Note 16: Other provisions

Movements in other provisions

 

 

 

 

 

 

 

 

 

In € millions

 

Restructuring of activities

 

Environmental costs

 

Other

 

Total

Balance at January 1, 2013

 

184

 

424

 

489

 

1,097

Additions made during the year

 

191

 

7

 

158

 

356

Utilization

 

(111)

 

(48)

 

(65)

 

(224)

Amounts reversed during the year

 

(26)

 

(24)

 

(17)

 

(67)

Unwind of discount

 

1

 

(4)

 

8

 

5

Acquisitions/divestments

 

 

(1)

 

(4)

 

(5)

Transfer to Liabilities held for sale

 

 

(8)

 

(1)

 

(9)

Changes in exchange rates

 

(3)

 

(17)

 

(15)

 

(35)

Balance at December 31, 2013

 

236

 

329

 

553

 

1,118

 

 

 

 

 

 

 

 

 

Non-current portion of provisions

 

75

 

283

 

343

 

701

Current portion of provisions

 

161

 

46

 

210

 

417

Balance at December 31, 2013

 

236

 

329

 

553

 

1,118

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.

Provisions for environmental costs

For details on environmental exposures, see Note 20.

Other provisions

Other provisions relate to a great variety of risks and commitments, including provisions for claims, antitrust cases and other long-term employee benefits, such as long-service leave and jubilee payments.

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 3.5 percent has been used.

Current portion of provisions

Current portion of post-retirement benefit provisions (€184 million) and other provisions (€417 million) adds up to €601 million (2012: €455 million).