XXIV. Equity

Movements in equity items during the year are detailed in the statement of changes in shareholders’ equity.

 

Share capital

 

At 31 December 2015 the share capital of Autogrill S.p.A., fully subscribed and paid in, amounts to € 68,688k and consists of 254,400,000 ordinary shares.

On 6 June 2013, the General Meeting of shareholders of Autogrill S.p.A. approved a change to Art. 5 (“Share capital”) of the company’s by-laws which eliminates the par value of shares.

At 31 December 2015 Schematrentaquattro S.p.A., wholly owned by Edizione S.r.l., held 50.1% of the share capital.

 

Legal reserve

The “Legal reserve” (€ 13,738k) is the portion of Autogrill S.p.A. profits that cannot be paid out as dividends, in accordance with art. 2430 of the Italian Civil Code.

 

Hedging reserve

The “Hedging reserve” corresponds to the effective portion of the fair value of derivatives designated as cash flow hedges. At 31 December 2015 it had a balance of zero, due to the expiration of Interest Rate Swaps in June 2015 (see Note XVII).

 

Translation reserve

Translation differences are generated by the translation into Euros of the foreign currency financial statements of companies consolidated on a line-by-line basis or using the equity method, net of the fair value of instruments designated as net investment hedges. Of the increase, € 36,161k concerns exchange rate gains from the translation of financial statements in foreign currencies, partially offset by the portion of comprehensive income for investments valued using the equity method (€ 603k) (Note X) and by the change in the fair value of instruments designated as net investment hedges, net of the tax effect (€ 4,809k).

 

Other reserves and retained earnings

These include the profits of subsidiaries not distributed as dividends and the amount set aside in connection with the recognized costs of the Stock Option Plans.

 

Other reserves and retained earnings also include unrealized actuarial gains and losses (net of the tax effect) arising from the remeasurement defined benefit plan assets and liabilities.

The increase in this item was caused by the allocation to reserves of the 2014 profit on the basis of the shareholders’ meeting resolution of 28 May 2015 and by the exercise of Stock Option Plans, partially offset by the change in actuarial gains/losses on defined benefit plans net of the tax effect (€ 723k).

 

Treasury shares

The Annual General Meeting of 28 May 2015, pursuant to arts. 2357 et seq. of the Italian Civil Code and after revoking the authorization granted on 28 May 2014, authorized the purchase and subsequent disposal of ordinary shares up to a maximum of 12,720,000 shares.

At 31 December 2015 the parent owned 365,212 treasury shares (870,798 at the end of 2014) with a carrying amount of € 1,447k and an average carrying amount of € 3.96 per share. The reduction in the number of treasury shares reflects the exercise of options by various beneficiaries under the 2010 Stock Option Plan.

Other than the above, no additional treasury shares were purchased or disposed of in 2015.

Non-controlling interests

Non-controlling interests amount to € 40,400k, compared with € 32,125k at 31 December 2014. Most of the increase is due to the profit the year (€ 14,394k) and capital injections (€ 18,379k), net of dividends paid (€ 21,448k).

Other comprehensive income

The following table shows the components of comprehensive income and the relative tax effect:

 

   2015 2014
(k)Gross amountTax benefit/ (expense)Net amount Gross amountTax benefit/ (expense)Net amount
Remeasurements of the defined benefit (liabilities)/asset * (136) (580) (716)   (21,776) 5,239 (16,537)
Items that will never be reclassified to profit or loss (136) (580) (716)   (21,776) 5,239 (16,537)
Effective portion of fair value change in cash flow hedges 2,649 (728) 1,921   5,048 (1,388) 3,660
Equity-accounted investee – share of other comprehensive income (603) - (603)   (172) - (172)
Gain/(loss) on fair value of available-for-sale financial assets 581 (160) 421   (842) 159 (683)
Foreign currency translation differencesfor foreign operations 34,825 - 34,825   33,819 - 33,819
Gain/(loss) on net investment hedge (5,476) 667 (4,809)   (1,024) 282 (742)
Items that may be subsequently reclassified to profit or loss 31,976 (221) 31,755   36,829 (947) 35,882
Total other consolidated comprehensive income 31,840 (801) 31,039   15,053 4,292 19,345
 

*The change of the defined benefit (liabilities)/assets is detailed in note XXII

As mentioned in section 2.2.2, in 2015 the Group sold its last four Travel Retail & Duty-Free operations to World Duty Free S.p.A. As this qualifies as a transaction under common control in accordance with the Italian preliminary guidelines (OPI 1), the capital gain of $ 8.6m has been recognized net of the tax effect ($ 5.9m) under shareholders’ equity.