VII. Notes to the statement of financial position

Impairment losses are presented in the consolidated statement of profit or loss among depreciation and amortization. Income from the reversal of impairments is presented among other income.

1. Intangible assets

The carrying amounts of intangible assets developed as follows:

Acquired intangible assets include emission rights with a carrying amount of TEUR 15,035 (December 31, 2024: TEUR 11,819). Emission rights are intangible assets with indefinite useful lives.

Additions to intangible assets include TEUR 293 (December 31, 2024: TEUR 15) in capitalized development costs.

2. Property, plant and equipment Summary

The carrying amounts of property, plant and equipment for own use developed as follows:

Land is partially burdened with leasehold rights, usufructs and similar rights. The carrying amount of these properties is TEUR 5,669 (De­cem­ber 31, 2024: TEUR 5,669).

A total of TEUR 692,898 (De­cem­ber 31, 2024: TEUR 724,967) of the buildings owned by Flughafen München GmbH subsidiaries and a to­tal of TEUR 4,311 (December 31, 2024: TEUR 12,921) of the tech­ni­cal equipment and machinery, operating and office equipment, and property, plant and equipment under construction owned by the sub­sidiaries serve as collateral for long-term loans.

There are obligations to acquire property, plant and equipment total­ing TEUR 110,160 (December 31, 2024: TEUR 204,486).

The effects of changes in estimates of fixed assets relate in the 2025 fiscal year in particular to changed estimates regarding the usability of assets.

Additions to the aquisition or production costs for assets under con­struction include general borrowing costs of TEUR 15,883 (Decem­ber 31, 2024: TEUR 9,736). The capitalization of general borrowing costs in the 2025 fiscal year is based on a capitalization rate of 2.51% (2024: 2.25%).

Property, plant and equipment for own use included right-of-use assets from leases, which are broken down as follows:

Additions to right-of-use assets totaled TEUR 9,293 (December 31, 2024: TEUR 6,776).

In the area of buildings/property, the Group rents residential build­ings as well as office and warehouse space in particular. These lease agreements may include renewal and termination options.

Operating and office equipment includes, among other things, right-of-use assets from the leasing of IT hardware, vehicles, and other operating and office equipment.

Individual lease contracts include various renewal options. These re­newal options result in possible future cash outflows of TEUR 15,685 (December 31, 2024: TEUR 14,507). These have not been included in the recognized lease liabilities as it is not sufficiently certain that these contracts will be extended. This assessment is reviewed when­ever a significant event or change in circumstances occurs that may affect the previous assessment – provided this is within the control of the lessee.

Owner-occupied land and buildings are partially leased out. The leases are all operating leases. The carrying amounts of land and buildings leased out changed as follows:

3. Investment property Summary

The carrying amounts of investment property developed as follows:

Reclassifications and transfers include reclassifications to assets held for sale in the amount of TEUR 642 (2024: TEUR 1,394).

Munich Airport realized income of TEUR 14,899 (2024: TEUR 12,041) from the lease of investment property. Operating expenses (in­clud­ing repairs and maintenance) amounted to TEUR 5,941 (2024: TEUR 6,083).

Investment property is partially burdened with third-party rights (inter alia leasehold rights). The carrying amount of these properties is TEUR 12,129 (December 31, 2024: TEUR 12,129).

The fair value of all investment properties, all of which are used in accordance with the highest and best use, amounts to TEUR 339,706 (December 31, 2024: TEUR 288,639). The Group determines the fair values itself. Notes on the measurement methods and parameters can be found in Section IV.7.

4. Investments

a) Investments in companies accounted for using the equity method

The carrying amount of Investments in companies accounted for using the equity method is as follows:

The fiscal year of EFM begins on October 1 and ends on September 30 of the following year. For reasons of materiality, no interim financial statements have been prepared. The financial statements are includ­ed with a different reporting date after adjustments for results from material business transactions between October 1 and December 31.

b) Investments in joint operations

No significant business operations were started in the ORAT AMS Group V.O.F., Amsterdam/Netherlands, in 2025. Therefore, no further details are provided.

5. Non-current financial assets

Carrying amounts and fair values of non-current financial assets are attributable to the measurement categories described in Section IV.7.c) as follows:

The carrying amount of non-current financial assets includes expect­ed credit losses. As in the previous year, none of the non-current fi­nancial assets were categorized as due.

