IFRS 15, paras 114-115, B87-B89, disaggregation of revenue

Koninklijke Philips N.V. – Annual report – 31 December 2020

Industry: manufacturing

7 Income from operations (extract)

Sales composition and disaggregation

1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 325 million (2019: EUR 307 million)

At December 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations from a sale of goods and services was EUR 12,193 million. The company expects to recognize approximately 48% 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.

1) Other sources mainly relates to leases, including sublease income from right-of-use assets and related services of EUR 325 million.

2) Represents revenue from external customers as required by IFRS 8 Operating Segments.