Other liabilities
Dec. 31, 2025
Accounting policies
Other liabilities are initially measured at fair value and subsequently at amortized cost and are derecognized
when the obligation under the liability is discharged, cancelled or has expired.
The company recognizes contract liabilities if a payment is received or a payment is due (whichever is earlier)
from a customer before the company transfers the related goods or services. Contract liabilities are
recognized as revenue when the company performs under the contract (i.e., transfers control of the related
goods or services to the customer).
Other non-current liabilities
Non-current liabilities were EUR 47 million as of December 31, 2025 (December 31, 2024: EUR 167 million),
associated mainly with indemnification and non-current accruals.
Other current liabilities
Other current liabilities are summarized in the accompanying table.
Philips Group
Other current liabilities in millions of EUR
2025 | 2024 | |
Accrued customer rebates | 137 | 169 |
Other taxes including social security premiums | 133 | 115 |
Other liabilities | 126 | 70 |
Other current liabilities | 395 | 354 |
Other liabilities within Other current liabilities are mainly linked to divestment-related obligations in 2025.
Contract liabilities
Non-current contract liabilities were EUR 458 million as of December 31, 2025 (December 31, 2024: EUR 431
million) and current contract liabilities were EUR 1,490 million as of December 31, 2025 (December 31, 2024:
EUR 1,699 million).
The current contract liabilities decreased by EUR 209 million, which is mainly driven by a decrease in deferred
balances for customer service contracts. The current contract liabilities as of December 31, 2024, resulted in
revenue recognized of EUR 1,699 million in 2025.