28. Other provisions

In € thousand

31/12/2016

31/12/2015

Defined benefit obligations

599,641

600,394

Other provisions

199,096

196,049

Total

798,737

796,442

Defined benefit obligations

In € thousand

Defined benefit obligations for pensions

Plan assets at fair value

Net defined benefit obligations for pensions

Defined benefit obligations for termination benefits

Total defined benefit obligations

At 1 January 2016

501,883

–77,246

424,637

175,757

600,394

Current service costs

16,183

0

16,183

6,837

23,020

Interest expense/income

9,720

0

9,720

2,162

11,882

Past service costs

1,582

0

1,582

1

1,584

Components of defined benefit obligations recognised in the income statement

27,485

0

27,485

9,001

36,485

 

 

 

 

 

 

Return on plan assets recognised in other comprehensive income

0

460

460

8

468

Actuarial gains and losses that arise from changes in demographic assumptions

0

0

0

273

273

Actuarial gains and losses that arise from changes in financial assumptions

–3,398

0

–3,398

5,613

2,215

Actuarial gains and losses that arise from experience adjustments

8,661

0

8,661

–4,011

4,650

Other comprehensive income

5,263

460

5,723

1,883

7,606

 

 

 

 

 

 

Changes from currency translation

–16

0

–16

–2

–17

Payments

–21,006

0

–21,006

–12,862

–33,867

Contribution to plan assets

0

–11,103

–11,103

0

–11,103

Transfer in

1

0

1

1,952

1,953

Transfer out

–12,213

12,277

64

–222

–158

Change in basis of consolidation

0

0

0

0

0

 

0

0

0

–1,652

–1,652

At 31 December 2016

501,397

–75,612

425,785

173,856

599,641

In € thousand

Defined benefit obligations for pensions

Plan assets at fair value

Net defined benefit obligations for pensions

Termination benefits

Total defined benefit obligations

At 1 January 2015

503,899

–71,492

432,407

179,263

611,670

Current service costs

18,026

0

18,026

7,164

25,189

Interest expense/income

12,264

–1,829

10,436

3,697

14,133

Past service costs

–47,782

0

–47,782

–13,398

–61,180

Components of defined benefit obligations recognised in the income statement

–17,492

–1,829

–19,321

–2,537

–21,858

 

 

 

 

 

 

Return on plan assets recognised in other comprehensive income

0

–409

–409

0

–409

Actuarial gains and losses that arise from changes in demographic assumptions

0

0

0

147

147

Actuarial gains and losses that arise from changes in financial assumptions

33,519

0

33,519

16,434

49,953

Actuarial gains and losses that arise from experience adjustments

11,008

0

11,008

–2,701

8,307

Other comprehensive income

44,527

–409

44,118

13,881

57,999

 

 

 

 

 

 

Changes from currency translation

1

0

1

0

1

Payments

–21,900

0

–21,900

–16,786

–38,687

Contribution to plan assets

0

–6,261

–6,261

0

–6,261

Transfer in

0

0

0

458

458

Transfer out

–7,772

2,728

–5,044

–461

–5,505

Change in basis of consolidation

620

17

637

1,940

2,577

At 31 December 2015

501,883

–77,246

424,637

175,757

600,394

The plan assets for the defined benefit obligations are comprised as follows:

In per cent

31/12/2016

31/12/2015

Listed

Not listed

Listed

Not listed

Bonds - euro

17.7

0.3

28.8

0.0

Bonds - euro high yield

7.3

0.4

4.4

2.3

Corporate bonds - euro

22.0

1.7

19.6

2.2

Equities - euro

11.7

0.0

7.4

0.0

Equities - non-euro

7.1

0.0

5.9

0.0

Equities - emerging markets

5.5

0.1

0.3

0.0

Alternative investment instruments

2.7

0.0

1.3

0.0

Land and buildings

0.0

0.0

0.0

1.6

Cash

0.1

19.2

0.0

10.1

HTM bonds / term deposits

4.2

0.0

16.1

0.0

Total

78.3

21.7

83.8

16.2

The measurement of the defined benefit obligations is based on the following actuarial calculation parameters:

Calculation factors applied

In per cent

2016

2015

Discount rate

 

 

Termination benefit obligations

0.9

1.3

Pensions

1.6

2.0

Valorisation of remuneration

3.0

3.0

Valorisation of pensions

2.0

2.0

Employee turnover rate

dependent on years of service

dependent on years of service

Calculation principles

AVÖ 2008 P – Pagler & Pagler/ - salaried employees

AVÖ 2008 P – Pagler & Pagler/ - salaried employees

Weighted average duration in years

 

Pensions

Termination benefits

31/12/2016

14.4

8.3

31/12/2015

13.8

8.4

Investment risk

The cash value of the defined benefit obligations is calculated using a discount rate which is determined based on the returns from high-quality corporate bonds. There will be a deficit if the changes in the plan assets fall below these returns. The plans for the different benefit obligations include a diversified mix of securities. These primarily include annuities, corporate bonds, equities and other equity instruments, etc. By reducing the duration of the plans, the Group intends to reduce the investment risk by continuously adjusting the portfolio of assets to the requirements of the defined benefit plans.

