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Provisions | 12 Months Ended
--- | ---
Dec. 31, 2019
Provisions [abstract] |
Disclosure of provisions [text block] | ### 19Provisions Philips Group Provisions in millions of EUR 2018 - 2019
| 2018 | 2019
--- | --- | ---
| long-term | short-term | total | long-term | short-term | total
Post-employment benefit (see note 20) | 835 |  | 835 | 824 |  | 824
Product warranty | 37 | 153 | 190 | 38 | 172 | 210
Environmental provisions | 124 | 20 | 144 | 145 | 25 | 170
Restructuring-related provisions | 45 | 68 | 114 | 31 | 125 | 156
Litigation provisions | 17 | 9 | 26 | 14 | 40 | 55
Contingent consideration provisions | 385 | 24 | 409 | 245 | 108 | 354
Other provisions | 345 | 88 | 432 | 305 | 86 | 392
Provisions | 1,788 | 363 | 2,151 | 1,603 | 556 | 2,159
#### Assurance-type product warranty The provisions for assurance-type product warranty reflect the estimated costs of replacement and free-of-charge services that will be incurred by the company with respect to products sold. The company expects the provisions to be utilized mainly within the next year. Philips Group Provisions for assurance-type product warranty in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Balance as of January 1 | 259 | 201 | 190
Changes: |  |  |
Additions | 283 | 248 | 291
Utilizations | (270) | (261) | (274)
Transfer to liabilities directly associated with assets held for sale | (56) |  |
Translation differences and other | (16) | 2 | 3
Balance as of December 31 | 201 | 190 | 210
#### 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 85 million of the long-term provision is expected to be utilized after one to five years, with the remainder after five years. For more details on the environmental remediation reference is made to Contingent assets and liabilities. Philips Group Environmental provisions in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Balance as of January 1 | 321 | 160 | 144
Changes: |  |  |
Additions | 18 | 23 | 20
Utilizations | (21) | (15) | (18)
Releases | (8) | (4) | (1)
Changes in discount rate | 11 | (28) | 9
Accretion | 6 | 5 | 5
Transfer to liabilities directly associated with assets held for sale | (146) |  |
Translation differences and other | (20) | 4 | 12
Balance as of December 31 | 160 | 144 | 170
The additions and the releases of the provisions originate from additional insights in relation to factors like the estimated cost of remediation, changes in regulatory requirements and efficiencies in completion of various site work phases. #### Restructuring-related provisions Philips Group Restructuring-related provisions in millions of EUR 2019
| Jan. 1, 2019 | additions | utilizations | releases | other changes | Dec. 31, 2019
--- | --- | --- | --- | --- | --- | ---
Diagnosis & Treatment | 57 | 51 | (37) | (10) | - | 61
Connected Care | 22 | 33 | (16) | (9) | (2) | 28
Personal Health | 9 | 33 | (12) | (4) | - | 25
Other | 26 | 57 | (31) | (11) | - | 42
Philips Group | 114 | 175 | (97) | (34) | (1) | 156
In 2019, the most significant restructuring projects impacted Diagnostic & Treatment and Other businesses and mainly took place in the Netherlands, US and Germany. 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. ##### 2018 In 2018, the most significant restructuring projects impacted Diagnosis & Treatment, Connected Care & Health Informatics and Other businesses and mainly took place in the Netherlands, Germany and the US. The movements in the provisions for restructuring in 2018 are presented by segment as follows: Philips Group Restructuring-related provision in millions of EUR 2018
| Jan. 1, 2018 | additions | utilizations | releases | Dec. 31, 2018
--- | --- | --- | --- | --- | ---
Diagnosis & Treatment | 45 | 62 | (38) | (12) | 57
Connected Care | 15 | 24 | (10) | (8) | 22
Personal Health | 6 | 8 | (5) | (1) | 9
Other | 45 | 42 | (45) | (16) | 26
Philips Group | 112 | 136 | (98) | (37) | 114
##### 2017 In 2017, the most significant restructuring projects impacted Diagnosis & Treatment and Other businesses and mainly took place in the Netherlands and the US. The movements in the provisions for restructuring in 2017 are presented by segment as follows: Philips Group Restructuring-related provisions in millions of EUR 2017
| Jan. 1, 2017 | additions | utilizations | releases | other changes1) | Dec. 31, 2017
--- | --- | --- | --- | --- | --- | ---
Diagnosis & Treatment | 16 | 54 | (19) | (5) | (1) | 45
Connected Care | 11 | 24 | (12) | (7) | (1) | 15
Personal Health | 4 | 12 | (4) | (5) | (1) | 6
Other | 37 | 52 | (27) | (16) | (1) | 45
