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30 Noncurrent and current other provisions

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€ million

  

Obligations arising from sales

  

Employee expenses

  

Litigation and legal risks

  

Miscellaneous provisions*

  

Total

 

  

 

  

 

  

 

  

 

  

 

*

Prior-year figures adjusted due to the separate presentation of the provisions for litigation and legal risks.

Balance at Jan. 1, 2014

  

18,537

  

5,380

  

1,380

  

7,044

  

32,341

Foreign exchange differences

  

214

  

29

  

19

  

40

  

303

Changes in consolidated Group

  

3

  

3

  

1

  

0

  

6

Utilized

  

7,045

  

3,030

  

238

  

2,061

  

12,373

Additions/New provisions

  

9,715

  

1,678

  

363

  

2,785

  

14,541

Unwinding of discount/effect of change in discount rate

  

77

  

229

  

12

  

1

  

319

Reversals

  

962

  

198

  

232

  

759

  

2,151

Balance at Dec. 31, 2014

  

20,539

  

4,091

  

1,306

  

7,049

  

32,986

of which current

  

10,090

  

1,753

  

426

  

4,805

  

17,075

of which noncurrent

  

10,448

  

2,338

  

880

  

2,244

  

15,910

Balance at Jan. 1, 2015

  

20,539

  

4,091

  

1,306

  

7,049

  

32,986

Foreign exchange differences

  

214

  

−19

  

−143

  

32

  

83

Changes in consolidated Group

  

0

  

0

  

0

  

1

  

2

Utilized

  

7,517

  

1,429

  

236

  

1,901

  

11,082

Additions/New provisions

  

19,270

  

1,668

  

7,697

  

2,747

  

31,382

Unwinding of discount/effect of change in discount rate

  

5

  

−22

  

4

  

4

  

−9

Reversals

  

1,185

  

142

  

219

  

858

  

2,404

Balance at Dec. 31, 2015

  

31,326

  

4,148

  

8,409

  

7,075

  

50,958

of which current

  

17,075

  

1,733

  

2,073

  

4,908

  

25,788

of which noncurrent

  

14,251

  

2,415

  

6,336

  

2,168

  

25,170

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.

The increase in obligations arising from sales is largely due to the recognition of provisions for the implementation of field measures and of repurchases in connection with the diesel issue. Please refer to the “Key events” section for further information.

Provisions for employee expenses are recognized for long-service awards, time credits, partial retirement arrangements, severance payments and similar obligations, among other things.

The increase in the provisions for litigation and legal risks results primarily from the provisions recognized in connection with the diesel issue to cover currently known legal risks, including appropriate legal defense and legal advice expenses amounting to €7.0 billion. These are subject to what are in part considerable estimation risks because the comprehensive and extensive investigations are still at an early stage, the factors involved are so complex, and the discussions with the authorities are still ongoing. In addition, the provisions for litigation and legal risks contain amounts relating 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 include provisions amounting to €459 million (previous year: €417 million) relating to the insurance business.