12/31/2015 | 12/31/2016 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
in € millions | of which > 1 year | Additions | Reversal | Usage | Other effects | Change of consolidation scope | Accrued interest | of which > 1 year | ||
Restructuring | 86 | 7 | 26 | (6) | (53) | 1 | (2) | – | 52 | 3 |
Onerous contracts | 125 | 15 | 111 | (12) | (66) | 2 | (1) | 1 | 160 | 37 |
Litigation | 105 | 57 | 14 | (9) | (6) | (1) | – | – | 103 | 59 |
Guarantees and warranties | 24 | 10 | 4 | (2) | (12) | – | – | – | 14 | 1 |
Sales and distribution | 11 | – | 2 | – | (2) | – | – | – | 11 | – |
Other employee benefits | 29 | – | 4 | (2) | (2) | 2 | – | – | 31 | 1 |
Other | 88 | 33 | 29 | (21) | (15) | (5) | 3 | 1 | 80 | 35 |
468 | 122 | 190 | (52) | (156) | (1) | – | 2 | 451 | 136 |
In accordance with IAS 37, restructuring provisions include termination benefits and other costs relating to the discontinuation of business activities. Provisions in the amount of €52 million (previous year: €86 million) are recognized for various restructuring programs within the Bertelsmann Group. In the financial year 2016, the amount was reduced due to utilization of provisions for restructuring, including for structurally declining businesses such as print, replication, clubs and direct marketing.
The provisions for onerous contracts concern RTL Group in the amount of €107 million (previous year: €93 million) and were recognized mainly for program rights, including sports events in the amount of €22 million (previous year: €7 million). A total of €64 million (previous year: €49 million) relates to Mediengruppe RTL Deutschland and another €42 million (previous year: €41 million) to Groupe M6. Additions related to provisions for onerous contracts total €52 million for movies and series and €21 million for sports events. A provision for onerous contracts for existing lease agreements was recognized in the amount of €25 million in the Penguin Random House division due to consolidation of its three New York locations.
Provisions for litigation totaling €90 million (previous year: €92 million) also pertain mainly to RTL Group companies. They cover expected losses from partly multiannual court proceedings and extrajudicial disputes. Please refer to the risk report in the Combined Management Report for information on antitrust litigation.
The other provisions include a provision in the amount of €26 million (previous year: €27 million) for compensation obligations from pension entitlements for employees at the Prinovis location in Ahrensburg toward Axel Springer SE.