Balance Sheet Disclosures


34. Other Provisions

Development of Other Provisions
in million €As at 1 Jan. 2017Re-
Changes in scope of consoli-
AdditionsInterest costCurrency differen-
As at 31 Dec. 2017
Expected losses from onerous contracts764.8-
Expected losses from lease obligations141.824.818.6-24.6-
Compensation to customers159.7-1.60.0-148.7-5.9132.80.00.0136.3
Restoration costs43.30.92.1-1.5-3.62.8-
Court, litigation, legal consulting costs38.60.00.0-4.0-
Other taxes35.90.10.0-12.7-7.310.60.0-1.625.0
Other expected losses28.40.01.0-13.5-4.311.20.0-0.422.4
Expected losses from equity accounting14.30.00.0-1.7-
Provisions for guarantees and courtesy services8.90.00.0-5.4-
Interest on taxes29.8-0.20.0-23.4-
Rental risks6.30.00.0-2.3-
Miscellaneous other provisions229.5-20.10.1-68.7-21.8126.00.00.1245.1

A provision for location-specific onerous contracts was recognised in the amount of the current contractual obligation. In this context, contracts are classified as onerous contracts if the unavoidable costs of meeting the obligations under the contract exceed the expected economic benefits. In 2017, provisions for onerous contracts in Germany were discounted at an interest rate of 0.0 per cent (previous year: 0.0 per cent). Country-specific interest rates were used abroad. If the interest rate had remained unchanged compared with the previous year, provisions would have been 0.2 million euros lower (previous year: 2.4 million euros) (interest rate sensitivity). The reduction in provisions related mainly to the Retail Germany business segment. Despite the difficult market environment, it was possible to reduce the risk provisions.

Provisions for expected losses from lease obligations relate to lease deficits that arise because leased properties could not be subleased or could only be subleased at rates that do not cover costs. 

Provisions for compensation to customers include compensation agreements not yet settled as at the balance sheet date.

Provisions for interest and taxes declined in particular due to a reduction in trade tax arrears. 

Breakdown of Expected Maturities of Other Provisions
in million €
Expected maturity
31 Dec. 201731 Dec. 2016
Up to 1 yearBetween 1 and 5 yearsAfter more than 5 yearsTotalUp to 1 yearBetween 1 and 5 yearsAfter more than 5 yearsTotal
Expected losses from onerous contracts118.9326.2242.6687.7131.2419.2214.4764.8
Expected losses from lease obligations37.973.064.0174.935.553.652.7141.8
Compensation to customers136.30.00.0136.3159.70.00.0159.7
Restoration costs4.710.728.543.96.610.626.143.3
Court, litigation, legal consulting costs23.
Other taxes25.
Other expected losses22.
Expected losses from equity accounting10.
Provisions for guarantees and courtesy services6.
Interest on taxes6.
Rental risks6.
Miscellaneous other provisions221.813.59.8245.1207.910.910.7229.5