Note 37 Other interest-bearing provisions
| Non-current portion | Current portion | Total | ||||
| 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |
| Provisions for future expenses of nuclear operations | 39,442 | 29,496 | 336 | 317 | 39,778 | 29,813 |
| Provisions for future expenses of mining operations and other environmental measures/undertakings | 13,070 | 10,890 | 1,534 | 1,085 | 14,604 | 11,975 |
| Personnel-related provisions for non-pension purposes | 3,851 | 3,708 | 1,196 | 1,096 | 5,047 | 4,804 |
| Provisions for tax and legal disputes | 6,301 | 6,022 | 1,636 | 1,527 | 7,937 | 7,549 |
| Other provisions | 1,404 | 1,498 | 277 | 611 | 1,681 | 2,109 |
| Total | 64,068 | 51,614 | 4,979 | 4,636 | 69,047 | 56,250 |
In Sweden a discount rate of 4.5% (5.0%) has been used for provisions for future expenses of nuclear operations. For all other provisions in the Nordic countries the discount rate of 5.0% (5.0%) was used.
In Germany a discount rate of 5.25% (5.5%) was used for provisions for future expenses of nuclear operations and for provisions for future expenses of mining operations and other environmental measures/undertakings. For all other provisions in Germany the discount rate of 5.0% (5.5%) was used.
See also Note 52 to the consolidated accounts.
Provisions for future expenses of nuclear operations:
Vattenfall’s nuclear power producers in Sweden and Germany have a legal obligation upon the cessation of production to decommission and dismantle the nuclear power plants and to restore the plots of land where the plants were located. Further, this obligation also encompasses the safeguarding and final storage of spent radioactive fuel and other radioactive materials used by the plants. The provisions include future expenses for the management of low- and medium-level radioactive waste.
For the Swedish operations, current estimations are that all of the provisions will result in disbursements after 2018.
Current plans for the decommissioning of the German nuclear power operations entail about 94% of the provisions resulting in cash flows after 2010. For 2009 and 2010, respectively, disbursements are estimated at about 3% of the provisions per year.
| Provisions for future expenses of nuclear operations (changes in 2008) | Sweden | Germany | Total |
| Balance brought forward | 21,869 | 7,944 | 29,813 |
| Provisions for the period | 47 | - | 47 |
| Discounting effects | 1,068 | 437 | 1,505 |
| Revaluation (within the balance sheet) | 5,496 | 2,494 | 7,990 |
| Provisions used | -783 | -241 | -1,024 |
| Provisions reversed | - | -129 | -129 |
| Translation differences | - | 1,576 | 1,576 |
| Balance carried forward | 27,6971 | 12,0812 | 39,778 |
1) Of which approximately 22% pertains to the dismantling, etc. of nuclear power plants and approximately 78% to the handling of spent radioactive fuel.
2) Of which approximately 58% pertains to the dismantling, etc. of nuclear power plants and approximately 42% to the handling of spent radioactive fuel.
Provisions for future expenses of mining operations and other environmental measures/undertakings:
Provisions are made for restoring sites and other undertakings connected with the Group’s permits for conducting lignite mining in Germany. Provisions are also made for environmental measures/undertakings within other activities carried out by the Group.
According to current assessments, some 62% of the provisions will result in cash outflows later than 2011. For 2009, disbursements are estimated at about 12% of the provisions, while disbursements for the years 2010 and 2011 are estimated at 19% and 7%, respectively, of the provisions.
| Provisions for mining operations, etc. (changes in 2008) | |
| Balance brought forward | 11,975 |
| Provisions for the period | 389 |
| Discounting effects | 575 |
| Revaluation (within the balance sheet) | 560 |
| Provisions used | -568 |
| Provisions reversed | -264 |
| Translation differences | 1,937 |
| Balance carried forward | 14,604 |
Personnel-related provisions for non-pension purposes:
Provisions are made for future costs relating to redundancy in the form of severance pay and other costs for giving notice to personnel.
Approximately 22% of the provisions that have been made are estimated to result in disbursements in 2009, while about 34% are estimated to be disbursed in 2010 and 2011. Thereafter with approximately 25% between the years 2012-2015. The remaining 19% is estimated to be relatively evenly distributed over the years 2016-2039.
| Personnel-related provisions for non-pension purposes (changes in 2008) | |
| Balance brought forward | 4,804 |
| Provisions for the period | 1,142 |
| Discounting effects | 195 |
| Revaluation | -317 |
| Provisions used | -1,144 |
| Provisions reversed | -248 |
| Translation differences | 615 |
| Balance carried forward | 5,047 |
Provisions for tax and legal disputes:
Provisions are made for possible future tax expenses due to ongoing tax audits and for ongoing legal disputes and actions. These include provisions related to ongoing legal actions concerning encroachment regarding cable laying on land in eastern Germany.
Approximately 40% of the provisions for tax and legal disputes are expected to result in disbursements in 2009-2010. The remaining provisions are estimated to result in cash flows during the years 2011-2012 (43%) and 17% thereafter.
| Provisions for tax and legal disputes (changes in 2008) | |
| Balance brought forward | 7,549 |
| Acquired companies | 2 |
| Provisions for the period | 388 |
| Discounting effects | 501 |
| Revaluation | -200 |
| Provisions used | -961 |
| Provisions reversed | -529 |
| Translation differences | 1,187 |
| Balance carried forward | 7,937 |
Other provisions:
Other provisions include, among others, those for onerous contracts, restructuring and guarantee commitments.
Approximately 17% of these provisions are estimated to result in disbursements in 2009, while the remaining approximately 53% are estimated to result in disbursements during 2010-2011 and 30% thereafter.
| Other provisions (changes in 2008) | |
| Balance brought forward | 2,109 |
| Provisions for the period | 518 |
| Discounting effects | 22 |
| Revaluation | 174 |
| Provisions used | -280 |
| Provisions reversed | -962 |
| Translation differences | 100 |
| Balance carried forward | 1,681 |