18 Provisions

Index
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	Restructuring costs and termination benefits	Environmental costs	Other long-term employee benefits	Other provisions	Total

Balance at 1 January 2019	17	58	39	39	153
Of which current	12	10	3	12	37

Changes:
- Additions	43	19	4	5	71
- Releases	(3)	(13)	-	(3)	(19)
- Uses	(26)	(5)	(3)	(5)	(39)
- Other change	-	-	1	1	2
Total changes	14	1	2	(2)	15

Balance at 31 December 2019	31	59	41	37	168
Of which current	21	13	4	10	48

Changes:
- Additions	86	3	3	12	104
- Releases	(7)	(16)	-	(5)	(28)
- Uses	(62)	(7)	(2)	(4)	(75)
- Reclassification to held for sale	-	-	(4)	-	(4)
- Acquisitions	2	1	3	15	21
- Other change	-	-	-	(2)	(2)
Total changes	19	(19)	-	16	16

Balance at 31 December 2020	50	40	41	53	184
Of which current	42	7	5	7	61

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 decreased from 1.2% to 0.7%. The balance of provisions measured at present value increased by less than €1 million in 2020 in view of the passage of time (same as in 2019).

The provisions for restructuring costs and termination benefits mainly relate to the costs of redundancy schemes connected to the dismissal of employees and costs of termination of contracts. These provisions have an average life of 1 to 3 years.

During 2020, a restructuring program was launched within DSM Nutritional Products to increase its agility to drive above-market profitable growth. By simplifying the operating model and further improving business steering, the program aims to better serve customers and respond to the differentiated needs of their respective end-markets. At the same time, it creates a more efficient organization. A provision of €48 million was recognized for this program, of which €40 million was used during the year.

A restructuring initiative within Materials was launched to leverage synergies, increase operating agility and deliver annual cost savings of €15–20 million. A provision of €19 million was recognized for this program, of which €2 million was used during the year.

The other additions to the provisions for restructuring costs and termination benefits in 2020 relate mainly to the various smaller restructuring projects (same as in 2019).

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

The provisions for other long-term employee benefits relate mainly 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 demolition costs, onerous contracts and legal claims. These provisions have an average life of 1 to 3 years.