18 Provisions

Index
1
2
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4
5
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7
8
9
10
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19
20
21
22
23
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25
26
27
28
29
30

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

Balance at 1 January 2020	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

Changes:
- Additions	56	-	6	9	71
- Releases	(10)	-	-	(12)	(22)
- Uses	(43)	(3)	(6)	(17)	(69)
- Other change	-	-	(1)	1	-
Total changes	3	(3)	(1)	(19)	(20)

Balance at 31 December 2021	53	37	40	34	164
Of which current	49	4	5	10	68

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 0.7% to 1.3%. The balance of provisions measured at present value increased by less than €1 million in 2021 in view of the passage of time (same as in 2020).

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 2021, a restructuring program was launched for the Materials cluster. A provision of €16 million was recognized for this program, of which €6 million was used during the year.

Furthermore, a restructuring program following up on the new strategy of DSM was launched at the end of 2021. A provision of €28 million was recognized for this program, of which €3 million was used during the year.

The other additions to the provisions for restructuring costs and termination benefits in 2021 relate mainly to the various smaller restructuring projects (same as in 2020).

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 10 years.