Notes to the Financial Statements
The financial statements of Chocoladefabriken Lindt & Sprüngli AG, with registered office in Kilchberg, were prepared in accordance with the Swiss accounting legislation of the Swiss Code of Obligations (CO).
Chocoladefabriken Lindt & Sprüngli AG is presenting consolidated financial statements according to an internationally accepted reporting standard. Therefore, these financial statements and notes do not include additional disclosures, cash flow statement, and management report, according to Art. 961d, paragraph 1 CO.
2. ACCOUNTING POLICIES
Non-current assets are valued at historical cost less impairment. Intangible assets mainly consist of the intellectual property rights of Russell Stover Chocolates, LLC, acquired in 2014.
Treasury shares are recognized at acquisition cost and are presented as a deduction from shareholder’s equity. Upon sale of treasury shares, the realized gain or loss is recognized through the income statement as income or expense from financial assets.
Financial liabilities are recognized at nominal value. Agios and disagios as well as bond issuance costs are recognized in the income statement.
Dividends and other income from subsidiaries
Dividend income resulting from financial investments is recorded upon approval of the dividend distribution.
“Other income from subsidiaries” mainly consist of license fees, which are recognized in the period they fall due.
Foreign currency translation
3. Liabilities arising from guarantees and pledges in favor of THIrd parties
Contingent liabilities as at December 31, 2016, amounted to CHF 287.2 million (CHF 271.5 million in 2015). This figure comprises guarantees given to counterparties providing credit lines for borrowings to subsidiaries.
The companies, Chocoladefabriken Lindt & Sprüngli AG, Chocoladefabriken Lindt & Sprüngli (Schweiz) AG, Lindt & Sprüngli Financière AG, Lindt & Sprüngli (International) AG, and Indestro AG together form a Swiss-VAT group. Accord- ing to Art. 15, paragraph 1, item c of the Swiss Value Added Tax Law and Art. 22, paragraphs 1 and 2 of the Swiss Value Added Tax Ordinance, all members participating in VAT-group taxation are jointly liable for all taxes owed by the VAT group (including interest), which arose during their period of membership.
The investments in subsidiaries are listed here.
In September 2014 Chocoladefabriken Lindt & Sprüngli AG placed bonds of CHF 1 billion in order to finance the acquisition of Russell Stover Chocolates, LLC. The bonds consist of the following three tranches:
6. Acquisition and sale of registered shares and participation certificates
1 The Swiss federal tax administration (FTA) has not yet approved the capital transaction costs of TCHF 12,586 as reserves from capital contribution. This practice may be changed in the future.
8. Mandatory disclosure of interest positions pursuant to Art. 663c CO
As of December 31, 2016, Chocoladefabriken Lindt & Sprüngli AG disclosed the following shareholders known to the Company (in accordance with Art. 663c CO and the articles of association), which own voting shares of more than 4%: “Fonds für Pensionsergänzungen of Chocoladefabriken Lindt & Sprüngli AG”, “Finanzierungsstiftung für die Vorsorgeeinrichtungen der Chocoladefabriken Lindt & Sprüngli AG”, “Lindt Cocoa Foundation” and “Lindt Chocolate Competence Foundation”. As a group they held 20.23% of the voting rights of the Company (20.21% in 2015).
The participation of the Board of Directors, Group Management, and Extended Group Management as at December 31, 2016, according to Art. 663c CO is as follows:
1 Mr. T. Linemayr left the Lindt & Sprüngli Group in 2016, therefore no participation is reported for 2016.
All other disclosures relating to the remuneration of the Board of Directors, Group Management, and Extended Group Management are provided in the Compensation Report.
9. Number of Employees
Chocoladefabriken Lindt & Sprüngli AG has no employees.