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134 • PARENT COMPANY FINANCIAL STATEMENTS
PANDORA ANNUAL REPORT 2016
CONTINGENT LIABILITIES
5.1
Litigation
PANDORA A/S is a party to a number of legal proceedings,
which are not expected to have material impact on future
earnings.
Contractual obligations
PANDORA A/S has entered into a number of long-term
purchase, sales and supply contracts in the course of the
Company’s ordinary business. In addition to the lease
commitments disclosed, contractual obligations amount to
DKK 149 million (2015: DKK 272 million). Apart from the
liabilities recognised in the balance sheet, the Company
does not expect to incur any significant financial losses as a
result of these contracts.
Other contingent liabilities
PANDORA has issued letters of support in favour of
certain subsidiaries. Furthermore, the Company has issued
guarantees totalling DKK 495 million at 31 December 2016
in favour of certain subsidiaries related to securing local
credit lines, direct debit withdrawals and rental agreements
(2015: DKK 426 million).
The Company is jointly taxed with Danish subsidiaries.
The Company is jointly and severally liable with other
jointly taxed Danish companies within the Group for
income tax and withholding taxes due on or after 1 July
2012 in the joint taxation.
In 2016 PANDORA A/S has not provided bank
guarantees on behalf of subsidiaries (2015: DKK 373
million).
NOTES FOR THE
PARENT COMPANY