Page 107 - Loomis Annual Report 2017

Loomis Annual Report 2017
Notes – Group 103
NOTE 34
Contingent liabilities
actions in the years 2007– 2009. The procedure for invoking application of the double taxation agreement was initiated dur- ing the year. Due to the applicable double taxation agreement the future outcome is not expected to have any signi cant effect on the Group’s tax expense.
Similar to several other companies in Spain, Loomis’ Span- ish subsidiary has been under investigation by the Spanish competition authority (CNMC). In November 2016 the author-
ity informed Loomis Spain of its decision. The decision is to impose a ne of EUR 7 million on Loomis Spain for alleged mar- ket sharing. Loomis maintains that it has acted in compliance with the laws in effect and, accordingly, disagrees with the con- tent of the decision and the ne imposed. Loomis has appealed the decision in the Spanish courts. A possible negative outcome is not expected to have a signi cant negative impact on either the Group’s income or nancial position.
SEK m
Dec. 31, 2016
3,262 14 3,276
Dec. 31, 2017
Securities and guarantees Other contingent liabilities Total contingent liabilities
3,235
11
The guarantees in 2017 refer to, amongst other things to a guar- antee of SEK 554 million (558) related to the de ned bene-
t pension plan in the UK and guarantees for insurance com- mitments for Loomis in the USA amounting to SEK 420 million (419). It is dif cult to assess whether these contingent liabilities will result in any nancial out ow.
Loomis AB has also issued guarantees to Loomis Suomi Oy, Loomis Norge AS, Loomis Denmark and Loomis Sverige AB relating to bank loans for cash management operations. For fur- ther information, refer to Note 23.
Other legal proceedings
Some companies within the Loomis Group are involved in tax audits and other legal proceedings that have arisen in the course of operations. Any liability to pay damages in conjunc- tion with legal proceedings is not expected to have a signi cant impact on the Group’s business operations or nancial position.
Over the years Loomis has made a number of acquisitions
in different countries. As a result of these acquisitions, certain contingent liabilities attributable to the acquired operations have been taken over by Loomis. Risks attributable to such contin- gent liabilities are covered by contractual guarantee liabilities, insurances or necessary provisions.
The Spanish tax authorities denied deductions for certain costs (amounting to EUR 24 million) relating to intra-group trans-
NOTE 35 Items not affecting cash ow SEK m
2016
3,246
2017
1,124
55
–1
–33
0
–2
1,143
Depreciation of tangible xed assets and
amortization of intangible assets 1,105
Amortization of acquisition-related intangible assets 62 Items affecting comparability 58 Acquisition-related costs and revenue –108 Financial income 0 Financial expenses 0
Total items not affecting cash ow, items
affecting comparability and acquisition-related
costs and revenue 1,117