Year 2017

19. Provisions

 

2017

         

EUR million

Restructuring

provision

Provision

for damage

Onerous contracts

Other

Total

Carrying amount on 1 Jan

13.1

0.0

4.4

0.3

17.8

Translation difference

       

0.0

Increase in provisions

1.7

 

17.3

0.2

19.2

Used provisions

-3.5

 

-3.0

-0.2

-6.7

Unused amounts reversed

-1.3

 

-1.4

 

-2.8

Carrying amount on 31 Dec

10.0

0.0

17.3

0.3

27.6

           

2016

         

EUR million

Restructuring

provision

Provision

for damage

Onerous contracts

Other

Total

Carrying amount on 1 Jan

14.8

0.0

9.8

2.6

27.3

Translation difference

   

2.5

 

2.5

Increase in provisions

4.5

 

5.2

 

9.7

Used provisions

-5.4

 

-7.7

-1.8

-14.9

Unused amounts reversed

-0.9

 

-5.4

-0.6

-6.9

Carrying amount on 31 Dec

13.1

0.0

4.4

0.3

17.8

           

2015

         

EUR million

Restructuring

provision

Provision

for damage

Onerous contracts

Other

Total

Carrying amount on 1 Jan

13.7

1.6

0.0

3.3

18.6

Translation difference

       

0.0

Increase in provisions

7.3

 

9.8

0.6

17.7

Used provisions

-1.1

-1.6

 

-1.3

-4.0

Unused amounts reversed

-5.1

     

-5.1

Carrying amount on 31 Dec

14.8

0.0

9.8

2.6

27.3

           

EUR million

   

2017

2016

2015

Long-term provisions

   

20.6

14.3

17.0

Short-term provisions

   

6.9

3.5

10.2

Total

   

27.6

17.8

27.3

           

Restructuring provisions

         

Restructuring provisions are primarily related to the statutory labor negotiations conducted in recent years. A significant portion of the long-term personnel expense provisions in the Group's Finnish companies is the employer's liability component within the unemployment insurance contribution towards the Unemployment Insurance Fund.

           

Onerous contracts

         

Majority of provisions for onerous contracts made in years 2015-2017 relate to Russian real-estate leases and customer agreements. Provisions have been recognized to the amount of expected obligations exceeding the income arising from the contracts during the years 2018-2020. The provisions are regularly reviewed as the amount of expected obligations are dependent on the anticipated costs for fulfilling the contracts which vary over time. The provisions are also dependent on the exchange rate of the Russian ruble against the US dollar and are based on assumption that the USD/RUB exhange rate is 60. In 2016, the Group also recognized a provision for OpusCapita's loss-making customer agreements.