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Debt | 12 Months Ended
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Dec. 31, 2017
Disclosure of debt [Abstract] |
Disclosure of debt [Text block] | Table of Contents ### Note 18Debt Royal Philips has a USD 2.5 billion Commercial Paper Programme and a EUR 1 billion committed revolving credit facility that can be used for general group purposes, such as a backstop of its Commercial Paper Programme. As of December 31, 2017, Royal Philips did not have any loans outstanding under either facility. The EUR 1 billion committed revolving credit facility was signed effective April 21, 2017, replacing the former EUR 1.8 billion facility of the Company. The new facility has a tenor of five years and contains two 1-year extension options. In line with the previous facility, it does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. The provisions applicable to all corporate USD denominated bonds issued by the Company in March 2008 and March 2012 (due 2022, 2038 and 2042) contain a ‘Change of Control Triggering Event’. If the Company would experience such an event with respect to a series of corporate bonds the Company might be required to offer to purchase the bonds that are still outstanding at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any. Furthermore, the conditions applicable to the EUR denominated corporate bonds issued in 2017 (due 2019 and 2023) contain a similar provision (‘Change of Control Put Event’). Upon the occurrence of such an event, the Company might be required to redeem or purchase any of such bonds at their principal amount together with interest accrued. In January 2017, Philips entered into a USD 1,000 million and EUR 300 million credit facility with a consortium of international banks. Under this credit facility Philips drew USD 1,000 million in January 2017; the facility was used for the early redemption of the 5.750% bonds due 2018 in the aggregate principal amount of USD 1,250 million. In Q2 2017, the drawn amount was repaid in full and the facility was cancelled. In May 2017, EUR 1,341 million of mainly long-term Lighting debt was transferred to liabilities directly associated with assets held for sale. In August 2017, Philips entered into a EUR 1,000 million loan for the purpose of financing The Spectranetics Corporation acquisition and for general purposes. In September 2017, Philips successfully issued EUR 500 million floating-rate bonds due 2019 and EUR 500 million fixed-rate bonds due 2023. The net proceeds of the offering were used for the repayment of the EUR 1,000 million loan entered into August 2017. On June 28, 2017, Royal Philips announced a EUR 1.5 billion share buyback program. Philips started the program in the third quarter of 2017, and intends to complete it in two years. As the program was initiated for capital reduction purposes, Philips intends to cancel all of the shares acquired under the program. Under this program, Royal Philips has entered into a number of forward transactions with a number of financial institutions, to be settled at future dates over the course of the program. Over the second half of 2017, the nominal amount was equal to EUR 998 million. These forward contracts are accounted for as debt. #### Long-term debt Philips Group Long-term debt in millions of EUR unless otherwise stated 2016 - 2017
| (range of) interest rates | average rate of interest | average remaining term (in years) | amount outstanding in 2017 | amount due in 1 year | amount due after 1 year | amount due after 5 years | amount outstanding in 2016
USD bonds | 3.8 - 7.8% | 5.4% | 13.3 | 2,137 |  | 2,137 | 1,305 | 3,608
EUR bonds | 0.0 - 0.5% | 0.3% | 3.7 | 997 |  | 997 | 496 |
Bank borrowings | 0.2 - 11.0% | 1.3% | 2.1 | 190 | 52 | 138 |  | 1,470
Other long-term debt | 0.0 - 2.6% | 0.9% | 1.1 | 20 | 19 | 1 | - | 39
Institutional financing |  |  |  | 3,344 | 71 | 3,273 | 1,801 | 5,117
Finance leases | 0 - 16.1% | 3.4% | 4.8 | 281 | 87 | 195 | 24 | 279
Forward contracts |  |  | 1.2 | 970 | 394 | 576 |  |
Long-term debt |  | 2.8% | 7.6 | 4,595 | 552 | 4,044 | 1,825 | 5,396
Corresponding data of previous year |  | 4.1% | 7.8 | 5,396 | 1,375 | 4,021 | 2,454 | 4,245
The following amounts of long-term debt as of December 31, 2017, are due in the next five years: Philips Group Long-term debt due in the next five years in millions of EUR 2016 - 2017
2018 | 552
2019 | 1,190
2020 | 103
2021 | 80
2022 | 846
Long-term debt | 2,770
Corresponding amount of previous year | 2,942
Philips Group Unsecured Bonds in millions of EUR unless otherwise stated 2016 - 2017
| effective rate | 2016 | 2017
Unsecured EUR Bonds |  |  |
Due 9/06/2023; 1/2% | 0.634% |  | 500
Due 9/06/2019; 3M Euribor +20bps |  |  | 500
Unsecured USD Bonds |  |  |
Due 5/15/25; 7 3/4% | 7.429% | 60 | 53
Due 6/01/26; 7 1/5% | 6.885% | 130 | 114
Due 5/15/25; 7 1/8% | 6.794% | 80 | 70
Due 3/11/18; 5 3/4% 1 ) |  | 1,187 |
Due 3/11/38; 6 7/8% | 7.210% | 758 | 668
Due 3/15/22; 3 3/4% | 3.906% | 949 | 837
Due 3/15/42; 5% | 5.273% | 475 | 418
Adjustments 2 ) |  | ( 31) | ( 26)
Unsecured Bonds |  | 3,608 | 3,134
1)In January 2017, Royal Philips has early redeemed the bond due in 2018 in the aggregate principal amount of USD 1,250 million. 2)Adjustments relate to both EUR and USD bonds and concern bond discounts and premium, transactions costs and fair value adjustments for interest rate derivatives. ##### Finance lease liabilities The below table discloses the reconciliation between the total of future minimum lease payments and their present value. Philips Group Finance lease liabilities in millions of EUR 2016 - 2017
| 2016 | 2017
| future minimum lease payments | interest | present value of minimum lease payments | future minimum lease payments | interest | present value of minimum lease payments
Less than one year | 93 | 8 | 85 | 93 | 6 | 87
Between one and five years | 181 | 15 | 166 | 184 | 14 | 170
More than five years | 33 | 5 | 28 | 29 | 4 | 24
Finance lease | 307 | 28 | 279 | 306 | 24 | 281
#### Short-term debt Philips Group Short-term debt in millions of EUR 2016 - 2017
| 2016 | 2017
Short-term bank borrowings | 207 | 71
Forward contracts |  | 49
Other short-term loans | 3 |
Current portion of long-term debt | 1,375 | 552
Short-term debt | 1,585 | 672
During 2017, the weighted average interest rate on the bank borrowings was 3.3% (2016: 5.4%). The decrease was mainly driven by a repayment of debt in Q4 2016 with high interest rate.

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