Boskalis_Annual_Report_2016

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29. COMMITMENTS AND CONTINGENT LIABILITIES Operational lease obligations

The operational lease obligations relate primarily to the operational lease of some floating and other construction equipment, cars and offices. Additional clauses are not taken into account presuming that these are not unconditional. Non-redeemable operating lease contracts are recognized at nominal amounts and are due as follows:

2015

2016

Within one year

33,193 55,189

31,309 53,547 12,493 97,349

Between one and five years After more than five years

9,395

97,777

Guarantees The guarantee commitments as at 31 December 2016 amounted to EUR 776 million (2015: EUR 742 million) and can be specified as follows:

2015

2016

Guarantees provided with respect to: Joint ventures

174,000 567,000

86,000 689,000

Contracts and joint operations

Lease obligations and other financial obligations

1,000

1,000

742,000

776,000

The above-mentioned guarantees outstanding as at 31 December 2016 refer to guarantees and counter guarantees provided to financial institutions for approximately EUR 775 million (2015: approximately EUR 741 million). In 2016, 35 key Group companies were jointly and severally liable in respect of credit facilities and guarantees provided to several Group companies. In respect of these facilities, it has been agreed to limit the provision of further securities on existing property, plant and equipment. Group companies are jointly and severally liable for the non-consolidated part of the liabilities of their joint operations amounting to EUR 244 million (2015: EUR 479 million). Group companies are also jointly and severally liable for performance obligations for contracts with third parties in project-driven construction consortiums. In addition, certain recourse obligations exist in respect of project financiers and guarantees of deployment relating to equipment. Where deemed necessary, provisions have been made. In principle the Group does not provide parent company guarantees to its subsidiaries, other than for commercial reasons. Group companies have filed declarations of joint and several liability for a number of subsidiaries with the Chamber of Commerce. Capital commitments As at 31 December 2016 capital expenditure commitments amounted to EUR 62 million (year-end 2015: EUR 108 million). Capital contribution obligations At year-end 2016 capital contribution obligations relating to Public Private Partnerships (‘PPP’) amount to EUR 12.5 million (2015: EUR 12.5 million). On behalf of the Group, financial institutions have provided bank guarantees for the amount of the capital contribution obligations as disclosed as part of the aforementioned guarantees and counter guarantees. Other Several legal proceedings and investigations, including regulatory and other governmental, are regularly instituted against (entities of) Royal Boskalis Westminster N.V. Provisions were made where deemed necessary and if a reliable estimate of the future cash outflows could be made. Dutch companies form part of a fiscal unity. The companies are therefore liable for the tax obligations of the fiscal unity as a whole.

ANNUAL REPORT 2016 – BOSKALIS