33. Other provisions (non-current) / Provisions (current)

In the reporting period, other provisions (non-current)/provisions (current) changed as follows:

€ million

 

Real estate-related obligations

 

Obligations from trade transactions

 

Restructuring

 

Taxes

 

Miscel­laneous

 

Total

As of 1/10/2016

 

180

 

64

 

265

 

20

 

328

 

856

Currency translation

 

−4

 

−1

 

0

 

0

 

−5

 

−11

Addition

 

59

 

76

 

79

 

1

 

130

 

345

Reversal

 

−10

 

−1

 

−28

 

−3

 

−36

 

−78

Utilisation

 

−27

 

−75

 

−116

 

−3

 

−150

 

−372

Change in consolidation group

 

2

 

1

 

1

 

0

 

−9

 

−5

Interest portion of the addition/change in interest rate

 

−1

 

0

 

0

 

0

 

0

 

0

Transfer

 

3

 

−2

 

−1

 

0

 

3

 

3

As of 30/9/2017

 

202

 

62

 

200

 

15

 

260

 

739

Non-current

 

105

 

0

 

56

 

7

 

114

 

283

Current

 

96

 

62

 

144

 

7

 

146

 

456

As of 30/9/2017

 

202

 

62

 

200

 

15

 

260

 

739

Provisions for real estate-related obligations affected rental shortfalls in the amount of €48 million (30/9/2016: €48 million), store-related risks totalling €43 million (30/9/2016: €47 million), rental commitments amounting to €40 million (30/9/2016: €33 million) and reinstatement obligations amounting to €39 million (30/9/2016: €22 million).

Other real estate obligations in the amount of €30 million (30/9/2016: €29 million) stemmed essentially from dismantling and removing obligations.

At €105 million (30/9/2016: €108 million), provisions for real estate are disclosed as non-current provisions.

Significant components of the obligations from trade transactions are provisions for rebates from customer loyalty programmes in the amount of €38 million (30/9/2016: €35 million), provisions for rights of return of €5 million (30/9/2016: €4 million) as well as provisions for warranty services in the amount of €2 million (30/9/2016: €2 million).

Provisions from trade transactions do not contain any non-current components.

Restructuring provisions totalling €200 million (30/9/2016: €265 million) essentially relate to in the amount of €53 million (30/9/2016: €126 million), Real in the amount of €54 million (30/9/2016: €15 million) and other companies in the amount of €93 million (30/9/2016: €125 million).

The long-term portion of provisions for restructuring amounts to €56 million (30/9/2016: €60 million).

Other provisions primarily relate to provisions for litigation costs/risks in the amount of €58 million (30/9/2016: €66 million), provisions for guarantee and warranty risks in the amount of €30 million (30/9/2016: €29 million) and provisions for share-based payments amounting to €28 million (30/9/2016: €34 million). In addition, they include provisions for severance obligations in the amount of €8 million (30/9/2016: €9 million) and for interest on tax provisions in the amount of €9 million (30/9/2016: €4 million).

The long-term portion of other provisions amounts to €114 million (30/9/2016: €122 million).

  • For more information about share-based payments, see no. 49 – long-term incentive for executives.

Transfers essentially concern reclassifications within other provisions.

Depending on the respective term and country, interest rates for non-interest-bearing, non-current provisions range from 0.00% to 4.83%.

Wholesale, METRO Wholesale
The METRO Wholesale segment comprises the METRO Cash & Carry sales line of METRO AG with more than 750 wholesale markets across 25 countries worldwide. The delivery business (food service distribution) is also part of this segment, with companies like METRO Delivery Service and the delivery specialists Classic Fine Foods, Pro à Pro and Rungis Express.
Glossary