LEGO-Group-Annual-Report-2017.pdf

The lego group leases various offices lego brand

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The LEGO Group leases various offices, LEGO Brand Retail stores, warehouses and plant and machinery under non-cancellable operating leases. The leases have varying terms, clauses and rights. The LEGO Group also leases plant and machinery under cancellable operating leases. The LEGO Group is required to give various notices of termination of these agreements. (mDKK) 2017 2016 Lease expenses for the year charged to the income statement amount to 858 820 Note 23. Deferred revenue (mDKK) 2017 2016 Consumer loyalty programme 112 128 Other 102 145 214 273 Specified as follows: Non-current 36 36 Current 178 237 214 273 40 Notes The LEGO Group — Annual Report 2017
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Future minimum lease payments under non-cancellable operating leases are specified as follows: (mDKK) 2017 2016 Related parties 0–1 year 58 51 1–5 years 166 118 > 5 years 175 181 399 350 Other 0–1 year 517 569 1–5 years 1,111 1,388 > 5 years 411 566 2,039 2,523 Security has been given in land, buildings and installations with a net carrying amount of DKK 462 million (DKK 429 million in 2016) for the LEGO Group’s mortgage loans. The LEGO Group has utilised tax losses in non-Danish jurisdictions in the Danish joint taxation until 31 December 2004. The deferred tax of this amounts to DKK 90 million (DKK 90 million in 2016), of which DKK 0 million has been recognised as a provision for deferred tax. The amount of DKK 90 million (DKK 90 million in 2016) is not expected to be recaptured. The Danish companies in the LEGO Group are jointly and severally liable for corporate income tax according to the joint taxation in the LEGO Group, KIRKBI A/S and in the companies controlled by KIRKBI A/S. The total amount of current tax liabilities, as well as related current tax credit counterparts are shown in the Annual Report of KIRKBI A/S, which is the administration company of the joint taxation. The Danish companies in the LEGO Group are furthermore jointly and severally liable for Danish taxes at source withheld on behalf of nonresident companies for dividend, royalty and interest. Note 24 (continued) 41 Notes The LEGO Group — Annual Report 2017
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(mDKK) %-change 2017 2016 EUR Equity 10% (38) 85 Net profit for the year 10% (38) 85 USD Equity 10% 12 (246) Net profit for the year 10% 53 47 GBP Equity 10% 12 53 Net profit for the year 10% (7) CZK Equity 10% 94 119 Net profit for the year 10% 94 119 MXN Equity 10% 103 96 Net profit for the year 10% 103 78 HUF Equity 10% 109 118 Net profit for the year 10% 109 118 CNY Equity 10% 152 139 Net profit for the year 10% 152 139 Note 25. Financial risks The LEGO Group has centralised the management of the financial risks. The overall objectives and policies for the LEGO Group’s financial risk management are outlined in an internal Treasury Policy. The LEGO Group only hedges commercial exposures and consequently does not enter into derivative transactions for trading or speculative purpose. A fully integrated Treasury Management System is used to manage all financial positions.
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