140
(248)
(26)
26
-
26
-
Depreciation
(49)
(191)
(166)
(406)
(146)
(56)
(202)
(608)
Impairments
(14)
(23)
(28)
-
(65)
(23)
-
(23)
(89)
Transfers to assets classified as held for sale
-
-
-
Reclassifications
7
(6)
8
(1)
8
(9)
(3)
(12)
(4)
Translation differences and other
20
2
9
10
41
(6)
(4)
(10)
31
Total change
(22)
(13)
38
(3)
1
(57)
24
(33)
(32)
Balance as of December 31, 2024
Cost
1,151
1,790
1,527
271
4,738
1,462
241
1,702
6,441
Accumulated depreciation
(697)
(1,350)
(1,126)
(3,173)
(712)
(104)
(816)
(3,989)
Book value
454
440
401
271
1,565
749
137
886
2,452
Philips Group
Property, plant and equipment\u00a0in millions of EUR\u00a0
Owned assets
Right-of-use assets
Property, plant
and equipment
Land and
buildings
Machinery and
installations
Other
equipment
Assets under
construction
Total
Land and
buildings
Other
equipment
Total
Total
Balance as of January 1, 2023
Cost
1,135
1,779
1,454
309
4,676
1,365
206
1,571
6,247
Accumulated depreciation
(621)
(1,291)
(1,046)
(2,958)
(543)
(108)
(651)
(3,609)
Book value
514
488
408
309
1,718
822
98
919
2,638
Additions
1
115
77
239
433
175
62
236
669
Assets available for use
20
90
144
(262)
(8)
2
6
8
-
Depreciation
(56)
(196)
(167)
(420)
(150)
(51)
(201)
(621)
Impairments
(5)
(23)
(17)
-
(45)
(23)
-
(23)
(68)
Transfers to assets classified as held for sale
(1)
(1)
(45)
(46)
(2)
(2)
(48)
Reclassifications
15
2
(17)
(5)
(6)
-
4
4
(2)
Translation differences and other
(14)
(22)
(19)
(7)
(62)
(18)
(5)
(23)
(85)
Total change
(39)
(35)
(45)
(35)
(154)
(16)
15
(1)
(154)
Balance as of December 31, 2023
Cost
1,114
1,731
1,404
274
4,521
1,425
216
1,641
6,162
Accumulated depreciation
(638)
(1,278)
(1,041)
(2,957)
(619)
(104)
(722)
(3,679)
Book value
476
453
363
274
1,565
806
113
919
2,483
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-623": { "value": "
10Property, plant and equipment
Accounting policies
Owned assets
The cost of property, plant and equipment comprise all directly attributable costs (including the cost
of material and direct labor).
Depreciation is generally calculated using the straight-line method over the useful life of the asset.
Land and assets under construction are not depreciated. When assets under construction are ready
for their intended use, they are transferred to the relevant asset category and depreciation starts.
All other property, plant and equipment items are depreciated over their estimated useful lives to
their estimated residual values.
The estimated useful lives of property, plant and equipment are as follows:
Philips Group
Useful lives of property, plant and equipment
\u00a0
\u00a0
Buildings
from\u00a05 to 50\u00a0years
Machinery and installations
from 3\u00a0to 20 years
Other equipment
from 1 to 10 years
Property, plant and equipment are reviewed for impairment whenever events or changes in
circumstances indicate that the book value of the assets concerned may not be recoverable. An
impairment loss is recognized for the amount by which the asset's book value exceeds their
recoverable amount. Impairments are reversed if and to the extent that the impairment no longer
exists. The recoverable amount is defined as the higher of the asset\u2019s fair value less costs of disposal
and its value in use.
Gains and losses on the sale of property, plant and equipment are included in other business
income. Costs related to repair and maintenance activities are expensed in the period in which they
are incurred unless they extend the asset's original lifetime or capacity.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-625": { "value": "
10Property, plant and equipment
Accounting policies
Owned assets
The cost of property, plant and equipment comprise all directly attributable costs (including the cost
of material and direct labor).
Depreciation is generally calculated using the straight-line method over the useful life of the asset.
Land and assets under construction are not depreciated. When assets under construction are ready
for their intended use, they are transferred to the relevant asset category and depreciation starts.
All other property, plant and equipment items are depreciated over their estimated useful lives to
their estimated residual values.
The estimated useful lives of property, plant and equipment are as follows:
Philips Group
Useful lives of property, plant and equipment
\u00a0
\u00a0
Buildings
from\u00a05 to 50\u00a0years
Machinery and installations
from 3\u00a0to 20 years
Other equipment
from 1 to 10 years
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-618": { "value": "
10Property, plant and equipment
Accounting policies
Owned assets
The cost of property, plant and equipment comprise all directly attributable costs (including the cost
of material and direct labor).
Depreciation is generally calculated using the straight-line method over the useful life of the asset.
Land and assets under construction are not depreciated. When assets under construction are ready
for their intended use, they are transferred to the relevant asset category and depreciation starts.
All other property, plant and equipment items are depreciated over their estimated useful lives to
their estimated residual values.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-622": { "value": "
10Property, plant and equipment
Accounting policies
Owned assets
Gains and losses on the sale of property, plant and equipment are included in other business
income. Costs related to repair and maintenance activities are expensed in the period in which they
are incurred unless they extend the asset's original lifetime or capacity.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-621": { "value": "
10Property, plant and equipment
Accounting policies
Property, plant and equipment are reviewed for impairment whenever events or changes in
circumstances indicate that the book value of the assets concerned may not be recoverable. An
impairment loss is recognized for the amount by which the asset's book value exceeds their
recoverable amount. Impairments are reversed if and to the extent that the impairment no longer
exists. The recoverable amount is defined as the higher of the asset\u2019s fair value less costs of disposal
and its value in use.
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.
12Intangible assets excluding goodwill
Accounting policies
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
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.
13Other financial assets
Accounting policies
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-620": { "value": "
10Property, plant and equipment
Accounting policies
Property, plant and equipment are reviewed for impairment whenever events or changes in
circumstances indicate that the book value of the assets concerned may not be recoverable. An
impairment loss is recognized for the amount by which the asset's book value exceeds their
recoverable amount. Impairments are reversed if and to the extent that the impairment no longer
exists. The recoverable amount is defined as the higher of the asset\u2019s fair value less costs of disposal
and its value in use.
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.
12Intangible assets excluding goodwill
Accounting policies
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-619": { "value": "
10Property, plant and equipment
Accounting policies
Right-of-use assets
The company leases various items of real estate, vehicles and other equipment. The company
determines whether an arrangement constitutes or contains a lease based on the substance of the
arrangement at the lease inception. The arrangement constitutes or contains a lease if fulfillment is
dependent on the use of a specific asset and the arrangement conveys a right to use the asset,
even if that asset is not explicitly specified in the arrangement.
Company as a lessee
The company recognizes right-of-use assets and lease liabilities for leases with a term of more than
12 months if the underlying asset is not of low value. Payments for short-term and low-value leases
are expensed over the lease term. Extension options are included in the lease term if their exercise
is reasonably certain. Right-of-use assets are measured at cost less accumulated depreciation and
impairment losses, adjusted for any remeasurements. Right-of-use assets are depreciated using the
straight-line method over the shorter of the lease term and the useful life of the underlying assets.
Company as a lessor
When the company acts as a lessor, it determines at lease inception whether a lease is a finance
lease or an operating lease. Leases in which the company does not transfer substantially all the risks
and rewards incidental to ownership of an asset are classified as operating leases. The company
recognizes lease payments received under operating leases as income on a straight-line basis over
the lease term in the Consolidated statement of income.
18Debt
Accounting policies
Lease liabilities
Lease liabilities are measured at the present value of the lease payments due over the lease term,
generally discounted using the incremental borrowing rate. Lease liabilities are subsequently
measured at amortized cost using the effective interest method. Lease liabilities are remeasured in
case of modifications or reassessments of the lease.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-627": { "value": "
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.
12Intangible assets excluding goodwill
Accounting policies
Acquired finite-lived intangible assets are amortized using the straight-line method over their
estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized
at cost, with the exception of intangible assets acquired as part of a business combination, which
are capitalized at their acquisition date fair value.
The company expenses all research costs as incurred. Expenditure on development activities,
whereby research findings are applied to a plan or design for the production of new or substantially
improved products and processes, is capitalized as an intangible asset if the product or process is
technically and commercially feasible, the company has sufficient resources and the intention to
complete development and can measure the attributable expenditure reliably.
The capitalized development expenditure comprises of all directly attributable costs (including the
cost of materials and direct labor). Other development expenditures and expenditures on research
activities are recognized in the Consolidated statements of income. Capitalized development
expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of
capitalized development expenditure is charged to the Consolidated statements of income on a
straight-line basis over the estimated useful lives of the intangible assets.
Philips Group
Expected useful lives of intangible assets excluding goodwill in years
Brand names
2-20
Customer relationships
2-25
Technology
3-20
Other
1-10
Software
1-10
Product development
3-10
The weighted average expected remaining life of brand names, customer relationships, technology
and other intangible assets is 8.5 years as of December\u00a031, 2024 (2023: 9.3 years).
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-626": { "value": "
11Goodwill
Accounting policies
The measurement of goodwill at initial recognition is described in the Acquisitions and divestments
note. Goodwill is subsequently measured at cost less accumulated impairment losses.
Goodwill is not amortized but is instead tested for impairment annually in the fourth quarter, or
more frequently if indicators of potential impairment exist. Internal and external sources of
information are considered to assess if there are indicators that an asset or groups of cash-
generating units (CGUs) may be impaired. Goodwill is allocated to groups of CGUs and tested for
impairment at the Business level (one level below segment), which represents the lowest level at
which goodwill is monitored internally for management purposes. An impairment loss is recognized
in the Consolidated statements of income whenever and to the extent that the carrying amount of
a group of CGUs exceeds the recoverable amount for the group of CGUs, 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\u2019s length transaction, less costs of
disposal.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-629": { "value": "
12Intangible assets excluding goodwill
Accounting policies
Acquired finite-lived intangible assets are amortized using the straight-line method over their
estimated useful life. The useful lives are evaluated annually. Intangible assets are initially capitalized
at cost, with the exception of intangible assets acquired as part of a business combination, which
are capitalized at their acquisition date fair value.
The company expenses all research costs as incurred. Expenditure on development activities,
whereby research findings are applied to a plan or design for the production of new or substantially
improved products and processes, is capitalized as an intangible asset if the product or process is
technically and commercially feasible, the company has sufficient resources and the intention to
complete development and can measure the attributable expenditure reliably.
The capitalized development expenditure comprises of all directly attributable costs (including the
cost of materials and direct labor). Other development expenditures and expenditures on research
activities are recognized in the Consolidated statements of income. Capitalized development
expenditure is stated at cost less accumulated amortization and impairment losses. Amortization of
capitalized development expenditure is charged to the Consolidated statements of income on a
straight-line basis over the estimated useful lives of the intangible assets.
Philips Group
Expected useful lives of intangible assets excluding goodwill in years
Brand names
2-20
Customer relationships
2-25
Technology
3-20
Other
1-10
Software
1-10
Product development
3-10
The weighted average expected remaining life of brand names, customer relationships, technology
and other intangible assets is 8.5 years as of December\u00a031, 2024 (2023: 9.3 years).
Impairment of intangible assets not yet ready for use
Intangible assets not yet ready for use are not amortized but are tested for impairment annually
and whenever impairment indicators require. In the case of intangible assets not yet ready for use,
either internal or external sources of information are considered to assess if there are indicators that
an asset or a CGU may be impaired.
Impairment of non-financial assets other than goodwill, intangible assets not yet ready
for use, inventories and deferred tax assets
Non-financial assets other than goodwill, intangible assets not yet ready for use, inventories and
deferred tax assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be
held and used is assessed by a comparison of the carrying amount of an asset with the greater of
its value in use and fair value less cost of disposal. Value in use is measured as the present value of
future cash flows expected to be generated by the asset. Fair value less cost of disposal is measured
as the amount obtained from a sale of an asset in an arm\u2019s length transaction, less costs of
disposal. If the carrying amount of an asset is deemed not recoverable, an impairment charge is
recognized in the amount by which the carrying amount of the asset exceeds the recoverable
amount. The review for impairment is carried out at the level where cash flows occur that are
independent of other cash flows.
Impairment losses recognized in prior periods for intangible assets other than goodwill are assessed
at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if and to the extent that there has been a change in the estimates used
to determine the recoverable amount. The loss is reversed only to the extent that the asset\u2019s
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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-630": { "value": "
12Intangible assets excluding goodwill
Accounting policies
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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-628": { "value": "
12Intangible assets excluding goodwill
Accounting policies
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.", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-636": { "value": "
13Other financial assets
Accounting policies
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset\u2019s
contractual cash flow characteristics and the company\u2019s business model for managing them.
The company initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
\u2022 financial assets at amortized cost (debt instruments)
\u2022 financial assets at fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments)
\u2022 financial assets desi gnated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
\u2022 financial assets at fair value through profit or loss (debt instruments and equity instruments)
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
16Receivables
Accounting policies
Receivables are initially measured at fair value and are subsequently measured at amortized cost if
held within a business model with the objective to collect the contractual cash flows or at fair value
through OCI if held within a business model with the objective of both holding to collect
contractual cash flows and selling. Receivables are measured less any impairment losses.
Receivables are derecognized when the company has transferred substantially all risks and rewards,
which includes transactions in which the company enters into factoring transactions, or if the
company does not retain control over the receivables.
23Cash flow statement supplementary information
Accounting policies
Cash and cash equivalents
Cash and cash equivalents include all cash balances, certain money market funds and short-term
highly liquid investments with an original maturity of three months or less that are readily
convertible into known amounts of cash. Bank overdrafts are included in borrowings in current
liabilities.
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
Offsetting and master netting agreements
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when,
and only when, the company currently has a legally enforceable right to set-off the amounts and
the group intends either to settle them on a net basis or to realize the asset and settle the liability
simultaneously.
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-631": { "value": "
13Other financial assets
Accounting policies
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset\u2019s
contractual cash flow characteristics and the company\u2019s business model for managing them.
The company initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
\u2022 financial assets at amortized cost (debt instruments)
\u2022 financial assets at fair value through other comprehensive income (OCI) with recycling of
cumulative gains and losses (debt instruments)
\u2022 financial assets desi gnated at fair value through OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)
\u2022 financial assets at fair value through profit or loss (debt instruments and equity instruments)", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-635": { "value": "
13Other financial assets
Accounting policies
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
Accounting estimates and judgments
Financial assets classified at amortized cost and at fair value through OCI are subject to impairment
assessment. The calculation of expected credit losses requires the company to apply significant
judgment and make estimates and assumptions that involve significant uncertainty at the time they
are made. Changes to these estimates and assumptions can result in significant changes to the
timing and amount of expected credit losses to be recognized.
16Receivables
Accounting estimates
Receivables are subject to impairment assessment, which involves estimating expected credit losses.
Refer to Other financial assets for accounting policies on impairment of financial assets.
The changes in the allowance for doubtful accounts receivable are as follows::
Philips Group
Allowance for accounts receivable in millions of EUR
2023
2024
Balance as of January 1
226
216
Additions charged to expense
27
112
Deductions from allowance\u00b9
(26)
(88)
Transfer to assets held for sale
(1)
-
Other movements
(10)
5
Balance as of December 31
216
245
1Write-offs for which an allowance was previously provided.
The allowance for doubtful accounts receivable has been primarily established for receivables that
are past due. Additions and deductions in the allowance include the impact of changes in estimates
for certain Connected Care receivables. The allowance presented also includes the allowance for
Non-current customer finance receivables of EUR 8 million ( 2023: EUR 8 million). Other movements
in the current period are mainly related to foreign currency valuations.
Included in the above balances as of December\u00a031, 2024, are allowances for individually impaired
receivables of EUR 239 million (2023: EUR 210 million).
18Debt
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion . In 2024, Philips issued EUR 700 million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and other floating rate debt . As of December\u00a031, 2024 , Philips
has EUR 3.7 billion (2023: EUR 3.3 billion) fixed rate notes outstanding under the EMTN program.
The provisions applicable to all USD-denominated corporate bonds issued by the company in March
2008 and March 2012 (due 2038 and 2042) contain a \u2018Change of Control Triggering Event\u2019. 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 since 2018 contain a similar
provision (\u2018Change of Control Put Event\u2019). Upon the occurrence of such an event, the company
might be required to redeem or purchase any of such bonds at their principal amount together
with interest accrued. Philips\u2019 outstanding long-term debt does not contain financial covenants.
As of December 31, 2024, debt includes forward contracts of EUR 142 million (nominal value)
relating to the repurchase of shares to cover long-term incentive and employee stock purchase
plans, with maturity dates in the fourth quarter of 2025 (EUR 77 million ) and the fourth quarter of
2026 (EUR 65 million).
In 2023, Philips issued EUR 500 million of fixed rate notes under the company\u2019s EMTN program
that mature in 2031 and used the proceeds for general corporate purposes, including the
repayment of EUR 500 million that was outstanding under the credit facility entered into in the
fourth quarter of 2022 . In 2023 , Philips entered into a total amount of EUR 138 million forward
contracts relating to the company\u2019s long-term incentive plans. These forwards partly matured in the
fourth quarter of 2024 (EUR 61 million ) with the remainder maturing in 2025 (EUR 77 million ). In
addition, a total of EUR 125 million forward contracts relating to the Long-Term Incentive and
employee stock purchase plans and EUR 481 million of forwards related to the share buyback
program announced in 2021 matured throughout 2023.
Long-term debt
The following tables present information about the long-term debt outstanding, its maturity and
average interest rates in 2024 and 2023.
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2024
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,408
131
1,276
122
1,154
12.3
6.3%
EUR bonds
4,917
4,917
2,639
2,278
4.7
2.3%
Forward contracts
148
82
66
66
1.3
1.2%
Lease liabilities
1,073
219
854
506
347
3.8
3.7%
Bank borrowings
1
1
1
1
1.5
1.0%
Other long-term debt
-
-
-
-
-
3.2
1.2%
Long-term debt
7,546
434
7,113
3,333
3,779
5.9
3.2%
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2023
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,325
1,325
240
1,085
13.3
6.3%
EUR bonds
4,569
4,569
2,335
2,234
5.1
2.0%
Forward contracts
396
321
76
76
0.8
1.4%
Lease liabilities
1,074
211
864
505
358
3.9
3.1%
Bank borrowings
203
1
201
201
1.2
4.2%
Other long-term debt
-
-
-
-
-
7.4
1.2%
Long-term debt
7,568
532
7,035
3,357
3,678
6.0
2.9%
Bonds
The following table presents the amount outstanding and effective rate of bonds.
Philips Group
Unsecured Bonds in millions of EUR unless otherwise stated
Effective rate
2023
2024
Unsecured EUR Bonds
Due 30/03/2025; 1 3/8%
1.509%
346
Due 22/05/2026; 1/2%
0.608%
750
750
Due 05/05/2027; 1 7/8%
2.049%
750
750
Due 02/05/2028; 1 3/8%
1.523%
500
500
Due 05/11/2029; 2 1/8%
2.441%
650
650
Due 30/03/2030; 2%
2.128%
500
500
Due 08/09/2031; 4 2/8%
4.33%
500
500
Due 31/05/2032; 3 3/4%
4.043%
700
Due 05/05/2033; 2 5/8%
2.71%
600
600
Unsecured USD Bonds
Due 15/05/2025; 7 3/4%
7.429%
49
52
Due 15/05/2025; 7 1/8%
6.794%
75
79
Due 01/06/2026; 7 1/5%
6.885%
114
121
Due 03/11/2038; 6 7/8%
7.21%
657
697
Due 15/03/2042; 5%
5.273%
452
480
Adjustments\u00b9
(47)
(55)
Unsecured Bonds
5,894
6,324
1Adjustments related to both EUR and USD bonds and concern bond discounts, premium and
transaction costs.
Leases
The following table presents a reconciliation between the total of future minimum lease payments
and their present value.
Philips Group
Lease liabilities in millions of EUR
2023
2024
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
239
28
211
255
35
219
Between one and five years
572
67
505
592
85
506
More than five years
388
30
358
385
38
347
Lease liabilities
1,200
125
1,074
1,232
159
1,073
Short-term debt
Philips Group
Short-term debt in millions of EUR
2023
2024
Short-term bank borrowings
122
92
Current portion of long-term debt
532
434
Short-term debt
654
526
During 2024, the weighted average interest rate on the bank borrowings was 9.3% (2023: 8.6%).
This increase was mainly driven by higher interest rate environments across various countries
globally.
24Contingencies
Legal proceedings
The company and certain of its group companies and former group companies are involved as a
party in legal proceedings, regulatory and other governmental proceedings, including discussions
on potential remedial actions, relating to such matters as competition issues, commercial
transactions, product liability, participations, and environmental pollution.
While it is not feasible to predict or determine the outcome of all pending or threatened legal
proceedings, regulatory and governmental proceedings, the company is of the opinion that the
cases described below may have, or have had in the recent past, a significant impact on the
company\u2019s consolidated financial position, results of operations and cash flows.
Public investigations
In February 2023, the company received a statement of objections from the French Competition
Authority (FCA) initiating a formal investigation to verify whether the company and certain other
manufacturers of small domestic appliances breached antitrust rules in France in the period
2009-2014 through the alleged exchange of commercially sensitive information. The FCA issued its
decision in December 2024, in which it closed the case by concluding that the company did not
violate antitrust rules in France.
Respironics recall
On June 14, 2021, Philips subsidiary Philips RS North America LLC (Philips Respironics) issued a
voluntary recall notification in the United States and field safety notice outside the United States for
specific Philips Respironics CPAP, Bi-Level PAP, and mechanical ventilator devices (the \u201cRecalled
Devices\u201d).
Consent Decree
On August 26, 2021, the US Food and Drug Administration (FDA) commenced an inspection of the
Philips Respironics manufacturing facility in Murrysville, Pennsylvania, and provided Philips
Respironics with its preliminary inspectional observations on November 9, 2021. In the first half of
2024, Philips Respironics reached an agreement with the US Department of Justice (DoJ), acting on
behalf of the FDA, regarding the terms of a consent decree to resolve the identified issues in
relation to the inspection. The consent decree was entered by the court in April 2024.
DOJ investigation; state Attorneys General investigation
Philips Respironics and certain of Philips' subsidiaries in the US continue to cooperate with a
criminal and civil investigation triggered by a subpoena received from the DOJ in 2022 to provide
information related to events leading to the Respironics recall. In addition, the same entities are
cooperating with an investigation initiated in 2024 by certain US state Attorneys General into trade
practices related to the products subject of the Respironics recall. While the outflow of economic
resources in connection with these investigations is assessed as probable, given the current stage of
the investigations, the company is not able to reliably estimate the financial impact.
Product liability claims
Following the voluntary recall notification, a number of civil complaints have been filed in several
jurisdictions against Philips Respironics and certain of its affiliates (including the company) generally
alleging economic loss, personal injury and/or the potential for personal injury allegedly caused by
the recalled devices.
In the US, consumer and commercial class action lawsuits have been filed alleging economic loss
and medical monitoring claims. Individual personal injury lawsuits have also been filed. On October
8, 2021, a Multi-District Litigation (MDL) in the US District Court for the Western District of
Pennsylvania was formed, and most of these class action and personal injury lawsuits have been
consolidated in the MDL for pre-trial proceedings.
On September 7, 2023, Philips Respironics reached agreement on a class action settlement in
relation to the economic loss class action complaint, for which the company recorded a EUR 575
million provision in the first quarter of 2023. Under the agreement, which became final in May
2024, the Philips defendants agreed to provide predefined cash awards to all eligible participants in
the US depending on the type of device, extended warranties on all remediated devices provided as
part of Respironics\u2019 recall program, and an additional cash award if they return the recalled device
to Philips Respironics. The settlement also provides for compensation for individuals who acquired
replacement devices in the market after the recall and prior to the announcement of the
settlement. The settlement also provides for compensation to private insurers and other third-party
payers. The claims period concluded on August 9, 2024, and since then, the Claims Administrator
has been processing claims, calculating relevant payment amounts, and making payments to
eligible class members.
On May 9, 2024, Philips Respironics reached agreement on a class action settlement in relation to
the medical monitoring class action complaint. Under the agreement, which became final in
January 2025, the Philips defendants agreed to pay USD 25 million into a Qualified Settlement
Fund for the benefit of eligible class members. The USD 25 million amount is a fixed cap on the
amount of the settlement and will be used to fund, among other things, research related to the
advancement of public knowledge regarding the detection, diagnosis, and treatment of those
injuries alleged to have been caused by use of the recalled devices.
Also on May 9, 2024, Philips Respironics reached agreement on a private settlement in relation to
US personal injury claims. Under the agreement, the Philips defendants have agreed (subject to a
termination right) to pay USD 1.075 billion to consist of USD 25 million in notice and administrative
costs and USD 1.050 billion into a Personal Injury Settlement Fund. The settlement is an opt-in
agreement, by which eligible claimants would release all of their personal injury claims in exchange
for participation in the Personal Injury Settlement Fund. To participate in the settlement, an eligible
claimant must have experienced a qualifying injury. The Philips parties had the right to terminate
the settlement if less than 95% of eligible claimants would register for the settlement by the
registration deadline on January 31, 2025. As at the registration deadline registrations exceeded
95%, the settlement has now become final with payment expected in the first half of 2025. For
any individuals who declined to participate in, or are ineligible for, the settlement, and who wish to
litigate their personal injury claims, they will need to identify themselves after the registration
deadline and then comply with court orders imposing certain discovery obligations on them,
including with respect to early disclosure of their evidence on causation.
Philips Respironics and certain of its affiliates (including the company) continue to be defendants in
consumer class action lawsuits in Australia, Canada and Israel and collective or group actions in
Chile, France, Germany, Italy and the Netherlands alleging economic loss and/or personal injury.
While the company believes it is probable that ongoing lawsuits will in the aggregate lead to an
outflow of economic resources for Philips Respironics or other Philips entities, given the significant
uncertainty regarding the nature of the relevant events and potential obligations, the company is
not currently able to reliably estimate the amount of the obligation associated with these various
lawsuits. The final outcome of the lawsuits and the remaining cost to resolve them cannot currently
be determined due to a number of variables, including the early stages of some of these
proceedings and uncertainty regarding the number of remaining claimants, their allegations, and
their alleged injuries. The courts have not yet been asked to decide the question of whether any of
the claimed injuries could have been caused by use of the recalled devices.
In 2024, the company and its insurance carriers reached an agreement on the basis of which the
insurance carriers agreed to contribute EUR 540 million to cover product liability-related cash flows
related to the Respironics recall. This amount was paid in full to the company in 2024.
Securities claims
On August 16, 2021, a securities class action complaint was filed against the company, its former
CEO and its former CFO in the US District Court for the Eastern District of New York alleging
violations of the Securities Exchange Act of 1934 causing damage to investors. On September 23,
2024, following amendments to the complaint, the court issued a decision dismissing all claims
against the company\u2019s former CFO and the former head of Philips Respironics but denying in part
the motion to dismiss with respect to the company and its former CEO. The Court narrowed the
class period and dismissed all claims based on statements made before 2018. The Court also
dismissed all claims relating to certain categories of alleged misstatements. On October 28, 2024,
the company and its former CEO moved for reconsideration of that portion of the decision denying
their motion, and that motion was pending as of December 31, 2024.
In the Netherlands, six different parties (including European Investors \u2013 VEB and Deminor Litigation
Funding) representing both retail and institutional investors have approached the company, holding
the company and its directors liable for alleged misstatements and failures to make timely
disclosures in relation to the Respironics recall. As of December 31, 2024, one party has filed a civil
complaint with the Amsterdam District Court.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. An adverse outcome of these cases could have a material impact on the company\u2019s
consolidated financial position, results of operations and cash flows.
SEC investigation
Following earlier requests for information from the US Securities and Exchange Commission (SEC),
in March 2024, the company received a subpoena from the SEC relating to the Respironics Recall
and compliance with relevant securities laws. The investigation is not an indication that the SEC or
its staff have determined that any violations of law have occurred. The company is fully cooperating
with the investigation.It is the company's assessment that it is possible but not probable that this
investigation could lead to certain outflow of resources. The company is not able to reliably
estimate the financial impact, if any.
Other claims
On October 12, 2021, SoClean, a company offering ozone-based cleaning products for sleep
devices, filed a lawsuit in the US against the company and certain of its affiliates alleging that the
defendants\u2019 statements about the potential adverse effect ozone cleaning may have on the recalled
devices has significantly damaged its business. Philips believes that the claim is without merit and
will vigorously defend itself. In November 2023, the court ruled on one of the motions to dismiss
filed by defendants and partially dismissed some of SoClean\u2019s claims. On January 4, 2024, Philips
and its affiliates filed their answer and counterclaims against SoClean and one of its affiliates. In
October 2024, the court partially dismissed some of the counterclaims. Philips and its affiliates are
also pursuing claims against SoClean and one of its affiliates for contribution for personal injury
settlement costs and/or personal injury liability incurred by the company or its affiliates. SoClean
and its affiliate have sought to dismiss those claims, but the court has not yet reached a decision.
In addition, some of Philips Respironics\u2019 business partners, such as distributors and durable medical
equipment providers, have filed or threatened to file claims alleging economic losses suffered as a
consequence of the voluntary recall. Philips Respironics is engaging with certain of its business
partners on the level of compensation they allege to be entitled to under Philips Respironics\u2019
replacement program of the recalled devices. As of December 31, 2024, most of these claims have
been resolved.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. In the event of an adverse outcome, these matters could have a material impact on
the company\u2019s consolidated financial position, results of operations and cash flows.
To date, other than for the economic loss, medical monitoring and personal injury settlements
discussed above, no provisions have been recorded for the litigation and investigations in the US
and Canada associated with the Respironics field action.
