34. 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 1/10/2017

 

202

 

62

 

200

 

15

 

260

 

739

Currency translation

 

0

 

−1

 

0

 

0

 

−2

 

−3

Addition

 

43

 

76

 

10

 

6

 

99

 

234

Reversal

 

−19

 

−2

 

−37

 

−8

 

−37

 

−103

Utilisation

 

−40

 

−71

 

−113

 

−1

 

−106

 

−332

Change in consolidation group

 

0

 

0

 

0

 

0

 

0

 

0

Interest portion of the addition/change in interest rate

 

0

 

0

 

0

 

0

 

0

 

1

Reclassification in accordance with IFRS 5

 

−58

 

−42

 

−17

 

0

 

−10

 

−127

Transfer

 

8

 

−1

 

0

 

3

 

−18

 

−9

As of 30/9/2018

 

135

 

21

 

42

 

14

 

187

 

399

Non-current

 

57

 

0

 

5

 

9

 

54

 

126

Current

 

78

 

21

 

37

 

5

 

132

 

274

As of 30/9/2018

 

135

 

21

 

42

 

14

 

187

 

399

Provisions for real estate-related obligations predominantly concern lease liabilities in the amount of €40 million (30/9/2017: €40 million), deficient rental covers amounting to €34 million (30/9/2017: €48 million) and maintenance obligations amounting to €24 million (30/9/2017: €39 million), dismantling and removing obligations amounting to €20 million (30/9/2017: €30 million), as well as store-related risks totalling €15 million (30/9/2017: €43 million).

The reversal in the amount of €19 million results predominantly from the reassessment of risks relating to lease liabilities and store-specific local risks.

The largest component of the provisions for obligations from trade transactions are the other provisions from the products and services segment in the amount of € 17 million (30/9/2017: €16 million), these are predominantly provisions for risks from additional charges billed by suppliers.

Other components are provisions for warranties amounting to €1 million (30/9/2017: €2 million) and provisions for unclaimed rebate credit balances totalling €1 million (30/9/2017: €1 million). €38 million were attributable to customer loyalty programmes in the . The reduction in the provision for customer loyalty programmes is essentially resultant from the reclassification of the hypermarket business into assets held for sale.

The provisions for restructuring amount to €42 million (30/9/2017: €200 million). They concern Germany with €5 million (30/9/2017: €30 million), METRO Wholesale Western Europe (excluding Germany) with €5 million (30/9/2017: €15 million) and other provisions amounting to €32 million (30/9/2017: €93 million).

Significant components of the other provisions include provisions for litigation costs/risks in the amount of €49 million (30/9/2017: €58 million), provisions for long-term remuneration components amounting to €36 million (30/9/2017: €28 million), as well as provisions for risks relating to guarantees and warranties amounting to €23 million (30/9/2017: €30 million). This item further includes provisions for severance payment obligations in the amount of €4 million (30/9/2017: €8 million) and interest on tax provisions amounting to €0 million (30/9/2017: €9 million).

The reversal in the amount of €37 million predominantly results from the short-term portion. It concerns a variety of circumstances for which the risk potential was reassessed.

  • For more information about the long-term remuneration components, see no. 50 – 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 6.48%.

Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Glossary
Wholesale, METRO Wholesale
The METRO Wholesale segment comprises the METRO Wholesale sales line of METRO AG with more than 769 wholesale stores across 35 countries worldwide. This also includes the delivery business (Food Service Distribution) with companies like METRO delivery service and the delivery specialists Classic Fine Foods, Pro à Pro and Rungis Express.
Glossary