(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 from customers received by the Group prior to completion of contractual performance.
Other non-financial liabilities comprise the following:
|
|
Dec. 31, 2024 |
|
Dec. 31, 2023 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Current |
|
Non-current |
|
Total |
|
Current |
|
Non-current |
|
Total |
Accruals for personnel expenses |
|
1,049 |
|
– |
|
1,049 |
|
916 |
|
– |
|
916 |
Payroll-related liabilities |
|
141 |
|
– |
|
141 |
|
122 |
|
4 |
|
126 |
Liabilities from non-income related taxes |
|
139 |
|
1 |
|
140 |
|
163 |
|
1 |
|
164 |
Contract liabilities |
|
203 |
|
3 |
|
207 |
|
249 |
|
3 |
|
252 |
Other accruals |
|
29 |
|
8 |
|
37 |
|
29 |
|
8 |
|
38 |
Other non-financial liabilities |
|
1,562 |
|
12 |
|
1,574 |
|
1,479 |
|
17 |
|
1,496 |
The development of accruals for personnel expenses is due in particular to higher accruals for bonus payments 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. Further information on the Long-Term Incentive Plan of Merck KGaA, Darmstadt, Germany, can be found in the “Share-based payments” section of Note (33) “Provisions for employee benefits”.
The following table shows the development of contract liabilities in the period under review:
|
|
2024 |
|
2023 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Current |
|
Non-current |
|
Total |
|
Current |
|
Non-current |
|
Total |
Jan. 1 |
|
249 |
|
3 |
|
252 |
|
282 |
|
3 |
|
285 |
Additions due to business combinations |
|
10 |
|
1 |
|
11 |
|
– |
|
– |
|
– |
Other additions |
|
1,282 |
|
– |
|
1,282 |
|
1,290 |
|
– |
|
1,290 |
Disposals due to divestments/ |
|
-3 |
|
– |
|
-3 |
|
– |
|
– |
|
– |
Recognition of income/reversal |
|
-1,338 |
|
– |
|
-1,339 |
|
-1,313 |
|
– |
|
-1,313 |
Cumulative catch-up adjustments to revenue |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Reclassification non-current/current |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Currency translation |
|
4 |
|
– |
|
4 |
|
-11 |
|
– |
|
-11 |
Other |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Dec. 31 |
|
203 |
|
3 |
|
207 |
|
249 |
|
3 |
|
252 |
As of January 1, 2024, contract liabilities amounted to € 252 million (January 1, 2023: € 285 million), of which a total of € 224 million (2023: € 253 million) was recognized through profit or loss in fiscal 2024.