Other
In the second half of 2023, Electro Medical Systems S.A., a manufacturer of, among others,
medical devices for dental prophylaxis, filed a lawsuit against the company alleging that the
company materially breached its duties under a cooperation agreement entered into between the
parties in 2016, claiming damages in excess of EUR 300 million, alleging loss of profit and lost
increase in brand value. Philips disagrees with the allegations and has submitted its statement of
defense in June 2024. The first Court hearing is expected to take place in the first half of 2025.
Miscellaneous
For details on other contractual obligations, please refer to liquidity risk in Details of treasury and
other financial risks.
28Fair value of financial assets and liabilities
Philips Group
Fair value of financial assets and liabilities in millions of EUR\u00a0
2023
2024
Carrying amount
Estimated fair
value\u00b9
Carrying amount
Estimated fair
value\u00b9
Level 1
Level 2
Level 3
December 31
Financial assets
Carried at fair value:
Debt instruments
226
226
231
231
231
Equity instruments
2
2
3
3
2
Other financial assets
56
56
54
54
53
-
Financial assets carried at FVTP&L
284
284
288
288
53
234
Debt instruments
27
27
21
21
20
Equity instruments
231
231
222
222
4
218
Current financial assets
3
3
2
2
2
Receivables - current
32
32
Receivables - non-current
Financial assets carried at FVTOCI
293
293
244
244
4
20
220
Derivative financial instruments
48
48
77
77
72
6
Financial assets carried at fair value
624
624
609
609
4
146
460
Carried at (amortized) cost:
Cash and cash equivalents
1,869
2,401
Loans and receivables:
Current loans receivables
-
-
Other non-current loans and receivables
77
102
Receivables - current
3,701
3,672
Receivables - non-current
193
208
Financial assets carried at (amortized) cost
5,840
6,382
Total financial assets
6,465
6,992
Financial liabilities
Carried at fair value:
Contingent consideration
(115)
(115)
(113)
(113)
(113)
Financial liabilities carried at FVTP&L
(115)
(115)
(113)
(113)
(113)
Derivative financial instruments
(43)
(43)
(63)
(63)
(63)
Financial liabilities carried at fair value
(158)
(158)
(176)
(176)
(63)
(113)
Carried at (amortized) cost:
Accounts payable
(1,917)
(1,830)
Interest accrual
(76)
(83)
Debt (Corporate bonds and leases)
(6,969)
(6,798)
(7,397)
(7,363)
(6,290)
(1,073)
Debt (excluding corporate bonds and leases)
(721)
(241)
Financial liabilities carried at (amortized) cost
(9,682)
(9,551)
Total financial liabilities
(9,840)
(9,728)
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments
(including maturity and interest conditions) and therefore fair value information is not included in the table above.
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to occur, the company continues to carry the derivative on the Consolidated
balance sheets at its fair value, and gains and losses that were accumulated in OCI are recognized
immediately in the same line item as they relate to in the Consolidated statements of income.
Foreign currency differences arising upon retranslation of financial instruments designated as a
hedge of a net investment in a foreign operation are recognized directly in the currency translation
differences reserve through OCI, to the extent that the hedge is effective. To the extent that the
hedge is ineffective, such differences are recognized in the Consolidated statements of income.
Accounting estimates and judgments
Financial assets are subject to impairment assessment, which involves estimating expected credit
losses. Refer to Other financial assets for accounting policies on impairment of financial assets.
Philips is exposed to several types of financial risks which are further analyzed below. Philips does
not purchase or hold derivative financial instruments for speculative purposes. Information
regarding financial instruments is included in Fair value of financial assets and liabilities.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities.
Liquidity risk for the group is monitored through the Treasury liquidity committee, which tracks the
development of the actual cash flow position for the group and uses input from a number of
sources in order to forecast the overall liquidity position on both short and longer term basis. Philips
invests surplus cash in short-term deposits with appropriate maturities and money market funds to
ensure sufficient liquidity is available to meet liabilities when due and in money market funds.
The rating of the company\u2019s debt by major rating agencies may improve or deteriorate. As a result,
Philips\u2019 future borrowing capacity may be influenced and its financing costs may fluctuate. Philips
has various sources to mitigate the liquidity risk for the group. As of December\u00a031, 2024 Philips had
EUR 2,401 million in cash and cash equivalents ( 2023 : EUR 1,869 million ), which includes short-
term deposits of EUR 1,946 million ( 2023 : EUR 1,399 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\u2019s operational or investment needs.
Philips faces cross-border foreign exchange controls and/or other legal restrictions in a few
countries that could limit its ability to make these balances available on short notice for general use
by the group.
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and have no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion. In 2024, Philips issued EUR 700\u00a0million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and floating rate debt. As of December\u00a031, 2024, Philips has
EUR 3.7 billion (2023: EUR 3.3 billion) fixed rates notes outstanding under the EMTN program. For
a description of Philips\u2019 credit facilities, refer to Debt.
In addition to cash and cash equivalents, as of December\u00a031, 2024, Philips also held EUR 4 million
(2023: EUR 14 million ) of listed (level 1) equity investments at fair value (classified as other non-
current financial assets).
The following table presents a summary of the Group\u2019s fixed contractual cash obligations and
commitments as of December\u00a031, 2024. These amounts are an estimate of future payments which
could change as a result of various factors such as a change in interest rates, foreign exchange, and
contractual provisions, as well as changes in business strategy and needs. Therefore, the actual
payments made in future periods may vary from those presented in the following table:
Philips Group
Contractual cash obligations1 2 in millions of EUR
Payments due by period
Total
Less than 1
year
1-3 years
3-5 years
After 5
years
Long-term debt
7,168
2,006
1,338
3,824
Short-term debt
525
525
Interest on debt
1,792
197
368
325
902
Derivative liabilities
72
64
8
Purchase obligations\u00b3
1,161
300
307
210
344
Trade and other payables
1,830
1,830
Contractual cash obligations
12,548
2,916
2,689
1,873
5,070
1Amounts in this table are undiscounted
2This 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.
3Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding
for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased,
fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not
include open purchase orders or other commitments which do not specify all significant terms.
Philips has contracts with investment funds where it committed itself to make, under certain
conditions, capital contributions to these funds of an aggregated remaining amount of EUR 130
million (2023: EUR 153 million). As of December\u00a031, 2024, capital contributions already made to
these investment funds are recorded as non-current financial assets.
Philips offers voluntary supply chain finance programs for certain US Dollar, Euro and Swedish
Krona third parties which provide participating suppliers the opportunity to factor their trade
receivables at the sole discretion of both the suppliers and the third parties. Philips continues to
recognize these liabilities as trade payables and settles them accordingly on the invoice maturity
date based on the terms and conditions of those arrangements. As of December 31, 2024,
approximately EUR 97 million (2023: EUR 114 million ) of the Philips account payable were
transferred under these arrangements.
Philips Group
Carrying amount of financial liabilities1 in millions of EUR
2024
Presented in accounts payables:
97
- of which suppliers have received payment from finance provider
85
Philips Group
Range of payment due dates
2024
Liabilities that are part of the arrangements
30 -135 days
Comparable trade payables that are not part of the arrangements
0 -135 days
1 There were no material business combinations or foreign exchange differences during the year.
With respect to the Respironics field action, please refer to Contingencies. The management
continues to monitor the risks associated with such potential claims and its impact on liquidity
position, if any.
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\u2019 financial
results. Philips is exposed to currency risk in the following areas:
\u2022 transaction exposures, related to anticipated sales and purchases and on-balance-sheet
receivables/payables resulting from such transactions
\u2022 translation exposure of foreign-currency intercompany and external debt and deposits
\u2022 translation exposure of net income in foreign entities
\u2022 translation exposure of foreign-currency-denominated equity invested in consolidated
companies
\u2022 translation exposure to equity interests in non-functional-currency investments in associates and
other non-current financial assets
It is Philips\u2019 policy to reduce the potential year-on-year volatility caused by foreign-currency
movements on its net earnings by hedging the anticipated net exposure of foreign currencies
resulting from foreign-currency sales and purchases. In general, net anticipated exposures for the
Group are hedged during a period of 15 months in layers of 20% up to a maximum hedge of
80%. Philips\u2019 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\u2019 most significant currency exposures
consolidated as of December\u00a031, 2024:
Philips Group
Estimated transaction exposure and related hedges in millions of EUR
Sales/Receivables
Purchases/Payable
Exposure
Hedges
Exposure
Hedges
Balance as of December 31, 2024
Exposure currency
USD
2,071
(1,669)
(1,163)
1,049
JPY
527
(300)
(7)
7
GBP
259
(161)
(15)
14
CNY
442
(312)
(209)
209
PLN
95
(62)
(1)
1
CAD
236
(134)
AUD
177
(104)
CHF
144
(85)
KRW
126
(83)
ILS
12
(8)
(204)
121
EUR
160
(158)
(121)
121
Others
169
(113)
(23)
23
Total 2024
4,420
(3,188)
(1,743)
1,543
Total 2023
4,287
(3,185)
(1,346)
1,173
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\u00a031, 2024, a gain of EUR 1 million was deferred in equity as a result of these hedges
(2023: EUR 6 million gain). The result deferred in equity will be released to earnings mostly during
2025 at the time when the related hedged transactions affect the income statement. During 2024,
nil (2023 nil) 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. During 2024, a gain of EUR 29 million (2023 EUR 19 million
gain) included in the cash flow hedges reserve in equity pertaining to changes in fair value of
foreign exchange forward and option contracts was released to income statement.
The total net fair value of hedges related to transaction exposure as of December\u00a031, 2024, was an
unrealized loss of EUR 2 million. The estimated impact of a 10% increase of value of the EUR is
estimated to be EUR 122 million. The following table contains an overview of the instantaneous
10% increase in the value of EUR against major currencies.
Philips Group
Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR
2023
2024
USD
64
63
JPY
15
13
GBP
16
13
CHF
5
7
PLN
1
1
RUB
-
1
The EUR 122 million increase includes a gain of EUR 34 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 88 million would be recognized in equity to
the extent that the cash flow hedges were effective.
Foreign exchange exposure also arises as a result of inter-company loans and deposits. Where the
company enters into such arrangements, the financing is generally provided in the functional
currency of the subsidiary entity. The currency of the company\u2019s external funding and liquid assets
is matched with the required financing of subsidiaries, either directly through external foreign
currency loans and deposits, or synthetically by using foreign exchange derivatives, including cross
currency interest rate swaps and foreign exchange forward contracts. In certain cases where group
companies may also have external foreign currency debt or liquid assets, these exposures are also
hedged through the use of foreign exchange derivatives. Changes in the fair value of hedges
related to this exposure are recognized within financial income and expenses in the statements of
income. When such loans would be considered part of the net investment in the subsidiary, net
investment hedging would be applied.
Translation exposure of foreign-currency equity invested in consolidated entities is generally not
hedged. If a hedge is entered into, it is accounted for as a net investment hedge. Net current-
period change, before tax, of the currency translation reserve of positive EUR 768 million mainly
relates to the development of the USD versus the EUR. As of December\u00a031, 2024, a weakening of
USD by 10% versus the EUR would result in a decrease in the currency translation reserve in equity
of approximately EUR 1,275 million, while a strengthening of USD by 10% versus the EUR would
result in an increase in the currency translation reserve in equity of approximately EUR 1,558
million. Refer to the country risk paragraph for countries with significant foreign currency
denominated equity invested.
As of December\u00a031, 2024, external bond funding for a nominal value of USD 1,466 million (liability
at book value: EUR 1,408 million) was designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2024, no ineffectiveness was
recognized in the income statement on net investment hedges arising from counterparty and own
credit risk.
As of December\u00a031, 2024, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 106 million in the value of the derivatives, including a
EUR 50 million decrease related to the USD.
As of December\u00a031, 2023, external bond funding for a nominal value of USD 1,474 million (liability
at book value: EUR 1,325 million) were designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2023 a total loss of EUR 2 million
was recognized in the income statement as ineffectiveness on net investment hedges, arising from
counterparty and own credit risk.
As of December\u00a031, 2023, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 52 million in the value of the derivatives, including a
EUR 11 million increase related to the USD.
Generally Philips does not hedge the foreign exchange exposure arising from equity interests in
non-functional-currency investments in associates and other non-current financial assets.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. As of December\u00a031, 2024, Philips had
outstanding debt of EUR 7,639 million (2023: EUR 7,689 million), which constitutes an inherent
interest rate risk with potential negative impact on financial results. As of December\u00a031, 2024,
Philips held EUR 2,401 million in cash and cash equivalents (2023: EUR 1,869 million), and had total
long-term debt of EUR 7,113 million (2023: EUR 7,035 million) and total short-term debt of EUR
526 million (2023: EUR 654 million). As of December\u00a031, 2024, Philips had a ratio of fixed-rate
long-term debt to total outstanding debt of approximately 93% compared to 89% one year
earlier. Philips debt has a long maturity profile with an average tenor of long-term debt of 5.9 years
with maturities up to 2042.
The following table provides the impact of a 1% increase/decrease of interest rates on the fair
value of the debt and the annualized net interest expenses.
Philips Group
Interest rate sensitivity in millions of EUR
2023
2024
Impact 1% interest rate increase on fair value of fixed-rate long-term debt\u00b9 \u00b2
(283)
(304)
Impact 1% interest rate decrease on fair value of fixed-rate long-term debt\u00b9 \u00b2
284
304
Impact 1% interest rate increase on annualized net interest expense\u00b3
15
23
1The sensitivity analysis conducted shows that if long-term interest rates were to increase/decrease
instantaneously by 1% from their level of December\u00a031, 2024, with all other variables (including foreign
exchange rates) held constant.
2Fixed-rate long-term debt is excluding forward contracts.
3The impact is based on the outstanding net floating-rate position as of December\u00a031, 2024.
Equity price risk
Equity price risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in equity prices.
Philips is a shareholder in some publicly listed companies and as a result is exposed to potential
financial loss through movements in their share prices. The aggregate equity price exposure in such
financial assets amounted to approximately EUR 4 million as of December\u00a031, 2024 (2023: EUR 14
million). Philips does not hold derivatives in the above-mentioned listed companies. Philips also has
shareholdings in several privately-owned companies amounting to EUR 220 million, mainly
consisting of minority stakes in companies in various industries. As a result, Philips is exposed to
potential value adjustments.
Commodity price risk
Commodity price risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in commodity prices.
Philips is a purchaser of certain base metals, precious metals and energy. Philips may hedge certain
commodity price risks using derivative instruments to minimize significant, unanticipated earnings
fluctuations caused by commodity price volatility. As of December\u00a031, 2024 Philips had financial
commodity derivatives outstanding to the value of EUR 6 million (2023: nil).
Credit risk
Credit risk represents the loss that would be recognized at the reporting date, if counterparties
failed completely to perform their payment obligations as contracted. Credit risk is present within
Philips trade receivables and contract assets. To have better insights into the credit exposures,
Philips performs ongoing evaluations of the financial and non-financial condition of its customers
and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is
determined not to be sufficient to grant the credit limit required, there are a number of mitigation
tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-
payments and pledges on assets.
Philips invests available cash and cash equivalents with various financial institutions and is exposed
to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-
performance by financial institutions with respect to financial derivative instruments. Philips actively
manages concentration risk and on a daily basis measures the potential loss under certain stress
scenarios, should a financial institution default. These worst-case scenario losses are monitored and
limited by the company.
The company does not enter into any financial derivative instruments to protect against default by
financial institutions. However, where possible the company requires all financial institutions with
which it deals in derivative transactions to complete legally enforceable netting agreements under
an International Swap Dealers Association master agreement or otherwise prior to trading, and
whenever possible, to have a strong credit rating. Philips also regularly monitors the development
of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial
transactions are concluded with financial institutions with strong credit ratings or with governments
or government-backed institutions.
The following table shows the number of financial institutions with credit rating A- and above with
which Philips has cash at hand and short-term deposits above EUR 10 million as of December\u00a031,
2024.
Philips Group
Credit risk with number of counterparties for deposits above EUR 10 million
10-100 million
100-500 million
500 million and
above
AAA rated bank counterparties
2
AA- rated bank counterparties
1
A+ rated bank counterparties
1
4
A rated bank counterparties
2
2
A- rated bank counterparties
2
2
Total
6
10
For an overview of the overall maximum credit exposure related to debt instruments, derivatives
and loans and receivables, refer to Fair value of financial assets and liabilities.
Country risk
Country risk is the risk that political, legal, or economic developments in a single country could
adversely impact performance. The country risk per country is defined as the sum of the equity of
all subsidiaries and associated companies in country cross-border transactions, such as
intercompany loans, accounts receivable from third parties and intercompany accounts receivable.
The country risk is monitored on a regular basis.
As of December\u00a031, 2024, the company had country risk exposure of EUR 13.6 billion in the United
States, EUR 2.3 billion in the Netherlands, EUR 872 million in China (including Hong Kong). Other
countries higher than EUR 500 million are United Kingdom EUR 787 million, Japan EUR 635 million
and Germany EUR 625 million. Other countries with significant exposure are: Israel EUR 301
million, Singapore EUR 221 million, and India EUR 226 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 insured for a broad range of losses by global insurance policies in the areas of property
damage/business interruption, general and product liability, transport, directors\u2019 and officers\u2019
liability, employment practice liability, crime and cybersecurity. The counterparty risk related to the
insurance companies participating in the above-mentioned global insurance policies is actively
managed. As a rule, Philips only selects insurance companies with a financial strength of at least A-.
Throughout the year the counterparty risk is monitored on a regular basis.
To lower exposures and to avoid potential losses, Philips has a global Risk Engineering program in
place. The main focus of this program is on property damage and business interruption risks
including company interdependencies. Regular on-site assessments take place at Philips locations
and business-critical suppliers by risk engineers of the insurer in order to provide an accurate
assessment of the potential loss and its impact. The results of these assessments are shared across
the company\u2019s 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 million to EUR 10 million per
occurrence, and this variance is designed to differentiate between the existing risk categories within
Philips. Above a first layer of working deductibles, Philips operates its own re-insurance captive,
which during 2024 retained EUR 25 million per claim and EUR 50 million in the annual aggregate
for general, product, professional liability, and marine cargo claims and EUR 15 million aggregate
for cyber.
New contracts were signed effective December\u00a031, 2024, for the coming year, whereby the re-
insurance captive retention remained the same.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-634": { "value": "
13Other financial assets
Accounting policies
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
Financial assets classified at amortized cost and at fair value through OCI are subject to impairment
assessment. The calculation of expected credit losses requires the company to apply significant
judgment and make estimates and assumptions that involve significant uncertainty at the time they
are made. Changes to these estimates and assumptions can result in significant changes to the
timing and amount of expected credit losses to be recognized.
16Receivables
Accounting policies
Receivables are initially measured at fair value and are subsequently measured at amortized cost if
held within a business model with the objective to collect the contractual cash flows or at fair value
through OCI if held within a business model with the objective of both holding to collect
contractual cash flows and selling. Receivables are measured less any impairment losses.
Receivables are derecognized when the company has transferred substantially all risks and rewards,
which includes transactions in which the company enters into factoring transactions, or if the
company does not retain control over the receivables.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-633": { "value": "
13Other financial assets
Accounting policies
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
16Receivables
The aging analysis of trade accounts receivable, net, representing current and overdue but not fully
impaired receivables, is as follows:
Philips Group
Aging analysis in millions of EUR
2023
2024
Current
3,132
3,154
Overdue 1-30 days
117
141
Overdue 31-180 days
234
194
Overdue more than 180 days
63
24
Trade accounts receivable, net
3,546
3,513
The changes in the allowance for doubtful accounts receivable are as follows::
Philips Group
Allowance for accounts receivable in millions of EUR
2023
2024
Balance as of January 1
226
216
Additions charged to expense
27
112
Deductions from allowance\u00b9
(26)
(88)
Transfer to assets held for sale
(1)
-
Other movements
(10)
5
Balance as of December 31
216
245
1Write-offs for which an allowance was previously provided.
The allowance for doubtful accounts receivable has been primarily established for receivables that
are past due. Additions and deductions in the allowance include the impact of changes in estimates
for certain Connected Care receivables. The allowance presented also includes the allowance for
Non-current customer finance receivables of EUR 8 million ( 2023: EUR 8 million). Other movements
in the current period are mainly related to foreign currency valuations.
Included in the above balances as of December\u00a031, 2024, are allowances for individually impaired
receivables of EUR 239 million (2023: EUR 210 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-632": { "value": "
13Other financial assets
Accounting policies
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
Accounting estimates and judgments
Financial assets classified at amortized cost and at fair value through OCI are subject to impairment
assessment. The calculation of expected credit losses requires the company to apply significant
judgment and make estimates and assumptions that involve significant uncertainty at the time they
are made. Changes to these estimates and assumptions can result in significant changes to the
timing and amount of expected credit losses to be recognized.
16Receivables
Accounting estimates
Receivables are subject to impairment assessment, which involves estimating expected credit losses.
Refer to Other financial assets for accounting policies on impairment of financial assets.
The changes in the allowance for doubtful accounts receivable are as follows::
Philips Group
Allowance for accounts receivable in millions of EUR
2023
2024
Balance as of January 1
226
216
Additions charged to expense
27
112
Deductions from allowance\u00b9
(26)
(88)
Transfer to assets held for sale
(1)
-
Other movements
(10)
5
Balance as of December 31
216
245
1Write-offs for which an allowance was previously provided.
The allowance for doubtful accounts receivable has been primarily established for receivables that
are past due. Additions and deductions in the allowance include the impact of changes in estimates
for certain Connected Care receivables. The allowance presented also includes the allowance for
Non-current customer finance receivables of EUR 8 million ( 2023: EUR 8 million). Other movements
in the current period are mainly related to foreign currency valuations.
Included in the above balances as of December\u00a031, 2024, are allowances for individually impaired
receivables of EUR 239 million (2023: EUR 210 million).
28Fair value of financial assets and liabilities
Philips Group
Fair value of financial assets and liabilities in millions of EUR\u00a0
2023
2024
Carrying amount
Estimated fair
value\u00b9
Carrying amount
Estimated fair
value\u00b9
Level 1
Level 2
Level 3
December 31
Financial assets
Carried at fair value:
Debt instruments
226
226
231
231
231
Equity instruments
2
2
3
3
2
Other financial assets
56
56
54
54
53
-
Financial assets carried at FVTP&L
284
284
288
288
53
234
Debt instruments
27
27
21
21
20
Equity instruments
231
231
222
222
4
218
Current financial assets
3
3
2
2
2
Receivables - current
32
32
Receivables - non-current
Financial assets carried at FVTOCI
293
293
244
244
4
20
220
Derivative financial instruments
48
48
77
77
72
6
Financial assets carried at fair value
624
624
609
609
4
146
460
Carried at (amortized) cost:
Cash and cash equivalents
1,869
2,401
Loans and receivables:
Current loans receivables
-
-
Other non-current loans and receivables
77
102
Receivables - current
3,701
3,672
Receivables - non-current
193
208
Financial assets carried at (amortized) cost
5,840
6,382
Total financial assets
6,465
6,992
Financial liabilities
Carried at fair value:
Contingent consideration
(115)
(115)
(113)
(113)
(113)
Financial liabilities carried at FVTP&L
(115)
(115)
(113)
(113)
(113)
Derivative financial instruments
(43)
(43)
(63)
(63)
(63)
Financial liabilities carried at fair value
(158)
(158)
(176)
(176)
(63)
(113)
Carried at (amortized) cost:
Accounts payable
(1,917)
(1,830)
Interest accrual
(76)
(83)
Debt (Corporate bonds and leases)
(6,969)
(6,798)
(7,397)
(7,363)
(6,290)
(1,073)
Debt (excluding corporate bonds and leases)
(721)
(241)
Financial liabilities carried at (amortized) cost
(9,682)
(9,551)
Total financial liabilities
(9,840)
(9,728)
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments
(including maturity and interest conditions) and therefore fair value information is not included in the table above.
29Details of treasury and other financial risks
Credit risk
Credit risk represents the loss that would be recognized at the reporting date, if counterparties
failed completely to perform their payment obligations as contracted. Credit risk is present within
Philips trade receivables and contract assets. To have better insights into the credit exposures,
Philips performs ongoing evaluations of the financial and non-financial condition of its customers
and adjusts credit limits when appropriate. In instances where the creditworthiness of a customer is
determined not to be sufficient to grant the credit limit required, there are a number of mitigation
tools that can be utilized to close the gap, including reducing payment terms, cash on delivery, pre-
payments and pledges on assets.
Philips invests available cash and cash equivalents with various financial institutions and is exposed
to credit risk with these counterparties. Philips is also exposed to credit risks in the event of non-
performance by financial institutions with respect to financial derivative instruments. Philips actively
manages concentration risk and on a daily basis measures the potential loss under certain stress
scenarios, should a financial institution default. These worst-case scenario losses are monitored and
limited by the company.
The company does not enter into any financial derivative instruments to protect against default by
financial institutions. However, where possible the company requires all financial institutions with
which it deals in derivative transactions to complete legally enforceable netting agreements under
an International Swap Dealers Association master agreement or otherwise prior to trading, and
whenever possible, to have a strong credit rating. Philips also regularly monitors the development
of the credit risk of its financial counterparties. Wherever possible, cash is invested and financial
transactions are concluded with financial institutions with strong credit ratings or with governments
or government-backed institutions.
The following table shows the number of financial institutions with credit rating A- and above with
which Philips has cash at hand and short-term deposits above EUR 10 million as of December\u00a031,
2024.
Philips Group
Credit risk with number of counterparties for deposits above EUR 10 million
10-100 million
100-500 million
500 million and
above
AAA rated bank counterparties
2
AA- rated bank counterparties
1
A+ rated bank counterparties
1
4
A rated bank counterparties
2
2
A- rated bank counterparties
2
2
Total
6
10
For an overview of the overall maximum credit exposure related to debt instruments, derivatives
and loans and receivables, refer to Fair value of financial assets and liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-638": { "value": "
13Other financial assets
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-637": { "value": "
13Other financial assets
Impairment of financial assets
The company recognizes a loss allowance for expected credit losses for trade receivables, contract
assets, lease receivables, debt investments carried at amortized cost and fair value through other
comprehensive income (FVTOCI).
At each balance sheet date, the company assesses whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognizes a loss allowance for
expected credit losses for financial assets measured at either amortized costs or at fair value
through other comprehensive income. If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initial recognition, the company measures the loss
allowance for the financial instrument at an amount equal to 12 months of expected credit losses.
If, at the reporting date, the credit risk on a financial instrument has increased significantly since
initial recognition, the company measures the loss allowance for the financial instrument at an
amount equal to the lifetime-expected credit losses. For all trade receivables, contract assets and
lease receivables the company measures the loss allowance at an amount equal to lifetime-
expected credit losses.
Accounting estimates and judgments
Financial assets classified at amortized cost and at fair value through OCI are subject to impairment
assessment. The calculation of expected credit losses requires the company to apply significant
judgment and make estimates and assumptions that involve significant uncertainty at the time they
are made. Changes to these estimates and assumptions can result in significant changes to the
timing and amount of expected credit losses to be recognized.
16Receivables
Accounting policies
Receivables are initially measured at fair value and are subsequently measured at amortized cost if
held within a business model with the objective to collect the contractual cash flows or at fair value
through OCI if held within a business model with the objective of both holding to collect
contractual cash flows and selling. Receivables are measured less any impairment losses.
Receivables are derecognized when the company has transferred substantially all risks and rewards,
which includes transactions in which the company enters into factoring transactions, or if the
company does not retain control over the receivables.
Accounting estimates
Receivables are subject to impairment assessment, which involves estimating expected credit losses.
Refer to Other financial assets for accounting policies on impairment of financial assets.
Non-current receivables
Non-current receivables are associated mainly with customer financing in the Diagnosis &
Treatment Businesses amounting (net of allowance) to EUR 81 million (2023 : EUR 102 million) ,
i nsurance receivables in the US amounting to EUR 33 million (2023: EUR 33 million ) and income tax
receivables amounting to EUR 36 million ( 2023: EUR 8 million).
Philips has leasing activities where it acts as lessor. In such arrangements, Philips provides the
customer with a right to use of medical equipment in exchange for a series of payments. Residual
values of assets under lease form an insignificant part of the carrying amount of those assets.
Residual values are influenced by asset market prices and are therefore subject to management
estimation. Residual values are at least reassessed on an annual basis, or more often when
necessary. Reassessments are based on a combination of realization of assets sold, expert
knowledge and judgment of local markets. In order to reduce residual value risk exposures there
may be residual value guarantees or purchase options embedded in the customer contract. Credit
risk for lease receivables is reviewed regularly and mitigated, for example, by retaining a security
interest in the leased asset.
Current receivables
Current receivables of EUR 3,672 million ( 2023 : EUR 3,733 million ) as of December\u00a031, 2024 ,
included trade accounts receivable (net of allowance) of EUR 3,513 million (2023: EUR 3,546
million ), accounts receivable other of EUR 134 million (2023 : EUR 170 million), and accounts
receivable from investments in associates of EUR 25 million ( 2023: EUR 18 million) .
The trade accounts receivable, net, per segment are as follows:
Philips Group
Trade accounts receivable, net in millions of EUR
2023
2024
Diagnosis & Treatment
1,688
1,687
Connected Care
1,105
1,064
Personal Health
576
575
Other
177
187
Trade accounts receivable, net
3,546
3,513
The aging analysis of trade accounts receivable, net, representing current and overdue but not fully
impaired receivables, is as follows:
Philips Group
Aging analysis in millions of EUR
2023
2024
Current
3,132
3,154
Overdue 1-30 days
117
141
Overdue 31-180 days
234
194
Overdue more than 180 days
63
24
Trade accounts receivable, net
3,546
3,513
The changes in the allowance for doubtful accounts receivable are as follows::
Philips Group
Allowance for accounts receivable in millions of EUR
2023
2024
Balance as of January 1
226
216
Additions charged to expense
27
112
Deductions from allowance\u00b9
(26)
(88)
Transfer to assets held for sale
(1)
-
Other movements
(10)
5
Balance as of December 31
216
245
1Write-offs for which an allowance was previously provided.
