Non-current | Current | Total | ||||
---|---|---|---|---|---|---|
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 provision | Jubilee bonuses and post-employment benefits provision | Shield programs provisions | Provision for CO₂ emissions | Other 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 provision | Jubilee bonuses and post-employment benefits provision | Shield programs provisions | Provision for CO₂ emissions | Other 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
NOTE | Provision for jubilee bonuses | Post-employment benefits | Total | |
---|---|---|---|---|
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 |
NOTE | Provision 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 employees | Pensioners | Total | ||||
---|---|---|---|---|---|---|
31/12/2014 | 31/12/2013 | 31/12/2014 |
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 bonuses | Post-employment benefits | Total | ||||
---|---|---|---|---|---|---|
31/12/2014 | 31/12/2013 | 31/12/2014 |
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 bonuses | Post-employment benefits | Total | ||||
---|---|---|---|---|---|---|
31/12/2014 | 31/12/2013 | 31/12/2014 |
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 bonuses | Post-employment benefits | Total | ||||
---|---|---|---|---|---|---|
31/12/2014 |
31/12/2013 (restated data) | 31/12/2014 | 31/12/2014 | 31/12/2014 |
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:
2014 | 2013 | |
---|---|---|
Cost of sales | (3) | (5) |
Administrative expenses | 14 | (21) |
Distribution expenses | (2) | (2) |
9 | (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.