Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
DisclosureOfDocumentAndEntityInformationLineItems [Line Items] | |
Entity Registrant Name | Hudson Ltd. |
Entity Central Index Key | 1,714,368 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 92,511,080 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Class A Common Shares | |
DisclosureOfDocumentAndEntityInformationLineItems [Line Items] | |
Entity Common Stock, Shares Outstanding | 39,417,765 |
Class B Common Shares | |
DisclosureOfDocumentAndEntityInformationLineItems [Line Items] | |
Entity Common Stock, Shares Outstanding | 53,093,315 |
COMBINED STATEMENTS OF COMPREHE
COMBINED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Turnover | $ 1,802.5 | $ 1,687.2 | $ 1,403 |
Cost of sales | (680.3) | (645.3) | (534.1) |
Gross profit | 1,122.2 | 1,041.9 | 868.9 |
Selling expenses | (421.2) | (395.7) | (325.7) |
Personnel expenses | (371.3) | (337.4) | (279.5) |
General expenses | (156.9) | (151.9) | (130.9) |
Share of result of associates | (0.3) | (0.7) | 1.7 |
Depreciation, amortization and impairment | (108.7) | (103.7) | (86.7) |
Other operational result | (3.7) | (9.3) | (1.7) |
Operating profit | 60.1 | 43.2 | 46.1 |
Interest expenses | (30.2) | (29.8) | (25.4) |
Interest income | 1.9 | 2.1 | 1.6 |
Foreign exchange gain/(loss) | 0.5 | 0 | (0.2) |
Earnings before taxes (EBT) | 32.3 | 15.5 | 22.1 |
Income tax | (42.9) | 34.3 | (3.8) |
Net earnings | (10.6) | 49.8 | 18.3 |
OTHER COMPREHENSIVE INCOME | |||
Exchange differences on translating foreign operations | 26.8 | 12.9 | (35.9) |
Items to be reclassified to net income in subsequent periods, net of tax | 26.8 | 12.9 | (35.9) |
Total other comprehensive income/(loss), net of tax | 26.8 | 12.9 | (35.9) |
Total comprehensive income/(loss), net of tax | 16.2 | 62.7 | (17.6) |
Net earnings attributable to equity holders of the parent | (40.4) | 23.5 | (7.7) |
Net earnings attributable to Non-controlling interests | 29.8 | 26.3 | 26 |
Total comprehensive income attributable to equity holders of the parent | (13.6) | 36.4 | (43.6) |
Total comprehensive income attributable to non-controlling interests | $ 29.8 | $ 26.3 | $ 26 |
COMBINED STATEMENTS OF FINANCIA
COMBINED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Property, plant and equipment | $ 264.9 | $ 256.3 |
Intangible assets | 685.8 | 691.2 |
Investments in associates | 3.1 | 2.4 |
Deferred tax assets | 90.3 | 153 |
Other non-current assets | 24.9 | 31.1 |
Non-current assets | 1,069 | 1,134 |
Inventories | 186 | 161.4 |
Trade and credit card receivables | 4.6 | 8.2 |
Other accounts receivable | 59.4 | 47.3 |
Income tax receivables | 1.4 | 4.5 |
Cash and cash equivalents | 137.4 | 187.6 |
Current assets | 388.8 | 409 |
Total assets | 1,457.8 | 1,543 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Equity attributable to equity holders of the parent | 493.7 | 658.2 |
Non-controlling interests | 78.7 | 72.2 |
Total equity | 572.4 | 730.4 |
Financial debt | 520.4 | 475.2 |
Deferred tax liabilities | 50.1 | 71.8 |
Post-employment benefit obligations | 0.9 | 0 |
Other non-current liabilities | 0 | 1.1 |
Non-current liabilities | 571.4 | 548.1 |
Trade payables | 97.1 | 91.3 |
Financial debt | 80.7 | 1.5 |
Income tax payables | 4.1 | 3.8 |
Other liabilities | 132.1 | 167.9 |
Current liabilities | 314 | 264.5 |
Total liabilities | 885.4 | 812.6 |
Total liabilities and shareholders' equity | $ 1,457.8 | $ 1,543 |
COMBINED STATEMENTS OF CHANGES
COMBINED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Shareholder's Equity | Non-controlling Interests | Total |
Beginning balance at Dec. 31, 2014 | $ 282.6 | $ 60.6 | $ 343.2 |
Net earnings/(loss) | (7.7) | 26 | 18.3 |
Other comprehensive income/(loss) | (35.9) | (35.9) | |
Total comprehensive income/(loss) for the period | (43.6) | 26 | (17.6) |
Dividends to non-controlling interests | (28.7) | (28.7) | |
Business combination | 380.3 | 5.2 | 385.5 |
Share-based payment | 0.6 | 0.6 | |
Tax effect on equity transactions | 0.2 | 0.2 | |
Total transactions with or distributions to owners | 381.1 | (23.5) | 357.6 |
Changes in participation of non-controlling interests | 4.7 | 4.7 | |
Ending balance at Dec. 31, 2015 | 620.1 | 67.8 | 687.9 |
Net earnings/(loss) | 23.5 | 26.3 | 49.8 |
Other comprehensive income/(loss) | 12.9 | 12.9 | |
Total comprehensive income/(loss) for the period | 36.4 | 26.3 | 62.7 |
Dividends to non-controlling interests | (27.4) | (27.4) | |
Share-based payment | 1.2 | 1.2 | |
Tax effect on equity transactions | 0.5 | 0.5 | |
Total transactions with or distributions to owners | 1.7 | (27.4) | (25.7) |
Changes in participation of non-controlling interests | 5.5 | 5.5 | |
Ending balance at Dec. 31, 2016 | 658.2 | 72.2 | 730.4 |
Net earnings/(loss) | (40.4) | 29.8 | (10.6) |
Other comprehensive income/(loss) | 26.8 | 26.8 | |
Total comprehensive income/(loss) for the period | (13.6) | 29.8 | 16.2 |
Dividends to non-controlling interests | (34.3) | (34.3) | |
Common control transaction | (154.7) | (154.7) | |
Share-based payment | 4.6 | 4.6 | |
Tax effect on equity transactions | (0.2) | (0.2) | |
Total transactions with or distributions to owners | (150.3) | (34.3) | (184.6) |
Changes in participation of non-controlling interests | (0.6) | 11 | 10.4 |
Ending balance at Dec. 31, 2017 | $ 493.7 | $ 78.7 | $ 572.4 |
COMBINED STATEMENTS OF CASH FLO
COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities | ||||
Earnings before taxes (EBT) | $ 32.3 | $ 15.5 | $ 22.1 | |
Adjustments for: | ||||
Depreciation, amortization and impairment | 108.7 | 103.7 | 86.7 | |
Loss/(gain) on sale of non-current assets | 3.3 | 1.9 | (0.1) | |
Increase/(decrease) in allowances and provisions | 5 | (2) | 2 | |
Loss/(gain) on unrealized foreign exchange differences | (0.5) | 6.4 | (0.3) | |
Other non-cash items | 4.6 | 1.2 | 0.7 | |
Share of result of associates | 0.3 | 0.7 | (1.7) | |
Interest expense | 30.2 | 29.8 | 25.4 | |
Interest income | (1.9) | (2.1) | (1.6) | |
Cash flow before working capital changes | 182 | 155.1 | 133.2 | |
Decrease/(increase) in trade and other accounts receivable | 6.2 | (9.1) | (2.2) | |
Decrease/(increase) in inventories | (26.9) | (14.2) | (17.1) | |
Increase/(decrease) in trade and other accounts payable | (26.9) | 41.3 | 5.8 | |
Dividends received from associates | 0 | 0.2 | 1.2 | |
Cash generated from operations | 134.4 | 173.3 | 120.9 | |
Income taxes received/(paid) | [1] | (3.6) | (3.5) | (15.5) |
Net cash flows from operating activities | 130.8 | 169.8 | 105.4 | |
Cash flow used in investing activities | ||||
Purchase of property, plant and equipment | (79.6) | (88.3) | (49.4) | |
Purchase of intangible assets | (8.2) | (5.7) | (3) | |
Net purchase of interest in associates | (1) | 0 | 0 | |
Proceeds from sale of property, plant and equipment | 0.6 | 0.4 | 1.8 | |
Interest received | 2.1 | 1.2 | 1.2 | |
Net cash acquired in business combinations | 0 | 0 | 4.4 | |
Proceeds from sale of interests in subsidiaries and associates | 0 | 0 | 30 | |
Net cash flows used in investing activities | (86.1) | (92.4) | (15) | |
Cash flow from financing activities | ||||
Proceeds from financial debt | 15 | 0 | 0 | |
Repayment of financial debt | (43) | (7.3) | (10) | |
Change of financial debt, net | (28) | (7.3) | (10) | |
Proceeds from/(repayment of) third party loans | (3.3) | 12.8 | 31.4 | |
Dividends paid to non-controlling interest | (34.3) | (27.4) | (28.7) | |
Net contributions from/(purchase of) non-controlling interests | 0 | (0.1) | 1.2 | |
Interest paid | (30.2) | (29.3) | (25.5) | |
Net cash flows used in financing activities | (95.8) | (51.3) | (31.6) | |
Currency translation on cash | 0.9 | 1.1 | (2.9) | |
(Decrease)/increase in cash and cash equivalents | (50.2) | 27.2 | 55.9 | |
Cash and cash equivalents at the beginning of the period | 187.6 | 160.4 | 104.5 | |
Cash and cash equivalents at the end of the period | $ 137.4 | $ 187.6 | $ 160.4 | |
[1] | The amounts for Income taxes received/(paid) only include payments made on behalf of companies in the scope of these combined financial statements as described in section 2.1 BASIS OF PREPARATION |
1. CORPORATE INFORMATION
1. CORPORATE INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information | |
CORPORATE INFORMATION | Hudson Group (“Hudson” or the “Group”) operates in the Duty Paid and Duty Free travel retail markets and operated 996 stores in 88 locations, throughout the continental United States and Canada. All entities combined in these financial statements are directly or indirectly owned subsidiaries of Dufry AG (Dufry), the world’s leading travel retail company which is headquartered in Basel, Switzerland. Dufry’s shares are listed on the Swiss Stock Exchange (SIX) in Zurich, Switzerland and its Brazilian Depository Receipts (BDR) on the BM&FBOVESPA in Sao Paolo, Brazil. Hudson Ltd. was incorporated on May 30, 2017 in Hamilton, Bermuda as a wholly owned subsidiary of Dufry. The initial public offering (IPO) took place on February 1, 2018 and Hudson’s Class A shares have been listed on the New York Stock Exchange, refer to note 36 Events after reporting date. Hudson Ltd. has had no operations, only nominal assets and no liabilities or contingencies since inception. After the IPO, Dufry retained control of Hudson Ltd., as the shares offered through the IPO represented less than 50 % of the total shares outstanding or voting rights. |
2. ACCOUNTING POLICIES
2. ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies | |
ACCOUNTING POLICIES | 2.1 These combined financial statements have been prepared for the purpose of integration in the Form 20-F of Hudson Ltd. They have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB). For the purpose of these combined financial statements, Hudson Group comprises all entities and operations directly or indirectly owned by Dufry which have been transferred to Hudson Ltd. after the reporting date, but prior to its initial listing at the NYSE: Refer to note 36 Events after reporting date; refer to List of subsidiaries for an overview of entities included in the scope of combination. The combined financial statements have been prepared based on the financial reporting packages that were used for the preparation of the consolidated financial statements of Dufry. Hudson Group uses the same accounting policies and principles in these combined financial statements as were used for the preparation of the consolidated financial statements of Dufry. The combined financial statements have been prepared based on historical costs, except for eventual available-for-sale financial assets, other financial assets and liabilities (including derivative instruments), which are measured at fair value, as explained in the accounting policies below. Historical costs are generally based on the fair value of the consideration given in exchange for assets. The combined financial statements are presented in millions of US dollars (USD). All values are rounded to the nearest one hundred thousand, except when indicated otherwise. For the purpose of these combined financial statements, income taxes have been calculated using the separate return method. The combined financial statements were authorized for issue on March 6, 2018 by the management of Dufry International AG. 2.2 Subsidiaries are fully consolidated from the date of acquisition, being the date on which Dufry obtained control over the entity of Hudson Group, and continue to be consolidated until the date when such control is lost. An entity of Hudson Group controls another entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the other entity. All intra-group balances, transactions, unrealized gains or losses resulting from intra-group transactions and -dividends are eliminated in full. Transactions with subsidiaries of Dufry outside the scope of combination of Hudson Group have not been eliminated and are reported as related party transactions in these combined financial statements, refer to note 32. A change in the ownership of a subsidiary, without a loss of control, is accounted for as an equity transaction. If Hudson Group loses control over a subsidiary, it – derecognizes the assets (including goodwill) and liabilities of the subsidiary, derecognizes the carrying amount of any non-controlling interest as well as derecognizes the cumulative translation differences recorded in equity, – recognizes the fair value of the consideration received, recognizes the fair value of any investment retained as well as recognizes any surplus or deficit in the statement of comprehensive income and – reclassifies the parent’s share of components previously recognized in other comprehensive income to the statement of comprehensive income or retained earnings, as appropriate. For the accounting treatment of associated companies refer to note 2.3. 2.3 a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, Hudson selects whether it measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition related transaction costs are expensed and included in other operational result. When Hudson acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IAS 39 Financial Instruments: Recognition and Measurement, is measured at fair value with the changes in contingent considerations recognized in the statement of comprehensive income. Hudson measures goodwill at the acquisition date as: – The fair value of the consideration transferred; – plus the recognized amount of any non-controlling interests in the acquiree; – plus if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; – less the net recognized amount of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognized immediately in the statement of comprehensive income. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to Hudson’s group of cash-generating units that are expected to benefit from the combination. Where goodwill forms part of a cash-generating unit and a operation within is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained, unless there are specific allocations. b) Turnover Turnover is composed of net sales and advertising income. Sales are measured at the fair value of the consideration received, excluding sales taxes or duties. Retail sales are settled in cash or credit card, whereas advertising income is recognized when the services are rendered. c) Cost of sales Cost of sales are recognized when the Group sells a product and comprise the purchase price and the cost incurred until the product arrives at the warehouse, i. e. import duties and transport as well as inventory valuation adjustments, inventory differences and supplier rebates or discounts. d) Foreign currency Each subsidiary in Hudson uses its corresponding functional currency. Items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are recorded at the date of the transaction in the functional currency using the exchange rate of such date. Monetary assets and liabilities denominated in foreign currencies are re-measured to their fair value in the functional currency using the exchange rate at the reporting date and the difference is recorded as unrealized foreign exchange gains or losses. Exchange differences arising on the settlement or on the translation of derivative financial instruments are recognized through the statement of comprehensive income, except where the hedges on net investments allow the recognition through other comprehensive income, until the respective investments are disposed of. Any related deferred tax on unrealized FX is accounted accordingly. Non-monetary items are measured at historical cost in the respective functional currency. At the reporting date, the assets and liabilities of all subsidiaries reporting in foreign currency are translated into the reporting currency of Hudson (USD) using the exchange rate at the reporting date. The statements of comprehensive income of the subsidiaries are translated using the average exchange rates of the respective month in which the transactions occurred. The net translation differences are recognized in other comprehensive income. On disposal of a foreign entity or when control is lost, the deferred cumulative translation difference recognized within equity relating to that particular operation is recognized in the statement of comprehensive income as gain or loss on sale of subsidiaries. Intangible assets and fair value adjustments identified during a business combination (purchase price allocation) are treated as assets and liabilities in the functional currency of such operation. Principal foreign exchange rates applied for valuation and translation: AVERAGE RATE CLOSING RATE IN USD 2017 2016 2015 DEC 31, 2017 DEC 31, 2016 DEC 31, 2015 1 CAD 0.7714 0.7552 0.7832 0.7951 0.7446 0.7232 e) Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. Repurchase of Hudson’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in the statement of comprehensive income on the purchase, sale, issue or cancellation of Hudson’s own equity instruments. f) Share capital Ordinary shares are classified as equity. Costs directly attributable to the issuance of shares or options are shown in the statement of changes in equity as transaction costs for equity instruments, net of tax. For Hudson shares purchased by Hudson Ltd. or any subsidiary, the consideration paid, including any directly attributable expenses, net of income taxes, is deducted from equity until the shares are cancelled, assigned or sold. Where such ordinary shares are subsequently sold, any consideration received, net of any direct transaction expenses and income taxes, is included in equity. g) Leases Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the leases’ inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the Group will obtain ownership at the end of the lease term. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. h) Share-based payments Equity settled share based payments to employees and other third parties providing services are measured at the fair value of the equity instruments at grant date. The fair value determined at grant date of the equity-settled share-based payments is expensed on a pro rata basis over the vesting period, based on the estimated number of equity instruments that will eventually vest. At the end of each reporting period, Hudson revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in the statement of comprehensive income such that the cumulative expense reflects the revised estimate. Where the terms of an equity settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification, which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the holder of the option as measured at the date of modification. i) Taxation Income tax expense represents the sum of the current income tax and deferred tax. Income tax positions not relating to items recognized in the statement of comprehensive income, are recognized in correlation to the underlying transaction either in other comprehensive income or equity. Current income tax Income tax receivables or payables are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted at the reporting date in the countries or states where Hudson operates and generates taxable income. Income tax relating to items recognized in other comprehensive income is recognized there as well. Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax basis of assets or liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences, except: – When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss – In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits or tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available, against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized, except: – When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss – In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date applicable for each respective company. j) Property, plant and equipment These are stated at cost less accumulated depreciation and any impairment in fair value. Depreciation is computed on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. The useful lives applied are as follows: – Real estate (buildings) 20 to 40 years – Leasehold improvements the shorter of the lease term or 10 years – Furniture and fixtures the shorter of the lease term or 5 years – Motor vehicles the shorter of the lease term or 5 years – Computer hardware the shorter of the lease term or 5 years k) Intangible assets These assets mainly comprise of concession rights. Intangible assets acquired separately are capitalized at cost and those from business combinations are capitalized at fair value as at the date of acquisition. Following initial recognition, the cost model is applied to intangible assets. The useful lives of these intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life. Intangible assets with an indefinite useful life are reviewed annually to determine whether the indefinite life assessment continues to be supportable. If not, any changes are made on a prospective basis. l) Impairment of non-financial assets Intangible assets that are subject to depreciation and amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or cash generating unit exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows (cash generating units). m) Associates Associates are all entities over which Hudson has significant influence but not control, generally accompanying a shareholding of more than 20 % but less than 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost. The carrying amount is increased or decreased to recognize the investor’s share of the net earnings of the investee after the date of acquisition and decreased by dividends declared. Hudson’s investment in associates includes goodwill identified on acquisition. Hudson’s share of post-acquisition net earnings and its share of post-acquisition movements in other comprehensive income are recognized in the combined statement of comprehensive income with a corresponding adjustment to the carrying amount of the investment. When Hudson’s share of losses in an associate equals or exceeds its interest in the associate, Hudson does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income is reclassified to net earnings where appropriate. Hudson determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, Hudson calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount adjacent to share of result of associates in the statement of comprehensive income. Profits and losses resulting from upstream and downstream transactions between Hudson and its associate are recognized in the Group’s financial statements only to the extent of unrelated investor’s interests in the associates. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by Hudson. Dilution gains and losses arising in investments in associates are recognized in the statement of comprehensive income. n) Inventories Inventories are valued at the lower of historical cost or net realizable value. The historical costs are determined using the weighted average method, Historical cost includes all expenses incurred in bringing the inventories to their present location and condition. This includes mainly import duties and transport cost. Purchase discounts and rebates are deducted in determining the cost of inventories. The net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. Inventory allowances are set up in the case of slow-moving and obsolete stock. Expired items are fully written off. o) Trade receivables This account includes receivables related to the sale of merchandise. p) Cash and cash equivalents Cash and cash equivalents consist of cash on hand or current bank accounts as well as short-term deposits at banks with initial maturity below 91 days. Credit card receivables with a maturity of up to 4 days are included as cash in transit. Short-term investments are included in this position if they are highly liquid, readily convertible into known amounts of cash and subject to insignificant risk of changes in value. q) Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that Hudson will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate at the end of the reporting period of the consideration required to settle the present obligation, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that the reimbursement will be received and the amount of the receivable can be measured reliably. Contingent liabilities acquired in a business combination Contingent liabilities acquired in a business combination are initially measured at fair value at the acquisition date. At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be recognized in accordance with IAS 37 Provisions, contingent liabilities and contingent assets and the amount initially recognized less cumulative amortization recognized in accordance with IAS 18 Revenue. r) Financial instruments Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets and financial liabilities at fair value through profit or loss (FVTPL), are deducted from or added to the fair value of the financial assets or financial liabilities on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the statement of comprehensive income. Trade and other accounts receivable Trade and other receivables (including credit cards receivables, other accounts receivable, cash and cash equivalents) are measured at amortized cost using the effective interest method, less any impairment. Impairment of financial assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the financial asset have been affected. Certain categories of financial assets, such as trade receivables, are assessed for impairment individually. Subsequent recoveries of amounts previously written off are credited against the allowance accounts for these categories. Changes in the carrying amount of the allowance account are recognized in the statement of comprehensive income in the lines selling expenses or other operational result. Derecognition of financial assets Hudson derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If Hudson neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred as set, Hudson recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If Hudson retains substantially all the risks and rewards of ownership of a transferred financial asset, Hudson continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. Financial liabilities at FVTPL These are stated at fair value, with any gains or losses arising on re-measurement recognized in the statement of comprehensive income. The net gain or loss recognized in the combined statement of comprehensive income incorporates any interest paid on the financial liability and is included in the financial result in the statement of comprehensive income. Fair value is determined in the manner described in note 34. Other financial liabilities Other financial liabilities (including borrowings) are subsequently measured at amortized cost using the effective interest method. Derecognition of financial liabilities Hudson derecognizes financial liabilities only when the obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid or payable is recognized in the combined statement of comprehensive income. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the combined statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. s) Derivative financial instruments Hudson may enter into a variety of derivative financial instruments to manage its exposure to interest rate or foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps and cross currency swaps. Further details of derivative financial instruments are disclosed in note 35. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in the statement of comprehensive income unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the statement of comprehensive income depends on the nature of the hedge relationship. Embedded derivatives Derivatives embedded in non-derivative host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at FVTPL. 2.4 New and amended Standards and Interpretations The accounting policies adopted are consistent with those of the previous financial year, except for the revised Standards and the Interpretations adopted in these financial statements (effective January 1, 2017). – Disclosure initiative – amendments to IAS 7 Statement of cash flows: Requires additional disclosure of changes in liabilities arising from financing activities see note 35. – IAS 12 Income taxes: Additional clarification on the recognition for deferred tax assets for unrealized losses on debt instruments measured at fair value. Hudson currently does not have debt valued at fair value. |