The allowance for doubtful accounts receivable has been primarily established for receivables that
are past due. Additions and deductions in the allowance include the impact of changes in estimates
for certain Connected Care receivables. The allowance presented also includes the allowance for
Non-current customer finance receivables of EUR 8 million ( 2023: EUR 8 million). Other movements
in the current period are mainly related to foreign currency valuations.
Included in the above balances as of December\u00a031, 2024, are allowances for individually impaired
receivables of EUR 239 million (2023: EUR 210 million).
25Related-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.
Philips Group
Related-party transactions in millions of EUR
2022
2023
2024
Sales of goods and services
111
106
89
Purchases of goods and services
46
42
50
Receivables from related parties
55
18
25
Payables to related parties
2
2
2
The above table includes sales transactions between Philips and PMC of EUR 88 million in 2024
(2023: EUR 87 million; 2022 : EUR 101 million), under which PMC has leased the equipment to the
ultimate customer. In addition, as part of its S&RC operations in the US, Philips Medical Capital LLC
funded durable medical equipment (DMEs) providers, through loans and leases. PMC-funded
transactions these DMEs entered into with Philips amount to EUR 75 million in 2024 ( 2023 : EUR
117 million ; 2022: EUR 117 million). The associated costs of these funding transactions are borne
by the ultimate customer and settled directly with Philips Medical Capital LLC. Philips Medical
Capital LLC, a Pennsylvania limited liability company, is owned 60% by De Lage Landen Financial
Services, Inc. (DLL) and 40% by Philips Electronics North America Corporation (Philips).", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-641": { "value": "
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
Other non-current assets
Other non-current assets as of December\u00a031, 2024 , were EUR 118 million ( 2023 : EUR 93 million ),
mainly includes prepaid expenses.
Other current assets
Other current assets as of \u00a0 December\u00a031, 2024, totaled EUR 586 million ( 2023 : EUR 500 million ),
primarily contract assets of EUR 349 million ( 2023 : EUR 297 million ) and prepaid expenses of EUR
238 million (2023: EUR 197 million) mainly related to Diagnosis & Treatment Businesses and
Connected Care Businesses.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-640": { "value": "
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
Other non-current assets
Other non-current assets as of December\u00a031, 2024 , were EUR 118 million ( 2023 : EUR 93 million ),
mainly includes prepaid expenses.
Other current assets
Other current assets as of \u00a0 December\u00a031, 2024, totaled EUR 586 million ( 2023 : EUR 500 million ),
primarily contract assets of EUR 349 million ( 2023 : EUR 297 million ) and prepaid expenses of EUR
238 million (2023: EUR 197 million) mainly related to Diagnosis & Treatment Businesses and
Connected Care Businesses.", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-639": { "value": "
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
Other non-current assets
Other non-current assets as of December\u00a031, 2024 , were EUR 118 million ( 2023 : EUR 93 million ),
mainly includes prepaid expenses.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-642": { "value": "
14Other assets
Accounting policies
The company recognizes contract assets for revenue earned from installation services because the
receipt of consideration is conditional on successful completion of the installation. Upon
completion of the installation and acceptance by the customer, the amount recognized as contract
assets is reclassified to trade receivables.
Other assets are measured at amortized cost minus any impairment losses.
Other current assets
Other current assets as of \u00a0 December\u00a031, 2024, totaled EUR 586 million ( 2023 : EUR 500 million ),
primarily contract assets of EUR 349 million ( 2023 : EUR 297 million ) and prepaid expenses of EUR
238 million (2023: EUR 197 million) mainly related to Diagnosis & Treatment Businesses and
Connected Care Businesses.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-644": { "value": "
15Inventories
Accounting policies
Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to
their present location and condition. The costs of conversion of inventories include direct labor and
fixed and variable production overheads, considering the stage of completion and the normal
capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of
inventories is determined using the first-in, first-out (FIFO) method. The write-down of inventories
to net realizable value is included in cost of sales.
Accounting estimates and judgments
Inventory is reduced for the estimated losses due to obsolescence. This reduction is determined for
groups of products based on sales in the recent past and/or expected future demand.
Inventories are summarized as follows:
Philips Group
Inventories in millions of EUR
2023
2024
Raw materials and supplies
1,309
1,344
Work in process
552
414
Finished goods
1,629
1,439
Inventories
3,491
3,198
In 2024, overall global inventories have operationally decreased by EUR 293 million with the
increase in finished goods and decrease in other categories.
The write-down of inventories to net realizable value was EUR 230 million in 2024 and EUR 339
million in 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-643": { "value": "
15Inventories
Accounting policies
Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprises
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to
their present location and condition. The costs of conversion of inventories include direct labor and
fixed and variable production overheads, considering the stage of completion and the normal
capacity of production facilities. Costs of idle facility and abnormal waste are expensed. The cost of
inventories is determined using the first-in, first-out (FIFO) method. The write-down of inventories
to net realizable value is included in cost of sales.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-645": { "value": "
16Receivables
Accounting policies
Receivables are derecognized when the company has transferred substantially all risks and rewards,
which includes transactions in which the company enters into factoring transactions, or if the
company does not retain control over the receivables.
18Debt
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-651": { "value": "
17Equity
Accounting policies
Common shares are classified as equity. Incremental costs directly attributable to the issuance of
shares are recognized as a deduction from equity. Where the company repurchases the company\u2019s
equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental transaction costs (net of income taxes), is deducted from shareholders\u2019 equity until
such treasury shares are cancelled or reissued.
Where such treasury shares are subsequently reissued, any consideration received, net of any
directly attributable incremental transaction costs and the related income tax effects, is included in
shareholders\u2019 equity.
Call options on own shares are treated as equity instruments.
Dividends are recognized as a liability in the period in which they are declared and approved by
shareholders. The income tax consequences of dividends are recognized when a liability to pay the
dividend is recognized.
Common shares
As of December\u00a031, 2024 , authorized common shares consist of 2 billion shares ( December\u00a031,
2023 : 2 billion ; December\u00a031, 2022 : 2 billion ), and the issued and fully paid share capital consists
of 939,939,384 common shares, each share having a par value of EUR 0.20 ( December\u00a031, 2023:
913,515,966 ; December\u00a031, 2022: 889,315,082 ).
Preference shares
As a means to protect the company against (an attempt at) an unsolicited takeover or other
attempt to exert (de facto) control of the company, the \u2018Stichting Preferente Aandelen Philips\u2019 has
been granted the right to acquire preference shares in the company. As of December\u00a031, 2024, no
such right has been exercised and no preference shares have been issued. Authorized preference
shares consist of 2 billion shares as of December\u00a031, 2024 ( December\u00a031, 2023 : 2 billion ;
December\u00a031, 2022 : 2 billion ).
Options, restricted and performance shares
Under its share-based compensation plans, the company granted stock options on its common
shares and other conditional rights to receive common shares in the future such as restricted shares
and performance shares (refer to Share-based compensation).
Treasury shares
In connection with the company\u2019s share repurchase programs, shares which have been
repurchased and are held in Treasury for the purpose of (i) delivery under share-based
compensation plans upon exercise of options, or vesting of restricted or performance shares, and
(ii) capital reduction, are accounted for as a reduction of shareholders\u2019 equity. Treasury shares are
recorded at cost, representing the market price on the acquisition date. When treasury shares are
delivered by the company under its share-based compensation plans, such shares are removed
from treasury shares on a first-in, first-out (FIFO) basis.
When treasury shares are delivered by the company upon exercise of options, the difference
between the cost and the cash received is recorded in retained earnings. When treasury shares are
delivered by the company upon vesting of restricted shares or performance shares (granted under
the company\u2019s share-based compensation plans), the difference between the market price of the
shares and the cost is recorded in retained earnings, and the market price is recorded in capital in
excess of par value.
The following table shows the movements in the outstanding number of shares over the last three
years:
Philips Group
Outstanding number of shares
2022
2023
2024
Balance as of January 1
870,182,445
881,480,527
906,403,156
Dividend distributed
14,174,568
39,334,938
30,860,582
Purchase of treasury shares
(5,080,693)
(15,964,445)
(13,718,391)
Delivery of treasury shares
2,204,207
1,552,136
1,463,727
Balance as of December 31
881,480,527
906,403,156
925,009,074
The following table reflects transactions that took place in relation to former and current share-
based compensation plans:
Philips Group
Transactions related to share-based compensation plans
2022
2023
2024
Shares acquired
2,142,445
3,000,000
9,281,227
Average market price
EUR 31.76
EUR 41.59
EUR 21.88
Amount paid
EUR 68 million
EUR 125 million
EUR 203 million
Shares delivered
2,204,207
1,552,136
1,463,727
Average price (FIFO)
EUR 35.16
EUR 34.59
EUR 37.14
Cost of delivered shares
EUR 77 million
EUR 54 million
EUR 54 million
Total shares in treasury at year-end
5,664,946
7,112,810
14,930,310
Total cost
EUR 191 million
EUR 262 million
EUR 411 million
The following transactions took place for capital reduction purposes:
Philips Group
Transactions related to capital reduction
2022
2023
2024
Shares acquired
2,938,248
12,964,445
4,437,164
Average market price
EUR 36.61
EUR 37.25
EUR 37.56
Amount paid
EUR 108 million
EUR 483 million
EUR 167 million
Cancellation of treasury shares (shares)
8,758,455
15,134,054
4,437,164
Cancellation of treasury shares (EUR)
EUR 299 million
EUR 566 million
EUR 167 million
Total shares in treasury at year-end
2,169,609
Total cost
EUR 83 million
Share purchase transactions related to employee option and share plans, as well as transactions
related to the reduction of share capital, involved a cash outflow of EUR 451 million in 2024. In
2024, we settled withholding tax liability for an amount of EUR 41\u00a0million relating to the dividend
distribution in 2023 (EUR 11\u00a0million) and in 2024 (EUR 29\u00a0million).
Share repurchase methods for share-based remuneration plans and capital reduction
purposes
Philips uses different methods to repurchase shares in its own capital: (i) share buyback repurchases
in the open market via an intermediary; (ii) repurchase of shares via forward contracts for future
delivery of shares; and (iii) the unwinding of call options on own shares. During 2024 , Philips used
methods (i) and (ii) to repurchase shares for share-based compensation plans and method (ii) to
repurchase shares for capital reduction purposes.
Forward contracts to repurchase shares and open market repurchases of shares
For share-based compensation plans
On August\u00a005, 2024, Philips announced that it would repurchase shares for an amount of up to
EUR 125 million to cover certain of its obligations arising from its Long-Term Incentive plans. The
repurchases were executed through a combination of open market purchases by an intermediary
(in August 2024 acquiring 2.2 million shares which resulted in a EUR 60 million increase in retained
earnings against treasury shares) and one forward contract for an amount of EUR 65 million to
acquire 2.5 million shares with a settlement date in November 2026 and a weighted average
forward price of EUR 26.40.
On June\u00a014, 2023 , Royal Philips announced that it will repurchase up to 7.1 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchases plans.
Under this program, Philips entered into one forward contract for an amount of EUR 138 million to
acquire 7.1 million shares with settlement dates varying between November 2024 and November
2025 and a weighted average forward price of EUR 19.43. As of December 31, 2024, a total of 3.1
million shares under this program were acquired (settled in the fourth quarter of 2024). This
resulted in a EUR 57 million increase in retained earnings against treasury shares.
On June\u00a013, 2022, Royal Philips announced that it will repurchase up to 3.2 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchases plans.
Under this program, Philips entered into one forward contract for an amount of EUR 63 million to
acquire 3.2 million shares with settlement dates in November 2024 and December 2024 and a
weighted average forward price of EUR 19.75. As of December\u00a031, 2024, all shares under this
program were acquired (settled in the fourth quarter of 2024). This resulted in a EUR 63 million
increase in retained earnings against treasury shares.
On January 29, 2020, Philips announced that it will repurchase up to 6 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchase plans.
Under this program, Philips entered into three forward contracts to acquire in total 5 million for an
amount of EUR 174 million to acquire with settlement dates varying between October 2021 and
November 2022 and a weighted average forward price of EUR 34.85. On October 26, 2022, the
original settlement date of two tranches entered into under this program (in total 1.75 million
shares) has been extended from November 23, 2022 to November 2023, and November 2024,
respectively. As of December\u00a031, 2024, a total of 5.0 million shares ( December\u00a031, 2023: 4.3
million shares) under this program were acquired (settled in the fourth quarter of 2021 , 2022,
2023, and 2024). This resulted in a EUR 23 million (2023: EUR 35 million) increase in retained
earnings against treasury shares.
As of December\u00a031, 2024, the remaining forward contracts to cover obligations under share-based
compensation plans related to 6.5 million shares (December\u00a031, 2023: 11.1 million shares) and
amounted to EUR 142 million (December\u00a031, 2023: EUR 224 million).
For capital reduction
On July\u00a026, 2021, Philips announced a share buyback program for share cancellation purposes for
an amount of up to EUR 1.5 billion. Consequently, in the third quarter of 2021 Philips entered into
three forward contracts for an amount of EUR 731 million to acquire 20 million shares with
settlement dates in 2022, 2023 and 2024 and a weighted average forward price of EUR 37.36.
Philips executed the remainder of the program through open market purchases by an intermediary
in the fourth quarter of2021(acquiring 21 million shares) and January 2022 (acquiring 0.8 million
shares). This resulted in a EUR 781 million increase in retained earnings against treasury shares. As
of December\u00a031, 2024, Philips completed the program announced in 2021 and as a result a total
of 19.6 million (December\u00a031, 2023: 15.1 million ) shares were acquired (in the fourth quarter of
2022 , second, third and fourth quarters of 2023, and first and second quarters of 2024). This
resulted in a EUR 167 million increase in retained earnings against treasury shares (2023: EUR 483
million including dividend adjustment).
As of December\u00a031, 2024, there were no remaining forward contracts entered into for capital
reduction purposes. As of December\u00a031, 2023, the remaining forward contracts entered into for
capital reduction purposes related to 4.4 million shares and amounted to EUR 167 million.
Shares cancellation
In June 2024, Philips completed the cancellation of 4.4 million of its common shares (with a cost
price of EUR 167 million). The cancelled shares were acquired as part of Philips\u2019 EUR 1.5 billion
share repurchase program announced on July\u00a026, 2021.
Dividend distribution
2024
In May 2024, Philips distributed a dividend of EUR 0.85 per common share, representing a total
value of EUR 768 million (including costs). The dividend was distributed in the form of shares only,
resulting in the issuance of 30,860,582 new common shares. Per share calculations have been
adjusted retrospectively for all periods presented to reflect the issuance of shares for the share
dividend in respect of 2023. Further reference is made to Earnings per share.
A proposal will be submitted to the 2025 Annual General Meeting of Shareholders to pay a
dividend of EUR 0.85 per common share, in shares or cash at the option of the shareholder, against
retained earnings for 2024.
2023
In May 2023, Philips distributed a dividend of EUR 0.85 per common share, representing a total
value of EUR 749 million (including costs). The dividend was distributed in the form of shares only,
resulting in the issuance of 39,334,938 new common shares.
2022
In May 2022, Philips distributed a dividend of EUR 0.85 per common share, representing a total
value of EUR 741 million (including costs). Shareholders could elect for a cash dividend or a share
dividend. Approximately 45% of the shareholders elected for a share dividend, resulting in the
issuance of 14,174,568 new common shares. The settlement of the cash dividend involved an
amount of EUR 411 million (including costs).
Limitations in the distribution of shareholders\u2019 equity
As of December\u00a031, 2024, pursuant to Dutch law, certain limitations exist relating to the
distribution of shareholders\u2019 equity of EUR 3,254 million. Such limitations relate to common shares
of EUR 188 million, as well as to legal reserves required by Dutch law included under retained
earnings of EUR 1,052 million and unrealized currency translation differences of EUR 2,014 million.
The unrealized gain related to cash flow hedges of EUR 1 million and unrealized loss related to fair
value through OCI financial assets of EUR 90 million qualify as revaluation reserves and reduce the
distributable amount due to the fact that these reserves are negative.
The legal reserves required by Dutch law of EUR 1,052 million included under retained earnings
relates to any legal or economic restrictions on the ability of affiliated companies to transfer funds
to the parent company in the form of dividends.
As of December\u00a031, 2023, these limitations in distributable amounts were EUR 2,435 million and
related to common shares of EUR 183 million, as well as to legal reserves required by Dutch law
included under retained earnings of EUR 990 million and unrealized currency translation differences
of EUR 1,263 million. The unrealized losses related to fair value through OCI financial assets of EUR
390 million and unrealized loss related to cash flow hedges of EUR 6 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-647": { "value": "
17Equity
Accounting policies
Common shares are classified as equity. Incremental costs directly attributable to the issuance of
shares are recognized as a deduction from equity. Where the company repurchases the company\u2019s
equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental transaction costs (net of income taxes), is deducted from shareholders\u2019 equity until
such treasury shares are cancelled or reissued.
Where such treasury shares are subsequently reissued, any consideration received, net of any
directly attributable incremental transaction costs and the related income tax effects, is included in
shareholders\u2019 equity.
Treasury shares
In connection with the company\u2019s share repurchase programs, shares which have been
repurchased and are held in Treasury for the purpose of (i) delivery under share-based
compensation plans upon exercise of options, or vesting of restricted or performance shares, and
(ii) capital reduction, are accounted for as a reduction of shareholders\u2019 equity. Treasury shares are
recorded at cost, representing the market price on the acquisition date. When treasury shares are
delivered by the company under its share-based compensation plans, such shares are removed
from treasury shares on a first-in, first-out (FIFO) basis.
When treasury shares are delivered by the company upon exercise of options, the difference
between the cost and the cash received is recorded in retained earnings. When treasury shares are
delivered by the company upon vesting of restricted shares or performance shares (granted under
the company\u2019s share-based compensation plans), the difference between the market price of the
shares and the cost is recorded in retained earnings, and the market price is recorded in capital in
excess of par value.
The following table shows the movements in the outstanding number of shares over the last three
years:
Philips Group
Outstanding number of shares
2022
2023
2024
Balance as of January 1
870,182,445
881,480,527
906,403,156
Dividend distributed
14,174,568
39,334,938
30,860,582
Purchase of treasury shares
(5,080,693)
(15,964,445)
(13,718,391)
Delivery of treasury shares
2,204,207
1,552,136
1,463,727
Balance as of December 31
881,480,527
906,403,156
925,009,074
The following table reflects transactions that took place in relation to former and current share-
based compensation plans:
Philips Group
Transactions related to share-based compensation plans
2022
2023
2024
Shares acquired
2,142,445
3,000,000
9,281,227
Average market price
EUR 31.76
EUR 41.59
EUR 21.88
Amount paid
EUR 68 million
EUR 125 million
EUR 203 million
Shares delivered
2,204,207
1,552,136
1,463,727
Average price (FIFO)
EUR 35.16
EUR 34.59
EUR 37.14
Cost of delivered shares
EUR 77 million
EUR 54 million
EUR 54 million
Total shares in treasury at year-end
5,664,946
7,112,810
14,930,310
Total cost
EUR 191 million
EUR 262 million
EUR 411 million
The following transactions took place for capital reduction purposes:
Philips Group
Transactions related to capital reduction
2022
2023
2024
Shares acquired
2,938,248
12,964,445
4,437,164
Average market price
EUR 36.61
EUR 37.25
EUR 37.56
Amount paid
EUR 108 million
EUR 483 million
EUR 167 million
Cancellation of treasury shares (shares)
8,758,455
15,134,054
4,437,164
Cancellation of treasury shares (EUR)
EUR 299 million
EUR 566 million
EUR 167 million
Total shares in treasury at year-end
2,169,609
Total cost
EUR 83 million
Share purchase transactions related to employee option and share plans, as well as transactions
related to the reduction of share capital, involved a cash outflow of EUR 451 million in 2024. In
2024, we settled withholding tax liability for an amount of EUR 41\u00a0million relating to the dividend
distribution in 2023 (EUR 11\u00a0million) and in 2024 (EUR 29\u00a0million).
Share repurchase methods for share-based remuneration plans and capital reduction
purposes
Philips uses different methods to repurchase shares in its own capital: (i) share buyback repurchases
in the open market via an intermediary; (ii) repurchase of shares via forward contracts for future
delivery of shares; and (iii) the unwinding of call options on own shares. During 2024 , Philips used
methods (i) and (ii) to repurchase shares for share-based compensation plans and method (ii) to
repurchase shares for capital reduction purposes.
Forward contracts to repurchase shares and open market repurchases of shares
For share-based compensation plans
On August\u00a005, 2024, Philips announced that it would repurchase shares for an amount of up to
EUR 125 million to cover certain of its obligations arising from its Long-Term Incentive plans. The
repurchases were executed through a combination of open market purchases by an intermediary
(in August 2024 acquiring 2.2 million shares which resulted in a EUR 60 million increase in retained
earnings against treasury shares) and one forward contract for an amount of EUR 65 million to
acquire 2.5 million shares with a settlement date in November 2026 and a weighted average
forward price of EUR 26.40.
On June\u00a014, 2023 , Royal Philips announced that it will repurchase up to 7.1 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchases plans.
Under this program, Philips entered into one forward contract for an amount of EUR 138 million to
acquire 7.1 million shares with settlement dates varying between November 2024 and November
2025 and a weighted average forward price of EUR 19.43. As of December 31, 2024, a total of 3.1
million shares under this program were acquired (settled in the fourth quarter of 2024). This
resulted in a EUR 57 million increase in retained earnings against treasury shares.
On June\u00a013, 2022, Royal Philips announced that it will repurchase up to 3.2 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchases plans.
Under this program, Philips entered into one forward contract for an amount of EUR 63 million to
acquire 3.2 million shares with settlement dates in November 2024 and December 2024 and a
weighted average forward price of EUR 19.75. As of December\u00a031, 2024, all shares under this
program were acquired (settled in the fourth quarter of 2024). This resulted in a EUR 63 million
increase in retained earnings against treasury shares.
On January 29, 2020, Philips announced that it will repurchase up to 6 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchase plans.
Under this program, Philips entered into three forward contracts to acquire in total 5 million for an
amount of EUR 174 million to acquire with settlement dates varying between October 2021 and
November 2022 and a weighted average forward price of EUR 34.85. On October 26, 2022, the
original settlement date of two tranches entered into under this program (in total 1.75 million
shares) has been extended from November 23, 2022 to November 2023, and November 2024,
respectively. As of December\u00a031, 2024, a total of 5.0 million shares ( December\u00a031, 2023: 4.3
million shares) under this program were acquired (settled in the fourth quarter of 2021 , 2022,
2023, and 2024). This resulted in a EUR 23 million (2023: EUR 35 million) increase in retained
earnings against treasury shares.
As of December\u00a031, 2024, the remaining forward contracts to cover obligations under share-based
compensation plans related to 6.5 million shares (December\u00a031, 2023: 11.1 million shares) and
amounted to EUR 142 million (December\u00a031, 2023: EUR 224 million).
For capital reduction
On July\u00a026, 2021, Philips announced a share buyback program for share cancellation purposes for
an amount of up to EUR 1.5 billion. Consequently, in the third quarter of 2021 Philips entered into
three forward contracts for an amount of EUR 731 million to acquire 20 million shares with
settlement dates in 2022, 2023 and 2024 and a weighted average forward price of EUR 37.36.
Philips executed the remainder of the program through open market purchases by an intermediary
in the fourth quarter of2021(acquiring 21 million shares) and January 2022 (acquiring 0.8 million
shares). This resulted in a EUR 781 million increase in retained earnings against treasury shares. As
of December\u00a031, 2024, Philips completed the program announced in 2021 and as a result a total
of 19.6 million (December\u00a031, 2023: 15.1 million ) shares were acquired (in the fourth quarter of
2022 , second, third and fourth quarters of 2023, and first and second quarters of 2024). This
resulted in a EUR 167 million increase in retained earnings against treasury shares (2023: EUR 483
million including dividend adjustment).
As of December\u00a031, 2024, there were no remaining forward contracts entered into for capital
reduction purposes. As of December\u00a031, 2023, the remaining forward contracts entered into for
capital reduction purposes related to 4.4 million shares and amounted to EUR 167 million.
Shares cancellation
In June 2024, Philips completed the cancellation of 4.4 million of its common shares (with a cost
price of EUR 167 million). The cancelled shares were acquired as part of Philips\u2019 EUR 1.5 billion
share repurchase program announced on July\u00a026, 2021.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-646": { "value": "
17Equity
Accounting policies
Common shares are classified as equity. Incremental costs directly attributable to the issuance of
shares are recognized as a deduction from equity. Where the company repurchases the company\u2019s
equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental transaction costs (net of income taxes), is deducted from shareholders\u2019 equity until
such treasury shares are cancelled or reissued.
Where such treasury shares are subsequently reissued, any consideration received, net of any
directly attributable incremental transaction costs and the related income tax effects, is included in
shareholders\u2019 equity.
Call options on own shares are treated as equity instruments.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-648": { "value": "
17Equity
Accounting policies
Common shares are classified as equity. Incremental costs directly attributable to the issuance of
shares are recognized as a deduction from equity. Where the company repurchases the company\u2019s
equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental transaction costs (net of income taxes), is deducted from shareholders\u2019 equity until
such treasury shares are cancelled or reissued.
Common shares
As of December\u00a031, 2024 , authorized common shares consist of 2 billion shares ( December\u00a031,
2023 : 2 billion ; December\u00a031, 2022 : 2 billion ), and the issued and fully paid share capital consists
of 939,939,384 common shares, each share having a par value of EUR 0.20 ( December\u00a031, 2023:
913,515,966 ; December\u00a031, 2022: 889,315,082 ).
Preference shares
As a means to protect the company against (an attempt at) an unsolicited takeover or other
attempt to exert (de facto) control of the company, the \u2018Stichting Preferente Aandelen Philips\u2019 has
been granted the right to acquire preference shares in the company. As of December\u00a031, 2024, no
such right has been exercised and no preference shares have been issued. Authorized preference
shares consist of 2 billion shares as of December\u00a031, 2024 ( December\u00a031, 2023 : 2 billion ;
December\u00a031, 2022 : 2 billion ).
The following table shows the movements in the outstanding number of shares over the last three
years:
Philips Group
Outstanding number of shares
2022
2023
2024
Balance as of January 1
870,182,445
881,480,527
906,403,156
Dividend distributed
14,174,568
39,334,938
30,860,582
Purchase of treasury shares
(5,080,693)
(15,964,445)
(13,718,391)
Delivery of treasury shares
2,204,207
1,552,136
1,463,727
Balance as of December 31
881,480,527
906,403,156
925,009,074
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-649": { "value": "
17Equity
Accounting policies
Common shares are classified as equity. Incremental costs directly attributable to the issuance of
shares are recognized as a deduction from equity. Where the company repurchases the company\u2019s
equity share capital (treasury shares), the consideration paid, including any directly attributable
incremental transaction costs (net of income taxes), is deducted from shareholders\u2019 equity until
such treasury shares are cancelled or reissued.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-652": { "value": "
17Equity
Accounting policies
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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-650": { "value": "
17Equity
Accounting policies
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.
Dividend distribution
2024
In May 2024, Philips distributed a dividend of EUR 0.85 per common share, representing a total
value of EUR 768 million (including costs). The dividend was distributed in the form of shares only,
resulting in the issuance of 30,860,582 new common shares. Per share calculations have been
adjusted retrospectively for all periods presented to reflect the issuance of shares for the share
dividend in respect of 2023. Further reference is made to Earnings per share.
A proposal will be submitted to the 2025 Annual General Meeting of Shareholders to pay a
dividend of EUR 0.85 per common share, in shares or cash at the option of the shareholder, against
retained earnings for 2024.
2023
In May 2023, Philips distributed a dividend of EUR 0.85 per common share, representing a total
value of EUR 749 million (including costs). The dividend was distributed in the form of shares only,
resulting in the issuance of 39,334,938 new common shares.
2022
In May 2022, Philips distributed a dividend of EUR 0.85 per common share, representing a total
value of EUR 741 million (including costs). Shareholders could elect for a cash dividend or a share
dividend. Approximately 45% of the shareholders elected for a share dividend, resulting in the
issuance of 14,174,568 new common shares. The settlement of the cash dividend involved an
amount of EUR 411 million (including costs).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-655": { "value": "
17Equity
Options, restricted and performance shares
Under its share-based compensation plans, the company granted stock options on its common
shares and other conditional rights to receive common shares in the future such as restricted shares
and performance shares (refer to Share-based compensation).
Treasury shares
In connection with the company\u2019s share repurchase programs, shares which have been
repurchased and are held in Treasury for the purpose of (i) delivery under share-based
compensation plans upon exercise of options, or vesting of restricted or performance shares, and
(ii) capital reduction, are accounted for as a reduction of shareholders\u2019 equity. Treasury shares are
recorded at cost, representing the market price on the acquisition date. When treasury shares are
delivered by the company under its share-based compensation plans, such shares are removed
from treasury shares on a first-in, first-out (FIFO) basis.
When treasury shares are delivered by the company upon exercise of options, the difference
between the cost and the cash received is recorded in retained earnings. When treasury shares are
delivered by the company upon vesting of restricted shares or performance shares (granted under
the company\u2019s share-based compensation plans), the difference between the market price of the
shares and the cost is recorded in retained earnings, and the market price is recorded in capital in
excess of par value.
