37. Other non-current and current provisions

Other non-current and current provisions

 

 

Non-current provisions

 

Current provisions

 

Total

in € thousand

 

31.12.2020

 

31.12.2019

 

31.12.2020

 

31.12.2019

 

31.12.2020

 

31.12.2019

Demolition obligations

 

86,490

 

83,100

 

0

 

0

 

86,490

 

83,100

Restructuring reserve

 

52,883

 

15,475

 

8,551

 

6,030

 

61,434

 

21,505

Bonuses and single payments

 

0

 

0

 

9,220

 

8,832

 

9,220

 

8,832

Insurance excesses

 

0

 

0

 

4,073

 

2,496

 

4,073

 

2,496

Anniversaries

 

3,496

 

3,262

 

241

 

167

 

3,737

 

3,429

Legal fees and litigation expenses

 

0

 

0

 

1,110

 

620

 

1,110

 

620

Phased early retirement

 

98

 

81

 

90

 

67

 

188

 

148

Other

 

12,691

 

12,175

 

2,296

 

5,793

 

14,987

 

17,968

 

 

155,658

 

114,093

 

25,581

 

24,005

 

181,239

 

138,098

Demolition obligations

The demolition obligations relate to HHLA’s Container, Logistics and Real Estate segments and are discounted at a rate of 1.5 % p.a. (previous year: 1.5 % 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 2025–2045.

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 2021 and 2031. For further information on the additions, please refer to Note 13.

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 2021 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 2021 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 0.20 % p.a. (previous year: 0.70 % p.a.) was used for the calculation. The outflow of these resources is expected to take place in the period 2021–2060.

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 expected in the 2021 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 19 (revised 2011). They were therefore offset against the phased early retirement obligations included in the provisions. The corresponding figure of € 143 thousand (previous year: € 173 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 - 0.2 % p.a. (previous year: - 0.2 % p.a.). The outflow of these resources is expected in the period 2021–2026.

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 2021 and 2028.

Development of other non-current and current provisions

in € thousand

 

01.01.2020

 

Additions

 

Accured interest

 

Used

 

Reversed

 

Currency translation effects

 

31.12.2020

Demolition obligations

 

83,100

 

3,093

 

977

 

421

 

258

 

 

 

86,490

Restructuring reserve

 

21,505

 

44,376

 

5

 

3,130

 

1,323

 

 

 

61,434

Bonuses and single payments

 

8,832

 

9,220

 

 

 

8,543

 

289

 

 

 

9,220

Insurance excesses

 

2,496

 

2,276

 

 

 

676

 

22

 

 

 

4,073

Anniversaries

 

3,429

 

595

 

24

 

311

 

 

 

 

 

3,737

Legal fees and litigation expenses

 

620

 

490

 

 

 

 

 

 

 

 

 

1,110

Phased early retirement

 

148

 

303

 

 

 

262

 

 

 

 

 

188

Other

 

17,968

 

4,211

 

6

 

6,873

 

326

 

 

 

14,987

 

 

138,098

 

64,565

 

1,012

 

20,217

 

2,218

 

0

 

181,239

IAS

International accounting standards.