37. Other non-current and current provisions

Other non-current and current provisions

 

 

Non-current provisions

 

Current provisions

 

Total

in € thousand

 

31.12.2018

 

31.12.2017

 

31.12.2018

 

31.12.2017

 

31.12.2018

 

31.12.2017

Demolition obligations

 

74,417

 

72,515

 

0

 

0

 

74,417

 

72,515

Restructuring reserve

 

14,167

 

17,529

 

7,456

 

7,098

 

21,623

 

24,627

Bonuses and single payments

 

0

 

0

 

8,036

 

7,631

 

8,036

 

7,631

Provisions for contingent losses

 

5,919

 

6,609

 

371

 

397

 

6,290

 

7,006

Expected increases in rents

 

0

 

0

 

3,808

 

2,328

 

3,808

 

2,328

Insurance excesses

 

0

 

0

 

3,156

 

3,570

 

3,156

 

3,570

Anniversaries

 

2,808

 

2,885

 

281

 

290

 

3,089

 

3,175

Legal fees and litigation expenses

 

620

 

631

 

0

 

0

 

620

 

631

Phased early retirement

 

149

 

490

 

308

 

719

 

457

 

1,209

Harmonisation of existing pension schemes

 

0

 

0

 

0

 

9,145

 

0

 

9,145

Other

 

12,058

 

12,234

 

4,629

 

3,407

 

16,687

 

15,641

 

 

110,138

 

112,893

 

28,045

 

34,585

 

138,183

 

147,478

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 2019 and 2025.

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 2019 financial year.

Provisions for impending losses

The provisions for impending losses relate to expenses arising from an onerous lease for a site. The outflow of these resources is expected to take place in the period 2019–2039.

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 2019 financial year.

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 2019 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 1.60 % 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 2019–2057.

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 2020 and 2021.

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 19 (revised 2011). They were therefore offset against the phased early retirement obligations included in the provisions. The corresponding figure of € 316 thousand (previous year: € 392 thousand) therefore reduces the provisions reported, see Note 26. In addition to this, pledged bank balances serve to cover the obligations 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 2019–2025.

Harmonisation of existing pension schemes

The provision formed in the previous year comprises obligations arising from the harmonisation of existing pension schemes and was set up for the planned replacement of part of the existing pension obligations in the year under review and the transfer of existing funds from working lifetime accounts to the HHLA capital plan. The outflow of funds and the transfer to pension obligations took place in the 2018 financial year, see Note 36.

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 2019 and 2028.

Development of other non-current and current provisions

in € thousand

 

01.01.2018

 

Additions

 

Transfer capital plan

 

Accured interest

 

Used

 

Reversed

 

Currency translation effects

 

31.12.2018

Demolition obligations

 

72,515

 

883

 

 

 

1,469

 

248

 

202

 

 

 

74,417

Restructuring reserve

 

24,627

 

3,719

 

 

 

64

 

3,225

 

3,562

 

 

 

21,623

Bonuses and single payments

 

7,631

 

8,036

 

 

 

 

 

7,166

 

465

 

 

 

8,036

Provisions for contingent losses

 

7,006

 

 

 

 

 

188

 

389

 

317

 

- 198

 

6,290

Expected increases in rents

 

2,328

 

2,034

 

 

 

 

 

360

 

194

 

 

 

3,808

Insurance excesses

 

3,570

 

1,911

 

 

 

 

 

2,245

 

80

 

 

 

3,156

Anniversaries

 

3,175

 

169

 

 

 

44

 

299

 

 

 

 

 

3,089

Legal fees and litigation expenses

 

631

 

 

 

 

 

 

 

11

 

 

 

 

 

620

Phased early retirement

 

1,209

 

764

 

 

 

 

 

1,516

 

 

 

 

 

457

Harmonisation of existing pension schemes

 

9,145

 

 

 

- 3,114

 

 

 

4,323

 

1,708

 

 

 

0

Other

 

15,641

 

4,822

 

 

 

24

 

3,728

 

81

 

9

 

16,687

 

 

147,478

 

22,338

 

- 3,114

 

1,789

 

23,510

 

6,609

 

- 189

 

138,183

Terminal

In maritime logistics, a terminal is a facility where freight transported by various modes of transport is handled.

IAS

International Accounting Standards.