30 Noncurrent and current other provisions
€ million |
|
Obligations arising from sales |
|
Employee expenses |
|
Litigation and legal risks |
|
Miscellaneous provisions |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
Balance at Jan. 1, 2020 |
|
26,988 |
|
5,993 |
|
5,260 |
|
7,976 |
|
46,217 |
Foreign exchange differences |
|
–653 |
|
–56 |
|
–170 |
|
–222 |
|
–1,101 |
Changes in consolidated Group |
|
18 |
|
16 |
|
0 |
|
522 |
|
556 |
Utilization |
|
9,625 |
|
2,275 |
|
2,347 |
|
2,086 |
|
16,333 |
Additions/New provisions |
|
10,890 |
|
2,707 |
|
1,781 |
|
4,393 |
|
19,771 |
Unwinding of discount/effect of change in discount rate |
|
17 |
|
108 |
|
–20 |
|
0 |
|
105 |
Reversals |
|
1,637 |
|
223 |
|
586 |
|
1,117 |
|
3,564 |
Balance at Dec. 31, 2020 |
|
25,998 |
|
6,270 |
|
3,918 |
|
9,465 |
|
45,652 |
of which current |
|
12,394 |
|
2,174 |
|
2,037 |
|
6,359 |
|
22,964 |
of which noncurrent |
|
13,604 |
|
4,096 |
|
1,881 |
|
3,107 |
|
22,688 |
Balance at Jan. 1, 2021 |
|
25,998 |
|
6,270 |
|
3,918 |
|
9,465 |
|
45,652 |
Foreign exchange differences |
|
526 |
|
54 |
|
60 |
|
211 |
|
851 |
Changes in consolidated Group |
|
408 |
|
38 |
|
972 |
|
174 |
|
1,592 |
Classified as held for sale |
|
2 |
|
26 |
|
– |
|
0 |
|
28 |
Utilization |
|
9,274 |
|
1,870 |
|
1,259 |
|
2,606 |
|
15,009 |
Additions/New provisions |
|
10,997 |
|
2,783 |
|
2,120 |
|
4,503 |
|
20,403 |
Unwinding of discount/effect of change in discount rate |
|
–71 |
|
–133 |
|
7 |
|
16 |
|
–181 |
Reversals |
|
2,272 |
|
278 |
|
599 |
|
1,078 |
|
4,227 |
Balance at Dec. 31, 2021 |
|
26,310 |
|
6,837 |
|
5,220 |
|
10,685 |
|
49,052 |
of which current |
|
11,754 |
|
2,784 |
|
3,389 |
|
7,651 |
|
25,578 |
of which noncurrent |
|
14,555 |
|
4,053 |
|
1,831 |
|
3,035 |
|
23,474 |
The obligations arising from sales contain provisions covering all risks relating to the sale of vehicles, components and genuine parts through to the disposal of end-of-life vehicles. They primarily comprise warranty obligations, calculated on the basis of losses to date and estimated future losses. They also include provisions for discounts, bonuses and similar allowances which are incurred after the balance sheet date, but for which there is a legal or constructive obligation attributable to sales revenue before the balance sheet date.
Provisions for employee expenses are recognized for long-service awards, time credits, partial retirement arrangements, severance payments and similar obligations, among other things.
In addition to residual provisions relating to the diesel issue, the provisions for litigation and legal risks contain amounts related to a large number of legal disputes and official proceedings in which Volkswagen Group companies become involved in Germany and internationally in the course of their operating activities. In particular, such legal disputes and other proceedings may occur in relation to suppliers, dealers, customers, employees, or investors. Please refer to the “Litigation” section for a discussion of the legal risks.
Miscellaneous provisions relate to a wide range of identifiable specific risks, price risks and uncertain obligations, which are measured in the amount of the expected settlement value. Depending the jurisdiction concerned, they also include risk provisions for any non-compliance with legal emissions limits. Their measurement takes into account, among other things, the respective sales volume and the legally defined fee or the cost of acquiring emission rights from other manufacturers. Advantage has been taken of synergies between individual brands of the Volkswagen Group by establishing emission pools where possible.
Miscellaneous provisions additionally include provisions amounting to €1,527 million (previous year: €1,265 million) relating to the insurance business.