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Rothschild & Co | Annual Report 2017
C. Tax consolidation
R&Co is the head of a tax group that includes the following companies:
• Paris Orléans Holding Bancaire SAS;
• Concordia Holding SARL;
• Financière Rabelais SAS;
• K Développement SAS;
• PO Fonds SAS;
• PO Mezzanine SAS;
• Verseau SAS.
This tax grouping lasts for five years and expires on 31 March 2019.
As part of the tax consolidation process, each subsidiary in the tax consolidation group calculates its income tax as if it were taxed on a stand-alone basis.
As at 31 December 2017, the tax consolidation group headed by R&Co had no tax loss carried forward.
D. Consolidation
R&Co, the parent company of the Rothschild & Co Group, prepares consolidated financial statements as at 31 December 2017, which are in turn
consolidated into the Rothschild Concordia SAS group, registered at 23 bis, avenue de Messine, 75008 Paris, France.
E. Forward financial instruments
As at 31 December 2017, R&Co has no forward financial instruments.
F. Off-balance sheet commitments
In thousands of euro
31/12/2017 31/03/2017
Commitments given
Guarantees given and other commitments
289
289
Investment commitments in various funds
1
26
Earnout amounts to be paid for shares purchased
12,827
14,210
TOTAL
13,117
14,525
Commitments received
Undrawn lines of credit
62,795
85,000
TOTAL
62,795
85,000
Financial commitments given are described below:
1 Off-balance sheet commitments relating to the purchase of preferred shares in Messine Managers
Investissements SAS
In July 2015 and March 2016, R&Co acquired from minority shareholders all b1, b2, b3 and b4 preference shares not yet held by Messine Managers
Investissements SAS (“MMI”). MMI intended to involve the Company’s managers in potential capital gains that may be realised by the Company as it exits
its private equity investments. Within the framework of agreements with these minority shareholders, the Company agreed to pay them earnouts on shares
transferred, estimated at €5,227 thousand as at 31 December 2017.
2 Off-balance sheet commitments relating to the Equity Schemes
A. LEGAL AUTHORISATION ALLOWING FOR THE IMPLEMENTATION OF EQUITY SCHEMES
The combined general shareholders’ meetings of 26 September 2013 delegated to the Managing Partner the authority to award stock options to certain
senior managers or corporate officers of the Rothschild & Co Group.
By invoking the authority to award stock options to beneficiaries, the Company also wanted to promote the convergence of interests of beneficiaries of
these options with the controlling family shareholder as well as shareholders.
Notes to the Company financial statements