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Information by segment and main country | 12 Months Ended
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Dec. 31, 2022
Information by segment and main country [Abstract] |
Information by segment and main country [Text Block] | ### 2Information by segment and main country ###### Accounting policies Segment accounting policies are the same as the accounting policies applied by the company. Operating segments are components of the company’s business activities about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Executive Committee of the company). The Executive Committee decides how to allocate resources and assesses performance. Reportable segments comprise the operating segments Diagnosis & Treatment businesses, Connected Care businesses and Personal Health businesses. Additionally, besides these reportable segments, segment Other contains the items Innovation & Strategy, IP Royalties, Central costs, and other small items. The Philips operating segments are Diagnosis & Treatment businesses, Connected Care businesses and Personal Health businesses, each being responsible for the management of its business worldwide. As of the first quarter of 2021 the Domestic Appliances business was presented as a discontinued operation and therefore no longer part of the Personal Health segment. The comparative results prior to that were restated to reflect the treatment of the Domestic Appliances business as a discontinued operation. Refer to Discontinued operations and assets classified as held for sale. Philips focuses on improving people’s lives through meaningful innovation. The Diagnosis & Treatment segment unites the businesses related to the goal of precision diagnosis and disease pathway selection, and the businesses related to image-guided, minimally invasive treatment. The Connected Care segment focuses on patient care solutions, advanced informatics and analytics, and patient and workflow optimization inside and outside the hospital, and aims to unlock synergies from integrating and optimizing patient care pathways, and leveraging provider-payer-patient business models. The Personal Health segment focuses on healthy living and preventative care. The Executive Committee of Philips is deemed to be the chief operating decision maker (CODM) for segment reporting purposes pursuant to IFRS 8 'Operating Segments'. The key segmental performance measure is Adjusted EBITA, which Management believes is the most relevant measure to evaluate the results of the segments. Philips Group Information on income statements in millions of EUR
| sales | sales including intercompany | depreciation and amortization1) | Adjusted EBITA
--- | --- | --- | --- | ---
2022 |  |  |  |
Diagnosis & Treatment | 9,168 | 9,471 | (559) | 774
Connected Care | 4,403 | 4,441 | (514) | 95
Personal Health | 3,626 | 3,684 | (132) | 538
Other | 629 | 596 | (397) | (89)
Inter-segment eliminations |  | (366) |  |
Philips Group | 17,827 | 17,827 | (1,602) | 1,318
2021 |  |  |  |
Diagnosis & Treatment | 8,635 | 8,846 | (459) | 1,071
Connected Care | 4,573 | 4,617 | (382) | 497
Personal Health | 3,429 | 3,462 | (131) | 590
Other | 519 | 531 | (350) | (105)
Inter-segment eliminations |  | (299) |  |
Philips Group | 17,156 | 17,156 | (1,323) | 2,054
2020 |  |  |  |
Diagnosis & Treatment | 8,175 | 8,289 | (536) | 818
Connected Care | 5,543 | 5,620 | (414) | 1,191
Personal Health | 3,199 | 3,198 | (145) | 433
Other | 396 | 481 | (368) | (165)
Inter-segment eliminations |  | (275) |  |
Philips Group | 17,313 | 17,313 | (1,462) | 2,277
1)Includes impairments (excluding goodwill impairment); for impairment values please refer to Property, plant and equipment and Intangible assets excluding goodwill The term Adjusted EBITA is used to evaluate the performance of Philips and its segments. EBITA represents Income from operations excluding amortization and impairment of acquired intangible assets and impairment of goodwill. Adjusted EBITA represents EBITA excluding gains or losses from restructuring costs, acquisition-related charges and other items. Adjusted EBITA is not a recognized measure of financial performance under IFRS. Presented in the following table is a reconciliation of Adjusted EBITA to the most directly comparable IFRS measure, Net income, for the years indicated. Net income is not allocated to segments as certain income and expense line items are monitored on a centralized basis, resulting in them being shown on a Philips Group level only. Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR
| Philips Group | Diagnosis & Treatment | Connected Care | Personal Health | Other
--- | --- | --- | --- | --- | ---
2022 |  |  |  |  |
Net Income | (1,605) |  |  |  |
Discontinued operations, net of income taxes | (13) |  |  |  |
Income tax expense | (113) |  |  |  |
Investments in associates, net of income taxes | 2 |  |  |  |
Financial expenses | 258 |  |  |  |
Financial income | (58) |  |  |  |
Income from operations | (1,529) | 404 | (2,246) | 515 | (202)
Amortization and impairment of acquired intangible assets | 363 | 143 | 199 | 15 | 7
Impairment of goodwill | 1,357 | 27 | 1,331 |  |
EBITA | 192 | 573 | (716) | 531 | (196)
Restructuring and acquisition-related charges | 202 | 21 | 108 | 11 | 61
Other items: | 925 | 180 | 703 | (4) | 46
Respironics field-action provision | 250 |  | 250 |  |
Respironics field-action running remediation costs | 210 |  | 210 |  |
R&D project impairments | 134 | 120 | 12 | 3 |
Portfolio realignment charges | 109 |  | 109 |  |
Impairment of assets in S&RC | 39 |  | 39 |  |
Provision for public investigations tender irregularities | 60 | 60 |  |  |
Provisions for quality actions in Connected Care | 59 |  | 59 |  |
Remaining items | 63 | - | 24 | (6) | 46
Adjusted EBITA | 1,318 | 774 | 95 | 538 | (89)
Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR
| Philips Group | Diagnosis & Treatment | Connected Care | Personal Health | Other
--- | --- | --- | --- | --- | ---
2021 |  |  |  |  |
Net Income | 3,323 |  |  |  |
Discontinued operations, net of income taxes | (2,711) |  |  |  |
Income tax expense | (103) |  |  |  |
Investments in associates, net of income taxes | 4 |  |  |  |
Financial expenses | 188 |  |  |  |
Financial income | (149) |  |  |  |
Income from operations | 553 | 941 | (722) | 576 | (242)
Amortization and impairment of acquired intangible assets | 322 | 153 | 148 | 15 | 6
Impairment of goodwill | 15 | 2 | 13 |  |
EBITA | 890 | 1,097 | (562) | 591 | (236)
Restructuring and acquisition-related charges | 95 | 7 | 93 | (1) | (5)
Other items: | 1,069 | (32) | 965 | - | 136
Respironics field-action provision | 719 | - | 719 |  | -
Respironics field-action running remediation costs | 94 |  | 94 |  |
Provisions for quality actions in Connected Care | 94 |  | 94 |  |
Loss on divestment of business | 76 |  |  |  | 76
Remaining items | 87 | (32) | 58 | - | 61
Adjusted EBITA | 2,054 | 1,071 | 497 | 590 | (105)
Philips Group Reconciliation from net income to Adjusted EBITA In millions of EUR
| Philips Group | Diagnosis & Treatment | Connected Care | Personal Health | Other
--- | --- | --- | --- | --- | ---
2020 |  |  |  |  |
Net Income | 1,195 |  |  |  |
Discontinued operations, net of income taxes | (196) |  |  |  |
Income tax expense | 212 |  |  |  |
Investments in associates, net of income taxes | 9 |  |  |  |
Financial expenses | 202 |  |  |  |
Financial income | (158) |  |  |  |
Income from operations | 1,264 | 497 | 704 | 362 | (300)
Amortization and impairment of intangible assets | 377 | 209 | 134 | 16 | 18
Impairment of goodwill | 144 | - | 144 |  |
EBITA | 1,784 | 706 | 982 | 378 | (282)
Restructuring and acquisition-related charges | 195 | 29 | 97 | 31 | 37
Other items | 299 | 83 | 112 | 24 | 81
Adjusted EBITA | 2,277 | 818 | 1,191 | 433 | (165)
Transactions between the segments are mainly related to components and parts included in the product portfolio of the other segments. The pricing of such transactions was at cost or determined on an arm’s length basis. Philips has no single external customer that represents 10% or more of sales. Philips Group Main countries in millions of EUR
| sales1) | tangible and intangible assets2)
--- | --- | ---
2022 |  |
Netherlands | 540 | 1,746
United States | 7,246 | 12,087
China | 2,193 | 290
Japan | 1,077 | 436
Germany | 821 | 323
United Kingdom | 463 | 527
France | 400 | 249
Other countries | 5,085 | 744
Total main countries | 17,827 | 16,402
2021 |  |
Netherlands | 570 | 1,934
United States | 6,420 | 12,615
China | 2,335 | 283
Japan | 1,073 | 480
Germany | 839 | 305
United Kingdom | 481 | 567
France | 397 | 49
Other countries | 5,040 | 753
Total main countries | 17,156 | 16,986
2020 |  |
Netherlands | 404 | 1,926
United States | 6,580 | 9,080
China | 2,319 | 313
Japan | 1,113 | 511
Germany | 980 | 302
United Kingdom | 509 | 545
Italy | 383 | 111
Other countries | 5,024 | 906
Total main countries | 17,313 | 13,694
1)The sales are reported based on country of destination. 2)Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill

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