Chapters
Annual Report 2019

22. Non-Controlling Interest

Accounting Policy
The transactions with non-controlling interests are accounted for as equity transactions. For purchases of non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is deducted from equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

Significant Accounting Estimates and Judgments

Consolidation of the Synoptik Group

The Company’s ownership interest in the Synoptik Group is 63.29%. The agreement between the Company and the partner stipulates that the partner has certain affirmative votes in order to protect the variable returns of their investment. Resulting from contractual arrangements between the Company and the partner on key operational, procurement and organizational activities, the Company has the ability to execute power over the relevant activities of Synoptik, which directly affects Synoptik’s returns. Following this assessment, the Company concluded that it has control and the Synoptik Group is consolidated. At each reporting date this assessment is reconsidered.

The movements in Non-Controlling Interest can be specified as follows:

in thousands of EUR

2019

2018

At 31 December

90,011

81,480

Adjustment on initial application of IFRS 16

- 1,627

-

Adjusted at 1 January

88,384

81,480

Result for the year

16,888

21,018

Dividends paid

- 16,681

- 16,021

Acquisition of non-controlling interest

- 33

2,704

Remeasurement of post-employment benefit obligation

- 2,955

758

Cash flow hedge reserve

7

59

Hedge results transferred to the carrying value of inventory purchased during the year

- 179

- 262

Currency translation differences

1,678

275

At 31 December

87,109

90,011

Acquisition of non-controlling interest in 2019 and 2018 mainly related to the purchase of the non-controlling interest in the United Kingdom.

The financial information for the Synoptik Group (non-controlling interest of 36.71%) is as follows:

in thousands of EUR

31 December 2019

31 December 2018

Summarized Balance Sheet:

Non-current assets

181,891

97,734

Current assets

117,615

111,064

Equity

152,261

142,946

Non-current liabilities

69,332

4,828

Current liabilities

77,913

61,024

The accumulated non-controlling interest for the Synoptik Group amounts to €55,895 (2018: €52,475).

The financial information for operations in Switzerland (non-controlling interest of 21%) is as follows:

in thousands of EUR

31 December 2019

31 December 2018

Summarized Balance Sheet:

Non-current assets

310,592

120,332

Current assets

36,632

24,922

Equity

46,211

66,736

Non-current liabilities

244,554

44,325

Current liabilities

56,459

34,193

The accumulated non-controlling interest in Switzerland amounts to €9,778 (2018: €14,157).

The financial information for operations in Mexico (non-controlling interest of 30%) is as follows:

in thousands of EUR

31 December 2019

31 December 2018

Summarized Balance Sheet:

Non-current assets

98,210

65,067

Current assets

64,954

51,814

Equity

45,341

45,784

Non-current liabilities

62,931

39,752

Current liabilities

54,892

31,345

The accumulated non-controlling interest in Mexico amounts to €13,856 (2018: €13,891).

Following IFRS 16 implementation there was an increase in assets and liabilities of the above operations.