3. CRITICAL ACCOUNTING JUDGEMEN
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | 12 Months Ended |
Dec. 31, 2017 | |
Critical Accounting Judgements And Key Sources Of Estimation Uncertainty | |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | The preparation of Hudson’s combined financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. KEY SOURCES OF ESTIMATION UNCERTAINTY The key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below. Concession rights Concession rights acquired in a business combination are measured at fair value as at the date of acquisition and amortized over the contract duration. Hudson annually assesses the concession rights with finite lives for impairment indications. Goodwill Hudson tests these items annually for impairment. The underlying calculation requires the use of estimates. The assumptions used are disclosed in note 19.1. Income taxes Hudson is subject to income taxes in the US, UK and Canada. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax assessment is uncertain. Hudson recognizes liabilities for tax audit issues based on estimates of whether additional taxes will be payable. Where the final tax outcome is different from the amounts that were initially recorded, such differences will impact the income tax or deferred tax provisions in the period in which such assessment is made. Further details are given in notes 15 and 21. The United States recently enacted a reform of the tax legislation that, among other things, reduces the corporate federal income tax (CIT) rate from 35 % to 21 % and imposes in addition a “base erosion and anti-abuse tax” (“BEAT”) on domestic corporations for payments done to foreign related persons in connection with tax deductible expenses. The reduction of the U.S. CIT rate is expected to be beneficial to us in future years in which we have net income subject to U.S. tax. For the current year the reduction in the U.S. CIT rate resulted in a one-off net loss of $40.2 million on deferred tax assets and deferred tax liabilities in the US-entities, reflected also in a higher Group effective tax rate. There are a number of uncertainties and ambiguities as to the interpretation and application of many of the provisions in the Tax Reform Legislation, including the provisions relating to the BEAT. In the absence of guidance on these issues, we will use what we believe are reasonable interpretations and assumptions in interpreting and applying the Tax Reform Legislation for purposes of determining our income tax payable and results of operations, which may change as we receive additional clarification and implementation guidance. It is also possible that the Internal Revenue Service could issue subsequent guidance or take positions on audit that differ from the interpretations and assumptions that we previously made, which could have a material adverse effect on our cash tax liabilities, results of operations and financial condition. In addition, we may be subject to audits of our income, sales and other transaction taxes by U.K. tax authorities, U.S. federal and state authorities and Canadian national and provincial authorities. Outcomes from these audits could have an adverse impact on our operating results and financial condition. Deferred tax assets Deferred tax assets are recognized for unused tax losses and deductible temporary differences to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of future taxable profits. Further details are given in note 21. Share-based payments Hudson measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the grant date. Estimating such fair values require determining the most appropriate valuation model for a grant of equity instruments, which depends on the terms and conditions of the grant, as well as the most appropriate inputs to the valuation model including the expected probability that the triggering clauses will be met. The result will be the expected quantity of shares to be assigned. The assumptions and models used are disclosed in note 26. Purchase price allocation The determination of the fair values of the identifiable assets (especially the concession rights) and the assumed liabilities, resulting from business combinations, is based on valuation techniques such as the discounted cash flow model. Some of the inputs to this model are partially based on assumptions and judgments. Consolidation of entities where Hudson has control, but holding only minority voting rights Hudson considers controlling certain entities, even when it holds less than the majority of the voting rights, when it is exposed to or has the rights to variable returns from the involvements with the investee and has the ability to affect those returns through its power over the entity. These indicators are evaluated at the time of first consolidation and reviewed when there are changes in the statutes or composition of the executive board of these entities. Further details on non-controlling interests are disclosed in notes 27 and 28. |
4. NEW AND REVISED STANDARDS AN
4. NEW AND REVISED STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET ADOPTED/EFFECTIVE | 12 Months Ended |
Dec. 31, 2017 | |
New And Revised Standards And Interpretations Issued But Not Yet Adoptedeffective | |
NEW AND REVISED STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET ADOPTED/EFFECTIVE | The standards and interpretations described below are expected to have an impact on Hudson’s financial position, performance, and / or disclosures. Hudson intends to adopt these standards when they become effective. IFRS 9 Financial Instruments IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. Phase 1: The Group currently has no financial assets classified as available for sale, held-to-maturity or FVOCI. The financial assets and liabilities currently classified as FVPL will continue to meet the criteria for this as these do not include any non-derivatives. Hence there will be no change to the accounting for these assets and liabilities. Phase 2: The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is the case under IAS 39. It applies to financial assets classified at amortized cost, debt instruments measured at FVOCI, contract assets under IFRS 15 Revenue from Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. Based on the assessments undertaken at the statement of financial position date, the Group does not expect a significant increase in the loss allowances. Phase 3: As a general rule, more hedge relationships might be eligible for hedge accounting, as the standard introduces a more principles-based approach. The Group has confirmed that its current hedge relationships will qualify as continuing hedges upon the adoption of IFRS 9. In addition, the Group is considering to designate the intrinsic value of foreign currency option contracts as hedging instruments going forward. These are currently accounted as derivatives at FVPL. Changes in the fair value of foreign exchange forward contracts attributable to forward points, and in the time value of the option contracts, will in this case in future be deferred in new costs of hedging reserve (OCI) within equity. The deferred amounts will be recognized against the related hedged transaction when it occurs. The Group has elected to apply the limited exemption in IFRS 9 paragraph 7.2.15 relating to the transition for classification and measurement and impairment, and accordingly will not be restating the 2017 comparative period, except in relation to changes in the fair value of foreign exchange forward contracts attributable to forward points, which will be recognized in the costs of hedging reserve (OCI) (the Group did not utilize these hedges during 2017). This will mean that: – any adjustments to carrying amounts of financial assets or liabilities will be recognized at the beginning of the next reporting period, with the difference recognized in opening retained earnings; – financial assets will not be reclassified in the statement of financial position for the comparative period; – allowances for impairment will not be restated in the comparative period; – the transition will be a change in accounting policy, and disclosures required by IAS 8 will be illustrated; – a third statement of financial position as at January 1, 2017 will not be presented. The retrospective application of the accounting for the forward element of forward contracts will not impact the statement of financial position for the year ended December 31, 2017, other than on retained earnings and reserves which are disclosed in the statement of changes in equity. – disclosure requirements arising from the consequential amendments made to IFRS 7 by IFRS 9 will not be presented in relation to the comparative period. The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Group’s disclosures about its financial instruments particularly in the year of the adoption of the new standard. Hudson expects that the reclassifications from the IAS 39 financial assets categories to the IFRS 9 categories will have no impact on the measurement categories. The allowances for trade receivables and receivables for advertising income are not expected to increase due to the adoption of IFRS 9 in 2018. IFRS 15 Revenue from contracts with customers IFRS 15, revenue from contracts with customers deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognized when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard replaces IAS 18 Revenue and IAS 11 Construction contracts and related interpretations. Hudson has analyzed the impact of the standard and has not identified any material changes to the current revenue recognition approach. Hudson considered the following aspects: (a) Sale of goods Hudson’s retail sales are in cash or credit card and the revenue recognition occurs when the assets are transferred to the customer. (b) Advertising income Advertising income is recognized when the services have been rendered. The Group intends to adopt the modified retrospective approach, which means that the cumulative impact of the adoption (if any), will be recognized in retained earnings as of January 1, 2018 and that the comparatives will not be restated. IFRS 16 Leases Lessees will be required to recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The lease liability will be measured at present value of the lease payments to be made over the lease term. In other words, lessees will appear to become more asset-rich but also more indebted. To be considered as such, a lease agreement has to convey the right to control the use of an identified asset throughout the period of use, so that the customer has the right to obtain substantially all of the economic benefits from the use of the identified asset; and direct the use of the identified asset (i.e. direct how and for what purpose the asset is used). The standard will mainly affect the accounting of: a) Concession agreements Hudson enters into concession agreements with operators of airports, railway stations etc. to operate retail shops. Usually these arrangements require a variable compensation based on sales or other activity indicators, with a minimum threshold. In those cases where at the inception of the agreement the minimum amounts can be calculated reliably over the respective contractual terms, Hudson will account for this part as a lease in accordance with IFRS 16, b) Rent agreements for office and warehouse buildings These agreements will usually qualify as leases under IFRS 16, except if the agreement is cancellable within 12 months. As at the reporting date, the Group has non-cancellable operating lease commitments with remaining duration of more than 12 months. These lease agreements have minimal firm commitments and most of them also fees in proportion to the net sales of the specific shop. The Group has hundreds of concession agreements with individual wording and specifications. Had the Group adopted the new lease standard as of December 31, 2017, we estimate the amount of right-of-use assets and lease liabilities that would have to be recognized at about USD 1 to 2 billion. In 2017 the Group recognized the lease payments as selling expenses (concession fees and rents) of USD 399.1 million and as general expenses (premises) of USD 14.9 million. Amendments that are considered to be insignificant from a current point of view: Sale or Contribution of Assets between an Investor and its Associate or Joint venture (proposed amendments to IFRS 10 and IAS 28) (effective date not yet defined by IASB) The gain or loss resulting from the sale to or contribution from an associate of assets that constitute a business as defined in IFRS 3 is recognized in full. The gain or loss resulting from the sale to or contribution from a subsidiary that does not constitute a business as defined in IFRS 3 (i. e. not a group of assets conforming a business) to an associate is recognized only to the extent of unrelated investors’ interests in the associate. Annual Improvements 2014 – 2016 – issued December 2016 IAS 28 Investment in Associates and Joint ventures Clarification that the election to measure at fair value through profit or loss is available on an investment-by-investment basis, upon initial recognition. – Interpretation 22 – Foreign Currency Transactions and Advance Considerations (effective January 1, 2018) Clarification of the date to be used for the exchange rate on initial recognition of a related asset, expense or income where consideration is paid or received in advance for foreign currency denominated contracts. For each payment the date to be used is the same as the date for the initial recognition of the related non-monetary asset or liability. |
5. SEGMENT INFORMATION
5. SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information | |
SEGMENT INFORMATION | Hudson consists of one operating segment “Travel Retail Operations” for which reports are submitted to the Group Executive Committee (formerly the Divisional Committee of Dufry), being the Chief Operating Decision Maker (CODM). These reports form the basis for the evaluation of performance and allocation of resources. Hudson generates turnover from selling a wide range of duty-free and duty-paid products through its stores that are mainly located at airports, commuter terminals, hotels, landmarks or tourist destinations. Refer to note 7 for a split of net sales by product category, market sector and sales channel. Net Sales by Country IN MILLIONS OF USD 2017 2016 2015 US 1,420.9 1,359.1 1,164.2 Canada 339.9 291.0 205.4 Total 1,760.8 1,650.1 1,369.6 Non-Current Assets by Country (excluding financial instruments and deferred taxes) IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 US 558.8 568.2 Canada 416.8 410.4 Total 975.6 978.6 We refer to the annex List of subsidiaries for the assignment of each subsidiary to the respective country. |
6. ACQUISITIONS OF BUSINESSES A
6. ACQUISITIONS OF BUSINESSES AND TRANSACTIONS WITH NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions Of Businesses And Transactions With Non-controlling Interests | |
ACQUISITIONS OF BUSINESSES AND TRANSACTIONS WITH NON-CONTROLLING INTERESTS | There were no transactions in 2017 and 2016. 2015 Transactions ACQUISITION OF WORLD DUTY FREE S.P.A. In a two step acquisition on August 7, 2015, and November 13, 2015, Dufry acquired 100 % in the voting equity interests in World Duty Free S.p.A. (WDF), a publicly listed company in Italy for a total consideration of USD 2,859.5 (EUR 2,608.7) million equivalent of EUR 10.25 per share in cash. The acquisition was mainly financed through the issuance of share capital. This acquisition was accounted using the acquisition method. For this acquisition, Dufry incurred transaction costs of USD 32.7 million in 2015 presented as other operational expenses and of USD 12.8 million presented as related taxes in the statement of comprehensive income of Dufry, but not reflected in these combined financial statements. For the purpose of these combined financial statements, only those entities of WDF located in the USA or Canada were combined in the formation of Hudson Group. The final fair value of the identifiable assets and liabilities of the WDF entities in USA and Canada at the date of acquisition are as described below: FINAL FAIR VALUE AT AUGUST 7, 2015 IN MILLIONS OF IN EUR IN USD Trade receivables 37.4 41.0 Inventories 23.5 25.8 Other current assets 14.0 15.3 Property, plant and equipment 34.7 38.0 Concession rights 165.0 180.9 Other non-current assets 9.1 10.0 Deferred tax assets 3.2 3.5 Trade payables (45.5 ) (49.9 ) Financial debt (0.9 ) (1.0 ) Other liabilities (22.0 ) (24.2 ) Deferred tax liabilities (46.5 ) (50.9 ) Fair value of non-controlling interests (4.8 ) (5.2 ) Identifiable net assets 167.2 183.3 Hudson’s share in these net assets 167.2 183.3 Goodwill 179.7 197.0 Total purchase price allocated to US and Canada entities 346.9 380.3 From the date when Hudson took control of the US and Canada entities of the WDF operations in August 2015 until December 2015 these operations contributed USD 171.3 million in turnover and USD (1.5) million in operating profit to the statement of comprehensive income of Hudson. If the business combination had occurred as at the beginning of 2015, US and Canada entities of WDF would have generated a turnover during 2015 of USD 381.7 million and an operating profit of approximately USD 3.0 million. |
7. TURNOVER
7. TURNOVER | 12 Months Ended |
Dec. 31, 2017 | |
Turnover Abstract | |
TURNOVER | IN MILLIONS OF USD 2017 2016 2015 Net sales 1,760.8 1,650.1 1,369.6 Advertising income 41.7 37.1 33.4 Turnover 1,802.5 1,687.2 1,403.0 NET SALES BREAKDOWN Net sales by product categories IN MILLIONS OF USD 2017 2016 2015 Confectionery, Food and Catering 628.0 572.3 469.6 Perfumes and Cosmetics 258.4 226.3 174.6 Fashion, Leather and Baggage 220.1 183.3 146.2 Literature and Publications 175.6 192.5 187.2 Wine and Spirits 88.0 75.3 62.9 Tobacco goods 52.2 47.4 46.3 Watches, Jewelry and Accessories 115.5 86.2 76.9 Electronics 87.7 78.5 66.6 Other product categories 135.3 188.3 139.3 Total 1,760.8 1,650.1 1,369.6 Net sales by market sector IN MILLIONS OF USD 2017 2016 2015 Duty-paid 1,334.4 1,284.0 1,075.2 Duty-free 426.4 366.1 294.4 Total 1,760.8 1,650.1 1,369.6 Net sales by channel IN MILLIONS OF USD 2017 2016 2015 Airports 1,662.6 1,565.9 1,307.6 Downtown and hotel shops 43.1 29.5 13.1 Railway stations and other 55.1 54.7 48.9 Total 1,760.8 1,650.1 1,369.6 |
8. SELLING EXPENSES
8. SELLING EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Selling Expenses | |
SELLING EXPENSES | IN MILLIONS OF USD 2017 2016 2015 Concession fees and rents (note 33) (399.1 ) (375.3 ) (307.0 ) Credit card commissions (29.0 ) (27.7 ) (20.9 ) Advertising and commission expenses (0.9 ) (0.8 ) (0.9 ) Packaging materials (2.5 ) (2.3 ) (2.2 ) Other selling expenses (3.3 ) (3.4 ) (3.3 ) Selling expenses (434.8 ) (409.5 ) (334.3 ) Concession and rental income (note 33) 11.6 11.9 7.3 Commercial services and other selling income 2.0 1.9 1.3 Selling income 13.6 13.8 8.6 Total (421.2 ) (395.7 ) (325.7 ) |
9. PERSONNEL EXPENSES
9. PERSONNEL EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Personnel Expenses | |
PERSONNEL EXPENSES | IN MILLIONS OF USD 2017 2016 2015 Salaries and wages (298.4 ) (270.3 ) (227.0 ) Social security expenses (43.0 ) (38.5 ) (29.8 ) Other personnel expenses (29.9 ) (28.6 ) (22.7 ) Total (371.3 ) (337.4 ) (279.5 ) Full time equivalents (FTE - unaudited) 8,894 8,485 8,124 |
10. GENERAL EXPENSES
10. GENERAL EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
General Expenses | |
GENERAL EXPENSES | IN MILLIONS OF USD 2017 2016 2015 Franchise fees and commercial services (63.2 ) (62.5 ) (51.7 ) Repairs, maintenance and utilities (17.1 ) (15.5 ) (14.4 ) Office and administration (16.2 ) (14.5 ) (11.4 ) Premises (14.9 ) (16.3 ) (13.3 ) Legal, consulting and audit fees (13.5 ) (11.8 ) (14.5 ) Travel, entertainment and representation (11.7 ) (11.6 ) (10.4 ) Taxes, other than income taxes (7.1 ) (8.4 ) (6.3 ) IT expenses (6.3 ) (4.6 ) (3.7 ) PR and advertising (3.2 ) (2.7 ) (2.1 ) Insurances (2.2 ) (2.2 ) (2.0 ) Bank expenses (1.5 ) (1.8 ) (1.1 ) Total (156.9 ) (151.9 ) (130.9 ) |
11. INVESTMENTS IN ASSOCIATES
11. INVESTMENTS IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Associates | |
INVESTMENTS IN ASSOCIATES | This includes Nuance Group (Chicago) LLC which operates four duty-free stores at O’Hare International Airport of Chicago in Illinois, USA, and as of 2017 Midway Partnership LLC operating duty paid stores at Chicago Midway International Airport. Hudson’s interests in Nuance Group (Orlando) LLC and Broward Duty Free LLC were sold on March 15, 2015, for USD 30 million to an existing shareholder at book value. These investments are accounted for using the equity method. Summarized statement of financial position IN MILLIONS OF USD DEC 31, 2017 NUANCE GROUP (CHICAGO) LLC DEC 31, 2017 MIDWAY PARTNERSHIP LLC DEC 31, 2017 TOTAL DEC 31, 2016 NUANCE GROUP (CHICAGO) LLC Cash and cash equivalents 2.6 1.4 4.0 2.5 Other current assets 4.0 2.7 6.7 4.0 Non-current assets 3.0 1.0 4.0 3.2 Other current liabilities (3.9) (2.9) (6.8) (2.8) Net assets 5.7 2.2 7.9 6.9 Proportion of Hudson’s ownership 35.0% 50.0% 35.0% Hudson’s share of the equity 2.0 1.1 3.1 2.4 Summarized statement of comprehensive income 2017 IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Turnover 18.7 15.1 – 33.8 Depreciation, amortization and impairment (0.1 ) – – (0.1 ) Net earnings for the year (1.0 ) 0.2 – (0.8 ) Total comprehensive income (1.0 ) 0.2 – (0.8 ) HUDSON'S SHARE 35.0% 50.0% Net earnings for the year (0.4 ) 0.1 – (0.3 ) Total comprehensive income (0.4 ) 0.1 – (0.3 ) 2016 IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Turnover 20.0 – – 20.0 Depreciation, amortization and impairment (0.1 ) – – (0.1 ) Net earnings for the year (2.1 ) – – (2.1 ) Total comprehensive income (2.1 ) – – (2.1 ) HUDSON'S SHARE 35.0% Net earnings for the year (0.7 ) – – (0.7 ) Total comprehensive income (0.7 ) – – (0.7 ) 2015 IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Turnover 23.9 – 4.4 28.3 Depreciation, amortization and impairment (0.2 ) – (0.1 ) (0.3 ) Other operational result – – 1.1 1.1 Net earnings for the year 3.5 – 1.4 4.9 Total comprehensive income 3.5 – 1.4 4.9 HUDSON'S SHARE 35.0% Net earnings for the year 1.2 – 0.5 1.7 Total comprehensive income 1.2 – 0.5 1.7 The information above reflects the amounts presented in the financial statements of the associates (other than Hudson’s share of amounts) adjusted for differences in accounting policies between the associates and Hudson. Reconciliation of the carrying amount of its investments IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Net earnings 1.2 – 0.5 1.7 Dividends received (0.7 ) – (0.5 ) (1.2 ) Disposals – – (30.0 ) (30.0 ) Carrying value at December 31, 2015 3.3 – – 3.3 Net earnings (0.7 ) – – (0.7 ) Dividends received (0.2 ) – – (0.2 ) Carrying value at December 31, 2016 2.4 – – 2.4 Contribution to new partnership – 1.0 – 1.0 Net earnings (0.4 ) 0.1 – (0.3 ) Carrying value at December 31, 2017 2.0 1.1 – 3.1 |
12. DEPRECIATION, AMORTIZATION
12. DEPRECIATION, AMORTIZATION AND IMPAIRMENT | 12 Months Ended |
Dec. 31, 2017 | |
Depreciation Amortization And Impairment | |
DEPRECIATION, AMORTIZATION AND IMPAIRMENT | IN MILLIONS OF USD 2017 2016 2015 Depreciation (64.5 ) (61.4 ) (49.7 ) Impairment (0.2 ) – (1.4 ) Subtotal (note 17 Property, Plant and Equipment) (64.7 ) (61.4 ) (51.1 ) Amortization (44.0 ) (42.3 ) (35.6 ) Subtotal (note 19 Intangible Assets) (44.0 ) (42.3 ) (35.6 ) Total (108.7 ) (103.7 ) (86.7 ) |
13. OTHER OPERATIONAL RESULT
13. OTHER OPERATIONAL RESULT | 12 Months Ended |
Dec. 31, 2017 | |
Other Operational Result | |
OTHER OPERATIONAL RESULT | This line includes non-recurring transactions, impairments of financial assets and changes in provisions. IN MILLIONS OF USD 2017 2016 2015 Consulting fees, expenses related to projects and start-up expenses (0.2 ) (0.3 ) (0.5 ) Impairment of loans and other receivables (0.9 ) (1.4 ) (0.6 ) Closing or restructuring of operations (2.7 ) (8.3 ) (2.0 ) Losses on sale of non-current assets (3.3 ) (2.0 ) (0.4 ) Project-related costs (3.4 ) - - Other operating expenses (3.7 ) (2.3 ) 0.3 Other operational expenses (14.2 ) (14.3 ) (3.2 ) IN MILLIONS OF USD 2017 2016 2015 Insurance - compensation for losses 0.1 0.1 - Gain on sale of non-current assets - 0.1 0.5 Recovery of write offs / release of allowances / debt waiver 9.4 4.0 - Other operating income 1.0 0.8 1.0 Other operational income 10.5 5.0 1.5 IN MILLIONS OF USD 2017 2016 2015 Other operational expenses (14.2 ) (14.3 ) (3.2 ) Other operational income 10.5 5.0 1.5 Other operational result (3.7 ) (9.3 ) (1.7 ) |
14. INTEREST
14. INTEREST | 12 Months Ended |
Dec. 31, 2017 | |
Interest | |
INTEREST | IN MILLIONS OF USD 2017 2016 2015 EXPENSES ON FINANCIAL LIABILITIES Interest expense (29.4 ) (29.1 ) (24.7 ) Other financial expenses (0.5 ) (0.5 ) (0.6 ) Interest expense on financial liabilities (29.9 ) (29.6 ) (25.3 ) EXPENSES ON NON-FINANCIAL LIABILITIES Interest expense (0.3 ) (0.2 ) (0.1 ) Total interest expense (30.2 ) (29.8 ) (25.4 ) INCOME ON FINANCIAL ASSETS Interest income 1.8 2.0 1.6 Other financial income 0.1 0.1 – Interest income on financial assets 1.9 2.1 1.6 Total interest income 1.9 2.1 1.6 |
15. INCOME TAXES
15. INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
