Note D: Financial non-current assets
|
Subsidiaries |
|
|
|
|---|---|---|---|---|
In € millions |
Share in capital |
Loans |
Other non-current assets |
Total |
Balance at January 1, 2019 |
9,246 |
1,949 |
91 |
11,286 |
Investments/ |
179 |
— |
— |
179 |
Divestments/ |
(760) |
— |
— |
(760) |
Net income from subsidiaries |
564 |
— |
— |
564 |
Equity-settled transactions |
14 |
— |
— |
14 |
Loans granted |
— |
1,079 |
— |
1,079 |
Repayment of loans |
— |
(779) |
— |
(779) |
Changes in exchange rates |
139 |
(4) |
— |
135 |
Post-retirement benefits |
(223) |
— |
— |
(223) |
Balance at December 31, 2019 |
9,159 |
2,245 |
91 |
11,495 |
Investments/ |
— |
— |
2 |
2 |
Divestments/ |
(92) |
— |
(1) |
(93) |
Impairments |
— |
— |
(2) |
(2) |
Net income from subsidiaries |
536 |
— |
— |
536 |
Equity-settled transactions |
10 |
— |
— |
10 |
Loans granted |
— |
469 |
— |
469 |
Loans transferred |
— |
919 |
— |
919 |
Repayment of loans |
— |
(775) |
— |
(775) |
Changes in exchange rates |
(390) |
(7) |
— |
(397) |
Post-retirement benefits |
90 |
— |
— |
90 |
Acquisition of non-controlling interests |
(29) |
— |
— |
(29) |
Balance at December 31, 2020 |
9,284 |
2,851 |
90 |
12,225 |
Investments in subsidiaries are measured using the equity method of accounting. Due to an intra-group funding restructuring, several intercompany loans were transferred in 2019 and 2020 from certain foreign subsidiaries to Akzo Nobel N.V.. Intercompany loans are priced at fair value at the date of the transfer, taking factors like the credit quality of AkzoNobel, country and currency risks into consideration.
Loans to subsidiaries that will mature in 2021 amounted to €705 million and the remaining amount of €2,015 million will mature between 2022 and 2025. The remainder of the loans to subsidiaries has no fixed repayment schedule.