Notes to the Consolidated Balance Sheet
Provisions
The movements were:
Deferred tax
liabilities
Pension
liabilities
Other
provisions
Total
Position as at 1 January 2002
357
338
329
1,024
Changes in the consolidation
27
21
3
51
Revaluation/exchange differences
-7
-4
-3
-14
Added/released
-3
96
5
98
Utilised
-
-33
-73
- 106
Other movements
7
-66
-13
-72
Position as at 31 December 2002
381
352
248
981
The provision for pension liabilities relates to pensions and
annuities which have not been insured with third parties.
With effect from 2002. the provisions for early retirement
and other schemes under which people are laid off with
pension-like arrangements have been included in this
item. In 2002 additional pension charges amounted to
€70 million, although half of this amount could be set off
against existing provisions for staff costs. The average
rate of interest used in calculating the net present value
of the provision for pension liabilities, based on current
applicable interest rates in the countries concerned,
is 4% (2001:4%). The other provisions comprise reorga
nisation provisions, provisions formed for receivables from
participating interests, for contracts of suretyship provided
and for current lawsuits. Additions due to planned and
announced restructuring programmes are charged to the
profit and loss account, with the exception of restructuring
programmes relating to recently acquired companies,
which are taken into account in the calculation of goodwill.
€939 million of the provisions (2001: €933 million) has a
term in excess of one year.
FINANCIAL STATEMENTS 2002
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