XML 180 R25.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Debt | 12 Months Ended
--- | ---
Dec. 31, 2019
Debt [Abstract] |
Disclosure of debt [Text block] | ### 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, such as a backstop of its Commercial Paper Program. Philips issued and repaid commercial paper in 2019. As of December 31, 2019, Philips did not have any loans outstanding under either facility. In February 2019, Philips successfully exercised, with existing terms and conditions, the second of two 1-year extension options of its EUR 1 billion committed standby revolving credit facility, extending the maturity date to April 21, 2024. The facility does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. 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 ‘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, 2018 and 2019 (due 2023, 2024, 2026 and 2028) 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. As of January 1, 2019 lease liabilities of EUR 803 million were recognized upon the adoption of IFRS 16 and additional lease liabilities of EUR 256 million were recognized through December 31, 2019. For further details please refer to Significant accounting policies. In May 2019, Philips issued a fixed-rate Green Innovation Bond with an aggregate principal amount of EUR 750 million (0.500%, due 2026). In September 2019, EUR bonds of EUR 500 million were repaid upon their scheduled maturity. In 2019, a total nominal amount of EUR 576 million of forward contracts matured relating to the EUR 1.5 billion share buyback program announced on June 28. 2017. In addition, a total nominal amount of EUR 130 million of forward contracts matured relating to the company's long-term incentive and employee stock purchase plans. In March 2018, Philips refinanced a loan of EUR 178 million with a new long-term loan of EUR 200 million bearing interest based on 6-month Euribor. In April 2018, Philips completed the early redemption of all the 3.750% USD bonds due 2022 with an aggregate principal amount of USD 1 billion, resulting in financial charges of EUR 24 million. For the purpose of the redemption, a EUR 900 million loan was entered into, which was repaid in May 2018 through the issuance of fixed-rate EUR bonds with an aggregate principal amount of EUR 1 billion (EUR 500 million0.750% due 2024 and EUR 500 million1.375% due 2028). 6.875% USD bonds due 2038 with an aggregate principal amount of USD 56 million and USD 16 million were redeemed in May and June 2018 respectively, resulting in financial charges of EUR 21 million. In Q4 2018, a nominal amount of EUR 423 million of forward contracts related to the EUR 1.5 billion share buyback program announced on June 28, 2017 matured. In addition, in Q4 2018, Philips entered into three tranches of forward purchases totaling 10 million shares for a nominal amount of EUR 319 million maturing through 2021 to cover its long-term incentive and employee stock purchase plans. #### Long-term debt The below tables present information about the long-term debt outstanding, its maturity and average interest rates in 2019 and 2018. Philips Group Long-term debt in millions of EUR unless otherwise stated 2019
| amount outstanding in 2019 | 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 | 1,328 |  | 1,328 |  | 1,328 | 17.1 | 6.3%
EUR bonds | 2,234 |  | 2,234 | 995 | 1,239 | 5.8 | 0.8%
Forward contracts | 188 | 126 | 62 | 62 |  | 1.2 |
Lease liability | 1,381 | 272 | 1,109 | 618 | 491 | 4.3 | 2.4%
Bank borrowings | 206 | 1 | 205 | 5 | 200 | 5.1 | 0.3%
Other long-term debt | 17 | 17 |  |  |  | 1.0 | 1.8%
Long-term debt | 5,355 | 416 | 4,939 | 1,681 | 3,258 | 8.0 | 2.5%
Philips Group Long-term debt in millions of EUR unless otherwise stated 2018
| amount outstanding in 2018 | 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 | 1,303 |  | 1,303 |  | 1,303 | 18.1 | 6.3%
EUR bonds | 1,988 | 500 | 1,488 | 497 | 991 | 5.0 | 0.7%
Forward contracts | 807 | 618 | 188 | 188 |  | 0.8 |
Finance leases | 330 | 94 | 236 | 190 | 46 | 3.6 | 2.9%
Bank borrowings | 211 |  | 211 | 6 | 205 | 6.2 | 0.3%
Other long-term debt | 18 | 18 | - | - | - | 1.1 | 1.6%
Long-term debt | 4,657 | 1,230 | 3,427 | 882 | 2,545 | 7.9 | 2.3%
##### Bonds The below table discloses the amount outstanding and effective rate of bonds. Philips Group Unsecured Bonds in millions of EUR unless otherwise stated 2018 - 2019
| effective rate | 2018 | 2019
--- | --- | --- | ---
Unsecured EUR Bonds |  |  |
Due 9/06/2023; 1/2% | 0.634% | 500 | 500
Due 9/06/2019; 3M Euribor +20bps |  | 500 |
Due 5/02/2024; 3/4% | 0.861% | 500 | 500
Due 22/05/2026; 1/2% | 0.608% |  | 750
Due 5/02/2028; 1 3/8% | 1.523% | 500 | 500
Unsecured USD Bonds |  |  |
Due 5/15/2025; 7 3/4% | 7.429% | 55 | 56
Due 6/01/2026; 7 1/5% | 6.885% | 119 | 122
Due 5/15/2025; 7 1/8% | 6.794% | 74 | 75
Due 11/03/2038; 6 7/8% | 7.210% | 636 | 648
Due 3/15/2042; 5% | 5.273% | 438 | 446
Adjustments1) |  | (31) | (35)
Unsecured Bonds |  | 3,291 | 3,562
1)Adjustments related to both EUR and USD bonds and concern bond discounts, premium and transaction costs. ##### Leases The table below discloses the reconciliation between the total of future minimum lease payments and their present value. For further information regarding the adoption of IFRS 16, please refer to Significant accounting policies. Philips Group Lease liabilities in millions of EUR 2018 - 2019
| 2018 | 2019
--- | --- | ---
| 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 | 100 | 6 | 94 | 292 | 20 | 272
Between one and five years | 206 | 16 | 190 | 698 | 80 | 618
More than five years | 52 | 6 | 46 | 543 | 52 | 491
Lease liability | 357 | 28 | 330 | 1,533 | 152 | 1,381
#### Short-term debt Philips Group Short-term debt in millions of EUR 2018 - 2019
| 2018 | 2019
--- | --- | ---
Short-term bank borrowings | 76 | 92
Forward contracts | 88 |
Current portion of long-term debt | 1,230 | 416
Short-term debt | 1,394 | 508
During 2019, the weighted average interest rate on the bank borrowings was 14.2% (2018: 15.0%), reflecting a higher relative amount of borrowings in high interest rate countries.

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

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