25. Provisions

Non-currentCurrentTotal
31/12/2014

31/12/2013

(restated data)

31/12/2014

31/12/2013

(restated data)

31/12/2014

31/12/2013

(restated data)

Environmental 414 346 37 36 451 382
Jubilee bonuses and
post-employment
benefits
251 262 33 42 284 304
Shield programs - - 38 43 38 43
CO₂ emissions - - 334 320 334 320
Other 44 50 206 380 250 430
709 658 648 821 1 357 1 479

Change in provisions in 2014

Environmental provisionJubilee bonuses and post-employment benefits provisionShield programs provisionsProvision for CO₂ emissionsOther
provisions
Total
01/01/2014 382 304 43 320 430 1 479
Recognition 79 7 21 333 136 576
Acquisition of subsidiary 18 - - 3 - 21
Usage (29) (28) (23) (319) (247) (646)
Reversal (7) - (3) (9) (70) (89)
Foreign exchange differences 8 1 - 6 1 16
451 284 38 334 250 1 357

Change in provisions in 2013

(restated data)Environmental provisionJubilee bonuses and post-employment benefits provisionShield programs provisionsProvision for CO₂ emissionsOther
provisions
Total
01/01/2013 374 313 42 378 355 1 462
Recognition 13 27 15 307 302 664
Acquisition of subsidiary 39 - - - 1 40
Usage (34) (36) (8) (357) (160) (595)
Reversal (5) - (6) (2) (68) (81)
Foreign exchange differences (5) - - (6) - (11)
382 304 43 320 430 1 479

                

25.1. Environmental provision

The Group has legal obligation to clean contaminated land – water environment in the area of production plants, fuel stations, fuel terminals and warehouses.
The Management Board estimated the provision for environmental risks regarding the removal of contaminants based on analyzes provided by independent experts or based on own analysis. The amount of the provision is the best estimate of future expenses based on the average level of costs incurred for the reclamation in relation to individual objects.
As the Czech Republic is concerned, the Government of the Czech Republic is responsible for liabilities arising from contamination of land-water environment before date of entity’s privatization (so called Old Ecological Burdens). In case of new contamination that arose after date of the entity’s privatization the Group is responsible for those liabilities.
In 2014, the value of environmental provisions has increased mainly due to the „frequency” of the remediation processes occurrence and higher unit costs of cleaning in the fuel stations segment. Should 2013 assumptions were used, the environmental provision would have been lower by PLN (52) million.
Additional information regarding estimation of provision for environmental risk is presented in note ‎3.4.21.1.

25.2. Provision for jubilee bonuses and post-employment benefits

25.2.1. Change in employee benefits obligations

NOTEProvision for jubilee bonusesPost-employment benefitsTotal
01/01/2014 161 143 304
Current service costs 7 5 12
Interest expenses 7 6 13
Actuarial gains and losses arising from changes in 30 20 50
demographic assumptions 1 1 2
financial assumptions 23 19 42
other 6 - 6
Past employment costs (7) (23) (30)
Change in share structure (1) 1 -
Payments under program (25) (6) (31)
Other (9) (25) (34)
25 163 121 284

 NOTEProvision for jubilee bonuses  Post-employment benefits
(restated data) 
Total
01/01/2013   179 134 313
Current service costs   8 4 12
Interest expenses   7 5 12
Actuarial gains and losses arising from changes in   (8) (4) (12)
demographic assumptions   1 11 12
financial assumptions   (6) (15) (21)
other   (3)  -  (3)
Past employment costs   (3) 4 1
Payments under program   (23) (10) (33)
Other   1 10 11
  25 161 143 304

The carrying amount of employee benefits liabilities is identical to their present value as at 31 December 2014 and 31 December 2013.

