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Annual Report & Accounts 2016 - Notes
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83 3. OPERATING COSTS CONTINUED 3.2 Exceptional items 2016 €m 2015 €m Professional fees 18.8 13.5 Currency option, including fair value adjustment (see note 3.2.1) 10.8 9.5 Bonuses and share options (see note 3.2.2) 21.9 - ACQUISITION COSTS 51.5 23.0 Premium listing application costs 4.4 - Romanian back taxes and license fees - 1.2 Reorganisation costs 14.4 - Contract termination costs 11.7 - Accelerated depreciation 12.5 - Progressive jackpots 7.6 - Release of contingent consideration 8.1 - Foreign exchange on deposit 16.4 - Profit on disposal of joint venture and available for sale investment (11.7) - Other 2.9 0.3 TOTAL EXCEPTIONAL ITEMS 117.8 24.5 3.2.1 Currency option A currency option was taken out in 2015, in order to meet the cash confirmation requirements of the offer for bwin.party. Under the terms of the contract, the Group would sell €365.0m and buy £260.7m. Hedge accounting was not applied. The derivative, recognised as a current liability, was valued at 31 December 2015 at €9.9m. The option was exercised on 2 February 2016. The movement in exchange rate between 31 December 2015 and 2 February 2016 created an additional fair value loss of €0.9m. The combined cost of the instrument of €10.8m (being its fair value on the date of extinguishment) has been recognised as an exceptional item above, as this is related to the financing of the acquisition. At 31 December 2016 there were no other forward exchange contracts taken out in the ordinary course of business. The cost of forward exchange options during the year is included within administrative costs and not treated as an exceptional cost. 3.2.2 Transaction bonuses and share options 2016 €m 2015 €m 2014 share option plan rolled into share placing1 18.4 - Transaction bonuses rolled into share placing2 3.0 - Other transaction bonuses 0.5 - 21.9 - 1. Includes employer's National Insurance. See pages 322 to 325 of the prospectus. 2. Includes employer's National Insurance. See page 349 of the prospectus.