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7. OTHER INCOME AND OTHER EXPENSES
Other income mainly comprises the book profit of EUR 34.0 million on the transfer of the European harbor
towage activities into the KOTUG SMIT Towage joint venture, the result on the bargain
purchase regarding the assets and activities of STRABAG Wasserbau of EUR 11.0 million ,
the result on the sale of SMIT Amandla Marine amounting to EUR 8.3 million , reversal of an
impairment amounting to EUR 1.3 million and positive book results on the disposal of equipment of
EUR 4.7 million (2015: EUR 8.4 million).
Other expenses relates to the book loss on the disposal of equipment amounting EUR 0.3 million
(2015: EUR 4.6 million).
8. RAW MATERIALS, CONSUMABLES, SERVICES AND SUBCONTRACTED WORK
As part of this line item the operating lease costs relating to leased equipment are reported for an amount
of EUR 34 million (2015: EUR 35 million). In 2015 expenses for reorganization were incurred for an
amount of EUR 2.7 million. For reorganization expenses 2016, we refer to note 9 Personnel expenses
below.
9. PERSONNEL EXPENSES
2016 2015
Wages and salaries - 373,146 - 406,316
Social security expenses - 37,318 - 45,982
Pension expenses for defined benefit pension plans - 24,267 - 43,277
Pension expenses for defined contribution pension plans - 16,724 - 17,513
- 451,455 - 513,088
A number of senior managers participate in an incentive plan based upon the development of the share
price, which is settled on a cash basis. The fair value of the related liability for the year, is included as part
of the personnel expenses in the statement of profit or loss. The related charge for 2016 amounted to
EUR 0.4 million (2015: EUR 3.6 million) and the corresponding liability was EUR 4.4 million
(2015: EUR 6.5 million). For the remuneration of the Board of Management and the Supervisory Board
Pension expenses for defined benefit pension plans include settlement and curtailment gains amounting to
EUR 13.3 million .
During the year expenses for reorganization were incurred for an amount of EUR 11.6 million mainly in
connection with fleet rationalization and related staff reduction.
10. IMPAIRMENT LOSSES
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortization and
are tested annually for impairment. Other non-financial assets that are subject to depreciation and
amortization are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable.
2016 2015
Intangible assets - 382,269 -
Property, plant and equipment - 366,217 - 14,533
- 748,486 - 14,533
Impairment losses in joint ventures - 94,155 -
- 842,641 - 14,533
In 2016 the Group incurred a non-cash impairment loss of EUR 843 million. This charge is almost entirely
related to the services part of the Groups’ offshore oil and gas activities. In some of the service-related
offshore energy market segments there is a structural imbalance between supply and demand, particularly
in the heavy marine transport segment. This has put utilization, rates and margins under pressure.
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ANNUAL REPORT 2016 – BOSKALIS
FINANCIAL STATEMENTS 2016