2.8 Provisions and contingent liabilities
| in CHF mn | Long service awards |
Personnel provisions/ restructuring |
Restoration costs + inherit- ed pollution |
Litigation risks, other |
Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| As of 1 January 2021 | 11.7 | 2.0 | 0.6 | 1.4 | 15.6 | |||||
| Disposals of consolidated companies | (0.3) | – | – | (0.0) | (0.3) | |||||
| Increase | 0.2 | 1.4 | – | 1.4 | 2.9 | |||||
| Reversal | (0.5) | (0.0) | – | (0.3) | (0.7) | |||||
| Used during the financial year | (0.7) | (1.5) | – | (0.5) | (2.6) | |||||
| Currency effect | – | – | – | (0.0) | (0.0) | |||||
| As of 31 December 2021 | 10.4 | 1.8 | 0.6 | 2.0 | 14.8 | |||||
| due within 1 year | 1.0 | 1.8 | – | 0.8 | 3.6 | |||||
| due within 1 to 5 years | 9.4 | – | 0.6 | 1.2 | 11.2 | |||||
| As of 1 January 2022 | 10.4 | 1.8 | 0.6 | 2.0 | 14.8 | |||||
| Disposals of consolidated companies | – | – | – | (0.3) | (0.3) | |||||
| Increase | 0.2 | 2.0 | – | 1.2 | 3.3 | |||||
| Reversal | (0.6) | (1.0) | – | (0.2) | (1.8) | |||||
| Used during the financial year | (0.7) | (0.9) | – | (0.7) | (2.3) | |||||
| Currency effect | – | – | – | (0.0) | (0.0) | |||||
| As of 31 December 2022 | 9.2 | 2.0 | 0.6 | 1.9 | 13.7 | |||||
| due within 1 year | 0.9 | 2.0 | – | 0.6 | 3.4 | |||||
| due within 1 to 5 years | 8.3 | – | 0.6 | 1.3 | 10.2 |
The reversal of provisions that are no longer required is now reflected directly in the account in which the expense was recognised and no longer under other income. The balance of CHF 1.0 million for the first half of the year was reclassified accordingly. The provisions reversed in the previous year were insignificant, so the previous year has not been adjusted.
Pending transactions
There are out-of-home advertising contracts with an obligation to provide future services intended to obtain a specific level of revenue in the amount of CHF 151.6 million (previous year: CHF 167.8 million). The Management estimates, like the previous year, that the agreed revenue targets will be achieved. Provisions would be formed for loss-generating contracts. The reduction compared to the previous year is attributable to expiring contracts.
In the current year, as in the previous year, there are no purchase agreements for the procurement of newsprint and magazine paper that relate to future delivery periods.
Sureties, subordinated claims and guarantee obligations to the benefit of third parties/related parties
As of the balance sheet date, there are sureties, subordinated claims and guarantee obligations to the benefit of related parties and third parties totalling CHF 15.4 million (previous year: CHF 16.1 million). There are no further sureties, subordinated claims or guarantee obligations.
Accounting policies
Provisions are only recognised if an obligation exists or appears probable based on a past event and when the amount of such obligation can be reliably estimated.
Possible obligations and those that cannot be reliably estimated are disclosed as contingent liabilities.
The provision for long-service awards is determined on the basis of actuarial principles. The personnel provisions consist mainly of costs that are still expected in conjunction with agreed restructuring measures. They primarily therefore cover provisions for various social plans. Provisions for restoration costs and inherited pollution include the estimated costs of restoring rented properties to their original state once they have been vacated, and guarantees for the removal of inherited pollution from properties sold. The due dates for restoration costs of rented premises are governed by the terms of the relevant agreements. The provisions for litigation risks relate to current cases. Other provisions include several different items, which, if considered individually, are not material in nature. The outflow of non-current provisions is expected within the next five years. The amount set aside for provisions and the point in time at which such will result in a cash outflow are based on best possible estimates and may deviate from actual circumstances in the future.