the other provisions mainly include provisions for anticipated but as yet unannounced increases in rents of € 4,154 thousand (2007: € 3,593 thousand), legal fees and litigation expenses of € 1,467 thousand (2007: € 1,529 thousand), for insurance excesses of € 1,759 thousand (2007: € 1,033 thousand), for guarantees of € 1,065 thousand (2007: € 728 thousand), for benefits to retired and former employees of € 378 thousand (2007: € 376 thousand), and other long-term provi- sions totalling € 6,966 thousand (2007: € 2,831 thousand). overall, an outflow of € 9,622 thousand is expected within one year.
37. Current and non-current financial liabilities
the following table gives the details of current and non-current financial liabilities:the liabilities from bank loans include interest of € 4,058 thousand (2007: € 4,087 thousand) accrued up to the balance sheet date and bank overdraft facilities totalling € 0.4 thousand (2007: € 282 thousand).
the liabilities towards employees consist primarily of wages and salaries and holiday entitlement.
The other financial liabilities include reimbursements for cus- tomers and liabilities to shareholders outside the Group.
the following tables show the terms of the liabilities from bank loans:
In € thousanD 31.12. 2008
Up to 1 year 1 to 5 year Over 5 years Total
liabilities from bank loans 33,274 127,547 139,402 300,223
liabilities towards employees 10,582 0 0 10,582
other loans 0 1,451 0 1,451
Finance lease liabilities 4,286 13,434 2,790 20,510
negative fair values of exchange and interest rate hedges 860 1,302 0 2,162
Other financial liabilities 14,142 1,759 863 16,764
63,144 145,493 143,055 351,692
In € thousanD 31.12. 2007
Up to 1 year 1 to 5 years Over 5 years Total
liabilities from bank loans 31,871 75,479 178,983 286,333
liabilities towards employees 10,823 0 0 10,823
other loans 0 1,806 0 1,806
Finance lease liabilities 3,441 13,312 5,026 21,779
negative fair values of exchange and interest rate hedges 137 0 0 137
Other financial liabilities 13,015 2,497 2,407 17,919
notes
The floating interest rates are EURIBOR or PRIBOR rates with ma- turities of one to six months.
The fair value of financial liabilities for which fair value is not equivalent to carrying amount are as follows:
Interest rates of 3.8 % to 4.8 % p.a. (2007: 5.0 % to 5.6 % p.a.) were used to measure the fair value of fixed interest-bearing loans. The interest rates are derived from the risk-free rate depending on ma- turity plus a premium according to the credit rating. they therefore constitute market rates.
For details on finance lease liabilities please refer to Note 41 on finance leases.
Buildings, surfacing and movable items of non-current assets carried at € 20,126 thousand (€ 12,830 thousand) have been pledged as collateral for interest-bearing loans. the collateral agreements provide that the assets are transferred to the banks until the loans and interest have been repaid in full and that they have a right to dispose of the assets if the borrower is in arrears with payments of interest and principal.
other bank loans amounting to € 23,648 thousand (2007: € 10,737 thousand) are secured by land charges enforceable with- out further proceedings.
the variable interest rates are partly hedged by interest rate hedges. Please refer to the comments on derivative financial instruments.
as of the balance sheet date, the terms of loan agreements (financial covenants) in the Intermodal segment in respect of the equity ratio had not been complied with. the loans in question were worth € 20,930 thousand as of 31 December 2008. the lender could have demanded the early repayment of the loan obligation on grounds of this infringement. the lender has declared that he will make no use of this right. It was additionally agreed with the lender that the financial covenants are to be adjusted. This means that demanding the early repayment of the loan obligation will no longer be possible.
38. Trade liabilities
Trade liabilities from the financial year are only owed to third parties. as in the previous year the total amount is due within one year.
39. Other liabilities
other liabilities are made up as follows:
Currency Interest condition Remaining fixed interest period Interest rate Nominal value Carrying amount as of 31.12. 2008 in € thousand € thousand fixed 2017 5.67 % 3,579 1,611 € thousand fixed 2016 5.61 % 30,000 24,000 € thousand fixed 2015 4.23 % 25,000 25,000 € thousand fixed 2012 5.15 – 5.55 % 83,624 61,412 € thousand fixed 2011 4.60 – 5.31 % 54,881 35,317 € thousand fixed 2010 5.66 % 16,873 14,848 CZK thousand fixed 2010 4.00 % 35,000 256 € thousand fixed 2009 3.10 – 4.52 % 22,184 13,091
€ thousand floating 2009 floating + margin 135,090 120,569
CZK thousand floating 2009 floating + margin 32,000 61
296,165
In € thousanD 31.12. 2008 31.12. 2007
Carrying
amount
Fair value Carrying amount
Fair value Fixed interest-
notes
all liabilities have a remaining term of up to one year.
the public subsidies include € 13,598 thousand (2007: € 3,435 thousand) in preliminary funding in connection with the promotion of intermodal transport. this will be deducted from the acquisition cost capitalized for the subsidized investments following an audit to confirm that all the requirements have been met.
There is sufficient certainty that all the conditions have been or will be fulfilled for the public subsidies to promote intermodal transport totalling € 16,754 thousand which were paid to hhla in the period between 2001 and 2007. these subsidies have therefore already been deducted from the cost of purchasing the subsidized investments. the conditions for the subsidies include obligations to operate the subsidized equipment for a retention period of five to 20 years, observe certain operating criteria and provide the subsidizing body with evidence for the use of the funds.
the other public subsidies recognized as liabilities in the pre- vious year related primarily to investment subsidies received by a proportionately consolidated company to improve the economic infrastructure in the region and to promote intermodal transport. The deferral was to be reversed through profit and loss over the useful life of the subsidized assets.
otherwise public subsidies for assets are deducted from the acqui- sition cost of the assets and recognized on a straight-line basis in profit and loss by reducing depreciation for the asset over its useful life.
the hhla Group received public subsidies totalling € 10,163 thousand (2007: € 4,353 thousand) in the reporting year.
40. Income tax liabilities
Income tax liabilities, to the extent that they exist, result from tax assessments and potential additional payments for corporation tax, solidarity surcharge and trade tax.
When preparing the financial statements provisions are made for the corresponding amounts of corporation tax, solidarity surcharge and trade tax on the basis of the tax and legal situation known at the time of preparation.