Incidental items
Alliander’s results can be affected by incidental items and fair value movements. Alliander defines incidental items as items which in management’s opinion do not derive directly from the ordinary activities and/or whose nature and size are so significant that they must be considered separately to permit proper analysis of the underlying results. To qualify as incidental items, a lower limit of €10 million is generally applied.
Net incidental items and fair value movements in 2017 combined to give a charge of €3 million after tax (2016: gain of €150 million). The following table contains an overview of the reported figures and the figures excluding incidental items and fair value movements.
Reported figures and figures excluding incidental items and fair value movements
€ million | Reported | Incidental items and fair value movements | Excluding incidental items and fair value movements | |||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |
Revenue | 1,697 | 1,584 | - | - | 1,697 | 1,584 |
Other income | 143 | 139 | - | - | 143 | 139 |
Total purchase costs, costs of subcontracted work and operating expenses | -1,367 | -1,320 | -4 | -21 | -1,363 | -1,299 |
Depreciation and impairment | -396 | -395 | - | -13 | -396 | -382 |
Own work capitalised | 228 | 199 | - | - | 228 | 199 |
Operating profit (EBIT) | 305 | 207 | -4 | -34 | 309 | 241 |
Finance income/(expense) | -43 | -54 | - | -1 | -43 | -53 |
Result from associates and joint ventures | 9 | -5 | - | - | 9 | -5 |
Profit before tax | 271 | 148 | -4 | -35 | 275 | 183 |
Tax | -68 | -42 | 1 | 9 | -69 | -51 |
Profit after tax from continuing operations | 203 | 106 | -3 | -26 | 206 | 132 |
Profit after tax from discontinued operations | - | 176 | - | 176 | - | - |
Profit after tax | 203 | 282 | -3 | 150 | 206 | 132 |
Total purchase costs, costs of subcontracted work and operating expenses
(2017: €4 million charge, 2016: €21 million charge)
The incidental charge of €4 million concerned costs relating to organisational changes.
The incidental charge recognised as purchase costs, costs of subcontracted work and operating expenses in 2016 included €10 million in respect of project costs and integration costs concerned with the exchange of the energy networks of Enexis in Friesland and the Noordoostpolder with those of Liander in the Eindhoven region and Zuidoost-Brabant (Endinet) on 1 January 2016. Of the remainder of the incidental items included in 2016 in purchase costs, costs of subcontracted work and operating expenses, €11 million was the cost of organisational changes.
Depreciation and impairments
(2017: nil, 2016: €13 million charge)
The incidental charge of €13 million in depreciation and impairment in 2016 was a consequence of the annual triggering event analysis and impairment calculation process and concerned additional depreciation of transformers, part of the network in Germany, vacant premises and part of the CDMA network.
Financial income and expense
(2017: nil, 2016: €1 million charge)
Tax
(2017: €1 million gain, 2016: €9 million gain)
These amounts relate to the tax effect of the incidental items in other income, total purchase costs, costs of subcontracted work and operating expenses and finance income and expense.
Profit after tax from discontinued operations
(2017: nil, 2016: €176 million gain)
The incidental item in the profit after tax from discontinued operations in 2016 related in full to the book profit on the sale of Endinet to Enexis. It should be noted that the substantial-holding privilege applies to the book profit.