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Information by segment and main country | 12 Months Ended
--- | ---
Dec. 31, 2023
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 Board of Management of the company). The Board of Management decides how to allocate resources and assesses performance. Reportable segments comprise the operating segments Diagnosis & Treatment, Connected Care and Personal Health. Additionally, besides these reportable segments, segment Other contains the items Innovation & Strategy, IP Royalties, Central costs, and other small items. ###### Accounting estimates and judgments Determining reportable segments requires significant judgment and involves evaluating the information which is reviewed by the Chief Operating Decision-Maker (the Board of Management) to assess performance and allocate resources, in accordance with IFRS 8 'Operating Segments'. The Philips business segments are Diagnosis & Treatment, Connected Care and Personal Health, 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. Philips has realigned the composition of its business segments effective from April 1, 2023. The most notable change is the shift of the previous Enterprise Diagnostic Informatics business from the Diagnosis & Treatment segment to the Connected Care segment. This business, together with other informatics solutions in the Connected Care segment, now forms the Enterprise Informatics business. Accordingly, the comparative figures for the affected segments have been restated. The realignment did not impact the presentation of the business segments or the key segmental performance measure, which continues to be Adjusted EBITA. Philips Group Information on income statements in millions of EUR
| sales | sales including intercompany | depreciation and amortization1) | Adjusted EBITA
--- | --- | --- | --- | ---
2023 |  |  |  |
Diagnosis & Treatment | 8,818 | 9,253 | (306) | 1,026
Connected Care | 5,138 | 5,149 | (445) | 369
Personal Health | 3,602 | 3,685 | (115) | 597
Other | 612 | 428 | (394) | (71)
Inter-segment eliminations |  | (346) |  |
Philips Group | 18,169 | 18,169 | (1,261) | 1,921
2022 |  |  |  |
Diagnosis & Treatment | 8,290 | 8,576 | (417) | 788
Connected Care | 5,268 | 5,280 | (646) | 111
Personal Health | 3,626 | 3,684 | (132) | 538
Other | 643 | 736 | (407) | (119)
Inter-segment eliminations |  | (449) |  |
Philips Group | 17,827 | 17,827 | (1,602) | 1,318
2021 |  |  |  |
Diagnosis & Treatment | 7,825 | 8,023 | (363) | 1,028
Connected Care | 5,371 | 5,388 | (472) | 553
Personal Health | 3,429 | 3,462 | (131) | 590
Other | 530 | 636 | (357) | (117)
Inter-segment eliminations |  | (353) |  |
Philips Group | 17,156 | 17,156 | (1,323) | 2,054
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. Adjusted EBITA represents Income from operations excluding amortization and impairment of acquired intangible assets and impairment of goodwill (EBITA) and 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
--- | --- | --- | --- | --- | ---
2023 |  |  |  |  |
Net Income | (463) |  |  |  |
Discontinued operations, net of income taxes | 10 |  |  |  |
Income taxes | (73) |  |  |  |
Investments in associates, net of income taxes | 98 |  |  |  |
Financial expenses | 376 |  |  |  |
Financial income | (63) |  |  |  |
Income from operations | (115) | 720 | (1,199) | 552 | (188)
Amortization and impairment of acquired intangible assets | 290 | 89 | 178 | 14 | 9
Impairment of goodwill | 8 | 8 | - |  |
EBITA | 183 | 816 | (1,020) | 567 | (179)
Restructuring and acquisition-related charges | 381 | 118 | 115 | 9 | 140
Other items: | 1,358 | 92 | 1,275 | 22 | (32)
Respironics litigation provision | 575 |  | 575 |  |
Respironics field-action connected to the proposed consent decree | 363 |  | 363 |  |
Respironics field-action running remediation costs | 224 |  | 224 |  |
Quality remediation actions | 175 | 81 | 94 |  |
Provision for a legal matter | 31 |  | 31 |  |
Investment re-measurement loss | 23 |  |  | 23 |
Gain on divestment of business | (35) |  |  |  | (35)
Remaining items | 2 | 11 | (12) | (1) | 3
Adjusted EBITA | 1,921 | 1,026 | 369 | 597 | (71)
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 taxes | (113) |  |  |  |
Investments in associates, net of income taxes | 2 |  |  |  |
Financial expenses | 258 |  |  |  |
Financial income | (58) |  |  |  |
Income from operations | (1,529) | 538 | (2,347) | 515 | (235)
Amortization and impairment of acquired intangible assets | 363 | 115 | 226 | 15 | 8
Impairment of goodwill | 1,357 |  | 1,357 |  |
EBITA | 192 | 652 | (764) | 531 | (227)
Restructuring and acquisition-related charges | 202 | 3 | 125 | 11 | 62
Other items: | 925 | 133 | 750 | (4) | 46
Respironics field-action connected to the proposed consent decree | 250 |  | 250 |  |
Respironics field-action running remediation costs | 210 |  | 210 |  |
R&D project impairments | 134 | 73 | 59 | 3 |
Portfolio realignment charges | 109 |  | 109 |  |
Provision for public investigations tender irregularities | 60 | 60 |  |  |
Quality remediation actions | 59 |  | 59 |  |
Impairments of assets in S&RC | 39 |  | 39 |  |
Remaining items | 63 | - | 24 | (6) | 46
Adjusted EBITA | 1,318 | 788 | 111 | 538 | (119)
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 taxes | (103) |  |  |  |
Investments in associates, net of income taxes | 4 |  |  |  |
Financial expenses | 188 |  |  |  |
Financial income | (149) |  |  |  |
Income from operations | 553 | 948 | (716) | 576 | (255)
Amortization and impairment of acquired intangible assets | 322 | 142 | 158 | 15 | 6
Impairment of goodwill | 15 | 2 | 13 |  |
EBITA | 890 | 1,092 | (545) | 591 | (248)
Restructuring and acquisition-related charges | 95 | (30) | 130 | (1) | (5)
Other items: | 1,069 | (35) | 968 | - | 136
Respironics field-action connected to the proposed consent decree | 719 |  | 719 |  |
Respironics field-action running remediation costs | 94 |  | 94 |  |
Quality remediation actions | 94 |  | 94 |  |
Loss on divestment of business | 76 |  |  |  | 76
Remaining items | 87 | (35) | 61 | - | 61
Adjusted EBITA | 2,054 | 1,028 | 553 | 590 | (117)
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)
--- | --- | ---
2023 |  |
Netherlands | 2,390 | 1,624
United States | 7,178 | 11,410
China | 1,408 | 234
Japan | 941 | 407
Germany | 573 | 348
Other countries | 5,679 | 1,527
Total main countries | 18,169 | 15,550
2022 |  |
Netherlands | 2,021 | 1,746
United States | 7,226 | 12,087
China | 1,239 | 260
Japan | 1,011 | 436
Germany | 642 | 323
Other countries | 5,688 | 1,550
Total main countries | 17,827 | 16,402
2021 |  |
Netherlands | 1,860 | 1,934
United States | 6,403 | 12,615
China | 1,400 | 258
Japan | 1,068 | 480
Germany | 970 | 305
France | 446 | 49
India | 431 | 85
United Kingdom | 426 | 567
Other countries | 4,150 | 693
Total main countries | 17,156 | 16,986
1)To better align with the Country Activity and Tax reporting, the allocation of country-level sales was revised from country of destination to country of origin. Comparative information in this table has been restated to be consistent with the current-period presentation.2)Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill

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