18 Provisions
|
|
Restructuring costs and termination benefits |
|
Environmental costs |
|
Other long-term employee benefits |
|
Other provisions |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2021 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
Changes: |
|
|
|
|
|
|
|
|
|
|
- Additions |
|
44 |
|
- |
|
(3) |
|
8 |
|
49 |
- Releases |
|
(15) |
|
(5) |
|
- |
|
(8) |
|
(28) |
- Uses |
|
(41) |
|
(3) |
|
(4) |
|
(7) |
|
(55) |
- Other change |
|
- |
|
- |
|
- |
|
(2) |
|
(2) |
- Reclassification to held for sale |
|
- |
|
- |
|
(4) |
|
- |
|
(4) |
Total changes |
|
(12) |
|
(8) |
|
(11) |
|
(9) |
|
(40) |
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2022 |
|
41 |
|
29 |
|
29 |
|
25 |
|
124 |
Of which current |
|
40 |
|
2 |
|
4 |
|
4 |
|
50 |
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 1.3% to 4.2%. Depending on the risk profile, the discount rates used at the end of 2022 vary from 4.2% to 5.8%. The balance of provisions measured at present value increased by less than €1 million in 2022 in view of the passage of time (same as in 2021).
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 generally have a term of 1 to 3 years.
The restructuring program following up on the new strategy of DSM, which was launched at the end of 2021, was continued. An additional €9 million was recognized for this program, and €25 million was used during the year. Furthermore, a restructuring program following up on the announced merger of DSM with Firmenich was launched in 2022. A provision of €16 million was recognized for this program. The other additions to the provisions for restructuring costs and termination benefits in 2022 relate mainly to the various smaller restructuring projects (same as in 2021).
The provisions for environmental costs relate to soil clean-up obligations, among other things. These provisions have an average life of around 30 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.
