14 Other Provisions / Tax Provisions

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€ million

 

2012

 

2011

 

 

Total

 

Of which noncurrent

 

Of which current

 

Total

 

Of which noncurrent

 

Of which current

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

 

96.2

 

93.1

 

3.1

 

99.3

 

96.8

 

2.5

Sales/purchasing

 

44.7

 

7.8

 

36.9

 

106.7

 

38.3

 

68.4

Environmental protection

 

52.4

 

49.9

 

2.5

 

52.4

 

49.4

 

3.0

Restructuring

 

7.8

 

0.9

 

6.9

 

2.8

 

 

2.8

Sundry

 

60.9

 

9.6

 

51.3

 

47.4

 

9.4

 

38.0

Other provisions

 

262.0

 

161.3

 

100.7

 

308.6

 

193.9

 

114.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax provisions

 

74.4

 

32.1

 

42.3

 

68.5

 

61.3

 

7.2

Provisions for Personnel 

These provisions contain obligations for anniversary payments, working-life accounts, other deferrals, and provisions relating to early retirement and phased-early-retirement plans. There is a continuous outflow of noncurrent provisions for anniversary payments. The provision for phased-early-retirement plans will be exhausted by 2016 at the latest. The outflow will be continuous until that date.

Sales/Purchasing Provisions

These provisions cover warranty and product-liability obligations, as well as discounts, cash bonuses and other price reductions still to be granted, commissions payable to sales agents, and contingent losses from contractual agreements. Of the provisions for contingent losses from contractual agreements, the amount of €79.6 million was reversed in fiscal 2012. The majority of the remaining provisions will lead to cash outflows over the next two years.

Provisions for Environmental Protection

Provisions for environmental protection are formed for anticipated obligations regarding contaminated-site remediation, water pollution control, recultivation of landfills, the clean-up of contaminated storage and production sites, and similar environmental measures. These provisions also include environmental protection charges likely to be imposed by government bodies. Most noncurrent provisions for environmental protection will be utilized within a period of 20 years.

Restructuring Provisions

The provisions for restructuring are comprised of severance payments for departing employees, anticipated site closure expenses, demolition obligations, and similar charges.

Sundry Provisions

These provisions are formed for a multiplicity of identifiable individual risks and contingencies (e.g. damages, legal risks).

As in 2011, the interest rates ranged between around 3.0 percent and around 11.0 percent. They primarily related to provisions associated with purchasing and to environmental provisions.

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Other Provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

Jan. 1, 2012

 

Utilization

 

Reversal

 

Addition

 

Interest effect

 

Exchange-
rate differ-
ences

 

Other1

 

Dec. 31, 2012

1

In 2012, provisions for phased early retirement were offset against the corresponding capitalized hedging amounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

 

99.3

 

-10.3

 

 

10.5

 

 

-0.2

 

-3.1

 

96.2

Sales/purchasing

 

106.7

 

-17.1

 

-80.4

 

23.7

 

12.1

 

-0.3

 

 

44.7

Environmental protection

 

52.4

 

-2.5

 

-0.5

 

1.7

 

1.3

 

 

 

52.4

Restructuring

 

2.8

 

-2.0

 

 

6.7

 

 

0.3

 

 

7.8

Sundry

 

47.4

 

-2.0

 

-24.3

 

39.3

 

0.5

 

 

 

60.9

Total

 

308.6

 

-33.9

 

-105.2

 

81.9

 

13.9

 

-0.2

 

-3.1

 

262.0

Tax Provisions

Tax provisions contain amounts for current income tax obligations, risks from tax audits, and legal action. The existing noncurrent tax provisions will largely be used over the next two to four years.

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Tax Provisions

 

 

 

 

 

 

 

 

 

 

 

€ million

 

Jan. 1, 2012

 

Utilization

 

Reversal

 

Addition

 

Dec. 31, 2012

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

68.5

 

-8.4

 

-0.3

 

14.6

 

74.4