The following table shows the movements in the outstanding number of shares over the last three
years:
Philips Group
Outstanding number of shares
2022
2023
2024
Balance as of January 1
870,182,445
881,480,527
906,403,156
Dividend distributed
14,174,568
39,334,938
30,860,582
Purchase of treasury shares
(5,080,693)
(15,964,445)
(13,718,391)
Delivery of treasury shares
2,204,207
1,552,136
1,463,727
Balance as of December 31
881,480,527
906,403,156
925,009,074
The following table reflects transactions that took place in relation to former and current share-
based compensation plans:
Philips Group
Transactions related to share-based compensation plans
2022
2023
2024
Shares acquired
2,142,445
3,000,000
9,281,227
Average market price
EUR 31.76
EUR 41.59
EUR 21.88
Amount paid
EUR 68 million
EUR 125 million
EUR 203 million
Shares delivered
2,204,207
1,552,136
1,463,727
Average price (FIFO)
EUR 35.16
EUR 34.59
EUR 37.14
Cost of delivered shares
EUR 77 million
EUR 54 million
EUR 54 million
Total shares in treasury at year-end
5,664,946
7,112,810
14,930,310
Total cost
EUR 191 million
EUR 262 million
EUR 411 million
The following transactions took place for capital reduction purposes:
Philips Group
Transactions related to capital reduction
2022
2023
2024
Shares acquired
2,938,248
12,964,445
4,437,164
Average market price
EUR 36.61
EUR 37.25
EUR 37.56
Amount paid
EUR 108 million
EUR 483 million
EUR 167 million
Cancellation of treasury shares (shares)
8,758,455
15,134,054
4,437,164
Cancellation of treasury shares (EUR)
EUR 299 million
EUR 566 million
EUR 167 million
Total shares in treasury at year-end
2,169,609
Total cost
EUR 83 million
Share purchase transactions related to employee option and share plans, as well as transactions
related to the reduction of share capital, involved a cash outflow of EUR 451 million in 2024. In
2024, we settled withholding tax liability for an amount of EUR 41\u00a0million relating to the dividend
distribution in 2023 (EUR 11\u00a0million) and in 2024 (EUR 29\u00a0million).
Share repurchase methods for share-based remuneration plans and capital reduction
purposes
Philips uses different methods to repurchase shares in its own capital: (i) share buyback repurchases
in the open market via an intermediary; (ii) repurchase of shares via forward contracts for future
delivery of shares; and (iii) the unwinding of call options on own shares. During 2024 , Philips used
methods (i) and (ii) to repurchase shares for share-based compensation plans and method (ii) to
repurchase shares for capital reduction purposes.
Forward contracts to repurchase shares and open market repurchases of shares
For share-based compensation plans
On August\u00a005, 2024, Philips announced that it would repurchase shares for an amount of up to
EUR 125 million to cover certain of its obligations arising from its Long-Term Incentive plans. The
repurchases were executed through a combination of open market purchases by an intermediary
(in August 2024 acquiring 2.2 million shares which resulted in a EUR 60 million increase in retained
earnings against treasury shares) and one forward contract for an amount of EUR 65 million to
acquire 2.5 million shares with a settlement date in November 2026 and a weighted average
forward price of EUR 26.40.
On June\u00a014, 2023 , Royal Philips announced that it will repurchase up to 7.1 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchases plans.
Under this program, Philips entered into one forward contract for an amount of EUR 138 million to
acquire 7.1 million shares with settlement dates varying between November 2024 and November
2025 and a weighted average forward price of EUR 19.43. As of December 31, 2024, a total of 3.1
million shares under this program were acquired (settled in the fourth quarter of 2024). This
resulted in a EUR 57 million increase in retained earnings against treasury shares.
On June\u00a013, 2022, Royal Philips announced that it will repurchase up to 3.2 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchases plans.
Under this program, Philips entered into one forward contract for an amount of EUR 63 million to
acquire 3.2 million shares with settlement dates in November 2024 and December 2024 and a
weighted average forward price of EUR 19.75. As of December\u00a031, 2024, all shares under this
program were acquired (settled in the fourth quarter of 2024). This resulted in a EUR 63 million
increase in retained earnings against treasury shares.
On January 29, 2020, Philips announced that it will repurchase up to 6 million shares to cover
certain of its obligations arising from its Long-Term Incentive and employee stock purchase plans.
Under this program, Philips entered into three forward contracts to acquire in total 5 million for an
amount of EUR 174 million to acquire with settlement dates varying between October 2021 and
November 2022 and a weighted average forward price of EUR 34.85. On October 26, 2022, the
original settlement date of two tranches entered into under this program (in total 1.75 million
shares) has been extended from November 23, 2022 to November 2023, and November 2024,
respectively. As of December\u00a031, 2024, a total of 5.0 million shares ( December\u00a031, 2023: 4.3
million shares) under this program were acquired (settled in the fourth quarter of 2021 , 2022,
2023, and 2024). This resulted in a EUR 23 million (2023: EUR 35 million) increase in retained
earnings against treasury shares.
As of December\u00a031, 2024, the remaining forward contracts to cover obligations under share-based
compensation plans related to 6.5 million shares (December\u00a031, 2023: 11.1 million shares) and
amounted to EUR 142 million (December\u00a031, 2023: EUR 224 million).
26Share-based compensation
Accounting policies
Philips share-based compensation is an equity-settled plan made of restricted and performance
shares. The restricted shares are subject to a three -year service condition and the performance
shares include both market and non-market-based performance conditions, in addition to a three -
year service condition. These shares are awarded to the Executive Committee and senior
management.
The grant date fair value of market-based performance shares is determined through a Monte
Carlo valuation model. The grant date fair value of non-market-based performance shares and
restricted shares is determined as the share price at the grant date as participants receive notional
dividends throughout the vesting period. The costs of share-based compensation plans are revised
for expected performance (non-market-based performance shares) and forfeiture and are spread
evenly over the service period.
Share-based compensation is recognized over the service period as personnel expense in the
consolidated statement of income, with a corresponding increase to equity.
Accounting estimates and judgments
The use of a valuation model to determine market-based performance share fair value requires
estimates for the expected volatility of the Philips share price and correlation among input variables.
At each reporting date, Philips calculates the expected realization of the non-market-based
performance targets and revises the expected share-based compensation expense. The cumulative
effect is recorded in the consolidated statement of income with a corresponding adjustment in equity.
No expense is recognized for awards that do not ultimately vest because non-market performance
and/or service conditions have not been met.
The purpose of the share-based compensation plans is to align the interests of management with
those of shareholders by providing incentives to improve the company\u2019s performance on a long-
term basis, thereby increasing shareholder value.
The company has the following plans:
\u2022 performance shares: rights to receive common shares in the future based on performance and
service conditions
\u2022 restricted shares: rights to receive common shares in the future based on a service condition
\u2022 options on its common shares
Since 2013 the Board of Management and other members of the Executive Committee are only
granted performance shares*. Performance shares as well as restricted shares can be granted to
executives, certain selected employees and new employees. Prior to 2013, options were also
granted.
Under the terms of employee stock purchase plans established by the company in various countries,
employees are eligible to purchase a limited number of Philips shares at discounted prices through
payroll withholdings.
Share-based compensation costs were EUR 104 million (2023 : EUR 97 million; 2022: EUR 104
million ). This includes the employee stock purchase plan of EUR 8 million , which is not a share-
based compensation that affects equity. In the Consolidated statements of changes in equity EUR
96 million is recognized in 2024 and represents the costs of the share-based compensation plans.
The amount recognized as an expense is adjusted for forfeitures. USD-denominated performance
shares, restricted shares and options are granted to employees in the US only.
Performance shares
The performance is measured over a three -year performance period. The performance shares have
three performance conditions: relative Total Shareholders\u2019 Return (TSR) compared to a peer group
of 20 companies including Philips (20 companies including Philips (2023: 20 companies; 2022: 20
companies, 2021 : 20companies); adjusted Earnings Per Share growth** (EPS); and a sustainability
criterion. The criterion is based on three Sustainable Development Goals (SDG) as defined by the
United Nations that are included in Philips\u2019 strategy on sustainability (refer to Environment, Social
and Governance). The performance conditions are weighted as follows: TSR 50%, EPS 40% and
SDG 10% (applicable for 2021, 2022 and 2023 plans). As of 2024 the performance conditions are
weighted as follows: TSR 40%, EPS 40% and SDG 20%.
The performance shares vest three years after the grant date. The number of performance shares
that will vest is dependent on achieving the performance conditions provided that the grantee is
still employed with the company.
The amount recognized as an expense is adjusted for actual performance of adjusted EPS growth**
and the actual realization of the SDGs, since these are non-market performance conditions. It is not
adjusted for non-vesting or extra vesting of performance shares due to a relative TSR performance
that differs from the performance anticipated at the grant date, since this is a market-based
performance condition.
The fair value of the performance shares is measured based on Monte Carlo simulation, which
takes into account dividend payments between the grant date and the vesting date by including
reinvested dividends as well as the market conditions expected to impact relative Total
Shareholders\u2019 Return performance in relation to selected peers. The following weighted-average
assumptions were used for the 2024 grants:
\u2022 risk-free rate: 2.72%
\u2022 expected share price volatility: 39%
The assumptions were used for these calculations only and do not necessarily represent an
indication of management\u2019s expectation of future developments for other purposes. The company
has based its volatility assumptions on historical experience measured over a 10-year period.
A summary of the status of the company\u2019s performance share plans as of December\u00a031, 2024, and
changes during the year are presented in the following table:
Philips Group
Performance shares
2023
2024
Shares
Weighted
average grant-
date fair value
Shares
Weighted
average grant-
date fair value
EUR-denominated
Outstanding as of January 1
4,385,837
33.13
5,392,035
27.22
Granted
2,299,280
23.65
2,265,462
28.94
Notional dividends\u00b9
240,977
27.15
218,782
24.35
Vested/Issued
(154,987)
44.08
(169,524)
50.30
Forfeited
(489,295)
27.05
(451,052)
25.07
Adjusted quantity\u00b2
(889,777)
44.27
(788,865)
50.65
Outstanding as of December 31
5,392,035
27.22
6,466,838
24.41
USD-denominated
Outstanding as of January 1
2,749,983
36.66
3,261,048
29.73
Granted
1,667,812
25.96
1,733,891
31.07
Notional dividends\u00b9
152,750
29.78
142,892
26.85
Vested/Issued
(121,760)
48.33
(80,151)
61.37
Forfeited
(596,846)
28.95
(489,195)
28.35
Adjusted quantity\u00b2
(590,890)
48.28
(377,857)
61.37
Outstanding as of December 31
3,261,048
29.73
4,190,628
26.89
1Dividend declared in 2024 on outstanding shares.
2Adjusted quantity includes the adjustments made to Performance shares outstanding due to updates on
the actual TSR, EPS, and SDG.
As of December\u00a031, 2024 , a total of EUR 128 million of unrecognized compensation costs relate to
non-vested performance shares (as of December\u00a031, 2023 EUR 102 million; as of December\u00a031,
2022 EUR 103 million). These costs are expected to be recognized over a weighted-average period
of 2.0 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 three-year cliff-vesting period provided that the grantee is
still employed with the company.
A summary of the status of the company\u2019s restricted shares as of December\u00a031, 2024, and changes
during the year are presented in the following table:
Philips Group
Restricted shares
2023
2024
Shares
Weighted
average grant-
date fair value
Shares
Weighted
average grant-
date fair value
EUR-denominated
Outstanding as of January 1
2,321,250
30.73
2,995,252
23.39
Granted
1,471,975
16.35
1,367,380
22.64
Notional dividends\u00b9
135,791
27.98
52,481
22.57
Vested/Issued
(595,796)
35.07
(627,855)
35.10
Forfeited
(337,968)
24.46
(263,352)
21.06
Outstanding as of December 31
2,995,252
23.39
3,523,906
21.17
USD-denominated
Outstanding as of January 1
2,345,263
33.87
2,654,193
26.04
Granted
1,284,761
17.72
1,460,620
24.59
Notional dividends\u00b9
126,498
31.12
48,774
24.33
Vested/Issued
(679,430)
37.83
(582,404)
40.51
Forfeited
(422,899)
26.79
(253,953)
23.43
Outstanding as of December 31
2,654,193
26.04
3,327,230
23.04
1Dividend declared in 2024 on outstanding shares.
As of December\u00a031, 2024, a total of EUR 73 million of unrecognized compensation costs relate to
non-vested restricted shares (as of December\u00a031, 2023 EUR 63 million; as of December\u00a031, 2022
EUR 72 million). These costs are expected to be recognized over a weighted-average period of 1.9
years.
Option plans
Retention option plan
In April 2023, the company granted non-recurring retention options that expire after 10 years.
These options vest after two years, provided that the grantee is still employed with the company.
The fair value of the options under this plan is measured based on Black-Scholes-Merton option
pricing model. The expected life of the options is calculated as the average between vesting period
(two years) and the total contractual life (10 years).
The following tables summarize information about the company\u2019s options as of December\u00a031,
2024, and changes during the year:
Philips Group
Options on EUR-denominated listed share
Options
Weighted average
exercise price
Outstanding as of January 1, 2024
3,660,000
22.16
Exercised
(3,793)
22.16
Forfeited
(259,668)
22.16
Outstanding as of December 31, 2024
3,396,539
22.16
The total intrinsic value of EUR-denominated options exercised during 2024 was EUR 15,475. Cash
received during 2024 from exercises under the company\u2019s options plans amounted to EUR 84,053.
As of December\u00a031, 2024, there were 39,983 options exercisable with a weighted average
remaining contractual term of 0.4 years and total intrinsic value of EUR 89,562.
The weighted average remaining contractual term for options outstanding as of December\u00a031,
2024, was 8.1 years.
Philips Group
Options on USD-denominated listed share
Options
Weighted average
exercise price
Outstanding as of January 1, 2024
1,929,000
24.42
Forfeited
(291,236)
24.42
Outstanding as of December 31, 2024
1,637,764
24.42
There were no exercisable USD-denominated options as of December\u00a031, 2024. The weighted
average remaining contractual term for options outstanding as of December\u00a031, 2024, was 8.0
years.
As of December\u00a031, 2024, a total of EUR 2 million of unrecognized compensation costs relate to
outstanding options. These costs are expected to be recognized over a weighted-average period of
0.3 years.
Philips Group
Outstanding options in millions of EUR unless otherwise stated\u00a0
Number of options
Intrinsic value
Weighted average
remaining contractual
term in years
EUR-denominated
20-25
3,396,539
8
8.1
Outstanding options
3,396,539
8
8.1
USD-denominated
20-25
1,637,764
1
8.0
Outstanding options
1,637,764
1
8.0
*Executive Committee members can receive restricted share rights as a sign-on LTI awards upon hiring.
**The definition of this non-IFRS measure and a reconciliation to the IFRS measure is included in Equity.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-654": { "value": "
17Equity
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\u2019 equity and non-controlling interests. This
measure is used by Philips Treasury management and investment analysts to evaluate financial
strength and funding requirements. The Philips net debt position is managed with the intention of
retaining the current strong investment grade credit rating. Furthermore, Philips\u2019 dividend policy is
aimed at 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
2022
2023
2024
Long-term debt
7,270
7,035
7,113
Short-term debt
931
654
526
Total debt
8,201
7,689
7,639
Cash and cash equivalents
1,172
1,869
2,401
Net debt
7,028
5,820
5,238
Shareholders\u2019 equity
13,249
12,028
12,006
Non-controlling interests
34
33
37
Group equity
13,283
12,061
12,043
Net debt : group equity ratio
35:65
33:67
30:70
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, is included in the following table.
Philips Group
Adjusted income from continuing operations attributable to shareholders1 in millions of EUR
2022
2023
2024
Net income
(1,605)
(463)
(698)
Discontinued operations, net of income taxes
(13)
10
(142)
Income from continuing operations
(1,618)
(454)
(840)
Income from continuing operations attributable to
non-controlling interests
(3)
(2)
(3)
Income from continuing operations
attributable to shareholders\u00b9
(1,622)
(456)
(843)
Adjustments for:
Amortization and impairment of acquired
intangible assets
363
290
392
Impairment of goodwill
1,357
8
0
Restructuring costs and acquisition-related
charges
202
381
326
Other items:
925
1,358
830
Respironics litigation provision
575
984
Respironics insurance income
(538)
Respironics consent decree charges
250
363
113
Respironics field-action running costs
210
224
133
Quality actions
59
175
123
R&D project impairments
134
Portfolio realignment charges
109
Impairment of assets in S&RC
39
Provision for public investigations tender
irregularities
60
Provision for a legal matter
31
Investment re-measurement loss
23
Loss (gain) on divestment of business
(35)
Remaining items
63
2
16
Net finance income/expenses
(4)
18
23
Tax impact on adjusting items\u00b2
(376)
(450)
(370)
Tax effect of derecognition of US deferred tax
asset
941
Adjusted Income from continuing operations
attributable to shareholders 1
845
1,148
1,300
1Shareholders in this table refers to shareholders of Koninklijke Philips N.V.
2Includes deferred tax assets derecognized in the line belo", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-653": { "value": "
17Equity
Limitations in the distribution of shareholders\u2019 equity
As of December\u00a031, 2024, pursuant to Dutch law, certain limitations exist relating to the
distribution of shareholders\u2019 equity of EUR 3,254 million. Such limitations relate to common shares
of EUR 188 million, as well as to legal reserves required by Dutch law included under retained
earnings of EUR 1,052 million and unrealized currency translation differences of EUR 2,014 million.
The unrealized gain related to cash flow hedges of EUR 1 million and unrealized loss related to fair
value through OCI financial assets of EUR 90 million qualify as revaluation reserves and reduce the
distributable amount due to the fact that these reserves are negative.
The legal reserves required by Dutch law of EUR 1,052 million included under retained earnings
relates to any legal or economic restrictions on the ability of affiliated companies to transfer funds
to the parent company in the form of dividends.
As of December\u00a031, 2023, these limitations in distributable amounts were EUR 2,435 million and
related to common shares of EUR 183 million, as well as to legal reserves required by Dutch law
included under retained earnings of EUR 990 million and unrealized currency translation differences
of EUR 1,263 million. The unrealized losses related to fair value through OCI financial assets of EUR
390 million and unrealized loss related to cash flow hedges of EUR 6 million qualify as a revaluation
reserve and reduce the distributable amount due to the fact that this reserve is negative.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-656": { "value": "0.85", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-659": { "value": "
18Debt
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.
Lease liabilities
Lease liabilities are measured at the present value of the lease payments due over the lease term,
generally discounted using the incremental borrowing rate. Lease liabilities are subsequently
measured at amortized cost using the effective interest method. Lease liabilities are remeasured in
case of modifications or reassessments of the lease.
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion . In 2024, Philips issued EUR 700 million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and other floating rate debt . As of December\u00a031, 2024 , Philips
has EUR 3.7 billion (2023: EUR 3.3 billion) fixed rate notes outstanding under the EMTN program.
The provisions applicable to all USD-denominated corporate bonds issued by the company in March
2008 and March 2012 (due 2038 and 2042) contain a \u2018Change of Control Triggering Event\u2019. 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 since 2018 contain a similar
provision (\u2018Change of Control Put Event\u2019). Upon the occurrence of such an event, the company
might be required to redeem or purchase any of such bonds at their principal amount together
with interest accrued. Philips\u2019 outstanding long-term debt does not contain financial covenants.
As of December 31, 2024, debt includes forward contracts of EUR 142 million (nominal value)
relating to the repurchase of shares to cover long-term incentive and employee stock purchase
plans, with maturity dates in the fourth quarter of 2025 (EUR 77 million ) and the fourth quarter of
2026 (EUR 65 million).
In 2023, Philips issued EUR 500 million of fixed rate notes under the company\u2019s EMTN program
that mature in 2031 and used the proceeds for general corporate purposes, including the
repayment of EUR 500 million that was outstanding under the credit facility entered into in the
fourth quarter of 2022 . In 2023 , Philips entered into a total amount of EUR 138 million forward
contracts relating to the company\u2019s long-term incentive plans. These forwards partly matured in the
fourth quarter of 2024 (EUR 61 million ) with the remainder maturing in 2025 (EUR 77 million ). In
addition, a total of EUR 125 million forward contracts relating to the Long-Term Incentive and
employee stock purchase plans and EUR 481 million of forwards related to the share buyback
program announced in 2021 matured throughout 2023.
Long-term debt
The following tables present information about the long-term debt outstanding, its maturity and
average interest rates in 2024 and 2023.
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2024
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,408
131
1,276
122
1,154
12.3
6.3%
EUR bonds
4,917
4,917
2,639
2,278
4.7
2.3%
Forward contracts
148
82
66
66
1.3
1.2%
Lease liabilities
1,073
219
854
506
347
3.8
3.7%
Bank borrowings
1
1
1
1
1.5
1.0%
Other long-term debt
-
-
-
-
-
3.2
1.2%
Long-term debt
7,546
434
7,113
3,333
3,779
5.9
3.2%
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2023
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,325
1,325
240
1,085
13.3
6.3%
EUR bonds
4,569
4,569
2,335
2,234
5.1
2.0%
Forward contracts
396
321
76
76
0.8
1.4%
Lease liabilities
1,074
211
864
505
358
3.9
3.1%
Bank borrowings
203
1
201
201
1.2
4.2%
Other long-term debt
-
-
-
-
-
7.4
1.2%
Long-term debt
7,568
532
7,035
3,357
3,678
6.0
2.9%
Bonds
The following table presents the amount outstanding and effective rate of bonds.
Philips Group
Unsecured Bonds in millions of EUR unless otherwise stated
Effective rate
2023
2024
Unsecured EUR Bonds
Due 30/03/2025; 1 3/8%
1.509%
346
Due 22/05/2026; 1/2%
0.608%
750
750
Due 05/05/2027; 1 7/8%
2.049%
750
750
Due 02/05/2028; 1 3/8%
1.523%
500
500
Due 05/11/2029; 2 1/8%
2.441%
650
650
Due 30/03/2030; 2%
2.128%
500
500
Due 08/09/2031; 4 2/8%
4.33%
500
500
Due 31/05/2032; 3 3/4%
4.043%
700
Due 05/05/2033; 2 5/8%
2.71%
600
600
Unsecured USD Bonds
Due 15/05/2025; 7 3/4%
7.429%
49
52
Due 15/05/2025; 7 1/8%
6.794%
75
79
Due 01/06/2026; 7 1/5%
6.885%
114
121
Due 03/11/2038; 6 7/8%
7.21%
657
697
Due 15/03/2042; 5%
5.273%
452
480
Adjustments\u00b9
(47)
(55)
Unsecured Bonds
5,894
6,324
1Adjustments related to both EUR and USD bonds and concern bond discounts, premium and
transaction costs.
Leases
The following table presents a reconciliation between the total of future minimum lease payments
and their present value.
Philips Group
Lease liabilities in millions of EUR
2023
2024
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
239
28
211
255
35
219
Between one and five years
572
67
505
592
85
506
More than five years
388
30
358
385
38
347
Lease liabilities
1,200
125
1,074
1,232
159
1,073
Short-term debt
Philips Group
Short-term debt in millions of EUR
2023
2024
Short-term bank borrowings
122
92
Current portion of long-term debt
532
434
Short-term debt
654
526
During 2024, the weighted average interest rate on the bank borrowings was 9.3% (2023: 8.6%).
This increase was mainly driven by higher interest rate environments across various countries
globally.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-660": { "value": "
18Debt
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.
Lease liabilities
Lease liabilities are measured at the present value of the lease payments due over the lease term,
generally discounted using the incremental borrowing rate. Lease liabilities are subsequently
measured at amortized cost using the effective interest method. Lease liabilities are remeasured in
case of modifications or reassessments of the lease.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-658": { "value": "
18Debt
Accounting policies
Debt
Debt is initially measured at fair value net of directly attributable transaction costs. Subsequently,
debt is measured at amortized cost using the effective interest rate method. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. Debt is derecognized when the obligation under the
liability is discharged, cancelled or has expired.
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion . In 2024, Philips issued EUR 700 million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and other floating rate debt . As of December\u00a031, 2024 , Philips
has EUR 3.7 billion (2023: EUR 3.3 billion) fixed rate notes outstanding under the EMTN program.
The provisions applicable to all USD-denominated corporate bonds issued by the company in March
2008 and March 2012 (due 2038 and 2042) contain a \u2018Change of Control Triggering Event\u2019. 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 since 2018 contain a similar
provision (\u2018Change of Control Put Event\u2019). Upon the occurrence of such an event, the company
might be required to redeem or purchase any of such bonds at their principal amount together
with interest accrued. Philips\u2019 outstanding long-term debt does not contain financial covenants.
As of December 31, 2024, debt includes forward contracts of EUR 142 million (nominal value)
relating to the repurchase of shares to cover long-term incentive and employee stock purchase
plans, with maturity dates in the fourth quarter of 2025 (EUR 77 million ) and the fourth quarter of
2026 (EUR 65 million).
In 2023, Philips issued EUR 500 million of fixed rate notes under the company\u2019s EMTN program
that mature in 2031 and used the proceeds for general corporate purposes, including the
repayment of EUR 500 million that was outstanding under the credit facility entered into in the
fourth quarter of 2022 . In 2023 , Philips entered into a total amount of EUR 138 million forward
contracts relating to the company\u2019s long-term incentive plans. These forwards partly matured in the
fourth quarter of 2024 (EUR 61 million ) with the remainder maturing in 2025 (EUR 77 million ). In
addition, a total of EUR 125 million forward contracts relating to the Long-Term Incentive and
employee stock purchase plans and EUR 481 million of forwards related to the share buyback
program announced in 2021 matured throughout 2023.
Long-term debt
The following tables present information about the long-term debt outstanding, its maturity and
average interest rates in 2024 and 2023.
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2024
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,408
131
1,276
122
1,154
12.3
6.3%
EUR bonds
4,917
4,917
2,639
2,278
4.7
2.3%
Forward contracts
148
82
66
66
1.3
1.2%
Lease liabilities
1,073
219
854
506
347
3.8
3.7%
Bank borrowings
1
1
1
1
1.5
1.0%
Other long-term debt
-
-
-
-
-
3.2
1.2%
Long-term debt
7,546
434
7,113
3,333
3,779
5.9
3.2%
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2023
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,325
1,325
240
1,085
13.3
6.3%
EUR bonds
4,569
4,569
2,335
2,234
5.1
2.0%
Forward contracts
396
321
76
76
0.8
1.4%
Lease liabilities
1,074
211
864
505
358
3.9
3.1%
Bank borrowings
203
1
201
201
1.2
4.2%
Other long-term debt
-
-
-
-
-
7.4
1.2%
Long-term debt
7,568
532
7,035
3,357
3,678
6.0
2.9%
Bonds
The following table presents the amount outstanding and effective rate of bonds.
Philips Group
Unsecured Bonds in millions of EUR unless otherwise stated
Effective rate
2023
2024
Unsecured EUR Bonds
Due 30/03/2025; 1 3/8%
1.509%
346
Due 22/05/2026; 1/2%
0.608%
750
750
Due 05/05/2027; 1 7/8%
2.049%
750
750
Due 02/05/2028; 1 3/8%
1.523%
500
500
Due 05/11/2029; 2 1/8%
2.441%
650
650
Due 30/03/2030; 2%
2.128%
500
500
Due 08/09/2031; 4 2/8%
4.33%
500
500
Due 31/05/2032; 3 3/4%
4.043%
700
Due 05/05/2033; 2 5/8%
2.71%
600
600
Unsecured USD Bonds
Due 15/05/2025; 7 3/4%
7.429%
49
52
Due 15/05/2025; 7 1/8%
6.794%
75
79
Due 01/06/2026; 7 1/5%
6.885%
114
121
Due 03/11/2038; 6 7/8%
7.21%
657
697
Due 15/03/2042; 5%
5.273%
452
480
Adjustments\u00b9
(47)
(55)
Unsecured Bonds
5,894
6,324
1Adjustments related to both EUR and USD bonds and concern bond discounts, premium and
transaction costs.
Short-term debt
Philips Group
Short-term debt in millions of EUR
2023
2024
Short-term bank borrowings
122
92
Current portion of long-term debt
532
434
Short-term debt
654
526
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-657": { "value": "
18Debt
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion . In 2024, Philips issued EUR 700 million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and other floating rate debt . As of December\u00a031, 2024 , Philips
has EUR 3.7 billion (2023: EUR 3.3 billion) fixed rate notes outstanding under the EMTN program.
The provisions applicable to all USD-denominated corporate bonds issued by the company in March
2008 and March 2012 (due 2038 and 2042) contain a \u2018Change of Control Triggering Event\u2019. 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 since 2018 contain a similar
provision (\u2018Change of Control Put Event\u2019). Upon the occurrence of such an event, the company
might be required to redeem or purchase any of such bonds at their principal amount together
with interest accrued. Philips\u2019 outstanding long-term debt does not contain financial covenants.
As of December 31, 2024, debt includes forward contracts of EUR 142 million (nominal value)
relating to the repurchase of shares to cover long-term incentive and employee stock purchase
plans, with maturity dates in the fourth quarter of 2025 (EUR 77 million ) and the fourth quarter of
2026 (EUR 65 million).
In 2023, Philips issued EUR 500 million of fixed rate notes under the company\u2019s EMTN program
that mature in 2031 and used the proceeds for general corporate purposes, including the
repayment of EUR 500 million that was outstanding under the credit facility entered into in the
fourth quarter of 2022 . In 2023 , Philips entered into a total amount of EUR 138 million forward
contracts relating to the company\u2019s long-term incentive plans. These forwards partly matured in the
fourth quarter of 2024 (EUR 61 million ) with the remainder maturing in 2025 (EUR 77 million ). In
addition, a total of EUR 125 million forward contracts relating to the Long-Term Incentive and
employee stock purchase plans and EUR 481 million of forwards related to the share buyback
program announced in 2021 matured throughout 2023.
Long-term debt
The following tables present information about the long-term debt outstanding, its maturity and
average interest rates in 2024 and 2023.
