Philips 2015 Annual Report Download - page 145

Group nancial statements 12.9
Annual Report 2015 145
Philips Group
Environmental provisions in millions of EUR
2013 - 2015
2013 2014 2015
Balance as of January 1 375 311 360
Changes:
Additions 30 29 27
Utilizations (21) (23) (24)
Releases (16) (15) (36)
Changes in discount rate (40) 30 (7)
Accretion 6 8 7
Purchase price allocation adjustment (15) - -
Changes in consolidation - 4 1
Reclassication - - (8)
Translation dierences (8) 16 15
Balance as of December 31 311 360 335
The release of the provision in 2015 originates from
additional insights in relation to factors as the estimated
cost of remediation, changes in regulatory
requirements and eciencies in completion of various
site work phases.
For more details on the environmental remediation
reference is made to note 26, Contingent assets and
liabilities.
Approximately half of this provision is expected to be
utilized within the next ve years. The remaining portion
relates to longer-term remediation activities.
Restructuring-related provisions
Philips Group
Restructuring-related provisions in millions of EUR
2015
Jan. 1,
2015
addi-
tions
uti-
liza-
tions
relea-
ses
other
changes1)
Dec.
31,
2015
Healthcare 48 51 (38) (11) (1) 49
Consumer
Lifestyle 12 30 (6) (3) (1) 32
Lighting 195 84 (106) (25) - 148
Innovation,
Group and
Services 125 29 (39) (49) 2 68
Philips
Group 380 194 (189) (88) - 297
1) Other changes primarily relate to translation dierences and assets
classied as held for sale reclassications
The most signicant projects in 2015
In 2015, restructuring projects at Healthcare mainly took
place in the US and France.
Consumer Lifestyle restructuring projects were mainly
in Italy.
The most signicant restructuring projects were mainly
related to the industrial footprint rationalization
projects in Lighting.
Restructuring projects at Lighting centered on the
conventional lamps industry and Professional Lighting
Solutions, the largest of which took place in France and
Indonesia.
Innovation, Group & Services restructuring projects
were mainly related to Group and Regional
organizations and centered primarily in France and the
Netherlands. The release mainly results from
unforeseen changes to the IT restructuring plan in 2015.
The movements in the provisions and liabilities for
restructuring in 2014 by Sector are presented as follows:
Philips Group
Restructuring-related provisions in millions of EUR
2014
Jan. 1,
2014
addi-
tions
uti-
liza-
tions
relea-
ses
other
changes1)
Dec.
31,
2014
Healthcare 17 67 (27) (9) - 48
Consumer
Lifestyle 21 7 (10) (7) 1 12
Lighting 130 180 (90) (16) (9) 195
Innovation,
Group and
Services 35 110 (15) (5) - 125
Philips
Group 203 364 (142) (37) (8) 380
1) Other changes primarily relate to translation dierences and transfers
between sectors
The most signicant projects in 2014
In 2014, restructuring projects at Healthcare mainly took
place in the US and the Netherlands.
Consumer Lifestyle restructuring projects were mainly
in the Netherlands.
The most signicant 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 Belgium,
the Netherlands and France.
Innovation, Group & Services restructuring projects
mainly were related to IT and group and country
overheads and centered primarily in the Netherlands,
US and Belgium.
The Company expects the provision will be utilized
mainly within the next year.