[26] Related Parties.

A list of affiliated companies of Wincor Nixdorf AG is included in Note [29]. Related parties according to IAS 24 “Related Party Disclosures” are, besides the Board of Directors, essentially the Supervisory Board, investments, and shareholders.

In August 2016, Diebold Holding Germany Inc. Co KGaA, Eschborn (in the following “Diebold KGaA”, acquired a majority in Wincor Nixdorf AG, Paderborn. On September 26, 2016, the shareholders of Wincor Nixdorf AG at an Extraordinary General Meeting approved a domination and profit and loss transfer agreement (DPLA) with Diebold KGaA, which has not yet been entered into the commercial register. In conjunction with the approved DPLA Diebold, Inc. – without entering into the agreement – separately issued a comfort letter in favor of Wincor Nixdorf AG. By means of this comfort letter Diebold, Inc. commits itself to unlimitedly and irrevocably provide Diebold KGaA with the necessary financial support to fulfill its possible loss compensation obligations according to § 302 AktG against Wincor Nixdorf AG in due time. Wincor Nixdorf AG will be included in the Group financial statements of Diebold, Inc. as of December 31, 2016.

Business relations with affiliated companies.

 

Transaction values for the year ended

Balance outstanding as at

 

2015/2016

2014/2015

Sept. 30, 2016

Sept. 30, 2015

Sale of goods and service parts

12,928

10,836

Administrative and passed on services

1,196

639

Obtained Services

1,578

570

Financing

71

58,249

Compensation of Board of Directors and Supervisory Board.

The compensation of the Board of Directors is as follows:

 

 

€k

 

2015/2016

2014/2015

Short-term benefits (without share-based compensation)

5,649

1,905

Share-based compensation

2,404

1,978

Total compensation

8,053

3,883

Post-employment benefits

305

276

Total

8,358

4,159

The disclosure of share-based compensation refers to the fair value at the grant date. Additions to superannuation (current service costs) for current members of the Board of Directors are disclosed as post-employment benefits. With the conversion of the pension scheme from pension payments to a one-time pay-off or payments in several installments, also pension obligations of the Board of Directors were adapted. As of September 30, 2016, the entitlement to funds of the Board of Directors upon reaching the specified age limit (retirement capital) amounts to €2,942k (2014/2015: €2,514k).

The members of the Board of Directors own 987,271 share options from the share-based payment programs 2013 to 2016 as of September 30, 2016 (2014/2015: 868,721 share options from share-based payment programs 2012 to 2015). As of September 30, 2016, the Supervisory Board held 12,000 share options (2014/2015: no share options).

The compensation of the Supervisory Board is as follows:

In the year under review, the members of the Supervisory Board received fringe benefits amounting to €851k (2014/2015: €765k). No long-term benefits are arranged with the members of the Supervisory Board. In addition to their compensation as members of the Supervisory Board, those employee representatives who are employees of the Group receive compensation unrelated to their service on the Supervisory Board. The total amount of such compensation was €694k (2014/2015: €448k).

For individualized presentation and further details of the Board of Director´s and Supervisory Board’s compensation, please refer to the presentation of the compensation report, which is part of the Group Management Report.

Total compensation paid to former members of the Board of Directors amounted to €123k in fiscal 2015/2016 (2014/2015: €1,623k; included is a compensation of €1,500k for the termination of the employment contract of Jens Bohlen. An amount of €3,328k (2014/2015: €3,174k) is accrued for pension obligations of former members of the Board of Directors and their bereaved.

Business relations with joint ventures and associated companies.

The Group has business relations with the joint venture CROWN B.V. Transactions with this related party result from the delivery and service relations in the ordinary course of business. The volume of business relations is minor.

As part of the strategic restructuring of business activities in China trade receivables from associated companies amount to €51,527k as well as finance receivables of €2,314k. Further on, trade payables to associated companies amount to €30,845k.