In CHF million
|Balance at 31 December 2014||29||646||106||146||927|
|Additions to provisions||70||–||208||23||301|
|Release of unused provisions||(3)||(86)||–||(7)||(96)|
|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|
|Additions to provisions||50||5||26||68||149|
|Release of unused provisions||(30)||(105)||–||(11)||(146)|
|Use of provisions||(29)||(7)||(186)||(16)||(238)|
|Balance at 31 December 2016||79||542||150||191||962|
|Thereof current provisions||74||–||10||98||182|
|Thereof non-current provisions||5||542||140||93||780|
Provisions for employee reduction programme
In the fourth quarter of 2016, Swisscom recognised a provision for personnel reduction costs of CHF 50 million. Swisscom operates in a highly competitive market characterised by radical transformations, fierce rivalry and pricing pressures. Swisscom has set itself the goal of reducing its cost basis from 2015 through to 2020 by over CHF 300 million. This is to be achieved through organisational changes, job reductions, optimisation of processes and the migration to All-IP technology. Resources will thus be freed up in order to continue to invest in infrastructure, new fields of activity and to exploit opportunities resulting from digitalisation. The measures planned will result in the elimination of positions in Switzerland and in employees participating in the social plan.
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 51 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 74 million.
Provisions for regulatory and competition-law proceedings
On the basis of legal opinions, provisions for regulatory and competition-law proceedings were raised and then released in the third and fourth quarters of 2015 which are presented on a net basis for procedural reasons.
Other provisions include provisions for environmental, contractual and tax risks. The non-current portion of the provisions will most likely be settled in 2017 and 2018.