Other reports

Operating Assets, Liabilities, and Contingent Liabilities

(29) Other non-financial liabilities

Accounting and measurement policies
Other non-financial liabilities

Accruals for personnel expenses reported in other non-financial liabilities include, in particular, liabilities resulting from vacation entitlements, variable and performance-related compensation components, and social security contributions.

Contract liabilities include payments received by the Group prior to completion of contractual performance.

Other non-financial liabilities comprises the following:

 

 

Dec. 31, 2023

 

Dec. 31, 2022

€ million

 

Current

 

Non-current

 

Total

 

Current

 

Non-current

 

Total

Accruals for personnel expenses1

 

916

 

 

916

 

1,156

 

 

1,156

Payroll-related liabilities1

 

122

 

4

 

126

 

121

 

5

 

127

Liabilities from non-income-related taxes

 

163

 

1

 

164

 

200

 

1

 

202

Contract liabilities

 

249

 

3

 

252

 

282

 

3

 

285

Other accruals

 

29

 

8

 

38

 

26

 

10

 

36

Other non-financial liabilities1

 

1,479

 

17

 

1,496

 

1,786

 

19

 

1,805

1

Previous year’s figures have been adjusted, see Note (2) “Reporting principles“.

The reduction in accruals for personnel expenses is due in particular to lower accruals for annual bonus payments for the past fiscal year and for the tranche of the Long-Term Incentive Plan of Merck KGaA, Darmstadt, Germany, that is payable in the months following the reporting date.

The following table shows the development of contract liabilities in the period under review:

 

 

2023

 

2022

€ million

 

Current

 

Non-current

 

Total

 

Current

 

Non-current

 

Total

Jan. 1

 

282

 

3

 

285

 

198

 

3

 

202

Additions due to business combinations

 

 

 

 

1

 

 

1

Other additions

 

1,290

 

 

1,290

 

1,276

 

1

 

1,277

Disposals due to divestments/Reclassification to assets held for sale

 

 

 

 

 

 

Recognition of income/reversal

 

-1,313

 

 

-1,313

 

-1,194

 

 

-1,195

Cumulative catch-up adjustments to revenue

 

 

 

 

 

 

Reclassification from non-current to current

 

 

 

 

1

 

-1

 

Currency translation

 

-11

 

 

-11

 

 

 

Other

 

 

 

 

 

 

Dec. 31

 

249

 

3

 

252

 

282

 

3

 

285

As of January 1, 2023, contract liabilities amounted to € 285 million (January 1, 2022: € 202 million), of which a total of € 253 million (2022: € 181 million) was recognized through profit or loss in fiscal 2023.

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