The Group has other financial assets with a gross carrying amount of TEUR 1,160 (December 31, 2024: TEUR 789) and contract assets totaling TEUR 24,027 (December 31, 2024: TEUR 37,015). These were assigned the rating classes BBB- to AAA. As of the reporting date impairment losses amounted to TEUR 2 (December 31, 2024: TEUR 0) for other financial assets and TEUR 88 (December 31, 2024: TEUR 186) for contract assets.

Information on derivatives can be found in Section VII.16.

6. Deferred taxes Summary

Deferred tax assets and liabilities are allocated to the following bal­ance sheet items with reference to their origin:

The effects of the change in deferred tax assets and liabilities on the consolidated statement of profit or loss and other comprehensive income are shown in the following overview:

TEUR 637 (December 31, 2024: TEUR 721) of the trade tax loss carryforwards has not been recognized. Losses carried forward do not expire.

TEUR 106,357 of the carrying amount of the deferred tax assets relates to loss carryforwards (December 31, 2024: TEUR 136,048). In addition to the amount of deferred tax liabilities that can be off­set, deferred tax assets on losses carried forward are only recog­nized to the extent that they can be offset against expected taxable profits.

TEUR 562 (December 31, 2024: TEUR 366) of deferred tax assets and TEUR 265,501 (December 31, 2024: TEUR 293,131) of deferred tax liabilities are expected to be realized more than twelve months after the end of the reporting period.

The companies included in the consolidated financial statements are corporations and partner­ships. In accordance with Section 8b (1) in conjunction with Section 8b (5) of the Körperschaftsteuergesetz (KStG – Corporate Tax Act) and/or Section 8b (2) in conjunction with Section 8b (5) KStG, 95% of the difference between the carrying amount for tax purposes of an investment in a corporation included in the consolidated financial statements and its net assets in accor­dance with IFRS is exempt from taxation.

No additional differences emerge between the net assets of partner­ships for tax purposes depicted in accordance with the mirror image method and the net assets in accor­dance with IFRS beyond the tem­porary differences taken into account at individual company level.

7. Inventories

The carrying amount of inventories was as follows:

TEUR 22,094 (December 31, 2024: TEUR 21,040) of the carrying amount is attributed to merchandise measured at the net realizable value.

The cost of materials includes expenses from impairment losses on merchandise amounting to TEUR 2,252 (2024: TEUR 1,491). In the reporting year, TEUR 544 (2024: TEUR 469) in impairment reversals were offset against the cost of materials. The cost of goods and materials amounted to TEUR 109,945 (2024: TEUR 105,049).

8. Current financial assets Summary

The carrying amounts of current financial assets are attributable to the measurement categories described in Section IV.7.c) as follows. The carrying amount is a reasonable approximation of fair value.

a) Current trade receivables and contract assets

Default risks on trade receivables and contract assets are taken into account by impairment losses for expected credit losses (see Sec­tion IV.7.f)). The amortized costs of the trade receivables include ex­pected credit losses that are calculated using the simplified approach. Munich Airport monitors the credit risk by using credit default swap spreads and rating information from popular market data providers together with available press and supervisory infor­mation on debtors to determine expected credit losses. Individual value adjustments for trade receivables are recognized separately. Impairment losses of TEUR 2,493 (December 31, 2024: TEUR 1,782) relate to trade re­ceiv­ables (TEUR 2,481; December 31, 2024: TEUR 1,770) and contract assets from contracts with customers (TEUR 12; December 31, 2024: TEUR 12).

The table below contains a more detailed analysis of the credit qua­lity of these receivables:

The impairments on trade receivables and contract assets have deve­loped as follows:

Receivables not due for payment relate to debtors of varying credit­worthiness. When determining the need for impairment for the finan­cial assets, insolvencies, legal disputes and payment defaults, among other factors, were used to determine if there was objective evidence of an impairment.

