37. Other Non-Current and Current Provisions

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.