Economic indicators

This section provides summarized information on contributions on an accruals basis to the most important economic stakeholders as a basis to drive economic growth. For a full understanding of each of these indicators, please refer to the financial statements and notes in this report.

The total amount of purchased goods and services was EUR 15.1 billion, representing 65% of total revenues of the Philips Group. Of this amount 63% was spent with global suppliers, the remainder with local suppliers. Compared with 2008, spending both in absolute terms and as a percentage of sales decreased, reflecting lower sales and strict cost management.

In 2009 the salaries and wages totaled EUR 5.1 billion. This amount is comparable to 2008 and contains restructuring charges. Please refer to note (3) Income from operations for more information.

Distribution from retained earnings to shareholders amounted to EUR 647 million. This reflects the reduced number of outstanding shares.

Corporate income taxes decreased significantly in 2009 to EUR 100 million, mainly attributable to a net tax benefit related to the recognition of a deferred tax asset for Lumileds and the net effect of lower incidental charges. For a further understanding, please refer to note (5) Income taxes.