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 3.0 % p. a., as in the previous year. In the reporting year, an anticipated price increase of 2.0 % was used to calculate the provisions shown. This rate is derived from the German construction cost index.

The cash outflow of these provisions is expected in the period 2025–2036.

Bonuses and Single Payments

Provisions for bonuses and one-off payments largely consist of provisions for Executive Board members and other senior staff.

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 2.25 % p. a. (previous year: 1.75 % p. a.) was used for the calculation.

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.

Phased Early Retirement

Provisions for phased early retirement obligations 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 € 3,120 thousand (previous year: € 6,903 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: 0.3 % p. a.).

Legal Fees and Litigation Expenses

As of the balance sheet and as in the previous year, the obligations reported as of the balance sheet date consisted mainly of provisions for legal risks associated with pending proceedings.