30. Provisions
|
(in millions of euros) |
costs |
Provision for soil remediation |
Provision for the continued payment of unsocial hours during holidays |
Provision for insolvency of Abellio Germany |
Other provisions |
Total |
|
Balance as at 1 January 2024 |
5 |
75 |
16 |
18 |
88 |
202 |
|
Addition |
4 |
3 |
- |
1 |
21 |
29 |
|
Accrued interest |
- |
2 |
- |
- |
- |
2 |
|
Withdrawal |
-3 |
- |
-12 |
-4 |
-21 |
-40 |
|
Held for sale |
- |
- |
- |
- |
-57 |
-57 |
|
Release |
-1 |
- |
-4 |
-14 |
-6 |
-25 |
|
Total changes |
- |
5 |
-16 |
-17 |
-63 |
-91 |
|
Balance as at 31 December 2024 |
5 |
80 |
- |
1 |
25 |
111 |
|
Presented under: |
||||||
|
Non-current |
3 |
66 |
- |
- |
21 |
90 |
|
Current |
2 |
14 |
- |
1 |
4 |
21 |
Provision for reorganisation costs
The purpose of the provision for reorganisation costs is to cover the costs arising from reorganisation measures. Most of the provision is needed for redundancy schemes, bridging payments and the redeployment of staff whose jobs have been eliminated as a result of reorganisations. Important starting points for determining the provisions for reorganisation costs at year-end 2024 and 2023 in the Netherlands are:
the collective labour agreement arrangements covering the period 1 July 2022 to 1 March 2025;
estimates with respect to advancement and outflow during the reorganisation.
Provision for soil remediation
The provision for soil remediation is for managing and remedying environmental damage. The provision is calculated using an average discount rate of 2.5% (2023: 2.5%).
Provision for the continued payment of unsocial hours during holidays
The provision for claimed irregular hours allowance for days’ leave over and above the statutory minimum was settled in 2024.
Provision for insolvency of Abellio Germany
The provision for guarantees in relation to the former German holding company Abellio GmbH was settled in 2024.
Other provisions
‘Other provisions’ include provisions for losses arising from accidents and fire, and provisions for staff-related matters.
Accounting policy
A provision is recognised in the balance sheet whenever the Group has a legal or constructive obligation as a consequence of a past event and it is probable that the settlement of that obligation will entail an outflow of funds.
Provisions are determined by calculating the net present value of expected future cash flows based on a pre-tax discount rate that reflects both the current market valuations of the time value of money and, where necessary, the specific risks relating to the liability.
Reorganisation costs and non-activity schemes
Provisions are made in connection with reorganisations if a formal, detailed plan has been drawn up for the reorganisation and the reorganisation is either under way or has been publicly announced. No provision is made for future operating expenses. Provisions for reorganisations relate mainly to redundancy schemes, bridging payments and the redeployment of redundant staff.
Provision for soil remediation
The provision for soil remediation work is intended to cover the costs incurred for the upkeep or repair of operating assets. In line with the Group's published environmental policy and the applicable legal requirements, provisions for the control and remediation of environmental contamination are formed when the contamination occurs or is found to have occurred.
Other provisions
Provisions are formed for losses arising from fire, accidents, guarantees issued, claims and other matters such as outflow of funds with regard to guarantees and settlement of possible other liabilities related to legal and litigation costs.