37. Other Non-Current and Current Provisions

Other Non-Current and Current Provisions

 

 

Non-current

 

Current

 

Total

in € thousand

 

31.12.2017

 

31.12.2016

 

31.12.2017

 

31.12.2016

 

31.12.2017

 

31.12.2016

Demolition obligations

 

72,515

 

70,606

 

0

 

0

 

72,515

 

70,606

Restructuring reserve

 

17,529

 

10,703

 

7,098

 

2,637

 

24,627

 

13,340

Harmonisation of existing pension schemes

 

0

 

0

 

9,145

 

0

 

9,145

 

0

Bonuses and single payments

 

0

 

0

 

7,631

 

7,623

 

7,631

 

7,623

Provisions for contingent losses

 

6,609

 

7,244

 

397

 

2

 

7,006

 

7,246

Insurance excesses

 

0

 

0

 

3,570

 

2,831

 

3,570

 

2,831

Anniversaries

 

2,885

 

2,885

 

290

 

365

 

3,175

 

3,250

Expected increases in rents

 

0

 

0

 

2,328

 

583

 

2,328

 

583

Phased early retirement

 

490

 

495

 

719

 

715

 

1,209

 

1,210

Legal fees and litigation expenses

 

631

 

641

 

0

 

0

 

631

 

641

Other

 

12,234

 

10,070

 

3,407

 

2,956

 

15,641

 

13,026

 

 

112,893

 

102,644

 

34,585

 

17,712

 

147,478

 

120,356

Demolition Obligations

The demolition obligations relate to HHLA’s Container, Logistics and Real Estate segments and are discounted at a rate of 2.0 % p.a. (previous year: 2.0 % p.a.). In the reporting year, an anticipated price increase of 2.0 % (previous year: 2.0 %) was used to calculate the provisions shown. This rate is derived from the German construction cost index. The outflow of these resources is expected in the period 2025–2036.

Restructuring Provisions

The restructuring provisions relate to reorganising the Logistics segment and organisational restructuring in the Container segment. The outflow of funds will take place between 2018 and 2025.

Harmonisation of Existing Pension Schemes

The provisions include obligations resulting from the harmonisation of existing pension schemes. The provisions were set up for the planned replacement of part of the existing pension obligations and the transfer of the existing funds from the working lifetime accounts to the new pension scheme. The funds will become payable in the 2018 financial year.

Bonuses and Single Payments

Provisions for bonuses and one-off payments largely consist of provisions for Executive Board members and other senior staff. The funds will become payable in the 2018 financial year.

Provisions for Impending Losses

The provisions for impending losses relate to expenses arising from an onerous lease for a terminal site. The outflow of these resources is expected to take place in the period 2018–2039.

Insurance Excesses

This obligation relates to provisions largely created by the Group’s parent company to allow for potential cases of damage or loss which go beyond the existing insurance cover. The funds will become payable in the 2018 financial year.

Anniversaries

The provisions for anniversaries relate to Group employees’ contractual entitlement to anniversary gratuities. The amount recognised is determined by an actuarial opinion. A discount rate of 1.40 % p. a. (previous year: 1.40 % p. a.) was used for the calculation. The outflow of these resources is expected to take place in the period 2018–2057.

Expected Increases in Rents

The provision for expected increases in rents was formed for future changes in rents. The funds will become payable in the 2018 financial year.

Phased Early Retirement

Provisions for phased early retirement consist of HHLA’s obligations from the entitlements accrued during the beneficiaries’ working period, plus a supplementary amount added pro rata temporis.

The securities holdings acquired in connection with phased early retirement contracts are classified as plan assets under IAS 19 (revised 2011). They were therefore offset against the phased early retirement obligations included in the provisions. The corresponding figure of € 392 thousand (previous year: € 3,116 thousand) therefore reduces the provisions reported, see Note 26. In addition to this, pledged bank balances serve to cover the obligation in existence as of the balance sheet date. The amount of the provision was determined using a discount rate of 0.0 % p. a. (previous year: 0.0 % p. a.). The outflow of these resources is expected to take place in the period 2018–2025.

Legal Fees and Litigation Expenses

As of the balance sheet date and as in the previous year, the obligations reported consisted mainly of provisions for legal risks associated with pending proceedings. The outflow of these resources is due between 2019 and 2020.

Other

Other provisions relate largely to obligations arising from individual contractual agreements with members of staff. The main outflow of funds will take place between 2018 and 2028.

Development of Other Non-Current and Current Provisions

in € thousand

 

01.01.2017

 

Additions

 

Accured interest

 

Used

 

Reversed

 

Currency translation effects

 

31.12.2017

Demolition obligations

 

70,606

 

1,771

 

1,308

 

0

 

1,170

 

0

 

72,515

Restructuring reserve

 

13,340

 

15,902

 

49

 

3,770

 

894

 

0

 

24,627

Harmonisation of existing pension schemes

 

0

 

9,145

 

0

 

0

 

0

 

0

 

9,145

Bonuses and single payments

 

7,623

 

7,631

 

0

 

7,228

 

395

 

0

 

7,631

Provisions for contingent losses

 

7,246

 

0

 

206

 

399

 

440

 

393

 

7,006

Insurance excesses

 

2,831

 

2,227

 

0

 

1,406

 

82

 

0

 

3,570

Anniversaries

 

3,250

 

250

 

45

 

370

 

0

 

0

 

3,175

Expected increases in rents

 

583

 

1,937

 

0

 

77

 

115

 

0

 

2,328

Phased early retirement

 

1,210

 

1,454

 

0

 

1,455

 

0

 

0

 

1,209

Legal fees and litigation expenses

 

641

 

11

 

0

 

19

 

2

 

0

 

631

Other

 

13,026

 

6,886

 

23

 

2,662

 

1,647

 

15

 

15,641

 

 

120,356

 

47,214

 

1,631

 

17,386

 

4,745

 

408

 

147,478