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22 – Other provisions

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2012

 

2011

Million €

 

Thereof
short-term

 

 

Thereof
short-term

Restoration obligations

816

8

 

983

18

Environmental protection and remediation costs

617

125

 

659

150

Employee obligations

1,925

1,273

 

1,876

1,395

Sales and purchase risks

635

626

 

665

651

Restructuring measures

198

154

 

198

180

Litigation, damage claims, guarantees and similar commitments

171

78

 

190

90

Other

1,349

423

 

1,974

726

 

5,711

2,687

 

6,545

3,210

Restoration obligations primarily relate to the estimated costs for the filling of wells, the removal of production equipment after the end of production and the removal of natural gas pipelines. The decline in long-term provisions for restoration obligations resulted in particular from the reclassification of provisions into the natural gas trading disposal group.

Provisions for environmental protection and remediation costs cover expected costs for rehabilitating contaminated sites, recultivating landfills, removal of environmental contamination at existing production or storage sites and similar measures. In addition, provisions are recognized in connection with the allocation of emission certificates from the German Emissions Trading Authority or other similar bodies in the European Union. The decrease in short-term provisions for environmental protection measures and remediation costs is largely due to the return of emission certificates used in Germany and Belgium and the utilization for ongoing remediation work at various sites.

Provisions for employee obligations include obligations for the granting of long-service bonuses, anniversary payments, variable compensation including the associated social security contributions, and other accruals as well as provisions for early retirement programs for employees nearing retirement.

The sales and purchase risks provisions include warranties, product liability, customer rebates and other price reductions, sales commissions and provisions for expected losses on committed purchases as well as provisions for onerous contracts. The decline was due to the reclassification of provisions into the natural gas trading disposal group.

The restructuring measures provisions include severance payments to employees as well as expected costs for site closures, including the costs for demolition and similar measures.

Provisions for litigation, damage claims, guarantees and similar commitments include the expected costs of litigation, obligations under damage claims, and other guarantees.

Other includes long-term tax provisions as well as further present obligations and accruals. The decline is due to the reversal of long-term tax provisions and a reclassification of accruals for outstanding invoices into trade accounts payable.

The following table shows the development of other provisions by category. Other changes include transfers into the liabilities of the disposal group, 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.

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Development of other provisions in 2012 (million €)

 

January 1, 2012

Additions

Accrued ­interest

Utilization

Reversals

Other changes

December 31, 2012

Restoration obligations

983

83

46

(28)

(5)

(263)

816

Environmental protection and remediation costs

659

99

3

(123)

(4)

(17)

617

Employee obligations

1,876

1,598

20

(1,399)

(66)

(104)

1,925

Sales and purchase risks

665

624

(416)

(88)

(150)

635

Restructuring measures

198

108

1

(97)

(22)

10

198

Litigation, damage claims, guarantees and similar ­commitments

190

36

3

(31)

(17)

(10)

171

Other

1,974

346

1

(504)

(391)

(77)

1,349

 

6,545

2,894

74

(2,598)

(593)

(611)

5,711