Receivables arising from leases are secured through security depo­sits and guarantees. Handling services are rendered only against deposit of cash collateral and bank guarantees. TEUR 2,586 (De­cem­ber 31, 2024: TEUR 3,507) of the receivables from rental agreements are covered by security deposits amounting to TEUR 4,478 (Decem­ber 31, 2024: TEUR 5,226) and by guarantees and other collateral amounting to TEUR 42,141 (December 31, 2024: TEUR 40,524). TEUR 13,378 (December 31, 2024: TEUR 9,733) of the receivables from handling services are secured by cash collateral and bank guar­antees as well as other collateral in the amount of TEUR 25,395 (De­cember 31, 2024: TEUR 19,270). Since the collateral can be drawn down in full on a regular basis and immediately without incurring any further costs, the exposure amount to be taken into account for cal­culating expected credit losses is reduced by the amount of the re­spec­tive collateral.

Of the trade receivables of Flughafen München GmbH’s subsidiaries, TEUR 3,341 (December 31, 2024: TEUR 2,739) was pledged as col­later­al for loan debts. The pledge was made by means of an undis­closed assignment in accordance with Section 398 Bürgerliches Gesetzbuch (BGB – German Civil Code). Flughafen München GmbH itself does not pledge any assets as collateral for debt capital.

b) Current other receivables

The following analysis shows the main components of current other receivables:

Significant risks of default for other current receivables are recognized with impairment losses (see Section IV.7f)). Impairment losses are offset against the carrying amount.

The amortized costs of other receivables include expected credit los­ses that are calculated using the general approach. Munich Airport monitors credit risk by using credit default swap spreads and rating information from popular market data providers together with avail­able press and supervisory information on debtors to determine ex­pected credit losses. Individual value adjustments of other receiv­ables are recognized separately.

The Group had other current receivables with a gross carrying amount of TEUR 18,060 (December 31, 2024: TEUR 10,272). As in the previ­ous year, these were assigned to the rating classes BB to BBB. Im­pairment losses amounted to TEUR 19 (December 31, 2024: TEUR 11) as of the end of the reporting period.

The current other receivables are not to be considered as due. They relate to debtors of varying creditworthiness.

9. Other assets

The carrying amount of other assets was comprised as follows:

10. Cash and cash equivalents

The carrying amount of cash and cash equivalents was comprised as follows:

The composition and the net balance of cash and cash equivalents corresponds to the net balance of cash and cash equivalents in the statement of cash flows.

Cash and cash equivalents are measured at «amortized cost». Their carrying amount corresponds to the fair value.

The amortized cost of cash and cash equivalents includes expected credit losses that are calculated using the general approach. Munich Airport reduces the credit risk in that it invests primarily in financial instruments with at least an investment grade rating. The rating in­formation is acquired from popular market data providers and moni­tored regularly for changes. In order to determine whether the pub­lished ratings are up to date and whether a significant increase in the credit risk has taken place, the determination of expected credit losses is based on rating information and credit default swap spreads together with available press and supervisory information. No im­pairments were recognized here in the 2025 fiscal year.

11. Non-current assets and liabilities held for sale

As of December 31, 2025, the consolidated statement of financial position includes non-current assets held for sale of TEUR 766 (2024: TEUR 3,483). As of December 31, 2024, liabilities directly associated with non-current assets held for sale amounting to TEUR 986 were reported.

The change in the carrying amounts is connected primarily to the sale of shares in Cargogate, which was completed in January 2025. TEUR 2,264 of the change is attributed to assets and TEUR 986 to liabilities.

The remaining assets relate largely to land that is held as an object of exchange in connection with the acquisition of land for extensions.

No reversals of write-downs of the carrying amounts of the non-current assets held for sale were made in the reporting year.

12. Equity Summary

The subscribed capital of Flughafen München GmbH is divided into three shares. All shares are fully paid.

The notional value per share was:

Each ten euros of a share grant one vote within the scope of the resolution adopted by the Shareholders’ General Meeting. The disposal of the shares or parts thereof requires the approval of all shareholders.

The main components of the carrying amount of reserves were:

The capital reserve results from a capital increase in connection with the construction of the airport facilities at the current location in Erdinger Moos. Capital reserves can only be recalled with the unan­imous consent of all shareholders.

Other revenue reserves are used in particular to finance investment projects with subsidiaries (AeroGround Flughafen München GmbH, FMSicherheit Flughafen München Sicherheit GmbH and Terminal 2 Gesellschaft mbH & Co. oHG). The Shareholders’ General Meetings decide upon the formation and withdrawal of these reserves.

