14 Other Provisions / Tax Provisions

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€ million

2008

2007

 

Total

Of which
noncurrent

Of which
current

Total

Of which
noncurrent

Of which
current

 

 

 

 

 

 

 

Personnel

114.0

111.7

2.3

101.7

97.1

4.6

Sales/purchasing

7.1

7.1

4.6

4.6

Environmental protection

58.7

50.3

8.4

51.2

51.2

Restructuring

1.4

0.1

1.3

0.8

0.8

Other

13.6

8.1

5.5

23.0

17.7

5.3

Other provisions

194.8

170.2

24.6

181.3

166.8

14.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax provisions

148.6

90.8

57.8

101.1

78.2

22.9

Tax Provisions

Tax provisions contain amounts for current income tax obligations, risks from tax audits, and legal action. The existing long-term tax provisions will largely be used over the next three to five years.

Provisions for Personnel

These provisions contain obligations for anniversary payments, other deferrals, and provisions relating to early retirement and semi-retirement plans. There is a continuous outflow of noncurrent provisions for anniversary payments. The provision for semi-retirement plans will be exhausted by 2015 at the latest. The outflow will be continuous until that date.

Sales/Purchasing Provisions

These provisions cover obligations from warranty and product liability as well as discounts, cash bonuses, or other price reductions, commissions for sales agents, and impending losses from contractual agreements.

Provisions for Environmental Protection

Provisions for environmental protection are formed for anticipated obligations regarding site contamination, 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 the government. Most noncurrent provisions for environmental protection will be utilized over a period of ten to twenty years.

Restructuring Provisions

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

Other Provisions

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

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Sundry Provisions

 

 

 

 

 

 

 

 

€ million

Jan. 1, 2008

Utilization

Reversal

Addition/
interest effect

Exchange
rate
differences

Scope of consolidation/ other

Dec. 31, 2008

 

 

 

 

 

 

 

 

Personnel

101.7

–3.3

–0.1

15.1

0.1

0.5

114.0

Sales/purchasing

4.6

–5.5

–0.4

8.0

0.2

0.2

7.1

Environmental protection

51.2

–3.2

–3.6

13.8

0.7

–0.2

58.7

Restructuring

0.8

–0.7

1.1

0.2

1.4

Other

23.0

–4.6

–8.5

3.4

0.3

13.6

 

181.3

–17.3

–12.6

41.4

1.5

0.5

194.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Of which interest effect

1.9

The interest effect is mainly accounted for by provisions for environmental protection.

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Tax Provisions

 

 

 

 

 

 

 

 

€ million

Jan. 1, 2008

Utilization

Reversal

Addition/
interest effect

Exchange
rate
differences

Scope of consolidation/
other

Dec. 31, 2008

 

 

 

 

 

 

 

 

Taxes

101.1

–24.5

–0.2

59.9

7.0

5.3

148.6

Of which interest effect

0.1