Balance Sheet Disclosures


37. Other Liabilities

Breakdown of Other Liabilities
in million €Remaining term31 Dec. 2017
Remaining term31 Dec. 2016
Up to 1 yearMore than 1 yearUp to 1 yearMore than 1 year
Prepayments received on account of orders508.90.0508.9497.60.0497.6
Liabilities from advance travel services201.60.0201.6187.90.0187.9
Liabilities from other taxes157.80.2158.0201.50.0201.5
Provisions with the nature of a liability126.20.0126.2134.20.0134.2
Unfavourable contracts10.3109.1119.46.480.186.5
Liabilities from merchandise/gift vouchers89.
Liabilities from customer loyalty programmes87.
Occupancy costs63.
Mutual indemnity society40.80.040.839.50.039.5
Deferred income24.014.438.420.612.733.3
Liabilities from prepayments and security deposits9.
Liabilities to cities and municipalities
(excluding taxes)

Prepayments received on account of orders are primarily recorded in the Travel and Tourism business segment. They comprise deferred performance by tour operators for travel to be completed after the balance sheet date.

Liabilities from advance travel services relate primarily to outstanding invoices for third-party services that the tour operators use for their own travel products and that had not been billed by the service providers as at the balance sheet date.

Liabilities from other taxes relate primarily to value-added tax as well as payroll and church tax. The decrease was due mainly to the reduction in VAT liabilities at RZF. 

The various provisions with the nature of a liability were recognised for, among other things, agent commissions, lease obligations, administrative expenses and deferred income for power and gas invoices.

Liabilities from contracts are recognised for contracts assumed in the context of a business combination, if their contractual conditions were less favourable than the market conditions at the time of acquisition. Liabilities for unfavourable contracts are paid down on a straight-line basis over the remaining term of the underlying contract. The increase in this line item was the result of the first-time inclusion of the Kaiser's Tengelmann Group and REWE Dortmund SE & Co. KG, Dortmund (see also note 4 "Acquisitions").

Deferred income liabilities contain, among others, building cost subsidies and deferred service fees.