3Discontinued operations and assets classified as held for sale

In 2019, Discontinued operations consist primarily of certain other divestments formerly reported as discontinued operations. The below table summarizes the discontinued operations, net of income taxes results reported in the consolidated statements of income.

Philips Group

Discontinued operations, net of income taxes

in millions of EUR

2017 - 2019

	2017	2018	2019
Signify	896	(198)
The combined Lumileds and Automotive businesses	(29)	12
Other	(24)	(27)	(19)
Discontinued operations, net of income taxes	843	(213)	(19)

As explained below, in 2019, there were no results from discontinued operations for Signify and combined Lumileds and Automotive businesses.

Signify

As from December 31, 2018, Philips was no longer able to exercise significant influence with respect to Signify. The results related to Philips' retained interest in Signify until the moment the company lost significant influence were recognized in discontinued operations. These results related to an overall EUR 198 million loss, which reflected dividends received of EUR 32 million and a loss due to value adjustments of EUR 218 million.

As of December 31, 2018 the remaining shareholding in Signify was part of continued operations. For further details, please refer to Other financial assets.

The following table summarizes the results of Signify included in the Consolidated statements of income as discontinued operations.

Results of Signify

in millions of EUR

2017 - 2018

	2017	2018
Sales	6,319
Costs and expenses	(5,776)	(18)
Result on the deconsolidation of discontinued operations	538
Fair value adjustment retained interest	(104)	(218)
Dividend income		32
Income before tax	977	(204)
Income tax expense	(150)	7
Income tax on the deconsolidation of discontinued operations	61
US Tax Cuts and Jobs Act	8
Results from discontinued operations	896	(198)

Discontinued operations: Combined Lumileds and Automotive businesses

On June 30, 2017, Philips completed the sale of an 80.1% interest in the combined Lumileds and Automotive businesses to certain funds managed by affiliates of Apollo Global Management, LLC. In the first quarter of 2018 we reached a final settlement resulting in a gain of EUR 8 million.

The combined businesses of Lumileds and Automotive were reported as discontinued operations as from the end of November 2014.

For details on the retained interest in the combined Lumileds and Automotive businesses we refer to Other financial assets.

The following table summarizes the results of the combined businesses of Lumileds and Automotive in the Consolidated statements of income as discontinued operations.

Philips Group

Results of combined Lumileds and Automotive businesses

in millions of EUR

2017 - 2018

	2017	2018
Sales	804
Costs and expenses	(630)	5
Result on the sale of discontinued operations	(98)	8
Income before tax	76	13
Income tax expense	(25)	(1)
Income tax on the sale of discontinued operations	26
US Tax Cuts and Jobs Act	(107)
Results from discontinued operations	(29)	12

Discontinued operations: Other

Certain costs related to other divestments, which were previously reported as discontinued operations, resulted in a net loss of EUR 19 million in 2019 (2018: a net loss of EUR 27 million; 2017: a net loss of EUR 24 million) .

Discontinued operations cash flows

The following table presents the net cash flows of operating, investing and financing activities reported in the Consolidated cash flow statements related to discontinued operations.

Discontinued operations cash flows

in millions of EUR

2017 - 2019

	2017	2018	2019
Cash flows from operating activities	350	(15)	(11)
Cash flows from investing activities	856	662	(14)
Cash flows from financing activities	(144)
Total discontinued operations cash flows	1,063	647	(25)

In 2019, net cash used for discontinued operations consists primarily of settlements related to divestment formerly reported as discontinued operations.

In 2018, discontinued operations cash flows mainly include EUR 642 million related to the sale of Signify shares and dividend received from Signify reported in investing activities. The sale of Signify shares in 2017 (prior to losing control) are included in cash flows from financing activities of continuing operations.

In 2017, cash flows from operating activities reflect the period prior to the divestment of the combined Lumileds and Automotive businesses (six months of cash flows) and prior to the deconsolidation of Signify (eleven months of cash flows). In 2017, cash flows from investing activities includes the net cash outflow related to the deconsolidation of Signify of EUR 175 million, consisting of EUR 545 million proceeds from the sale of shares on November 28, 2017, offset by the deconsolidation of EUR 720 million of cash and cash equivalents, and proceeds of EUR 1,067 million received from the sale of the combined Lumileds and Automotive businesses.

Assets classified as held for sale

As of December 31, 2019, assets held for sale consisted of property, plant and equipment for an amount of EUR 13 million.

As of December 31, 2018, assets held for sale consisted of property, plant and equipment for an amount of EUR 23 million, and assets and liabilities directly associated with assets-held-for-sale businesses of EUR 52 million.

As of December 31, 2017, assets held for sale consisted of the retained interest in Signify for an amount of EUR 1,264 million, property, plant and equipment for an amount of EUR 40 million, and assets and liabilities directly associated with assets held for sale businesses of EUR 44 million.