Boskalis_Annual Report_2017

112 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 112 26. PROVISIONS Balance as at 1 January Assumed in business combinations Provisions made during the year Provisions used during the year Provisions reversed during the year Reclassification to disposal group Balance as at 31 December Current Non-current Balance as at 31 December Trade payables Taxes and social security payables Other creditors and accruals

ONEROUS CONTRACTS

WARRANTIES RESTRUCTURING

OTHER

TOTAL 2017

TOTAL 2016

7,818 2,790

15,513

17,324

12,807

53,462

30,808

-

-

-

2,790

5,553

884

3,119 - 922 - 530

17,578 - 19,360 - 5,068

302

21,883 - 20,968 - 18,803 - 1,008 37,356 15,763 21,593 37,356 -

24,861 - 4,924 - 3,797

- 119

- 567

- 7,067

- 6,138

-

-

-

-

- 900 1,861

- 687 3,619

- 2,632 14,548

- 595 9,879 8,787 1,092 9,879

2,906 9,310

Exchange rate differences and other movements

53,462

3,619

2,445

912

22,027 31,435 53,462

-

12,103 14,548

8,398 9,310

3,619

The provision for onerous contracts includes a provision for unfavorable contracts as part of the liabilities assumed in business combinations (see note 5.1). As at year-end 2016 the provisions for onerous contracts related mainly to the lease of a vessel. In 2017 the purchase option to acquire the vessel was exercised, and, subsequently, the respective provision was reversed.

Restructuring provisions relate mainly to the restructuring of Group head office and Gardline.

Other provisions mainly relate to various claims made against the Group or threatening to be made including potential sanctions, from legal, regulatory and governmental proceedings. The Group disputes these claims and proceedings and has made an assessment of the amount of cash outflows that can be reasonable estimated. As litigation is inherently unpredictable, the possible outcome is uncertain and the amount may differ from the provisions listed above.

27. TRADE AND OTHER PAYABLES

31 DECEMBER 2017

2016

146,155 31,787

192,526 66,210

4,584

Amounts due to joint ventures and associated companies

1,815

829,103

825,133

1,011,629

1,085,684

The trade and other payables are generally not interest-bearing.

28. FINANCIAL INSTRUMENTS

GENERAL Pursuant to the financial policy maintained by the Board of Management, the Group and its Group companies use several financial instruments in the ordinary course of business. The policy with respect to financial instruments is disclosed in more detail in the Annual Report in the Corporate Governance chapter. The Group’s financial instruments are cash and cash equivalents, trade and other receivables, certificates of (listed) shares, interest-bearing loans and bank overdrafts, trade and other payables and derivatives. The Group enters into derivative transactions, mainly foreign currency forward contracts, foreign currency options and to a limited extent interest rate swaps, solely to hedge against the related risks. The Group’s policy is not to trade in derivatives.

FINANCIAL RISK MANAGEMENT 28.1 The Group has exposure to the following risks from its use of financial instruments:  credit risk  liquidity risk  market risk, consisting of: currency risk, interest rate risk and price risk