Restructuring and impairment charges

In 2014, EBIT included net charges totaling EUR 414 million for restructuring. In addition to the annual goodwill-impairment tests for Philips, trigger-based impairment tests were performed during the year, resulting in a goodwill impairment of EUR 1 million at Healthcare and EUR 2 million at Lighting.

2013 included EUR 84 million of restructuring charges and a goodwill impairment of EUR 26 million at Consumer Luminaires, mainly as a consequence of reduced growth rates resulting from a slower-than-anticipated recovery of certain markets, as well as delays in the introduction of new product ranges.

For further information on sensitivity analysis, please refer to note (11) Goodwill.

In 2014, the most significant restructuring projects related to Lighting and IG&S and were driven by industrial footprint rationalization and the Accelerate! transformation program. Restructuring projects at Lighting centered on Light Sources & Electronics and Professional Lighting Solutions, the largest of which took place in the Belgium, Netherlands and France. Innovation, Group & Services restructuring projects mainly were related to IT and group and country overheads and centered primarily on the Netherlands, US and Belgium. Restructuring projects at Healthcare mainly took place in the US and the Netherlands. Consumer Lifestyle restructuring projects were mainly in the Netherlands.

In 2013, the more significant restructuring projects were related to industrial footprint rationalization at Lighting. The largest projects were centered at Consumer Luminaires and Light Sources & Electronics, mainly in the Unites States, France and Belgium. Innovation Group & Services restructuring projects were largely focused on the Financial Operations Service Units, primarily in Italy, France and the United States. Restructuring projects at Consumer Lifestyle were mainly seen at Personal Care in the Netherlands and Austria and Coffee in Italy.

For further information on restructuring, refer to note (19) Provisions.

Philips Group
Restructuring and related charges in millions of EUR
2012 - 2014
 
2012
2013
2014
Restructuring and related charges per sector:
 
 
 
Healthcare
116
(6)
68
Consumer Lifestyle
38
10
8
Lighting
294
77
225
Innovation, Group & Services
56
3
113
Continuing operations
504
84
414
Discontinued operations
36
33
18
Cost breakdown of restructuring and related charges:
 
 
 
Personnel lay-off costs
414
95
354
Release of provision
(33)
(62)
(36)
Restructuring-related asset impairment
66
25
57
Other restructuring-related costs
57
26
39
Continuing operations
504
84
414
Discontinued operations
36
33
18

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