In CHF million
|Balance at 31 December 2013||45||481||118||155||799|
|Additions to provisions||8||162||3||44||217|
|Release of unused provisions||(9)||(6)||–||(30)||(45)|
|Use of provisions||(16)||(4)||(17)||(24)||(61)|
|Additions from business combinations||1||–||–||1||2|
|Foreign currency translation adjustments||–||–||–||(1)||(1)|
|Balance at 31 December 2014||29||646||106||146||927|
|Additions to provisions||70||–||208||23||301|
|Release of unused provisions||(3)||(62)||–||(7)||(72)|
|Use of provisions||(8)||(2)||(4)||(14)||(28)|
|Additions from business combinations||–||–||–||2||2|
|Disposals from sales of subsidiaries||–||–||–||(2)||(2)|
|Foreign currency translation adjustments||–||–||–||(2)||(2)|
|Balance at 31 December 2015||88||593||310||148||1,139|
|Thereof current provisions||86||–||186||79||351|
|Thereof non-current provisions||2||593||124||69||788|
Provisions for employee reduction programme
In the fourth quarter of 2015, Swisscom recognised a provision for personnel reduction costs of CHF 70 million. Swisscom operates in a market characterized by intense competition and fierce pricing dynamics. For this reason, Swisscom has set itself the goal of reducing its cost basis. This is to be achieved through organisational changes, job reductions, optimization of processes and the migration to All-IP technology. In addition, business change will impact the pattern of employment opportunities of Swisscom: job positions in traditional businesses will in part be lost and will be replaced by positions created in new, innovative areas. Swisscom assumes that some 700 employees in Switzerland will participate in the social plan as a result of the reductions primarily in support areas. The associated costs are estimated at CHF 70 million.
Provisions for dismantling and restoration costs
The level of provisions is determined to a substantial degree by the level of estimated future dismantling and restoration costs as well as the timing of the dismantling. An increase of estimated costs by 10% would result in an increase of CHF 56 million in the amount of the provision. A shift in the timing of dismantling by a further ten years would lead to a reduction in the provision by CHF 60 million.
Provisions for regulatory and competition-law proceedings
On the basis of legal opinions, provisions for regulatory and anti-trust-law proceedings were recognised and released in the third and fourth quarters of 2015, whereby these are presented on a net basis on procedural grounds.
Other provisions include provisions for environmental, contractual and tax risks. The non-current portion of the provisions will most likely be settled between 2016 and 2018.