26. Provisions for Liabilities Net present cost At 1  January Translation adjustment Arising on acquisition Provided during year Utilised  during year Disposed  during year Reversed unused Discount unwinding (note 9) At 31 December €m €m €m €m €m €m €m €m €m 31 December 2012 Insurance (i)  199  (3)  -  51  (45)  - (22)  10   190  Environment and remediation (ii)  88   -  -  2  (4) (1) (4)  2   83  Rationalisation and redundancy (iii)  13   -  -  48  (35)  - (1)  1   26  Other (iv)  73   -  1   15  (8) (2) (13)  2   68  Total  373  (3)  1   116  (92) (3) (40)  15   367  Analysed as: Non-current liabilities  252   257  Current liabilities  121   110  Total  373   367  31 December 2011 Insurance (i)  207   5   -  51  (47)  - (26)  9   199  Environment and remediation (ii)  81   2   1   8  (4)  - (2)  2   88  Rationalisation and redundancy (iii)  28   -  1   26  (40) (2) (1)  1   13  Other (iv)  71   -  13   15  (15) (6) (8)  3   73  Total  387   7   15   100  (106) (8) (37)  15   373  Analysed as: Non-current liabilities  253   252  Current liabilities  134   121  Total  387   373  The equivalent disclosure for the prior year is as follows: All provisions are discounted at a rate of 5% (2011: 5%), consistent with the average effective interest rate for the Group’s borrowings. The impact on profit before  tax of a 1% change in the discount rate applicable to provisions, with all other variables held constant, is €1 million (2011: €nil million). Discount rate sensitivity analysis (iv) This includes provisions relating to guarantees and warranties of €13 million (2011: €13 million) throughout the Group at 31 December 2012. The Group  expects that these provisions will be utilised within two to three years of the balance sheet date (2011: two years).  (iii) These provisions relate to irrevocable commitments under various rationalisation and redundancy programmes, none of which is individually material to the  Group. In 2012, €48 million (2011: €26 million) was provided in respect of rationalisation and redundancy activities as a consequence of undertaking various  cost reduction initiatives across all operations. These initiatives included removing excess capacity from manufacturing and distribution networks and scaling  operations to match market supply and demand; implementation of these initiatives resulted in a reduction in staffing levels in all business segments over recent  years. The Group expects that these provisions will be utilised within one to two years of the balance sheet date (2011: two years). (ii)  This provision comprises obligations governing site remediation and improvement costs to be incurred in compliance with either local or national environmental  regulations together with constructive obligations stemming from established best practice. Whilst a significant element of the total provision will reverse in the  medium-term (two to ten years), the majority of the legal and constructive obligations applicable to long-lived assets (principally mineral-bearing land) will  unwind over a 30-year timeframe. In discounting the related obligations, expected future cash outflows have been determined with due regard to extraction  status and anticipated remaining life. (i)  This provision relates to actual and potential obligations arising under the self-insurance components of the Group’s insurance arrangements which comprise  employers’ liability (workers’ compensation in the United States), public and products liability (general liability in the United States), automobile liability, property  damage, business interruption and various other insurances; a substantial proportion of the total provision pertains to claims which are classified as “incurred  but not reported”. Due to the extended timeframe associated with many of the insurances, a significant proportion of the total provision is subject to periodic  actuarial valuation. The projected cash flows underlying the discounting process are established through the application of actuarial triangulations, which are  extrapolated from historical claims experience. The triangulations applied in the discounting process indicate that the Group’s insurance provisions have an  average life of six years (2011: five years). CRH 107