The main components of other equity were:

13. Capital management Summary

Capital management pursues the aim of ensuring the going concern and generating appropriate returns for the shareholders. Measures are taken to manage the capital structure and the profitability in order to achieve this aim.

a) Capital structure

Capital structure is controlled with a view to sustainably maintaining a company rating in the investment grade.

The prime key performance indicator (KPI) for the determination of the credit rating is net debt to adjusted EBITDA. Adjusted EBITDA is meant to create a sustainable KPI. Adjustments relate to non-recur­ring effects contained in the current EBITDA. In fiscal year 2025, there were no effects that were adjusted, therefore the adjusted EBITDA corresponds to the EBITDA.

The capital structure is managed with regard to the ratio between net debt and adjusted EBITDA as derived from the target rating. This ratio is compared with benchmark KPIs of capital market-listed companies of the European peer group at regular intervals.

Due to the shareholder structure of Flughafen München GmbH, the Group primarily concentrates its efforts to manage the capital struc­ture on the scope of financing through debt capital.

The ratio developed as follows:

Procedures and methods of controlling and monitoring the capital structure have not changed in comparison with the previous year.

b) Profitability

The Group uses EBT to measure profitability. A large part of the in­cen­tives of managers is based on this value. Within the framework of value-oriented management, Munich Airport strives to achieve a return on capital employed (ROCE) that can be used, among other things, to evaluate investments in comparison with the WACC (weight­ed average cost of capital).

EBT amounted to TEUR 146,656 in the 2025 fiscal year (2024: TEUR 103,099).

Procedures and methods for controlling and monitoring profitability have not changed in comparison with the previous year.

14. Financial liabilities from interests in partnerships

The carrying amount of financial liabilities from interests in partner­ships is approximately equal to their fair value.

The selected risk-adequate discount rate of 9.5% represents an after tax figure derived from the capital cost structure. In addition to the final maturity of the pro rata fixed capital, the financial liability also takes into account the discount­ed capital contributions and dis­count­ed potentials for distribution during the term of the contract through to 2056.

Under the accounting and measurement methods of these financial statements, the carrying amount is broken down by maturity. It does not therefore correspond to the actually expected maturities.

The resulting financial liability and liquidity requirement for the Group can be approximately derived from the expected distributions and retained profit shares in subsequent years, as well as from the un­der­lying discount factors. A reduction in the interest rate will lead to an increase in the financial liability. The discount interest rate is only adjusted in the event of significant contractual changes.

The following sensitivity analysis provides a quantitative estimate of the scope of the above-mentioned risk:

The calculation methods and assumptions did not change compared to the previous period.

15. Non-current financial liabilities Summary

Carrying amounts and fair values of non-current financial liabilities are attributable to the measurement categories described in Sec­tion IV.7.c) as follows:

a) Non-current trade payables

Non-current trade payables mainly relate to warranty retentions.

b) Non-current other liabilities

Non-current other liabilities mainly relate to deposits and security deposits.

Deposits and security deposits bear interest at market rates. There are no significant differences between carrying amount and fair value.

c) Financial liabilities from loans

Non-current financial liabilities from loans mainly relate to syndicated loans and promissory note loans. The loans are subject to the usual non-financial covenants, including negative pledges and pari passu clauses. In addition, there are rights to cancel the event of changes in the shareholder structure of Flughafen München GmbH. No finan­cial covenants have been agreed.

Financial liabilities from loans included the following amounts:

The main conditions of short and long-term loans with fixed interest rates are:

The main conditions of the short-term and long-term floating-rate loans are as follows:

The current portion of financial liabilities from loans (including transaction costs) is reported under current financial liabilities.

d) Non-current financial liabilities from leases

The current portion of the financial liabilities from leases is presented among current financial liabilities.

16. Derivatives and hedge relationships Summary

Munich Airport uses derivatives as hedging instruments for financial risk management purposes. Trading in derivatives for speculative purposes is generally prohibited at Munich Airport.

The carrying amounts of the derivatives were as follows:

The carrying amount of the derivatives equals their fair value.

The carrying amount of derivatives with a term to maturity of less than one year is recognized under current financial assets/liabilities.

a) Cash flow hedges

Munich Airport is exposed to a risk of interest rate change due to fluctuations in interest rates. To limit the interest rate risk, the Group concludes interest rate hedges for floating-rate loans. In this con­text, floating-rate payments are exchanged for fixed-rate payments (pay-fixed/receive-floating). This offsets to a large extent the effects from the change in interest payment obligations for future loans, so that a specific, floating rate of interest on the net position is sought for long-term (re)financing. Managing the hedging rate guarantees a high level of planning security for the interest result, while also faci­li­tating a participation should interest rates fall. The derivatives port­folio includes transactions that serve to settle current interest pay­ment obligations.

