Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill [Abstract]

Goodwill (Tables), Goodwill [Text Block]

Philips Group

Goodwill

in millions EUR

2018 - 2019

	2018	2019
Balance as of January 1:
Cost	9,074	9,908
Impairments	(1,343)	(1,405)
Book value	7,731	8,503
Changes in book value:
Acquisitions	465	83
Impairments		(97)
Divestments and transfers to assets classified as held for sale	(3)	-
Translation differences and other	310	165
Balance as of December 31:
Cost	9,908	10,182
Impairments	(1,405)	(1,528)
Book value	8,503	8,654

Goodwill (Tables), Goodwill allocated to the cash-generating units [Text Block]

Philips Group

Goodwill allocated to the cash-generating units

in millions of EUR

2018 - 2019

	2018	2019
Image-Guided Therapy	2,357	2,673
Monitoring & Analytics	1,354	1,360
Sleep & Respiratory Care	1,925	2,071
Other (units carrying a non-significant goodwill balance)	2,867	2,550
Book value	8,503	8,654

Goodwill (Tables), Key assumptions [Text Block]

Philips Group

Key assumptions

in %

2019

	compound sales growth rate1)
	initial forecast period	extra-polation period2)	used to calculate terminal value3)	pre-tax discount rates
Image-Guided Therapy	9.3	6.4	2.5	8.8
Monitoring & Analytics	4.6	3.8	2.5	10.1
Sleep & Respiratory Care	8.1	4.8	2.5	9.7

¹⁾Compound sales growth rate is the annualized steady nominal 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 4 year extrapolation period, after which no further growth is assumed for the terminal value calculation

Philips Group

Key assumptions

in %

2018

	compound sales growth rate1)
	initial forecast period	extra-polation period2)	used to calculate terminal value3)	pre-tax discount rates
Image-Guided Therapy	8.1	5.2	2.3	9.3
Patient Care & Monitoring Solutions	6.5	4.0	2.3	9.9
Sleep & Respiratory Care	8.4	4.8	2.3	10.6

¹⁾Compound sales growth rate is the annualized steady nominal 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