Goodwill (Tables)

12 Months Ended

Dec. 31, 2017

Philips Group

Goodwill

in millions of EUR

2016 - 2017

	2016	2017
Balance as of January 1:
Cost	10,704	11,151
Impairments	( 2,181)	( 2,253)
Book value	8,523	8,898
Changes in book value:
Acquisitions	140	1,548
Divestments and transfers to assets classified as held for sale	( 13)	( 1,878)
Translation differences and other	248	( 836)
Balance as of December 31:
Cost	11,151	9,074
Impairments	( 2,253)	( 1,343)
Book value	8,898	7,731

Goodwill allocated to the cash-generating units [Text block]

Philips Group

Goodwill allocated to the cash-generating units

in millions of EUR

2016 - 2017

	2016	2017
Image-Guided Therapy	1,106	2,242
Patient Care & Monitoring Solutions	1,506	1,349
Sleep & Respiratory Care	1,958	1,819
Professional	1,671
Other (units carrying a non-significant goodwill balance)	2,657	2,321
Book value	8,898	7,731

Key assumptions and sensitivity analysis [Text block]

Philips Group

Key assumptions

in %

2017

	compound sales growth rate ¹ ⁾
	initial forecast period	extra-polation period ² ⁾	used to calculate terminal value ³ ⁾	pre-tax discount rates
Image-Guided Therapy	5.3	4.0	2.3	10.9
Patient Care & Monitoring Solutions	3.8	4.8	2.3	12.3
Sleep & Respiratory Care	7.2	5.6	2.3	12.1

¹⁾ Compound sales growth rate is the annualized steady growth rate over the forecast period

²⁾ Also referred to later in the text as compound long-term sales growth rate

³⁾ The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation

Philips Group

Key assumptions

in %

2016

	compound sales growth rate ¹ ⁾
	initial forecast period	extra-polation period ² ⁾	used to calculate terminal value ³ ⁾	pre-tax discount rates
Image-Guided Therapy	7.1	5.6	2.7	12.1
Patient Care & Monitoring Solutions	6.4	4.6	2.7	14.3
Sleep & Respiratory Care	6.8	4.6	2.7	12.6
Professional	5.0	4.3	2.7	13.9

¹⁾ Compound sales growth rate is the annualized steady growth rate over the forecast period

²⁾ Also referred to later in the text as compound long-term sales growth rate

³⁾ The historical long-term growth rate is only applied to the first year after the 5 year extrapolation period, after which no further growth is assumed for the terminal value calculation