30 Reserves and retained earnings Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 In millions of euros 2016 2015 Financial guarantees 11,595 10,402 Loan commitments 44,889 46,674 Letters of credit 6,276 4,980 Credit related off balance sheet commitments 62,760 62,056 The contractual commitments relating to the acquisition, construction and development of work in progress and investment properties amounts to 735 (2015: 678). Contingent liabilities related to litigation Rabobank is involved in a number of legal and arbitration proceedings in the Netherlands and other countries, including the United States, in connection with claims brought by and against Rabobank Group arising from its operations. The maximum amount of non-remote contingent liabilities relating to claims is 61For additional information, please refer to Paragraph 4.10, 'Legal and arbitration proceedings'. Contingent liabilities related to income tax The European Commission has addressed questions to the Dutch government about article 29a of the Dutch Corporate Income Tax Code. If the European Commission would decide to start a formal investigation and ultimately would conclude that this is a case of state aid, Rabobank may have to repay tax benefits it enjoyed from 2015 onwards. Article 29a of the Dutch Corporate Income Tax Code was included in the Dutch Corporate Income Tax Code so that capital instruments issued by credit institutions and which are covered by EU regulation 575/2013 would be considered tax deductible. In this context, Rabobank issued Capital Securities in January 2015 and in April 2016, amounting respectively to EUR 1.5 billion at a fixed interest rate of 5.5%, and EUR 1.25 billion at a fixed interest rate of 6.625%.The contingent liability related to this matter amounts to 54. Liabilities relating to operating leases Rabobank has concluded various operating lease contracts as lessee, mainly with respect to properties, information systems and cars. The future net minimum lease payments under non- cancellable operating leases can be broken down as follows: The expected future minimum lease payments receivable from sub-leases are 0 (2015: 3).The operating lease expenses are 98 (2015: 73). These are included in 'Other administrative expenses' in the statement of income. Payments receivable from operating leases Rabobank has concluded various operating lease contracts as lessor. The future minimum lease payments receivable from non-cancellable operating leases can be broken down as follows: No contingent lease payments were recognised as assets during the current year. 1 Prior-year figures adjusted due to the restatement (see note 2.1 in millions of euros 2016 2015 Not later than 1 year 796 1,340 Later than 1 year but not later than 5 years 1,551 2,050 Later than 5 years 83 38 Total payments receivable from operating leases 2,430 3,428 in millions of euros 2016 2015 Foreign currency translation reserves 203 (76) Revaluation reserves - Available-for-sale financial assets 571 512 Revaluation reserve - Cash flow hedges (70) (39) Revaluation reserve-Other - 2 Revaluation reserve - Assets held for sale (70) Remeasurement reserve-Pensions (219) (175) Revaluation reserve - Fair value changes due to own credit risk on financial liabilities designated at fair value (303) Retained earnings 25,709 25,399 Total reserves and retained earnings at year-end 25,821 25,623 in millions of euros 2016 2015 Not later than 1 year 145 103 Later than 1 year but not later than 5 years 332 308 Later than 5 years 375 185 Total liabilities relating to operating leases 852 596 231 Notes to the consolidated financial statements

Rabobank Bronnenarchief

Jaarverslagen Rabobank | 2016 | | pagina 232