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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:
2016
2015
Within one year
31,309
33,193
Between one and five years
53,547
55,189
After more than five years
12,493
9,395
97,349
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:
2016
2015
Guarantees provided with respect to:
Joint ventures
86,000
174,000
Contracts and joint operations
689,000
567,000
Lease obligations and other financial obligations
1,000
1,000
776,000
742,000
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.
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ANNUAL REPORT 2016 – BOSKALIS