30 Noncurrent and current other provisions


€ million	Obligations arising from sales	Employee expenses	Litigation and legal risks	Miscellaneous provisions	Total

Balance at Jan. 1, 2016	31,326	4,148	8,409	7,075	50,958
Foreign exchange differences	174	35	93	100	402
Changes in consolidated Group	23	1	3	124	151
Utilized	9,265	1,344	1,583	2,103	14,295
Additions/New provisions	12,180	1,736	5,605	3,419	22,939
Unwinding of discount/effect of change in discount rate	123	196	−84	3	238
Reversals	1,533	227	726	713	3,199
Balance at Dec. 31, 2016	33,027	4,546	11,717	7,904	57,193
of which current	19,521	1,900	8,624	5,666	35,711
of which noncurrent	13,506	2,646	3,092	2,238	21,482
Balance at Jan. 1, 2017	33,027	4,546	11,717	7,904	57,193
Foreign exchange differences	−689	−61	−119	−169	−1,038
Changes in consolidated Group	13	3	−13	−27	−24
Utilized	17,546	1,450	7,444	2,334	28,774
Additions/New provisions	14,990	2,030	2,190	3,217	22,426
Unwinding of discount/effect of change in discount rate	−50	11	−25	6	−57
Reversals	1,881	193	504	962	3,540
Balance at Dec. 31, 2017	27,865	4,886	5,802	7,634	46,186
of which current	14,821	2,069	2,999	5,458	25,347
of which noncurrent	13,044	2,817	2,802	2,176	20,839

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.

The decline in provisions for obligations arising from sales and for litigation and legal risks result primarily from the utilization of the provisions recognized in connection with the diesel issue. 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.

Miscellaneous provisions additionally include provisions amounting to €534 million (previous year: €490 million) relating to the insurance business.

You are here:

30 Noncurrent and current other provisions