22 Financial liabilities designated
at fair value
23 Provisions
24 Deferred taxes
Management report
Corporate governance
Consolidated financial statements
Financial statements
The change in the fair value of the financial liabilities
designated at fair value, that is attributable to changes in
the credit risk of Rabobank itself is a gain of 367 (2014: loss
of 669). The cumulative change in fair value of structured
notes attributable to changes in the credit risk of Rabobank
amounts to 1,041 before taxes (2014:674).The book value
of the structured notes is 5,973 (2014: 5,108) lower than the
amount Rabobank is obliged to repay to the holders of the
structured notes. The change in fair value that is attributable to
changes in credit risk is calculated by establishing a ratio to the
change in the credit spread of the non-structured notes issued
by Rabobank.
In the additions deducted from the profit of the restructuring
provision, an amount of 183 (2014: 80) is included for
the reorganisation programme of the local Rabobanks.
This reorganisation provision consists of future payments
relating to redundancy pay and other costs directly attributable
to the reorganisation programme. These expenses are included
when a redundancy scheme is drawn up and communicated to
stakeholders. The expected outflow of funds will occur in 2016.
Approximately 16% (2014: 21%) ofthe provision fortax and
legal issues relates to tax claims. The provision for tax and legal
issues is based on the best possible estimates available at
year-end, taking into account legal and tax advice.The timing
ofthe cash outflow relating to these provisions is uncertain
because the outcome ofthe disputes and the time involved are
unpredictable.
The item 'Other' includes provisions for onerous contracts and
in millions of euros
2015
2014
credit guarantees.
(Structured) notes
12,188
14,629
Other debt securities
353
688
Deposits with agreed maturity
4,450
4,427
Maturities of Rabobank Group
Total financial liabilities designated at fair value
16,991
19,744
(excluding provisions for employee benefits
and loan impairment allowances)
Up to one 1 - 5 Longer than
in millions of euros year years 5years Total
On 31 December 2015 861 131 1 993
On 31 December 2014 653 141 - 794
in millions of euros
2015
2014
Restructuring provision
354
315
Provision for tax and legal issues
412
267
Other
227
212
Total provisions
993
794
Deferred tax assets and liabilities are measured for all temporary
Changes in provisions were as follows:
differences using the 'liability' method.The effective tax rate
Restructuring provision
in the Netherlands for measuring deferred tax is 25% (2014:
Opening balance
315
396
25%)There were no changes in deferred tax assets and
liabilities resulting from changes in the effective tax rate in
Additions
285
135
Withdrawals
(207)
(172)
Releases
(39)
(44)
the Netherlands. No deferred tax asset has been recognised
Closing balance
354
315
for unused tax losses totalling 1,648 (2014:1,657).These carry
forward losses relate to various tax authorities and their term to
Provision for tax and legal issues
maturity is largely unlimited.
Opening balance
267
268
Additions
231
68
Deferred tax assets recognised in respect of carry forward
Withdrawals
(80)
(44)
losses can only be utilised if taxable profits are realised in the
Releases
(6)
(25)
future. On 31 December 2015, there was a realistic expectation
that sufficient taxable profits would be generated within the
Closing balance
412
267
Other
applicable periods.
Opening balance
212
386
Additions
102
61
Withdrawals
(56)
(26)
Releases
(31)
(209)
Closing balance
227
212
Total provisions
993
794
228 Rabobank Annual Report 2015
