30. Provisions
|
(in millions of euros) |
Reorganisation provisions |
Provision for soil remediation |
Other provisions |
Total |
|
Balance as at 1 January 2025 |
5 |
80 |
26 |
111 |
|
Allocation |
1 |
- |
14 |
15 |
|
Interest income |
- |
1 |
- |
1 |
|
Withdrawal |
-2 |
- |
-5 |
-7 |
|
Release |
- |
-12 |
-9 |
-21 |
|
Total changes |
-1 |
-11 |
- |
-12 |
|
Balance as at 31 December 2025 |
4 |
69 |
26 |
99 |
|
Included under: |
||||
|
Non-current |
1 |
63 |
23 |
87 |
|
Current |
3 |
6 |
3 |
12 |
Reorganisation provisions
The provision for reorganisation costs is intended to cover the costs incurred in connection with reorganisation measures. The majority of the provision is required for severance payments, bridging payments, and the redeployment of employees whose positions have been eliminated as a result of reorganisations. Important principles for determining the reorganisation provisions at year-end 2025 and 2024 in the Netherlands are:
the collective labour agreement agreements for the period from 1 July 2022 to 1 March 2027;
estimates regarding staff turnover and outflow during the reorganisation.
Provision for soil remediation
The provision for soil remediation serves to control and remedy environmental damage. The provision is calculated using a discount rate of 2.9% on average (2024: 2.5%).
Other provisions
Other provisions include provisions for damage resulting from accidents and fire and provisions for personnel-related matters.
Accounting policy
A provision is recognised in the balance sheet when the Group has a legally enforceable or constructive obligation as a result of a past event and it is probable that an outflow of resources will be required to settle that obligation.
Provisions are determined by discounting the expected future cash flows using a pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the specific risks relating to the obligation.
Reorganisation costs and non-activity schemes
Provisions are recognised for reorganisation when a detailed plan for the reorganisation has been formalised and the reorganisation has commenced or has been publicly announced. No provision is recognised for future operating expenses. The reorganisation provision mainly relates to severance payments, bridging payments, and redeployment of employees whose positions have been eliminated.
Provision for soil remediation
The provision for soil remediation serves to cover expenses incurred to maintain or restore operating assets to a usable condition. In accordance with the Group's published environmental policy and applicable legal obligations, provisions for the control and removal of environmental pollution are made when the pollution occurs or is found to have occurred. A release of the provision may also occur when the land is sold.
Other provisions
Provisions are recognised for damage related to fire, accidents, guarantees provided, claims, and other matters such as outflow of funds in respect of guarantees and settlement of possible other liabilities related to legal and litigation costs.