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2024
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,408
131
1,276
122
1,154
12.3
6.3%
EUR bonds
4,917
4,917
2,639
2,278
4.7
2.3%
Forward contracts
148
82
66
66
1.3
1.2%
Lease liabilities
1,073
219
854
506
347
3.8
3.7%
Bank borrowings
1
1
1
1
1.5
1.0%
Other long-term debt
-
-
-
-
-
3.2
1.2%
Long-term debt
7,546
434
7,113
3,333
3,779
5.9
3.2%
Philips Group
Long-term debt in millions of EUR unless otherwise stated
2023
Amount outstanding
Current portion
Non-current portion
Between 1 and 5
years
Amount due after 5
years
Average remaining
term (in years)
Average rate of
interest
USD bonds
1,325
1,325
240
1,085
13.3
6.3%
EUR bonds
4,569
4,569
2,335
2,234
5.1
2.0%
Forward contracts
396
321
76
76
0.8
1.4%
Lease liabilities
1,074
211
864
505
358
3.9
3.1%
Bank borrowings
203
1
201
201
1.2
4.2%
Other long-term debt
-
-
-
-
-
7.4
1.2%
Long-term debt
7,568
532
7,035
3,357
3,678
6.0
2.9%
Bonds
The following table presents the amount outstanding and effective rate of bonds.
Philips Group
Unsecured Bonds in millions of EUR unless otherwise stated
Effective rate
2023
2024
Unsecured EUR Bonds
Due 30/03/2025; 1 3/8%
1.509%
346
Due 22/05/2026; 1/2%
0.608%
750
750
Due 05/05/2027; 1 7/8%
2.049%
750
750
Due 02/05/2028; 1 3/8%
1.523%
500
500
Due 05/11/2029; 2 1/8%
2.441%
650
650
Due 30/03/2030; 2%
2.128%
500
500
Due 08/09/2031; 4 2/8%
4.33%
500
500
Due 31/05/2032; 3 3/4%
4.043%
700
Due 05/05/2033; 2 5/8%
2.71%
600
600
Unsecured USD Bonds
Due 15/05/2025; 7 3/4%
7.429%
49
52
Due 15/05/2025; 7 1/8%
6.794%
75
79
Due 01/06/2026; 7 1/5%
6.885%
114
121
Due 03/11/2038; 6 7/8%
7.21%
657
697
Due 15/03/2042; 5%
5.273%
452
480
Adjustments\u00b9
(47)
(55)
Unsecured Bonds
5,894
6,324
1Adjustments related to both EUR and USD bonds and concern bond discounts, premium and
transaction costs.
Leases
The following table presents a reconciliation between the total of future minimum lease payments
and their present value.
Philips Group
Lease liabilities in millions of EUR
2023
2024
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
239
28
211
255
35
219
Between one and five years
572
67
505
592
85
506
More than five years
388
30
358
385
38
347
Lease liabilities
1,200
125
1,074
1,232
159
1,073
Short-term debt
Philips Group
Short-term debt in millions of EUR
2023
2024
Short-term bank borrowings
122
92
Current portion of long-term debt
532
434
Short-term debt
654
526
During 2024, the weighted average interest rate on the bank borrowings was 9.3% (2023: 8.6%).
This increase was mainly driven by higher interest rate environments across various countries
globally.
24Contingencies
Legal proceedings
The company and certain of its group companies and former group companies are involved as a
party in legal proceedings, regulatory and other governmental proceedings, including discussions
on potential remedial actions, relating to such matters as competition issues, commercial
transactions, product liability, participations, and environmental pollution.
While it is not feasible to predict or determine the outcome of all pending or threatened legal
proceedings, regulatory and governmental proceedings, the company is of the opinion that the
cases described below may have, or have had in the recent past, a significant impact on the
company\u2019s consolidated financial position, results of operations and cash flows.
Public investigations
In February 2023, the company received a statement of objections from the French Competition
Authority (FCA) initiating a formal investigation to verify whether the company and certain other
manufacturers of small domestic appliances breached antitrust rules in France in the period
2009-2014 through the alleged exchange of commercially sensitive information. The FCA issued its
decision in December 2024, in which it closed the case by concluding that the company did not
violate antitrust rules in France.
Respironics recall
On June 14, 2021, Philips subsidiary Philips RS North America LLC (Philips Respironics) issued a
voluntary recall notification in the United States and field safety notice outside the United States for
specific Philips Respironics CPAP, Bi-Level PAP, and mechanical ventilator devices (the \u201cRecalled
Devices\u201d).
Consent Decree
On August 26, 2021, the US Food and Drug Administration (FDA) commenced an inspection of the
Philips Respironics manufacturing facility in Murrysville, Pennsylvania, and provided Philips
Respironics with its preliminary inspectional observations on November 9, 2021. In the first half of
2024, Philips Respironics reached an agreement with the US Department of Justice (DoJ), acting on
behalf of the FDA, regarding the terms of a consent decree to resolve the identified issues in
relation to the inspection. The consent decree was entered by the court in April 2024.
DOJ investigation; state Attorneys General investigation
Philips Respironics and certain of Philips' subsidiaries in the US continue to cooperate with a
criminal and civil investigation triggered by a subpoena received from the DOJ in 2022 to provide
information related to events leading to the Respironics recall. In addition, the same entities are
cooperating with an investigation initiated in 2024 by certain US state Attorneys General into trade
practices related to the products subject of the Respironics recall. While the outflow of economic
resources in connection with these investigations is assessed as probable, given the current stage of
the investigations, the company is not able to reliably estimate the financial impact.
Product liability claims
Following the voluntary recall notification, a number of civil complaints have been filed in several
jurisdictions against Philips Respironics and certain of its affiliates (including the company) generally
alleging economic loss, personal injury and/or the potential for personal injury allegedly caused by
the recalled devices.
In the US, consumer and commercial class action lawsuits have been filed alleging economic loss
and medical monitoring claims. Individual personal injury lawsuits have also been filed. On October
8, 2021, a Multi-District Litigation (MDL) in the US District Court for the Western District of
Pennsylvania was formed, and most of these class action and personal injury lawsuits have been
consolidated in the MDL for pre-trial proceedings.
On September 7, 2023, Philips Respironics reached agreement on a class action settlement in
relation to the economic loss class action complaint, for which the company recorded a EUR 575
million provision in the first quarter of 2023. Under the agreement, which became final in May
2024, the Philips defendants agreed to provide predefined cash awards to all eligible participants in
the US depending on the type of device, extended warranties on all remediated devices provided as
part of Respironics\u2019 recall program, and an additional cash award if they return the recalled device
to Philips Respironics. The settlement also provides for compensation for individuals who acquired
replacement devices in the market after the recall and prior to the announcement of the
settlement. The settlement also provides for compensation to private insurers and other third-party
payers. The claims period concluded on August 9, 2024, and since then, the Claims Administrator
has been processing claims, calculating relevant payment amounts, and making payments to
eligible class members.
On May 9, 2024, Philips Respironics reached agreement on a class action settlement in relation to
the medical monitoring class action complaint. Under the agreement, which became final in
January 2025, the Philips defendants agreed to pay USD 25 million into a Qualified Settlement
Fund for the benefit of eligible class members. The USD 25 million amount is a fixed cap on the
amount of the settlement and will be used to fund, among other things, research related to the
advancement of public knowledge regarding the detection, diagnosis, and treatment of those
injuries alleged to have been caused by use of the recalled devices.
Also on May 9, 2024, Philips Respironics reached agreement on a private settlement in relation to
US personal injury claims. Under the agreement, the Philips defendants have agreed (subject to a
termination right) to pay USD 1.075 billion to consist of USD 25 million in notice and administrative
costs and USD 1.050 billion into a Personal Injury Settlement Fund. The settlement is an opt-in
agreement, by which eligible claimants would release all of their personal injury claims in exchange
for participation in the Personal Injury Settlement Fund. To participate in the settlement, an eligible
claimant must have experienced a qualifying injury. The Philips parties had the right to terminate
the settlement if less than 95% of eligible claimants would register for the settlement by the
registration deadline on January 31, 2025. As at the registration deadline registrations exceeded
95%, the settlement has now become final with payment expected in the first half of 2025. For
any individuals who declined to participate in, or are ineligible for, the settlement, and who wish to
litigate their personal injury claims, they will need to identify themselves after the registration
deadline and then comply with court orders imposing certain discovery obligations on them,
including with respect to early disclosure of their evidence on causation.
Philips Respironics and certain of its affiliates (including the company) continue to be defendants in
consumer class action lawsuits in Australia, Canada and Israel and collective or group actions in
Chile, France, Germany, Italy and the Netherlands alleging economic loss and/or personal injury.
While the company believes it is probable that ongoing lawsuits will in the aggregate lead to an
outflow of economic resources for Philips Respironics or other Philips entities, given the significant
uncertainty regarding the nature of the relevant events and potential obligations, the company is
not currently able to reliably estimate the amount of the obligation associated with these various
lawsuits. The final outcome of the lawsuits and the remaining cost to resolve them cannot currently
be determined due to a number of variables, including the early stages of some of these
proceedings and uncertainty regarding the number of remaining claimants, their allegations, and
their alleged injuries. The courts have not yet been asked to decide the question of whether any of
the claimed injuries could have been caused by use of the recalled devices.
In 2024, the company and its insurance carriers reached an agreement on the basis of which the
insurance carriers agreed to contribute EUR 540 million to cover product liability-related cash flows
related to the Respironics recall. This amount was paid in full to the company in 2024.
Securities claims
On August 16, 2021, a securities class action complaint was filed against the company, its former
CEO and its former CFO in the US District Court for the Eastern District of New York alleging
violations of the Securities Exchange Act of 1934 causing damage to investors. On September 23,
2024, following amendments to the complaint, the court issued a decision dismissing all claims
against the company\u2019s former CFO and the former head of Philips Respironics but denying in part
the motion to dismiss with respect to the company and its former CEO. The Court narrowed the
class period and dismissed all claims based on statements made before 2018. The Court also
dismissed all claims relating to certain categories of alleged misstatements. On October 28, 2024,
the company and its former CEO moved for reconsideration of that portion of the decision denying
their motion, and that motion was pending as of December 31, 2024.
In the Netherlands, six different parties (including European Investors \u2013 VEB and Deminor Litigation
Funding) representing both retail and institutional investors have approached the company, holding
the company and its directors liable for alleged misstatements and failures to make timely
disclosures in relation to the Respironics recall. As of December 31, 2024, one party has filed a civil
complaint with the Amsterdam District Court.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. An adverse outcome of these cases could have a material impact on the company\u2019s
consolidated financial position, results of operations and cash flows.
SEC investigation
Following earlier requests for information from the US Securities and Exchange Commission (SEC),
in March 2024, the company received a subpoena from the SEC relating to the Respironics Recall
and compliance with relevant securities laws. The investigation is not an indication that the SEC or
its staff have determined that any violations of law have occurred. The company is fully cooperating
with the investigation.It is the company's assessment that it is possible but not probable that this
investigation could lead to certain outflow of resources. The company is not able to reliably
estimate the financial impact, if any.
Other claims
On October 12, 2021, SoClean, a company offering ozone-based cleaning products for sleep
devices, filed a lawsuit in the US against the company and certain of its affiliates alleging that the
defendants\u2019 statements about the potential adverse effect ozone cleaning may have on the recalled
devices has significantly damaged its business. Philips believes that the claim is without merit and
will vigorously defend itself. In November 2023, the court ruled on one of the motions to dismiss
filed by defendants and partially dismissed some of SoClean\u2019s claims. On January 4, 2024, Philips
and its affiliates filed their answer and counterclaims against SoClean and one of its affiliates. In
October 2024, the court partially dismissed some of the counterclaims. Philips and its affiliates are
also pursuing claims against SoClean and one of its affiliates for contribution for personal injury
settlement costs and/or personal injury liability incurred by the company or its affiliates. SoClean
and its affiliate have sought to dismiss those claims, but the court has not yet reached a decision.
In addition, some of Philips Respironics\u2019 business partners, such as distributors and durable medical
equipment providers, have filed or threatened to file claims alleging economic losses suffered as a
consequence of the voluntary recall. Philips Respironics is engaging with certain of its business
partners on the level of compensation they allege to be entitled to under Philips Respironics\u2019
replacement program of the recalled devices. As of December 31, 2024, most of these claims have
been resolved.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. In the event of an adverse outcome, these matters could have a material impact on
the company\u2019s consolidated financial position, results of operations and cash flows.
To date, other than for the economic loss, medical monitoring and personal injury settlements
discussed above, no provisions have been recorded for the litigation and investigations in the US
and Canada associated with the Respironics field action.
Other
In the second half of 2023, Electro Medical Systems S.A., a manufacturer of, among others,
medical devices for dental prophylaxis, filed a lawsuit against the company alleging that the
company materially breached its duties under a cooperation agreement entered into between the
parties in 2016, claiming damages in excess of EUR 300 million, alleging loss of profit and lost
increase in brand value. Philips disagrees with the allegations and has submitted its statement of
defense in June 2024. The first Court hearing is expected to take place in the first half of 2025.
Miscellaneous
For details on other contractual obligations, please refer to liquidity risk in Details of treasury and
other financial risks.
29Details of treasury and other financial risks
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 short and longer term basis. Philips
invests surplus cash in short-term deposits with appropriate maturities and money market funds to
ensure sufficient liquidity is available to meet liabilities when due and in money market funds.
The rating of the company\u2019s debt by major rating agencies may improve or deteriorate. As a result,
Philips\u2019 future borrowing capacity may be influenced and its financing costs may fluctuate. Philips
has various sources to mitigate the liquidity risk for the group. As of December\u00a031, 2024 Philips had
EUR 2,401 million in cash and cash equivalents ( 2023 : EUR 1,869 million ), which includes short-
term deposits of EUR 1,946 million ( 2023 : EUR 1,399 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\u2019s operational or investment needs.
Philips faces cross-border foreign exchange controls and/or other legal restrictions in a few
countries that could limit its ability to make these balances available on short notice for general use
by the group.
Philips has a USD 2.5 billion Commercial Paper Program and a EUR 1 billion committed standby
revolving credit facility that can be used for general group purposes. As of December\u00a031, 2024 ,
Philips did not have any loans outstanding under either facility. These facilities do not have a
material adverse change clause, have no financial covenants and have no credit-rating-related
acceleration possibilities.
Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the
issuance of notes for a total amount up to EUR 10 billion. In 2024, Philips issued EUR 700\u00a0million
fixed rate notes due 2032 under the EMTN program for general corporate purposes, including the
repayment of the 2025 EUR Bonds and floating rate debt. As of December\u00a031, 2024, Philips has
EUR 3.7 billion (2023: EUR 3.3 billion) fixed rates notes outstanding under the EMTN program. For
a description of Philips\u2019 credit facilities, refer to Debt.
In addition to cash and cash equivalents, as of December\u00a031, 2024, Philips also held EUR 4 million
(2023: EUR 14 million ) of listed (level 1) equity investments at fair value (classified as other non-
current financial assets).
The following table presents a summary of the Group\u2019s fixed contractual cash obligations and
commitments as of December\u00a031, 2024. These amounts are an estimate of future payments which
could change as a result of various factors such as a change in interest rates, foreign exchange, and
contractual provisions, as well as changes in business strategy and needs. Therefore, the actual
payments made in future periods may vary from those presented in the following table:
Philips Group
Contractual cash obligations1 2 in millions of EUR
Payments due by period
Total
Less than 1
year
1-3 years
3-5 years
After 5
years
Long-term debt
7,168
2,006
1,338
3,824
Short-term debt
525
525
Interest on debt
1,792
197
368
325
902
Derivative liabilities
72
64
8
Purchase obligations\u00b3
1,161
300
307
210
344
Trade and other payables
1,830
1,830
Contractual cash obligations
12,548
2,916
2,689
1,873
5,070
1Amounts in this table are undiscounted
2This 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.
3Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding
for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased,
fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not
include open purchase orders or other commitments which do not specify all significant terms.
Philips has contracts with investment funds where it committed itself to make, under certain
conditions, capital contributions to these funds of an aggregated remaining amount of EUR 130
million (2023: EUR 153 million). As of December\u00a031, 2024, capital contributions already made to
these investment funds are recorded as non-current financial assets.
Philips offers voluntary supply chain finance programs for certain US Dollar, Euro and Swedish
Krona third parties which provide participating suppliers the opportunity to factor their trade
receivables at the sole discretion of both the suppliers and the third parties. Philips continues to
recognize these liabilities as trade payables and settles them accordingly on the invoice maturity
date based on the terms and conditions of those arrangements. As of December 31, 2024,
approximately EUR 97 million (2023: EUR 114 million ) of the Philips account payable were
transferred under these arrangements.
Philips Group
Carrying amount of financial liabilities1 in millions of EUR
2024
Presented in accounts payables:
97
- of which suppliers have received payment from finance provider
85
Philips Group
Range of payment due dates
2024
Liabilities that are part of the arrangements
30 -135 days
Comparable trade payables that are not part of the arrangements
0 -135 days
1 There were no material business combinations or foreign exchange differences during the year.
With respect to the Respironics field action, please refer to Contingencies. The management
continues to monitor the risks associated with such potential claims and its impact on liquidity
position, if any.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-661": { "value": "
19Provisions
Accounting policies
A provision is a liability of uncertain timing or amount. Provisions are recognized if, as a result of a
past event, the company has a present legal or constructive obligation, it is probable that an
outflow of economic benefits will be required to settle the obligation and the amount can be
estimated reliably. Provisions are measured at the present value of the expenditures expected to be
required to settle the obligation using a pre-tax discount rate that reflects current market
assessments of the time value of money. The increase in the provision due to passage of time
(accretion) is recognized as interest expense.
Restructuring-related provisions
Provisions for severance and termination benefits are recognized for those costs only when the
company has a detailed formal plan for the restructuring and has raised a valid expectation with
those affected that it will carry out the restructuring by starting to implement that plan or
announcing its main features to those affected by it. Before a provision is established, the company
recognizes any impairment loss on the assets associated with the restructuring.
Accounting estimates and judgments
By their nature, the recognition of provisions requires estimates and assumptions regarding the
timing and the amount of outflow of resources. The main estimates include:
\u2022 Product warranty provisions \u2013 the provisions for assurance-type product warranty reflect the
estimated costs of replacement and free-of-charge services that will be incurred by the company
with respect to products sold and include costs to execute quality remediation and related field
actions (including the Respironics field action). These require management to make estimates
and assumptions about items such as quantities and the portion of products to be remediated
through replacement, repair or (partial) refund.
\u2022 Environmental provisions \u2013 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. The impact of climate change is also
considered when assessing whether Philips has a present legal or constructive obligation,
particularly in relation to fines, penalties and commitments to reduce greenhouse gas emissions.
\u2022 Legal provisions \u2013 provisions for legal claims and investigations reflect the best estimate of the
outflow of resources, supported by internal and external legal counsel, when it is probable that
such outflow of resources will be required to settle an obligation.
\u2022 Contingent consideration provisions \u2013 the provision for contingent consideration reflects the
fair value of the expected payment to former shareholders of an acquired company for the
exchange of control if specified future events occur or conditions are met, such as the
achievement of certain regulatory milestones or the achievement of certain commercial
milestones. The provision for contingent consideration can change significantly due to changes
in the estimated achievement of milestones and changes in discount rates. Changes in fair value
of the contingent consideration liability are reflected in other business income (expenses).
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Additions
81
439
9
131
1,015
5
185
1,865
Utilizations
(76)
(507)
(15)
(127)
(477)
(9)
(124)
(1,336)
Releases
(5)
(15)
-
(26)
(28)
(3)
(35)
(113)
Accretion
5
38
3
(1)
45
Changes in discount rate
(7)
-
(8)
Translation differences and other
2
(24)
4
(1)
44
3
(8)
21
Total change
3
(107)
(5)
(23)
592
(2)
16
474
Current
522
20
77
1,066
61
229
1,977
Non-current
560
63
76
16
13
52
216
996
Balance as of December 31, 2024
560
585
96
94
1,079
113
446
2,972
Philips Group
Provisions in millions of EUR
Post-employment
benefits
Product
\u00a0warranty
Environmental
Restructuring-
related
Legal
Contingent
consideration
Other
Total
Current
653
20
134
74
23
112
1,018
Non-current
546
80
83
6
14
89
279
1,097
Balance as of December 31, 2022
546
733
104
140
89
113
390
2,115
Additions
112
553
18
263
644
24
223
1,836
Utilizations
(91)
(553)
(14)
(219)
(235)
(20)
(134)
(1,266)
Releases
(10)
(20)
(2)
(67)
(10)
(7)
(45)
(159)
Accretion
5
23
1
(3)
25
Acquisitions
6
6
Changes in discount rate
(6)
(6)
Translation differences and other
-
(22)
(3)
(2)
(23)
(2)
(1)
(53)
Total change
12
(42)
(2)
(24)
399
2
39
383
Current
624
22
102
477
57
181
1,463
Non-current
558
67
80
14
10
58
248
1,035
Balance as of December 31, 2023
558
692
102
116
487
115
429
2,498
Post-employment benefits
For details of post-employment benefits refer to Post-employment benefits .
Product warranty provisions
Product warranty provisions include costs to execute quality remediation and related field actions,
as well as the field action provision in connection with the Philips Respironics voluntary recall
notification which is explained separately below. The company expects the provisions to be utilized
mainly within 2025.
Additions in 2024 include quality remediation and related field actions of EUR 137 million and EUR
139 million in the Diagnosis & Treatment and Connected Care segments, respectively, mainly for
the following matters:
Trilogy EVO and Trilogy EV300
In September 2024, Philips issued a field safety notice to customers of its Trilogy EVO and Trilogy
EV300 ventilators, regarding a potential contamination issue when the ventilator is used in
combination with in-line nebulizers. This notification was updated in November 2024 with
additional customer instructions. Philips is in the process of commencing the necessary remediation
actions.
Respironics field-action provision
On June 14, 2021, Philips subsidiary Philips Respironics initiated a voluntary recall notification in the
US and field safety notice outside the US for certain sleep and respiratory care products related to
the polyester-based polyurethane (PE-PUR) sound abatement foam in these devices. The
remediation is progressing globally. The total number of units expected to be remediated as of
December\u00a031, 2024 is 5.1 million (2023: 5.6 million) devices globally. The decrease in units is
mainly due to current insights regarding the number of units that are not expected to be returned
to Philips or where key data collection efforts to perform remediation have been exhausted.
Philips has recognized a provision based on Philips\u2019 best estimate of the costs to repair, replace or
refund devices, subject to the Respironics field action. The provision is related to the cost to repair,
replace or provide financial compensation for affected devices and includes, among others, the
costs for the remaining production, the cost of intensified communication with physicians and
patients, material costs, labor cost and logistics, as well as costs relating to financial compensation
provided to customers under the field action. The provision does not include any product liability
costs or other claims.
Philips Group
Respironics field-action provision in millions of EUR
2023
2024
Balance as of January 1
390
334
Additions
240
30
Utilizations
(285)
(220)
Translation differences and other
(10)
(14)
Balance as of December 31
334
130
Utilizations for the year reflect the costs incurred in executing the remediation during the year.
The completion of the field action continues to be subject to uncertainty, which requires
management to make estimates and assumptions about items such as quantities and the portion to
be replaced, repaired and subject to financial compensation. An increase in the assumption for the
financial compensation portion by 10 percentage points could have the effect of increasing the
provision by an estimated EUR 18 million. Actual outcomes in future periods may differ from these
estimates and affect the company\u2019s results of operations, financial position and cash flows.
Further to the above, field-action running remediation costs during the year of EUR 133 million
(2023: EUR 224 million, 2022: EUR 210 million ), such as testing, external advisory and regulatory
response and additional right-of-return and warranty provisions, have been incurred.
Philips and its affiliates are defendants in a number of consumer class action lawsuits from users of
the affected devices and a number of individual personal injury and other compensation claims. For
legal matters including claims refer to the legal provisions section of this note as well as
Contingencies.
Environmental provisions
The environmental provisions include accrued costs recorded with respect to environmental
remediation in various countries. In the US, subsidiaries of the company have been named as
potentially responsible parties in state and federal proceedings for the clean-up of certain sites.
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.
Approximately EUR 65 million of the long-term provision is expected to be utilized after one to five
years, with the remainder after five years. For more details on the environmental remediation refer
to Contingencies.
Restructuring-related provisions
Philips Group
Restructuring-related provisions\u00a0in millions of EUR
December 31, 2023
December 31, 2024
Diagnosis & Treatment
36
34
Connected Care
18
19
Personal Health
7
15
Other
56
26
Philips Group
116
94
In 2024, the most significant restructuring projects impacted segments Other and Connected Care
and mainly took place in the US and the Netherlands. 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.
In 2024, Philips continued general productivity actions aimed at simplifying the organization as part
of its multi-year plan designed to create value with sustainable impact. This included the further
reduction of 2,000 roles, thereby completing the planned reduction of 10,000 roles globally across
the organization by 2025 ahead of schedule. Severance and termination-related costs of EUR 140
million were recorded in 2023.
Legal provisions
The company and certain of its group companies and former group companies are involved as a
party in legal proceedings, including regulatory and other governmental proceedings.
Additions mainly relate to the legal provision in connection with the settlement of Respironics
personal injury and medical monitoring claims in the US of EUR 982 million (discounted). Under the
settlement Philips Respironics has agreed to pay a total of USD 1.1 billion. Most of the related
payments are expected in 2025. In the first half of 2024 Philips Respironics recorded insurance
income of EUR 538 million in connection with the agreement with insurers to partially reimburse
the Respironics recall related product liability claims. This amount was paid in full to the company in
2024.
Utilizations of EUR 477 million mainly relate to the economic loss class action settlement in the US
that was paid in 2024.
For details of other legal matters, including regulatory and other governmental proceedings, refer
to Contingencies .
The company expects the provisions to be utilized mainly within the next three years.
Contingent consideration provisions
There is no material movement in 2024 and approximately EUR 21 million of the long-term
provision is expected to be utilized within the next three years, with the remainder after four years.
Other provisions
The main elements of other provisions are:
Philips Group
Other provisions in millions of EUR unless otherwise stated
2023
2024
Other long-term employee benefits
77
80
Self-insurance
63
60
Non-income taxes / social security
51
48
Rights of return
39
44
Decommissioning costs
34
37
Onerous contracts
76
66
Remaining
89
111
Balance as of December 31
429
446
Onerous contracts reflect non-cancellable commitments on supplies for which no future demand or
alternative usage has been identified.
Remaining provisions relate to a variety of positions, for example provision for disability of
employees and provision for royalty obligations.
Releases in 2023 and 2024 are due to the reassessment of the positions in other provisions
throughout the year.
The company expects the other provisions to be utilized mainly within the next five years.
24Contingencies
Accounting policies
Contingent liabilities
A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized
in the balance sheet because they are dependent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the company or because the risk of
loss is estimated to be possible but not probable or because the amount cannot be measured
reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain
information is not disclosed for legal proceedings for which the company concludes that disclosure
can be expected to seriously prejudice the outcome of the matter.
Contingent assets
Contingent assets are disclosed if the inflow of economic benefits is probable, but not virtually
certain. If the inflow of economic benefits becomes virtually certain, the asset would no longer be
contingent and its recognition appropriate.
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.
Accounting estimates and judgments
Significant judgment is required to determine the likelihood of a potential outflow of resources. In
addition, judgment is involved in determining whether the amount of an obligation can be
measured with sufficient reliability. Contingencies involve inherent uncertainties including, but not
limited to, court rulings, negotiations between affected parties, governmental actions, tax and
environmental remediation. Contingent assets require management to apply judgment, especially
to estimate the likelihood of the inflow of economic benefits and timing of recognition.
Guarantees
The total fair value of guarantees recognized on the balance sheet amounts to EUR nil million for
both 2024 and 2023 . Remaining off-balance-sheet business related guarantees on behalf of third
parties and associates as of December\u00a031, 2024, amounted to EUR 343 million (December\u00a031,
2023 : EUR 2 million ). These mainly include bank guarantees secured for insurance companies to
cover product liability-related cash flows related to the Respironics recall.
Environmental remediation
The company and its subsidiaries are subject to environmental laws and regulations. Under these
laws, the company and/or its subsidiaries may be required to remediate the effects of certain
manufacturing activities on the environment.
Legal proceedings
The company and certain of its group companies and former group companies are involved as a
party in legal proceedings, regulatory and other governmental proceedings, including discussions
on potential remedial actions, relating to such matters as competition issues, commercial
transactions, product liability, participations, and environmental pollution.
While it is not feasible to predict or determine the outcome of all pending or threatened legal
proceedings, regulatory and governmental proceedings, the company is of the opinion that the
cases described below may have, or have had in the recent past, a significant impact on the
company\u2019s consolidated financial position, results of operations and cash flows.
Public investigations
In February 2023, the company received a statement of objections from the French Competition
Authority (FCA) initiating a formal investigation to verify whether the company and certain other
manufacturers of small domestic appliances breached antitrust rules in France in the period
2009-2014 through the alleged exchange of commercially sensitive information. The FCA issued its
decision in December 2024, in which it closed the case by concluding that the company did not
violate antitrust rules in France.
Respironics recall
On June 14, 2021, Philips subsidiary Philips RS North America LLC (Philips Respironics) issued a
voluntary recall notification in the United States and field safety notice outside the United States for
specific Philips Respironics CPAP, Bi-Level PAP, and mechanical ventilator devices (the \u201cRecalled
Devices\u201d).
Consent Decree
On August 26, 2021, the US Food and Drug Administration (FDA) commenced an inspection of the
Philips Respironics manufacturing facility in Murrysville, Pennsylvania, and provided Philips
Respironics with its preliminary inspectional observations on November 9, 2021. In the first half of
2024, Philips Respironics reached an agreement with the US Department of Justice (DoJ), acting on
behalf of the FDA, regarding the terms of a consent decree to resolve the identified issues in
relation to the inspection. The consent decree was entered by the court in April 2024.
DOJ investigation; state Attorneys General investigation
Philips Respironics and certain of Philips' subsidiaries in the US continue to cooperate with a
criminal and civil investigation triggered by a subpoena received from the DOJ in 2022 to provide
information related to events leading to the Respironics recall. In addition, the same entities are
cooperating with an investigation initiated in 2024 by certain US state Attorneys General into trade
practices related to the products subject of the Respironics recall. While the outflow of economic
resources in connection with these investigations is assessed as probable, given the current stage of
the investigations, the company is not able to reliably estimate the financial impact.
