Note D: Financial non-current assets
|
Subsidiaries |
|
|
|||
|---|---|---|---|---|---|---|
In € millions |
Share in capital |
Loans* |
Other non-current assets |
Total |
||
Balance at January 1, 2020 |
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/ |
41 |
— |
— |
41 |
||
Divestments/ |
(61) |
— |
— |
(61) |
||
Net income from subsidiaries |
871 |
— |
— |
871 |
||
Equity-settled transactions |
11 |
— |
— |
11 |
||
Loans granted |
— |
293 |
— |
293 |
||
Loans transferred |
— |
29 |
— |
29 |
||
Repayment of loans |
— |
(1,298) |
— |
(1,298) |
||
Changes in exchange rates |
337 |
57 |
— |
394 |
||
Post-retirement benefits |
(8) |
— |
— |
(8) |
||
Balance at December 31, 2021 |
10,475 |
1,932 |
90 |
12,497 |
||
|
||||||
Investments in subsidiaries are measured using the equity method of accounting. Due to an intra-group funding restructuring, several intercompany loans were transferred in 2020 and 2021 from certain foreign subsidiaries to Akzo Nobel N.V. This intra-group funding restructuring has been finalized in 2021. Intercompany loans are priced at arm’s length, taking factors like the credit quality of AkzoNobel and the counterparty, country and currency risks into consideration. The fair value of the loans to subsidiaries approximates the book value.
Loans to subsidiaries that will mature in 2022 amounted to €202 million, and €1,481 million will mature between 2023 and 2026 and an amount of €74 million after 2026. The remainder of the loans to subsidiaries has no fixed repayment schedule.