15 – Other provisions
Development of other provisions from January to March 2015 (million €) |
||||||||
|---|---|---|---|---|---|---|---|---|
|
|
Jan. 1, 2015 |
Additions |
Unwinding of discount |
Utilization |
Reversals |
Other changes |
Mar. 31, 2015 |
Restoration obligations |
|
1,428 |
39 |
12 |
(27) |
− |
59 |
1,511 |
Environmental protection and remediation costs |
|
621 |
56 |
1 |
(22) |
− |
39 |
695 |
Employee obligations |
|
1,744 |
671 |
1 |
(310) |
(7) |
67 |
2,166 |
Sales and purchase risks |
|
715 |
432 |
− |
(121) |
(13) |
52 |
1,065 |
Restructuring measures |
|
156 |
2 |
− |
(24) |
(1) |
9 |
142 |
Litigation, damage claims, guarantees and similar obligations |
|
112 |
5 |
2 |
(6) |
(1) |
(6) |
106 |
Other |
|
1,570 |
156 |
− |
(108) |
(6) |
55 |
1,667 |
Total |
|
6,346 |
1,361 |
16 |
(618) |
(28) |
275 |
7,352 |
On March 31, 2015, other provisions had increased by €1,006 million compared with the end of 2014. Currency effects were responsible for an increase of €276 million.
Provisions for environmental protection measures and remediation rose on account of obligations for the return of emissions certificates to the respective national trading offices. Furthermore, the present value of long-term provisions increased as a result of the adjustment of the discount rate from 4% to 3%.
In provisions for employee obligations, proportional additions for variable compensation components in the current business year were nearly offset by utilizations for the previous year. The bulk of the payout for variable compensation for 2014 will take place in the second quarter of 2015. Provisions for the long-term incentive program rose considerably in the first quarter of 2015.
Accruals and deferrals for discounts that exceeded the utilization of provisions from the previous year led to a seasonal increase in provisions for sales risks.