The risk management objective is to eliminate the risk of a change in cash flows resulting from interest rate changes («interest rate risk») using a designated portion of the nominal amount of the loans («hedg­ing ratio»). The hedging ratio is increased in accordance with the payment schedule of the loans. Within the limits defined by the hedg­ing ratio, the interest rate risk is supposed to be largely eliminated.

The hedged risk arises from the cash flows from floating interest rate loans. Interest rate swaps are used for hedging purposes, which are designated in their entirety in the hedge relationship.

Moreover, Munich Airport is also exposed to exchange rate risks resulting from fluctuating exchange rates; in the 2025 fiscal year, these were accounted for in the corresponding hedges. Foreign exchange transactions are concluded with banks to limit this risk. As a result, the impact of changing exchange rates is largely com­pensated, which guarantees a high level of planning certainty.

The risk management objective is to eliminate the risk of a change in cash flows due to changes in foreign currencies («foreign currency risk») by designating a portion of the nominal amount of the loan («hedging ratio»). The hedging ratio is increased in accordance with the payment schedule of the loan. Within the limits defined by the hedging ratio, the foreign currency risk is supposed to be largely eliminated.

The derivatives portfolio consisted of the following:

The carrying amount of hedged items and the derivatives that are designated as cash flow hedges changed as follows:

The table below includes a reconciliation of the risk categories for the equity components and the analysis of the items in the other earnings after taxes that result from the accounting of cash flow hedges:

The prospective effectiveness test is performed at designation and every quarter thereafter. The assessment of effectiveness takes place prospectively on the basis of qualitative features or using cumulative dollar offset methods on the basis of the hypothetical derivative method. Due to corresponding main measurement parameters and the designation of the hedge relationship as a micro hedge, the val­ue changes of the hedged item and the hedging transaction are al­most completely offset by one another. As a critical value parameter, a comparison is performed here of the reference interest rate, the term, the interest rate adjustment dates and terms, as well as the nominal amounts. Possible mismatches are expected from the con­sideration of the credit risk in the hypothetical derivative; but usually that does not lead to any ineffectiveness that has to be recorded through profit or loss. Further sources of ineffectiveness are not known in the Group.

b) Off-balance sheet hedge relationships

The carrying amount of non-designated hedge relationships results from foreign exchange transactions, which are used to limit liquidity risks arising from long-term sales agreements in foreign currency. The aim of these transactions is to ensure that expected fees are exchanged at a specific exchange rate.

The main terms of these foreign exchange transactions are:

17. Employee benefits Summary

Provisions for employee benefits include:

a) Obligations from pension commitments

Obligations from pension commitments are due to managing direc­tors, authorized signatories, and their surviving dependents. They comprise a total of 20 beneficiaries (December 31, 2024: 21), of which 0 is an active employee (Decem­ber 31, 2024: 1) and 20 are retirees, surviving dependents, and other beneficiaries (Decem­ber 31, 2024: 20). The amount of the benefits depends on the length of ser­vice, the salary at the time of retirement, and the general pension level. The pension payments are made from current operating cash flows.

Munich Airport has not invested any plan assets for the financing of pension benefit payments. The carrying amount of the provisions corresponds to the amount of the cumulative defined benefit obli­ga­tion.

The carrying amount of the pension commitments changed as follows:

The change in the balance of actuarial gains and losses can be attri­buted to the following reasons:

The measurement of the pension obligations is based on the fol­low­ing assumptions:

The Heubeck Richttafeln GmbH mortality tables 2018 G were used as the basis of calculation in the 2025 fiscal year, using a monthly ad­vance payment method.

The average duration of the defined benefit obligation is 8 years (December 31, 2024: 10 years).

The liquidity risk resulting from pension commitments is moderate. The risk can be approximated from the expected pension payments of the following year and the average duration of the pension com­mitments.

