DCSIMG
19 Provisions - Annual Report 2015 - DSM

19 Provisions

The total of non-current and current provisions decreased by €8 million. This is the balance of the following changes:

Table 1

 
Restructuring costs and termination benefits
Environmental costs
Other long-term employee benefits
Other provisions
Total
           
Balance at 1 January 2014
66
30
43
23
162
Of which current
50
4
4
7
65
           
Changes in 2014:
         
- Additions
33
4
7
11
55
- Releases
(8)
-
-
(8)
(16)
- Uses
(42)
(4)
(3)
(6)
(55)
- Exchange differences
1
-
-
-
1
- Other reclassifications
(7)
(2)
-
9
-
           
Total changes
(23)
(2)
4
6
(15)
           
Balance at 31 December 2014
43
28
47
29
147
Of which current
24
2
4
12
42
           
Changes in 2015:
         
- Additions
51
3
5
23
82
- Releases
(7)
-
-
(19)
(26)
- Uses
(48)
(4)
(2)
(7)
(61)
- Acquisitions
-
-
4
-
4
- Disposals
(4)
(1)
(9)
(1)
(15)
- Exchange differences
4
1
-
(2)
3
- Other reclassifications
-
-
(1)
6
5
           
Total changes
(4)
(1)
(3)
-
(8)
           
Balance at 31 December 2015
39
27
44
29
139
Of which current
28
2
3
8
41

In cases where the effect of the time value of money is material, provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The discount rate used, increased from 1.8% to 2.0%. The balance of provisions measured at present value increased by €0.4 million in 2015 in view of the passage of time.

The provisions for restructuring costs and termination benefits mainly relate to the costs of redundancy schemes connected to the dismissal and transfer of employees and costs of termination of contracts. These provisions have an average life of 1 to 3 years. No material restructuring provisions for the adjustments to the organizational and operating model or the Nutrition-specific improvement program were recognized in 2015 because the recognition criteria of IFRS were not (yet) met.

The provisions for environmental costs relate to soil clean-up obligations, among other things. These provisions have an average life of more than 10 years.

The provisions for other long-term employee benefits mainly relate to length-of-service and end-of-service payments. The average life of this provision is estimated to be between 10 and 12 years.

Several items have been combined under Other provisions, for example onerous contracts and legal risks. These provisions have an average life of 1 to 3 years.

The additions to the provisions for restructuring costs and termination benefits in 2015 mainly relate to the various restructuring projects (same as in 2014).