Product liability claims
Following the voluntary recall notification, a number of civil complaints have been filed in several
jurisdictions against Philips Respironics and certain of its affiliates (including the company) generally
alleging economic loss, personal injury and/or the potential for personal injury allegedly caused by
the recalled devices.
In the US, consumer and commercial class action lawsuits have been filed alleging economic loss
and medical monitoring claims. Individual personal injury lawsuits have also been filed. On October
8, 2021, a Multi-District Litigation (MDL) in the US District Court for the Western District of
Pennsylvania was formed, and most of these class action and personal injury lawsuits have been
consolidated in the MDL for pre-trial proceedings.
On September 7, 2023, Philips Respironics reached agreement on a class action settlement in
relation to the economic loss class action complaint, for which the company recorded a EUR 575
million provision in the first quarter of 2023. Under the agreement, which became final in May
2024, the Philips defendants agreed to provide predefined cash awards to all eligible participants in
the US depending on the type of device, extended warranties on all remediated devices provided as
part of Respironics\u2019 recall program, and an additional cash award if they return the recalled device
to Philips Respironics. The settlement also provides for compensation for individuals who acquired
replacement devices in the market after the recall and prior to the announcement of the
settlement. The settlement also provides for compensation to private insurers and other third-party
payers. The claims period concluded on August 9, 2024, and since then, the Claims Administrator
has been processing claims, calculating relevant payment amounts, and making payments to
eligible class members.
On May 9, 2024, Philips Respironics reached agreement on a class action settlement in relation to
the medical monitoring class action complaint. Under the agreement, which became final in
January 2025, the Philips defendants agreed to pay USD 25 million into a Qualified Settlement
Fund for the benefit of eligible class members. The USD 25 million amount is a fixed cap on the
amount of the settlement and will be used to fund, among other things, research related to the
advancement of public knowledge regarding the detection, diagnosis, and treatment of those
injuries alleged to have been caused by use of the recalled devices.
Also on May 9, 2024, Philips Respironics reached agreement on a private settlement in relation to
US personal injury claims. Under the agreement, the Philips defendants have agreed (subject to a
termination right) to pay USD 1.075 billion to consist of USD 25 million in notice and administrative
costs and USD 1.050 billion into a Personal Injury Settlement Fund. The settlement is an opt-in
agreement, by which eligible claimants would release all of their personal injury claims in exchange
for participation in the Personal Injury Settlement Fund. To participate in the settlement, an eligible
claimant must have experienced a qualifying injury. The Philips parties had the right to terminate
the settlement if less than 95% of eligible claimants would register for the settlement by the
registration deadline on January 31, 2025. As at the registration deadline registrations exceeded
95%, the settlement has now become final with payment expected in the first half of 2025. For
any individuals who declined to participate in, or are ineligible for, the settlement, and who wish to
litigate their personal injury claims, they will need to identify themselves after the registration
deadline and then comply with court orders imposing certain discovery obligations on them,
including with respect to early disclosure of their evidence on causation.
Philips Respironics and certain of its affiliates (including the company) continue to be defendants in
consumer class action lawsuits in Australia, Canada and Israel and collective or group actions in
Chile, France, Germany, Italy and the Netherlands alleging economic loss and/or personal injury.
While the company believes it is probable that ongoing lawsuits will in the aggregate lead to an
outflow of economic resources for Philips Respironics or other Philips entities, given the significant
uncertainty regarding the nature of the relevant events and potential obligations, the company is
not currently able to reliably estimate the amount of the obligation associated with these various
lawsuits. The final outcome of the lawsuits and the remaining cost to resolve them cannot currently
be determined due to a number of variables, including the early stages of some of these
proceedings and uncertainty regarding the number of remaining claimants, their allegations, and
their alleged injuries. The courts have not yet been asked to decide the question of whether any of
the claimed injuries could have been caused by use of the recalled devices.
In 2024, the company and its insurance carriers reached an agreement on the basis of which the
insurance carriers agreed to contribute EUR 540 million to cover product liability-related cash flows
related to the Respironics recall. This amount was paid in full to the company in 2024.
Securities claims
On August 16, 2021, a securities class action complaint was filed against the company, its former
CEO and its former CFO in the US District Court for the Eastern District of New York alleging
violations of the Securities Exchange Act of 1934 causing damage to investors. On September 23,
2024, following amendments to the complaint, the court issued a decision dismissing all claims
against the company\u2019s former CFO and the former head of Philips Respironics but denying in part
the motion to dismiss with respect to the company and its former CEO. The Court narrowed the
class period and dismissed all claims based on statements made before 2018. The Court also
dismissed all claims relating to certain categories of alleged misstatements. On October 28, 2024,
the company and its former CEO moved for reconsideration of that portion of the decision denying
their motion, and that motion was pending as of December 31, 2024.
In the Netherlands, six different parties (including European Investors \u2013 VEB and Deminor Litigation
Funding) representing both retail and institutional investors have approached the company, holding
the company and its directors liable for alleged misstatements and failures to make timely
disclosures in relation to the Respironics recall. As of December 31, 2024, one party has filed a civil
complaint with the Amsterdam District Court.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. An adverse outcome of these cases could have a material impact on the company\u2019s
consolidated financial position, results of operations and cash flows.
SEC investigation
Following earlier requests for information from the US Securities and Exchange Commission (SEC),
in March 2024, the company received a subpoena from the SEC relating to the Respironics Recall
and compliance with relevant securities laws. The investigation is not an indication that the SEC or
its staff have determined that any violations of law have occurred. The company is fully cooperating
with the investigation.It is the company's assessment that it is possible but not probable that this
investigation could lead to certain outflow of resources. The company is not able to reliably
estimate the financial impact, if any.
Other claims
On October 12, 2021, SoClean, a company offering ozone-based cleaning products for sleep
devices, filed a lawsuit in the US against the company and certain of its affiliates alleging that the
defendants\u2019 statements about the potential adverse effect ozone cleaning may have on the recalled
devices has significantly damaged its business. Philips believes that the claim is without merit and
will vigorously defend itself. In November 2023, the court ruled on one of the motions to dismiss
filed by defendants and partially dismissed some of SoClean\u2019s claims. On January 4, 2024, Philips
and its affiliates filed their answer and counterclaims against SoClean and one of its affiliates. In
October 2024, the court partially dismissed some of the counterclaims. Philips and its affiliates are
also pursuing claims against SoClean and one of its affiliates for contribution for personal injury
settlement costs and/or personal injury liability incurred by the company or its affiliates. SoClean
and its affiliate have sought to dismiss those claims, but the court has not yet reached a decision.
In addition, some of Philips Respironics\u2019 business partners, such as distributors and durable medical
equipment providers, have filed or threatened to file claims alleging economic losses suffered as a
consequence of the voluntary recall. Philips Respironics is engaging with certain of its business
partners on the level of compensation they allege to be entitled to under Philips Respironics\u2019
replacement program of the recalled devices. As of December 31, 2024, most of these claims have
been resolved.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. In the event of an adverse outcome, these matters could have a material impact on
the company\u2019s consolidated financial position, results of operations and cash flows.
To date, other than for the economic loss, medical monitoring and personal injury settlements
discussed above, no provisions have been recorded for the litigation and investigations in the US
and Canada associated with the Respironics field action.
Other
In the second half of 2023, Electro Medical Systems S.A., a manufacturer of, among others,
medical devices for dental prophylaxis, filed a lawsuit against the company alleging that the
company materially breached its duties under a cooperation agreement entered into between the
parties in 2016, claiming damages in excess of EUR 300 million, alleging loss of profit and lost
increase in brand value. Philips disagrees with the allegations and has submitted its statement of
defense in June 2024. The first Court hearing is expected to take place in the first half of 2025.
Miscellaneous
For details on other contractual obligations, please refer to liquidity risk in Details of treasury and
other financial risks.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-662": { "value": "
19Provisions
Accounting policies
A provision is a liability of uncertain timing or amount. Provisions are recognized if, as a result of a
past event, the company has a present legal or constructive obligation, it is probable that an
outflow of economic benefits will be required to settle the obligation and the amount can be
estimated reliably. Provisions are measured at the present value of the expenditures expected to be
required to settle the obligation using a pre-tax discount rate that reflects current market
assessments of the time value of money. The increase in the provision due to passage of time
(accretion) is recognized as interest expense.
Restructuring-related provisions
Provisions for severance and termination benefits are recognized for those costs only when the
company has a detailed formal plan for the restructuring and has raised a valid expectation with
those affected that it will carry out the restructuring by starting to implement that plan or
announcing its main features to those affected by it. Before a provision is established, the company
recognizes any impairment loss on the assets associated with the restructuring.
20Post-employment benefits
Accounting policies
Defined benefit plans
A defined benefit plan is a post-employment benefit plan that is not a defined contribution plan.
Defined benefit plans define an amount of pension benefit that an employee will receive after
retirement. That pension benefit typically depends on several factors such as years of service, age
and salary.
The net pension asset or liability recognized in the Consolidated balance sheets in respect of
defined benefit plans is the fair value of plan assets less the present value of the projected defined
benefit obligation at the balance sheet 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\u2019s major plans, a full discount rate curve of high-quality corporate bonds is used to
determine the defined benefit obligation, where available. The curves are based on the Mercer
Yield Curve methodology, which uses data of corporate bonds rated AA or equivalent. For the
other plans the Mercer Yield Curve/Mercer Methodology has also been used taking into account
the cash flows as much as possible in case there is a deep market in corporate bonds. For plans in
countries without a deep corporate bond market, the discount rate is based on government bonds
and the plan\u2019s maturity.
Pension costs with respect to defined benefit plans primarily represent the increase of the actuarial
present value of the obligation for post-employment benefits based on employee service during the
year and the interest on the net recognized asset or liability with respect to employee service in
previous years.
Remeasurements of the net defined benefit asset or liability comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The
company recognizes all remeasurements in Other comprehensive income.
Past service costs arising from the introduction of a change to the benefit payable under a plan or a
significant reduction of the number of employees covered by a plan (curtailment) are recognized in
full in the Consolidated statements of income.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided. The company recognizes a liability and an expense for bonuses
and incentives based on a formula that takes into consideration the profit attributable to the
company\u2019s shareholders after certain adjustments.
The company\u2019s net obligation with respect to other long-term employee benefits is the amount of
future benefit that employees have earned in return for their service in the current and prior
periods, such as jubilee entitlements. That benefit is discounted to determine its present value.
Remeasurements are recognized in the Consolidated statements of income in the period in which
they arise.
Further information on other long-term employee benefits can be found in Provisions in the Other
provisions section.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-663": { "value": "
19Provisions
Accounting policies
Restructuring-related provisions
Provisions for severance and termination benefits are recognized for those costs only when the
company has a detailed formal plan for the restructuring and has raised a valid expectation with
those affected that it will carry out the restructuring by starting to implement that plan or
announcing its main features to those affected by it. Before a provision is established, the company
recognizes any impairment loss on the assets associated with the restructuring.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-664": { "value": "
20Post-employment benefits
Accounting policies
Defined contribution plans
A defined contribution plan is a post-employment benefit plan for which the company pays fixed
contributions into a separate entity and will have no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution pension plans are recognized as an
employee benefit expense in the Consolidated statements of income in the periods during which
services are rendered by employees.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan that is not a defined contribution plan.
Defined benefit plans define an amount of pension benefit that an employee will receive after
retirement. That pension benefit typically depends on several factors such as years of service, age
and salary.
The net pension asset or liability recognized in the Consolidated balance sheets in respect of
defined benefit plans is the fair value of plan assets less the present value of the projected defined
benefit obligation at the balance sheet 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\u2019s major plans, a full discount rate curve of high-quality corporate bonds is used to
determine the defined benefit obligation, where available. The curves are based on the Mercer
Yield Curve methodology, which uses data of corporate bonds rated AA or equivalent. For the
other plans the Mercer Yield Curve/Mercer Methodology has also been used taking into account
the cash flows as much as possible in case there is a deep market in corporate bonds. For plans in
countries without a deep corporate bond market, the discount rate is based on government bonds
and the plan\u2019s maturity.
Pension costs with respect to defined benefit plans primarily represent the increase of the actuarial
present value of the obligation for post-employment benefits based on employee service during the
year and the interest on the net recognized asset or liability with respect to employee service in
previous years.
Remeasurements of the net defined benefit asset or liability comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest). The
company recognizes all remeasurements in Other comprehensive income.
Past service costs arising from the introduction of a change to the benefit payable under a plan or a
significant reduction of the number of employees covered by a plan (curtailment) are recognized in
full in the Consolidated statements of income.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided. The company recognizes a liability and an expense for bonuses
and incentives based on a formula that takes into consideration the profit attributable to the
company\u2019s shareholders after certain adjustments.
The company\u2019s net obligation with respect to other long-term employee benefits is the amount of
future benefit that employees have earned in return for their service in the current and prior
periods, such as jubilee entitlements. That benefit is discounted to determine its present value.
Remeasurements are recognized in the Consolidated statements of income in the period in which
they arise.
Further information on other long-term employee benefits can be found in Provisions in the Other
provisions section.
26Share-based compensation
Accounting policies
Philips share-based compensation is an equity-settled plan made of restricted and performance
shares. The restricted shares are subject to a three -year service condition and the performance
shares include both market and non-market-based performance conditions, in addition to a three -
year service condition. These shares are awarded to the Executive Committee and senior
management.
The grant date fair value of market-based performance shares is determined through a Monte
Carlo valuation model. The grant date fair value of non-market-based performance shares and
restricted shares is determined as the share price at the grant date as participants receive notional
dividends throughout the vesting period. The costs of share-based compensation plans are revised
for expected performance (non-market-based performance shares) and forfeiture and are spread
evenly over the service period.
Share-based compensation is recognized over the service period as personnel expense in the
consolidated statement of income, with a corresponding increase to equity.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-665": { "value": "
21Accrued liabilities
Accounting policies
Accrued liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
Accrued liabilities are summarized as follows:
Philips Group
Accrued liabilities in millions of EUR
2023
2024
Personnel-related costs:
- Salaries and wages
791
601
- Accrued holiday entitlements
96
95
- Other personnel-related costs
93
101
Fixed-asset-related costs:
- Gas, water, electricity, rent and other
43
41
Communication and IT costs
61
55
Distribution costs
99
95
Sales-related costs:
- Commission payable
12
16
- Advertising and marketing-related costs
133
120
- Other sales-related costs
20
15
Material-related costs
138
124
Interest-related accruals
76
83
Other accrued liabilities
324
283
Accrued liabilities
1,887
1,630
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
Other non-current liabilities
Non-current liabilities were EUR 45 million as of December\u00a031, 2024 ( December\u00a031, 2023 : EUR 54
million ).
Non-current liabilities are associated mainly with indemnification and non-current accruals.
Other current liabilities
Other current liabilities are summarized as follows:
Philips Group
Other current liabilities in millions of EUR
2023
2024
Accrued customer rebates
186
169
Other taxes including social security premiums
129
115
Other liabilities
98
70
Other current liabilities
414
354
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-669": { "value": "
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
Other non-current liabilities
Non-current liabilities were EUR 45 million as of December\u00a031, 2024 ( December\u00a031, 2023 : EUR 54
million ).
Non-current liabilities are associated mainly with indemnification and non-current accruals.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-667": { "value": "
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
Other non-current liabilities
Non-current liabilities were EUR 45 million as of December\u00a031, 2024 ( December\u00a031, 2023 : EUR 54
million ).
Non-current liabilities are associated mainly with indemnification and non-current accruals.
Other current liabilities
Other current liabilities are summarized as follows:
Philips Group
Other current liabilities in millions of EUR
2023
2024
Accrued customer rebates
186
169
Other taxes including social security premiums
129
115
Other liabilities
98
70
Other current liabilities
414
354
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-666": { "value": "
22Other liabilities
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are
derecognized when the obligation under the liability is discharged, cancelled or has expired.
Other current liabilities
Other current liabilities are summarized as follows:
Philips Group
Other current liabilities in millions of EUR
2023
2024
Accrued customer rebates
186
169
Other taxes including social security premiums
129
115
Other liabilities
98
70
Other current liabilities
414
354
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-668": { "value": "
22Other liabilities
Accounting policies
The company recognizes contract liabilities if a payment is received or a payment is due (whichever
is earlier) from a customer before the company transfers the related goods or services. Contract
liabilities are recognized as revenue when the company performs under the contract (i.e., transfers
control of the related goods or services to the customer).
Contract liabilities
Non-current contract liabilities were EUR 431 million as of December\u00a031, 2024 ( December\u00a031,
2023: EUR 469 million ) and current contract liabilities were EUR 1,699 million as of December\u00a031,
2024 ( December\u00a031, 2023 : EUR 1,809 million).
The current contract liabilities decreased by EUR 109 million , which is mainly driven by an decrease
in deferred balances for customer service contracts.
The current contract liabilities as of December\u00a031, 2023, resulted in revenue recognized of EUR
1,809 million in 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-671": { "value": "
23Cash flow statement supplementary information
Accounting policies
Cash and cash equivalents
Cash and cash equivalents include all cash balances, certain money market funds and short-term
highly liquid investments with an original maturity of three months or less that are readily
convertible into known amounts of cash. Bank overdrafts are included in borrowings in current
liabilities.
Cash flow statements
The cash flow statement is prepared using the indirect method. Cash flows related to interest and
tax are included in operating activities. Assets and liabilities acquired as part of a business
combination are included in investing activities (net of cash acquired). Dividends paid to
shareholders are included in financing activities. Dividends received are included in operating
activities.
Cash flows arising from transactions in a foreign currency are translated into the company\u2019s
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.
Income taxes
Income taxes in 2023 include EUR 2 million of interest related to uncertain tax positions.
Cash paid for leases
In 2024, gross lease payments of EUR 252 million ( 2023 : EUR 271 million ; 2022: EUR 316 million )
included interest of EUR 37 million (2023: EUR 27 million ; 2022 : EUR 25 million).
Net cash used for derivatives and current financial assets
In 2024 , a total of EUR 38 million cash was received with respect to foreign exchange derivative
contracts related to activities for liquidity management and with respect to the purchase and
proceeds from current financial assets (2023 : EUR 46 million outflow; 2022 : EUR 72 million
outflow)
Purchase and proceeds from non-current financial assets
In 2024 , the net cash outflow is EUR 66 million. In 2023, the net cash outflow is EUR 44 million . In
2022, the net cash outflow is EUR 38 million.
Reconciliation of liabilities arising from financing activities
Certain items in the statements of cash flows do not correspond to the differences between the
balance sheet amounts for the respective items, principally because of the effects of translation
differences and consolidation changes.
Philips Group
Reconciliation of liabilities arising from financing activities in millions of EUR
Balance as of
December 31,
2023
Cash flow
Currency
effects and
consolidation
changes
Other\u00b9
Balance as of
December
31, 2024
Long term debt\u00b2
7,567
(53)
107
(74)
7,546
EUR bonds
4,569
340
8
4,917
USD bonds
1,325
83
1,408
Leases
1,074
(192)
24
167
1,073
Forward contracts\u00b3
396
(248)
148
Bank borrowings
203
(201)
(1)
1
Other long-term debt
Short term debt\u00b2
122
(30)
1
92
Short-term bank borrowings
122
(31)
1
92
Other short-term loans
-
1
1
Equity
(656)
(413)
516
(554)
Dividend payable
(3)
3
-
Forward contracts\u00b3
(394)
251
(143)
Treasury shares\u2074
(262)
(410)
262
(411)
Total
(496)
1 Besides non-cash, other includes interest paid on leases, which is part of cash flows from operating
activities
2 In this table, current portion of long-term debt is included in long-term debt (and excluded from short-term
debt).
3 The forward contracts are related to the share buyback program and LTI plans
4 Cash flow in 2024 includes withholding tax for share buyback amounting to EUR 41 million.
Philips Group
Reconciliation of liabilities arising from financing activities in millions of EUR
Balance as of
December 31,
2022
Cash flow
Currency
effects and
consolidation
changes
Other\u00b9
Balance as of
December 31,
2023
Long term debt\u00b2
8,111
(210)
(96)
(238)
7,567
EUR bonds
4,061
497
11
4,569
USD bonds
1,378
(53)
1,325
Leases
1,082
(200)
(42)
235
1,074
Forward contracts\u00b3
858
(462)
396
Bank borrowings
705
(502)
203
Other long-term debt
28
(5)
(1)
(22)
Short term debt\u00b2
89
29
3
122
Short-term bank borrowings
89
46
(14)
122
Other short-term loans
(17)
17
-
Equity
(1,133)
(666)
1,143
(656)
Dividend payable
(4)
4
Forward contracts\u00b3
(858)
465
(394)
Treasury shares
(275)
(662)
675
(262)
Total
(848)
1 Besides non-cash, other includes interest paid on finance leases, which is part of cash flows from operating
activities
2 In this table, current portion of long-term debt is included in long-term debt (and excluded from short-term
debt).
3 The forward contracts are related to the share buyback program and LTI plans
4 Cash flow in 2023 includes withholding tax for share buyback amounting to EUR 55 million .
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-672": { "value": "
23Cash flow statement supplementary information
Accounting policies
Cash and cash equivalents
Cash and cash equivalents include all cash balances, certain money market funds and short-term
highly liquid investments with an original maturity of three months or less that are readily
convertible into known amounts of cash. Bank overdrafts are included in borrowings in current
liabilities.
29Details of treasury and other financial risks
The rating of the company\u2019s debt by major rating agencies may improve or deteriorate. As a result,
Philips\u2019 future borrowing capacity may be influenced and its financing costs may fluctuate. Philips
has various sources to mitigate the liquidity risk for the group. As of December\u00a031, 2024 Philips had
EUR 2,401 million in cash and cash equivalents ( 2023 : EUR 1,869 million ), which includes short-
term deposits of EUR 1,946 million ( 2023 : EUR 1,399 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\u2019s operational or investment needs.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-673": { "value": "
23Cash flow statement supplementary information
Accounting policies
Cash and cash equivalents
Cash and cash equivalents include all cash balances, certain money market funds and short-term
highly liquid investments with an original maturity of three months or less that are readily
convertible into known amounts of cash. Bank overdrafts are included in borrowings in current
liabilities.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-670": { "value": "
23Cash flow statement supplementary information
Accounting policies
Cash flow statements
The cash flow statement is prepared using the indirect method. Cash flows related to interest and
tax are included in operating activities. Assets and liabilities acquired as part of a business
combination are included in investing activities (net of cash acquired). Dividends paid to
shareholders are included in financing activities. Dividends received are included in operating
activities.
Cash flows arising from transactions in a foreign currency are translated into the company\u2019s
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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-676": { "value": "
24Contingencies
Accounting policies
Contingent liabilities
A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized
in the balance sheet because they are dependent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the company or because the risk of
loss is estimated to be possible but not probable or because the amount cannot be measured
reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain
information is not disclosed for legal proceedings for which the company concludes that disclosure
can be expected to seriously prejudice the outcome of the matter.
Contingent assets
Contingent assets are disclosed if the inflow of economic benefits is probable, but not virtually
certain. If the inflow of economic benefits becomes virtually certain, the asset would no longer be
contingent and its recognition appropriate.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-675": { "value": "
24Contingencies
Accounting policies
Contingent liabilities
A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized
in the balance sheet because they are dependent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the company or because the risk of
loss is estimated to be possible but not probable or because the amount cannot be measured
reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain
information is not disclosed for legal proceedings for which the company concludes that disclosure
can be expected to seriously prejudice the outcome of the matter.
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.
Accounting estimates and judgments
Significant judgment is required to determine the likelihood of a potential outflow of resources. In
addition, judgment is involved in determining whether the amount of an obligation can be
measured with sufficient reliability. Contingencies involve inherent uncertainties including, but not
limited to, court rulings, negotiations between affected parties, governmental actions, tax and
environmental remediation. Contingent assets require management to apply judgment, especially
to estimate the likelihood of the inflow of economic benefits and timing of recognition.
Guarantees
The total fair value of guarantees recognized on the balance sheet amounts to EUR nil million for
both 2024 and 2023 . Remaining off-balance-sheet business related guarantees on behalf of third
parties and associates as of December\u00a031, 2024, amounted to EUR 343 million (December\u00a031,
2023 : EUR 2 million ). These mainly include bank guarantees secured for insurance companies to
cover product liability-related cash flows related to the Respironics recall.
Environmental remediation
The company and its subsidiaries are subject to environmental laws and regulations. Under these
laws, the company and/or its subsidiaries may be required to remediate the effects of certain
manufacturing activities on the environment.
Legal proceedings
The company and certain of its group companies and former group companies are involved as a
party in legal proceedings, regulatory and other governmental proceedings, including discussions
on potential remedial actions, relating to such matters as competition issues, commercial
transactions, product liability, participations, and environmental pollution.
While it is not feasible to predict or determine the outcome of all pending or threatened legal
proceedings, regulatory and governmental proceedings, the company is of the opinion that the
cases described below may have, or have had in the recent past, a significant impact on the
company\u2019s consolidated financial position, results of operations and cash flows.
Public investigations
In February 2023, the company received a statement of objections from the French Competition
Authority (FCA) initiating a formal investigation to verify whether the company and certain other
manufacturers of small domestic appliances breached antitrust rules in France in the period
2009-2014 through the alleged exchange of commercially sensitive information. The FCA issued its
decision in December 2024, in which it closed the case by concluding that the company did not
violate antitrust rules in France.
Respironics recall
On June 14, 2021, Philips subsidiary Philips RS North America LLC (Philips Respironics) issued a
voluntary recall notification in the United States and field safety notice outside the United States for
specific Philips Respironics CPAP, Bi-Level PAP, and mechanical ventilator devices (the \u201cRecalled
Devices\u201d).
Consent Decree
On August 26, 2021, the US Food and Drug Administration (FDA) commenced an inspection of the
Philips Respironics manufacturing facility in Murrysville, Pennsylvania, and provided Philips
Respironics with its preliminary inspectional observations on November 9, 2021. In the first half of
2024, Philips Respironics reached an agreement with the US Department of Justice (DoJ), acting on
behalf of the FDA, regarding the terms of a consent decree to resolve the identified issues in
relation to the inspection. The consent decree was entered by the court in April 2024.
DOJ investigation; state Attorneys General investigation
Philips Respironics and certain of Philips' subsidiaries in the US continue to cooperate with a
criminal and civil investigation triggered by a subpoena received from the DOJ in 2022 to provide
information related to events leading to the Respironics recall. In addition, the same entities are
cooperating with an investigation initiated in 2024 by certain US state Attorneys General into trade
practices related to the products subject of the Respironics recall. While the outflow of economic
resources in connection with these investigations is assessed as probable, given the current stage of
the investigations, the company is not able to reliably estimate the financial impact.
Product liability claims
Following the voluntary recall notification, a number of civil complaints have been filed in several
jurisdictions against Philips Respironics and certain of its affiliates (including the company) generally
alleging economic loss, personal injury and/or the potential for personal injury allegedly caused by
the recalled devices.
In the US, consumer and commercial class action lawsuits have been filed alleging economic loss
and medical monitoring claims. Individual personal injury lawsuits have also been filed. On October
8, 2021, a Multi-District Litigation (MDL) in the US District Court for the Western District of
Pennsylvania was formed, and most of these class action and personal injury lawsuits have been
consolidated in the MDL for pre-trial proceedings.
On September 7, 2023, Philips Respironics reached agreement on a class action settlement in
relation to the economic loss class action complaint, for which the company recorded a EUR 575
million provision in the first quarter of 2023. Under the agreement, which became final in May
2024, the Philips defendants agreed to provide predefined cash awards to all eligible participants in
the US depending on the type of device, extended warranties on all remediated devices provided as
part of Respironics\u2019 recall program, and an additional cash award if they return the recalled device
to Philips Respironics. The settlement also provides for compensation for individuals who acquired
replacement devices in the market after the recall and prior to the announcement of the
settlement. The settlement also provides for compensation to private insurers and other third-party
payers. The claims period concluded on August 9, 2024, and since then, the Claims Administrator
has been processing claims, calculating relevant payment amounts, and making payments to
eligible class members.
On May 9, 2024, Philips Respironics reached agreement on a class action settlement in relation to
the medical monitoring class action complaint. Under the agreement, which became final in
January 2025, the Philips defendants agreed to pay USD 25 million into a Qualified Settlement
Fund for the benefit of eligible class members. The USD 25 million amount is a fixed cap on the
amount of the settlement and will be used to fund, among other things, research related to the
advancement of public knowledge regarding the detection, diagnosis, and treatment of those
injuries alleged to have been caused by use of the recalled devices.
Also on May 9, 2024, Philips Respironics reached agreement on a private settlement in relation to
US personal injury claims. Under the agreement, the Philips defendants have agreed (subject to a
termination right) to pay USD 1.075 billion to consist of USD 25 million in notice and administrative
costs and USD 1.050 billion into a Personal Injury Settlement Fund. The settlement is an opt-in
agreement, by which eligible claimants would release all of their personal injury claims in exchange
for participation in the Personal Injury Settlement Fund. To participate in the settlement, an eligible
claimant must have experienced a qualifying injury. The Philips parties had the right to terminate
the settlement if less than 95% of eligible claimants would register for the settlement by the
registration deadline on January 31, 2025. As at the registration deadline registrations exceeded
95%, the settlement has now become final with payment expected in the first half of 2025. For
any individuals who declined to participate in, or are ineligible for, the settlement, and who wish to
litigate their personal injury claims, they will need to identify themselves after the registration
deadline and then comply with court orders imposing certain discovery obligations on them,
including with respect to early disclosure of their evidence on causation.
Philips Respironics and certain of its affiliates (including the company) continue to be defendants in
consumer class action lawsuits in Australia, Canada and Israel and collective or group actions in
Chile, France, Germany, Italy and the Netherlands alleging economic loss and/or personal injury.
While the company believes it is probable that ongoing lawsuits will in the aggregate lead to an
outflow of economic resources for Philips Respironics or other Philips entities, given the significant
uncertainty regarding the nature of the relevant events and potential obligations, the company is
not currently able to reliably estimate the amount of the obligation associated with these various
lawsuits. The final outcome of the lawsuits and the remaining cost to resolve them cannot currently
be determined due to a number of variables, including the early stages of some of these
proceedings and uncertainty regarding the number of remaining claimants, their allegations, and
their alleged injuries. The courts have not yet been asked to decide the question of whether any of
the claimed injuries could have been caused by use of the recalled devices.
In 2024, the company and its insurance carriers reached an agreement on the basis of which the
insurance carriers agreed to contribute EUR 540 million to cover product liability-related cash flows
related to the Respironics recall. This amount was paid in full to the company in 2024.
Securities claims
On August 16, 2021, a securities class action complaint was filed against the company, its former
CEO and its former CFO in the US District Court for the Eastern District of New York alleging
violations of the Securities Exchange Act of 1934 causing damage to investors. On September 23,
2024, following amendments to the complaint, the court issued a decision dismissing all claims
against the company\u2019s former CFO and the former head of Philips Respironics but denying in part
the motion to dismiss with respect to the company and its former CEO. The Court narrowed the
class period and dismissed all claims based on statements made before 2018. The Court also
dismissed all claims relating to certain categories of alleged misstatements. On October 28, 2024,
the company and its former CEO moved for reconsideration of that portion of the decision denying
their motion, and that motion was pending as of December 31, 2024.
In the Netherlands, six different parties (including European Investors \u2013 VEB and Deminor Litigation
Funding) representing both retail and institutional investors have approached the company, holding
the company and its directors liable for alleged misstatements and failures to make timely
disclosures in relation to the Respironics recall. As of December 31, 2024, one party has filed a civil
complaint with the Amsterdam District Court.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. An adverse outcome of these cases could have a material impact on the company\u2019s
consolidated financial position, results of operations and cash flows.
SEC investigation
Following earlier requests for information from the US Securities and Exchange Commission (SEC),
in March 2024, the company received a subpoena from the SEC relating to the Respironics Recall
and compliance with relevant securities laws. The investigation is not an indication that the SEC or
its staff have determined that any violations of law have occurred. The company is fully cooperating
with the investigation.It is the company's assessment that it is possible but not probable that this
investigation could lead to certain outflow of resources. The company is not able to reliably
estimate the financial impact, if any.
Other claims
On October 12, 2021, SoClean, a company offering ozone-based cleaning products for sleep
devices, filed a lawsuit in the US against the company and certain of its affiliates alleging that the
defendants\u2019 statements about the potential adverse effect ozone cleaning may have on the recalled
devices has significantly damaged its business. Philips believes that the claim is without merit and
will vigorously defend itself. In November 2023, the court ruled on one of the motions to dismiss
filed by defendants and partially dismissed some of SoClean\u2019s claims. On January 4, 2024, Philips
and its affiliates filed their answer and counterclaims against SoClean and one of its affiliates. In
October 2024, the court partially dismissed some of the counterclaims. Philips and its affiliates are
also pursuing claims against SoClean and one of its affiliates for contribution for personal injury
settlement costs and/or personal injury liability incurred by the company or its affiliates. SoClean
and its affiliate have sought to dismiss those claims, but the court has not yet reached a decision.
In addition, some of Philips Respironics\u2019 business partners, such as distributors and durable medical
equipment providers, have filed or threatened to file claims alleging economic losses suffered as a
consequence of the voluntary recall. Philips Respironics is engaging with certain of its business
partners on the level of compensation they allege to be entitled to under Philips Respironics\u2019
replacement program of the recalled devices. As of December 31, 2024, most of these claims have
been resolved.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. In the event of an adverse outcome, these matters could have a material impact on
the company\u2019s consolidated financial position, results of operations and cash flows.
To date, other than for the economic loss, medical monitoring and personal injury settlements
discussed above, no provisions have been recorded for the litigation and investigations in the US
and Canada associated with the Respironics field action.
Other
In the second half of 2023, Electro Medical Systems S.A., a manufacturer of, among others,
medical devices for dental prophylaxis, filed a lawsuit against the company alleging that the
company materially breached its duties under a cooperation agreement entered into between the
parties in 2016, claiming damages in excess of EUR 300 million, alleging loss of profit and lost
increase in brand value. Philips disagrees with the allegations and has submitted its statement of
defense in June 2024. The first Court hearing is expected to take place in the first half of 2025.
Miscellaneous
For details on other contractual obligations, please refer to liquidity risk in Details of treasury and
other financial risks.
29Details of treasury and other financial risks
Liquidity risk
The following table presents a summary of the Group\u2019s fixed contractual cash obligations and
commitments as of December\u00a031, 2024. These amounts are an estimate of future payments which
could change as a result of various factors such as a change in interest rates, foreign exchange, and
contractual provisions, as well as changes in business strategy and needs. Therefore, the actual
payments made in future periods may vary from those presented in the following table:
Philips Group
Contractual cash obligations1 2 in millions of EUR
Payments due by period
Total
Less than 1
year
1-3 years
3-5 years
After 5
years
Long-term debt
7,168
2,006
1,338
3,824
Short-term debt
525
525
Interest on debt
1,792
197
368
325
902
Derivative liabilities
72
64
8
Purchase obligations\u00b3
1,161
300
307
210
344
Trade and other payables
1,830
1,830
Contractual cash obligations
12,548
2,916
2,689
1,873
5,070
1Amounts in this table are undiscounted
2This 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.
3Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding
for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased,
fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not
include open purchase orders or other commitments which do not specify all significant terms.
Philips has contracts with investment funds where it committed itself to make, under certain
conditions, capital contributions to these funds of an aggregated remaining amount of EUR 130
million (2023: EUR 153 million). As of December\u00a031, 2024, capital contributions already made to
these investment funds are recorded as non-current financial assets.
Philips offers voluntary supply chain finance programs for certain US Dollar, Euro and Swedish
Krona third parties which provide participating suppliers the opportunity to factor their trade
receivables at the sole discretion of both the suppliers and the third parties. Philips continues to
recognize these liabilities as trade payables and settles them accordingly on the invoice maturity
date based on the terms and conditions of those arrangements. As of December 31, 2024,
approximately EUR 97 million (2023: EUR 114 million ) of the Philips account payable were
transferred under these arrangements.
Philips Group
Carrying amount of financial liabilities1 in millions of EUR
2024
Presented in accounts payables:
97
- of which suppliers have received payment from finance provider
85
Philips Group
Range of payment due dates
2024
Liabilities that are part of the arrangements
30 -135 days
Comparable trade payables that are not part of the arrangements
0 -135 days
1 There were no material business combinations or foreign exchange differences during the year.
With respect to the Respironics field action, please refer to Contingencies. The management
continues to monitor the risks associated with such potential claims and its impact on liquidity
position, if any.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-674": { "value": "
24Contingencies
Accounting policies
Contingent liabilities
A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognized
in the balance sheet because they are dependent on the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the company or because the risk of
loss is estimated to be possible but not probable or because the amount cannot be measured
reliably. Pursuant to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, certain
information is not disclosed for legal proceedings for which the company concludes that disclosure
can be expected to seriously prejudice the outcome of the matter.
Accounting estimates and judgments
Significant judgment is required to determine the likelihood of a potential outflow of resources. In
addition, judgment is involved in determining whether the amount of an obligation can be
measured with sufficient reliability. Contingencies involve inherent uncertainties including, but not
limited to, court rulings, negotiations between affected parties, governmental actions, tax and
environmental remediation. Contingent assets require management to apply judgment, especially
to estimate the likelihood of the inflow of economic benefits and timing of recognition.
Environmental remediation
The company and its subsidiaries are subject to environmental laws and regulations. Under these
laws, the company and/or its subsidiaries may be required to remediate the effects of certain
manufacturing activities on the environment.
Legal proceedings
The company and certain of its group companies and former group companies are involved as a
party in legal proceedings, regulatory and other governmental proceedings, including discussions
on potential remedial actions, relating to such matters as competition issues, commercial
transactions, product liability, participations, and environmental pollution.
While it is not feasible to predict or determine the outcome of all pending or threatened legal
proceedings, regulatory and governmental proceedings, the company is of the opinion that the
cases described below may have, or have had in the recent past, a significant impact on the
company\u2019s consolidated financial position, results of operations and cash flows.
Public investigations
In February 2023, the company received a statement of objections from the French Competition
Authority (FCA) initiating a formal investigation to verify whether the company and certain other
manufacturers of small domestic appliances breached antitrust rules in France in the period
2009-2014 through the alleged exchange of commercially sensitive information. The FCA issued its
decision in December 2024, in which it closed the case by concluding that the company did not
violate antitrust rules in France.
Respironics recall
On June 14, 2021, Philips subsidiary Philips RS North America LLC (Philips Respironics) issued a
voluntary recall notification in the United States and field safety notice outside the United States for
specific Philips Respironics CPAP, Bi-Level PAP, and mechanical ventilator devices (the \u201cRecalled
Devices\u201d).
Consent Decree
On August 26, 2021, the US Food and Drug Administration (FDA) commenced an inspection of the
Philips Respironics manufacturing facility in Murrysville, Pennsylvania, and provided Philips
Respironics with its preliminary inspectional observations on November 9, 2021. In the first half of
2024, Philips Respironics reached an agreement with the US Department of Justice (DoJ), acting on
behalf of the FDA, regarding the terms of a consent decree to resolve the identified issues in
relation to the inspection. The consent decree was entered by the court in April 2024.
DOJ investigation; state Attorneys General investigation
Philips Respironics and certain of Philips' subsidiaries in the US continue to cooperate with a
criminal and civil investigation triggered by a subpoena received from the DOJ in 2022 to provide
information related to events leading to the Respironics recall. In addition, the same entities are
cooperating with an investigation initiated in 2024 by certain US state Attorneys General into trade
practices related to the products subject of the Respironics recall. While the outflow of economic
resources in connection with these investigations is assessed as probable, given the current stage of
the investigations, the company is not able to reliably estimate the financial impact.
Product liability claims
Following the voluntary recall notification, a number of civil complaints have been filed in several
jurisdictions against Philips Respironics and certain of its affiliates (including the company) generally
alleging economic loss, personal injury and/or the potential for personal injury allegedly caused by
the recalled devices.
In the US, consumer and commercial class action lawsuits have been filed alleging economic loss
and medical monitoring claims. Individual personal injury lawsuits have also been filed. On October
8, 2021, a Multi-District Litigation (MDL) in the US District Court for the Western District of
Pennsylvania was formed, and most of these class action and personal injury lawsuits have been
consolidated in the MDL for pre-trial proceedings.
On September 7, 2023, Philips Respironics reached agreement on a class action settlement in
relation to the economic loss class action complaint, for which the company recorded a EUR 575
million provision in the first quarter of 2023. Under the agreement, which became final in May
2024, the Philips defendants agreed to provide predefined cash awards to all eligible participants in
the US depending on the type of device, extended warranties on all remediated devices provided as
part of Respironics\u2019 recall program, and an additional cash award if they return the recalled device
to Philips Respironics. The settlement also provides for compensation for individuals who acquired
replacement devices in the market after the recall and prior to the announcement of the
settlement. The settlement also provides for compensation to private insurers and other third-party
payers. The claims period concluded on August 9, 2024, and since then, the Claims Administrator
has been processing claims, calculating relevant payment amounts, and making payments to
eligible class members.
On May 9, 2024, Philips Respironics reached agreement on a class action settlement in relation to
the medical monitoring class action complaint. Under the agreement, which became final in
January 2025, the Philips defendants agreed to pay USD 25 million into a Qualified Settlement
Fund for the benefit of eligible class members. The USD 25 million amount is a fixed cap on the
amount of the settlement and will be used to fund, among other things, research related to the
advancement of public knowledge regarding the detection, diagnosis, and treatment of those
injuries alleged to have been caused by use of the recalled devices.
Also on May 9, 2024, Philips Respironics reached agreement on a private settlement in relation to
US personal injury claims. Under the agreement, the Philips defendants have agreed (subject to a
termination right) to pay USD 1.075 billion to consist of USD 25 million in notice and administrative
costs and USD 1.050 billion into a Personal Injury Settlement Fund. The settlement is an opt-in
agreement, by which eligible claimants would release all of their personal injury claims in exchange
for participation in the Personal Injury Settlement Fund. To participate in the settlement, an eligible
claimant must have experienced a qualifying injury. The Philips parties had the right to terminate
the settlement if less than 95% of eligible claimants would register for the settlement by the
registration deadline on January 31, 2025. As at the registration deadline registrations exceeded
95%, the settlement has now become final with payment expected in the first half of 2025. For
any individuals who declined to participate in, or are ineligible for, the settlement, and who wish to
litigate their personal injury claims, they will need to identify themselves after the registration
deadline and then comply with court orders imposing certain discovery obligations on them,
including with respect to early disclosure of their evidence on causation.
Philips Respironics and certain of its affiliates (including the company) continue to be defendants in
consumer class action lawsuits in Australia, Canada and Israel and collective or group actions in
Chile, France, Germany, Italy and the Netherlands alleging economic loss and/or personal injury.
While the company believes it is probable that ongoing lawsuits will in the aggregate lead to an
outflow of economic resources for Philips Respironics or other Philips entities, given the significant
uncertainty regarding the nature of the relevant events and potential obligations, the company is
not currently able to reliably estimate the amount of the obligation associated with these various
lawsuits. The final outcome of the lawsuits and the remaining cost to resolve them cannot currently
be determined due to a number of variables, including the early stages of some of these
proceedings and uncertainty regarding the number of remaining claimants, their allegations, and
their alleged injuries. The courts have not yet been asked to decide the question of whether any of
the claimed injuries could have been caused by use of the recalled devices.
In 2024, the company and its insurance carriers reached an agreement on the basis of which the
insurance carriers agreed to contribute EUR 540 million to cover product liability-related cash flows
related to the Respironics recall. This amount was paid in full to the company in 2024.
Securities claims
On August 16, 2021, a securities class action complaint was filed against the company, its former
CEO and its former CFO in the US District Court for the Eastern District of New York alleging
violations of the Securities Exchange Act of 1934 causing damage to investors. On September 23,
2024, following amendments to the complaint, the court issued a decision dismissing all claims
against the company\u2019s former CFO and the former head of Philips Respironics but denying in part
the motion to dismiss with respect to the company and its former CEO. The Court narrowed the
class period and dismissed all claims based on statements made before 2018. The Court also
dismissed all claims relating to certain categories of alleged misstatements. On October 28, 2024,
the company and its former CEO moved for reconsideration of that portion of the decision denying
their motion, and that motion was pending as of December 31, 2024.
In the Netherlands, six different parties (including European Investors \u2013 VEB and Deminor Litigation
Funding) representing both retail and institutional investors have approached the company, holding
the company and its directors liable for alleged misstatements and failures to make timely
disclosures in relation to the Respironics recall. As of December 31, 2024, one party has filed a civil
complaint with the Amsterdam District Court.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. An adverse outcome of these cases could have a material impact on the company\u2019s
consolidated financial position, results of operations and cash flows.
SEC investigation
Following earlier requests for information from the US Securities and Exchange Commission (SEC),
in March 2024, the company received a subpoena from the SEC relating to the Respironics Recall
and compliance with relevant securities laws. The investigation is not an indication that the SEC or
its staff have determined that any violations of law have occurred. The company is fully cooperating
with the investigation.It is the company's assessment that it is possible but not probable that this
investigation could lead to certain outflow of resources. The company is not able to reliably
estimate the financial impact, if any.
Other claims
On October 12, 2021, SoClean, a company offering ozone-based cleaning products for sleep
devices, filed a lawsuit in the US against the company and certain of its affiliates alleging that the
defendants\u2019 statements about the potential adverse effect ozone cleaning may have on the recalled
devices has significantly damaged its business. Philips believes that the claim is without merit and
will vigorously defend itself. In November 2023, the court ruled on one of the motions to dismiss
filed by defendants and partially dismissed some of SoClean\u2019s claims. On January 4, 2024, Philips
and its affiliates filed their answer and counterclaims against SoClean and one of its affiliates. In
October 2024, the court partially dismissed some of the counterclaims. Philips and its affiliates are
also pursuing claims against SoClean and one of its affiliates for contribution for personal injury
settlement costs and/or personal injury liability incurred by the company or its affiliates. SoClean
and its affiliate have sought to dismiss those claims, but the court has not yet reached a decision.
In addition, some of Philips Respironics\u2019 business partners, such as distributors and durable medical
equipment providers, have filed or threatened to file claims alleging economic losses suffered as a
consequence of the voluntary recall. Philips Respironics is engaging with certain of its business
partners on the level of compensation they allege to be entitled to under Philips Respironics\u2019
replacement program of the recalled devices. As of December 31, 2024, most of these claims have
been resolved.
It is the company\u2019s assessment that it is possible but not probable that these cases could lead to a
certain outflow of economic resources. The company is not able to reliably estimate the financial
impact, if any. In the event of an adverse outcome, these matters could have a material impact on
the company\u2019s consolidated financial position, results of operations and cash flows.
To date, other than for the economic loss, medical monitoring and personal injury settlements
discussed above, no provisions have been recorded for the litigation and investigations in the US
and Canada associated with the Respironics field action.
Other
In the second half of 2023, Electro Medical Systems S.A., a manufacturer of, among others,
medical devices for dental prophylaxis, filed a lawsuit against the company alleging that the
company materially breached its duties under a cooperation agreement entered into between the
parties in 2016, claiming damages in excess of EUR 300 million, alleging loss of profit and lost
increase in brand value. Philips disagrees with the allegations and has submitted its statement of
defense in June 2024. The first Court hearing is expected to take place in the first half of 2025.
Miscellaneous
For details on other contractual obligations, please refer to liquidity risk in Details of treasury and
other financial risks.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-678": { "value": "
24Contingencies
Accounting policies
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.
Guarantees
The total fair value of guarantees recognized on the balance sheet amounts to EUR nil million for
both 2024 and 2023 . Remaining off-balance-sheet business related guarantees on behalf of third
parties and associates as of December\u00a031, 2024, amounted to EUR 343 million (December\u00a031,
2023 : EUR 2 million ). These mainly include bank guarantees secured for insurance companies to
cover product liability-related cash flows related to the Respironics recall.
Miscellaneous
For details on other contractual obligations, please refer to liquidity risk in Details of treasury and
other financial risks.
29Details of treasury and other financial risks
Liquidity risk
The following table presents a summary of the Group\u2019s fixed contractual cash obligations and
commitments as of December\u00a031, 2024. These amounts are an estimate of future payments which
could change as a result of various factors such as a change in interest rates, foreign exchange, and
contractual provisions, as well as changes in business strategy and needs. Therefore, the actual
payments made in future periods may vary from those presented in the following table:
Philips Group
Contractual cash obligations1 2 in millions of EUR
Payments due by period
Total
Less than 1
year
1-3 years
3-5 years
After 5
years
Long-term debt
7,168
2,006
1,338
3,824
Short-term debt
525
525
Interest on debt
1,792
197
368
325
902
Derivative liabilities
72
64
8
Purchase obligations\u00b3
1,161
300
307
210
344
Trade and other payables
1,830
1,830
Contractual cash obligations
12,548
2,916
2,689
1,873
5,070
1Amounts in this table are undiscounted
2This 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.
3Purchase obligations are agreements to purchase goods or services that are enforceable and legally binding
for the Group. They specify all significant terms, including fixed or minimum quantities to be purchased,
fixed, minimum or variable price provisions and the approximate timing of the transaction. They do not
include open purchase orders or other commitments which do not specify all significant terms.
Philips has contracts with investment funds where it committed itself to make, under certain
conditions, capital contributions to these funds of an aggregated remaining amount of EUR 130
million (2023: EUR 153 million). As of December\u00a031, 2024, capital contributions already made to
these investment funds are recorded as non-current financial assets.
Philips offers voluntary supply chain finance programs for certain US Dollar, Euro and Swedish
Krona third parties which provide participating suppliers the opportunity to factor their trade
receivables at the sole discretion of both the suppliers and the third parties. Philips continues to
recognize these liabilities as trade payables and settles them accordingly on the invoice maturity
date based on the terms and conditions of those arrangements. As of December 31, 2024,
approximately EUR 97 million (2023: EUR 114 million ) of the Philips account payable were
transferred under these arrangements.
Philips Group
Carrying amount of financial liabilities1 in millions of EUR
2024
Presented in accounts payables:
97
- of which suppliers have received payment from finance provider
85
Philips Group
Range of payment due dates
2024
Liabilities that are part of the arrangements
30 -135 days
Comparable trade payables that are not part of the arrangements
0 -135 days
1 There were no material business combinations or foreign exchange differences during the year.
With respect to the Respironics field action, please refer to Contingencies. The management
continues to monitor the risks associated with such potential claims and its impact on liquidity
position, if any.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-677": { "value": "
24Contingencies
Accounting policies
Financial guarantees
Philips\u2019 policy is to provide guarantees and other letters of support only in writing. Philips does not
stand by other forms of support. The company recognizes a liability at the fair value of the
obligation at the inception of a financial guarantee contract. The guarantee is subsequently
measured at the higher of the best estimate of the obligation or the amount initially recognized
less, when appropriate, cumulative amortization.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialGuaranteesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-679": { "value": "
25Related-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.
Philips Group
Related-party transactions in millions of EUR
2022
2023
2024
Sales of goods and services
111
106
89
Purchases of goods and services
46
42
50
Receivables from related parties
55
18
25
Payables to related parties
2
2
2
The above table includes sales transactions between Philips and PMC of EUR 88 million in 2024
(2023: EUR 87 million; 2022 : EUR 101 million), under which PMC has leased the equipment to the
ultimate customer. In addition, as part of its S&RC operations in the US, Philips Medical Capital LLC
funded durable medical equipment (DMEs) providers, through loans and leases. PMC-funded
transactions these DMEs entered into with Philips amount to EUR 75 million in 2024 ( 2023 : EUR
117 million ; 2022: EUR 117 million). The associated costs of these funding transactions are borne
by the ultimate customer and settled directly with Philips Medical Capital LLC. Philips Medical
Capital LLC, a Pennsylvania limited liability company, is owned 60% by De Lage Landen Financial
Services, Inc. (DLL) and 40% by Philips Electronics North America Corporation (Philips).", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-680": { "value": "
26Share-based compensation
Accounting policies
Philips share-based compensation is an equity-settled plan made of restricted and performance
shares. The restricted shares are subject to a three -year service condition and the performance
shares include both market and non-market-based performance conditions, in addition to a three -
year service condition. These shares are awarded to the Executive Committee and senior
management.
The grant date fair value of market-based performance shares is determined through a Monte
Carlo valuation model. The grant date fair value of non-market-based performance shares and
restricted shares is determined as the share price at the grant date as participants receive notional
dividends throughout the vesting period. The costs of share-based compensation plans are revised
for expected performance (non-market-based performance shares) and forfeiture and are spread
evenly over the service period.
Share-based compensation is recognized over the service period as personnel expense in the
consolidated statement of income, with a corresponding increase to equity.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-681": { "value": "
27Information on remuneration
Remuneration of the Executive Committee
In 2024 , the total remuneration costs relating to the Executive Committee (consisting of 15
members throughout the year, including the members of the Board of Management) amounted to
EUR 32.0 million ( 2023 : EUR 32.8 million ; 2022 : EUR 25.6 million ) and consisted of the elements in
the following table.
Philips Group
Remuneration costs of the Executive Committee1 in EUR
2022
2023
2024
Base salary/Base compensation
9,528,279
8,729,458
9,362,765
Annual incentive\u00b2
208,370
11,405,130
5,292,388
Performance shares\u00b3
11,242,581
7,272,815
12,673,614
Stock options
13,358
90,503
Restricted share rights\u00b3
1,191,529
1,907,511
999,374
Pension allowances\u2074
1,949,204
1,346,937
1,197,695
Pension scheme costs
288,179
260,554
269,092
Other compensation\u2075
1,216,163
1,900,224
2,136,668
Total
25,624,305
32,835,987
32,022,099
1The Executive Committee consisted of 13 members as per December\u00a031, 2024 (2023 : 13 members; 2022:
13 members)
2The annual incentives are related to the performance in the year reported which are paid out in the
subsequent year.
3Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do
not reflect the value of performance shares at the vesting/release date
4Pension allowances are gross taxable allowances paid to the Executive Committee members in the
Netherlands. These allowances are part of the pension arrangement
5The 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
Remuneration of the Board of Management
In 2024, the total remuneration costs relating to the members of the Board of Management amounted to EUR 10.3 million (2023: EUR 9.9 million; 2022: EUR 8.5 million). See the following table.
Philips Group
Remuneration costs of individual members of the Board of Management in EUR
Base
compensation/
salary
Annual incentive\u00b9
Performance
shares\u00b2
Restricted share
rights\u00b2
Pension
allowances
Pension scheme
costs
Other
compensation\u00b3
Total costs
2024
R. Jakobs
1,237,500
927,750
1,692,087
274,925
32,218
83,870
4,248,350
C. Hanneman\u2074
175,545
98,372
104,606
35,247
7,775
23,089
444,633
A. Bhattacharya
622,500
351,934
1,424,219
129,788
25,478
963,596
3,517,514
M.J. van Ginneken
652,500
422,374
740,101
128,675
32,218
74,227
2,050,095
2,688,045
1,800,429
3,961,013
568,635
97,689
1,144,781
10,260,593
2023
R. Jakobs
1,200,000
2,004,480
968,922
267,798
31,891
109,256
4,582,347
A. Bhattacharya
810,000
1,075,939
793,429
197,133
31,891
94,516
3,002,907
M.J. van Ginneken
630,000
846,922
614,840
125,298
31,891
53,446
2,302,397
2,640,000
3,927,341
2,377,191
590,228
95,673
257,218
9,887,650
2022
R. Jakobs\u2075
256,438
112,737
57,973
6,012
11,507
444,667
F.A. van Houten\u2075
1,041,849
208,370
2,930,068
444,051
22,121
42,533
4,688,992
A. Bhattacharya
806,250
763,140
237,250
28,133
61,308
1,896,081
M.J. van Ginneken
626,250
585,490
141,622
28,133
35,343
1,416,837
2,730,788
208,370
4,391,434
880,896
84,398
150,691
8,446,577
1The annual incentives are related to the performance in the year reported which are paid out in the subsequent year.
2Costs of performance shares and restricted share rights are based on accounting standards (IFRS) and do
not reflect the value of performance shares at the vesting/release date
3The 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.
4As per October 1, 2024, Charlotte Hanneman was appointed as CFO of the company. This table includes
actual costs incurred as of this date and until the end of the year.
5As per October 15, 2022, Roy Jakobs was appointed as CEO of the company. The table includes actual
costs incurred in respect of the remuneration received by Mr Van Houten and Mr Jakobs, respectively, as
CEO.
The accumulated annual pension entitlements and the pension costs of individual members of the
Board of Management are as follows:
Philips Group
Accumulated annual pension entitlements and pension-related costs in EUR unless otherwise stated
Age as of December 31,
2024
Accumulated annual
pension as of December
31, 2024
Total pension related costs
R. Jakobs
50
60,886
307,143
C. Hanneman
46
1,298
100,072
M.J. van Ginneken
51
58,167
160,894
Pension costs
568,109
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 2024, 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 1.7 million (2023:
EUR 1.5 million; 2022: EUR 1.5 million). Former members received no remuneration.
The members of the Supervisory Board do not receive any share-based remuneration. Therefore, as
of December\u00a031, 2024, the members of the Supervisory Board held no stock options, performance
shares or restricted shares.
The individual members of the Supervisory Board received, by virtue of the positions they held, the
following remuneration:
Philips Group
Remuneration of the Supervisory Board in EUR
Membership
Committees
Other compensation\u00b9
Total
2024
F. Sijbesma
166,500
37,500
28,945
232,945
P.A.M. Stoffels
123,500
37,500
13,269
174,269
S.K. Chua
107,500
19,250
26,107
152,857
M.E. Doherty
107,500
29,000
20,289
156,789
A.M. Harrison
107,500
15,000
7,769
130,269
P. L\u00f6scher
107,500
34,250
18,769
160,519
I. Nooyi
107,500
15,000
20,154
142,654
S. Poonen
107,500
16,771
19,267
143,538
D.E.I. Pyott
107,500
28,750
18,769
155,019
B. Ribadeau-Dumas
70,390
9,822
17,986
98,198
H. Verhagen
107,500
26,229
16,267
149,996
1,220,390
269,072
207,592
1,697,054
2023
F. Sijbesma
155,000
35,000
16,345
206,345
P.A.M. Stoffels
115,000
35,000
22,269
172,269
S.K. Chua
100,000
18,000
22,269
140,269
M.E. Doherty
100,000
27,000
27,269
154,269
A.M. Harrison
100,000
14,000
19,769
133,769
P. L\u00f6scher
100,000
32,000
17,269
149,269
I. Nooyi
100,000
14,000
17,269
131,269
S. Poonen
100,000
18,000
19,769
137,769
D.E.I. Pyott
100,000
35,000
19,769
154,769
H. Verhagen
100,000
14,000
7,269
121,269
1,070,000
242,000
189,266
1,501,266
2022
F. Sijbesma
155,000
35,000
16,345
206,345
P.A.M. Stoffels
115,000
35,000
27,269
177,269
S.K. Chua
100,000
18,000
22,269
140,269
N. Dhawan
35,616
6,411
5,808
47,836
M.E. Doherty
100,000
27,000
24,769
151,769
A.M. Harrison
100,000
14,000
12,269
126,269
P. L\u00f6scher
100,000
32,000
24,769
156,769
I. Nooyi
100,000
14,000
17,269
131,269
S. Poonen
100,000
18,000
17,269
135,269
D.E.I. Pyott
100,000
35,000
17,269
152,269
H. Verhagen
100,000
14,000
7,269
121,269
1,105,616
248,411
192,574
1,546,602
1The amounts mentioned under other compensation relate to the fee for intercontinental travel, inter-
European travel, the Philips product arrangement and the annual fixed net expense allowance.
