Note 16: Other provisions

Movements in other provisions

 

 

 

 

 

 

 

 

 

In € millions

 

Restructuring of activities

 

Environmental costs

 

Sundry

 

Total

Balance at January 1, 2014

 

236

 

329

 

553

 

1,118

Additions made during the year

 

179

 

13

 

111

 

303

Utilization

 

(144)

 

(28)

 

(210)

 

(382)

Amounts reversed during the year

 

(19)

 

(20)

 

(32)

 

(71)

Unwind of discount

 

2

 

13

 

17

 

32

Transfer to/(from) liabilities held for sale

 

 

6

 

(1)

 

5

Changes in exchange rates

 

5

 

13

 

24

 

42

Balance at December 31, 2014

 

259

 

326

 

462

 

1,047

 

 

 

 

 

 

 

 

 

Non-current portion of provisions

 

70

 

282

 

303

 

655

Current portion of provisions

 

189

 

44

 

159

 

392

Balance at December 31, 2014

 

259

 

326

 

462

 

1,047

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.

Sundry provisions

Sundry 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 sundry provisions are expected to be within one to five years. In calculating the sundry provisions, a pre-tax discount rate of on average 2.8 percent has been used.

Current portion of provisions

Current portion of post-retirement benefit provisions (€102 million) and other provisions (€392 million) adds up to €494 million (2013: €601 million).