Lighting (now Signify) | 133 | 9 | (35) | (3) | (104) |
Philips Group | 201 | 150 | (96) | (37) | (107) | 112
1)Other changes primarily relate to translation differences and transfers between segments #### Litigation provisions The company and certain of its group companies and former group companies are involved as a party in legal proceedings, including regulatory and other governmental proceedings. Philips Group Litigation provisions in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Balance as of January 1 | 96 | 50 | 26
Changes: |  |  |
Additions | 40 | 17 | 69
Utilizations | (52) | (29) | (36)
Releases | (11) | (11) | (6)
Accretion | 3 | 2 | 2
Transfer to liabilities directly associated with assets held for sale | (21) |  |
Translation differences and other | (5) | (3) | -
Balance as of December 31 | 50 | 26 | 55
##### The most significant proceedings The majority of the movements in the above schedule related to the Cathode Ray Tube (CRT) antitrust litigation. Cathode Ray Tube (CRT) antitrust litigation In 2019 the majority of the movements in relation to the CRT antitrust litigation related to additions. In 2017 and 2018 the majority of the movements 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. ##### Other In 2018 the translation differences in the schedule above are mainly explained by the movements in the BRL/EUR rate which impacted the litigation provisions denominated in BRL. In 2017 the translation differences are mainly explained by the movements in the USD/EUR rate which impacted the litigation provisions denominated in USD. The company expects the provisions to be utilized mainly within the next three years. #### Contingent consideration provisions Philips Group Contingent consideration provisions in millions of EUR 2017-2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Balance as of January 1 | 11 | 66 | 409
Changes: |  |  |
Additions | - | 6 | 32
Utilizations | - | (48) | (44)
Releases | (2) | (1) | (68)
Accretion | 2 | 12 | 14
Acquisitions | 62 | 366 | 6
Translation differences and other | (8) | 9 | 4
Balance as of December 31 | 66 | 409 | 354
The provision for contingent consideration reflects the fair value of the expected payment to former shareholders of an acquiree for the exchange of control if specified future events occur or conditions are met, such as the achievement of certain regulatory milestones or the achievement of certain commercial milestones. The provision for contingent consideration can change significantly due to changes in the estimated achievement of milestones and changes in discount rates. In 2018 the acquisitions through business combinations mainly consists of a provision for contingent consideration of EUR 239 million relating to the acquisition of EPD. For more details on the EPD contingent consideration refer to Fair value of financial assets and liabilities. The company expects the provisions to be utilized mainly within the next five years. #### Other provisions Philips Group Other provisions in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Closing balance as of December 31 | 720 | 499 | 432
IFRS 16 adjustment |  |  | (6)
Opening balance as of January 1 | 720 | 499 | 426
Changes: |  |  |
Additions | 304 | 169 | 143
Utilizations | (238) | (178) | (127)
Releases | (87) | (57) | (61)
Accretion | (2) | 2 | 1
Transferred to liabilities directly associated with assets held for sale | (156) |  |
Translation differences and other | (43) | (3) | 10
Balance as of December 31 | 499 | 432 | 392
The main elements of other provisions are: provisions for possible taxes/social security of EUR 46 million (2018: EUR 65 million); provisions for employee jubilee funds EUR 82 million (2018: EUR 73 million); self-insurance provisions of EUR 47 million (2018: EUR 45 million); provisions for decommissioning costs of EUR 33 million (2018: EUR 32 million); provisions for rights of return of EUR 40 million (2018: EUR 35 million); the releases in 2017, 2018 and 2019 are due to the reassessment of our positions in other provisions; the remaining provisions relate to a variety of positions, for example provision for disability of employees and provision for royalty obligations. The company expects the provisions to be utilized mainly within the next five years, except for: provisions for employee jubilee funds of which half is expected to be utilized after five years; provisions for decommissioning costs of which half is expected to be utilized after five years; provisions for rights of return to be utilized mainly within the next year.

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