2025 in EUR m | Employee benefits | Long-term incentive plans | Restruc- turing | Legal and tax | Onerous contracts | Property and other | Total |
Balance at January 1, 2025 | 24.1 | 31.0 | 11.5 | 83.5 | 2.3 | 46.0 | 198.4 |
Additions | 3.7 | 48.5 | 59.9 | 15.4 | - | 10.9 | 138.4 |
Utilized | (3.5) | (1.8) | (23.3) | (3.4) | (1.2) | (0.3) | (33.5) |
Unused reversed | (2.0) | - | (1.6) | (24.1) | - | (6.5) | (34.2) |
Unwind of discount/change in discount rate | - | - | - | 0.1 | 0.2 | 1.3 | 1.6 |
Exchange differences | (0.7) | 0.6 | (0.7) | (0.7) | - | (1.8) | (3.3) |
Balance at December 31, 2025 | 21.6 | 78.3 | 45.8 | 70.8 | 1.3 | 49.6 | 267.4 |
Analysis of total provisions | |||||||
Long-term | 21.3 | 76.9 | 2.2 | 34.3 | 0.2 | 36.6 | 171.5 |
Short-term | 0.3 | 1.4 | 43.6 | 36.5 | 1.1 | 13.0 | 95.9 |
2024 in EUR m | |||||||
Balance at January 1, 2024 | 25.0 | 16.1 | 8.4 | 71.7 | - | 40.9 | 162.1 |
Additions | 5.9 | 16.6 | 9.8 | 24.9 | - | 7.8 | 65.0 |
Utilized | (3.9) | (1.7) | (6.3) | (3.0) | (1.8) | (1.4) | (18.1) |
Unused reversed | (2.9) | - | (0.2) | (7.7) | - | (1.8) | (12.6) |
Unwind of discount/change in discount rate | - | - | - | - | 0.1 | 1.1 | 1.2 |
Acquisition of subsidiaries | - | - | - | - | 4.0 | - | 4.0 |
Exchange differences | - | - | (0.2) | (2.4) | - | (0.6) | (3.2) |
Balance at December 31, 2024 | 24.1 | 31.0 | 11.5 | 83.5 | 2.3 | 46.0 | 198.4 |
Analysis of total provisions | |||||||
Long-term | 23.8 | 29.8 | 2.4 | 42.5 | 1.3 | 43.6 | 143.4 |
Short-term | 0.3 | 1.2 | 9.1 | 41.0 | 1.0 | 2.4 | 55.0 |
2023 in EUR m | |||||||
Balance at January 1, 2023 | 25.9 | 5.3 | 15.7 | 77.3 | 1.9 | 46.6 | 172.7 |
Additions | 15.8 | 12.0 | 6.1 | 8.5 | - | 2.4 | 44.8 |
Utilized | (13.8) | (1.9) | (5.7) | (4.5) | (2.0) | (2.6) | (30.5) |
Unused reversed | (2.5) | - | (7.7) | (11.6) | - | (6.2) | (28.0) |
Unwind of discount/change in discount rate | - | - | - | 0.1 | 0.1 | 1.3 | 1.5 |
Exchange differences | (0.4) | 0.7 | - | 1.9 | - | (0.6) | 1.6 |
Balance at December 31, 2023 | 25.0 | 16.1 | 8.4 | 71.7 | - | 40.9 | 162.1 |
Analysis of total provisions | |||||||
Long-term | 24.5 | 12.1 | 0.6 | 33.6 | - | 38.4 | 109.2 |
Short-term | 0.5 | 4.0 | 7.8 | 38.1 | - | 2.5 | 52.9 |
In addition to the defined benefit plans as described in Note 5.3, the Group provides other benefits to employees in certain countries. These include long-term service leave or payments in lieu and post-employment benefits. The expected costs of the long-term benefits are accrued over the period of employment, using a methodology similar to that for defined benefit plans.
The provision is for cash settled long-term incentive plans for senior management (Note 5.2).
The restructuring charges in 2025 mainly relate to businesses in Germany, France and the United States (2024: France and the United States; 2023: Canada and Scandinavia). The provisions remaining at the end of the year relate principally to businesses in Germany and France (2024: France, Germany, Canada and Italy; 2023: Canada, Germany and Scandinavia).
The Group has recorded provisions for a number of legal and tax issues, principally in Europe, Latin America and North America. The timing of settlement and/or the amount of cash outflows is uncertain. In 2025, 2024 and 2023, provisions for non-income tax risks and litigations were released by subsidiaries in Europe and SEA region due to the expiration of statutes of limitations and the occurrence of favorable litigation outcomes.
The Group has recorded provisions for ongoing activities where the unavoidable costs of meeting obligations under customer supply contracts exceed the economic benefits expected to be received.
Provisions have been recorded principally for property-related issues and a range of other, individually immaterial, items.
Provisions for legal claims, non-income tax disputes, onerous contracts, property disputes, restructuring costs and other matters are recognized when the Group has a present or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated.
A contract is onerous when the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received. If the Group has a contract that is onerous, a provision is recognized at the present value of the obligation. Restructuring provisions principally comprise employee termination benefits, legal, property and other related costs. Provisions are not recognized for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense.
Provisions may be recorded for matters over which there is uncertainty, therefore requiring a significant degree of assumption and estimation when determining the timing and the probable future outflow of resources.