(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 variable and performance-related compensation components and social security contributions, as well as vacation entitlements.
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, 2025 |
|
Dec. 31, 2024 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Current |
|
Non-current |
|
Total |
|
Current |
|
Non-current |
|
Total |
Accruals for personnel expenses |
|
1,080 |
|
– |
|
1,080 |
|
1,049 |
|
– |
|
1,049 |
Payroll-related liabilities |
|
132 |
|
– |
|
132 |
|
141 |
|
– |
|
141 |
Liabilities from non-income related taxes |
|
132 |
|
1 |
|
133 |
|
139 |
|
1 |
|
140 |
Contract liabilities |
|
216 |
|
2 |
|
217 |
|
203 |
|
3 |
|
207 |
Other accruals |
|
30 |
|
6 |
|
36 |
|
29 |
|
8 |
|
37 |
Other non-financial liabilities |
|
1,588 |
|
9 |
|
1,598 |
|
1,562 |
|
12 |
|
1,574 |
The tranches of the Long-Term Incentive Plan of Merck KGaA, Darmstadt, Germany, included in the accruals for personnel expenses are 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. In addition, obligations to the employees of SpringWorks Therapeutics Inc., United States, were recognized in the accruals for personnel expenses (see Note (6) Acquisitions and divestments.
The following table shows the development of contract liabilities in the reporting period:
|
|
2025 |
|
2024 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Current |
|
Non-current |
|
Total |
|
Current |
|
Non-current |
|
Total |
Jan. 1 |
|
203 |
|
3 |
|
207 |
|
249 |
|
3 |
|
252 |
Additions due to business combinations |
|
– |
|
– |
|
– |
|
10 |
|
1 |
|
11 |
Other additions |
|
1,015 |
|
-1 |
|
1,015 |
|
1,282 |
|
– |
|
1,282 |
Disposals due to divestments/Reclassification to assets held for sale |
|
1 |
|
– |
|
1 |
|
-3 |
|
– |
|
-3 |
Recognition of income/reversal |
|
-988 |
|
-1 |
|
-989 |
|
-1,338 |
|
– |
|
-1,339 |
Cumulative catch-up adjustments to revenue |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Reclassification non-current/current |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Currency translation |
|
-16 |
|
– |
|
-16 |
|
4 |
|
– |
|
4 |
Other |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Dec. 31 |
|
216 |
|
2 |
|
217 |
|
203 |
|
3 |
|
207 |
As of January 1, 2025, contract liabilities amounted to € 207 million (January 1, 2024: € 252 million), of which a total of € 185 million (2024: € 224 million) was recognized through profit or loss in fiscal 2025.