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## NOTES TO THE CONSOLIDATED BALANCE SHEETS 

Amounts in EUR millions 

## 16 PROVISIONS 

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The provisions for taxation are of a long-term nature. This caption includes both deferred taxation as well as other long-term tax liabilities. 

The deferred taxation is calculated on the basis of the difference between book value and valuation for tax purposes of the appropriate assets and liabilities. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available. 

The provision is equal to the discounted value of the future tax amounts. In the calculation discounted tax rates ranging from 0% to nominal rates are used, taking into account the estimated term to maturity of the related differences. Nominal value of these tax amounts is EUR 2,423 million. 

As at December 31, the provisions for taxation consist of: 

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## 17 LONG-TERM LIABILITIES 

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The repayment periods of borrowings vary from in excess of one year up to a maximum of 50 years. The coupons vary from 1.49% to 10% per annum. Borrowings include debenture loans for EUR 2,837 million. 

The market value of total long-term liabilities amounts to EUR 5,053 million (2002: EUR 3,679 million). 

