15 – Other provisions
Development 1st Half 2015 (million €) |
||||||||
|---|---|---|---|---|---|---|---|---|
|
|
Jan. 1, 2015 |
Additions |
Unwinding of discount |
Utilization |
Reversals |
Other changes |
June 30, 2015 |
Restoration obligations |
|
1,428 |
44 |
24 |
(40) |
− |
(79) |
1,377 |
Environmental protection and remediation costs |
|
621 |
94 |
3 |
(119) |
(1) |
29 |
627 |
Employee obligations |
|
1,744 |
888 |
2 |
(1,227) |
(29) |
7 |
1,385 |
Sales and purchase risks |
|
715 |
778 |
− |
(175) |
(24) |
24 |
1,318 |
Restructuring measures |
|
156 |
7 |
− |
(39) |
(8) |
6 |
122 |
Litigation, damage claims, guarantees and similar obligations |
|
112 |
30 |
− |
(8) |
(5) |
(7) |
122 |
Other |
|
1,570 |
175 |
1 |
(214) |
(41) |
34 |
1,525 |
Total |
|
6,346 |
2,016 |
30 |
(1,822) |
(108) |
14 |
6,476 |
On June 30, 2015, other provisions had risen by €130 million compared with year-end 2014. Currency effects were responsible for an increase of €195 million.
Provisions required for restoration obligations declined as a result of utilization and the transfer of obligations to liabilities of disposal groups. Partly counterbalancing this were current additions to provisions for restoration obligations, the unwinding of the discount on noncurrent liabilities, and currency effects.
Provisions for employee obligations declined considerably. Additions for variable compensation components in the current business year were far exceeded by utilizations for the previous year.
By contrast, provisions for the long-term incentive program increased as a result of the positive share price developments in the first half of 2015.
Current accruals and deferrals for discounts significantly outweighed the utilization of provisions from the previous year. This led to a seasonal increase in provisions for sales risks.
Other changes include changes in the scope of consolidation, currency effects and the reclassification of obligations to liabilities when the amount and timing of these obligations become known.