Receivables are initially measured at fair value and are subsequently measured at amortized cost if held

within a business model with the objective to collect the contractual cash flows, or at fair value through OCI if

held within a business model with the objective of both holding to collect contractual cash flows and selling.

Receivables are de-recognized when the company has transferred substantially all risks and rewards, which

includes transactions in which the company enters into factoring transactions, or if the company does not

Receivables are subject to impairment assessment, which involves estimating expected credit losses. Refer to

Other financial assets for accounting policies on impairment of financial assets.

Non-current receivables are associated mainly with customer financing in the Diagnosis & Treatment segment

amounting (net of allowance) to EUR 84 million (2024: EUR 81 million), insurance receivables in the US

amounting to EUR 28 million (2024: EUR 33 million) and income tax receivables amounting to EUR 19 million

Philips has leasing activities where it acts as lessor. In such arrangements, Philips provides the customer with a

right to use of medical equipment in exchange for a series of payments. Residual values of assets under lease

form an insignificant part of the carrying amount of those assets. Residual values are influenced by asset

market prices and are therefore subject to management estimation. Residual values are at least reassessed on

an annual basis, or more often when necessary. Reassessments are based on a combination of realization of

assets sold, expert knowledge and judgment of local markets. In order to reduce residual value risk exposures

there may be residual value guarantees or purchase options embedded in the customer contract. Credit risk

for lease receivables is reviewed regularly and mitigated, for example, by retaining a security interest in the

The accompanying table sets out a maturity analysis of lease receivables, showing the undiscounted lease

Maturity analysis of lease receivables in millions EUR


	2025	2024
Less than one year	55	33
One to two years	11	20
Two to three years	9	16
Three to four years	8	14
Four to five years	7	12
Over five years	17	19
Total undiscounted lease payments receivable	106	114
Unearned finance income	(10)	(12)
Net investment in lease	96	102

Current receivables of EUR 3,530 million (2024: EUR 3,672 million) as of December 31, 2025, included trade

accounts receivable (net of allowance) of EUR 3,339 million (2024: EUR 3,513 million), accounts receivable

other of EUR 173 million (2024: EUR 134 million), and accounts receivable from investments in associates of


	2025	2024
Diagnosis & Treatment	1,582	1,687
Connected Care	1,043	1,064
Personal Health	562	575
Other	152	187
Trade accounts receivable, net	3,339	3,513

The aging analysis of trade accounts receivable, net, representing current and overdue but not fully impaired


	2025	2024
Current	3,077	3,154
Overdue 1-30 days	54	141
Overdue 31-180 days	171	194
Overdue more than 180 days	37	24
Trade accounts receivable, net	3,339	3,513

The changes in the allowance for doubtful accounts receivable are:


	2025	2024
Balance as of January 1	245	216
Additions charged to expense	37	112
Deductions from allowance ¹	(45)	(88)
Transfer to assets held for sale	(1)	-
Other movements	(43)	5
Balance as of December 31	193	245

1Write-offs for which an allowance was previously provided.

The allowance for doubtful accounts receivable has been established for expected credit losses and is related

primarily to receivables that are past due. The allowance presented also includes the allowance for Non-

current customer finance receivables of EUR 1 million (2024: EUR 8 million). Other movements in the current

period primarily relate to the reclassification of a provision for contractual allowances for certain Connected

Care receivables, as well as the impact of foreign currency remeasurement.

Included in the above balances as of December 31, 2025, are allowances for individually impaired receivables