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Debt | 12 Months Ended
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Dec. 31, 2021
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Debt [Text Block] | ### 19Debt 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 commercial paper of EUR 300 million in May 2021 and EUR 150 million in July 2021, that was repaid in September 2021. The facility does not have a material adverse change clause, has no financial covenants and no credit-rating-related acceleration possibilities. As of December 31, 2021, Philips did not have any loans outstanding under either facility. As per 9 March 2020, Philips established a Euro Medium-Term Note (EMTN) program, a framework that facilitates the issuance of notes for a total amount up to EUR 10 billion. In 2021 Philips did not issue any new notes under the program. 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, 2019 and 2020 (due 2023, 2024, 2025, 2026, 2028 and 2030) 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. Philips’ outstanding long-term debt do not contain financial covenants. In February 2021, Philips entered into two new bilateral loans amounting to a total of EUR 500 million (EUR 250 million each) with a tenor of up to one year, that were repaid in September 2021. In 2021, Philips also entered into a total amount of EUR 731 million of forward contracts relating to the EUR 1.5 billion share buyback program announced on July 26, 2021, with maturity dates in 2022, 2023 and 2024. A total amount of EUR 745 million of forward contracts matured in 2021, which completed the settlement of the EUR 1.5 billion share buyback program announced on January 29, 2019. In addition, Philips entered into a total amount of EUR 90 million of forward contracts in 2021 relating to the long-term incentive and employee stock purchase plans announced on May 19, 2021, with maturity dates in 2023, and a total amount of EUR 123 million of forward contracts matured in 2021 relating to the company's long-term incentive and employee stock purchase plans announced on October 22, 2018 and January 29, 2020. In March 2020, Philips issued a EUR 500 million fixed-rate sustainability innovation bond due in 2025 with a coupon rate of 1.375%, and a EUR 500 million fixed-rate bond due in 2030 with a coupon rate of 2.000% under the EMTN program. In 2020, Philips entered into a total amount of EUR 745 million of forward contracts to complete the remainder of the EUR 1.5 billion share buyback program announced on January 29, 2019, with maturity dates in 2021. In addition, Philips entered into a total amount of EUR 174 million of forward contracts in 2020 related to the long-term incentive and employee stock purchase plans announced on January 29, 2020, and a total amount of EUR 126 million of forward contracts matured relating to the company's long-term incentive and employee stock purchase plans announced on October 22, 2018. #### Long-term debt The following tables present information about the long-term debt outstanding, its maturity and average interest rates in 2021 and 2020. Philips Group Long-term debt in millions of EUR unless otherwise stated
| amount outstanding in 2021 | 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 | 1,313 |  | 1,313 | 255 | 1,058 | 15.1 | 6.3%
EUR bonds | 3,233 |  | 3,233 | 2,242 | 991 | 4.4 | 1.0%
Forward contracts | 934 | 196 | 738 | 738 |  | 1.6 |
Lease liability | 1,220 | 257 | 963 | 580 | 383 | 4.2 | 2.1%
Bank borrowings | 203 | 1 | 202 | 202 |  | 3.2 | 0.1%
Other long-term debt | 30 | 5 | 26 | 18 | 8 | 8.6 | 3.5%
Long-term debt | 6,933 | 459 | 6,473 | 4,034 | 2,439 | 6.0 | 2.1%
Philips Group Long-term debt in millions of EUR unless otherwise stated
| amount outstanding in 2020 | 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 | 1,210 |  | 1,210 | 122 | 1,088 | 16.1 | 6.3%
EUR bonds | 3,229 |  | 3,229 | 1,494 | 1,735 | 5.4 | 1.0%
Forward contracts | 982 | 869 | 113 | 113 |  | 0.9 |
Lease liability | 1,216 | 267 | 948 | 596 | 352 | 3.9 | 2.1%
Bank borrowings | 205 | 1 | 203 | 3 | 200 | 4.1 | 0.2%
Other long-term debt | 16 | 15 |  |  |  | 1.0 | 0.0%
Long-term debt | 6,857 | 1,153 | 5,705 | 2,329 | 3,376 | 6.3 | 2.0%
##### Bonds The following table presents the amount outstanding and effective rate of bonds. Philips Group Unsecured Bonds in millions of EUR unless otherwise stated
| effective rate | 2020 | 2021
--- | --- | --- | ---
Unsecured EUR Bonds |  |  |
Due 9/06/2023; 1/2% | 0.634% | 500 | 500
Due 5/02/2024; 3/4% | 0.861% | 500 | 500
Due 22/05/2026; 1/2% | 0.608% | 750 | 750
Due 5/02/2028; 1 3/8% | 1.523% | 500 | 500
Due 30/03/2025; 1 3/8% | 1.509% | 500 | 500
Due 30/03/2030; 2% | 2.128% | 500 | 500
Unsecured USD Bonds |  |  |
Due 5/15/2025; 7 3/4% | 7.429% | 51 | 56
Due 6/01/2026; 7 1/5% | 6.885% | 111 | 120
Due 5/15/2025; 7 1/8% | 6.794% | 68 | 74
Due 11/03/2038; 6 7/8% | 7.210% | 591 | 641
Due 3/15/2042; 5% | 5.273% | 407 | 441
Adjustments1) |  | (39) | (37)
Unsecured Bonds |  | 4,439 | 4,545
1)Adjustments related to both EUR and USD bonds and concern bond discounts, premium and transaction costs. ##### Leases The following table presents a reconciliation between the total of future minimum lease payments and their present value. Philips Group Lease liabilities in millions of EUR
| 2020 | 2021
--- | --- | ---
| 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 | 290 | 23 | 267 | 280 | 22 | 257
Between one and five years | 651 | 55 | 596 | 636 | 56 | 580
More than five years | 384 | 31 | 352 | 417 | 34 | 383
Lease liability | 1,325 | 109 | 1,216 | 1,333 | 113 | 1,220
#### Short-term debt Philips Group Short-term debt in millions of EUR
| 2020 | 2021
--- | --- | ---
Short-term bank borrowings | 76 | 47
Current portion of long-term debt | 1,153 | 459
Short-term debt | 1,229 | 506
During 2021, the weighted average interest rate on the bank borrowings was 1.2% (2020: 5.9%). This decrease was mainly driven by the term loan and commercial paper that were issued in 2021 with attractive market interest rates.

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