Net assets

The purchase price allocation (PPA) for the acquisition of Dematic was finalised in the reporting year, leading to the retrospective restatement of the carrying amounts as at 31 December 2016. Currency translation effects as at the end of 2016 fell by a total of €39.4 million because goodwill and other intangible assets had been allocated to individual companies for the purposes of foreign currency translation. The finalisation of the PPA in 2017 resulted in a reduction of deferred tax assets and liabilities and a corresponding decline of €13.1 million in goodwill retrospectively in the prior year.

Non-current assets

Non-current assets decreased to €8,746.9 million as at the reporting date (31 December 2016: €8,942.4 million). Intangible assets accounted for €5,716.4 million (31 December 2016: €6,175.6 million). The depreciation of the US dollar against the euro particularly impacted on goodwill, which fell by €190.4 million to €3,382.5 million. The sharp drop in other intangible assets to €2,333.9 million (31 December 2016: €2,602.7 million) was largely attributable to current write-downs in connection with the purchase price allocations, especially in the Supply Chain Solutions segment.

Rental assets increased to €651.4 million, reflecting the continued expansion of the rental fleet in the Industrial Trucks & Services segment (31 December 2016: €575.3 million). Leased assets for leases with end customers that are classified as operating leases also increased owing to the higher volume of business, rising from €429.7 million to €522.3 million as at 31 December 2017. Long-term lease receivables arising from leases with end customers that are classified as finance leases swelled to €647.8 million (31 December 2016: €531.3 million).

At €370.5 million, the amount of deferred tax assets recognised in the statement of financial position as at the reporting date was lower than the figure recognised at the end of 2016 of €419.8 million. Further details regarding the change in deferred tax assets are provided in note [14] in the notes to the consolidated financial statements.

Current assets

Overall, current assets rose by 5.4 per cent to €2,481.5 million (31 December 2016: €2,354.6 million). The €96.2 million increase in inventories to €768.6 million (31 December 2016: €672.4 million) was largely attributable to the growth of the Industrial Trucks & Services segment.

Trade receivables were also up, rising by 9.5 per cent to €1,094.1 million as at 31 December 2017. Construction contracts in the project business with a net credit balance due from customers amounted to €94.7 million as at the reporting date, which was virtually unchanged on the amount as at 31 December 2016.

The KION Group’s net working capital, which comprises inventories, trade receivables and unbilled construction contracts (net) less trade payables and advances received, increased to €606.2 million as at the reporting date (31 December 2016: €495.9 million). > TABLE 026

The groupwide optimisation of cash management (cash pooling) enabled cash and cash equivalents to be reduced to €173.2 million as at 31 December 2017 (31 December 2016: €279.6 million).

Current lease receivables from end customers increased by €27.7 million year on year to €228.0 million (31 December 2016: €200.3 million).

The condensed consolidated statement of financial position as at 31 December 2017 showing current and non-current assets and liabilities together with equity is presented in > TABLE 027.