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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

1

Value in the opening balance adjusted (see disclosures on IFRS 9 and IFRS 15).

 

  

 

  

 

  

 

  

 

  

 

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

Utilization

  

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

Balance at Jan. 1, 20181

  

27,867

  

4,886

  

5,802

  

7,631

  

46,185

Foreign exchange differences

  

39

  

−17

  

−88

  

−21

  

−88

Changes in consolidated Group

  

−2

  

−7

  

−1

  

−44

  

−53

Utilization

  

10,437

  

1,632

  

2,396

  

2,415

  

16,880

Additions/New provisions

  

12,179

  

2,019

  

2,131

  

3,153

  

19,483

Unwinding of discount/effect of change in discount rate

  

−108

  

5

  

−19

  

9

  

−114

Reversals

  

2,503

  

99

  

516

  

662

  

3,780

Balance at Dec. 31, 2018

  

27,035

  

5,155

  

4,913

  

7,651

  

44,754

of which current

  

13,986

  

2,248

  

2,349

  

5,291

  

23,874

of which noncurrent

  

13,050

  

2,906

  

2,563

  

2,360

  

20,879

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 regarding 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 €562 million (previous year: €534 million) relating to the insurance business.