Note 15: Other provisions

Movements in other provisions

 

 

 

 

 

 

 

 

 

In € millions

 

Restructuring of activities

 

Environmental costs

 

Sundry

 

Total

Balance at January 1, 2015

 

259

 

326

 

462

 

1,047

Additions made during the year

 

88

 

13

 

127

 

228

Utilization

 

(171)

 

(34)

 

(129)

 

(334)

Amounts reversed during the year

 

(40)

 

(18)

 

(23)

 

(81)

Unwind of discount

 

2

 

6

 

7

 

15

Changes in exchange rates

 

4

 

12

 

14

 

30

Balance at year-end 2015

 

142

 

305

 

458

 

905

 

 

 

 

 

 

 

 

 

Non-current portion of provisions

 

24

 

266

 

290

 

580

Current portion of provisions

 

118

 

39

 

168

 

325

Balance at year-end 2015

 

142

 

305

 

458

 

905

Provisions for restructuring of activities

Provisions for restructuring of activities comprise of 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 one year from the balance sheet date.

Provisions for environmental costs

For details on environmental exposures, see Note 19.

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 (€126 million) and other provisions (€325 million) adds up to €451 million (2014: €494 million), as reflected in the balance sheet.