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Provisions | 12 Months Ended
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Dec. 31, 2017
Disclosure of provisions [Abstract] |
Disclosure of provisions [Text block] | Table of Contents ### Note 19Provisions Philips Group Provisions in millions of EUR 2016 - 2017
| 2016 | 2017
| long-term | short-term | total | long-term | short-term | total
Post-employment benefit 20 | 1,996 |  | 1,996 | 973 |  | 973
Product warranty | 66 | 193 | 259 | 44 | 157 | 201
Environmental provisions | 252 | 69 | 321 | 140 | 19 | 160
Restructuring-related provisions | 27 | 174 | 201 | 25 | 87 | 112
Litigation provisions | 40 | 56 | 96 | 26 | 24 | 50
Other provisions | 545 | 188 | 733 | 451 | 113 | 564
Provisions | 2,926 | 680 | 3,606 | 1,659 | 400 | 2,059
#### Product warranty The provisions for product warranty reflect the estimated costs of replacement and free-of-charge services that will be incurred by the Company with respect to products sold. The Company expects the provisions to be utilized mainly within the next year. Philips Group Provisions for product warranty in millions of EUR 2015 - 2017
| 2015 | 2016 | 2017
Balance as of January 1 | 302 | 289 | 259
Changes: |  |  |
Additions | 327 | 325 | 283
Utilizations | ( 357) | ( 357) | ( 270)
Transfer to liabilities directly associated with assets held for sale |  |  | ( 56)
Translation differences and other | 17 | 2 | ( 16)
Balance as of December 31 | 289 | 259 | 201
#### Environmental provisions The environmental provisions include accrued costs recorded with respect to environmental remediation in various countries. In the United States, subsidiaries of the Company have been named as potentially responsible parties in state and federal proceedings for the clean-up of certain sites. Provisions for environmental remediation can change significantly due to the emergence of additional information regarding the extent or nature of the contamination, the need to utilize alternative technologies, actions by regulatory authorities as well as changes in judgments and discount rates. Approximately EUR 55 million is expected to be utilized within the next five years, with the remainder being long term. For more details on the environmental remediation reference is made to Contingent assets and liabilities. Philips Group Environmental provisions in millions of EUR 2015 - 2017
| 2015 | 2016 | 2017
Balance as of January 1 | 360 | 335 | 321
Changes: |  |  |
Additions | 27 | 18 | 18
Utilizations | ( 24) | ( 24) | ( 21)
Releases | ( 36) | ( 36) | ( 8)
Changes in discount rate | ( 7) | 11 | 11
Accretion | 7 | 7 | 6
Translation differences and other | 8 | 10 | ( 20)
Transfer to liabilities directly associated with assets held for sale |  |  | ( 146)
Balance as of December 31 | 335 | 321 | 160
The release of the provisions originates from additional insights in relation to factors like the estimated cost of remediation, changes in regulatory requirements and efficiencies in completion of various site work phases. #### Restructuring-related provisions Philips Group Restructuring-related provisions in millions of EUR 2017
| Jan. 1, 2017 | additions | utilizations | releases | other changes 1 ) | Dec. 31, 2017
Personal Health | 5 | 14 | ( 5) | ( 6) | ( 1) | 7
Diagnosis & Treatment | 13 | 46 | ( 16) | ( 5) | ( 1) | 38
Connected Care & Health Informatics | 13 | 27 | ( 12) | ( 6) | ( 1) | 20
HealthTech Other | 37 | 55 | ( 27) | ( 16) | ( 1) | 47
Lighting | 133 | 9 | ( 35) | ( 3) | ( 104) |
Philips Group | 201 | 150 | ( 96) | ( 37) | ( 107) | 112
1) Other changes primarily relate to translation differences and reclassifications to liabilities directly associated with assets held for sale. In 2017, the most significant restructuring projects impacted Diagnosis & Treatment and HealthTech Other businesses and mainly took place in the Netherlands and the US. The restructuring comprised mainly product portfolio rationalization and the reorganization of global support functions. The Company expects the provisions will be utilized mainly within the next year. ##### 2016 The movements in the provisions for restructuring in 2016 by segment are presented as follows: Philips Group Restructuring-related provisions in millions of EUR 2016
| Jan. 1, 2016 | additions | utilizations | releases | other changes 1 ) | Dec. 31, 2016
Personal Health | 32 | 7 | ( 29) | ( 2) | ( 3) | 5
Diagnosis & Treatment | 28 | 11 | ( 19) | ( 6) | ( 1) | 13
Connected Care & Health Informatics | 21 | 11 | ( 14) | ( 6) | 1 | 13
HealthTech Other | 38 | 35 | ( 16) | ( 19) | ( 1) | 37
Lighting | 178 | 95 | ( 118) | ( 27) | 5 | 133
Legacy Items |  | ( 1) | ( 1) | ( 1) | 3 |
Philips Group | 297 | 158 | ( 197) | ( 61) | 4 | 201
1) Other changes primarily relate to translation differences and transfers between segments In 2016, restructuring projects at HealthTech Other mainly took place in the Netherlands. ##### 2015 The movements in the provisions for restructuring in 2015 are presented by segment as follows: Philips Group Restructuring-related provisions in millions of EUR 2015
| Jan. 1, 2015 | additions | utilizations | releases | other changes 1 ) | Dec. 31, 2015
Personal Health | 13 | 30 | ( 7) | ( 4) |  | 32
Diagnosis & Treatment | 29 | 30 | ( 24) | ( 7) |  | 28
Connected Care & Health Informatics | 16 | 20 | ( 12) | ( 3) |  | 21
HealthTech Other | 87 | 25 | ( 32) | ( 41) | ( 1) | 38
Lighting | 235 | 89 | ( 114) | ( 33) | 1 | 178
Legacy Items |  |  |  |  |  |
Philips Group | 380 | 194 | ( 189) | ( 88) |  | 297
