Income Statement Disclosures
|in million €||2017||2016|
|Expenses for rents and leases||1,818.4||1,702.7|
|Other occupancy costs||880.0||810.4|
|Expenses from supplementary payments for goods traffic||787.2||760.0|
|Expenses for maintenance and consumables||732.5||715.7|
|Vehicle fleet, freight||655.9||576.6|
|Expenses for third-party services||516.7||476.6|
|General and administrative expenses||305.8||305.9|
|Voluntary social benefits||113.2||101.7|
|Addition to provision for contingent losses from onerous contracts||66.4||109.7|
|Contributions, fees and duties||54.6||30.7|
|CRS communication, IT (Travel and Tourism)||50.0||48.2|
|Losses on writedowns on receivables||39.8||31.8|
|Losses on the disposal of non-current assets||36.4||49.7|
|Other personnel expenses||26.1||23.1|
|Miscellaneous other operating expenses||305.5||308.1|
The increase in other operating expenses is due primarily to an increase in rental and leasing expenses, expenses for the vehicle fleet and freight, other occupancy costs and advertising expenses. Some of these services are closely related to the corresponding items of operating income. By contrast, expenses relating to the additions to the provision for expected losses from onerous contracts and expenses relating to the disposal of non-current assets decreased.
The increase in rental and lease expenses and other occupancy costs related mainly to the Retail Germany business segment. The increase was due, among other things, to the inclusion of the Supermärkte Nord companies and REWE Dortmund SE & Co. KG, Dortmund. In addition, the increase in rental and lease expenses resulted from the increase in the number of leased properties which were sub-leased to partners.
The expenses for the vehicle fleet and freight increased primarily in the Retail Germany and National Specialist Stores business segments. The increase in the Retail Germany business segment resulted among other things from the increase in the use of third-party logistics services in the context of expanding the Group’s business activities and the inclusion of the Supermärkte Nord companies.
Advertising expenses increased primarily in the Retail Germany business segment due to an increase in radio and television advertising, advertising in the print media and marketing materials and the inclusion of the Supermärkte Nord companies. At the same time, there was a decrease in expenses in the Other and Travel and Tourism business segments, although this decrease did not offset the increase in expenses.
For third-party services, expenses for outside staffing in the Other, Retail Germany and Retail International business segments saw the primary increases. The Other business segment made greater use of outside staffing, especially for IT and digital services. At the same time, there was a decrease in expenses in the Travel and Tourism business segment.
The increase in contributions, fees and duties includes the risk provisions for the duties to be paid in the Retail International business segment.
The increase in allowances on receivables related mainly to the Travel and Tourism business segment and were due to write downs on receivables of an airline.
The decrease in additions to the provision for expected losses from onerous contracts is primarily attributable to the Retail Germany and National Specialist Stores business segments.
In particular in the Retail Germany and Other business segments, there were losses in the previous year relating to the disposal of non-current assets.