Additional risks arise from fluctuations of interest rates as well as the salary and pension trend. A reduction of interest rates will result in an increase in the amount of the provisions for pension commitments. Likewise, the amount of the provision will also increase in line with an increase in the expected salary at the time of retirement. The same applies for an increase in the pension level following retire­ment. There is only a moderate risk, on the other hand, from a change in life expectancy.

The following sensitivity analysis provides a quantitative estimate of the scope of the above-mentioned risks:

The sensitivity analysis is based on the change of one assumption while holding all other assumptions constant. The sensitivities are calculated in accordance with the method used for the subsequent measurement of pension obligations (projected unit credit method).

The calculation methods and assumptions did not change compared to the previous period.

b) Obligations from medical utility services

Only active civil servants and pensioners are entitled to receive post-employment medical benefits. They comprise a total of 20 beneficia­ries (December 31, 2024: 20), of which 20 are retirees and surviving dependents (December 31, 2024: 20). The amount of the medical benefits depends on the length of service. Benefit payments will be paid lifelong from the date of retirement and will be provided in­di­rectly through insurance.

Munich Airport has not invested any plan assets for the financing of benefit payments. The carrying amount of the provisions corre­sponds to the amount of the cumulative defined benefit obligation.

The carrying amount of the medical benefit commitments changed as follows:

The change in actuarial losses is attributable to the following causes:

The measurement of the benefit obligations is based on the fol­low­ing assumptions:

The Heubeck Richttafeln GmbH mortality tables 2018 G were used as the basis of calculation in the 2025 fiscal year, using a monthly ad­vance payment method.

The average duration is six years (December 31, 2024: seven years).

The benefit commitments result in a moderate liquidity risk for the Group. This risk can be approximated from the expected benefit pay­ments of the following year and the average duration of benefit com­mit­ments.

Additional risks arise from fluctuations in the level of market interest rates and future medical costs. A decrease in the market interest rate level leads to an increase in the amount of the provisions for benefit obligations. The provision amount will likewise increase with an increase in the expected medical costs. There is only a moderate risk, on the other hand, from a change in life expectancy.

The following sensitivity analysis provides a quantitative estimate of the scope of the above-mentioned risks:

The sensitivity analysis is based on the change of one assumption while holding all other assumptions constant. The sensitivities are calculated in accordance with the method used for the subsequent measurement of benefit obligations (projected unit credit method).

The calculation methods and assumptions did not change compared to the previous period.

c) Post-employment benefits via the Bavarian municipalities’ supplementary welfare fund

All employees of Munich Airport employed in accordance with the provisions of the collective pay scale agreement for public sector employees receive an occupational pension. They are insured through their employer in the supplementary welfare fund of the Bavarian municipalities. The supplementary welfare fund provides all employ­ees of its members with insurance covering post-employment bene­fits, benefits to compensate for reductions in earning capacity, and benefits for surviving dependents.

The fund is financed via the levies and supplementary contributions of its members from investment and provisions. The contribution rate is determined on the basis of an annually updated actuarial calculation of the fund’s financing requirement over the planning horizon applicable at the time (maximum ten years). The current contribution rate is 3.75%. Furthermore, the fund collects an addi­tional contribution to build up a capital stock (currently 4.00%). If membership is canceled, the company withdrawing from the fund must make a compensatory contribution equal to the present value of all obligations to the company’s insured employees arising from post-employment benefits.

The occupational post-employment benefits provided via the welfare fund are a joint pension commitment by several companies. The members of the welfare fund bear the financial and biometric risk of post-employment benefits jointly. The – theoretically possible – asset allocation for each member is not constituted from the total contributions paid in each case but purely arithmetically from the total actuarial risks contributed in each case. Munich Airport is also exposed to the actuarial risks of the current and former employees of other external members in relation to the components of the obli­gation covered by the levy. It is impossible to reconcile the assets and a clear allocation of the obligation reliably. Post-employment benefits are therefore accounted for as a defined contribution plan. Contribution payments are recognized as an expense immediately.

Munich Airport is not aware of any deficits or surpluses at the wel­fare fund nor of the scope of other companies’ participation.

For the 2026 fiscal year, Munich Airport expects to make contribution payments and payments to direct insurance policies totaling TEUR 26,168. In the 2025 fiscal year, it made contribution payments and payments to direct insurance policies totaling TEUR 23,928.

18. Other provisions Summary

The carrying amount of other provisions developed as follows: