notes to the consolidated financial statements
22. statement of cash flows
The statement of cash flows has been prepared applying the indirect method. Cash in the statement of cash flows comprises cash and cash equivalents as well as current borrowings, because current borrowings form an integral part of the Group’s cash management. The short-term part of non-current borrowings is not included.
Cash flows in foreign currencies have been translated at average exchange rates. Exchange differences concerning cash items are shown separately in the statement of cash flows. Income taxes paid/received are included in the cash flow from operating activities. Finance income received, finance expenses paid and dividends paid are included in the cash flow from financing activities.
The purchase price of acquisitions paid, as well as the selling price of disposed subsidiaries received, is included in cash flow from investing activities. This purchase price paid, as well as the selling price received, is included in the statement of cash flows net of net cash acquired or disposed of respectively.
Changes in assets and liabilities resulting from the acquisition and disposal of subsidiaries are taken into account in the calculation of the consolidated cash flows.
The majority of the items in the consolidated statement of cash flows are individually cross-referenced to the relevant notes to the consolidated income statement and balance sheet. For the remainder of the material items, the reconciliation between amounts as included in the
consolidated statement of cash flows and related amounts in the statement of comprehensive income and balance sheet is shown in this note.
22.1 Cash
cash
2013 2012
Cash and cash equivalents 136.1 191.5
Current borrowings (153.7) (82.5)
(17.6) 109.0
22.2 Trade and other receivables
Trade and other receivables as calculated below exclude the short-term part of the held-to-maturity investments.
trade and other receivables
2013 2012
Balance at January 1 2,870.6 3,109.1
Acquisition of subsidiaries 121.9 0.0
Disposal of subsidiaries (14.9) (21.7)
Interest and deferred receipts (4.2) 0.7
Translation losses and other (107.0) (19.6)
Statement of cash flows 64.1 (197.9)
Balance at December 31 2,930.5 2,870.6
22.3 Trade and other payables
trade and other payables
2013 2012
Balance at January 1 2,343.0 2,477.5
Acquisition of subsidiaries 73.6 5.8
Disposal of subsidiaries (8.9) (14.0)
Interest 0.8 (0.4)
Payment of software additions - (2.1)
Translation gains and other (76.3) (10.1)
Statement of cash flows 141.7 (113.7)
Balance at December 31 2,473.9 2,343.0
22.4 Employee benefit obligations
employee benefit obligations
2013 2012
Balance at January 1 24.1 24.4
Acquisition of subsidiaries 1.3
-Disposal of subsidiaries (0.2) (0.2)
Changes in accounting policies (IAS 19) 19.2
-Interest due to passage of time 1.2 3.7
Charged to other comprehensive income 15.2
-Translation gains and other (1.8) (0.9)
Statement of cash flows 22.1 (2.9)
Balance at December 31 81.1 24.1
150
22.5 Provisions
provisions
2013 2012
Balance at January 1 180.2 160.2
Acquisition of subsidiaries 30.9
-Disposal of subsidiaries 0.0 (0.6)
Interest due to passage of time 2.0 2.2
Translation gains and other (4.0) (1.5)
Statement of cash flows (72.6) 19.9
Balance at December 31 136.5 180.2
22.6 Other non-cash items
other non-cash items
2013 2012
CICE receivable (72.6)
-Held-to-maturity investments 4.1 3.9
Statement of cash flows (68.5) 3.9
For the CICE receivable, see note 16.2 . 22.7 Free cash flow
Free cash flow comprises net cash from operating and investing activities, excluding the acquisition and disposal of subsidiaries/activities and buyout of non-controlling interests:
free cash flow
2013 2012
Net cash from operating activities 340.7 528.6 Net cash from investing activities (58.6) (92.8)
282.1 435.8
Acquisition of subsidiaries/activities and
buyout of non-controlling interests 19.2 44.1 Disposal of subsidiaries/activities (8.4) (13.4)
Free cash flow 292.9 466.5
23. subsidiaries
Subsidiaries are companies in which Randstad Holding nv has the power, directly or indirectly, to govern the financial and operational policies so as to obtain benefits from its activities, generally accompanying a shareholding of more than 50% of the voting rights. Subsidiaries are consolidated from the date that such control commences until the date that it ceases.
Intragroup balances and intragroup transactions are eliminated, as well as any unrealized gains from these transactions. Unrealized losses from intragroup transactions are also eliminated, unless there is evidence of impairment of the assets transferred. Intercompany transactions take place on an arm’s length basis.
23.1 Financial statements of Group companies Upon translation of foreign activities, the assets and liabilities of operations in currencies other than the euro, including goodwill and fair value adjustments arising on consolidation, are translated into euros at the foreign exchange rates at the balance sheet date. The income statements of these operations in currencies other than the euro are translated into euros at average exchange rates.
Upon the acquisition of a subsidiary that has a currency other than the euro, balance sheet items are translated into euros at the foreign exchange rates at the acquisition date.
23.2 Net investment in subsidiaries that have a currency other than the euro
The net investment in subsidiaries that have a currency other than the euro includes the participation in the net assets of these subsidiaries, and, if applicable, loans to these subsidiaries, settlement of which is neither planned nor expected to occur in the foreseeable future.
Translation differences that occur upon consolidation, relating to the translation of the net investment in subsidiaries that have a currency other than the euro, are recognized in other comprehensive income and presented in the (foreign currency) translation reserve, a separate component within equity, as are translation differences of financial liabilities designated as hedges of such investments (net investment hedge), to the extent that the hedge is effective. The gain or loss relating to the ineffective portion is recognized immediately in net finance costs.
If the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation differences is allocated to the non-controlling interests.
Whenever a foreign operation is disposed of, these translation differences are released or charged to the statement of comprehensive income as part of the gain or loss on disposal.
notes to the consolidated financial statements
annual report 2013 – Randstad Holding nv
23.3 Overview of major subsidiaries Europe
Randstad Nederland bv Amsterdam, the Netherlands
Tempo-Team Group bv Amsterdam, the Netherlands
Yacht Group bv Amsterdam, the Netherlands
Randstad Sourceright International bv Amsterdam, the Netherlands
Randstad Belgium nv Brussels, Belgium
Tempo-Team nv Brussels, Belgium
Randstad Interim sa Luxembourg, Luxembourg
Randstad Deutschland GmbH & Co KG Eschborn, Germany
Randstad Professionals GmbH & Co KG Cologne, Germany
Randstad SAS Saint-Denis, France
Randstad Schweiz AG Zurich, Switzerland
Randstad Austria GmbH Vienna, Austria
Randstad Empleo, Empresa De Trabajo Temporal S.A. Sociedad Unipersonal Madrid, Spain
Randstad Recursos Humanos, Empresa de Trabalho Temporario S.A. Lisbon, Portugal
Randstad UK Holding Ltd Luton, United Kingdom
Randstad Italia SPA Milan, Italy
Randstad Polska Sp. z.o.o. Warsaw, Poland
Randstad A/S Copenhagen, Denmark
Randstad AB Stockholm, Sweden
Randstad Norway AS Oslo, Norway
North America
Randstad North America LP Atlanta, United States
Randstad Professionals US LP Boston, United States
Randstad Intérim Inc. Montreal, Canada
Rest of world
Sesa Internacional S.A. Rosario, Argentina
Top Personnel S. de R.L. de CV Mexico City, Mexico
Randstad Brasil Recursos Humanos Ltda Sao Paulo, Brazil
Randstad Chile S.A. Santiago, Chile
Randstad Pty Ltd Sydney, Australia
Talent Shanghai Co. Ltd Shanghai, China
Randstad India Ltd Chennai, India
Randstad KK Tokyo, Japan
Other subsidiaries
Randstad Groep Nederland bv Amsterdam, the Netherlands
Randstad Financial Services nv Brussels, Belgium
Randstad Finance GmbH Zurich, Switzerland
The fully consolidated German subsidiaries mentioned above exercise simplification options in accordance with Article 264.b of the German Commercial Code (‘HGB’).
A list of all subsidiaries has been filed at the Chamber of Commerce in Amsterdam (‘Kamer van Koophandel’, Amsterdam).
Randstad Holding nv has, directly or indirectly, a 100% interest in all subsidiaries (by way of legal ownership of the shares or by way of economic ownership of the shares (put-call option arrangements) for a limited number of companies), unless stated otherwise.