15 Other provisions

millions of €

 

Provi­sions for termi­nation benefits

Other provi­sions for person­nel costs

Provi­sions for resto¡ration obli­gations

Provi­sions for litigation risks

Provi­sions for sales and procure­ment support

Miscel­laneous other provi­sions

Total

AT DECEMBER 31, 2016

197

2,554

1,652

328

423

1,234

6,388

Of which: current

178

1,472

51

318

423

626

3,068

Changes in the composition of the Group

0

1

0

0

0

1

2

Currency translation adjustments

0

(59)

(65)

(2)

(25)

(44)

(195)

Addition

41

1,911

121

86

754

432

3,345

Use

(54)

(1,520)

(57)

(69)

(423)

(390)

(2,513)

Reversal

(17)

(121)

(68)

(17)

(23)

(163)

(409)

Interest effect

0

0

22

0

0

11

33

Other changes

0

(109)

(15)

0

0

0

(124)

AT DECEMBER 31, 2017

166

2,657

1,591

326

706

1,080

6,527

Of which: current

166

1,481

40

311

706

668

3,372

Transfer resulting from change in accounting standards

0

0

0

0

(46)

(22)

(68)

Changes in the composition of the Group

1

4

10

1

0

7

24

Currency translation adjustments

0

15

22

2

4

10

54

Addition

125

1,922

113

129

268

337

2,894

Use

(35)

(1,482)

(30)

(27)

(479)

(366)

(2,419)

Reversal

(3)

(74)

(101)

(144)

(4)

(177)

(503)

Interest effect

0

28

(16)

0

0

(2)

9

Other changes

0

(61)

(24)

1

6

(5)

(82)

AT DECEMBER 31, 2018

255

3,010

1,564

289

456

862

6,435

Of which: current

168

1,662

35

266

456

557

3,144

In the measurement of the other provisions, Deutsche Telekom is exposed to interest rate fluctuations, which is why the effect of a possible change in the interest rate on the principal non-current provisions was simulated. The other, non-staff-related provisions are discounted using maturity-related discount rates specific for the respective currency area. To this end, Deutsche Telekom determines discount rates with maturities of up to 30 years. In 2018, the discount rates ranged from 0.06 to 3.08 percent (2017: from 0.00 to 3.08 percent) in the euro currency area and from 3.87 to 6.21 percent (2017: from 2.42 to 4.96 percent) in the U.S. dollar currency area. If the discount rate were increased by 50 basis points with no other change in the assumptions, the present value of the principal other non-current provisions would decrease by EUR 102.7 million (December 31, 2017: EUR 103.1 million). If the discount rate were decreased by 50 basis points with no other change in the assumptions, the present value of the principal other non-current provisions would increase by EUR 107.3 million (December 31, 2017: EUR 111.6 million).

Provisions for termination benefits and other personnel provisions include provisions for staff restructuring. These provisions developed as follows in the 2018 financial year:

millions of €

 

Jan. 1, 2018

Addition

Use

Reversal

Other changes

Dec. 31, 2018

Severance and voluntary redundancy models

167

125

(35)

(3)

0

255

Phased retirement

489

534

(360)

0

(55)

608

 

656

659

(395)

(3)

(55)

863

Of which: current

316

 

 

 

 

352

Other provisions for personnel costs include provisions for deferred compensation and allowances, as well as for anniversary gifts.

Provisions for restoration obligations include the estimated costs for dismantling and removing an asset, and restoring the site on which it is located. The estimated costs are included in the costs of the relevant asset.

The provisions for litigation risks primarily relate to possible settlements attributable to pending lawsuits. For further information, please refer to Note 36 “Contingencies”.

Provisions for sales and procurement support are recognized for dealer commissions, subsidies for advertising expenses, and reimbursements.

Miscellaneous other provisions include a large number of low-value individual items, such as provisions related to executory contracts, the disposal of businesses and site closures, in particular in prior financial years, as well as warranty and environmental damage provisions.