31. Related parties
31.1 Transactions with related entities in which the Group holds equity interests
| Equity-accounted joint ventures | 2016 | 2015 | |
|---|---|---|---|
| Sales | 209,926 | 200,263 | |
| Purchases | 43 | 117 | |
| Note | Dec 31 2016 | Dec 31 2015 | |
| Receivables | 16 | 16,149 | 12,219 |
| Liabilities | 188 | - |
In 2016 and 2015, material transactions were made by the Group with LOTOS-Air BP Polska Sp. z o.o. and involved mainly sale of aviation fuel. The aggregate value of these transactions executed in 2016 was PLN 209,710 thousand (2015: PLN 198,816 thousand). As at December 31st 2016, the balance of outstanding receivables under these transactions was PLN 16,141 thousand (December 31st 2015: PLN 12,219 thousand).
For general information on joint ventures in which the Group holds interests, see Note 14.
31.2 Entity having control of the Group
As at December 31st 2016 and December 31st 2015, the State Treasury held a 53.19% interest in Grupa LOTOS S.A. In 2015 and 2016, no transactions were concluded between Grupa LOTOS S.A. and the State Treasury.
31.3 Transactions with related entities of which the State Treasury has control or joint control or on which the State Treasury has significant influence
In 2016 and 2015, the Group executed transactions with parties related to it through the State Treasury, the aggregate value of which was material. They were concluded on an arm’s length basis in the course of the Group’s day-to-day operations and involved mainly sale of fuels, sale and purchase of storage services, sale and purchase of transport services, purchase of electricity, natural gas and other fuels.
| 2016 | 2015 | |
|---|---|---|
| Sales | 370,118 | 335,843 |
| Purchases | 1,237,567 | 1,757,779 |
| Dec 31 2016 | Dec 31 2015 | |
| Receivables | 28,894 | 27,859 |
| Liabilities | 247,109 | 130,356 |
31.4 Remuneration of members of the Management and Supervisory Boards; loans and other similar benefits granted to members of the management and supervisory staff
| Remuneration paid to members of the Company's Management and Supervisory Boards | 2016 | 2015 |
|---|---|---|
| Management Board | ||
| Short-term employee benefits (salaries) | 1,493 | 1,183 |
| Management Board - subsidiaries (1) | ||
| Short-term employee benefits (salaries) | 2,986 | 3,631 |
| Supervisory Board | ||
| Short-term employee benefits (salaries) | 338 | 252 |
| Total (2) | 4,817 | 5,066 |
| Other employee benefits | Dec 31 2016 | Dec 31 2015 |
| Management Board | ||
| Post-employment benefits, length-of-service awards and other benefits | 334 | 654 |
| Current liabilities under annual bonus (3) | 77 | 311 |
| Total | 411 | 965 |
(1) Remuneration paid to members of the Company’s Management Board for serving on governing bodies of direct and indirect subsidiaries.
(2) The amount reflects changes in the composition of the Company’s Management and Supervisory Boards.
(3) Pursuant to the Act on Remunerating Persons Who Manage Certain Legal Entities (the Public Sector Salary Cap Act).
In 2016 and 2015, the Group did not enter into material transactions with any Management Board or Supervisory Board members, did not advance any loans, make any advance payments, issue any guarantees to or conclude any other agreements with any Management Board or Supervisory Board member, which would be advanced, made, issued or concluded otherwise than on an arm’s length basis or which would have a material bearing on these financial statements.
Based on representations submitted by members of the Company’s Management and Supervisory Boards, in 2015 and 2016 Grupa LOTOS S.A. was not aware of any transactions concluded with the Company or another company of the LOTOS Group by the spouses, relatives, or relatives by affinity in the direct line up to the second degree, of members of the Management and Supervisory Boards, or persons related to them through guardianship or adoption or other persons with whom they have personal relationships.
31.5 Remuneration paid or payable to other members of key management staff
| Remuneration paid to members of key management staff (other than members of the Grupa LOTOS Management Board) | 2016 | 2015 |
|---|---|---|
| Short-term employee benefits (salaries), including: | 33,660 | 26,032 |
| - annual bonus paid | 7,377 (1) | 3,339 (2) |
| - length-of-service award paid | 572 | 777 |
| Other employee benefits | Dec 31 2016 | Dec 31 2015 |
| Post-employment benefits, length-of-service awards and other benefits | 11,483 | 11,903 |
| Current liabilities under annual bonus | 8,972 | 7,171 |
| Loans and other similar benefits | 5 | 26 |
| Total | 20,460 | 19,100 |
(1) Remuneration paid in 2016 on account of annual bonus for 2015.
(2) Remuneration paid in 2015 on account of annual bonus for 2014.
In 2016 and 2015, the Group did not advance any loans to its key management personnel.
31.6 Transactions with parties related to the Group through members of the Management and Supervisory Boards
In 2016, the Group executed transactions with parties related to it through members of the Management Board and Supervisory Board. The transactions were executed on an arm’s length basis in connection with the Group’s day-to-day operations, and included mainly purchase of civil liability and property insurance policies for a total amount of PLN 9,935 thousand. As at December 31st 2016, unsettled transactions with parties related to the Group through members of the Management and Supervisory Boards totalled PLN 792 thousand.
In the comparative period, the Group did not execute any material transactions with parties related to it through members of the Management and Supervisory Boards.