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Note 15: Other provisions


Movements in other provisions

 

 

 

 

 

 

 

 

 

In € millions

 

Restructuring of activities

 

Environmental costs

 

Other

 

Total

Balance at January 1, 2012

 

135

 

414

 

563

 

1,112

Additions made during the year

 

204

 

46

 

109

 

359

Utilization

 

(143)

 

(33)

 

(167)

 

(343)

Amounts reversed during the year

 

(9)

 

(21)

 

(23)

 

(53)

Unwind of discount

 

1

 

17

 

8

 

26

Acquisitions/divestments

 

 

1

 

 

1

Transfer to assets held for sale

 

(4)

 

 

(2)

 

(6)

Changes in exchange rates

 

 

 

1

 

1

Balance at December 31, 2012

 

184

 

424

 

489

 

1,097

 

 

 

 

 

 

 

 

 

Non-current portion

 

42

 

368

 

325

 

735

Current portion

 

142

 

56

 

164

 

362

Balance at December 31, 2012

 

184

 

424

 

489

 

1,097

Provisions for restructuring of activities

Provisions for restructuring of activities comprise accruals for certain employee benefits and for costs which are directly associated with plans to exit or cease specific activities and closing down of facilities. For all restructuring provisions a detailed formal plan exists and the implementation of the plan has started or the plan has been announced before the balance sheet date. Most restructuring plans are expected to be completed within two years from the balance sheet date. For more information, see Note 3.

Provisions for environmental costs

For details on environmental exposures, see Note 19.

Other provisions

Other provisions relate to a great variety of risks and commitments, including provisions for antitrust cases, claims, other long-term employee benefits such as long-service leave and jubilee payments. At year-end 2012, the provision for antitrust cases amounted to €21 million (2011: €134 million), see Note 19. Folllowing the judgment in the Metacrylates case by the General Court in June 2012 we paid €113 million.

The majority of the cash outflows related to other provisions are expected to be within one to five years. In calculating the other provisions, a pre-tax discount rate of on average 3 percent has been used.

Current portion of provisions

Current portion of post-retirement provisions (€93 million) and other provisions (€362 million) adds up to €455 million (2011: €551 million).

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