32 – Related-party transactions
A related party is a natural person or legal entity which can exert influence on the BASF Group or over which the BASF Group exercises control or joint control or a significant influence. In particular, this comprises nonconsolidated subsidiaries, joint ventures and associated companies.
The following tables show the volume of business with related parties that are included at amortized cost or accounted for using the equity method.
Sales to related parties (million €) |
|||
|
|
2016 |
2015 |
---|---|---|---|
Nonconsolidated subsidiaries |
|
395 |
389 |
Joint ventures |
|
317 |
378 |
Associated companies |
|
245 |
370 |
Trade accounts receivable from / trade accounts payable to related parties (million €) |
|||||
|
|
Accounts receivable, trade |
Accounts payable, trade |
||
---|---|---|---|---|---|
|
|
December 31, |
December 31, |
December 31, |
December 31, |
Nonconsolidated subsidiaries |
|
135 |
139 |
73 |
60 |
Joint ventures |
|
76 |
71 |
92 |
54 |
Associated companies |
|
55 |
34 |
44 |
44 |
Other receivables and liabilities with related parties (million €) |
|||||
|
|
Other receivables |
Other liabilities |
||
---|---|---|---|---|---|
|
|
December 31, |
December 31, |
December 31, |
December 31, |
Nonconsolidated subsidiaries |
|
176 |
161 |
178 |
180 |
Joint ventures |
|
196 |
229 |
97 |
120 |
Associated companies |
|
390 |
517 |
258 |
203 |
Sales and trade accounts receivable from and trade accounts payable to related parties mainly included business with own products and merchandise, agency and licensing businesses, and other operating business.
Other receivables and liabilities primarily arose from financing activities, outstanding dividend payments, profit-and-loss transfer agreements, and other finance-related and operating activities and events.
The decline of €127 million in other receivables from associated companies in 2016 was largely due to the repayment of long-term loans.
The outstanding balances toward related parties were generally not secured and settled in cash. As in the previous year, there were no significant valuation allowances in 2016 for trade accounts receivable from related parties. The balance of valuation allowances for other receivables from nonconsolidated subsidiaries rose from €39 million as of December 31, 2015, to €79 million as of December 31, 2016. Thereof €26 million in 2016 was recognized as an expense (2015: €17 million).
There were obligations from guarantees and other financial obligations at BASF in favor of nonconsolidated subsidiaries in the amount of €3 million on December 31, 2016 (December 31, 2015: €45 million) and in favor of associated companies in the amount of €21 million in 2016 (December 31, 2015: €37 million).
Obligations arising from purchase contracts with associated companies amounted to €26 million as of December 31, 2016 and €29 million as of December 31, 2015.
Effective December 31, 2016, the present value of the outstanding minimum rental payments for an office building including parking area payable by BASF SE to BASF Pensionskasse VVaG for the nonterminable basic rental period to 2029 amounted to €57 million.
There were no reportable related party transactions with members of the Board of Executive Directors or the Supervisory Board and their related parties in 2016.
For more information on other financial obligations in favor of joint ventures, see Note 25: “Other financial obligations”
For more information on defined benefit plans that share risks between the Group companies (including nonconsolidated subsidiaries), see Note 22: “Provisions for pensions and similar obligations”
For more information on the Board of Executive Directors and the Supervisory Board, see:
Board of Executive Directors
Supervisory Board
Compensation Report