19. Provisions

The Group’s provisions mainly relate to dismantling costs, warranties, restructuring programs as well as legal and regulatory matters.

Composition of provisions

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Composition of provisions
(In € million)	Dismantling	Product warranty	Restructuring	Other	Total
Carrying amount as of January 1, 2023	16.1	8.2	4.1	19.3	47.7
Provisions made	4.1	7.9	6.0	3.4	21.4
Provisions used	(0.5)	(2.6)	(5.8)	(0.4)	(9.3)
Provisions reversed	–	(3.1)	–	(15.1)	(18.2)
Effect of movements in exchange rates	(0.5)	–	(0.1)	(0.2)	(0.8)
Carrying amount as of December 31, 2023	19.2	10.4	4.2	7.0	40.8
Current	–	10.4	4.0	1.3	15.7
Non-current	19.2	–	0.2	5.7	25.1
Carrying amount as of December 31, 2023	19.2	10.4	4.2	7.0	40.8
Carrying amount as of January 1, 2024	19.2	10.4	4.2	7.0	40.8
Provisions made	2.4	11.6	10.3	1.3	25.6
Provisions used	(0.4)	(4.2)	(10.4)	(0.6)	(15.6)
Provisions reversed	(2.9)	(8.0)	(0.4)	(0.3)	(11.6)
Effect of movements in exchange rates	0.7	(0.1)	0.1	(0.2)	0.5
Carrying amount as of December 31, 2024	19.0	9.7	3.8	7.2	39.7
Current	–	9.7	3.3	1.6	14.6
Non-current	19.0	–	0.5	5.6	25.1
Carrying amount as of December 31, 2024	19.0	9.7	3.8	7.2	39.7

Restructuring provision

The Group has a small number of ongoing restructuring programs. The Group’s restructuring programs are generally focused on reducing costs, streamlining the organization and adjusting headcount to be more closely aligned with the Group’s needs and changing market demands. Payments are usually expected to be executed within the next one or two years. See also note 9.

Other provisions

Other provisions mainly relate to legal and regulatory matters. In the year ended December 31, 2023, an acquisition-related provision was reversed due to a positive ruling (see also note 9).

Accounting policy

A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be reliably estimated and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are discounted if the time value of money is material. The unwinding of the discount is recognized as part of finance expenses. A provision is classified as current or non-current depending on whether the expected timing of the payment of the amounts provided for is more than 12 months after the reporting date.

A provision for dismantling is recognized when the Group has an obligation to pay for dismantling costs arising on the return of a filling line and other related equipment. This obligation typically arises upon deployment of aseptic carton filling lines (see also note 12). As such, the majority of the obligations are non-current.

A provision for warranties is recognized for products under warranty as of the reporting date based on known failures and defects as well as sales volumes and past experience of the level of problems reported and products returned. Warranty claims are expected to be settled within 12 months.

A provision for restructuring is recognized when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been publicly announced. The provision only includes direct costs that are necessarily entailed by the restructuring and not associated with ongoing activities. No provision is made for future operating costs.

A provision for onerous contracts is recognized when the benefits expected to be derived by an entity from a contract are lower than the unavoidable cost of meeting its obligations under the contract.

A provision for legal and regulatory matters reflects management’s best estimate of the outcome based on the facts known as of the reporting date.