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Deutsche Post World Net Annual Report 2007
41 Other provisions
€m 2006 2007
Other non-current provisions 4,780 3,015
Other current provisions 1,656 1,703
Other provisions 6,4361) 4,718
1) Prior-period amount restated, see Note 4.
Of the additions to provisions for other employee bene ts amounting
to million, million is attributable to Deutsche Post AG and
million to the Deutsche Postbank Group. is provision primarily
covers workforce reduction expenses (severance payments, transitional
bene ts, partial retirement, etc.).
Technical reserves (insurance) mainly include unearned premiums and
aggregate policy reserves for the insurance business of BHW Lebens-
versicherung AG, PB Lebensversicherung AG and PB Versicherung AG.
e provisions were reduced to million due to Deutsche Postbank
Group selling the insurance companies.
e provision for postage stamps covers outstanding obligations to cus-
tomers for mail and parcel deliveries from postage stamps sold but still
unused by customers, and is based on studies by market research com-
panies. It is measured at the nominal value of the stamps issued.
41.2 Miscellaneous provisions
€m 2006 2007
Provisions for the home savings business 727 710
Tax provisions 223 256
STAR restructuring provision 277 175
Risks from business activities 162 141
Postal Civil Service Health Insurance Fund 97 97
Litigation costs 68 84
Welfare benefi ts for civil servants 33 29
Staff-related provisions 27 25
Other provisions 569 558
Miscellaneous provisions 2,183 2,075
Provisions for BHW Bausparkasse AG’s home savings business were rec-
ognised for the reimbursement of arrangement fees and for interest rate
bonuses to be paid retroactively.
Of the tax provisions, million (previous year: million) are ac-
counted for by VAT, million (previous year: million) by customs
and duties and million (previous year: million) by other tax
provisions.
e provisions for restructuring measures, which relate primarily to
termination bene t obligations to employees (partial retirement pro-
grammes, transitional bene ts) and expenses from the closure of ter-
minals, were recognised as part of the Group-wide STAR value creation
and integration programme.
Risks from business activities comprise obligations such as expected
losses and warranty obligations.
Miscellaneous other provisions include a large number of individual
items, none of which exceeds million.
41.1 Changes in other provisions
€m Other
employee
benefi ts
Technical
reserves
(insurance)
Postage
stamps
Miscellaneous
provisions Total
As at 1 January 2007 1,694 2,059 500 2,183 6,436
Changes in consolidated group 53 –1,800 0 12 –1,735
Utilisation – 657 –241 –500 –904 –2,302
Currency translation differences –15 –29 0 –33 –77
Reversal –122 0 0 –104 –226
Interest cost added back 41 1 0 5 47
Reclassifi cation 800–35
Additions 652 499 500 919 2,570
As at 31 December 2007 1,654 489 500 2,075 4,718