Supervisory Board members\u2019 and Board of Management members\u2019 interests in Philips
shares
Members of the Supervisory Board and of the Board of Management are prohibited from writing
call and put options or similar derivatives of Philips securities.
Philips Group
Shares held by Board members1 2 in number of shares
December 31, 2023
December 31, 2024
R. Jakobs
126,809
134,298
M.J. van Ginneken
129,447
137,753
P. Stoffels
17,759
18,366
S. Poonen
3,133
3,240
I. Nooyi
3,238
3,348
D. Pyott
19,848
20,526
S.K. Chua
2,089
2,160
F. Sijbesma
25,000
25,854
M. Harrison
1,567
1,620
P. L\u00f6scher
21,658
22,398
1Reference date for board membership is December\u00a031, 2024
2The total shares held by the members of the Board of Management is less than 1% of the company's
issued share capital.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-685": { "value": "
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
Accounting estimates and judgments
Determining the fair value of financial instruments requires the use of estimates according to the
method applied for each type of financial asset of liability. The estimated fair value of financial
instruments has been determined by the company using available market information and
appropriate valuation methods. The estimates presented are not necessarily indicative of the
amounts that will ultimately be realized by the company upon maturity or disposal. The use of
different market assumptions and/or estimation methods may have a material effect on the
estimated fair value amounts.
Specific valuation techniques used to value financial instruments include:
Level 1
Instruments included in level 1 are composed 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 (OCI). 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\u2019s 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.
The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or
on the basis of discounted cash flow analysis using market rates plus Philips\u2019 spread for the
particular tenors of the borrowing arrangement. Accrued interest is not included within the
carrying amount or estimated fair value of debt.
Level 3
If one or more of the significant inputs are not based on observable market data, such as third-
party pricing information without adjustments, the instrument is included in level 3.
The fair value of contingent consideration is dependent on the terms of the respective acquisition
agreement that may require Philips to pay additional consideration to former shareholders if
specified future events occur or conditions are met, such as the achievement of certain regulatory
milestones or the achievement of certain commercial milestones. The fair value of the contingent
consideration provision is generally determined using a probability-weighted and a risk-adjusted
approach to estimate the achievement of future regulatory and commercial milestones,
respectively. The discount rates used in the risk adjusted approach reflect the inherent risk related
to achieving the commercial milestones. Both regulatory and commercial milestones are discounted
for the time value of money at risk-free rates. The fair value measurement is based on
management\u2019s estimates and assumptions and hence classified as Level 3 in the fair value
hierarchy.
The following tables show the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets
and financial liabilities not carried at fair value is not included if the carrying amount is a reasonable
approximation of fair value.
Philips Group
Fair value of financial assets and liabilities in millions of EUR\u00a0
2023
2024
Carrying amount
Estimated fair
value\u00b9
Carrying amount
Estimated fair
value\u00b9
Level 1
Level 2
Level 3
December 31
Financial assets
Carried at fair value:
Debt instruments
226
226
231
231
231
Equity instruments
2
2
3
3
2
Other financial assets
56
56
54
54
53
-
Financial assets carried at FVTP&L
284
284
288
288
53
234
Debt instruments
27
27
21
21
20
Equity instruments
231
231
222
222
4
218
Current financial assets
3
3
2
2
2
Receivables - current
32
32
Receivables - non-current
Financial assets carried at FVTOCI
293
293
244
244
4
20
220
Derivative financial instruments
48
48
77
77
72
6
Financial assets carried at fair value
624
624
609
609
4
146
460
Carried at (amortized) cost:
Cash and cash equivalents
1,869
2,401
Loans and receivables:
Current loans receivables
-
-
Other non-current loans and receivables
77
102
Receivables - current
3,701
3,672
Receivables - non-current
193
208
Financial assets carried at (amortized) cost
5,840
6,382
Total financial assets
6,465
6,992
Financial liabilities
Carried at fair value:
Contingent consideration
(115)
(115)
(113)
(113)
(113)
Financial liabilities carried at FVTP&L
(115)
(115)
(113)
(113)
(113)
Derivative financial instruments
(43)
(43)
(63)
(63)
(63)
Financial liabilities carried at fair value
(158)
(158)
(176)
(176)
(63)
(113)
Carried at (amortized) cost:
Accounts payable
(1,917)
(1,830)
Interest accrual
(76)
(83)
Debt (Corporate bonds and leases)
(6,969)
(6,798)
(7,397)
(7,363)
(6,290)
(1,073)
Debt (excluding corporate bonds and leases)
(721)
(241)
Financial liabilities carried at (amortized) cost
(9,682)
(9,551)
Total financial liabilities
(9,840)
(9,728)
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments
(including maturity and interest conditions) and therefore fair value information is not included in the table above.
The following table shows the reconciliation from the beginning balance to the end balance for
Level 3 fair value measurements.
Philips Group
Reconciliation of Level 3 fair value measurements in millions of EUR
2023
2024
Financial assets
Financial
liabilities
Financial assets
Financial
liabilities
Balance as of January 1
549
113
503
115
Acquisitions
6
Purchase
85
86
Sales
(56)
(48)
Utilizations
(20)
(9)
Recognized in profit and loss:
other business income
16
2
financial income and expenses\u00b9
(43)
1
(23)
3
Recognized in other comprehensive
income\u00b2
(40)
(2)
(8)
3
Receivables held to collect and sell
6
(32)
Reclassification
1
(18)
-
Balance as of December 31
503
115
460
113
1Refer to Financial income and expenses for details.\u00a0
2Includes translation differences
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-684": { "value": "
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.
Accounting estimates and judgments
Determining the fair value of financial instruments requires the use of estimates according to the
method applied for each type of financial asset of liability. The estimated fair value of financial
instruments has been determined by the company using available market information and
appropriate valuation methods. The estimates presented are not necessarily indicative of the
amounts that will ultimately be realized by the company upon maturity or disposal. The use of
different market assumptions and/or estimation methods may have a material effect on the
estimated fair value amounts.
Specific valuation techniques used to value financial instruments include:
Level 1
Instruments included in level 1 are composed 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 (OCI). 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\u2019s 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.
The fair value of debt is estimated on the basis of the quoted market prices for certain issuances, or
on the basis of discounted cash flow analysis using market rates plus Philips\u2019 spread for the
particular tenors of the borrowing arrangement. Accrued interest is not included within the
carrying amount or estimated fair value of debt.
Level 3
If one or more of the significant inputs are not based on observable market data, such as third-
party pricing information without adjustments, the instrument is included in level 3.
The fair value of contingent consideration is dependent on the terms of the respective acquisition
agreement that may require Philips to pay additional consideration to former shareholders if
specified future events occur or conditions are met, such as the achievement of certain regulatory
milestones or the achievement of certain commercial milestones. The fair value of the contingent
consideration provision is generally determined using a probability-weighted and a risk-adjusted
approach to estimate the achievement of future regulatory and commercial milestones,
respectively. The discount rates used in the risk adjusted approach reflect the inherent risk related
to achieving the commercial milestones. Both regulatory and commercial milestones are discounted
for the time value of money at risk-free rates. The fair value measurement is based on
management\u2019s estimates and assumptions and hence classified as Level 3 in the fair value
hierarchy.
The following tables show the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets
and financial liabilities not carried at fair value is not included if the carrying amount is a reasonable
approximation of fair value.
Philips Group
Fair value of financial assets and liabilities in millions of EUR\u00a0
2023
2024
Carrying amount
Estimated fair
value\u00b9
Carrying amount
Estimated fair
value\u00b9
Level 1
Level 2
Level 3
December 31
Financial assets
Carried at fair value:
Debt instruments
226
226
231
231
231
Equity instruments
2
2
3
3
2
Other financial assets
56
56
54
54
53
-
Financial assets carried at FVTP&L
284
284
288
288
53
234
Debt instruments
27
27
21
21
20
Equity instruments
231
231
222
222
4
218
Current financial assets
3
3
2
2
2
Receivables - current
32
32
Receivables - non-current
Financial assets carried at FVTOCI
293
293
244
244
4
20
220
Derivative financial instruments
48
48
77
77
72
6
Financial assets carried at fair value
624
624
609
609
4
146
460
Carried at (amortized) cost:
Cash and cash equivalents
1,869
2,401
Loans and receivables:
Current loans receivables
-
-
Other non-current loans and receivables
77
102
Receivables - current
3,701
3,672
Receivables - non-current
193
208
Financial assets carried at (amortized) cost
5,840
6,382
Total financial assets
6,465
6,992
Financial liabilities
Carried at fair value:
Contingent consideration
(115)
(115)
(113)
(113)
(113)
Financial liabilities carried at FVTP&L
(115)
(115)
(113)
(113)
(113)
Derivative financial instruments
(43)
(43)
(63)
(63)
(63)
Financial liabilities carried at fair value
(158)
(158)
(176)
(176)
(63)
(113)
Carried at (amortized) cost:
Accounts payable
(1,917)
(1,830)
Interest accrual
(76)
(83)
Debt (Corporate bonds and leases)
(6,969)
(6,798)
(7,397)
(7,363)
(6,290)
(1,073)
Debt (excluding corporate bonds and leases)
(721)
(241)
Financial liabilities carried at (amortized) cost
(9,682)
(9,551)
Total financial liabilities
(9,840)
(9,728)
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments
(including maturity and interest conditions) and therefore fair value information is not included in the table above.
The following table shows the reconciliation from the beginning balance to the end balance for
Level 3 fair value measurements.
Philips Group
Reconciliation of Level 3 fair value measurements in millions of EUR
2023
2024
Financial assets
Financial
liabilities
Financial assets
Financial
liabilities
Balance as of January 1
549
113
503
115
Acquisitions
6
Purchase
85
86
Sales
(56)
(48)
Utilizations
(20)
(9)
Recognized in profit and loss:
other business income
16
2
financial income and expenses\u00b9
(43)
1
(23)
3
Recognized in other comprehensive
income\u00b2
(40)
(2)
(8)
3
Receivables held to collect and sell
6
(32)
Reclassification
1
(18)
-
Balance as of December 31
503
115
460
113
1Refer to Financial income and expenses for details.\u00a0
2Includes translation differences
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-686": { "value": "
28Fair value of financial assets and liabilities
Accounting policies
Fair value hierarchy
For financial reporting purposes, financial instruments are categorized into Level 1, 2 or 3, based on
the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are as follows:
\u2022 Level 1 \u2013 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that the company can access at the measurement date.
\u2022 Level 2 \u2013 all significant inputs (other than quoted prices included within Level 1) are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
\u2022 Level 3 \u2013 one or more of the significant inputs are not based on observable market data, such as
third-party pricing information without adjustments, for the asset or liability.
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting
period during which the change has occurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-683": { "value": "
28Fair value of financial assets and liabilities
Accounting policies
Offsetting and master netting agreements
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when,
and only when, the company currently has a legally enforceable right to set-off the amounts and
the group intends either to settle them on a net basis or to realize the asset and settle the liability
simultaneously.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-682": { "value": "
28Fair value of financial assets and liabilities
The following tables show the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets
and financial liabilities not carried at fair value is not included if the carrying amount is a reasonable
approximation of fair value.
Philips Group
Fair value of financial assets and liabilities in millions of EUR\u00a0
2023
2024
Carrying amount
Estimated fair
value\u00b9
Carrying amount
Estimated fair
value\u00b9
Level 1
Level 2
Level 3
December 31
Financial assets
Carried at fair value:
Debt instruments
226
226
231
231
231
Equity instruments
2
2
3
3
2
Other financial assets
56
56
54
54
53
-
Financial assets carried at FVTP&L
284
284
288
288
53
234
Debt instruments
27
27
21
21
20
Equity instruments
231
231
222
222
4
218
Current financial assets
3
3
2
2
2
Receivables - current
32
32
Receivables - non-current
Financial assets carried at FVTOCI
293
293
244
244
4
20
220
Derivative financial instruments
48
48
77
77
72
6
Financial assets carried at fair value
624
624
609
609
4
146
460
Carried at (amortized) cost:
Cash and cash equivalents
1,869
2,401
Loans and receivables:
Current loans receivables
-
-
Other non-current loans and receivables
77
102
Receivables - current
3,701
3,672
Receivables - non-current
193
208
Financial assets carried at (amortized) cost
5,840
6,382
Total financial assets
6,465
6,992
Financial liabilities
Carried at fair value:
Contingent consideration
(115)
(115)
(113)
(113)
(113)
Financial liabilities carried at FVTP&L
(115)
(115)
(113)
(113)
(113)
Derivative financial instruments
(43)
(43)
(63)
(63)
(63)
Financial liabilities carried at fair value
(158)
(158)
(176)
(176)
(63)
(113)
Carried at (amortized) cost:
Accounts payable
(1,917)
(1,830)
Interest accrual
(76)
(83)
Debt (Corporate bonds and leases)
(6,969)
(6,798)
(7,397)
(7,363)
(6,290)
(1,073)
Debt (excluding corporate bonds and leases)
(721)
(241)
Financial liabilities carried at (amortized) cost
(9,682)
(9,551)
Total financial liabilities
(9,840)
(9,728)
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments
(including maturity and interest conditions) and therefore fair value information is not included in the table above.
Offsetting and master netting agreements
Transactions in derivatives are subject to master netting and set-off agreements. In the case of
certain termination events, under the terms of the master agreement, Philips can terminate the
outstanding transactions and aggregate their positive and negative values to arrive at a single net
termination sum (or close-out amount). This contractual right is subject to the following:
\u2022 The right may be limited by local law if the counterparty is subject to bankruptcy proceedings.
\u2022 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
2023
2024
Derivatives
Gross amounts of recognized financial assets
48
72
Gross amounts of recognized financial liabilities offset in the balance sheet
Net amounts of financial assets presented in the balance sheet
48
72
Related amounts not offset in the balance sheet
Financial instruments
(34)
(45)
Net amount
13
27
Philips Group
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar
agreements in millions of EUR
2023
2024
Derivatives
Gross amounts of recognized financial liabilities
(43)
(63)
Gross amounts of recognized financial assets offset in the balance sheet
Net amounts of financial liabilities presented in the balance sheet
(43)
(63)
Related amounts not offset in the balance sheet
Financial instruments
34
45
Net amount
(9)
(18)
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.
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\u2019 financial
results. Philips is exposed to currency risk in the following areas:
\u2022 transaction exposures, related to anticipated sales and purchases and on-balance-sheet
receivables/payables resulting from such transactions
\u2022 translation exposure of foreign-currency intercompany and external debt and deposits
\u2022 translation exposure of net income in foreign entities
\u2022 translation exposure of foreign-currency-denominated equity invested in consolidated
companies
\u2022 translation exposure to equity interests in non-functional-currency investments in associates and
other non-current financial assets
It is Philips\u2019 policy to reduce the potential year-on-year volatility caused by foreign-currency
movements on its net earnings by hedging the anticipated net exposure of foreign currencies
resulting from foreign-currency sales and purchases. In general, net anticipated exposures for the
Group are hedged during a period of 15 months in layers of 20% up to a maximum hedge of
80%. Philips\u2019 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\u2019 most significant currency exposures
consolidated as of December\u00a031, 2024:
Philips Group
Estimated transaction exposure and related hedges in millions of EUR
Sales/Receivables
Purchases/Payable
Exposure
Hedges
Exposure
Hedges
Balance as of December 31, 2024
Exposure currency
USD
2,071
(1,669)
(1,163)
1,049
JPY
527
(300)
(7)
7
GBP
259
(161)
(15)
14
CNY
442
(312)
(209)
209
PLN
95
(62)
(1)
1
CAD
236
(134)
AUD
177
(104)
CHF
144
(85)
KRW
126
(83)
ILS
12
(8)
(204)
121
EUR
160
(158)
(121)
121
Others
169
(113)
(23)
23
Total 2024
4,420
(3,188)
(1,743)
1,543
Total 2023
4,287
(3,185)
(1,346)
1,173
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\u00a031, 2024, a gain of EUR 1 million was deferred in equity as a result of these hedges
(2023: EUR 6 million gain). The result deferred in equity will be released to earnings mostly during
2025 at the time when the related hedged transactions affect the income statement. During 2024,
nil (2023 nil) 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. During 2024, a gain of EUR 29 million (2023 EUR 19 million
gain) included in the cash flow hedges reserve in equity pertaining to changes in fair value of
foreign exchange forward and option contracts was released to income statement.
The total net fair value of hedges related to transaction exposure as of December\u00a031, 2024, was an
unrealized loss of EUR 2 million. The estimated impact of a 10% increase of value of the EUR is
estimated to be EUR 122 million. The following table contains an overview of the instantaneous
10% increase in the value of EUR against major currencies.
Philips Group
Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR
2023
2024
USD
64
63
JPY
15
13
GBP
16
13
CHF
5
7
PLN
1
1
RUB
-
1
The EUR 122 million increase includes a gain of EUR 34 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 88 million would be recognized in equity to
the extent that the cash flow hedges were effective.
Foreign exchange exposure also arises as a result of inter-company loans and deposits. Where the
company enters into such arrangements, the financing is generally provided in the functional
currency of the subsidiary entity. The currency of the company\u2019s external funding and liquid assets
is matched with the required financing of subsidiaries, either directly through external foreign
currency loans and deposits, or synthetically by using foreign exchange derivatives, including cross
currency interest rate swaps and foreign exchange forward contracts. In certain cases where group
companies may also have external foreign currency debt or liquid assets, these exposures are also
hedged through the use of foreign exchange derivatives. Changes in the fair value of hedges
related to this exposure are recognized within financial income and expenses in the statements of
income. When such loans would be considered part of the net investment in the subsidiary, net
investment hedging would be applied.
Translation exposure of foreign-currency equity invested in consolidated entities is generally not
hedged. If a hedge is entered into, it is accounted for as a net investment hedge. Net current-
period change, before tax, of the currency translation reserve of positive EUR 768 million mainly
relates to the development of the USD versus the EUR. As of December\u00a031, 2024, a weakening of
USD by 10% versus the EUR would result in a decrease in the currency translation reserve in equity
of approximately EUR 1,275 million, while a strengthening of USD by 10% versus the EUR would
result in an increase in the currency translation reserve in equity of approximately EUR 1,558
million. Refer to the country risk paragraph for countries with significant foreign currency
denominated equity invested.
As of December\u00a031, 2024, external bond funding for a nominal value of USD 1,466 million (liability
at book value: EUR 1,408 million) was designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2024, no ineffectiveness was
recognized in the income statement on net investment hedges arising from counterparty and own
credit risk.
As of December\u00a031, 2024, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 106 million in the value of the derivatives, including a
EUR 50 million decrease related to the USD.
As of December\u00a031, 2023, external bond funding for a nominal value of USD 1,474 million (liability
at book value: EUR 1,325 million) were designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2023 a total loss of EUR 2 million
was recognized in the income statement as ineffectiveness on net investment hedges, arising from
counterparty and own credit risk.
As of December\u00a031, 2023, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 52 million in the value of the derivatives, including a
EUR 11 million increase related to the USD.
Generally Philips does not hedge the foreign exchange exposure arising from equity interests in
non-functional-currency investments in associates and other non-current financial assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-691": { "value": "
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-688": { "value": "
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-687": { "value": "
29Details of treasury and other financial risks
Accounting policies
Derivative financial instruments, including hedge accounting
The company uses derivative financial instruments principally to manage its foreign currency risks
and, to a more limited extent, interest rate and commodity price risks. All derivative financial
instruments are accounted for at the trade date and classified as current or non-current assets or
liabilities based on the maturity date or the early termination date. The company measures all
derivative financial instruments at fair value that is derived from the market prices of the
instruments, calculated on the basis of the present value of the estimated future cash flows based
on observable interest yield curves, basis spread, credit spreads and foreign exchange rates, or
derived from option pricing models, as appropriate. Gains or losses arising from changes in fair
value of derivatives are recognized in the Consolidated statements of income, except for derivatives
that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies
as a cash flow hedge are recorded in other comprehensive income (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
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.
The company formally assesses, both at the hedge\u2019s 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 a forecasted transaction
is expected not to 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.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-690": { "value": "
29Details of treasury and other financial risks
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\u2019 financial
results. Philips is exposed to currency risk in the following areas:
\u2022 transaction exposures, related to anticipated sales and purchases and on-balance-sheet
receivables/payables resulting from such transactions
\u2022 translation exposure of foreign-currency intercompany and external debt and deposits
\u2022 translation exposure of net income in foreign entities
\u2022 translation exposure of foreign-currency-denominated equity invested in consolidated
companies
\u2022 translation exposure to equity interests in non-functional-currency investments in associates and
other non-current financial assets
It is Philips\u2019 policy to reduce the potential year-on-year volatility caused by foreign-currency
movements on its net earnings by hedging the anticipated net exposure of foreign currencies
resulting from foreign-currency sales and purchases. In general, net anticipated exposures for the
Group are hedged during a period of 15 months in layers of 20% up to a maximum hedge of
80%. Philips\u2019 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\u2019 most significant currency exposures
consolidated as of December\u00a031, 2024:
Philips Group
Estimated transaction exposure and related hedges in millions of EUR
Sales/Receivables
Purchases/Payable
Exposure
Hedges
Exposure
Hedges
Balance as of December 31, 2024
Exposure currency
USD
2,071
(1,669)
(1,163)
1,049
JPY
527
(300)
(7)
7
GBP
259
(161)
(15)
14
CNY
442
(312)
(209)
209
PLN
95
(62)
(1)
1
CAD
236
(134)
AUD
177
(104)
CHF
144
(85)
KRW
126
(83)
ILS
12
(8)
(204)
121
EUR
160
(158)
(121)
121
Others
169
(113)
(23)
23
Total 2024
4,420
(3,188)
(1,743)
1,543
Total 2023
4,287
(3,185)
(1,346)
1,173
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\u00a031, 2024, a gain of EUR 1 million was deferred in equity as a result of these hedges
(2023: EUR 6 million gain). The result deferred in equity will be released to earnings mostly during
2025 at the time when the related hedged transactions affect the income statement. During 2024,
nil (2023 nil) 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. During 2024, a gain of EUR 29 million (2023 EUR 19 million
gain) included in the cash flow hedges reserve in equity pertaining to changes in fair value of
foreign exchange forward and option contracts was released to income statement.
The total net fair value of hedges related to transaction exposure as of December\u00a031, 2024, was an
unrealized loss of EUR 2 million. The estimated impact of a 10% increase of value of the EUR is
estimated to be EUR 122 million. The following table contains an overview of the instantaneous
10% increase in the value of EUR against major currencies.
Philips Group
Estimated impact of 10% increase of value of the EUR on the fair value of hedges in millions of EUR
2023
2024
USD
64
63
JPY
15
13
GBP
16
13
CHF
5
7
PLN
1
1
RUB
-
1
The EUR 122 million increase includes a gain of EUR 34 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 88 million would be recognized in equity to
the extent that the cash flow hedges were effective.
Foreign exchange exposure also arises as a result of inter-company loans and deposits. Where the
company enters into such arrangements, the financing is generally provided in the functional
currency of the subsidiary entity. The currency of the company\u2019s external funding and liquid assets
is matched with the required financing of subsidiaries, either directly through external foreign
currency loans and deposits, or synthetically by using foreign exchange derivatives, including cross
currency interest rate swaps and foreign exchange forward contracts. In certain cases where group
companies may also have external foreign currency debt or liquid assets, these exposures are also
hedged through the use of foreign exchange derivatives. Changes in the fair value of hedges
related to this exposure are recognized within financial income and expenses in the statements of
income. When such loans would be considered part of the net investment in the subsidiary, net
investment hedging would be applied.
Translation exposure of foreign-currency equity invested in consolidated entities is generally not
hedged. If a hedge is entered into, it is accounted for as a net investment hedge. Net current-
period change, before tax, of the currency translation reserve of positive EUR 768 million mainly
relates to the development of the USD versus the EUR. As of December\u00a031, 2024, a weakening of
USD by 10% versus the EUR would result in a decrease in the currency translation reserve in equity
of approximately EUR 1,275 million, while a strengthening of USD by 10% versus the EUR would
result in an increase in the currency translation reserve in equity of approximately EUR 1,558
million. Refer to the country risk paragraph for countries with significant foreign currency
denominated equity invested.
As of December\u00a031, 2024, external bond funding for a nominal value of USD 1,466 million (liability
at book value: EUR 1,408 million) was designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2024, no ineffectiveness was
recognized in the income statement on net investment hedges arising from counterparty and own
credit risk.
As of December\u00a031, 2024, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 106 million in the value of the derivatives, including a
EUR 50 million decrease related to the USD.
As of December\u00a031, 2023, external bond funding for a nominal value of USD 1,474 million (liability
at book value: EUR 1,325 million) were designated as a net investment hedge of financing
investments in foreign operations for an equal amount. During 2023 a total loss of EUR 2 million
was recognized in the income statement as ineffectiveness on net investment hedges, arising from
counterparty and own credit risk.
As of December\u00a031, 2023, an instantaneous 10% increase in the value of the EUR against all
currencies would lead to an decrease of EUR 52 million in the value of the derivatives, including a
EUR 11 million increase related to the USD.
Generally Philips does not hedge the foreign exchange exposure arising from equity interests in
non-functional-currency investments in associates and other non-current financial assets.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. As of December\u00a031, 2024, Philips had
outstanding debt of EUR 7,639 million (2023: EUR 7,689 million), which constitutes an inherent
interest rate risk with potential negative impact on financial results. As of December\u00a031, 2024,
Philips held EUR 2,401 million in cash and cash equivalents (2023: EUR 1,869 million), and had total
long-term debt of EUR 7,113 million (2023: EUR 7,035 million) and total short-term debt of EUR
526 million (2023: EUR 654 million). As of December\u00a031, 2024, Philips had a ratio of fixed-rate
long-term debt to total outstanding debt of approximately 93% compared to 89% one year
earlier. Philips debt has a long maturity profile with an average tenor of long-term debt of 5.9 years
with maturities up to 2042.
The following table provides the impact of a 1% increase/decrease of interest rates on the fair
value of the debt and the annualized net interest expenses.
Philips Group
Interest rate sensitivity in millions of EUR
2023
2024
Impact 1% interest rate increase on fair value of fixed-rate long-term debt\u00b9 \u00b2
(283)
(304)
Impact 1% interest rate decrease on fair value of fixed-rate long-term debt\u00b9 \u00b2
284
304
Impact 1% interest rate increase on annualized net interest expense\u00b3
15
23
1The sensitivity analysis conducted shows that if long-term interest rates were to increase/decrease
instantaneously by 1% from their level of December\u00a031, 2024, with all other variables (including foreign
exchange rates) held constant.
2Fixed-rate long-term debt is excluding forward contracts.
3The impact is based on the outstanding net floating-rate position as of December\u00a031, 2024.
Equity price risk
Equity price risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in equity prices.
Philips is a shareholder in some publicly listed companies and as a result is exposed to potential
financial loss through movements in their share prices. The aggregate equity price exposure in such
financial assets amounted to approximately EUR 4 million as of December\u00a031, 2024 (2023: EUR 14
million). Philips does not hold derivatives in the above-mentioned listed companies. Philips also has
shareholdings in several privately-owned companies amounting to EUR 220 million, mainly
consisting of minority stakes in companies in various industries. As a result, Philips is exposed to
potential value adjustments.
Commodity price risk
Commodity price risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in commodity prices.
Philips is a purchaser of certain base metals, precious metals and energy. Philips may hedge certain
commodity price risks using derivative instruments to minimize significant, unanticipated earnings
fluctuations caused by commodity price volatility. As of December\u00a031, 2024 Philips had financial
commodity derivatives outstanding to the value of EUR 6 million (2023
Country risk
Country risk is the risk that political, legal, or economic developments in a single country could
adversely impact performance. The country risk per country is defined as the sum of the equity of
all subsidiaries and associated companies in country cross-border transactions, such as
intercompany loans, accounts receivable from third parties and intercompany accounts receivable.
The country risk is monitored on a regular basis.
As of December\u00a031, 2024, the company had country risk exposure of EUR 13.6 billion in the United
States, EUR 2.3 billion in the Netherlands, EUR 872 million in China (including Hong Kong). Other
countries higher than EUR 500 million are United Kingdom EUR 787 million, Japan EUR 635 million
and Germany EUR 625 million. Other countries with significant exposure are: Israel EUR 301
million, Singapore EUR 221 million, and India EUR 226 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-689": { "value": "
29Details of treasury and other financial risks
Country risk
Country risk is the risk that political, legal, or economic developments in a single country could
adversely impact performance. The country risk per country is defined as the sum of the equity of
all subsidiaries and associated companies in country cross-border transactions, such as
intercompany loans, accounts receivable from third parties and intercompany accounts receivable.
The country risk is monitored on a regular basis.
As of December\u00a031, 2024, the company had country risk exposure of EUR 13.6 billion in the United
States, EUR 2.3 billion in the Netherlands, EUR 872 million in China (including Hong Kong). Other
countries higher than EUR 500 million are United Kingdom EUR 787 million, Japan EUR 635 million
and Germany EUR 625 million. Other countries with significant exposure are: Israel EUR 301
million, Singapore EUR 221 million, and India EUR 226 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfHyperinflationaryReportingExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f-692": { "value": "
30Subsequent events
On January 28, 2025, Philips announced that it has signed an agreement to sell its Emergency Care
Business Unit, which is part of the Connected Care segment, to Bridgefield Capital. The transaction
is subject to the satisfaction of certain closing conditions and receipt of regulatory approval, and is
expected to be completed in the second half of 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:H1FJE8H61JGM1JSGM897", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fn-1": { "value": "
1 Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of
shares for the share dividend in respect of 2023.
", "dimensions": { "concept": "xbrl:note", "noteId": "fn-1", "language": "en" } } } }