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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 16).

 

  

 

  

 

  

 

  

 

  

 

Balance at Jan. 1, 2018

  

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

Balance at Jan. 1, 2019¹

  

27,035

  

5,155

  

4,913

  

7,639

  

44,742

Foreign exchange differences

  

199

  

15

  

−14

  

41

  

241

Changes in consolidated Group

  

−1

  

3

  

−1

  

0

  

2

Classified as held for sale

  

33

  

10

  

–

  

12

  

55

Utilization

  

9,442

  

1,899

  

1,913

  

2,404

  

15,658

Additions/New provisions

  

11,618

  

2,633

  

2,835

  

3,486

  

20,572

Unwinding of discount/effect of change in discount rate

  

3

  

225

  

−29

  

20

  

220

Reversals

  

2,391

  

128

  

531

  

795

  

3,845

Balance at Dec. 31, 2019

  

26,988

  

5,993

  

5,260

  

7,976

  

46,217

of which current

  

13,468

  

2,466

  

3,112

  

5,388

  

24,434

of which noncurrent

  

13,520

  

3,527

  

2,147

  

2,588

  

21,783

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.

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 €568 million (previous year: €562 million) relating to the insurance business.