25.2.2. Employee benefits liabilities divided into active and retired employees

Active employeesPensionersTotal
31/12/201431/12/201331/12/2014

31/12/2013

(restated data)

31/12/2014

31/12/2013

(restated data)

Poland 226 215 37 42 263 257
Czech Republic 13 10 - - 13 10
Lithuania, Latvia, Estonia 8 37 - - 8 37
247 262 37 42 284 304

25.2.3. Employee benefits liabilities divided into geographical

Provision for jubilee bonusesPost-employment benefitsTotal
31/12/201431/12/201331/12/2014

31/12/2013

(restated data)

31/12/2014

31/12/2013

(restated data)

Poland 161 151 102 106 263 257
Czech Republic 2 2 11 8 13 10
Lithuania, Latvia, Estonia - 8 8 29 8 37
163 161 121 143 284 304

25.2.4. Sensitivity analysis to changes in actuarial assumptions

The Group analysed the impact of the financial and demographic assumptions and calculated that the change of remuneration ratio by +/- 1.0 percentage points, the discount rate by +/- 0.5 percentage points and the rate of turnover by +/- 0.5  percentage point is no higher than PLN 6 million. Therefore, the Group does not present any detailed information.
As at 31 December 2014, the Group used the following actuarial assumptions that had an impact on the level of actuarial provisions for the Polish entities: discount rate 2.6%, expected inflation 2.5%, the remuneration increase rate: 0% in years 2015-2017 and 2.5% in subsequent years. In the Group's foreign entities the main impact had: discount rate: from 0.62% to 1.84% and termination of collective agreement in AB ORLEN Lietuva in 2014 resulted in provision reversal.
The Group carries out the employee benefit payments from current resources. As at 31 December 2014 there were no funded plans and the Group paid no contributions to fund liabilities.

25.2.5. Employee benefits maturity and payments of liabilities analysis

25.2.5.1. Maturity of employee benefits analysis

Provision for jubilee bonusesPost-employment benefitsTotal
31/12/201431/12/201331/12/2014

31/12/2013

(restated data)

31/12/2014

31/12/2013

(restated data)

up to 1 year 15 21 18 21 33 42
from 1 to 5 years 49 51 15 26 64 77
above 5 years 99 89 88 96 187 185
163 161 121 143 284 304

25.2.5.2. The weighted average duration of liabilities for post-employment benefits (in years)

 31/12/2014

31/12/2013

(restated data)

Poland 10 10
Czech Republic 10 9
Lithuania, Latvia, Estonia 11 11

25.2.5.3. Ageing of employee benefits payments analysis

Provision for jubilee bonusesPost-employment benefitsTotal
31/12/2014

31/12/2013

(restated data)

31/12/201431/12/201431/12/2014

31/12/2013

(restated data)

up to 1 year 15 22 18 22 33 44
from 1 to 5 years 66 71 17 31 83 102
above 5 years 406 431 594 896 1 000 1 327
487 524 629 949 1 116 1 473

25.2.6. Total employee benefits expenses recognized in the statement of profit or loss and other comprehensive income

The total employee benefit expenses for 2014 and 2013 amounted to PLN (11) million and PLN (24) million, respectively and are recognized: in profit or loss statement of PLN 9 million and PLN (28) million, respectively and in other comprehensive income of PLN (20) million and PLN 4 million, respectively.
Provisions for employee benefits recognized in profit or loss accounted as follows:

 20142013
Cost of sales (3) (5)
Administrative expenses 14  (21)
Distribution expenses (2) (2)
  (28)

In 2014 the amount of provision for employee benefits changed as the result of update of assumptions, mainly in relation to discount rate, projected inflation and expected remuneration increase ratio. Should the 2013 assumptions be used, the provision for the employee benefits would be lower by PLN (40) million.
Additional information regarding the payment of jubilee bonuses and post-employment benefits is presented in note 3.4.21.2.

25.3. Shield programs provision

Employee shield programs were launched to support the restructuring processes conducted in the Group. Depending on particular situation the programs provide i.e. additional severances, training packages for employees with whom the employment agreement was or would be dissolved and relocation packages for the employees, who agreed to change the workplace.
In 2014 the assumptions used in calculation of shield programs provision did not change in comparison to those used in prior year.

25.4.  Provision for CO2 emissions

The Group recognizes provision for estimated CO2 emissions in the reporting period. The cost of recognized provision is compensated with settlement of deferred income on CO2 emission rights granted free of charge. The description of the accounting principles applied is presented in note 3.4.21.4.

25.5. Other provisions

As at 31 December 2014 and as at 31 December 2013 other provisions comprise mainly: provisions for tax liabilities of previous years of PLN 28 million and PLN 216 million, respectively and provisions for the risk of unfavorable decisions of pending administrative or court proceedings of PLN 145 million and PLN 116 million, respectively.