Interest rate change risk

A fall in the return on corporate bonds results in an increase in the cash value of the defined benefit obligations. However, this effect is absorbed in part by the increase in the plan assets or by higher income from the plan assets.

Life expectancy

The cash value of the benefit obligations from pensions is heavily dependent inter alia on the life expectancy of the beneficiaries. An increase in the life expectancy of the beneficiaries results in an increase in the defined benefit obligations.

Salary risk

The cash value of the defined benefit obligations is ascertained based on the future salaries of the beneficiaries. In this respect, any salary increases result in an increase in the defined benefit obligations. The majority of the assets from the plan assets are not indexed to any rates of inflation or salary increase.

The sensitivity of the defined benefit obligations on changes in the weighted actuarial calculation parameters is:

Sensitivity analysis 2016

 

Pensions

Termination benefits

Remaining life expectancy

 

 

Change in DBO (+1 year)

3.4 %

 

Change in DBO (–1 year)

–3.6 %

 

Discount rate

 

 

Change in DBO (+1 %)

–11.8 %

–7.8 %

Change in DBO (–1 %)

14.7 %

8.9 %

Future salary increase rate

 

 

Change in DBO (+0.75 %)

1.4 %

6.4 %

Change in DBO (–0.75 %)

–1.4 %

–5.9 %

Future pension increase rate

 

 

Change in DBO (+0.25 %)

3.0 %

 

Change in DBO (–0.25 %)

–2.9 %

 

Sensitivity analysis 2015

 

Pensions

Termination benefits

Remaining life expectancy

 

 

Change in DBO (+1 year)

3.2 %

 

Change in DBO (–1 year)

–3.4 %

 

Discount rate

 

 

Change in DBO (+1 %)

–11.9 %

–7.1 %

Change in DBO (–1 %)

14.8 %

9.0 %

Future salary increase rate

 

 

Change in DBO (+0.75 %)

1.6 %

5.9 %

Change in DBO (–0.75 %)

–1.5 %

–6.0 %

Future pension increase rate

 

 

Change in DBO (+0.25 %)

3.0 %

 

Change in DBO (–0.25 %)

–2.9 %

 

Under the defined contribution company pension scheme, the employer pays the fixed amounts into company pension funds. The employer has satisfied their obligation by making these contributions.

In € thousand

1-12/2016

1-12/2015

Contributions to company pension funds

2,011

2,048

Other provisions

In € thousand

Provisions for jubilee benefits

Customer services and marketing provision

Provision for legal and consulting expenses

Provision for premium adjustment of reinsurance contracts

Provision for portfolio maintenance commission

Miscellaneous other provisions

Total

At 1 January 2015

14,884

75,763

7,948

7,911

3,174

80,487

190,167

Additions

1,414

73,879

2,504

2,768

1,792

61,708

144,066

Reversal of unused provisions

–917

–3,137

–2,099

–3

0

–19,860

–26,017

Addition due to unwinding of the discount

321

0

0

0

0

0

321

Change in basis of consolidation

0

0

–1

0

0

1,691

1,690

Reclassifications

0

2

0

0

0

–2

0

Use in current year

–10

–71,219

–2,932

–4,853

–1,023

–34,171

–114,208

Foreign exchange differences

0

–10

0

7

57

–23

30

At 31 December 2015

15,692

75,279

5,420

5,829

4,000

89,830

196,049

At 1 January 2016

15,692

75,279

5,420

5,829

4,000

89,830

196,049

Additions

1,162

79,268

712

1,610

3,437

78,829

165,017

Reversal of unused provisions

0

–1,738

–428

–78

–1

–18,098

–20,344

Addition due to unwinding of the discount

144

0

0

0

0

0

144

Change in basis of consolidation

342

0

32

0

0

–4,389

–4,015

Reclassifications

0

–3

0

0

0

603

600

Use in current year

–1,805

–64,621

–2,344

–3,908

–3,729

–52,674

–129,081

Foreign exchange differences

0

81

–19

0

0

10

72

Reclassifications held for sale

0

–306

–1,480

0

0

–7,561

–9,347

At 31 December 2016

15,535

87,960

1,894

3,452

3,707

86,549

199,096