45. Other provisions

Other provisions 31 December 2015 31 December 2014
Short-term 94,353 177,400
Long-term 13,756 13,806
Total other provisions 108,109 191,206
other_provisions_1_pzu2015.xlsx
   
Changes in other provisions in the year ended 31 December 2015 Opening balance Increase Use Release Business combinations Exchange differences Closing balance
Provision for restructuring expenses 1) 9,354 3,760 (6,604) (3,733) - - 2,777
Provision for disputed claims and potential liabilities 781 56 - - 3,219 - 4,056
Provision for the Office of Competition and Consumer Protection penalties 2) 119,551 3 (50,384) (11,290) - - 57,880
Provision for exit costs of the GraphTalk project 3) 22,668 338 (17,392) - - - 5,614
Provision for PTE’s reimbursement of undue fees to the Social Insurance Institution 7,234 1,881 (23) - - - 9,092
Other 31,618 15,409 (16,020) (9,310) 7,106 (113) 28,690
Total other provisions 191,206 21,447 (90,423) (24,333) 10,325 (113) 108,109

1) Provisions for restructuring expenses are described in Note 56.2.

2) The item "Provision for the Office of Competition and Consumer Protection penalties" is described in Note 53.2 and 53.3.

3) Additional information is presented in Note 53.4.

other_provisions_2_pzu2015.xlsx

Changes in other provisions in the year ended 31 December 2014 Opening balance Increase Use Release Business combinations Exchange differences Closing balance
Provision for restructuring expenses - 17,687 (8,333) - - - 9,354
Provisions created for potential liabilities relating to CLSiOR investments 916 - - (916) - - -
Provision for disputed claims and potential liabilities under insurance contracts 3,075 289 - (2,583) - - 781
Provision for the Office of Competition and Consumer Protection penalties 1) 119,549 2 - - - - 119,551
Provision for exit costs of the GraphTalk project 50,944 509 - (28,785) - - 22,668
Provision for PTE’s reimbursement of undue fees to the Social Insurance Institution 7,401 - (167) - - - 7,234
Other 11,021 14,878 (4,506) (2,489) 12,522 192 31,618
Total other provisions 192,906 33,365 (13,006) (34,773) 12,522 192 191,206

1) The item "Provision for the Office of Competition and Consumer Protection penalties" is described in Notes 53.2 and 53.3.

other_provisions_3_pzu2015.xlsx

Provision for the GraphTalk project exit costs

The total "Provision for the GraphTalk project exit costs" includes PZU Życie provision created for the costs of closing the IT GraphTalk project.

The provision was established in relation to completion of the GraphTalk project and failure to meet economic objectives. Additionally the provisions amount includes estimation of potential liabilities due to litigation with CSC Computer Sciences Sp. z o.o. – aspect described in Note 53.4.

Provision for PTE’s reimbursement of undue fees to the Social Security Institution

A detailed method for determining and settlement of undue premiums to be returned is regulated in Article 100a of the Act on organization and operation of pension funds of 28 August 1997 (Journal Laws of 2013, item 989, as amended) pursuant to which if premiums unduly received are returned, the nominal amount of the service fee collected by the pension society managing a given fund should be returned to the Social Insurance Institution as well.

Since 2008, PTE PZU has been maintaining a provision for reimbursement of handling fees related to excess premiums paid by the Social Insurance Institution in previous periods. The calculation is made on the basis of information provided by the Social Security Institution for the years 1999-2015, and the rate of payment of premiums charged by PTE PZU and deducted by the Social Security Institution from the premiums.

Due to the fact that, as at signing of the consolidated financial statements, not all required information has been received from the Social Security Institution, it is not possible to specify the date of return of the fees on premiums.