Balance Sheet Disclosures


Development of Other Provisions
in million €As at
1 Jan. 2018
ReclassificationsChanges in scope of consolidationUtilisationsReversalsAdditionsInterest costCurrency differencesReclassifications as liabilities from disposal groups and reclassificationsAs at 31 Dec. 2018
Expected losses from onerous contracts687.7-
Expected losses from lease obligations174.93.40.0-35.0-30.958.
Compensation to customers136.30.00.0-130.5-4.6129.
Restoration costs43.90.00.0-0.7-
Court, litigation, legal consulting costs33.01.30.0-4.3-6.511.60.0-
Other taxes25.00.20.0-10.0-
Other expected losses22.40.00.0-6.9-
Expected losses from equity accounting10.
Provisions for guarantees and courtesy services7.40.00.0-5.1-
Rental risks6.10.00,0-2.0-
Interest on taxes6.30.00,0-0.4-
Miscellaneous other provisions245.1-1.00.6-82.2-

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, provided this relates to established stores, i.e. stores that have been in operation for four years and that do not fall under the definition of an expansion, new or developing store or a store slated for closure. In 2018, 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 1.5 million euros higher (previous year: 0.2 million euros lower) (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.

Breakdown of Expected Maturities of Other Provisions
in million €
Expected maturity
31 Dec. 201831 Dec. 2017
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 contracts92.5253.4158.1504.0118.9326.2242.6687.7
Expected losses from lease obligations30.766.774.0171.437.973.064.0174.9
Compensation to customers130.90.00.0130.9136.30.00.0136.3
Restoration costs4.811.226.642.64.710.728.543.9
Court, litigation, legal consulting costs26.
Other taxes28.
Other expected losses21.
Expected losses from equity accounting14.
Provisions for guarantees and courtesy services6.
Rental risks6.
Interest on taxes3.
Miscellaneous other provisions183.711.413.3208.4221.813.59.8245.1