NOTES
Consolidated financial statements •97
CONTINGENT LIABILITIES
Litigation
PANDORA is party to various legal proceedings, which are
not expected to significantly affect PANDORA’s financial
positionor future earnings.
Contractual obligations
PANDORA is a party to a number of long-termpurchase,
sales and supply contracts entered into in the course of
theGroup’s ordinary business. In addition to the lease
commitments disclosed innote 3.2, contractual obligations
amounted toDKK 226million (2013: DKK 92million).
Apart from the liabilities already recognised in the balance
sheet, theGroupdoes not expect to incur any significant
financial losses as a result of these contracts.
Significant accounting estimates
Litigation
The factors taken into account when estimating a potential
liability in connectionwith 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, andManagement’s decision onhow the
Groupwill react to the litigationor claim.
SECTION 5: OTHER DISCLOSURES, CONTINUED
RELATEDPARTIES
FEESTO STATUTORYAUDITOR
5.2
5.3
5.4
Relatedpartieswith significant interests
At 31December 2014, treasury shares accounted for 5.6%
of the share capital, see note 4.1. No other shareholders
heldmore than 5% of the share capital.
Until June 2014, AxcelManagement A/S exercised
control overmore than 5% of the shares in PANDORA
through its controlling interest in the following PANDORA
shareholders: Axcel III K/S 1, Axcel III K/S 2 andAxcel
III K/S 3.
Other related parties of PANDORAwith significant
influence include the Boards of Directors and the
Executive Boards of these companies and their close
familymembers. Related parties also include companies
inwhich the aforementioned persons have control or
significant interests.
Transactionswith related parties
As part of the share buyback carriedout in2014,
PANDORAhas purchased own shares frommajor
shareholders.The shareswere purchased at the volume-
weighted average purchase price for the shares purchased
under the share buyback programme in themarket on the
relevant day of trading.
In the thirdquarter, PANDORA included the full
accrual of potential severance payments through to end
of 2016of DKK 34million related to the agreement with
the current CEO, Allan Leighton. Besides this severance
payment, PANDORAdid not enter into any significant
transactionswithmembers of the Board of Directors or the
Executive Board, except for compensation and benefits
received as a result of theirmembership of the Board of
Directors, employment with PANDORA or shareholdings in
PANDORA. Reference ismade tonotes 2.3 and2.4.
DKKmillion
2014
2013
Fee for statutory audit
4
3
Other assurance engagements
1
2
Tax consultancy
11
10
Other services
3
4
Total fees to statutory auditor
19
19
The costs are recognised in the consolidated income statement as administrative expenses.
