LEGO-Group-Annual-Report-2017.pdf

Movements in the net liability recognised in the

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Movements in the net liability recognised in the balance sheet are as follows: Net liability at 1 January (198) (95) Exchange adjustment to year-end rate 13 2 Total expenses charged to the income statement (1) (105) Total expenses charged to comprehensive income (3) (9) Contributions paid 5 9 Net liability at 31 December (184) (198) The actual return on plan assets amounts to 6 6 Note 20 (continued) The actuarial assumptions applied in the calculations vary from country to country due to local economic and social conditions. The average assumptions applied are specified as follows: 2017 2016 Discount rate 1%–8% 1%–8% Future salary increases 1%–6% 1%–6% Future pension increases 2%–3% 1%–3% 37 Notes The LEGO Group — Annual Report 2017
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(mDKK) 2017 2016 Obligations regarding finance leases are as follows: 0–1 year 8 6 1–5 years 10 21 > 5 years 18 27 Reconciliation of carrying amount and gross liability: Carrying amount of the liability 16 23 Interest expenses not yet accrued 2 4 Gross liability 18 27 No contingent leases have been recognised in expenses in 2017 or 2016. None of the assets under finance leases have been subleased. Note 21. Other debt (mDKK) 2017 2016 Wage-related payables and other charges 1,411 1,618 Finance lease obligations 16 23 VAT and other indirect taxes 405 403 Amortised debt 88 127 Discounts 1,029 1,061 Other liabilities to related parties 443 442 Other current liabilities 1,185 1,708 4,577 5,382 Specified as follows: Non-current 80 197 Current 4,497 5,185 4,577 5,382 Finance lease obligations The fair value of obligations regarding assets under finance leases corresponds to the carrying amount. The fair value is estimated to equal the present value of expected future cash flows at a market interest rate for similar leases. 38 Notes The LEGO Group — Annual Report 2017
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Provisions for restructuring obligations relate primarily to redundancy programmes. The majority of these obligations are expected to result in cash outflows in 2018. Other provisions consist of various types of provisions, primarily provisions for asset retirement regarding leased premises. Note 22. Provisions 2017 (mDKK) Restructuring Other Total Provisions at 1 January 55 71 126 Exchange adjustment to year-end rate (2) (3) (5) Additions 262 32 294 Used (106) (9) (115) Reversed (15) (10) (25) Provisions at 31 December 194 81 275 Specified as follows: Non-current 56 Current 219 275 2016 (mDKK) Restructuring Other Total Provisions at 1 January 41 77 118 Exchange adjustment to year-end rate (1) 1 Additions 40 25 65 Used (19) (8) (27) Reversed (6) (24) (30) Provisions at 31 December 55 71 126 Specified as follows: Non-current 54 Current 72 126 39 Notes The LEGO Group — Annual Report 2017
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Note 24. Contingent assets, contingent liabilities and other obligations (mDKK) 2017 2016 Guarantees 647 681 Operating lease obligations 2,438 2,873 Other obligations 259 266 3,344 3,820 Guarantees relate to bank guarantees for commitments. The LEGO Group has entered various contracts with vendors on usual terms and conditions of sales.
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