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NOTES
Consolidated financial statements • 115
CONTINGENT LIABILITIES
Litigation
PANDORA is a party to various legal proceedings, which
are not expected to significantly affect PANDORA’s
financial position or future earnings.
Contractual obligations
PANDORA is a party to a number of long-term purchase,
sales and supply contracts entered into in the course of
the Group’s ordinary business. In addition to the lease
commitments disclosed in note 3.2, contractual obligations
amounted to DKK 193 million (2015: DKK 388 million).
Apart from the liabilities already recognised in the
balance sheet, no significant financial losses are expected
to be incurred as a result of these contracts.
Significant accounting estimates
Litigation
The factors taken into account when estimating a potential
liability in connection with litigation include the nature
of the litigation or claim. Other factors taken into account
are the development of the case, the judgements and
recommendations of legal or other advisers, experience
from similar cases, and Management’s decision on how the
Group will react to the litigation or claim.
SECTION 5: OTHER DISCLOSURES, CONTINUED
RELATED PARTIES
5.2
5.3
Related parties with significant interests
At 31 December 2016, treasury shares accounted for 4.4%
of the share capital, see note 4.1.
Other related parties of PANDORA with significant
influence include the Board of Directors, Executive
Management and their close family members.
Related parties also include companies in which the
aforementioned persons have control or significant
interests.
Transactions with related parties
As part of the share buyback carried out in 2016,
PANDORA purchased own shares from major shareholders.
The shares were purchased at the volume-weighted average
purchase price for the shares purchased under the share
buyback programme in the market on the relevant day of
trading.
PANDORA did not enter into any significant
transactions with members of the Board of Directors or
the Executive Management, except for compensation
and benefits received as a result of their membership of
the Board of Directors, employment with PANDORA or
shareholdings in PANDORA. Reference is made to notes
2.3 and 2.4.