Other provisions | 31 December 2016 | 31 December 2015 |
---|---|---|
Short-term | 352 | 94 |
Long-term | 15 | 14 |
Total other provisions | 367 | 108 |
Changes in other provisions in the year ended 31 December 2016 | Opening balance | Increase | Use | Release | Business combinations | Closing balance |
---|---|---|---|---|---|---|
Provision for restructuring expenses | 3 | 200 | (6) | - | 55 | 252 |
Provision for disputed claims and potential liabilities | 4 | 3 | (1) | - | 5 | 11 |
Provision for the Office of Competition and Consumer Protection penalties1) | 58 | - | - | - | - | 58 |
Provision for exit costs of the GraphTalk project | 6 | - | - | - | - | 6 |
Provision for PTE’s reimbursement of undue fees to the Social Insurance Institution | 9 | - | - | - | - | 9 |
Other | 28 | 26 | (8) | (25) | 10 | 31 |
Total other provisions | 108 | 229 | (15) | (25) | 70 | 367 |
Changes in other provisions in the year ended 31 December 2015 | Opening balance | Increase | Use | Release | Business combinations | Closing balance |
---|---|---|---|---|---|---|
Provision for restructuring expenses | 9 | 4 | (6) | (4) | - | 3 |
Provision for disputed claims and potential liabilities | 1 | - | - | - | 3 | 4 |
Provision for the Office of Competition and Consumer Protection penalties1) | 119 | - | (50) | (11) | - | 58 |
Provision for exit costs of the GraphTalk project | 23 | - | (17) | - | - | 6 |
Provision for PTE’s reimbursement of undue fees to the Social Insurance Institution | 7 | 2 | - | - | - | 9 |
Other | 32 | 15 | (17) | (9) | 7 | 28 |
Total other provisions | 191 | 21 | (90) | (24) | 10 | 108 |
1) The item "Provision for the Office of Competition and Consumer Protection penalties" is described in point 48.2 and 48.1.
Provision for restructuring expenses
The item includes mainly restructuring provision from Alior Bank in the amount of PLN 250 million and allocated for payment of statutory severance pays as a result of termination of employment under group redundancies and for so-called additional compensation that results from the agreement made with labor union organizations, and provision for costs related to restructuring of branch network and vacating these franchise branches located to close to one another (the provision covers the costs of compensations and external costs related with physical vacation of a branch and restoring its original condition).