INCOME TAXES | INCOME TAX RECOGNIZED IN THE COMBINED STATEMENT OF COMPREHENSIVE INCOME IN MILLIONS OF USD 2017 2016 2015 Current income taxes (8.5 ) (8.4 ) (5.4 ) of which corresponding to the current period (8.5 ) (7.3 ) (8.1 ) of which adjustments recognized in relation to prior years – (1.1 ) 2.7 Deferred income taxes (34.4 ) 42.7 1.6 of which related to the origination or reversal of temporary differences 5.8 10.3 1.6 of which adjustments recognized in relation to prior years – 32.4 – of which adjustments due to change in tax rates (40.2 ) – – Total (42.9 ) 34.3 (3.8 ) IN MILLIONS OF USD 2017 2016 2015 Earnings before income tax (EBT) 32.3 15.5 22.1 Expected tax rate in % 35.2% 36.2% 36.9% Tax at the expected rate (11.3 ) (5.6 ) (8.2 ) EFFECT OF Different tax rates for subsidiaries in other jurisdictions 0.5 (0.2 ) (0.7 ) Effect of changes in tax rates on previously recognized deferred tax assets and liabilities (40.2 ) – (0.6 ) Non-deductible expenses 0.3 (0.5 ) 2.4 Net change of unrealized tax loss carry-forwards (2.0 ) (4.1 ) – Non recoverable withholding taxes – – (0.2 ) Minority interests 11.2 10.1 9.5 Adjustments recognized in relation to prior year – 31.3 2.7 Other items (1.4 ) 3.3 (8.7 ) Total (42.9 ) 34.3 (3.8 ) The expected tax rate in % approximates the average income tax rate of the countries where the Group is active, weighted by the profitability of the respective operations. For 2017, there have been no significant changes in these income tax rates. In December 2017, a significant decrease of the US federal income tax rate has been enacted, applicable for the year 2018 and onwards. The reduction in the U.S. federal corporate income tax rate from 35 % to 21 % resulted in a net downward adjustment of USD 40.2 million in relation to deferred taxes. |
16. EARNINGS PER SHARE
16. EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT The information on earnings per share for Hudson Group pursuant to IAS 33 has not been presented, as the combined entities have not formed a statutory group and, as such Hudson Group has no historical capital structure. |
17. PROPERTY, PLANT AND EQUIPME
17. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 2017 IN MILLIONS OF USD BUILDINGS & LEASEHOLD IMPROVEMENTS FURNITURE FIXTURES COMPUTER HARDWARE VEHICLES WORK IN PROGRESS TOTAL AT COST Balance at January 1 226.6 182.2 28.1 3.8 20.0 460.7 Additions (note 18) 13.4 8.4 6.5 0.5 47.5 76.3 Disposals (20.8 ) (10.7 ) (0.5 ) (0.3 ) – (32.3 ) Reclassification within classes 29.3 12.7 5.6 0.1 (47.7 ) – Reclassification to intangible assets – – (1.0 ) – – (1.0 ) Currency translation adjustments 2.7 1.7 0.2 – 0.3 4.9 Balance at December 31 251.2 194.3 38.9 4.1 20.1 508.6 ACCUMULATED DEPRECIATION Balance at January 1 (98.6 ) (80.5 ) (18.0 ) (2.7 ) – (199.8 ) Additions (note 12) (31.8 ) (27.6 ) (4.7 ) (0.4 ) – (64.5 ) Disposals 18.2 9.6 0.4 0.3 – 28.5 Reclassification within classes (2.1 ) 2.6 (0.5 ) – – – Currency translation adjustments (1.6 ) (1.2 ) (0.2 ) (0.1 ) – (3.1 ) Balance at December 31 (115.9 ) (97.1 ) (23.0 ) (2.9 ) – (238.9 ) IMPAIRMENT Balance at January 1 (3.3 ) (1.3 ) – – – (4.6 ) Impairment (note 12) (0.2 ) – – – – (0.2 ) Currency translation adjustments – – – – – – Balance at December 31 (3.5 ) (1.3 ) – – – (4.8 ) CARRYING AMOUNT At December 31, 2017 131.8 95.9 15.9 1.2 20.1 264.9 2016 IN MILLIONS OF USD BUILDINGS & LEASEHOLD IMPROVEMENTS FURNITURE FIXTURES COMPUTER HARDWARE VEHICLES WORK IN PROGRESS TOTAL AT COST Balance at January 1 183.8 151.1 21.1 3.5 27.8 387.3 Additions (note 18) 13.5 6.9 2.5 0.3 69.2 92.4 Disposals (10.5 ) (8.6 ) – – (1.6 ) (20.7 ) Reclassification within classes 39.0 32.1 4.3 – (75.4 ) – Currency translation adjustments 0.8 0.7 0.2 – – 1.7 Balance at December 31 226.6 182.2 28.1 3.8 20.0 460.7 ACCUMULATED DEPRECIATION Balance at January 1 (75.1 ) (63.0 ) (15.2 ) (2.3 ) – (155.6 ) – Additions (note 12) (32.7 ) (25.4 ) (2.9 ) (0.4 ) – (61.4 ) Disposals 9.6 8.3 0.3 – – 18.2 Currency translation adjustments (0.4 ) (0.4 ) (0.2 ) – – (1.0 ) Balance at December 31 (98.6 ) (80.5 ) (18.0 ) (2.7 ) – (199.8 ) IMPAIRMENT Balance at January 1 (2.7 ) (1.7 ) – – (0.1 ) (4.5 ) Disposals – 0.4 – – 0.1 0.5 Currency translation adjustments (0.6 ) – – – – (0.6 ) Balance at December 31 (3.3 ) (1.3 ) – – – (4.6 ) CARRYING AMOUNT At December 31, 2016 124.7 100.4 10.1 1.1 20.0 256.3 |
18. CASH FLOW USED FOR PURCHASE
18. CASH FLOW USED FOR PURCHASE OF PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flow Used For Purchase Of Property Plant And Equipment | |
CASH FLOW USED FOR PURCHASE OF PROPERTY, PLANT AND EQUIPMENT | IN MILLIONS OF USD 2017 2016 2015 Payables for capital expenditure at the beginning of the period (14.4 ) (10.7 ) (5.1 ) Additions of property, plant and equipment (note 17) (76.3 ) (92.4 ) (55.0 ) Payables for capital expenditure at the end of the period 11.1 14.4 10.7 Currency translation adjustments – 0.4 – Total Cash Flow (79.6 ) (88.3 ) (49.4 ) |
19. INTANGIBLE ASSETS
19. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | |
INTANGIBLE ASSETS | 2017 IN MILLIONS OF USD CONCESSION RIGHTS GOODWILL OTHER TOTAL AT COST Balance at January 1 514.1 317.9 36.7 868.7 Additions (note 20) 2.7 – 5.5 8.2 Reclassification from property, plant & equipment – – 1.0 1.0 Currency translation adjustments 18.0 13.3 (3.4 ) 27.9 Balance at December 31 534.8 331.2 39.8 905.8 ACCUMULATED AMORTIZATION Balance at January 1 (148.1 ) – (29.4 ) (177.5 ) Additions (note 12) (39.2 ) – (4.8 ) (44.0 ) Currency translation adjustments (1.6 ) – 3.1 1.5 Balance at December 31 (188.9 ) – (31.1 ) (220.0 ) CARRYING AMOUNT At December 31, 2017 345.9 331.2 8.7 685.8 2016 IN MILLIONS OF USD CONCESSION RIGHTS GOODWILL OTHER TOTAL AT COST Restated * Balance at January 1 511.9 312.3 27.4 851.6 Additions (note 20) – – 5.7 5.7 Currency translation adjustments 2.2 5.6 3.6 11.4 Balance at December 31 514.1 317.9 36.7 868.7 ACCUMULATED DEPRECIATION Balance at January 1 (110.7 ) – (22.4 ) (133.1 ) Additions (note 12) (38.4 ) – (3.9 ) (42.3 ) Currency translation adjustments 1.0 – (3.1 ) (2.1 ) Balance at December 31 (148.1 ) – (29.4 ) (177.5 ) CARRYING AMOUNT At December 31, 2016 366.0 317.9 7.3 691.2 19.1 Goodwill is subject to impairment testing each year. Concession rights with finite useful lives are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. 19.1.1 Impairment test of goodwill For the purpose of impairment testing, goodwill recognized from business combinations has been allocated to a group of cash generating units (CGUs) which represents Hudson Group’s only operating segment “Travel Retail Operations” and amounts to USD 331.2 million. The recoverable amount of the group of CGUs is determined based on value-in-use calculations which require the use of assumptions (see table with key assumptions below). The calculation uses cash flow projections based on financial forecasts approved by the management covering a five-year period. Cash flows beyond the five-year period are extrapolated using a steady growth rate that does not exceed the long-term average growth rate for the respective market and is consistent with forecasted growth included in the travel related retail industry reports. The key assumptions (in %) used for determining the recoverable amounts of goodwill in Hudson Group are: POST TAX DISCOUNT RATES PRE TAX DISCOUNT RATES GROWTH RATES FOR NET SALES 2017 2016 2017 2016 2017 2016 7.27 6.33 8.79 7.94 4.3-5.6 4.6-8.4 As basis for the calculation of these discount rates, the Group uses the weighted average cost of capital, based on risk free interest rates derived from the past 5 year average of prime 10-year USD bonds rates: 2.23 % (2016: 2.08%). For the calculation of the discount rates and WACC (weighted average cost of capital), the Group used the following re-levered beta: 2017 2016 Beta factor 0.85 0.86 Sensitivity to changes in assumptions Management believes that any reasonably possible change (+ / – 1 %) in the key assumptions, on which the recoverable amounts are based, would not cause the respective recoverable amount to fall below the carrying amount. 19.1.2 Key assumptions used for value-in-use calculations The calculation of value-in-use is most sensitive to the following assumptions: – Sales growth – Growth rate used to extrapolate – Gross margin and suppliers prices – Concession fee levels – Discount rates Sales growth Sales growth is based on statistics published by external experts, such as ACI (Airports Council International) to estimate the development of passenger traffic per country where Hudson is active. For the budget year, the management also takes into consideration specific price inflation factors of the country, the cross currency effect and the expected potential changes to capture clients (penetration) per business unit. Gross rates used to extrapolate For the period after 5 years, Hudson has used a growth rate of 2.0 % (2016: 2.0 %) to extrapolate the cash flow projections. Gross margins The expected gross margins are based on average product assortment values estimated by the management for the budget 2017. These values are maintained over the planning period or where specific actions are planned and have been increased or decreased by up to 1 % over the 5 year planning horizon compared to the historical data. The gross margin is also affected by supplier’s prices. Estimates are obtained from global negotiations held with the main suppliers for the products and countries for which products are sourced, as well as data relating to specific commodities during the months before the budget. Concession fee levels These assumptions regarding the concession fee evolution are important and monitored in the specific market as well as the renewal conditions and competitor behavior where the CGU is active. For a CGU subject to a value-in-use calculation, the management expects the competitive position to remain stable over the budget period. Discount rates Several factors affect the discount rates: – For the financial debt part, the rate is based on the average interest of the past 5 years of the respective ten-year government bond and is increased by the Group’s effective bank spread and adjusted by the effective tax rate and country risk of the CGU. – For the equity part, a 5 % equity risk premium is added to the base rate commented above and adjusted by the Beta of Hudson’s peer group. The same methodology is used by the management to determine the discount rate used in discounted cash flow (DCF) valuations, which are a key instrument to assess business potential of new or additional investment proposals. |
20. CASH FLOWS USED FOR PURCHAS
20. CASH FLOWS USED FOR PURCHASE OF INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flows Used For Purchase Of Intangible Assets | |
CASH FLOWS USED FOR PURCHASE OF INTANGIBLE ASSETS | IN MILLIONS OF USD 2017 2016 2015 Additions of intangible assets (note 19) (8.2 ) (5.7 ) (3.0 ) Total Cash Flow (8.2 ) (5.7 ) (3.0 ) |
21. DEFERRED TAX ASSETS AND LIA
21. DEFERRED TAX ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Deferred tax assets and liabilities [abstract] | |
DEFERRED TAX ASSETS AND LIABILITIES | Temporary differences arise from the following positions: IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 DEFERRED TAX ASSETS Property, plant and equipment 4.0 47.4 Intangible assets 19.8 60.1 Provisions and other payables 11.7 30.8 Tax loss carry-forward 51.5 57.5 Other 15.5 12.0 Total 102.5 207.8 DEFERRED TAX LIABILITIES Property, plant and equipment (0.5 ) (50.4 ) Intangible assets (59.8 ) (68.3 ) Provisions and other payables – (0.8 ) Other (2.0 ) (7.1 ) Total (62.3 ) (126.6 ) Deferred tax assets, net 40.2 81.2 Deferred tax balances are presented in the consolidated statement of financial position as follows: IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Deferred tax assets 90.3 153.0 Deferred tax liabilities (50.1 ) (71.8 ) Balance at December 31 40.2 81.2 Reconciliation of movements to the deferred taxes: IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Changes in deferred tax assets (62.7 ) 6.5 Changes in deferred tax liabilities 21.7 36.8 Currency translation adjustments 6.4 (0.1 ) Deferred tax income (expense) at December 31 (34.6 ) 43.2 THEREOF Recognized in the statement of comprehensive income (34.4 ) 42.7 Recognized in equity (0.2 ) 0.5 Tax loss carry-forwards The unrecognized tax loss carry-forwards by expiry date are as follows: IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 DEC 31, 2015 Expiring within 1 to 3 years 4.4 – – Expiring within 4 to 7 years 0.8 – – Expiring after 7 years 39.8 31.9 21.3 Total 1 45.0 31.9 21.3 1 This amount includes USD 21.3 million added through business combination in 2015 |
22. OTHER NON-CURRENT ASSETS
22. OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Other Non-current Assets | |
OTHER NON-CURRENT ASSETS | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Guarantee deposits 2.5 1.8 Loans and contractual receivables 24.4 26.4 Other 0.1 6.7 Subtotal 27.0 34.9 Allowances (2.1 ) (3.8 ) Total 24.9 31.1 MOVEMENT IN ALLOWANCES IN MILLIONS OF USD 2017 2016 Balance at January 1 (3.8 ) (2.4 ) Creation (0.3 ) (1.4 ) Utilization 2.0 - Balance at December 31 (2.1 ) (3.8 ) |
23. INVENTORIES
23. INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventories Abstract | |
INVENTORIES | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Purchased inventories at cost 192.4 171.7 Inventory allowance (6.4 ) (10.3 ) Total 186.0 161.4 CASH FLOWS USED FOR INCREASE / FROM DECREASE IN INVENTORIES IN MILLIONS OF USD 2017 2016 2015 Balance at January 1 171.7 155.4 114.7 Balance at December 31 192.4 171.7 155.4 Gross change - at cost (20.7 ) (16.3 ) (40.7 ) Business combinations (note 6) – – 25.8 Utilization of allowances (in prior years: other cash flow effects) (8.9 ) 0.5 0.3 Currency translation adjustments 2.7 1.6 (2.5 ) Cash Flow – (increase) / decrease in inventories (26.9 ) (14.2 ) (17.1 ) Cost of sales includes inventories written down to net realizable value and inventory differences of USD 8.5 (2016: 8.4) million. |
24. TRADE RECEIVABLES
24. TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Trade Receivables | |
TRADE RECEIVABLES | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Trade receivables, gross 5.3 8.4 Allowances (0.7 ) (0.2 ) Trade receivables, net 4.6 8.2 Trade receivables are stated at their nominal value less allowances for doubtful amounts. These allowances are established based on an individual evaluation when collection appears to be no longer probable. AGING ANALYSIS OF TRADE RECEIVABLES IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Not due 0.7 4.1 OVERDUE Up to 30 days 0.6 0.1 31 to 60 days – 0.2 61 to 90 days 0.8 0.1 More than 90 days 3.2 3.9 Total overdue 4.6 4.3 Trade receivables, gross 5.3 8.4 MOVEMENT IN ALLOWANCES IN MILLIONS OF USD 2017 2016 Balance at January 1 (0.2 ) (0.4 ) Creation (0.4 ) – Utilized – 0.2 Currency translation adjustments (0.1 ) – Balance at December 31 (0.7 ) (0.2 ) |
25. OTHER ACCOUNTS RECEIVABLE
25. OTHER ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2017 | |
Other Accounts Receivable | |
OTHER ACCOUNTS RECEIVABLE | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Receivables for refund from suppliers and related services 32.1 17.2 Guarantee deposits 0.2 0.2 Personnel receivables 1.3 1.3 Loans receivable 4.8 – Accounts receivables 38.4 18.7 Prepayments for concession fees and rents 8.0 14.0 Prepayments of sales and other taxes 1.5 4.3 Prepayments, other 1.1 2.7 Prepayments 10.6 21.0 Receivables from subtenants and business partners 1.2 4.5 Other 9.2 4.6 Other receivables 10.4 9.1 Total 59.4 48.8 Allowances – (1.5 ) Total 59.4 47.3 MOVEMENT IN ALLOWANCES IN MILLIONS OF USD 2017 2016 Balance at January 1 (1.5 ) (2.1 ) Creation – (1.3 ) Utilized 1.5 1.9 Balance at December 31 – (1.5 ) |
26. SHARE-BASED PAYMENTS
26. SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Payments | |
SHARE-BASED PAYMENTS | SHARE PLAN OF DUFRY AG On December 1, 2017, Dufry granted to the members of the Group Executive Committee (GEC) and selected members of the senior management the Award 2017 consisting of 24,474 PSU units. The PSU Award 2017 has a contractual life of 29 months and will vest on May 4, 2020. At grant date the fair value of one PSU Award 2017 represents the market value for one Dufry share at that date, i. e. CHF 140.69, adjusted by the probability that participants comply with the ongoing contractual relationship clause. As of December 31, 2017, no PSU Award 2017 forfeited, so that 24,474 PSU Award 2017 remain outstanding. On October 27, 2016, Dufry granted to Hudson’s members of the Group Executive Committee (GEC) and selected members of the senior management the Award 2016 consisting of 27.399 PSU. The Performance Share Unit (PSU) Award 2016 has a contractual life of 26 months and will vest on May 1, 2019. At grant date the fair value of one PSU Award 2016 represents the market value for one Dufry share at that date, i. e. CHF 127.00, adjusted by the probability that participants comply with the ongoing contractual relationship clause. As of December 31, 2017, no PSU Award 2016 forfeited, so that all PSU Award 2016 remain outstanding. On October 27, 2016, the Board of Directors of Dufry decided, upon proposal by the Remuneration Committee, to pay out half of the 2015 bonus through a share program. Therefore, 26,530 Rights to Receive Shares (RRS) were awarded to selected members of the senior management of Hudson. These RRS have a contractual life of 26 months and will vest on January 1, 2019. At grant date the fair value of one RRS represents the market value for one Dufry share at that date, i. e. CHF 127.00, adjusted by the probability that participants comply with the ongoing contractual relationship clause. As of December 31, 2017, no RRS forfeited, so that all RRS remain outstanding. One PSU (Award 2017 or Award 2016) will give the right to the holders to receive free of charge up to 1.5 (2016: 2) Dufry shares depending on the effective cumulative amount of cash earnings per share (Cash EPS) reached by Dufry during the years of award and the following two years compared with the target (2017: CHF 25.97, 2016: CHF 24.59). The Cash EPS equals the basic Earnings per Share adjusted for amortization of intangible assets identified during business combinations and non-recurring effects. If at vesting the cumulative adjusted Cash EPS is at target level, each PSU grants one share. If the cumulative adjusted Cash EPS is at 150 % of the target (maximum threshold) or above, each PSU grants 1.5 (2016: 2) shares at vesting, and if the adjusted Cash EPS is at 50 % of the target (minimum threshold) or below, no share will be granted at vesting. If the adjusted Cash EPS is between 50 % and 150 % of the target, the number of shares granted for each PSU will be allocated on a linear basis. Additionally, the allocation of shares is subject to an ongoing contractual relationship of the participant with Dufry throughout the vesting period. Holders of PSU are not entitled to vote or receive dividends, like shareholders do. One RRS (Award 2016) will give the right to the holders to receive free of charge one Dufry share subject to an ongoing contractual relationship with Dufry throughout the vesting period (Award 2016 until January 1, 2019). Holders of these rights are not entitled to vote or receive dividends, like shareholders do. With the Award 2015 Dufry granted to the members of the GEC 22,715 PSU options. One PSU gave the right to receive on May 3, 2018, free of charge, up to two shares, based on the performance achieved by Dufry. For the PSU Award 2015, the performance was measured based on the target Cash EPS of CHF 24.42 to be achieve over the three-year period 2015 – 2017 as described for the awards mentioned above. In May 2018 the PSU award 2015 will vest and Dufry will assign 0.926 Dufry shares per PSU award 2015 as during the preceding three-year period the effectively cash EPS achieved was of CHF 23.51, making a total of 21,034 shares. In 2017 Hudson recognized through profit and loss share-based payment expenses for a total of USD 4.6 (2016: 1.2) million. |
27. BREAKDOWN OF TRANSACTIONS W
27. BREAKDOWN OF TRANSACTIONS WITH NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
Breakdown Of Transactions With Non-controlling Interests | |
BREAKDOWN OF TRANSACTIONS WITH NON-CONTROLLING INTERESTS | The following table reflects increase in share capital of companies with non-controlling interests that have been recognized in equity attributable to non-controlling interests at fair value: IN MILLIONS OF USD 2017 2016 HG Midway JV 2.2 – WDFG Partners Duty Free LLC 1.4 – HG Tucson Retailers JV 1.4 – Dufry MSP Retailers JV 1.1 0.2 Increase in share capital of other subsidiaries 4.9 5.3 Total 11.0 5.5 |
28. INFORMATION ON COMPANIES WI
28. INFORMATION ON COMPANIES WITH NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
Information On Companies With Non-controlling Interests | |
INFORMATION ON COMPANIES WITH NON-CONTROLLING INTERESTS | The non-controlling interests (NCI) comprise the portions in equity and net earnings in 100 (Dec. 2017) subsidiaries that are not fully owned by the Group. The list of subsidiaries (refer to the last note of these financial statements) provides the following information of subsidiaries with NCI’s: name, principal place of business by country, the proportion of ownership hold by the Group and the share capital (if applicable). Our non-controlling interests consists of partners in either common law partnerships or LLC’s (collectively, “Joint Ventures”). Our partners own percentages of the Joint Ventures and are therefore entitled to distributions of net earnings. While there is some variation among our agreements, it is generally the case that the Executive Management Committee, controlled by Hudson’s majority of representatives, is obligated to distribute, each quarter, the excess of an appropriate reserve reasonably determined by the committee to be necessary to meet the current and anticipated needs of the Joint Venture. Such distributions are allocated among the partners, Hudson included, based on each partner’s percentage interest in the Joint Venture. Distributions are discretionary only to the extent that reserves are reasonably required as above stated. Each of the Joint Ventures is treated as a separate operating entity and each has its own revenues and expenses. No expenses of Hudson are shared with any Joint Venture but Hudson does receive payments for “back office” services (financial, legal, HR, IT, etc.) that are provided to the Joint Venture by Hudson in amounts typically calculated as a percentage of the gross revenues of the Joint Venture. These amounts are stated in each Joint Venture agreement and vary by agreement. They are established at the time of agreement by calculating the internal cost for the services as a percentage of Hudson’s gross revenues and that percentage of the Joint Venture gross revenue is inserted in the Joint Venture agreement as Hudson’s compensation. Such payments are fees for services and not shared expenses. In addition to the above, Hudson receives occasional, specific reimbursement for certain special services rendered and/or payroll expended on specific projects. Store openings are an example. Large numbers of Hudson personnel are made available to a Joint Venture in order to complete tasks in a mandated time frame that would be impossible to meet with the Joint Venture’s own employees. With the exception of the one presented in the following tables, none of the subsidiaries have non-controlling interests that are material for the Group. Summarized statement of comprehensive income IN MILLIONS OF USD 2017 2016 2015 Hudson Las Vegas JV Turnover 67.1 64.6 64.8 Depreciation, amortization and impairment (1.3 ) (1.4 ) (0.8 ) Net earnings for the year 10.9 9.6 11.1 Non-controlling interest 27% 27% 27% Non-controlling interest share of the net earnings Hudson Las Vegas 2.9 2.6 3.0 Non-controlling interests in other subsidiaries 26.9 23.7 23.0 Total comprehensive income attributable to NCI 29.8 26.3 26.0 Summarized statement of financial position IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 DEC 31, 2015 Hudson Las Vegas JV Cash and cash equivalents 5.2 4.1 6.5 Other current assets 7.2 8.0 5.4 Non-current assets 9.4 8.9 9.0 Other current liabilities (3.5 ) (3.5 ) (4.5 ) Net assets 18.3 17.5 16.4 Non-controlling interest 27% 27% 27% Non-controlling interest share of the equity Hudson Las Vegas 4.9 4.7 4.4 Non-controlling interests in other subsidiaries 73.8 67.5 63.4 Total net assets attributable to NCI 78.7 72.2 67.8 |
29. FINANCIAL DEBT
29. FINANCIAL DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Financial Debt | |
FINANCIAL DEBT | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Bank debt (overdrafts) – 1.5 Related party loans 80.7 – Financial debt, short-term 80.7 1.5 Related party loans 520.4 475.2 Financial debt, long-term 520.4 475.2 Total 601.1 476.7 OF WHICH ARE Bank debt – 1.5 Related party loans 601.1 475.2 The related party long-term loans (refer to note 32) are denominated in USD and CAD. The interest rate for USD loans in 2017 was 5.9 % (2016: 5.9 %). The interest rate for CAD loans in 2017 was 3.9 %. DETAILED CREDIT FACILITIES Dufry, jointly with Hudson, negotiates and manages its key credit facilities centrally and then provides intercompany financing to its subsidiaries. Minor credit lines at local level are kept for practical reasons. Hudson’s credit lines are with Credit Agricole and Bank of America. NET DEBT IN MILLIONS OF USD CASH AND CASH EQUIVALENTS FINANCIAL DEBT CURRENT FINANCIAL DEBT NON-CURRENT NET DEBT Balance at January 1, 2017 187.6 1.5 475.2 289.1 Cash flows from operating, financing and investing activities (51.1 ) – – 51.1 Repayments of financial debt – (21.5 ) (6.5 ) (28.0 ) Loan from common control transaction – 103.1 51.6 154.7 Cash flow (51.1 ) 81.6 45.1 177.8 Currency translation adjustments 0.9 (2.4 ) 0.1 (3.2 ) Non-cash movements 0.9 (2.4 ) 0.1 (3.2 ) Balance at December 31, 2017 137.4 80.7 520.4 463.7 IN MILLIONS OF USD CASH AND CASH EQUIVALENTS FINANCIAL DEBT CURRENT FINANCIAL DEBT NON-CURRENT NET DEBT Balance at January 1, 2016 160.4 0.9 483.1 323.6 Cash flows from operating, financing and investing activities 26.1 – – (26.1 ) Repayments of financial debt – – (7.3 ) (7.3 ) Loan from common control transaction – – – – Cash flow 26.1 – (7.3 ) (33.4 ) Currency translation adjustments 1.1 0.6 (0.6 ) (1.1 ) Non-cash movements 1.1 0.6 (0.6 ) (1.1 ) Balance at December 31, 2016 187.6 1.5 475.2 289.1 IN MILLIONS OF USD CASH AND CASH EQUIVALENTS FINANCIAL DEBT CURRENT FINANCIAL DEBT NON-CURRENT NET DEBT Balance at January 1, 2015 104.5 – 473.6 369.1 Cash flows from operating, financing and investing activities 54.5 – – (54.5 ) Business combinations (acquisitions) 4.3 1.0 – (3.3 ) Repayments of financial debt – 0.9 (10.9 ) (10.0 ) Loan from common control transaction – – – – Cash flow 58.8 1.9 (10.9 ) (67.8 ) Currency translation adjustments (2.9 ) (1.0 ) (0.1 ) 1.8 Non-cash movements (2.9 ) (1.0 ) (0.1 ) 1.8 Other non-cash transactions * – – 20.5 20.5 Balance at December 31, 2015 160.4 0.9 483.1 323.6 * Related to the acquisition of the Nuance Group AG, (USA) |
30. OTHER LIABILITIES
30. OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities | |
OTHER LIABILITIES | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Personnel payables 38.8 39.2 Other service related vendors 23.3 51.3 Accrued liabilities 16.5 11.8 Concession fee payables 12.8 18.9 Sales tax and other tax liabilities 11.9 12.5 Payables for capital expenditure 11.1 14.4 Accrued lease expenses 2.0 – Payables to Joint Venture partners 0.8 1.0 Other payables 14.9 19.9 Total 132.1 169.0 THEREOF Current liabilities 132.1 167.9 Non-current liabilities – 1.1 Total 132.1 169.0 |
31. POST-EMPLOYMENT BENEFIT OBL
31. POST-EMPLOYMENT BENEFIT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Post-employment Benefit Obligations | |
POST-EMPLOYMENT BENEFIT OBLIGATIONS | Hudson provides retirement benefits through defined contribution pension plans which are funded by regular contributions made by the employer and the employees to a third-party. As of December 31, 2017, the discretionary credit balance was USD 0.9 million. |
32. RELATED PARTIES AND RELATED
32. RELATED PARTIES AND RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties And Related Party Transactions | |
RELATED PARTIES AND RELATED PARTY TRANSACTIONS | A party is related to the Group if the party directly or indirectly controls, is controlled by, or is under common control with the Group, has an interest in the Group that gives it significant influence over the Group, has joint control over the Group or is an associate or a joint venture of the Group. In addition, members of the key management personnel of the Group or close members of the family are also considered related parties. The following tables reflect related party transactions and transactions with associated companies: Statement of comprehensive income IN MILLIONS OF USD 2017 2016 2015 PURCHASE OF GOODS FROM International Operations & Services (USA) – 37.2 38.4 International Operation & Services (UY) SA 67.4 27.3 7.9 Hudson News Distributors 1 12.2 15.6 19.2 Hudson RPM 1 8.5 5.0 4.3 PURCHASE OF SERVICES FROM Dufry International AG, Franchise fees expense (50.6 ) (42.9 ) (35.9 ) World Duty Free Group SA, Franchise fees expense – (7.2 ) (6.5 ) Nuance Group AG, Franchise fees expense – – (1.8 ) Dufry Finance SNC, Interest expenses – (26.6 ) (24.6 ) Dufry International AG, Interest expenses (28.6 ) (2.5 ) (0.2 ) Dufry Financial Services B. V., Interest expenses (0.9 ) – – Dufry Management AG, IT expenses (1.3 ) – – World Duty Free Group SA, Service fee expenses (0.2 ) – – OTHER OPERATIONAL INCOME FROM Dufry International AG, Debt waiver 9.4 – – SALES OF SERVICES TO Nuance Group (Chicago) LLC 2 0.9 – – 1 Hudson News Distributors and Hudson RPM are controlled by James S. Cohen, a member of Hudson’s board of directors 2 Transactions with associated companies Statement of financial position IN MILLIONS OF USD 2017 2016 ACCOUNTS RECEIVABLES AT DECEMBER 31 Hudson RPM, other receivables 1 0.8 – Nuance Group (Chicago) LLC 2 0.1 – ACCOUNTS PAYABLES AT DECEMBER 31 Dufry International AG, Loans payable, long-term 468.7 475.2 Dufry International AG, Loans payable, short-term 13.1 – Dufry Financial Services B. V., Loans payable, long-term 51.7 – Dufry Financial Services B. V., Loans payable, short-term 67.6 – International Operations & Services (USA), trade payables – 14.8 International Operation & Services (UY) SA, trade payables 31.5 13.9 Hudson News Distributors, trade payables 1 0.1 0.9 Hudson RPM, trade payables 1 – 0.5 Dufry International AG, Fee payables 1.8 50.5 Dufry International AG, Other payables 7.2 7.6 Dufry Financial Services B. V., Other payables 0.2 – World Duty Free Group UK Ltd, Other payables 0.3 – Dufry Management AG, Fee payables 0.1 – Dufry Management AG, Other payables 0.3 – 1 Hudson News Distributors and Hudson RPM are controlled by James S. Cohen, a member of Hudson’s board of directors 2 Transactions with associated companies Board members and executives The compensation to key executives for the services provided during the respective years include all forms of consideration paid, payable or provided by the Group, including compensation in Dufry shares as follows: IN MILLIONS OF USD 2017 2016 2015 Salaries 3.6 3.2 3.0 Variable payment 2.9 2.7 2.5 Non-monetary benefits 0.1 0.1 0.1 Share based payments 4.6 0.6 0.6 Total 11.2 6.6 6.2 During this period the Group had no board members. |
33. COMMITMENTS AND CONTINGENCI
33. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies | |
COMMITMENTS AND CONTINGENCIES | GUARANTEE COMMITMENTS Some long-term concession agreements, which Hudson has entered into, include obligations to fulfil minimal lease payments during the full term of the agreement. The lease payments to airports or terminals are also called concession fees. Some of these agreements have been backed with guarantees provided by Hudson or a financial institution. During the years 2017, 2016 or 2015, no party has exercised their right to call upon such guarantees. LEASE INCOME / (EXPENSE) Lease payments under operating leases have been recognized as an expense for the periods up to December 31, 2017. All accrued, but still unpaid concession fees are presented as liabilities in the statement of financial position. The Group recognized the following lease and sublease as an income / (expense) in the period: IN MILLIONS OF USD 2017 2016 2015 Minimum lease payments (262.4 ) (206.6 ) (170.0 ) Variable rent (136.7 ) (168.7 ) (137.0 ) Concession fees expense (note 8) (399.1 ) (375.3 ) (307.0 ) Sublease income (note 8) 11.6 11.9 7.3 Such fees are usually determined in proportion to sales and require a minimal payment, which varies by contract/agreement. Expected income / (expense) The total of future minimum lease payments under non-cancellable operating leases for each of the following years are as follows: IN MILLIONS OF USD FUTURE EXPENSES Not later than one year 276.7 Later than one year and not later than five years 894.3 Later than five years 536.2 Total 1,707.2 The total of future minimum sublease payments expected to be received under non-cancellable subleases at the end of the reporting period are USD 35.5 million. |
34. FAIR VALUE MEASUREMENT
34. FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurement | |
FAIR VALUE MEASUREMENT | FAIR VALUE OF FINANCIAL INSTRUMENTS CARRIED AT AMORTIZED COST The fair value measurement hierarchy of Hudson’s assets and liabilities, that are measured subsequent to initial recognition at fair value, are grouped into Levels 1 to 3 based on the degree to which the fair value is observable: – Level 1 – Level 2 – Level 3 As of December 31, 2017 and 2016, Hudson Group did not hold any financial assets or liabilities which need to be re-measured at fair value. The Group’s other financial assets and liabilities for which fair values are to be disclosed qualify as Level 2 fair value measurements. Their book values represent a fair approximation of their fair values. There were no transfers between Levels 1 and 2 during the period. |
35. FINANCIAL INSTRUMENTS
35. FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments | |
FINANCIAL INSTRUMENTS | Significant accounting policies are described in note 2.3 and 4. 35.1 Capital comprises equity attributable to the equity holders of the parent adjusted for effects from transactions with non-controlling interests. The primary objective of Hudson’s capital management is to ensure that it maintains an adequate credit rating and sustainable capital ratios in order to support its business and maximize shareholder value. Hudson manages its financing structure and makes adjustments to it in light of its strategy and the long-term opportunities and costs of each financing source. To maintain or adjust the financing structure, Hudson may adjust dividend payments to shareholders, return capital to shareholders, issue new shares or issue equity-linked instruments or equity-like instruments. Furthermore, Hudson monitors the financing structure using a combination of ratios, including a gearing ratio, cash flow considerations and profitability ratios. As for the gearing ratio Hudson includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations. 35.1.1 Gearing ratio The following ratio compares owner’s equity to borrowed funds: IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Cash and cash equivalents (137.4) (187.6) Financial debt, short-term 80.7 1.5 Financial debt, long-term 520.4 475.2 Net debt 463.7 289.1 Equity attributable to equity holders of the parent 493.7 658.2 ADJUSTED FOR Effects from transactions with non-controlling interests 1 0.8 0.4 Total capital 2 494.5 658.6 Total net debt and capital 958.2 947.7 Gearing ratio 48.4% 30.5% 1 Represents the excess paid (received) above fair value of non-controlling interests on shares acquired (sold) as long as there is no change in control (IFRS 10.23) 2 Includes all capital and reserves that are managed as capital Hudson did not hold collateral of any kind at the reporting dates. 35.2 AT DECEMBER 31, 2017 FINANCIAL ASSETS IN MILLIONS OF USD Loans and receivables at FVTPL 1 SUBTOTAL NON-FINANCIAL ASSETS 2 TOTAL Cash and cash equivalents 137.4 – 137.4 – 137.4 Trade receivables 4.6 – 4.6 – 4.6 Other accounts receivable 43.3 – 43.3 16.1 59.4 Other non-current assets 24.9 – 24.9 – 24.9 Total 210.2 – 210.2 FINANCIAL LIABILITIES IN MILLIONS OF USD at amortized cost at FVTPL 1 SUBTOTAL NON-FINANCIAL LIABILITIES 2 TOTAL Trade payables 97.1 – 97.1 – 97.1 Financial debt short-term 80.7 – 80.7 – 80.7 Other liabilities 94.0 – 94.0 38.1 132.1 Financial debt long-term 520.4 – 520.4 – 520.4 Other non-current liabilities – – – – – Total 792.2 – 792.2 AT DECEMBER 31, 2016 FINANCIAL ASSETS IN MILLIONS OF USD Loans and receivables at FVTPL 1 SUBTOTAL NON-FINANCIAL ASSETS 2 TOTAL Cash and cash equivalents 187.6 – 187.6 – 187.6 Trade receivables 8.2 – 8.2 – 8.2 Other accounts receivable 26.2 – 26.2 21.1 47.3 Other non-current assets 24.4 – 24.4 6.7 31.1 Total 246.4 – 246.4 FINANCIAL LIABILITIES IN MILLIONS OF USD at amortized cost at FVTPL 1 SUBTOTAL NON-FINANCIAL LIABILITIES 2 TOTAL Trade payables 91.3 – 91.3 – 91.3 Financial debt short-term 1.5 – 1.5 – 1.5 Other liabilities 143.7 – 143.7 24.2 167.9 Financial debt long-term 475.2 – 475.2 – 475.2 Other non-current liabilities 1.1 – 1.1 – 1.1 Total 712.8 – 712.8 1 Financial assets and financial liabilities at fair value through profit and loss 2 Non-financial assets or non-financial liabilities comprise prepaid expenses and deferred income, which will not generate a cash outflow or inflow as well as other tax positions 35.2.1 Net income by IAS 39 valuation category Financial Assets at December 31, 2017 IN MILLIONS OF USD LOANS AND RECEIVABLES AT FVTPL TOTAL Interest income 1.8 – 1.8 Other finance income 0.1 – 0.1 From interest 1.9 – 1.9 Foreign exchange gain (loss) 1 1.1 – 1.1 Impairments / allowances 2 0.3 – 0.3 Total – from subsequent valuation 1.4 – 1.4 Net (expense) / income 3.3 – 3.3 Financial Liabilities at December 31, 2017 IN MILLIONS OF USD AT AMORTIZED COST AT FVTPL TOTAL Interest expenses (29.4 ) – (29.4 ) Other finance expenses (0.5 ) – (0.5 ) From interest (29.9 ) – (29.9 ) Foreign exchange gain (loss) 1 0.2 – 0.2 Total – from subsequent valuation 0.2 – 0.2 Net (expense) / income (29.7 ) – (29.7 ) 1 This position includes the foreign exchange gain (loss) recognized on third party and intercompany financial assets and liabilities through combined statement of comprehensive income 2 This position includes the income from the released impairments and allowances and recoveries during the period less the increase of impairments and allowances Financial Assets at December 31, 2016 IN MILLIONS OF USD LOANS AND RECEIVABLES AT FVTPL TOTAL Interest income 1.6 - 1.6 Other finance income 0.5 - 0.5 From interest 2.1 - 2.1 Foreign exchange gain (loss) 1 (0.3 ) - (0.3 ) Impairments/allowances 2 (1.5 ) - (1.5 ) Total – from subsequent valuation (1.8 ) - (1.8 ) Net (expense) / income 0.3 - 0.3 Financial Liabilities at December 31, 2016 IN MILLIONS OF USD AT AMORTIZED COST AT FVTPL TOTAL Interest expenses (29.1 ) - (29.1 ) Other finance expenses (0.5 ) - (0.5 ) From interest (29.6 ) - (29.6 ) Foreign exchange gain (loss) 1 (0.1 ) - (0.1 ) Total – from subsequent valuation (0.1 ) - (0.1 ) Net expense (29.7 ) - (29.7 ) 1 This position includes the foreign exchange gain (loss) recognized on third party and intercompany financial assets and liabilities through combined statement of comprehensive income 2 This position includes the income from the released impairments and allowances and recoveries during the period less the increase of impairments and allowances 35.3 FINANCIAL RISK MANAGEMENT OBJECTIVES As a retailer, Hudson has activities which need to be financed in different currencies and are consequently affected by fluctuations of foreign exchange and interest rates. Hudson’s treasury manages the financing of the operations through centralized credit facilities to ensure an adequate allocation of these resources and simultaneously minimize the potential currency financial risk impacts. Hudson continuously monitors the market risk, such as risks related to foreign currency, interest rate, credit, liquidity and capital. Hudson seeks to minimize the currency exposure and interest rates risk using appropriate transaction structures or alternatively, using derivative financial instruments to hedge the exposure to these risks. The treasury policy forbids entering or trading financial instruments for speculative purposes. 35.4 MARKET RISK Hudson’s financial assets and liabilities are mainly exposed to market risk in foreign currency exchange and interest rates. Hudson’s objective is to minimize the statement of comprehensive income impact and to reduce fluctuations in cash flows through structuring the respective transactions to minimize market risks. In cases, where the associated risk cannot be hedged appropriately through a transaction structure, and the evaluation of market risks indicates a material exposure, Hudson may use financial instruments to hedge the respective exposure. Hudson may enter into a variety of financial instruments to manage its exposure to foreign currency risk, including forward foreign exchange contracts, currency swaps and over the counter plain vanilla options. During the current financial year Hudson has not utilized foreign currency forward contracts and options for hedging purposes. 35.5 Hudson manages the cash flow surplus or deficits in foreign currency of the operations through FX-transactions in the respective local currency. Major imbalances in foreign currencies at Group level may be hedged through foreign exchange forwards contracts. 35.5.1 Foreign currency sensitivity analysis Among various methodologies to analyze and manage risk, Hudson utilizes a system based on sensitivity analysis. This tool enables Group treasury to identify the level of risk of each entity. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. Foreign Currency Exposure IN MILLIONS OF USD USD 1 EURO CAD CHF TOTAL DECEMBER 31, 2017 Monetary assets 0.6 – 3.7 – 4.3 Monetary liabilities 6.3 0.1 – 0.2 6.6 Net currency exposure (5.7 ) (0.1 ) 3.7 (0.2 ) (2.3 ) DECEMBER 31, 2016 Monetary assets 0.1 10.3 – – 10.4 Monetary liabilities 18.6 0.2 – 0.9 19.7 Net currency exposure (18.5 ) 10.1 – (0.9 ) (9.3 ) 1 USD held by Canadian subsidiaries The sensitivity analysis includes all monetary assets and liabilities held by each Group company irrespective of whether the positions are third party or intercompany. The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure of Hudson entities at December 31 of the respective year. The values and risk disclosed here are the hedged and not hedged positions assuming a 5 % appreciation of the USD against all other currencies. A positive result indicates a profit, before tax in the statement of comprehensive income or in the hedging and revaluation reserves when the EUR strengthens against the relevant currency. IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Effect on the Statement of Comprehensive Income – profit (loss) of USD (0.3 ) (0.9 ) Effect on the Statement of Comprehensive Income – profit (loss) of CAD 0.2 – Effect on the Statement of Comprehensive Income – profit (loss) of EUR – 0.5 35.6 35.6.1 Allocation of financial assets and liabilities to interest classes IN % IN MILLIONS OF USD AT DECEMBER 31, 2017 Average variable interest rate Average fixed interest rate Variable interest rate Fixed interest rate Total interest bearing Non-interest bearing TOTAL Cash and cash equivalents 0.1 % 6.6 – 6.6 130.8 137.4 Trade receivables – – – 4.6 4.6 Other accounts receivable – – – 43.3 43.3 Other non-current assets 7.3 % 19.2 – 19.2 5.7 24.9 Financial assets 25.8 – 25.8 184.4 210.2 Trade payables – – – 97.1 97.1 Financial debt, short-term – – – 80.7 80.7 Other liabilities – – – 94.0 94.0 Financial debt, long-term 5.7 % – 520.4 520.4 – 520.4 Other non-current liabilities – – – – – Financial liabilities – 520.4 520.4 271.8 792.2 Net financial liabilities (25.8 ) 520.4 494.6 87.4 582.0 IN % IN MILLIONS OF USD AT DECEMBER 31, 2016 Average variable interest rate Average fixed interest rate Variable interest rate Fixed interest rate Total interest bearing Non-interest bearing TOTAL Cash and cash equivalents 0.1 % 184.8 – 184.8 2.8 187.6 Trade receivables – – – 8.2 8.2 Other accounts receivable – – – 26.2 26.2 Other non-current assets 7.0 % 22.5 – 22.5 1.9 24.4 Financial assets 207.3 – 207.3 39.1 246.4 Trade payables – – – 91.3 91.3 Financial debt, short-term – – – 1.5 1.5 Other liabilities – – – 143.7 143.7 Financial debt, long-term 5.9 % – 475.2 475.2 – 475.2 Other non-current liabilities – – – 1.1 1.1 Financial liabilities – 475.2 475.2 237.6 712.8 Net financial liabilities (207.3 ) 475.2 267.9 198.5 466.4 35.7 Credit risk refers to the risk that counterparty may default on its contractual obligations resulting in financial loss to Hudson. Almost all Hudson sales are retail sales made against cash or internationally recognized credit / debit cards. The remaining credit risk is in relation to taxes, refunds from suppliers and guarantee deposits. The credit risk on cash deposits or derivative financial instruments relates to banks or financial institutions. Hudson monitors the credit ranking of these institutions and does not expect defaults from non-performance of these counterparties. The main banks where Hudson keeps net assets positions hold a credit rating of A – or higher. 35.7.1 Maximum credit risk The carrying amount of financial assets recorded in the financial statements, after deduction of any allowances for losses, represents Hudson’s maximum exposure to credit risk. 35.8 Hudson evaluates this risk as the ability to settle its financial liabilities on time and at a reasonable price. Beside its capability to generate cash through its operations, Hudson, jointly with Dufry, mitigates liquidity risk by keeping unused credit facilities with financial institutions (see note 29). 35.8.1 Remaining maturities for non-derivative financial assets and liabilities The following tables have been drawn up based on the undiscounted cash flows of financial assets and liabilities (based on the earliest date on which Hudson can receive or be required to pay). The following tables include principal and interest cash flows. AT DECEMBER 31, 2017 IN MILLIONS OF USD 1 – 6 MONTHS 6 – 12 MONTHS 1 – 2 YEARS MORE THAN 2 YEARS TOTAL Cash and cash equivalents 137.5 – – – 137.5 Trade receivables 4.6 – – – 4.6 Other accounts receivable 43.3 – – – 43.3 Other non-current assets 0.8 0.8 3.0 24.9 29.5 Total cash inflows 186.2 0.8 3.0 24.9 214.9 Trade payables 97.1 – – – 97.1 Financial debt, short-term 13.1 67.6 – – 80.7 Other liabilities 94.0 – – – 94.0 Financial debt, long-term 14.9 17.9 29.8 609.6 672.2 Other non-current liabilities – – – – – Total cash outflows 219.1 85.5 29.8 609.6 944.0 AT DECEMBER 31, 2016 IN MILLIONS OF USD 1 – 6 MONTHS 6 – 12 MONTHS 1 – 2 YEARS MORE THAN 2 YEARS TOTAL Cash and cash equivalents 187.8 – – – 187.8 Trade receivables 8.2 – – – 8.2 Other accounts receivable 26.2 – – – 26.2 Other non-current assets – – – 29.1 29.1 Total cash inflows 222.2 – – 29.1 251.3 Trade payables 91.3 – – – 91.3 Financial debt, short-term 1.5 – – – 1.5 Other liabilities 143.7 – – – 143.7 Financial debt, long-term 14.1 14.1 28.2 582.2 638.6 Other non-current liabilities – – – 1.1 1.1 Total cash outflows 250.6 14.1 28.2 583.3 876.2 |
36. EVENTS AFTER REPORTING DATE
36. EVENTS AFTER REPORTING DATE | 12 Months Ended |
Dec. 31, 2017 | |
Events After Reporting Date | |
EVENTS AFTER REPORTING DATE | Prior to the completion of the initial public offering, Dufry International AG Switzerland created Hudson Ltd. Bermuda a fully owned subsidiary to hold all the shares of Dufry America Holding Inc., the parent entity of the Hudson Group in the USA and Canada, as well as Nuance Group (Canada) Inc., the parent entity of World Duty Free Group (Vancouver) Inc.. On January 31, 2018 the initial public offering (IPO) took place in which Dufry International AG offered 42.6 % or 39,417,765 Class A common shares of Hudson Ltd. at a public offering price of USD 19.00 per share, adding up to total consideration received by Dufry International AG of USD 714.4 million after underwriting discounts and commissions, but before expenses. The shares began trading on the New York Stock Exchange on February 1, 2018, under the ticker symbol “HUD.” Dufry will use the proceeds mainly to reduce the bank debt. The related over-allotment option was not exercised. |
2. ACCOUNTING POLICIES (Policie
2. ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies Policies | |
Business combinations and goodwill | a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, Hudson selects whether it measures the non-controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition related transaction costs are expensed and included in other operational result. When Hudson acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IAS 39 Financial Instruments: Recognition and Measurement, is measured at fair value with the changes in contingent considerations recognized in the statement of comprehensive income. Hudson measures goodwill at the acquisition date as: – The fair value of the consideration transferred; – plus the recognized amount of any non-controlling interests in the acquiree; – plus if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; – less the net recognized amount of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognized immediately in the statement of comprehensive income. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to Hudson’s group of cash-generating units that are expected to benefit from the combination. Where goodwill forms part of a cash-generating unit and a operation within is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained, unless there are specific allocations. |
Turnover | b) Turnover Turnover is composed of net sales and advertising income. Sales are measured at the fair value of the consideration received, excluding sales taxes or duties. Retail sales are settled in cash or credit card, whereas advertising income is recognized when the services are rendered. |
Cost of sales | c) Cost of sales Cost of sales are recognized when the Group sells a product and comprise the purchase price and the cost incurred until the product arrives at the warehouse, i. e. import duties and transport as well as inventory valuation adjustments, inventory differences and supplier rebates or discounts. |
Foreign currency | d) Foreign currency Each subsidiary in Hudson uses its corresponding functional currency. Items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are recorded at the date of the transaction in the functional currency using the exchange rate of such date. Monetary assets and liabilities denominated in foreign currencies are re-measured to their fair value in the functional currency using the exchange rate at the reporting date and the difference is recorded as unrealized foreign exchange gains or losses. Exchange differences arising on the settlement or on the translation of derivative financial instruments are recognized through the statement of comprehensive income, except where the hedges on net investments allow the recognition through other comprehensive income, until the respective investments are disposed of. Any related deferred tax on unrealized FX is accounted accordingly. Non-monetary items are measured at historical cost in the respective functional currency. At the reporting date, the assets and liabilities of all subsidiaries reporting in foreign currency are translated into the reporting currency of Hudson (USD) using the exchange rate at the reporting date. The statements of comprehensive income of the subsidiaries are translated using the average exchange rates of the respective month in which the transactions occurred. The net translation differences are recognized in other comprehensive income. On disposal of a foreign entity or when control is lost, the deferred cumulative translation difference recognized within equity relating to that particular operation is recognized in the statement of comprehensive income as gain or loss on sale of subsidiaries. Intangible assets and fair value adjustments identified during a business combination (purchase price allocation) are treated as assets and liabilities in the functional currency of such operation. Principal foreign exchange rates applied for valuation and translation: AVERAGE RATE CLOSING RATE IN USD 2017 2016 2015 DEC 31, 2017 DEC 31, 2016 DEC 31, 2015 1 CAD 0.7714 0.7552 0.7832 0.7951 0.7446 0.7232 |
Equity instruments | e) Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. Repurchase of Hudson’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in the statement of comprehensive income on the purchase, sale, issue or cancellation of Hudson’s own equity instruments. |
Share capital | f) Share capital Ordinary shares are classified as equity. Costs directly attributable to the issuance of shares or options are shown in the statement of changes in equity as transaction costs for equity instruments, net of tax. For Hudson shares purchased by Hudson Ltd. or any subsidiary, the consideration paid, including any directly attributable expenses, net of income taxes, is deducted from equity until the shares are cancelled, assigned or sold. Where such ordinary shares are subsequently sold, any consideration received, net of any direct transaction expenses and income taxes, is included in equity. |
Leases | g) Leases Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the leases’ inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the Group will obtain ownership at the end of the lease term. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. |
Share-based payments | h) Share-based payments Equity settled share based payments to employees and other third parties providing services are measured at the fair value of the equity instruments at grant date. The fair value determined at grant date of the equity-settled share-based payments is expensed on a pro rata basis over the vesting period, based on the estimated number of equity instruments that will eventually vest. At the end of each reporting period, Hudson revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in the statement of comprehensive income such that the cumulative expense reflects the revised estimate. Where the terms of an equity settled award are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification, which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the holder of the option as measured at the date of modification. |
Taxation | i) Taxation Income tax expense represents the sum of the current income tax and deferred tax. Income tax positions not relating to items recognized in the statement of comprehensive income, are recognized in correlation to the underlying transaction either in other comprehensive income or equity. Current income tax Income tax receivables or payables are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted at the reporting date in the countries or states where Hudson operates and generates taxable income. Income tax relating to items recognized in other comprehensive income is recognized there as well. Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax basis of assets or liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences, except: – When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss – In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits or tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available, against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized, except: – When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss – In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date applicable for each respective company. |
Property, plant and equipment | j) Property, plant and equipment These are stated at cost less accumulated depreciation and any impairment in fair value. Depreciation is computed on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. The useful lives applied are as follows: – Real estate (buildings) 20 to 40 years – Leasehold improvements the shorter of the lease term or 10 years – Furniture and fixtures the shorter of the lease term or 5 years – Motor vehicles the shorter of the lease term or 5 years – Computer hardware the shorter of the lease term or 5 years |
Intangible assets | k) Intangible assets These assets mainly comprise of concession rights. Intangible assets acquired separately are capitalized at cost and those from business combinations are capitalized at fair value as at the date of acquisition. Following initial recognition, the cost model is applied to intangible assets. The useful lives of these intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life. Intangible assets with an indefinite useful life are reviewed annually to determine whether the indefinite life assessment continues to be supportable. If not, any changes are made on a prospective basis. |
Impairment of non-financial assets | l) Impairment of non-financial assets Intangible assets that are subject to depreciation and amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or cash generating unit exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows (cash generating units). |
Associates | m) Associates Associates are all entities over which Hudson has significant influence but not control, generally accompanying a shareholding of more than 20 % but less than 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost. The carrying amount is increased or decreased to recognize the investor’s share of the net earnings of the investee after the date of acquisition and decreased by dividends declared. Hudson’s investment in associates includes goodwill identified on acquisition. Hudson’s share of post-acquisition net earnings and its share of post-acquisition movements in other comprehensive income are recognized in the combined statement of comprehensive income with a corresponding adjustment to the carrying amount of the investment. When Hudson’s share of losses in an associate equals or exceeds its interest in the associate, Hudson does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income is reclassified to net earnings where appropriate. Hudson determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, Hudson calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount adjacent to share of result of associates in the statement of comprehensive income. Profits and losses resulting from upstream and downstream transactions between Hudson and its associate are recognized in the Group’s financial statements only to the extent of unrelated investor’s interests in the associates. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by Hudson. Dilution gains and losses arising in investments in associates are recognized in the statement of comprehensive income. |
Inventories | n) Inventories Inventories are valued at the lower of historical cost or net realizable value. The historical costs are determined using the weighted average method, Historical cost includes all expenses incurred in bringing the inventories to their present location and condition. This includes mainly import duties and transport cost. Purchase discounts and rebates are deducted in determining the cost of inventories. The net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. Inventory allowances are set up in the case of slow-moving and obsolete stock. Expired items are fully written off. |
Trade receivables | o) Trade receivables This account includes receivables related to the sale of merchandise. |
Cash and cash equivalents | p) Cash and cash equivalents Cash and cash equivalents consist of cash on hand or current bank accounts as well as short-term deposits at banks with initial maturity below 91 days. Credit card receivables with a maturity of up to 4 days are included as cash in transit. Short-term investments are included in this position if they are highly liquid, readily convertible into known amounts of cash and subject to insignificant risk of changes in value. |
Provisions | q) Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that Hudson will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate at the end of the reporting period of the consideration required to settle the present obligation, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that the reimbursement will be received and the amount of the receivable can be measured reliably. Contingent liabilities acquired in a business combination Contingent liabilities acquired in a business combination are initially measured at fair value at the acquisition date. At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be recognized in accordance with IAS 37 Provisions, contingent liabilities and contingent assets and the amount initially recognized less cumulative amortization recognized in accordance with IAS 18 Revenue. |
Financial instruments | r) Financial instruments Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets and financial liabilities at fair value through profit or loss (FVTPL), are deducted from or added to the fair value of the financial assets or financial liabilities on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the statement of comprehensive income. Trade and other accounts receivable Trade and other receivables (including credit cards receivables, other accounts receivable, cash and cash equivalents) are measured at amortized cost using the effective interest method, less any impairment. Impairment of financial assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the financial asset have been affected. Certain categories of financial assets, such as trade receivables, are assessed for impairment individually. Subsequent recoveries of amounts previously written off are credited against the allowance accounts for these categories. Changes in the carrying amount of the allowance account are recognized in the statement of comprehensive income in the lines selling expenses or other operational result. Derecognition of financial assets Hudson derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If Hudson neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred as set, Hudson recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If Hudson retains substantially all the risks and rewards of ownership of a transferred financial asset, Hudson continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. Financial liabilities at FVTPL These are stated at fair value, with any gains or losses arising on re-measurement recognized in the statement of comprehensive income. The net gain or loss recognized in the combined statement of comprehensive income incorporates any interest paid on the financial liability and is included in the financial result in the statement of comprehensive income. Fair value is determined in the manner described in note 34. Other financial liabilities Other financial liabilities (including borrowings) are subsequently measured at amortized cost using the effective interest method. Derecognition of financial liabilities Hudson derecognizes financial liabilities only when the obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid or payable is recognized in the combined statement of comprehensive income. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the combined statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. |
Derivative financial instruments | s) Derivative financial instruments Hudson may enter into a variety of derivative financial instruments to manage its exposure to interest rate or foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps and cross currency swaps. Further details of derivative financial instruments are disclosed in note 35. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in the statement of comprehensive income unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the statement of comprehensive income depends on the nature of the hedge relationship. Embedded derivatives Derivatives embedded in non-derivative host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and the host contracts are not measured at FVTPL. |
2. ACCOUNTING POLICIES (Tables)
2. ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies Tables | |
Principal foreign exchange rates | AVERAGE RATE CLOSING RATE IN USD 2017 2016 2015 DEC 31, 2017 DEC 31, 2016 DEC 31, 2015 1 CAD 0.7714 0.7552 0.7832 0.7951 0.7446 0.7232 |
5. SEGMENT INFORMATION (Tables)
5. SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information Tables | |
Net sales by country | Net Sales by Country IN MILLIONS OF USD 2017 2016 2015 US 1,420.9 1,359.1 1,164.2 Canada 339.9 291.0 205.4 Total 1,760.8 1,650.1 1,369.6 |
Non-current assets by country | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 US 558.8 568.2 Canada 416.8 410.4 Total 975.6 978.6 |
6. ACQUISITIONS OF BUSINESSES45
6. ACQUISITIONS OF BUSINESSES AND TRANSACTIONS WITH NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions Of Businesses And Transactions With Non-controlling Interests Tables | |
Fair value of the identifiable assets and liabilities through acquisition | FINAL FAIR VALUE AT AUGUST 7, 2015 IN MILLIONS OF IN EUR IN USD Trade receivables 37.4 41.0 Inventories 23.5 25.8 Other current assets 14.0 15.3 Property, plant and equipment 34.7 38.0 Concession rights 165.0 180.9 Other non-current assets 9.1 10.0 Deferred tax assets 3.2 3.5 Trade payables (45.5 ) (49.9 ) Financial debt (0.9 ) (1.0 ) Other liabilities (22.0 ) (24.2 ) Deferred tax liabilities (46.5 ) (50.9 ) Fair value of non-controlling interests (4.8 ) (5.2 ) Identifiable net assets 167.2 183.3 Hudson’s share in these net assets 167.2 183.3 Goodwill 179.7 197.0 Total purchase price allocated to US and Canada entities 346.9 380.3 |
7. TURNOVER (Tables)
7. TURNOVER (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Turnover Tables | |
Turnover | IN MILLIONS OF USD 2017 2016 2015 Net sales 1,760.8 1,650.1 1,369.6 Advertising income 41.7 37.1 33.4 Turnover 1,802.5 1,687.2 1,403.0 |
Net sales by product categories | IN MILLIONS OF USD 2017 2016 2015 Confectionery, Food and Catering 628.0 572.3 469.6 Perfumes and Cosmetics 258.4 226.3 174.6 Fashion, Leather and Baggage 220.1 183.3 146.2 Literature and Publications 175.6 192.5 187.2 Wine and Spirits 88.0 75.3 62.9 Tobacco goods 52.2 47.4 46.3 Watches, Jewelry and Accessories 115.5 86.2 76.9 Electronics 87.7 78.5 66.6 Other product categories 135.3 188.3 139.3 Total 1,760.8 1,650.1 1,369.6 |
Net sales by market sector | IN MILLIONS OF USD 2017 2016 2015 Duty-paid 1,334.4 1,284.0 1,075.2 Duty-free 426.4 366.1 294.4 Total 1,760.8 1,650.1 1,369.6 |
Net sales by channel | IN MILLIONS OF USD 2017 2016 2015 Airports 1,662.6 1,565.9 1,307.6 Downtown and hotel shops 43.1 29.5 13.1 Railway stations and other 55.1 54.7 48.9 Total 1,760.8 1,650.1 1,369.6 |
8. SELLING EXPENSES (Tables)
8. SELLING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selling Expenses Tables | |
Selling expenses | IN MILLIONS OF USD 2017 2016 2015 Concession fees and rents (note 33) (399.1 ) (375.3 ) (307.0 ) Credit card commissions (29.0 ) (27.7 ) (20.9 ) Advertising and commission expenses (0.9 ) (0.8 ) (0.9 ) Packaging materials (2.5 ) (2.3 ) (2.2 ) Other selling expenses (3.3 ) (3.4 ) (3.3 ) Selling expenses (434.8 ) (409.5 ) (334.3 ) Concession and rental income (note 33) 11.6 11.9 7.3 Commercial services and other selling income 2.0 1.9 1.3 Selling income 13.6 13.8 8.6 Total (421.2 ) (395.7 ) (325.7 ) |
9. PERSONNEL EXPENSES (Tables)
9. PERSONNEL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Personnel Expenses Tables | |
Personnel expenses | IN MILLIONS OF USD 2017 2016 2015 Salaries and wages (298.4 ) (270.3 ) (227.0 ) Social security expenses (43.0 ) (38.5 ) (29.8 ) Other personnel expenses (29.9 ) (28.6 ) (22.7 ) Total (371.3 ) (337.4 ) (279.5 ) Full time equivalents (FTE - unaudited) 8,894 8,485 8,124 |
10. GENERAL EXPENSES (Tables)
10. GENERAL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
General Expenses Tables | |
General expenses | IN MILLIONS OF USD 2017 2016 2015 Franchise fees and commercial services (63.2 ) (62.5 ) (51.7 ) Repairs, maintenance and utilities (17.1 ) (15.5 ) (14.4 ) Office and administration (16.2 ) (14.5 ) (11.4 ) Premises (14.9 ) (16.3 ) (13.3 ) Legal, consulting and audit fees (13.5 ) (11.8 ) (14.5 ) Travel, entertainment and representation (11.7 ) (11.6 ) (10.4 ) Taxes, other than income taxes (7.1 ) (8.4 ) (6.3 ) IT expenses (6.3 ) (4.6 ) (3.7 ) PR and advertising (3.2 ) (2.7 ) (2.1 ) Insurances (2.2 ) (2.2 ) (2.0 ) Bank expenses (1.5 ) (1.8 ) (1.1 ) Total (156.9 ) (151.9 ) (130.9 ) |
11. INVESTMENTS IN ASSOCIATES (
11. INVESTMENTS IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Associates Tables | |
Summarized statement of financial position | IN MILLIONS OF USD DEC 31, 2017 NUANCE GROUP (CHICAGO) LLC DEC 31, 2017 MIDWAY PARTNERSHIP LLC DEC 31, 2017 TOTAL DEC 31, 2016 NUANCE GROUP (CHICAGO) LLC Cash and cash equivalents 2.6 1.4 4.0 2.5 Other current assets 4.0 2.7 6.7 4.0 Non-current assets 3.0 1.0 4.0 3.2 Other current liabilities (3.9) (2.9) (6.8) (2.8) Net assets 5.7 2.2 7.9 6.9 Proportion of Hudson’s ownership 35.0% 50.0% 35.0% Hudson’s share of the equity 2.0 1.1 3.1 2.4 |
Summarized statement of comprehensive income | 2017 IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Turnover 18.7 15.1 – 33.8 Depreciation, amortization and impairment (0.1 ) – – (0.1 ) Net earnings for the year (1.0 ) 0.2 – (0.8 ) Total comprehensive income (1.0 ) 0.2 – (0.8 ) HUDSON'S SHARE 35.0% 50.0% Net earnings for the year (0.4 ) 0.1 – (0.3 ) Total comprehensive income (0.4 ) 0.1 – (0.3 ) 2016 IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Turnover 20.0 – – 20.0 Depreciation, amortization and impairment (0.1 ) – – (0.1 ) Net earnings for the year (2.1 ) – – (2.1 ) Total comprehensive income (2.1 ) – – (2.1 ) HUDSON'S SHARE 35.0% Net earnings for the year (0.7 ) – – (0.7 ) Total comprehensive income (0.7 ) – – (0.7 ) 2015 IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Turnover 23.9 – 4.4 28.3 Depreciation, amortization and impairment (0.2 ) – (0.1 ) (0.3 ) Other operational result – – 1.1 1.1 Net earnings for the year 3.5 – 1.4 4.9 Total comprehensive income 3.5 – 1.4 4.9 HUDSON'S SHARE 35.0% Net earnings for the year 1.2 – 0.5 1.7 Total comprehensive income 1.2 – 0.5 1.7 |
Reconciliation of the carrying amount of its investments | IN MILLIONS OF USD NUANCE GROUP (CHICAGO) LLC MIDWAY PARTNERSHIP LLC OTHER ASSOCIATES TOTAL Net earnings 1.2 – 0.5 1.7 Dividends received (0.7 ) – (0.5 ) (1.2 ) Disposals – – (30.0 ) (30.0 ) Carrying value at December 31, 2015 3.3 – – 3.3 Net earnings (0.7 ) – – (0.7 ) Dividends received (0.2 ) – – (0.2 ) Carrying value at December 31, 2016 2.4 – – 2.4 Contribution to new partnership – 1.0 – 1.0 Net earnings (0.4 ) 0.1 – (0.3 ) Carrying value at December 31, 2017 2.0 1.1 – 3.1 |
12. DEPRECIATION, AMORTIZATIO51
12. DEPRECIATION, AMORTIZATION AND IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Depreciation Amortization And Impairment Tables | |
Depreciation, amortization and impairment | IN MILLIONS OF USD 2017 2016 2015 Depreciation (64.5 ) (61.4 ) (49.7 ) Impairment (0.2 ) – (1.4 ) Subtotal (note 17 Property, Plant and Equipment) (64.7 ) (61.4 ) (51.1 ) Amortization (44.0 ) (42.3 ) (35.6 ) Subtotal (note 19 Intangible Assets) (44.0 ) (42.3 ) (35.6 ) Total (108.7 ) (103.7 ) (86.7 ) |
13. OTHER OPERATIONAL RESULT (T
13. OTHER OPERATIONAL RESULT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Operational Result Tables | |
Other operational results | IN MILLIONS OF USD 2017 2016 2015 Consulting fees, expenses related to projects and start-up expenses (0.2 ) (0.3 ) (0.5 ) Impairment of loans and other receivables (0.9 ) (1.4 ) (0.6 ) Closing or restructuring of operations (2.7 ) (8.3 ) (2.0 ) Losses on sale of non-current assets (3.3 ) (2.0 ) (0.4 ) Project-related costs (3.4 ) - - Other operating expenses (3.7 ) (2.3 ) 0.3 Other operational expenses (14.2 ) (14.3 ) (3.2 ) IN MILLIONS OF USD 2017 2016 2015 Insurance - compensation for losses 0.1 0.1 - Gain on sale of non-current assets - 0.1 0.5 Recovery of write offs / release of allowances / debt waiver 9.4 4.0 - Other operating income 1.0 0.8 1.0 Other operational income 10.5 5.0 1.5 IN MILLIONS OF USD 2017 2016 2015 Other operational expenses (14.2 ) (14.3 ) (3.2 ) Other operational income 10.5 5.0 1.5 Other operational result (3.7 ) (9.3 ) (1.7 ) |
14. INTEREST (Tables)
14. INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest Tables | |
Interest | IN MILLIONS OF USD 2017 2016 2015 EXPENSES ON FINANCIAL LIABILITIES Interest expense (29.4 ) (29.1 ) (24.7 ) Other financial expenses (0.5 ) (0.5 ) (0.6 ) Interest expense on financial liabilities (29.9 ) (29.6 ) (25.3 ) EXPENSES ON NON-FINANCIAL LIABILITIES Interest expense (0.3 ) (0.2 ) (0.1 ) Total interest expense (30.2 ) (29.8 ) (25.4 ) INCOME ON FINANCIAL ASSETS Interest income 1.8 2.0 1.6 Other financial income 0.1 0.1 – Interest income on financial assets 1.9 2.1 1.6 Total interest income 1.9 2.1 1.6 |
15. INCOME TAXES (Tables)
15. INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes Tables | |
Income tax | IN MILLIONS OF USD 2017 2016 2015 Current income taxes (8.5 ) (8.4 ) (5.4 ) of which corresponding to the current period (8.5 ) (7.3 ) (8.1 ) of which adjustments recognized in relation to prior years – (1.1 ) 2.7 Deferred income taxes (34.4 ) 42.7 1.6 of which related to the origination or reversal of temporary differences 5.8 10.3 1.6 of which adjustments recognized in relation to prior years – 32.4 – of which adjustments due to change in tax rates (40.2 ) – – Total (42.9 ) 34.3 (3.8 ) |
Reconciliation of income tax | IN MILLIONS OF USD 2017 2016 2015 Earnings before income tax (EBT) 32.3 15.5 22.1 Expected tax rate in % 35.2% 36.2% 36.9% Tax at the expected rate (11.3 ) (5.6 ) (8.2 ) EFFECT OF Different tax rates for subsidiaries in other jurisdictions 0.5 (0.2 ) (0.7 ) Effect of changes in tax rates on previously recognized deferred tax assets and liabilities (40.2 ) – (0.6 ) Non-deductible expenses 0.3 (0.5 ) 2.4 Net change of unrealized tax loss carry-forwards (2.0 ) (4.1 ) – Non recoverable withholding taxes – – (0.2 ) Minority interests 11.2 10.1 9.5 Adjustments recognized in relation to prior year – 31.3 2.7 Other items (1.4 ) 3.3 (8.7 ) Total (42.9 ) 34.3 (3.8 ) |
17. PROPERTY, PLANT AND EQUIP55
17. PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment Tables | |
Property, plant and equipment | 2017 IN MILLIONS OF USD BUILDINGS & LEASEHOLD IMPROVEMENTS FURNITURE FIXTURES COMPUTER HARDWARE VEHICLES WORK IN PROGRESS TOTAL AT COST Balance at January 1 226.6 182.2 28.1 3.8 20.0 460.7 Additions (note 18) 13.4 8.4 6.5 0.5 47.5 76.3 Disposals (20.8 ) (10.7 ) (0.5 ) (0.3 ) – (32.3 ) Reclassification within classes 29.3 12.7 5.6 0.1 (47.7 ) – Reclassification to intangible assets – – (1.0 ) – – (1.0 ) Currency translation adjustments 2.7 1.7 0.2 – 0.3 4.9 Balance at December 31 251.2 194.3 38.9 4.1 20.1 508.6 ACCUMULATED DEPRECIATION Balance at January 1 (98.6 ) (80.5 ) (18.0 ) (2.7 ) – (199.8 ) Additions (note 12) (31.8 ) (27.6 ) (4.7 ) (0.4 ) – (64.5 ) Disposals 18.2 9.6 0.4 0.3 – 28.5 Reclassification within classes (2.1 ) 2.6 (0.5 ) – – – Currency translation adjustments (1.6 ) (1.2 ) (0.2 ) (0.1 ) – (3.1 ) Balance at December 31 (115.9 ) (97.1 ) (23.0 ) (2.9 ) – (238.9 ) IMPAIRMENT Balance at January 1 (3.3 ) (1.3 ) – – – (4.6 ) Impairment (note 12) (0.2 ) – – – – (0.2 ) Currency translation adjustments – – – – – – Balance at December 31 (3.5 ) (1.3 ) – – – (4.8 ) CARRYING AMOUNT At December 31, 2017 131.8 95.9 15.9 1.2 20.1 264.9 2016 IN MILLIONS OF USD BUILDINGS & LEASEHOLD IMPROVEMENTS FURNITURE FIXTURES COMPUTER HARDWARE VEHICLES WORK IN PROGRESS TOTAL AT COST Balance at January 1 183.8 151.1 21.1 3.5 27.8 387.3 Additions (note 18) 13.5 6.9 2.5 0.3 69.2 92.4 Disposals (10.5 ) (8.6 ) – – (1.6 ) (20.7 ) Reclassification within classes 39.0 32.1 4.3 – (75.4 ) – Currency translation adjustments 0.8 0.7 0.2 – – 1.7 Balance at December 31 226.6 182.2 28.1 3.8 20.0 460.7 ACCUMULATED DEPRECIATION Balance at January 1 (75.1 ) (63.0 ) (15.2 ) (2.3 ) – (155.6 ) – Additions (note 12) (32.7 ) (25.4 ) (2.9 ) (0.4 ) – (61.4 ) Disposals 9.6 8.3 0.3 – – 18.2 Currency translation adjustments (0.4 ) (0.4 ) (0.2 ) – – (1.0 ) Balance at December 31 (98.6 ) (80.5 ) (18.0 ) (2.7 ) – (199.8 ) IMPAIRMENT Balance at January 1 (2.7 ) (1.7 ) – – (0.1 ) (4.5 ) Disposals – 0.4 – – 0.1 0.5 Currency translation adjustments (0.6 ) – – – – (0.6 ) Balance at December 31 (3.3 ) (1.3 ) – – – (4.6 ) CARRYING AMOUNT At December 31, 2016 124.7 100.4 10.1 1.1 20.0 256.3 |
18. CASH FLOW USED FOR PURCHA56
18. CASH FLOW USED FOR PURCHASE OF PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flow Used For Purchase Of Property Plant And Equipment Tables | |
Purchase of property, plant and equipment | IN MILLIONS OF USD 2017 2016 2015 Payables for capital expenditure at the beginning of the period (14.4 ) (10.7 ) (5.1 ) Additions of property, plant and equipment (note 17) (76.3 ) (92.4 ) (55.0 ) Payables for capital expenditure at the end of the period 11.1 14.4 10.7 Currency translation adjustments – 0.4 – Total Cash Flow (79.6 ) (88.3 ) (49.4 ) |
19. INTANGIBLE ASSETS (Tables)
19. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets Tables | |
Intangible assets | 2017 IN MILLIONS OF USD CONCESSION RIGHTS GOODWILL OTHER TOTAL AT COST Balance at January 1 514.1 317.9 36.7 868.7 Additions (note 20) 2.7 – 5.5 8.2 Reclassification from property, plant & equipment – – 1.0 1.0 Currency translation adjustments 18.0 13.3 (3.4 ) 27.9 Balance at December 31 534.8 331.2 39.8 905.8 ACCUMULATED AMORTIZATION Balance at January 1 (148.1 ) – (29.4 ) (177.5 ) Additions (note 12) (39.2 ) – (4.8 ) (44.0 ) Currency translation adjustments (1.6 ) – 3.1 1.5 Balance at December 31 (188.9 ) – (31.1 ) (220.0 ) CARRYING AMOUNT At December 31, 2017 345.9 331.2 8.7 685.8 2016 IN MILLIONS OF USD CONCESSION RIGHTS GOODWILL OTHER TOTAL AT COST Restated * Balance at January 1 511.9 312.3 27.4 851.6 Additions (note 20) – – 5.7 5.7 Currency translation adjustments 2.2 5.6 3.6 11.4 Balance at December 31 514.1 317.9 36.7 868.7 ACCUMULATED DEPRECIATION Balance at January 1 (110.7 ) – (22.4 ) (133.1 ) Additions (note 12) (38.4 ) – (3.9 ) (42.3 ) Currency translation adjustments 1.0 – (3.1 ) (2.1 ) Balance at December 31 (148.1 ) – (29.4 ) (177.5 ) CARRYING AMOUNT At December 31, 2016 366.0 317.9 7.3 691.2 |
Key assumptions used for determining the recoverable goodwill | POST TAX DISCOUNT RATES PRE TAX DISCOUNT RATES GROWTH RATES FOR NET SALES 2017 2016 2017 2016 2017 2016 7.27 6.33 8.79 7.94 4.3-5.6 4.6-8.4 |
Re-levered beta factor | 2017 2016 Beta factor 0.85 0.86 |
20. CASH FLOWS USED FOR PURCH58
20. CASH FLOWS USED FOR PURCHASE OF INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flows Used For Purchase Of Intangible Assets Tables | |
Purchase of intangible assets | IN MILLIONS OF USD 2017 2016 2015 Additions of intangible assets (note 19) (8.2 ) (5.7 ) (3.0 ) Total Cash Flow (8.2 ) (5.7 ) (3.0 ) |
21. DEFERRED TAX ASSETS AND L59
21. DEFERRED TAX ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Tax Assets And Liabilities Tables | |
Deferred tax assets and liabilities | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 DEFERRED TAX ASSETS Property, plant and equipment 4.0 47.4 Intangible assets 19.8 60.1 Provisions and other payables 11.7 30.8 Tax loss carry-forward 51.5 57.5 Other 15.5 12.0 Total 102.5 207.8 DEFERRED TAX LIABILITIES Property, plant and equipment (0.5 ) (50.4 ) Intangible assets (59.8 ) (68.3 ) Provisions and other payables – (0.8 ) Other (2.0 ) (7.1 ) Total (62.3 ) (126.6 ) Deferred tax assets, net 40.2 81.2 |
Deferred tax balances | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Deferred tax assets 90.3 153.0 Deferred tax liabilities (50.1 ) (71.8 ) Balance at December 31 40.2 81.2 |
Changes in deferred taxes | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Changes in deferred tax assets (62.7 ) 6.5 Changes in deferred tax liabilities 21.7 36.8 Currency translation adjustments 6.4 (0.1 ) Deferred tax income (expense) at December 31 (34.6 ) 43.2 THEREOF Recognized in the statement of comprehensive income (34.4 ) 42.7 Recognized in equity (0.2 ) 0.5 Tax loss carry-forwards |
Unrecognized tax loss carry-forwards | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 DEC 31, 2015 Expiring within 1 to 3 years 4.4 – – Expiring within 4 to 7 years 0.8 – – Expiring after 7 years 39.8 31.9 21.3 Total 1 45.0 31.9 21.3 1 This amount includes USD 21.3 million added through business combination in 2015 |
22. OTHER NON-CURRENT ASSETS (T
22. OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Non-current Assets Tables | |
Other non-current assets | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Guarantee deposits 2.5 1.8 Loans and contractual receivables 24.4 26.4 Other 0.1 6.7 Subtotal 27.0 34.9 Allowances (2.1 ) (3.8 ) Total 24.9 31.1 |
Changes in allowances for other non-current assets | IN MILLIONS OF USD 2017 2016 Balance at January 1 (3.8 ) (2.4 ) Creation (0.3 ) (1.4 ) Utilization 2.0 - Balance at December 31 (2.1 ) (3.8 ) |
23. INVENTORIES (Tables)
23. INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories Tables | |
Inventories | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Purchased inventories at cost 192.4 171.7 Inventory allowance (6.4 ) (10.3 ) Total 186.0 161.4 |
Increase/decrease in inventories | IN MILLIONS OF USD 2017 2016 2015 Balance at January 1 171.7 155.4 114.7 Balance at December 31 192.4 171.7 155.4 Gross change - at cost (20.7 ) (16.3 ) (40.7 ) Business combinations (note 6) – – 25.8 Utilization of allowances (in prior years: other cash flow effects) (8.9 ) 0.5 0.3 Currency translation adjustments 2.7 1.6 (2.5 ) Cash Flow – (increase) / decrease in inventories (26.9 ) (14.2 ) (17.1 ) |
24. TRADE RECEIVABLES (Tables)
24. TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade Receivables Tables | |
Trade receivables | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Trade receivables, gross 5.3 8.4 Allowances (0.7 ) (0.2 ) Trade receivables, net 4.6 8.2 |
Aging analysis of trade receivables | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Not due 0.7 4.1 OVERDUE Up to 30 days 0.6 0.1 31 to 60 days – 0.2 61 to 90 days 0.8 0.1 More than 90 days 3.2 3.9 Total overdue 4.6 4.3 Trade receivables, gross 5.3 8.4 |
Changes in allowances for trade receivables | IN MILLIONS OF USD 2017 2016 Balance at January 1 (0.2 ) (0.4 ) Creation (0.4 ) – Utilized – 0.2 Currency translation adjustments (0.1 ) – Balance at December 31 (0.7 ) (0.2 ) |
25. OTHER ACCOUNTS RECEIVABLE (
25. OTHER ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Accounts Receivable Tables | |
Other accounts receivable | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Receivables for refund from suppliers and related services 32.1 17.2 Guarantee deposits 0.2 0.2 Personnel receivables 1.3 1.3 Loans receivable 4.8 – Accounts receivables 38.4 18.7 Prepayments for concession fees and rents 8.0 14.0 Prepayments of sales and other taxes 1.5 4.3 Prepayments, other 1.1 2.7 Prepayments 10.6 21.0 Receivables from subtenants and business partners 1.2 4.5 Other 9.2 4.6 Other receivables 10.4 9.1 Total 59.4 48.8 Allowances – (1.5 ) Total 59.4 47.3 |
Changes in allowances for other accounts receivable | IN MILLIONS OF USD 2017 2016 Balance at January 1 (1.5 ) (2.1 ) Creation – (1.3 ) Utilized 1.5 1.9 Balance at December 31 – (1.5 ) |
27. BREAKDOWN OF TRANSACTIONS64
27. BREAKDOWN OF TRANSACTIONS WITH NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Breakdown Of Transactions With Non-controlling Interests Tables | |
Transactions with non-controlling interests | IN MILLIONS OF USD 2017 2016 HG Midway JV 2.2 – WDFG Partners Duty Free LLC 1.4 – HG Tucson Retailers JV 1.4 – Dufry MSP Retailers JV 1.1 0.2 Increase in share capital of other subsidiaries 4.9 5.3 Total 11.0 5.5 |
28. INFORMATION ON COMPANIES 65
28. INFORMATION ON COMPANIES WITH NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Information On Companies With Non-controlling Interests Tables | |
Summarized statement of comprehensive income | IN MILLIONS OF USD 2017 2016 2015 Hudson Las Vegas JV Turnover 67.1 64.6 64.8 Depreciation, amortization and impairment (1.3 ) (1.4 ) (0.8 ) Net earnings for the year 10.9 9.6 11.1 Non-controlling interest 27% 27% 27% Non-controlling interest share of the net earnings Hudson Las Vegas 2.9 2.6 3.0 Non-controlling interests in other subsidiaries 26.9 23.7 23.0 Total comprehensive income attributable to NCI 29.8 26.3 26.0 |
Summarized statement of financial position | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 DEC 31, 2015 Hudson Las Vegas JV Cash and cash equivalents 5.2 4.1 6.5 Other current assets 7.2 8.0 5.4 Non-current assets 9.4 8.9 9.0 Other current liabilities (3.5 ) (3.5 ) (4.5 ) Net assets 18.3 17.5 16.4 Non-controlling interest 27% 27% 27% Non-controlling interest share of the equity Hudson Las Vegas 4.9 4.7 4.4 Non-controlling interests in other subsidiaries 73.8 67.5 63.4 Total net assets attributable to NCI 78.7 72.2 67.8 |
29. FINANCIAL DEBT (Tables)
29. FINANCIAL DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Debt Tables | |
Financial debt | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Bank debt (overdrafts) – 1.5 Related party loans 80.7 – Financial debt, short-term 80.7 1.5 Related party loans 520.4 475.2 Financial debt, long-term 520.4 475.2 Total 601.1 476.7 OF WHICH ARE Bank debt – 1.5 Related party loans 601.1 475.2 |
Net debt | IN MILLIONS OF USD CASH AND CASH EQUIVALENTS FINANCIAL DEBT CURRENT FINANCIAL DEBT NON-CURRENT NET DEBT Balance at January 1, 2017 187.6 1.5 475.2 289.1 Cash flows from operating, financing and investing activities (51.1 ) – – 51.1 Repayments of financial debt – (21.5 ) (6.5 ) (28.0 ) Loan from common control transaction – 103.1 51.6 154.7 Cash flow (51.1 ) 81.6 45.1 177.8 Currency translation adjustments 0.9 (2.4 ) 0.1 (3.2 ) Non-cash movements 0.9 (2.4 ) 0.1 (3.2 ) Balance at December 31, 2017 137.4 80.7 520.4 463.7 IN MILLIONS OF USD CASH AND CASH EQUIVALENTS FINANCIAL DEBT CURRENT FINANCIAL DEBT NON-CURRENT NET DEBT Balance at January 1, 2016 160.4 0.9 483.1 323.6 Cash flows from operating, financing and investing activities 26.1 – – (26.1 ) Repayments of financial debt – – (7.3 ) (7.3 ) Loan from common control transaction – – – – Cash flow 26.1 – (7.3 ) (33.4 ) Currency translation adjustments 1.1 0.6 (0.6 ) (1.1 ) Non-cash movements 1.1 0.6 (0.6 ) (1.1 ) Balance at December 31, 2016 187.6 1.5 475.2 289.1 IN MILLIONS OF USD CASH AND CASH EQUIVALENTS FINANCIAL DEBT CURRENT FINANCIAL DEBT NON-CURRENT NET DEBT Balance at January 1, 2015 104.5 – 473.6 369.1 Cash flows from operating, financing and investing activities 54.5 – – (54.5 ) Business combinations (acquisitions) 4.3 1.0 – (3.3 ) Repayments of financial debt – 0.9 (10.9 ) (10.0 ) Loan from common control transaction – – – – Cash flow 58.8 1.9 (10.9 ) (67.8 ) Currency translation adjustments (2.9 ) (1.0 ) (0.1 ) 1.8 Non-cash movements (2.9 ) (1.0 ) (0.1 ) 1.8 Other non-cash transactions * – – 20.5 20.5 Balance at December 31, 2015 160.4 0.9 483.1 323.6 |
30. OTHER LIABILITIES (Tables)
30. OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Tables | |
Other liabilities | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Personnel payables 38.8 39.2 Other service related vendors 23.3 51.3 Accrued liabilities 16.5 11.8 Concession fee payables 12.8 18.9 Sales tax and other tax liabilities 11.9 12.5 Payables for capital expenditure 11.1 14.4 Accrued lease expenses 2.0 – Payables to Joint Venture partners 0.8 1.0 Other payables 14.9 19.9 Total 132.1 169.0 THEREOF Current liabilities 132.1 167.9 Non-current liabilities – 1.1 Total 132.1 169.0 |
32. RELATED PARTIES AND RELAT68
32. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties And Related Party Transactions Tables | |
Statement of comprehensive income | IN MILLIONS OF USD 2017 2016 2015 PURCHASE OF GOODS FROM International Operations & Services (USA) – 37.2 38.4 International Operation & Services (UY) SA 67.4 27.3 7.9 Hudson News Distributors 1 12.2 15.6 19.2 Hudson RPM 1 8.5 5.0 4.3 PURCHASE OF SERVICES FROM Dufry International AG, Franchise fees expense (50.6 ) (42.9 ) (35.9 ) World Duty Free Group SA, Franchise fees expense – (7.2 ) (6.5 ) Nuance Group AG, Franchise fees expense – – (1.8 ) Dufry Finance SNC, Interest expenses – (26.6 ) (24.6 ) Dufry International AG, Interest expenses (28.6 ) (2.5 ) (0.2 ) Dufry Financial Services B. V., Interest expenses (0.9 ) – – Dufry Management AG, IT expenses (1.3 ) – – World Duty Free Group SA, Service fee expenses (0.2 ) – – OTHER OPERATIONAL INCOME FROM Dufry International AG, Debt waiver 9.4 – – SALES OF SERVICES TO Nuance Group (Chicago) LLC 2 0.9 – – 1 Hudson News Distributors and Hudson RPM are controlled by James S. Cohen, a member of Hudson’s board of directors 2 Transactions with associated companies |
Balance sheet | IN MILLIONS OF USD 2017 2016 ACCOUNTS RECEIVABLES AT DECEMBER 31 Hudson RPM, other receivables 1 0.8 – Nuance Group (Chicago) LLC 2 0.1 – ACCOUNTS PAYABLES AT DECEMBER 31 Dufry International AG, Loans payable, long-term 468.7 475.2 Dufry International AG, Loans payable, short-term 13.1 – Dufry Financial Services B. V., Loans payable, long-term 51.7 – Dufry Financial Services B. V., Loans payable, short-term 67.6 – International Operations & Services (USA), trade payables – 14.8 International Operation & Services (UY) SA, trade payables 31.5 13.9 Hudson News Distributors, trade payables 1 0.1 0.9 Hudson RPM, trade payables 1 – 0.5 Dufry International AG, Fee payables 1.8 50.5 Dufry International AG, Other payables 7.2 7.6 Dufry Financial Services B. V., Other payables 0.2 – World Duty Free Group UK Ltd, Other payables 0.3 – Dufry Management AG, Fee payables 0.1 – Dufry Management AG, Other payables 0.3 – 1 Hudson News Distributors and Hudson RPM are controlled by James S. Cohen, a member of Hudson’s board of directors 2 Transactions with associated companies |
Compensation to key executives | IN MILLIONS OF USD 2017 2016 2015 Salaries 3.6 3.2 3.0 Variable payment 2.9 2.7 2.5 Non-monetary benefits 0.1 0.1 0.1 Share based payments 4.6 0.6 0.6 Total 11.2 6.6 6.2 |
33. COMMITMENTS AND CONTINGEN69
33. COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Tables | |
Lease and sublease income/expense | IN MILLIONS OF USD 2017 2016 2015 Minimum lease payments (262.4 ) (206.6 ) (170.0 ) Variable rent (136.7 ) (168.7 ) (137.0 ) Concession fees expense (note 8) (399.1 ) (375.3 ) (307.0 ) Sublease income (note 8) 11.6 11.9 7.3 |
Future minimum lease payments under non-cancellable operating leases | IN MILLIONS OF USD FUTURE EXPENSES Not later than one year 276.7 Later than one year and not later than five years 894.3 Later than five years 536.2 Total 1,707.2 |
35. FINANCIAL INSTRUMENTS (Tabl
35. FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments Tables | |
Gearing ratio | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Cash and cash equivalents (137.4) (187.6) Financial debt, short-term 80.7 1.5 Financial debt, long-term 520.4 475.2 Net debt 463.7 289.1 Equity attributable to equity holders of the parent 493.7 658.2 ADJUSTED FOR Effects from transactions with non-controlling interests 1 0.8 0.4 Total capital 2 494.5 658.6 Total net debt and capital 958.2 947.7 Gearing ratio 48.4% 30.5% 1 Represents the excess paid (received) above fair value of non-controlling interests on shares acquired (sold) as long as there is no change in control (IFRS 10.23) 2 Includes all capital and reserves that are managed as capital |
Financial instruments | AT DECEMBER 31, 2017 FINANCIAL ASSETS IN MILLIONS OF USD Loans and receivables at FVTPL 1 SUBTOTAL NON-FINANCIAL ASSETS 2 TOTAL Cash and cash equivalents 137.4 – 137.4 – 137.4 Trade receivables 4.6 – 4.6 – 4.6 Other accounts receivable 43.3 – 43.3 16.1 59.4 Other non-current assets 24.9 – 24.9 – 24.9 Total 210.2 – 210.2 FINANCIAL LIABILITIES IN MILLIONS OF USD at amortized cost at FVTPL 1 SUBTOTAL NON-FINANCIAL LIABILITIES 2 TOTAL Trade payables 97.1 – 97.1 – 97.1 Financial debt short-term 80.7 – 80.7 – 80.7 Other liabilities 94.0 – 94.0 38.1 132.1 Financial debt long-term 520.4 – 520.4 – 520.4 Other non-current liabilities – – – – – Total 792.2 – 792.2 AT DECEMBER 31, 2016 FINANCIAL ASSETS IN MILLIONS OF USD Loans and receivables at FVTPL 1 SUBTOTAL NON-FINANCIAL ASSETS 2 TOTAL Cash and cash equivalents 187.6 – 187.6 – 187.6 Trade receivables 8.2 – 8.2 – 8.2 Other accounts receivable 26.2 – 26.2 21.1 47.3 Other non-current assets 24.4 – 24.4 6.7 31.1 Total 246.4 – 246.4 FINANCIAL LIABILITIES IN MILLIONS OF USD at amortized cost at FVTPL 1 SUBTOTAL NON-FINANCIAL LIABILITIES 2 TOTAL Trade payables 91.3 – 91.3 – 91.3 Financial debt short-term 1.5 – 1.5 – 1.5 Other liabilities 143.7 – 143.7 24.2 167.9 Financial debt long-term 475.2 – 475.2 – 475.2 Other non-current liabilities 1.1 – 1.1 – 1.1 Total 712.8 – 712.8 1 Financial assets and financial liabilities at fair value through profit and loss 2 Non-financial assets or non-financial liabilities comprise prepaid expenses and deferred income, which will not generate a cash outflow or inflow as well as other tax positions |
Net income by IAS 39 valuation category | IN MILLIONS OF USD LOANS AND RECEIVABLES AT FVTPL TOTAL Interest income 1.8 – 1.8 Other finance income 0.1 – 0.1 From interest 1.9 – 1.9 Foreign exchange gain (loss) 1 1.1 – 1.1 Impairments / allowances 2 0.3 – 0.3 Total – from subsequent valuation 1.4 – 1.4 Net (expense) / income 3.3 – 3.3 IN MILLIONS OF USD AT AMORTIZED COST AT FVTPL TOTAL Interest expenses (29.4 ) – (29.4 ) Other finance expenses (0.5 ) – (0.5 ) From interest (29.9 ) – (29.9 ) Foreign exchange gain (loss) 1 0.2 – 0.2 Total – from subsequent valuation 0.2 – 0.2 Net (expense) / income (29.7 ) – (29.7 ) 1 This position includes the foreign exchange gain (loss) recognized on third party and intercompany financial assets and liabilities through combined statement of comprehensive income 2 This position includes the income from the released impairments and allowances and recoveries during the period less the increase of impairments and allowances IN MILLIONS OF USD LOANS AND RECEIVABLES AT FVTPL TOTAL Interest income 1.6 - 1.6 Other finance income 0.5 - 0.5 From interest 2.1 - 2.1 Foreign exchange gain (loss) 1 (0.3 ) - (0.3 ) Impairments/allowances 2 (1.5 ) - (1.5 ) Total – from subsequent valuation (1.8 ) - (1.8 ) Net (expense) / income 0.3 - 0.3 IN MILLIONS OF USD AT AMORTIZED COST AT FVTPL TOTAL Interest expenses (29.1 ) - (29.1 ) Other finance expenses (0.5 ) - (0.5 ) From interest (29.6 ) - (29.6 ) Foreign exchange gain (loss) 1 (0.1 ) - (0.1 ) Total – from subsequent valuation (0.1 ) - (0.1 ) Net expense (29.7 ) - (29.7 ) 1 This position includes the foreign exchange gain (loss) recognized on third party and intercompany financial assets and liabilities through combined statement of comprehensive income 2 This position includes the income from the released impairments and allowances and recoveries during the period less the increase of impairments and allowances |
Foreign currency exposure | IN MILLIONS OF USD USD 1 EURO CAD CHF TOTAL DECEMBER 31, 2017 Monetary assets 0.6 – 3.7 – 4.3 Monetary liabilities 6.3 0.1 – 0.2 6.6 Net currency exposure (5.7 ) (0.1 ) 3.7 (0.2 ) (2.3 ) DECEMBER 31, 2016 Monetary assets 0.1 10.3 – – 10.4 Monetary liabilities 18.6 0.2 – 0.9 19.7 Net currency exposure (18.5 ) 10.1 – (0.9 ) (9.3 ) 1 USD held by Canadian subsidiaries |
Foreign exchange rate sensitivity | IN MILLIONS OF USD DEC 31, 2017 DEC 31, 2016 Effect on the Statement of Comprehensive Income – profit (loss) of USD (0.3 ) (0.9 ) Effect on the Statement of Comprehensive Income – profit (loss) of CAD 0.2 – Effect on the Statement of Comprehensive Income – profit (loss) of EUR – 0.5 |
Allocation of financial assets and liabilities to interest classes | IN % IN MILLIONS OF USD AT DECEMBER 31, 2017 Average variable interest rate Average fixed interest rate Variable interest rate Fixed interest rate Total interest bearing Non-interest bearing TOTAL Cash and cash equivalents 0.1 % 6.6 – 6.6 130.8 137.4 Trade receivables – – – 4.6 4.6 Other accounts receivable – – – 43.3 43.3 Other non-current assets 7.3 % 19.2 – 19.2 5.7 24.9 Financial assets 25.8 – 25.8 184.4 210.2 Trade payables – – – 97.1 97.1 Financial debt, short-term – – – 80.7 80.7 Other liabilities – – – 94.0 94.0 Financial debt, long-term 5.7 % – 520.4 520.4 – 520.4 Other non-current liabilities – – – – – Financial liabilities – 520.4 520.4 271.8 792.2 Net financial liabilities (25.8 ) 520.4 494.6 87.4 582.0 IN % IN MILLIONS OF USD AT DECEMBER 31, 2016 Average variable interest rate Average fixed interest rate Variable interest rate Fixed interest rate Total interest bearing Non-interest bearing TOTAL Cash and cash equivalents 0.1 % 184.8 – 184.8 2.8 187.6 Trade receivables – – – 8.2 8.2 Other accounts receivable – – – 26.2 26.2 Other non-current assets 7.0 % 22.5 – 22.5 1.9 24.4 Financial assets 207.3 – 207.3 39.1 246.4 Trade payables – – – 91.3 91.3 Financial debt, short-term – – – 1.5 1.5 Other liabilities – – – 143.7 143.7 Financial debt, long-term 5.9 % – 475.2 475.2 – 475.2 Other non-current liabilities – – – 1.1 1.1 Financial liabilities – 475.2 475.2 237.6 712.8 Net financial liabilities (207.3 ) 475.2 267.9 198.5 466.4 |
Maturities for non-derivative financial assets and liabilities | AT DECEMBER 31, 2017 IN MILLIONS OF USD 1 – 6 MONTHS 6 – 12 MONTHS 1 – 2 YEARS MORE THAN 2 YEARS TOTAL Cash and cash equivalents 137.5 – – – 137.5 Trade receivables 4.6 – – – 4.6 Other accounts receivable 43.3 – – – 43.3 Other non-current assets 0.8 0.8 3.0 24.9 29.5 Total cash inflows 186.2 0.8 3.0 24.9 214.9 Trade payables 97.1 – – – 97.1 Financial debt, short-term 13.1 67.6 – – 80.7 Other liabilities 94.0 – – – 94.0 Financial debt, long-term 14.9 17.9 29.8 609.6 672.2 Other non-current liabilities – – – – – Total cash outflows 219.1 85.5 29.8 609.6 944.0 AT DECEMBER 31, 2016 IN MILLIONS OF USD 1 – 6 MONTHS 6 – 12 MONTHS 1 – 2 YEARS MORE THAN 2 YEARS TOTAL Cash and cash equivalents 187.8 – – – 187.8 Trade receivables 8.2 – – – 8.2 Other accounts receivable 26.2 – – – 26.2 Other non-current assets – – – 29.1 29.1 Total cash inflows 222.2 – – 29.1 251.3 Trade payables 91.3 – – – 91.3 Financial debt, short-term 1.5 – – – 1.5 Other liabilities 143.7 – – – 143.7 Financial debt, long-term 14.1 14.1 28.2 582.2 638.6 Other non-current liabilities – – – 1.1 1.1 Total cash outflows 250.6 14.1 28.2 583.3 876.2 |
1. CORPORATE INFORMATION (Detai
1. CORPORATE INFORMATION (Details Narrative) | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information Details Narrative | |
Date of incorporation | May 30, 2017 |
Country of incorporation | Hamilton, Bermuda |
2. ACCOUNTING POLICIES (Details
2. ACCOUNTING POLICIES (Details) - $ / $ | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies Details | |||
Average exchange rate | .7714 | .7552 | .7832 |
Closing exchange rate | .7951 | .7446 | .7232 |
2. ACCOUNTING POLICIES (Detai73
2. ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2017 | |
Real estate (buildings) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 20 to 40 years |
Leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | Shorter of the lease term or 10 years |
Furniture and fixtures | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | Shorter of the lease term or 5 years |
Motor vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | Shorter of the lease term or 5 years |
Computer hardware | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | Shorter of the lease term or 5 years |
5. SEGMENT INFORMATION (Details
5. SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Net sales | $ 1,760.8 | $ 1,650.1 | $ 1,369.6 |
United States | |||
Disclosure of operating segments [line items] | |||
Net sales | 1,420.9 | 1,359.1 | 1,164.2 |
Canada | |||
Disclosure of operating segments [line items] | |||
Net sales | $ 339.9 | $ 291 | $ 205.4 |
5. SEGMENT INFORMATION (Detai75
5. SEGMENT INFORMATION (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of operating segments [line items] | ||
Non-current assets | $ 975.6 | $ 978.6 |
United States | ||
Disclosure of operating segments [line items] | ||
Non-current assets | 558.8 | 568.2 |
Canada | ||
Disclosure of operating segments [line items] | ||
Non-current assets | $ 416.8 | $ 410.4 |
6. ACQUISITIONS OF BUSINESSES76
6. ACQUISITIONS OF BUSINESSES AND TRANSACTIONS WITH NON-CONTROLLING INTERESTS (Details) - Aug. 07, 2015 - World Duty Free € in Millions, $ in Millions | USD ($) | EUR (€) |
Disclosure of detailed information about business combination [line items] | ||
Trade receivables | $ | $ 41 | |
Inventories | $ | 25.8 | |
Other current assets | $ | 15.3 | |
Property, plant and equipment | $ | 38 | |
Concession rights | $ | 180.9 | |
Other non-current assets | $ | 10 | |
Deferred tax assets | $ | 3.5 | |
Trade payables | $ | (49.9) | |
Financial debt | $ | (1) | |
Other liabilities | $ | (24.2) | |
Deferred tax liabilities | $ | (50.9) | |
Fair value of non-controlling interests | $ | (5.2) | |
Identifiable net assets | $ | 183.3 | |
Hudson’s share in these net assets | $ | 183.3 | |
Goodwill | $ | 197 | |
Total purchase price allocated to US and Canada entities | $ | $ 380.3 | |
EUR | ||
Disclosure of detailed information about business combination [line items] | ||
Trade receivables | € | € 37.4 | |
Inventories | € | 23.5 | |
Other current assets | € | 14 | |
Property, plant and equipment | € | 34.7 | |
Concession rights | € | 165 | |
Other non-current assets | € | 9.1 | |
Deferred tax assets | € | 3.2 | |
Trade payables | € | (45.5) | |
Financial debt | € | (0.9) | |
Other liabilities | € | (22) | |
Deferred tax liabilities | € | (46.5) | |
Fair value of non-controlling interests | € | (4.8) | |
Identifiable net assets | € | 167.2 | |
Hudson’s share in these net assets | € | 167.2 | |
Goodwill | € | 179.7 | |
Total purchase price allocated to US and Canada entities | € | € 346.9 |
7. TURNOVER (Details)
7. TURNOVER (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Turnover Details | |||
Net sales | $ 1,760.8 | $ 1,650.1 | $ 1,369.6 |
Advertising income | 41.7 | 37.1 | 33.4 |
Turnover | $ 1,802.5 | $ 1,687.2 | $ 1,403 |
7. TURNOVER (Details 1)
7. TURNOVER (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | $ 1,760.8 | $ 1,650.1 | $ 1,369.6 |
Confectionery, Food and Catering | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 628 | 572.3 | 469.6 |
Perfumes and Cosmetics | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 258.4 | 226.3 | 174.6 |
Fashion, Leather and Baggage | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 220.1 | 183.3 | 146.2 |
Literature and Publications | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 175.6 | 192.5 | 187.2 |
Wine and Spirits | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 88 | 75.3 | 62.9 |
Tobacco Goods | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 52.2 | 47.4 | 46.3 |
Watches, Jewelry and Accessories | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 115.5 | 86.2 | 76.9 |
Electronics | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 87.7 | 78.5 | 66.6 |
Other Product Categories | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | $ 135.3 | $ 188.3 | $ 139.3 |
7. TURNOVER (Details 2)
7. TURNOVER (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | $ 1,760.8 | $ 1,650.1 | $ 1,369.6 |
Duty-paid | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 1,334.4 | 1,284 | 1,075.2 |
Duty-free | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | $ 426.4 | $ 366.1 | $ 294.4 |
7. TURNOVER (Details 3)
7. TURNOVER (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | $ 1,760.8 | $ 1,650.1 | $ 1,369.6 |
Airports | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 1,662.6 | 1,565.9 | 1,307.6 |
Downtown and hotel shops | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | 43.1 | 29.5 | 13.1 |
Railway stations and other | |||
DisclosureOfNetSalesLineItems [Line Items] | |||
Net sales | $ 55.1 | $ 54.7 | $ 48.9 |
8. SELLING EXPENSES (Details)
8. SELLING EXPENSES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | $ (421.2) | $ (395.7) | $ (325.7) |
Concession and rental income | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | 11.6 | 11.9 | 7.3 |
Commercial services and other selling income | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | 2 | 1.9 | 1.3 |
Selling income | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | 13.6 | 13.8 | 8.6 |
Concession fees and rents | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | (399.1) | (375.3) | (307) |
Credit card commissions | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | (29) | (27.7) | (20.9) |
Advertising and commission expenses | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | (0.9) | (0.8) | (0.9) |
Packaging materials | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | (2.5) | (2.3) | (2.2) |
Other selling expenses | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | (3.3) | (3.4) | (3.3) |
Selling expenses | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling (expense) income | $ (434.8) | $ (409.5) | $ (334.3) |
9. PERSONNEL EXPENSES (Details)
9. PERSONNEL EXPENSES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfPersonnelExpensesLineItems [Line Items] | |||
Personnel expenses | $ (371.3) | $ (337.4) | $ (279.5) |
Full time equivalents | 8,894 | 8,485 | 8,124 |
Salaries and wages | |||
DisclosureOfPersonnelExpensesLineItems [Line Items] | |||
Personnel expenses | $ (298.4) | $ (270.3) | $ (227) |
Social security expenses | |||
DisclosureOfPersonnelExpensesLineItems [Line Items] | |||
Personnel expenses | (43) | (38.5) | (29.8) |
Other personnel expenses | |||
DisclosureOfPersonnelExpensesLineItems [Line Items] | |||
Personnel expenses | $ (29.9) | $ (28.6) | $ (22.7) |
10. GENERAL EXPENSES (Details)
10. GENERAL EXPENSES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | $ (156.9) | $ (151.9) | $ (130.9) |
Franchise fees and commercial services | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (63.2) | (62.5) | (51.7) |
Repairs, maintenance and utilities | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (17.1) | (15.5) | (14.4) |
Office and administration | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (16.2) | (14.5) | (11.4) |
Premises | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (14.9) | (16.3) | (13.3) |
Legal, consulting and audit fees | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (13.5) | (11.8) | (14.5) |
Travel, car, entertainment and representation | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (11.7) | (11.6) | (10.4) |
Taxes, other than income taxes | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (7.1) | (8.4) | (6.3) |
EDP and IT expenses | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (6.3) | (4.6) | (3.7) |
PR and advertising | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (3.2) | (2.7) | (2.1) |
Insurances | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | (2.2) | (2.2) | (2) |
Bank expenses | |||
DisclosureOfGeneralExpensesLineItems [Line Items] | |||
General expenses | $ (1.5) | $ (1.8) | $ (1.1) |
11. INVESTMENTS IN ASSOCIATES84
11. INVESTMENTS IN ASSOCIATES (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of associates [line items] | ||||
Cash and cash equivalents | $ 137.4 | $ 187.6 | $ 160.4 | $ 104.5 |
Non-current assets | 1,069 | 1,134 | ||
Other current liabilities | 132.1 | 167.9 | ||
Net assets | 1,457.8 | 1,543 | ||
Hudson’s share of the equity | 572.4 | 730.4 | $ 687.9 | $ 343.2 |
NUANCE GROUP (CHICAGO) LLC | ||||
Disclosure of associates [line items] | ||||
Cash and cash equivalents | 2.6 | 2.5 | ||
Other current assets | 4 | 4 | ||
Non-current assets | 3 | 3.2 | ||
Other current liabilities | (3.9) | (2.8) | ||
Net assets | $ 5.7 | $ 6.9 | ||
Proportion of Hudson’s ownership | 35.00% | 35.00% | 35.00% | |
Hudson’s share of the equity | $ 2 | $ 2.4 | ||
MIDWAY PARTNERSHIP LLC | ||||
Disclosure of associates [line items] | ||||
Cash and cash equivalents | 1.4 | |||
Other current assets | 2.7 | |||
Non-current assets | 1 | |||
Other current liabilities | (2.9) | |||
Net assets | $ 2.2 | |||
Proportion of Hudson’s ownership | 50.00% | 0.00% | ||
Hudson’s share of the equity | $ 1.1 | |||
Associates | ||||
Disclosure of associates [line items] | ||||
Cash and cash equivalents | 4 | |||
Other current assets | 6.7 | |||
Non-current assets | 4 | |||
Other current liabilities | (6.8) | |||
Net assets | 7.9 | |||
Hudson’s share of the equity | $ 3.1 |
11. INVESTMENTS IN ASSOCIATES85
11. INVESTMENTS IN ASSOCIATES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Turnover | $ 1,802.5 | $ 1,687.2 | $ 1,403 |
Depreciation, amortization and impairment | 108.7 | 103.7 | 86.7 |
Net earnings for the year | (10.6) | 49.8 | 18.3 |
Total comprehensive income | 16.2 | 62.7 | (17.6) |
Net earnings for the year | (0.3) | (0.7) | 1.7 |
NUANCE GROUP (CHICAGO) LLC | |||
Disclosure of associates [line items] | |||
Turnover | 18.7 | 20 | 23.9 |
Depreciation, amortization and impairment | (0.1) | (0.1) | (0.2) |
Other operational result | 0 | ||
Net earnings for the year | (1) | (2.1) | 3.5 |
Total comprehensive income | $ (1) | $ (2.1) | $ 3.5 |
HUDSON'S SHARE | 35.00% | 35.00% | 35.00% |
Net earnings for the year | $ (0.4) | $ (0.7) | $ 1.2 |
Total comprehensive income | (0.4) | (0.7) | 1.2 |
MIDWAY PARTNERSHIP LLC | |||
Disclosure of associates [line items] | |||
Turnover | 15.1 | 0 | 0 |
Depreciation, amortization and impairment | 0 | 0 | 0 |
Other operational result | 0 | ||
Net earnings for the year | 0.2 | 0 | 0 |
Total comprehensive income | $ 0.2 | 0 | $ 0 |
HUDSON'S SHARE | 50.00% | 0.00% | |
Net earnings for the year | $ 0.1 | 0 | $ 0 |
Total comprehensive income | $ 0.1 | $ 0 | $ 0 |
11. INVESTMENTS IN ASSOCIATES86
11. INVESTMENTS IN ASSOCIATES (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Carrying value, beginning | $ 2.4 | ||
Net earnings | (0.3) | $ (0.7) | $ 1.7 |
Carrying value, ending | 3.1 | 2.4 | |
NUANCE GROUP (CHICAGO) LLC | |||
Disclosure of associates [line items] | |||
Carrying value, beginning | 2.4 | 3.3 | |
Contribution to new partnership | 0 | ||
Net earnings | (0.4) | (0.7) | 1.2 |
Dividends received | (0.2) | (0.7) | |
Disposals | 0 | ||
Carrying value, ending | 2 | 2.4 | 3.3 |
MIDWAY PARTNERSHIP LLC | |||
Disclosure of associates [line items] | |||
Carrying value, beginning | 0 | 0 | |
Contribution to new partnership | 1 | ||
Net earnings | 0.1 | 0 | 0 |
Dividends received | 0 | 0 | |
Disposals | 0 | ||
Carrying value, ending | 1.1 | 0 | 0 |
OTHER ASSOCIATES | |||
Disclosure of associates [line items] | |||
Carrying value, beginning | 0 | 0 | |
Contribution to new partnership | 0 | ||
Net earnings | 0 | 0 | 0.5 |
Dividends received | 0 | (0.5) | |
Disposals | (30) | ||
Carrying value, ending | 0 | 0 | 0 |
Associates | |||
Disclosure of associates [line items] | |||
Carrying value, beginning | 2.4 | 3.3 | |
Contribution to new partnership | 1 | ||
Dividends received | (0.2) | (1.2) | |
Disposals | (30) | ||
Carrying value, ending | $ 3.1 | $ 2.4 | $ 3.3 |
12. DEPRECIATION, AMORTIZATIO87
12. DEPRECIATION, AMORTIZATION AND IMPAIRMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation Amortization And Impairment Details | |||
Depreciation | $ (64.5) | $ (61.4) | $ (49.7) |
Impairment | (0.2) | 0 | (1.4) |
Subtotal (note 17 Property, Plant and Equipment) | (64.7) | (61.4) | (51.1) |
Amortization | (44) | (42.3) | (35.6) |
Subtotal (note 19 Intangible Assets) | (44) | (42.3) | (35.6) |
Total | $ (108.7) | $ (103.7) | $ (86.7) |
13. OTHER OPERATIONAL RESULT (D
13. OTHER OPERATIONAL RESULT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational expenses | $ (14.2) | $ (14.3) | $ (3.2) |
Other operational income | 10.5 | 5 | 1.5 |
Other operational result | (3.7) | (9.3) | (1.7) |
Insurance - compensation for losses | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational income | 0.1 | 0.1 | 0 |
Gain on sale of non-current assets | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational income | 0 | 0.1 | 0.5 |
Recovery of write offs/release of allowances/debt waiver | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational income | 9.4 | 4 | 0 |
Other income | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational income | 1 | 0.8 | 1 |
Consulting fees, expenses related to projects and start-up expenses | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational expenses | (0.2) | (0.3) | (0.5) |
Impairment of loans and other receivables | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational expenses | (0.9) | (1.4) | (0.6) |
Closing or restructuring of operations | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational expenses | (2.7) | (8.3) | (2) |
Losses on sale of non-current assets | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational expenses | (3.3) | (2) | (0.4) |
Acquisition-related costs | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational expenses | (3.4) | 0 | 0 |
Other operating expenses | |||
DisclosureOfOtherOperationalResultLineItems [Line Items] | |||
Other operational expenses | $ (3.7) | $ (2.3) | $ 0.3 |
14. INTEREST (Details)
14. INTEREST (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EXPENSES ON FINANCIAL LIABILITIES | |||
Interest expense | $ (29.4) | $ (29.1) | $ (24.7) |
Other financial expenses | (0.5) | (0.5) | (0.6) |
Interest expense on financial liabilities | (29.9) | (29.6) | (25.3) |
EXPENSES ON NON-FINANCIAL LIABILITIES | |||
Interest expense | (0.3) | (0.2) | (0.1) |
Total interest expense | (30.2) | (29.8) | (25.4) |
INCOME ON FINANCIAL ASSETS | |||
Interest income | 1.8 | 2 | 1.6 |
Other financial income | 0.1 | 0.1 | 0 |
Interest income on financial assets | 1.9 | 2.1 | 1.6 |
Total interest income | $ 1.9 | $ 2.1 | $ 1.6 |
15. INCOME TAXES (Details)
15. INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Details | |||
Current income taxes | $ (8.5) | $ (8.4) | $ (5.4) |
Current income taxes of which corresponding to the current period | (8.5) | (7.3) | (8.1) |
Current income taxes of which adjustments recognized in relation to prior years | (8.5) | (7.3) | (8.1) |
Deferred income taxes | (34.4) | 42.7 | 1.6 |
Deferred income taxes of which related to the origination or reversal of temporary differences | 5.8 | 10.3 | 1.6 |
Deferred income taxes of which adjustments recognized in relation to prior years | 0 | 32.4 | 0 |
Deferred income taxes of which adjustments due to change in tax rates | (40.2) | 0 | 0 |
Total | $ (42.9) | $ 34.3 | $ (3.8) |
15. INCOME TAXES (Details 1)
15. INCOME TAXES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Details 1 | |||
Earnings before income tax (EBT) | $ 32.3 | $ 15.5 | $ 22.1 |
Expected tax rate in % | 35.20% | 36.20% | 36.90% |
Tax at the expected rate | $ (11.3) | $ (5.6) | $ (8.2) |
EFFECT OF | |||
Different tax rates for subsidiaries in other jurisdictions | 0.5 | (0.2) | (0.7) |
Effect of changes in tax rates on previously recognized deferred tax assets and liabilities | (40.2) | 0 | (0.6) |
Non-deductible expenses | 0.3 | (0.5) | 2.4 |
Net change of unrealized tax loss carry-forwards | (2) | (4.1) | 0 |
Non recoverable withholding taxes | 0 | 0 | (0.2) |
Minority interests | 11.2 | 10.1 | 9.5 |
Adjustments recognized in relation to prior year | 0 | 31.3 | 2.7 |
Other items | (1.4) | 3.3 | (8.7) |
Total | $ (42.9) | $ 34.3 | $ (3.8) |
17. PROPERTY, PLANT AND EQUIP92
17. PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 460.7 | $ 387.3 | |
Additions | 76.3 | 92.4 | $ 55 |
Disposals | (32.3) | (20.7) | |
Reclassification within classes | 0 | 0 | |
Reclassification to intangible assets | (1) | ||
Currency translation adjustments | 4.9 | 1.7 | |
Ending balance | 508.6 | 460.7 | 387.3 |
Carrying amount | 264.9 | 256.3 | |
Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (199.8) | (155.6) | |
Additions | (64.5) | (61.4) | |
Disposals | 28.5 | 18.2 | |
Reclassification within classes | 0 | ||
Currency translation adjustments | (3.1) | (1) | |
Ending balance | (238.9) | (199.8) | (155.6) |
Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (4.6) | (4.5) | |
Disposals | 0.5 | ||
Impairment | (0.2) | ||
Currency translation adjustments | 0 | (0.6) | |
Ending balance | (4.8) | (4.6) | (4.5) |
Buildings and leasehold improvements | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 226.6 | 183.8 | |
Additions | 13.4 | 13.5 | |
Disposals | (20.8) | (10.5) | |
Reclassification within classes | 29.3 | 39 | |
Reclassification to intangible assets | 0 | ||
Currency translation adjustments | 2.7 | 0.8 | |
Ending balance | 251.2 | 226.6 | 183.8 |
Carrying amount | 131.8 | 124.7 | |
Buildings and leasehold improvements | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (98.6) | (75.1) | |
Additions | (31.8) | (32.7) | |
Disposals | 18.2 | 9.6 | |
Reclassification within classes | (2.1) | ||
Currency translation adjustments | (1.6) | (0.4) | |
Ending balance | (115.9) | (98.6) | (75.1) |
Buildings and leasehold improvements | Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (3.3) | (2.7) | |
Disposals | 0 | ||
Impairment | (0.2) | ||
Currency translation adjustments | 0 | (0.6) | |
Ending balance | (3.5) | (3.3) | (2.7) |
Furniture and fixtures | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 182.2 | 151.1 | |
Additions | 8.4 | 6.9 | |
Disposals | (10.7) | (8.6) | |
Reclassification within classes | 12.7 | 32.1 | |
Reclassification to intangible assets | 0 | ||
Currency translation adjustments | 1.7 | 0.7 | |
Ending balance | 194.3 | 182.2 | 151.1 |
Carrying amount | 95.9 | 100.4 | |
Furniture and fixtures | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (80.5) | (63) | |
Additions | (27.6) | (25.4) | |
Disposals | 9.6 | 8.3 | |
Reclassification within classes | 2.6 | ||
Currency translation adjustments | (1.2) | (0.4) | |
Ending balance | (97.1) | (80.5) | (63) |
Furniture and fixtures | Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1.3) | (1.7) | |
Disposals | 0.4 | ||
Impairment | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending balance | (1.3) | (1.3) | (1.7) |
Computer hardware | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 28.1 | 21.1 | |
Additions | 6.5 | 2.5 | |
Disposals | (0.5) | 0 | |
Reclassification within classes | 5.6 | 4.3 | |
Reclassification to intangible assets | (1) | ||
Currency translation adjustments | 0.2 | 0.2 | |
Ending balance | 38.9 | 28.1 | 21.1 |
Carrying amount | 15.9 | 10.1 | |
Computer hardware | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (18) | (15.2) | |
Additions | (4.7) | (2.9) | |
Disposals | 0.4 | 0.3 | |
Reclassification within classes | (0.5) | ||
Currency translation adjustments | (0.2) | (0.2) | |
Ending balance | (23) | (18) | (15.2) |
Computer hardware | Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Disposals | 0 | ||
Impairment | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3.8 | 3.5 | |
Additions | 0.5 | 0.3 | |
Disposals | (0.3) | 0 | |
Reclassification within classes | 0.1 | 0 | |
Reclassification to intangible assets | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending balance | 4.1 | 3.8 | 3.5 |
Carrying amount | 1.2 | 1.1 | |
Vehicles | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (2.7) | (2.3) | |
Additions | (0.4) | (0.4) | |
Disposals | 0.3 | 0 | |
Reclassification within classes | 0 | ||
Currency translation adjustments | (0.1) | 0 | |
Ending balance | (2.9) | (2.7) | (2.3) |
Vehicles | Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Disposals | 0 | ||
Impairment | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 20 | 27.8 | |
Additions | 47.5 | 69.2 | |
Disposals | 0 | (1.6) | |
Reclassification within classes | (47.7) | (75.4) | |
Reclassification to intangible assets | 0 | ||
Currency translation adjustments | 0.3 | 0 | |
Ending balance | 20.1 | 20 | 27.8 |
Carrying amount | 20.1 | 20 | |
Work in progress | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Reclassification within classes | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Work in progress | Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | (0.1) | |
Disposals | 0.1 | ||
Impairment | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending balance | $ 0 | $ 0 | $ (0.1) |
18. CASH FLOW USED FOR PURCHA93
18. CASH FLOW USED FOR PURCHASE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Used For Purchase Of Property Plant And Equipment Details | |||
Payables for capital expenditure at the beginning of the period | $ (14.4) | $ (10.7) | $ (5.1) |
Additions of property, plant and equipment (note 17) | (76.3) | (92.4) | (55) |
Payables for capital expenditure at the end of the period | 11.1 | 14.4 | 10.7 |
Currency translation adjustments | 0 | 0.4 | 0 |
Total Cash Flow | $ (79.6) | $ (88.3) | $ (49.4) |
19. INTANGIBLE ASSETS (Details)
19. INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | $ 868.7 | $ 851.6 | |
Additions | 8.2 | 5.7 | $ 3 |
Reclassification from property, plant & equipment | 1 | ||
Currency translation adjustments | 27.9 | 11.4 | |
Ending balance | 905.8 | 868.7 | 851.6 |
Carrying amount | 685.8 | 691.2 | |
Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (177.5) | (133.1) | |
Additions | (44) | (42.3) | |
Currency translation adjustments | 1.5 | (2.1) | |
Ending balance | (220) | (177.5) | (133.1) |
Concession rights | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 514.1 | 511.9 | |
Additions | 2.7 | 0 | |
Reclassification from property, plant & equipment | 0 | ||
Currency translation adjustments | 18 | 2.2 | |
Ending balance | 534.8 | 514.1 | 511.9 |
Carrying amount | 345.9 | 366 | |
Concession rights | Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (148.1) | (110.7) | |
Additions | (39.2) | (38.4) | |
Currency translation adjustments | (1.6) | 1 | |
Ending balance | (188.9) | (148.1) | (110.7) |
Goodwill | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 317.9 | 312.3 | |
Additions | 0 | 0 | |
Reclassification from property, plant & equipment | 0 | ||
Currency translation adjustments | 13.3 | 5.6 | |
Ending balance | 331.2 | 317.9 | 312.3 |
Carrying amount | 331.2 | 317.9 | |
Goodwill | Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 0 | 0 | |
Additions | 0 | 0 | |
Currency translation adjustments | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Other | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 36.7 | 27.4 | |
Additions | 5.5 | 5.7 | |
Reclassification from property, plant & equipment | 1 | ||
Currency translation adjustments | (3.4) | 3.6 | |
Ending balance | 39.8 | 36.7 | 27.4 |
Carrying amount | 8.7 | 7.3 | |
Other | Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (29.4) | (22.4) | |
Additions | (4.8) | (3.9) | |
Currency translation adjustments | 3.1 | (3.1) | |
Ending balance | $ (31.1) | $ (29.4) | $ (22.4) |
19. INTANGIBLE ASSETS (Details
19. INTANGIBLE ASSETS (Details 1) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | ||
Post tax discount rates | 7.27% | 6.33% |
Pre tax discount rates | 8.79% | 7.94% |
Minimum | ||
Disclosure of detailed information about intangible assets [line items] | ||
Growth rates for net sales | 4.30% | 4.60% |
Maximum | ||
Disclosure of detailed information about intangible assets [line items] | ||
Growth rates for net sales | 5.60% | 8.40% |
19. INTANGIBLE ASSETS (Detail96
19. INTANGIBLE ASSETS (Details 2) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets Details 2 | ||
Beta factor | 0.85 | 0.86 |
19. INTANGIBLE ASSETS (Detail97
19. INTANGIBLE ASSETS (Details Narrative) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets Details Narrative | ||
5 year average of prime 10-year USD bonds rates | 2.23% | 2.08% |
Growth rate to extrapolate the cash flow projections | 2.00% | 2.00% |
20. CASH FLOWS USED FOR PURCH98
20. CASH FLOWS USED FOR PURCHASE OF INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows Used For Purchase Of Intangible Assets Details | |||
Additions of intangible assets | $ (8.2) | $ (5.7) | $ (3) |
Total cash flow | $ (8.2) | $ (5.7) | $ (3) |
21. DEFERRED TAX ASSETS AND L99
21. DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax assets | $ 102.5 | $ 207.8 |
Deferred tax liabilities | (62.3) | (126.6) |
Deferred tax assets, net | 40.2 | 81.2 |
Property, plant and equipment | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax assets | 4 | 47.4 |
Deferred tax liabilities | (0.5) | (50.4) |
Intangible assets | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax assets | 19.8 | 60.1 |
Deferred tax liabilities | (59.8) | (68.3) |
Provisions and other payables | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax assets | 11.7 | 30.8 |
Deferred tax liabilities | 0 | (0.8) |
Tax loss carry-forward | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax assets | 51.5 | 57.5 |
Other | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax assets | 15.5 | 12 |
Deferred tax liabilities | $ (2) | $ (7.1) |
21. DEFERRED TAX ASSETS AND 100
21. DEFERRED TAX ASSETS AND LIABILITIES (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets And Liabilities Details 1 | ||
Deferred tax assets | $ 90.3 | $ 153 |
Deferred tax liabilities | (50.1) | (71.8) |
Deferred tax assets/liabilities, net | $ 40.2 | $ 81.2 |
21. DEFERRED TAX ASSETS AND 101
21. DEFERRED TAX ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets And Liabilities Details 2 | |||
Changes in deferred tax assets | $ (62.7) | $ 6.5 | |
Changes in deferred tax liabilities | 21.7 | 36.8 | |
Currency translation adjustments | 6.4 | (0.1) | |
Deferred tax income (expense) | (34.6) | 43.2 | |
Deferred tax income (expense) recognized in the statement of comprehensive income | (34.4) | 42.7 | $ 1.6 |
Deferred tax income (expense) recognized in equity | $ (0.2) | $ 0.5 |
21. DEFERRED TAX ASSETS AND 102
21. DEFERRED TAX ASSETS AND LIABILITIES (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Unrecognized tax loss carry-forwards | $ 45 | $ 31.9 | $ 21.3 |
Expiring within 1 to 3 years | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Unrecognized tax loss carry-forwards | 4.4 | 0 | 0 |
Expiring within 4 to 7 years | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Unrecognized tax loss carry-forwards | 0.8 | 0 | 0 |
Expiring after 7 years | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Unrecognized tax loss carry-forwards | $ 39.8 | $ 31.9 | $ 21.3 |
22. OTHER NON-CURRENT ASSETS (D
22. OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfOtherNoncurrentAssetsLineItems [Line Items] | ||
Other non-current assets, gross | $ 27 | $ 34.9 |
Allowances | (2.1) | (3.8) |
Other non-current assets, net | 24.9 | 31.1 |
Guarantee deposits | ||
DisclosureOfOtherNoncurrentAssetsLineItems [Line Items] | ||
Other non-current assets, gross | 2.5 | 1.8 |
Loans and contractual receivables | ||
DisclosureOfOtherNoncurrentAssetsLineItems [Line Items] | ||
Other non-current assets, gross | 24.4 | 26.4 |
Other | ||
DisclosureOfOtherNoncurrentAssetsLineItems [Line Items] | ||
Other non-current assets, gross | $ 0.1 | $ 6.7 |
22. OTHER NON-CURRENT ASSETS104
22. OTHER NON-CURRENT ASSETS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfOtherNoncurrentAssetsLineItems [Line Items] | |||
Allowances, beginning | $ (1.5) | ||
Allowances, ending | 0 | $ (1.5) | |
Other non-current assets | |||
DisclosureOfOtherNoncurrentAssetsLineItems [Line Items] | |||
Allowances, beginning | (3.8) | (2.4) | $ (1.3) |
Creation | (0.3) | (1.4) | (1.1) |
Utilized | 2 | 0 | 0 |
Allowances, ending | $ (2.1) | $ (3.8) | $ (2.4) |
23. INVENTORIES (Details)
23. INVENTORIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Inventories Details | |||||
Purchased inventories at cost | $ 192.4 | $ 171.7 | $ 155.4 | $ 114.7 | |
Inventory allowance | [1] | (6.4) | (10.3) | ||
Total | $ 186 | $ 161.4 | |||
[1] | The inventory impaired has a book value of USD 0.1 (2016: 0.0) million |
23. INVENTORIES (Details 1)
23. INVENTORIES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventories Details 1 | |||
Inventories, beginning | $ 171.7 | $ 155.4 | $ 114.7 |
Inventories, ending | 192.4 | 171.7 | 155.4 |
Gross change - at cost | (20.7) | (16.3) | (40.7) |
Business combinations | 0 | 0 | 25.8 |
Utilization of allowances | (8.9) | 0.5 | 0.3 |
Currency translation adjustments | 2.7 | 1.6 | (2.5) |
Cash flow – (increase)/decrease in inventories | $ (26.9) | $ (14.2) | $ (17.1) |
24. TRADE RECEIVABLES (Details)
24. TRADE RECEIVABLES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade Receivables Details | ||
Trade receivables, gross | $ 5.3 | $ 8.4 |
Allowances | (0.7) | (0.2) |
Trade receivables, net | $ 4.6 | $ 8.2 |
24. TRADE RECEIVABLES (Details
24. TRADE RECEIVABLES (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | $ 5.3 | $ 8.4 |
Not due | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | 0.7 | 4.1 |
Up to 30 days overdue | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | 0.6 | 0.1 |
31 to 60 days overdue | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | 0 | 0.2 |
61 to 90 days overdue | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | 0.8 | 0.1 |
More than 90 days overdue | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | 3.2 | 3.9 |
Overdue | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables | $ 4.6 | $ 4.3 |
24. TRADE RECEIVABLES (Detai109
24. TRADE RECEIVABLES (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Allowances, beginning | $ (1.5) | |
Allowances, ending | 0 | $ (1.5) |
Trade receivables | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Allowances, beginning | (0.2) | (0.4) |
Creation | (0.4) | 0 |
Utilized | 0 | 0.2 |
Currency translation adjustments | (0.1) | 0 |
Allowances, ending | $ (0.7) | $ (0.2) |
25. OTHER ACCOUNTS RECEIVABL110
25. OTHER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | $ 59.4 | $ 48.8 |
Allowances | 0 | (1.5) |
Other accounts receivable, net | 59.4 | 47.3 |
Receivables for refund from suppliers | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 32.1 | 17.2 |
Guarantee deposits | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 0.2 | 0.2 |
Personnel receivables | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 1.3 | 1.3 |
Loans receivable | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 4.8 | 0 |
Accounts receivables | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 38.4 | 18.7 |
Prepayments for concession fees and rents | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 8 | 14 |
Prepayments of sales and other taxes | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 1.5 | 4.3 |
Prepayments, other | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 1.1 | 2.7 |
Prepayments | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 10.6 | 21 |
Receivables from subtenants and business partners | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 1.2 | 4.5 |
Other | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | 9.2 | 4.6 |
Other receivables | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Other accounts receivable, gross | $ 10.4 | $ 9.1 |
25. OTHER ACCOUNTS RECEIVABL111
25. OTHER ACCOUNTS RECEIVABLE (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Allowances, beginning | $ (1.5) | |
Allowances, ending | 0 | $ (1.5) |
Other accounts receivable | ||
DisclosureOfOtherAccountsReceivableLineItems [Line Items] | ||
Allowances, beginning | (1.5) | (2.1) |
Creation | 0 | (1.3) |
Utilized | 1.5 | 1.9 |
Allowances, ending | $ 0 | $ (1.5) |
27. BREAKDOWN OF TRANSACTION112
27. BREAKDOWN OF TRANSACTIONS WITH NON-CONTROLLING INTERESTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SummaryOfBreakdownOfTransactionsLineItems [Line Items] | |||
Total | $ 29.8 | $ 26.3 | $ 26 |
HG Miday JV | |||
SummaryOfBreakdownOfTransactionsLineItems [Line Items] | |||
Total | 2.2 | 0 | |
WDFG Partners Duty Free LLC | |||
SummaryOfBreakdownOfTransactionsLineItems [Line Items] | |||
Total | 1.4 | 0 | |
HG Tucson Retailers JV | |||
SummaryOfBreakdownOfTransactionsLineItems [Line Items] | |||
Total | 1.4 | 0 | |
Dufry MSP Retailers JV | |||
SummaryOfBreakdownOfTransactionsLineItems [Line Items] | |||
Total | 1.1 | 0.2 | |
Other subsidiaries | |||
SummaryOfBreakdownOfTransactionsLineItems [Line Items] | |||
Total | $ 4.9 | $ 5.3 |
28. INFORMATION ON COMPANIES113
28. INFORMATION ON COMPANIES WITH NON-CONTROLLING INTERESTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfInformationOnCompaniesWithNoncontrollingInterestsLineItems [Line Items] | |||
Turnover | $ 1,802.5 | $ 1,687.2 | $ 1,403 |
Depreciation, amortization and impairment | 108.7 | 103.7 | 86.7 |
Total comprehensive income attributable to NCI | 29.8 | 26.3 | 26 |
Hudson Las Vegas JV | |||
DisclosureOfInformationOnCompaniesWithNoncontrollingInterestsLineItems [Line Items] | |||
Turnover | 67.1 | 64.6 | 64.8 |
Depreciation, amortization and impairment | (1.3) | (1.4) | (0.8) |
Net earnings for the year | $ 10.9 | $ 9.6 | $ 11.1 |
Non-controlling interest | 27.00% | 27.00% | 27.00% |
Non-controlling interest share of the net earnings Hudson Las Vegas | $ 2.9 | $ 2.6 | $ 3 |
Non-controlling interests in other subsidiaries | 26.9 | 23.7 | 23 |
Total comprehensive income attributable to NCI | $ 29.8 | $ 26.3 | $ 26 |
28. INFORMATION ON COMPANIES114
28. INFORMATION ON COMPANIES WITH NON-CONTROLLING INTERESTS (Details 1) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
DisclosureOfInformationOnCompaniesWithNoncontrollingInterestsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 137.4 | $ 187.6 | $ 160.4 | $ 104.5 |
Non-current assets | 1,069 | 1,134 | ||
Other current liabilities | 132.1 | 167.9 | ||
Non-controlling interest share of the equity Hudson Las Vegas | 78.7 | 72.2 | ||
Total net assets attributable to NCI | 1,457.8 | 1,543 | ||
Hudson Las Vegas JV | ||||
DisclosureOfInformationOnCompaniesWithNoncontrollingInterestsLineItems [Line Items] | ||||
Cash and cash equivalents | 5.2 | 4.1 | 6.5 | |
Other current assets | 7.2 | 8 | 5.4 | |
Non-current assets | 9.4 | 8.9 | 9 | |
Other current liabilities | (3.5) | (3.5) | (4.5) | |
Net assets | $ 18.3 | $ 17.5 | $ 16.4 | |
Non-controlling interest | 27.00% | 27.00% | 27.00% | |
Non-controlling interest share of the equity Hudson Las Vegas | $ 4.9 | $ 4.7 | $ 4.4 | |
Non-controlling interests in other subsidiaries | 73.8 | 67.5 | 63.4 | |
Total net assets attributable to NCI | $ 78.7 | $ 72.2 | $ 67.8 |
29. FINANCIAL DEBT (Details)
29. FINANCIAL DEBT (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | ||
Financial debt, short-term | $ 80.7 | $ 1.5 |
Financial debt, long-term | 520.4 | 475.2 |
Total | 601.1 | 476.7 |
Bank debt | ||
Disclosure of financial liabilities [line items] | ||
Financial debt, short-term | 0 | 1.5 |
Total | 0 | 1.5 |
Third party loans | ||
Disclosure of financial liabilities [line items] | ||
Financial debt, short-term | 80.7 | |
Related party loans | ||
Disclosure of financial liabilities [line items] | ||
Financial debt, long-term | 520.4 | 475.2 |
Total | $ 601.1 | $ 475.2 |
29. FINANCIAL DEBT (Details 1)
29. FINANCIAL DEBT (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial liabilities [line items] | |||
Beginning balance | $ 289.1 | $ 323.6 | $ 369.1 |
Cash flows from operating, financing and investing activities | 51.1 | (26.1) | (54.5) |
Business combinations (acquisitions) | (3.3) | ||
Repayments of financial debt | (28) | (7.3) | (10) |
Loan from common control transaction | 154.7 | 0 | 0 |
Cash flow | 177.8 | (33.4) | (67.8) |
Currency translation adjustments | (3.2) | (1.1) | 1.8 |
Non-cash movements | (3.2) | (1.1) | 1.8 |
Other non-cash transactions | 20.5 | ||
Ending balance | 463.7 | 289.1 | 323.6 |
Cash and cash equivalents | |||
Disclosure of financial liabilities [line items] | |||
Beginning balance | 187.6 | 160.4 | 104.5 |
Cash flows from operating, financing and investing activities | (51.1) | 26.1 | 54.5 |
Business combinations (acquisitions) | 4.3 | ||
Repayments of financial debt | 0 | 0 | 0 |
Loan from common control transaction | 0 | 0 | 0 |
Cash flow | (51.1) | 26.1 | 58.8 |
Currency translation adjustments | 0.9 | 1.1 | (2.9) |
Non-cash movements | 0.9 | 1.1 | (2.9) |
Other non-cash transactions | 0 | ||
Ending balance | 137.4 | 187.6 | 160.4 |
Financial debt, current | |||
Disclosure of financial liabilities [line items] | |||
Beginning balance | 1.5 | 0.9 | 0 |
Cash flows from operating, financing and investing activities | 0 | 0 | 0 |
Business combinations (acquisitions) | 1 | ||
Repayments of financial debt | (21.5) | 0 | 0.9 |
Loan from common control transaction | 103.1 | 0 | 0 |
Cash flow | 81.6 | 0 | 1.9 |
Currency translation adjustments | (2.4) | 0.6 | (1) |
Non-cash movements | (2.4) | 0.6 | (1) |
Other non-cash transactions | 0 | ||
Ending balance | 80.7 | 1.5 | 0.9 |
Financial debt, non-current | |||
Disclosure of financial liabilities [line items] | |||
Beginning balance | 475.2 | 483.1 | 473.6 |
Cash flows from operating, financing and investing activities | 0 | 0 | 0 |
Business combinations (acquisitions) | 0 | ||
Repayments of financial debt | (6.5) | (7.3) | (10.9) |
Loan from common control transaction | 51.6 | 0 | 0 |
Cash flow | 45.1 | (7.3) | (10.9) |
Currency translation adjustments | 0.1 | (0.6) | (0.1) |
Non-cash movements | 0.1 | (0.6) | (0.1) |
Other non-cash transactions | 20.5 | ||
Ending balance | $ 520.4 | $ 475.2 | $ 483.1 |
30. OTHER LIABILITIES (Details)
30. OTHER LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other current liabilities | $ 132.1 | $ 167.9 |
Other non-current liabilities | 0 | 1.1 |
Other liabilities | 132.1 | 169 |
Personnel payables | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 38.8 | 39.2 |
Other service related vendors | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 23.3 | 51.3 |
Accrued Liabilities | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 16.5 | 11.8 |
Concession fee payables | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 12.8 | 18.9 |
Sales tax and other tax liabilities | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 11.9 | 12.5 |
Payables for capital expenditure | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 11.1 | 14.4 |
Accrual for lease expenses | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 2 | 0 |
Payables to local business partners | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | 0.8 | 1 |
Other payables | ||
DisclosureOfOtherLiabilitiesLineItems [Line Items] | ||
Other liabilities | $ 14.9 | $ 19.9 |
32. RELATED PARTIES AND RELA118
32. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
International Operations & Services (USA) | ||
Disclosure of transactions between related parties [line items] | ||
Purchase of goods | $ 0 | $ 37.2 |
International Operation & Services (UY) SA | ||
Disclosure of transactions between related parties [line items] | ||
Purchase of goods | 67.4 | 27.3 |
Hudson News Distributors | ||
Disclosure of transactions between related parties [line items] | ||
Purchase of goods | 12.2 | 15.6 |
Hudson RPM | ||
Disclosure of transactions between related parties [line items] | ||
Purchase of goods | 8.5 | 5 |
Dufry International AG, Franchise fees expense | ||
Disclosure of transactions between related parties [line items] | ||
Other services received | (50.6) | (42.9) |
World Duty Free Group SA, Franchise fees expense | ||
Disclosure of transactions between related parties [line items] | ||
Other services received | 0 | (7.2) |
Dufry Finance SNC, Interest expenses | ||
Disclosure of transactions between related parties [line items] | ||
Other services received | 0 | (26.6) |
Dufry International AG, Interest expenses | ||
Disclosure of transactions between related parties [line items] | ||
Other services received | (28.6) | (2.5) |
Dufry Financial Services B.V., Interest expenses | ||
Disclosure of transactions between related parties [line items] | ||
Other services received | (0.9) | 0 |
Dufry Management AG, IT expenses | ||
Disclosure of transactions between related parties [line items] | ||
Other services received | (1.3) | 0 |
World Duty Free Group SA, Service fee expenses | ||
Disclosure of transactions between related parties [line items] | ||
Other services received | (0.2) | 0 |
Dufry International AG, Debt waiver | ||
Disclosure of transactions between related parties [line items] | ||
Other operational income | 9.4 | 0 |
Nuance Group (Chicago) LLC?2 | ||
Disclosure of transactions between related parties [line items] | ||
Other operational income | $ 0 | |
Sales of services | $ 0.9 |
32. RELATED PARTIES AND RELA119
32. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Hudson RPM, other receivables?1 | ||
Disclosure of transactions between related parties [line items] | ||
Accounts receivable, related parties | $ 0.8 | $ 0 |
Nuance Group (Chicago) LLC?2 | ||
Disclosure of transactions between related parties [line items] | ||
Accounts receivable, related parties | 0.1 | 0 |
Dufry International AG, Loans payable, long-term | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 468.7 | 475.2 |
Dufry International AG, Loans payable, short-term | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 13.1 | 0 |
Dufry Financial Services B.V., Loans payable, long-term | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 51.7 | 0 |
Dufry Financial Services B.V., Loans payable, short-term | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 67.6 | 0 |
International Operations & Services (USA), trade payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 0 | 14.8 |
International Operation & Services (UY) SA, trade payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 31.5 | 13.9 |
Hudson News Distributors, trade payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | (0.1) | 0.9 |
Hudson RPM, trade payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 0 | 0.5 |
Dufry International AG, Fee payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 1.8 | 50.5 |
World Duty Free Group SA, Fee payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 0 | 0 |
Dufry International AG, Other payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 7.2 | 7.6 |
Dufry Finance SNC, Other payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 0 | 0 |
Dufry Financial Services B.V., Other payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 0.2 | 0 |
World Duty Free Group UK Ltd, Other payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 0.3 | 0 |
Dufry Management AG, Fee payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | 0.1 | 0 |
Dufry Management AG, Other payables | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable, related parties | $ 0.3 | $ 0 |
32. RELATED PARTIES AND RELA120
32. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Parties And Related Party Transactions Details 2 | |||
Salaries | $ 3.6 | $ 3.2 | $ 3 |
Variable payment | 2.9 | 2.7 | 2.5 |
Non-monetary benefits | 0.1 | 0.1 | 0.1 |
Share based payments | 4.6 | 0.6 | 0.6 |
Total | $ 11.2 | $ 6.6 | $ 6.2 |
33. COMMITMENTS AND CONTINGE121
33. COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Details | |||
Minimum lease payments | $ (262.4) | $ (206.6) | $ (170) |
Variable rent | (136.7) | (168.7) | (137) |
Concession fees expense (note 8) | (399.1) | (375.3) | (307) |
Sublease income (note 8) | $ 11.6 | $ 11.9 | $ 7.3 |
33. COMMITMENTS AND CONTINGE122
33. COMMITMENTS AND CONTINGENCIES (Details 1) $ in Millions | Dec. 31, 2017USD ($) |
DisclosureOfCommitmentsAndContingenciesLineItems [Line Items] | |
Future minimum lease payments under non-cancellable operating leases | $ 1,707.2 |
Not later than one year | |
DisclosureOfCommitmentsAndContingenciesLineItems [Line Items] | |
Future minimum lease payments under non-cancellable operating leases | 276.7 |
Later than one year and not later than five years | |
DisclosureOfCommitmentsAndContingenciesLineItems [Line Items] | |
Future minimum lease payments under non-cancellable operating leases | 894.3 |
Later than five years | |
DisclosureOfCommitmentsAndContingenciesLineItems [Line Items] | |
Future minimum lease payments under non-cancellable operating leases | $ 536.2 |
35. FINANCIAL INSTRUMENTS (Deta
35. FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Financial Instruments Details | |||||
Cash and cash equivalents | $ (137.4) | $ (187.6) | $ (160.4) | $ (104.5) | |
Financial debt, short-term | 80.7 | 1.5 | |||
Financial debt, long-term | 520.4 | 475.2 | |||
Net debt | 463.7 | 289.1 | |||
Equity attributable to equity holders of the parent | 493.7 | 658.2 | |||
Effects from transactions with non-controlling interests | 0.8 | 0.4 | |||
Total capital | [1] | 494.5 | 658.6 | ||
Total net debt and capital | $ 958.2 | $ 947.7 | |||
Gearing ratio | 48.40% | 30.50% | |||
[1] | Includes all capital and reserves that are managed as capital |
35. FINANCIAL INSTRUMENTS (D124
35. FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL ASSETS | |||
Loans and receivables | $ 210.2 | $ 246.4 | |
Financial assets at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 210.2 | 246.4 | |
Total | 210.2 | 246.4 | |
FINANCIAL LIABILITIES | |||
Financial liabilities at amortized cost | 792.2 | 712.8 | |
Financial liabilities at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 792.2 | 712.8 | |
Total | 792.2 | 712.8 | |
Trade payables | |||
FINANCIAL LIABILITIES | |||
Financial liabilities at amortized cost | 97.1 | 91.3 | |
Financial liabilities at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 97.1 | 91.3 | |
Non-financial liabilities | [2] | 0 | 0 |
Total | 97.1 | 91.3 | |
Financial debt short-term | |||
FINANCIAL LIABILITIES | |||
Financial liabilities at amortized cost | 80.7 | 1.5 | |
Financial liabilities at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 80.7 | 1.5 | |
Non-financial liabilities | [2] | 0 | 0 |
Total | 80.7 | 1.5 | |
Other liabilities | |||
FINANCIAL LIABILITIES | |||
Financial liabilities at amortized cost | 94 | 143.7 | |
Financial liabilities at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 94 | 143.7 | |
Non-financial liabilities | [2] | 38.1 | 24.2 |
Total | 132.1 | 167.9 | |
Financial debt long-term | |||
FINANCIAL LIABILITIES | |||
Financial liabilities at amortized cost | 520.4 | 475.2 | |
Financial liabilities at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 520.4 | 475.2 | |
Non-financial liabilities | [2] | 0 | 0 |
Total | 520.4 | 475.2 | |
Other non-current liabilities | |||
FINANCIAL LIABILITIES | |||
Financial liabilities at amortized cost | 0 | 1.1 | |
Financial liabilities at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 0 | 1.1 | |
Non-financial liabilities | [2] | 0 | 0 |
Total | 0 | 1.1 | |
Cash and cash equivalents | |||
FINANCIAL ASSETS | |||
Loans and receivables | 137.4 | 187.6 | |
Financial assets at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 137.4 | 187.6 | |
Non-financial assets | [2] | 0 | 0 |
Total | 137.4 | 187.6 | |
Trade receivables | |||
FINANCIAL ASSETS | |||
Loans and receivables | 4.6 | 8.2 | |
Financial assets at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 4.6 | 8.2 | |
Non-financial assets | [2] | 0 | 0 |
Total | 4.6 | 8.2 | |
Other accounts receivable | |||
FINANCIAL ASSETS | |||
Loans and receivables | 43.3 | 26.2 | |
Financial assets at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 43.3 | 26.2 | |
Non-financial assets | [2] | 16.1 | 21.1 |
Total | 59.4 | 47.3 | |
Other non-current assets | |||
FINANCIAL ASSETS | |||
Loans and receivables | 24.9 | 24.4 | |
Financial assets at fair value through profit/loss | [1] | 0 | 0 |
Subtotal | 24.9 | 24.4 | |
Non-financial assets | [2] | 0 | 6.7 |
Total | $ 24.9 | $ 31.1 | |
[1] | Financial assets and financial liabilities at fair value through profit and loss | ||
[2] | Non-financial assets or non-financial liabilities comprise prepaid expenses and deferred income, which will not generate a cash outflow or inflow as well as other tax positions |
35. FINANCIAL INSTRUMENTS (D125
35. FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
FINANCIAL ASSETS | ||||
Interest income | $ 1.8 | $ 1.6 | ||
Other finance income | 0.1 | 0.5 | ||
From interest | 1.9 | 2.1 | $ 1.6 | |
Fair values gain (loss) | 0 | |||
Foreign exchange gain (loss) | [1] | 1.1 | (0.3) | |
Impairments/allowances | [2] | 0.3 | (1.5) | |
Total – from subsequent valuation | 1.4 | (1.8) | ||
Net (expense)/income | 3.3 | 0.3 | ||
FINANCIAL LIABILITIES | ||||
Interest expenses | (29.4) | (29.1) | ||
Other finance expenses | (0.5) | (0.5) | ||
From interest | (29.9) | (29.6) | ||
Foreign exchange gain (loss) | [1] | 0.2 | (0.1) | |
Total – from subsequent valuation | 0.2 | (0.1) | ||
Net (expense)/income | (29.7) | (29.7) | ||
Financial liabilities at amortized cost | ||||
FINANCIAL LIABILITIES | ||||
Interest expenses | (29.4) | (29.1) | ||
Other finance expenses | (0.5) | (0.5) | ||
From interest | (29.9) | (29.6) | ||
Fair values gain (loss) | 0 | |||
Foreign exchange gain (loss) | [1] | 0.2 | (0.1) | |
Impairments/allowances | 0 | |||
Total – from subsequent valuation | 0.2 | (0.1) | ||
Net (expense)/income | (29.7) | (29.7) | ||
Financial liabilities at fvtpl | ||||
FINANCIAL LIABILITIES | ||||
Interest expenses | 0 | 0 | ||
Other finance expenses | 0 | 0 | ||
From interest | 0 | 0 | ||
Fair values gain (loss) | 0 | |||
Foreign exchange gain (loss) | [1] | 0 | 0 | |
Impairments/allowances | 0 | |||
Total – from subsequent valuation | 0 | 0 | ||
Net (expense)/income | 0 | 0 | ||
Loans and receivables | ||||
FINANCIAL ASSETS | ||||
Interest income | 1.8 | 1.6 | ||
Other finance income | 0.1 | 0.5 | ||
From interest | 1.9 | 2.1 | ||
Fair values gain (loss) | ||||
Foreign exchange gain (loss) | [1] | 1.1 | (0.3) | |
Impairments/allowances | [2] | 0.3 | (1.5) | |
Total – from subsequent valuation | 1.4 | (1.8) | ||
Net (expense)/income | 3.3 | 0.3 | ||
Financial assets at fvtpl | ||||
FINANCIAL ASSETS | ||||
Interest income | 0 | 0 | ||
Other finance income | 0 | 0 | ||
From interest | 0 | 0 | ||
Fair values gain (loss) | 0 | |||
Foreign exchange gain (loss) | [1] | 0 | 0 | |
Impairments/allowances | [2] | 0 | 0 | |
Total – from subsequent valuation | 0 | 0 | ||
Net (expense)/income | $ 0 | $ 0 | ||
[1] | This position includes the foreign exchange gain (loss) recognized on third party and intercompany financial assets and liabilities through consolidated income statement | |||
[2] | This position includes the income from the released impairments and allowances and recoveries during the period less the increase of impairments and allowances |
35. FINANCIAL INSTRUMENTS (D126
35. FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | |||
Monetary assets | $ 4.3 | $ 10.4 | |
Monetary liabilities | 6.6 | 19.7 | |
Net currency exposure | (2.3) | (9.3) | |
USD | |||
Disclosure of detailed information about financial instruments [line items] | |||
Monetary assets | [1] | 0.6 | 0.1 |
Monetary liabilities | [1] | 6.3 | 18.6 |
Net currency exposure | [1] | (5.7) | (18.5) |
EUR | |||
Disclosure of detailed information about financial instruments [line items] | |||
Monetary assets | 0 | 10.3 | |
Monetary liabilities | 0.1 | 0.2 | |
Net currency exposure | (0.1) | 10.1 | |
CAD | |||
Disclosure of detailed information about financial instruments [line items] | |||
Monetary assets | 3.7 | 0 | |
Monetary liabilities | 0 | 0 | |
Net currency exposure | 3.7 | 0 | |
CHF | |||
Disclosure of detailed information about financial instruments [line items] | |||
Monetary assets | 0 | 0 | |
Monetary liabilities | 0.2 | 0.9 | |
Net currency exposure | $ (0.2) | $ (0.9) | |
[1] | USD held by Canadian subsidiaries |
35. FINANCIAL INSTRUMENTS (D127
35. FINANCIAL INSTRUMENTS (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [line items] | |||
Effect on the Income Statement - profit (loss) | $ 0.5 | $ 0 | $ (0.2) |
USD | |||
Disclosure of detailed information about financial instruments [line items] | |||
Effect on the Income Statement - profit (loss) | (0.3) | (0.9) | |
CAD | |||
Disclosure of detailed information about financial instruments [line items] | |||
Effect on the Income Statement - profit (loss) | 0.2 | 0 | |
EUR | |||
Disclosure of detailed information about financial instruments [line items] | |||
Effect on the Income Statement - profit (loss) | $ 0 | $ 0.5 |
35. FINANCIAL INSTRUMENTS (D128
35. FINANCIAL INSTRUMENTS (Details 5) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | $ 210.2 | $ 246.4 |
Financial liabilities | 792.2 | 712.8 |
Net financial liabilities | 582 | 466.4 |
Trade payables | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 97.1 | 91.3 |
Financial debt short-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 80.7 | 1.5 |
Other liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | $ 94 | $ 143.7 |
Financial debt long-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Average fixed interest rate | 5.70% | 5.90% |
Financial liabilities | $ 520.4 | $ 475.2 |
Other non-current liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 1.1 |
Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 25.8 | 207.3 |
Financial liabilities | 0 | 0 |
Net financial liabilities | (25.8) | (207.3) |
Variable interest rate | Trade payables | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Variable interest rate | Financial debt short-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Variable interest rate | Other liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Variable interest rate | Financial debt long-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Variable interest rate | Other non-current liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Fixed interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Financial liabilities | 520.4 | 475.2 |
Net financial liabilities | 520.4 | 475.2 |
Fixed interest rate | Trade payables | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Fixed interest rate | Financial debt short-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Fixed interest rate | Other liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Fixed interest rate | Financial debt long-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 520.4 | 475.2 |
Fixed interest rate | Other non-current liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Total interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 25.8 | 207.3 |
Financial liabilities | 520.4 | 475.2 |
Net financial liabilities | 494.6 | 267.9 |
Total interest bearing | Trade payables | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Total interest bearing | Financial debt short-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Total interest bearing | Other liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Total interest bearing | Financial debt long-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 520.4 | 475.2 |
Total interest bearing | Other non-current liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Non-interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 184.4 | 39.1 |
Financial liabilities | 271.8 | 237.6 |
Net financial liabilities | 87.4 | 198.5 |
Non-interest bearing | Trade payables | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 97.1 | 91.3 |
Non-interest bearing | Financial debt short-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 80.7 | 1.5 |
Non-interest bearing | Other liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 94 | 143.7 |
Non-interest bearing | Financial debt long-term | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 0 | 0 |
Non-interest bearing | Other non-current liabilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | $ 0 | $ 1.1 |
Cash and cash equivalents | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Average variable interest rate | 0.10% | 0.10% |
Financial assets | $ 137.4 | $ 187.6 |
Cash and cash equivalents | Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 6.6 | 184.8 |
Cash and cash equivalents | Fixed interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Cash and cash equivalents | Total interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 6.6 | 184.8 |
Cash and cash equivalents | Non-interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 130.8 | 2.8 |
Trade receivables | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 4.6 | 8.2 |
Trade receivables | Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Trade receivables | Fixed interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Trade receivables | Total interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Trade receivables | Non-interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 4.6 | 8.2 |
Other accounts receivable | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 43.3 | 26.2 |
Other accounts receivable | Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Other accounts receivable | Fixed interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Other accounts receivable | Total interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Other accounts receivable | Non-interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | $ 43.3 | $ 26.2 |
Other non-current assets | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Average variable interest rate | 7.30% | 0.70% |
Financial assets | $ 24.9 | $ 24.4 |
Other non-current assets | Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 19.2 | 22.5 |
Other non-current assets | Fixed interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 0 | 0 |
Other non-current assets | Total interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 19.2 | 22.5 |
Other non-current assets | Non-interest bearing | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | $ 5.7 | $ 1.9 |
35. FINANCIAL INSTRUMENTS (D129
35. FINANCIAL INSTRUMENTS (Details 6) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | $ 214.9 | $ 251.3 |
Total cash outflows | 944 | 876.2 |
Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 97.1 | 91.3 |
Financial debt short-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 80.7 | 1.5 |
Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 94 | 143.7 |
Financial debt long-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 672.2 | 638.6 |
Other non-current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 1.1 |
1-6 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 186.2 | 222.2 |
Total cash outflows | 219 | 250.6 |
1-6 Months | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 97.1 | 91.3 |
1-6 Months | Financial debt short-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 13 | 1.5 |
1-6 Months | Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 94 | 143.7 |
1-6 Months | Financial debt long-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 14.9 | 14.1 |
1-6 Months | Other non-current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
6-12 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0.8 | 0 |
Total cash outflows | 85.5 | 14.1 |
6-12 Months | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
6-12 Months | Financial debt short-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 67.6 | 0 |
6-12 Months | Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
6-12 Months | Financial debt long-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 17.9 | 14.1 |
6-12 Months | Other non-current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
1-2 Years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 3 | 0 |
Total cash outflows | 29.8 | 28.2 |
1-2 Years | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
1-2 Years | Financial debt short-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
1-2 Years | Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
1-2 Years | Financial debt long-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 29.8 | 28.2 |
1-2 Years | Other non-current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
More than 2 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 24.9 | 29.1 |
Total cash outflows | 609.6 | 583.3 |
More than 2 years | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
More than 2 years | Financial debt short-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
More than 2 years | Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 0 |
More than 2 years | Financial debt long-term | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 609.6 | 582.2 |
More than 2 years | Other non-current liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash outflows | 0 | 1.1 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 137.5 | 187.8 |
Cash and cash equivalents | 1-6 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 137.5 | 187.8 |
Cash and cash equivalents | 6-12 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Cash and cash equivalents | 1-2 Years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Cash and cash equivalents | More than 2 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Trade receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 4.6 | 8.2 |
Trade receivables | 1-6 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 4.6 | 8.2 |
Trade receivables | 6-12 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Trade receivables | 1-2 Years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Trade receivables | More than 2 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Other accounts receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 43.3 | 26.2 |
Other accounts receivable | 1-6 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 43.3 | 26.2 |
Other accounts receivable | 6-12 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Other accounts receivable | 1-2 Years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Other accounts receivable | More than 2 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0 | 0 |
Other non-current assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 29.5 | 29.1 |
Other non-current assets | 1-6 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0.8 | 0 |
Other non-current assets | 6-12 Months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 0.8 | 0 |
Other non-current assets | 1-2 Years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | 3 | 0 |
Other non-current assets | More than 2 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total cash inflows | $ 24.9 | $ 29.1 |