16 Other provisions (XLS:) Download millions of € Provisions for termination benefits Other provisions for personnel costs Provisions for restoration obligations Provisions for litigation risks Provisions for sales and procurement support Miscellaneous other provisions Total 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 Transfer resulting from change in accounting standards 0 0 0 0 0 (184) (184) Changes in the composition of the Group 0 28 17 0 0 33 77 Currency translation adjustments 0 10 10 1 3 1 26 Addition 29 2,098 191 75 437 262 3,092 Use (122) (1,763) (86) (26) (414) (200) (2,611) Reversal (3) (70) (77) (57) (16) (98) (321) Interest effect 0 142 88 1 0 (1) 230 Other changes 1 (94) 0 0 0 12 (81) AT DECEMBER 31, 2019 160 3,361 1,707 284 466 685 6,663 Of which: current 159 1,694 31 261 466 471 3,082 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 to the respective currency area. To this end, Deutsche Telekom determines discount rates with maturities of up to 30 years. In 2019, the discount rates ranged from 0.00 to 2.41 percent (2018: from 0.06 to 3.08 percent) in the euro currency area and from 2.60 to 4.35 percent (2018: from 3.87 to 6.21 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 109.0 million (December 31, 2018: EUR 102.7 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 111.7 million (December 31, 2018: EUR 107.3 million). Provisions for termination benefits and other personnel provisions include provisions for staff restructuring. These provisions developed as follows in the 2019 financial year: (XLS:) Download millions of € Jan. 1, 2019 Addition Use Reversal Other changes Dec. 31, 2019 Severance and voluntary redundancy models 255 29 (122) (3) 1 160 Phased retirement 608 584 (395) 0 (64) 733 863 614 (517) (3) (63) 893 Of which: current 352 372 Other personnel provisions increased by EUR 0.4 billion. EUR 0.2 billion of this increase relates to the provisions recognized for the Civil Service Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK) and is attributable to the subsequent measurement of the present value determined using actuarial principles (interest effect) and other additions. Other provisions for personnel costs also 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. 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. For further information on litigation risks from pending lawsuits, please refer to Note 37 “Contingencies.”
