XML 147 R13.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income from operations | 12 Months Ended
--- | ---
Dec. 31, 2019
Income from operations [Abstract] |
Disclosure of income from operations [Text block] | ### 6Income from operations For information related to Sales on a segment and geographical basis, see Information by segment and main country. Philips Group Sales and costs by nature in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Sales | 17,780 | 18,121 | 19,482
Costs of materials used | (4,918) | (4,826) | (5,321)
Employee benefit expenses | (5,824) | (5,827) | (6,307)
Depreciation and amortization1)2) | (1,025) | (1,089) | (1,402)
Shipping and handling | (602) | (605) | (636)
Advertising and promotion | (939) | (937) | (972)
Lease expense2)3)4) | (227) | (225) | (52)
Other operational costs5) | (2,804) | (2,947) | (3,114)
Other business income (expenses) | 76 | 55 | (34)
Income from operations | 1,517 | 1,719 | 1,644
1)Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible assets excluding goodwill 2)Impact of IFRS 16 adoption. Reference is made to Significant accounting policies and Property, plant and equipment 3)For 2019 Lease expense relating to short-term and low value leases amounts to EUR 52 million. 4)Lease expense includes other costs, such as fuel and electricity, and taxes to be paid and reimbursed to the lessor for 2018: EUR 32 million and for 2017: EUR 38 million; for 2019 please refer to footnote 3 5)Other operational costs contain items which are dissimilar in nature and individually insignificant in amount to disclose separately. These costs contain among others expenses for outsourcing services, mainly in IT and HR, 3rd party workers, consultants, warranty, patents, costs for travelling, external legal services and EUR 94 million government grants recognized in 2019 (2018: EUR 81 million, 2017: EUR 90 million). The grants mainly relate to research and development activities and business development. #### Sales composition and disaggregation Philips Group Sales composition in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Goods | 13,974 | 13,973 | 14,810
Services | 3,477 | 3,325 | 3,811
Royalties | 329 | 402 | 381
Total sales from contracts with customers | 17,780 | 17,700 | 19,003
Other sources1) |  | 421 | 479
Sales | 17,780 | 18,121 | 19,482
1)Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million (2018: EUR 273 million) At December 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations from a sale of goods and services was EUR 11,692 million. The company expects to recognize approximately 49% of the remaining performance obligations within 1 year. Revenue expected to be recognized beyond 1 year is mostly related to longer term customer service and software contracts. Philips Group Disaggregation of Sale per segment in millions of EUR 2019
| 2019
--- | ---
| Sales at a point in time | Sales over time | Total sales from contracts with customers | Sales from other sources1) | Total sales2)
Diagnosis & Treatment | 5,428 | 2,988 | 8,417 | 68 | 8,485
Connected Care | 3,545 | 718 | 4,263 | 411 | 4,674
Personal Health | 5,848 | 6 | 5,854 | - | 5,854
Other | 162 | 308 | 469 | - | 469
Philips Group | 14,982 | 4,021 | 19,003 | 479 | 19,482
1)Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million 2)Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sale per segment in millions of EUR 2017-2018
| 2017 | 2018
--- | --- | ---
| Total sales | Sales at a point in time | Sales over time | Total sales from contracts with customers | Sales from other sources1) | Total sales2)
Diagnosis & Treatment | 7,365 | 5,034 | 2,631 | 7,665 | 61 | 7,726
Connected Care | 4,331 | 3,351 | 630 | 3,981 | 360 | 4,341
Personal Health | 5,685 | 5,519 | 5 | 5,524 | - | 5,524
Other | 400 | 282 | 249 | 530 | - | 530
Philips Group | 17,780 | 14,186 | 3,514 | 17,700 | 421 | 18,121
1)Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million 2)Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2019
| 2019
--- | ---
| Sales at a point in time | Sales over time | Total sales from contracts with customers | Sales from other sources1) | Total sales2)
Western Europe | 3,165 | 931 | 4,096 | 38 | 4,134
North America | 4,944 | 1,894 | 6,837 | 114 | 6,951
Other mature geographies | 1,226 | 357 | 1,583 | 322 | 1,905
Total mature geographies | 9,335 | 3,181 | 12,515 | 474 | 12,990
Growth geographies | 5,647 | 840 | 6,488 | 5 | 6,492
Sales | 14,982 | 4,021 | 19,003 | 479 | 19,482
1)Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 307 million 2)Represents revenue from external customers as required by IFRS 8 Operating Segments. Philips Group Disaggregation of Sales per geographical cluster in millions of EUR 2017 - 2018
| 2017 | 2018
--- | --- | ---
| Total sales | Sales at a point in time | Sales over time | Total sales from contracts with customers | Sales from other sources1) | Total sales2)
Western Europe | 3,802 | 3,174 | 780 | 3,955 | 35 | 3,990
North America | 6,409 | 4,542 | 1,696 | 6,238 | 100 | 6,338
Other mature geographies | 1,707 | 1,270 | 339 | 1,609 | 283 | 1,892
Total mature geographies | 11,918 | 8,987 | 2,815 | 11,802 | 418 | 12,221
Growth geographies | 5,862 | 5,199 | 700 | 5,898 | 2 | 5,901
Sales | 17,780 | 14,186 | 3,514 | 17,700 | 421 | 18,121
1)Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 273 million 2)Represents revenue from external customers as required by IFRS 8 Operating Segments. #### Costs of materials used Cost of materials used represents the inventory recognized in cost of sales. #### Employee benefit expenses Philips Group Employee benefit expenses in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Salaries and wages1) | 4,856 | 4,849 | 5,251
