Chapters
Annual Report 2018

22. Non-Controlling Interest

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

Significant Accounting Estimates and Judgments

Consolidation of the Synoptik Group

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

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

in thousands of EUR

2018

2017

At 1 January

81,480

59,667

Result for the year

21,018

21,038

Dividends paid

- 16,021

- 11,452

Acquisition of subsidiary

-

14,678

Acquisition of non-controlling interest

2,704

109

Remeasurement of post-employment benefit obligation

758

- 17

Cash flow hedge reserve

59

297

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

- 262

-

Currency translation differences

275

- 2,840

At 31 December

90,011

81,480

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

The increase in non-controlling interests in 2017 relates mainly to the acquisition of Visilab.

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

in thousands of EUR

31 December 2018

31 December 2017

Summarized Balance Sheet:

Non-current assets

97,734

97,971

Current assets

111,064

98,271

Equity

142,946

127,146

Non-current liabilities

4,828

5,493

Current liabilities

61,024

63,603

The accumulated non-controlling interest for the Synoptik Group amounts to €52,475 (2017: €46,675).

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

in thousands of EUR

31 December 2018

31 December 2017

Summarized Balance Sheet:

Non-current assets

120,332

125,170

Current assets

24,922

27,440

Equity

66,736

73,195

Non-current liabilities

44,325

47,234

Current liabilities

34,193

32,181

The accumulated non-controlling interest for Visilab amounts to €14,157 (2017: €15,936).

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

in thousands of EUR

31 December 2018

31 December 2017

Summarized Balance Sheet:

Non-current assets

65,067

56,859

Current assets

51,814

45,719

Equity

45,784

41,930

Non-current liabilities

39,752

33,784

Current liabilities

31,345

26,864

The accumulated non-controlling interest for Mexico amounts to €13,891 (2017: €12,726).