SECTION 4: WORKING CAPITAL

This section contains the Notes on inventories (see Note 4.1), current trade and other receivables (see Note 4.2) and current trade and other payables (see Note 4.3). The net balance of these items is called working capital.

(Millions of euros)

2016

IFRS 15

EXCHANGE RATE EFFECT

CHANGES IN THE SCOPE OF CONSOL­IDATION

OTHER

2017

Inventories

516

25

-2

1

89

629

Current trade and other receivables

2,822

-304

-69

14

172

2,635

Current trade and other payables

-3,895

-19

89

-5

-391

-4,221

Total

-557

-298

18

10

-130

-957

The early application of IFRS 15 (see Note 4.4) was the main reason for the change in working capital, especially with respect to trade and other receivables, which decreased by EUR 304 million.

Excluding the impact of IFRS 15, the exchange rate effect and the changes in the scope of consolidation, the most noteworthy change is the increase in Current trade and other payables, which is due mainly to the rise in the balance of advances received from customers in the Construction business in 2017.

Section 4.4 includes a more detailed analysis of the items in the consolidated statement of financial position relating to the recognition of revenue from contracts with customers in the Construction and Services businesses, and includes the disclosures required by IFRS 15 in relation to such contracts.

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