Boskalis_Annual Report_2017

90 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 90 Wages and salaries Social security expenses

7. OTHER INCOME AND OTHER EXPENSES Other income mainly relates to the gross result of EUR 24.1 million on the bargain purchase of the Gardline Group (see note 5.1) and the book profits on the disposal of property, plant and equipment of EUR 8.0 million (2016: EUR 4.7 million). Other income in prior year also included a 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 and a reversal of an impairment amounting to EUR 1.3 million. Other expenses relates to the book losses on the disposal of equipment amounting to EUR 0.7 million (2016: EUR 0.3 million) and EUR 0.9 million relating to the divestment of the remaining share in Fugro N.V. (see note 5.2). 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 31 million (2016: EUR 34 million).

9. PERSONNEL EXPENSES

2017

2016

- 370,803 - 35,376 - 1,046 - 39,061 - 446,286

- 373,146 - 37,318 - 24,267 - 16,724 - 451,455

Pension expenses for defined benefit pension plans Pension expenses for defined contribution pension plans

A number of senior managers participate in a long-term 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 2017 amounts to EUR 2.0 million (2016: EUR 0.4 million) and the corresponding liability is EUR 4.8 million (2016: EUR 4.4 million). For the remuneration of the Board of Management and the Supervisory Board refer to note 30.2. In 2017 reorganization expenses were incurred for an amount of EUR 14.9 million mainly in connection with a head-office rationalization program, of which an amount of EUR 9.6 million is reported under personnel expenses and EUR 5.3 millon under Raw Materials, Consumables, Services and Subcontracted Work. For the restructuring of the Gardline Group an amount of EUR 9.2 million is recognized in 2017 which is fully reported under Raw Materials, Consumables, Services and Subcontracted Work.

In 2016 expenses for reorganization were incurred for an amount of EUR 11.6 million, mainly in connection with the fleet rationalization and related staff reduction.

In 2016 pension expenses for defined benefit pension plans include settlement and curtailment gains amounting to EUR 13.3 million (see note 25).