1) Other changes primarily relate to translation differences and transfers between segments In 2015, restructuring projects at Diagnosis & Treatment businesses, Connected Care & Health Informatics and HealthTech Other mainly took place in the US and France. Personal Health restructuring projects were mainly in Italy. #### Litigation provisions The Company and certain of its group companies and former group companies are involved as a party in legal proceedings, including regulatory and other governmental proceedings. Philips Group Litigation provisions in millions of EUR 2015 - 2017
| 2015 | 2016 | 2017
Balance as of January 1 | 653 | 578 | 96
Changes: |  |  |
Additions | 66 | 31 | 40
Utilizations 1 ) | ( 186) | ( 313) | ( 52)
Releases | ( 25) | ( 98) | ( 11)
Reclassifications 1 ) | - | ( 125) | 2
Changes in discount rate | 8 | 5 |
Accretion | 12 | 8 | 3
Translation differences | 50 | 10 | ( 7)
Transfer to liabilities directly associated with assets held for sale |  |  | ( 21)
Balance as of December 31 | 578 | 96 | 50
1)The presentation of prior-year information has been reclassified to conform to the current-year presentation ##### The most significant proceedings The majority of the movements in the above schedule related to the Cathode Ray Tube (CRT) antitrust litigation and Masimo Corporation (Masimo) patent litigation. Cathode Ray Tube (CRT) antitrust litigation In 2015, 2016 and 2017, the majority of the movements in relation to the CRT antitrust litigation were utilizations due to the transfer to other liabilities for which the Company was able to reach a settlement. These settlements were subsequently paid out in the respective following year. For more details reference is made to Contingent assets and liabilities. Masimo Corporation (Masimo) patent litigation On October 1, 2014, a jury awarded USD 467 million to Masimo Corporation (Masimo) in a trial held before the United States District Court for the District of Delaware. The decision by the jury completed an initial phase of a three-phase trial regarding a first lawsuit started by Masimo against the Company in 2009. A second lawsuit was started by Masimo against the Company in 2016. Between the two lawsuits, claims were raised by the parties against each other relating to patent infringement and antitrust violations in the field of pulse oximetry. On November 5, 2016, the Company and Masimo entered into a wide-ranging, multi-year business partnership involving both companies’ innovations in patient monitoring and therapy solutions, ending all pending lawsuits between the two companies, including releasing the Company from paying the USD 467 million jury verdict. The Company and Masimo also agreed to: a USD 300 million cash payment by Philips to Masimo; a one-time donation to the Masimo Foundation of USD 5 million to support the Masimo Foundation’s project on patient safety and better outcomes; commitments of the Company with respect to sales targets, marketing and product integration over the coming years of about USD 136 million. Entering into the agreements resulted in a payment of USD 305 million (EUR 280 million) in November 2016, a release of litigation provisions of USD 86 million (EUR 79 million) and a liability reclassification from litigation provisions to other provisions of USD 136 million (EUR 125 million). The utilizations and reclassifications in 2016 mainly related to Masimo. Reclassifications include reclassification from litigation provisions to other provisions. ##### Other The translation differences in the schedule above are mainly explained by the movements in the USD/EUR rate which impacted the litigation provisions denominated in USD. The Company expects to use the provisions mainly within the next three years. #### Other provisions Philips Group Other provisions in millions of EUR 2015 - 2017
| 2015 | 2016 | 2017
Balance as of January 1 | 575 | 604 | 733
Changes: |  |  |
Additions | 198 | 183 | 304
Utilizations | ( 186) | ( 167) | ( 238)
Releases | ( 35) | ( 61) | ( 88)
Reclassification | 14 | 142 | 4
Transfer to liabilities directly associated with assets held for sale |  |  | ( 156)
Accretion | 7 | 8 | -
Acquisitions | 24 | - | 62
Translation differences and other | 7 | 24 | ( 56)
Balance as of December 31 | 604 | 733 | 564
The main elements of other provisions are: provisions for possible taxes/social security of EUR 97 million (2016: EUR 131 million); onerous contract provisions for unfavorable supply contracts as part of divestment transactions, onerous (sub)lease contracts and expected losses on existing projects /orders totaling EUR 31 million (2016: EUR 85 million); provisions for employee jubilee funds EUR 57 million (2016: EUR 84 million); self-insurance provisions of EUR 48 million (2016: EUR 77 million); provisions for decommissioning costs of EUR 32 million (2016: EUR 48 million); provisions for rights of return of EUR 37 million (2016: EUR 46 million); provisions for other employee benefits and obligatory severance payments of EUR 24 million (2016: EUR 38 million); provisions for contingent considerations of EUR 66 million (2016: EUR 11 million); the release in 2017 of EUR 88 million is due to the reassessment of our positions in other provisions. Other provisions are expected to be utilized mainly within the next five years, except for: provisions for employee jubilee funds of which a quarter is expected to be utilized within the next five years; provisions for contingent considerations of which nearly half is expected to be utilized after five years; provisions for decommissioning costs of which over half is expected to be utilized after five years; provisions for rights of return to be utilized mainly within the next year.

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