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:
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 |
|
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:
|
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 % |
|
|
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 |