4.8Provisions
CHF million | Restructuring provisions | Personnel provisions | Guarantee and warranty provisions | Environmental provisions | Other provisions | Total provisions |
|---|---|---|---|---|---|---|
Provisions at December 31, 2024 | 9.0 | 6.6 | 32.6 | 3.0 | 15.9 | 67.1 |
Utilization | – 8.1 | – 1.3 | – 19.0 | – | – 2.1 | – 30.5 |
Release | – 1.4 | – 0.5 | – 8.0 | – | – 6.8 | – 16.7 |
Additions | 28.3 | 0.4 | 10.1 | – | 6.8 | 45.6 |
Currency translation differences | – 0.6 | – 0.2 | – 0.9 | – | – 0.4 | – 2.1 |
Provisions at December 31, 2025 | 27.2 | 5.0 | 14.8 | 3.0 | 13.4 | 63.4 |
Of which current | 27.2 | 0.1 | 12.8 | – | 7.0 | 47.1 |
Of which non-current | – | 4.9 | 2.0 | 3.0 | 6.4 | 16.3 |
CHF million | Restructuring provisions | Personnel provisions | Guarantee and warranty provisions | Environmental provisions | Other provisions | Total provisions |
|---|---|---|---|---|---|---|
Provisions at December 31, 2023 | 34.9 | 5.9 | 30.1 | 10.5 | 15.8 | 97.2 |
Acquisitions | – | 0.4 | – | – | – | 0.5 |
Utilization | – 29.8 | – 0.6 | – 22.5 | 0.0 | – 3.7 | – 56.6 |
Release | – 1.8 | 0.0 | – 1.3 | – 7.7 | – 1.5 | – 12.3 |
Additions | 5.1 | 0.7 | 25.8 | 0.0 | 5.0 | 36.6 |
Currency translation differences | 0.6 | 0.2 | 0.5 | 0.2 | 0.2 | 1.7 |
Provisions at December 31, 2024 | 9.0 | 6.6 | 32.6 | 3.0 | 15.9 | 67.1 |
Of which current | 9.0 | 0.5 | 27.7 | – | 8.7 | 46.0 |
Of which non-current | 0.0 | 6.1 | 4.9 | 3.0 | 7.2 | 21.1 |
Restructuring provisions cover legal and constructive obligations in connection with restructuring measures. In 2025, additional restructuring measures (see note 2.3) resulted in an increase in provisions of CHF 28.3 million. The respective obligations mainly include expected severance payments, outplacement costs and consulting expenses. The utilization of restructuring provisions relates to the additional restructuring measures launched in 2024 and 2025 (see note 2.3).
Personnel provisions include provisions for part-time arrangements for older employees, long-service awards, and other long-term benefits attributable to employees.
Guarantee and warranty provisions are recorded in the context of product deliveries and services and are based on past experience. Non-current warranty provisions are expected to result in outflows of resources in one or two years on average.
Environmental provisions contain obligations for site restoration associated with the disposal of land and buildings in Ingolstadt (Germany) in 2019 and in Winterthur (Switzerland) in 2022. The respective provisions are expected to be utilized in the years after 2026.
Rieter has recognized other provisions mainly for ongoing legal proceedings, for onerous contracts (where the unavoidable direct cost of performance exceeds the expected financial benefit), or for contracts with benefits linked to conditions that have to be fulfilled in the future (e.g. government grants). Non-current other provisions are expected to be utilized in the years after 2026.
Significant accounting estimates and judgments
In the course of the ordinary operating activities of Rieter, obligations can arise from restructuring measures, warranty claims, ongoing legal proceedings, site restoration, or onerous contracts. Provisions for the respective obligations are measured on the basis of expected cash outflows when accounts are drawn up. However, the outcome of the events mentioned above may result in claims against the Group that are higher or lower than the respective provisions and which are not – or only partially – covered by a relevant insurance benefit.
Material accounting policies
Provisions for restructuring, personnel, warranty claims, ongoing legal proceedings, site restoration, or onerous contracts are recognized if Rieter has a present legal or constructive obligation as a result of past events, it is probable that an outflow of economic resources will be required to settle the obligation, and the amount can be estimated reliably. Provisions are discounted if the impact is considered to be significant.