Page 113 - Loomis Annual Report 2017

Loomis Annual Report 2017
Notes – Parent Company 109
NOTE 38 Transactions with related parties
Subsidiaries in the Group, board members in the Company’s Board of Directors, the Group Management, as well as close family members to these individuals are regarded as related parties. Related parties are also companies in which a signi cant portion of votes are directly or indirectly controlled by these individuals, or companies in which these individuals can exercise a signi cant in uence.
Transactions with related parties refer to licence fees and other revenue from subsidiaries, dividends from subsidiaries, interest income and interest expenses from and to subsidiaries, as well as receivables and liabilities to and from subsidiaries.
Transactions with other companies within the Loomis Group are listed in the tables below:
Income from other companies within the Loomis Group
SEK m 2016
License fees 443 Interest income 40 Group contributions 91 Dividend 376
Receivables from other companies within the Loomis Group
SEK m 2016
Interest expenses 11
Receivables from other companies within the Loomis Group
NOTE 39 Financial risk management
There is no difference between the carrying amount and estimated fair values of assets and liabilities in Loomis AB’s balance sheet. The fair value of liabilities and currency swaps that are included as hedging instruments in the hedging of net investments amounts to SEK –963 million (–1,634) and SEK 30 million (14) respectively.
Loomis AB uses hedge accounting according to the principle of hedging net investments to limit translation risk. Loomis has two hedges, one with a value of MUSD 155 (242) where the shares in subsidiaries is the hedged item. Loomis has in connection with the acquisition of VIA MAT entered into a hedge in the amount of MCHF 90 (90) where the net investment is the hedged item. The ineffectiveness of the hedge during the year was SEK 0 million (0).
For other currencies, loans and currency swaps constitute hedges of corresponding receivables where hedge accounting is not applied
For further information regarding the Parent Company’s nancial risk management refer to Note 6.
The table below presents an analysis of the Parent Com- pany’s nancial liabilities classi ed according to the time remaining from the balance sheet date until the contractual maturity date. The amounts shown in the table refer to contrac- tual non-discounted cash- ows.
2017
512
44
87
421
2017
11
-
3,799
-
46
75
-
46
3,874
-
Dec.31, 2017
1,448
87
581
SEK m
Interest-bearing long-term receivables from subsidiaries
Current receivables from subsidiaries
Interest-bearing current receivables from subsidiaries
Liabilities to other companies within the Loomis Group
SEK m
Current liabilities to subsidiaries
Interest-bearing current liabilities to subsidiaries
Dec.31, 2016
1,180 207
353
Dec.31, 2016
47 1,675
December 31, 2017
External bank loans
Accounts payable and other liabilities
Total
December 31, 2016
External bank loans
Accounts payable and other liabilities
Less than 1 year
Less than 1 year
550 62
Between 1 and 5 years
Between 1 and 5 years
2,318 –
2,318
More than 5 years
More than 5 years
801 –
801
Dec.31, 2017
42
1,592
All transactions with related parties are executed based on market conditions.
Contingent liabilities regarding related parties
SEK m
Guarantee commitments banking facilities Other contingent liabilities
Total contingent liabilities
Dec.31, 2016
1,802 1,298 3,100
Total 612
Dec.31, 2017
1,270
1,816
3,085
Contingent liabilities mainly relate to payment and adequacy guarantees to subsidiaries. It is dif cult to assess whether these contingent liabilities will result in any nancial out ow.
Loomis AB has a policy to support subsidiaries, if circum- stances require such support. For further information, refer to Note 6.
In addition to the guarantee commitments reported in the table above, Letters of Comfort have been issued on behalf of subsidiaries within the Group.