33 Provisions

The movements in provisions have been disclosed below:

 

 

 

 

 

€ million

Environment

Restructuring

Other

Total

At 1 January 2018

19

18

121

158

Arising during the year

3

8

81

92

Unused amounts reversed

-2

-2

-17

-21

Transfer from one heading to another

0

-2

2

0

Effect of movements in exchange rates

0

0

1

1

Utilized during the year

-1

-14

-9

-24

At 31 December 2018

19

8

179

206

Non-current portion

18

0

137

155

Current portion

1

8

42

51

Total provisions

19

8

179

206

 

 

 

 

 

33.1 Environmental provisions

UCB has retained certain environmental liabilities which were mainly related to the divestiture of Films and Surface Specialties in the past. These liabilities relate to the divested sites on which UCB has retained full responsibility in accordance with the contractual terms agreed upon with Cytec Industries Inc. In 2018 an additional environmental provision related to the Films business was set up.

33.2 Restructuring provisions

The restructuring provisions arising during 2018 are related to further European optimization and reorganization. The utilization is also mainly related to earlier reorganizations in Europe.

33.3 Other provisions

Other provisions relate mainly to:

  • provisions for litigations that comprise mainly provisions where UCB or a subsidiary is or might be a defendant against claims of previous employees;
  • product liability provisions that pertain to the risks related to the normal course of business and for which the Group might be liable by selling these kinds of drugs. UCB is currently defendant in several product liability cases in France in respect of Distilbène, a former product of the UCB Group. The claimants in these actions claim that their mothers took Distilbène during their pregnancy and that as a result of this they suffered bodily injuries. The provision in respect of Distilbène increased by € 31 million to a total of € 99 million to reflect the net estimated future cash outflows. The provision was discounted using a discount rate of 0.83%. If the discount rate would be 25 basis points higher (lower), the provision would decrease (increase) by € 3 million;
  • provisions for restoration costs for leased buildings due to the adoption of IFRS 16 (€ 10 million) (see Note 2.2.1 and Note 39);
  • provisions in respect of the recoverability of non-income tax receivables.

An assessment is performed with respect to the above-mentioned risks together with the Group legal advisers and experts in the different domains.