Koninklijke Philips N.V. – Annual report – 31 December 2023
Industry: manufacturing
6 Income from operations (extract)
Sales composition and disaggregation
For information related to sales on a segment and geographical basis, refer to Information by segment and main country, starting on page 149.
Sales of goods include provisions of EUR 174 million that were recognized as a reduction of sales, primarily for (partial) refunds to customers in connection with the proposed Respironics consent decree. Refer to Provisions, starting on page 188.
Total sales from other sources mainly relates to operating leases EUR 234 million (2022: EUR 258 million 2021: EUR 293 million). Sales represent revenue from external customers.
As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations from a sale of goods and services was EUR 15,571 million. The company expects to recognize approximately 47% of the remaining performance obligations within 1 year. Revenue expected to be recognized beyond 1 year is mostly related to longer term customer service and software contracts.
Sales over time represent services and Other also includes royalties over time (2023: EUR 283 million 2022: EUR 292 million 2021: EUR 220 million). Sales per geographic area are reported based on country of destination.
Page 149 extracts
2 Information by segment and main country (extracts)
Accounts examples 