Notes to the Consolidated Financial Statements

21. Provisions

Changes in provisions during 2012:

€ 000

Restructuring provision

Unprofitable agreements

Total

1.1.2012

1,967

382

2,349

Increase in provisions

1,312

482

1,793

Provisions used

-2,552

 -326

-2,878

Reversals of unused provisions

-

-

-

31.12.2012

727

538

1 264

       


Changes in provisions during 2011:

€ 000

Restructuring provision

Unprofitable agreements

Total

1.1.2011

0

133

133

Increase in provisions

4,874

365

5,239

Provisions used

-2,907

 -116

-3,023

Reversals of unused provisions

-

-

-

31.12.2011

 1,967

382

2,349

       

Restructuring provision

The restructuring provisions are related to personnel negotiations conducted during the financial year.


Unprofitable agreements

A loss provision is created for fixed-price projects if it becomes apparent that the completion of the project will require significantly more work input than has been estimated in connection with selling the project and can be invoiced from the customer on the basis of the agreement.

On the balance sheet date of 31 December 2012, there were six fixed-price projects for which loss provisions had been recorded on the basis of remaining work.