Post-employment benefits costs | 347 | 351 | 379
Other social security and similar charges: |  |  |
- Required by law | 514 | 524 | 564
- Voluntary | 108 | 103 | 112
Employee benefit expenses | 5,824 | 5,827 | 6,307
1)Salaries and wages includes EUR 105 million (2018: EUR 102 million, 2017: EUR 122 million) of share-based compensation expenses. The employee benefit expenses relate to employees who are working on the payroll of Philips, both with permanent and temporary contracts. For further information on post-employment benefit costs, see Post-employment benefits. For details on the remuneration of the members of the Board of Management and the Supervisory Board, see Information on remuneration. #### Employees The average number of employees by category is summarized as follows: Philips Group Employees in FTEs 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Production | 27,697 | 30,774 | 35,640
Research & development | 9,787 | 10,700 | 12,287
Other | 26,314 | 26,175 | 24,301
Employees | 63,798 | 67,649 | 72,228
3rd party workers | 8,098 | 7,239 | 6,164
Continuing operations | 71,895 | 74,888 | 78,392
Discontinued operations | 43,497 |  |
Philips Group | 115,392 | 74,888 | 78,392
Employees consist of those persons working on the payroll of Philips and whose costs are reflected in the Employee benefit expenses table. 3rd party workers consist of personnel hired on a per-period basis, via external companies. Philips Group Employees per geographical location in FTEs 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Netherlands | 11,308 | 11,427 | 11,679
Other countries | 60,587 | 63,460 | 66,713
Continuing operations | 71,895 | 74,888 | 78,392
Discontinued operations | 43,497 |  |
Philips Group | 115,392 | 74,888 | 78,392
#### Depreciation and amortization Depreciation of property, plant and equipment and amortization of intangible assets, including impairments, are as follows: Philips Group Depreciation and amortization1)2) in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Depreciation of property, plant and equipment | 437 | 438 | 645
Amortization of software | 50 | 64 | 75
Amortization of other intangible assets | 260 | 347 | 350
Amortization of development costs | 277 | 240 | 332
Depreciation and amortization | 1,025 | 1,089 | 1,402
1)Impact of IFRS 16 adoption. Reference is made to Significant accounting policies and Property, plant and equipment 2)Includes impairments; for impairment values please refer to Property, plant and equipment and Intangible assets excluding goodwill Depreciation of property, plant and equipment is primarily included in cost of sales. Amortization of the categories of other intangible assets are reported in selling expenses for brand names and customer relationships and are reported in cost of sales for technology based and other intangible assets. Amortization of development cost is included in research and development expenses. #### Shipping and handling Shipping and handling costs are included in cost of sales and selling expenses in Consolidated statements of income. Further information on when costs are to be reported to cost of sales or selling expenses can be found in Significant accounting policies. #### Advertising and promotion Advertising and promotion costs are included in selling expenses in Consolidated statements of income. #### Audit fees The table below shows the fees attributable to the fiscal years 2017, 2018 and 2019 for services rendered by the respective Group auditors. Philips Group Agreed fees in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
| EY NL1) | EY Network | Total | EY NL1) | EY Network | Total | EY NL1) | EY Network | Total
Audit fees | 9.0 | 8.9 | 17.9 | 7.2 | 5.0 | 12.2 | 8.4 | 6.0 | 14.4
-consolidated financial statements | 9.0 | 4.4 | 13.4 | 7.2 | 2.4 | 9.6 | 8.4 | 3.4 | 11.8
-statutory financial statements |  | 4.5 | 4.5 |  | 2.6 | 2.6 |  | 2.6 | 2.6
Audit-related fees2) | 0.8 | 0.7 | 1.5 | 0.6 | 0.4 | 1.0 | 0.5 | 0.2 | 0.7
-Sustainability assurance | 0.7 |  | 0.7 | 0.4 |  | 0.4 | 0.4 |  | 0.4
-Other | 0.1 | 0.7 | 0.8 | 0.2 | 0.4 | 0.6 | 0.1 | 0.2 | 0.3
Fees | 9.7 | 9.6 | 19.4 | 7.8 | 5.4 | 13.2 | 8.9 | 6.2 | 15.1
1)Ernst & Young Accountants LLP 2)Also known as Assurance fees #### Other business income (expenses) Other business income (expenses) consists of the following: Philips Group Other business income (expenses) in millions of EUR 2017 - 2019
| 2017 | 2018 | 2019
--- | --- | --- | ---
Result on disposal of businesses: |  |  |
- income | 15 | 45 | 69
- expense | (5) | - | (2)
Result on disposal of fixed assets: |  |  |
- income | 96 | 20 | 5
- expense | (1) | (1) | -
Result on other remaining businesses: |  |  |
- income | 41 | 23 | 81
- expense | (62) | (32) | (88)
Impairment of goodwill1) | (9) |  | (97)
Other business income (expense) | 76 | 55 | (34)
Total other business income | 152 | 88 | 155
Total other business expense | (76) | (33) | (188)
1)Further information on goodwill movement can be found in Goodwill The result on disposal of businesses was mainly due to divestment of non-strategic businesses. The result on disposal of fixed assets was mainly due to sale of real estate assets. The result on other remaining businesses mainly relates to revaluation of contingent consideration, non-core revenue and various legal matters. For more information, please refer to Acquisitions and divestments.

X
- References No definition available. + Details
Name: | phg_DisclosureIncomeFromOperationsTextBlock
Namespace Prefix: | phg_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | phg_IncomeFromOperationsAbstract
Namespace Prefix: | phg_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration