19. Provisions
As at 31-12-2023 | As at 31-12-2022 | |
Reorganization and restructuring | 0.3 | 0.4 |
Other | 4.4 | 9.5 |
Total | 4.7 | 9.9 |
Movements in provisions
Reorganization and restructuring | Other | Total | |
As at 1 January 2023 | 0.4 | 9.5 | 9.9 |
Addition charged to result | 0.8 | 1.3 | 2.1 |
Release credited to result | -0.1 | -0.4 | -0.5 |
Withdrawal for intended purpose | -0.8 | -5.8 | -6.6 |
Exchange rate differences | -0.2 | -0.2 | |
As at 31 December 2023 | 0.3 | 4.4 | 4.7 |
Reorganization and restructuring
Restructuring provisions are recognized only when Corbion has a constructive obligation, which is when:
(i) there is a detailed formal plan that identifies the business or part of the business concerned, the location and number of employees affected, the detailed estimate of the associated costs, and the timeline; and
(ii) the employees affected have been notified of the plan’s main features.
During its Capital Markets update on 31 January 2024, Corbion announced a restructuring plan involving a reduction of around 200 positions. Since no constructive obligation existed at year end 2023, no provision for restructuring was formed at year end 2023.
Other
The other provisions relate mainly to loss-making contracts, legal disputes, and other litigation risks.