ONE ROOF

6. Other operating expenses
(EUR thousand) 2009 2008
Rentals and lease rentals 405,628 330,029
Insurance expenses
Technical and business
229,642 186,927
consulting 153,977 154,398
Travel expenses
Court costs, attorneys’ and
85,626 95,808
notaries’ fees
External organization and
50,144 42,217
programming 42,872 40,370
Office supplies 27,724 27,451
Commission 24,734 16,651
Currency losses
Mail and funds transfer
21,648 19,611
expenses
Impairment losses and losses
on disposal of current assets
17,810 16,821
(except inventories) 16,613 9,644
Marketing
Restructuring and adjustment
15,780 16,152
costs
Expenses from derivative
10,239 21,710
financial instruments 8,931 78,295
Legal costs
Sundry other operating
8,283 10,092
expenses 213,472 193,500
1,333,123 1,259,676
7. Net income from participating interests
Net income from participating interests includes all income
and expenses relating to equity-method investments and
participating interests.
These are classified as follows:
❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘
Most of the increase in rentals and lease rentals is accounted
for by a sale and leaseback arrangement at Leighton Holdings
and by rents at HOCHTIEF Construction Qatar W.L.L.
The insurance expenses mainly relate to project risk manage-
ment in the Turner Group. Insurance payments by Turner and
other project stakeholders such as suppliers and clients are
combined to minimize project execution risks to Turner and its
clients. The insurance expenses are counterbalanced by insurance
revenue reported in sales.
The high prior-year figure for expenses from derivative finan-
cial instruments mostly consisted of changes in the fair value
of derivative financial instruments in connection with obligations
in the Leighton Group to make payments into the equity
of infrastructure project companies, where the changes in fair
value were partly recognized in profit or loss.
Sundry other operating expenses mostly comprise order pro-
cessing, costs of materials for administrative purposes, costs
of preparing the annual financial statements, losses incurred
on disposal of property, plant and equipment, and other expenses
not reported elsewhere. Also included under this
heading are sundry taxes amounting to EUR 22,115,000
(2008: EUR 10,020,000).
Including personnel and material expenses, a total of EUR
5,304,000 was spent on Group-wide research and development
projects by the central innovation management function
in 2009 (2008: EUR 5,212,000).
(EUR thousand) 2009 2008
Share of profits and losses of equity-method associates and jointly controlled entities 204,956 317,001
Of which: Impairment [–] [( 35,652)]
Net income from non-consolidated subsidiaries 71 (2,469)
Of which: Impairment [(1,897)] [(2,421)]
Net income from other participating interests 4,564 (34,570)
Of which: Impairment [(19,382)] [(92,421)]
Income from the disposal of participating interests 8,851 25,866
Expenses on disposal of participating interests (115) (13,236)
Income from long-term loans to participating interests 11,488 13,395
Other income from participating interests 24,859 (11,014)
229,815 305,987
Annual Report 2009 147