[33] Other provisions
Other provisions related to the following items:
in € million |
Provisions for product warranties |
Provisions for personnel |
Other obligations |
Total other provisions |
|---|---|---|---|---|
Balance as at Jan. 1, 2021 |
91.2 |
148.2 |
70.8 |
310.2 |
thereof non-current |
18.4 |
103.0 |
23.4 |
144.7 |
thereof current |
72.8 |
45.2 |
47.5 |
165.5 |
Group changes |
0.4 |
0.2 |
0.3 |
0.8 |
Additions |
59.1 |
76.9 |
49.2 |
185.2 |
Utilizations |
–34.9 |
–33.9 |
–35.9 |
–104.7 |
Reversals |
–20.8 |
–19.6 |
–16.0 |
–56.5 |
Additions to accrued interest |
0.0 |
–0.3 |
–0.0 |
–0.3 |
Currency translation adjustments |
2.9 |
2.1 |
1.9 |
6.9 |
Other adjustments |
– |
–1.4 |
– |
–1.4 |
Balance as at Dec. 31, 2021 |
97.8 |
172.2 |
70.3 |
340.3 |
thereof non-current |
23.4 |
98.5 |
21.2 |
143.1 |
thereof current |
74.4 |
73.7 |
49.1 |
197.2 |
The provisions for product warranties include contractual and statutory obligations arising from the sale of industrial trucks, spare parts, and automation solutions. It is expected that the bulk of the cash payments will be incurred within the next two years after the reporting date.
The provisions for personnel comprise provisions for long-service awards, partial retirement obligations, share-based remuneration obligations, severance pay, and obligations under social plans. The provisions for partial retirement obligations were recognized on the basis of individual contractual arrangements and agreements under collective bargaining law.
In 2020, provisions for personnel measures had been recognized in connection with the capacity and structural program initiated in the EMEA region. On the back of a strong business performance, the capacity program was adjusted in 2021 and excess provisions were reversed in an amount of €15.8 million that was recognized in profit or loss. Provisions for personnel measures stood at €13.2 million as at December 31, 2021. Share-based remuneration obligations rose by €36.5 million to €58.9 million in the year under review owing to the significantly higher valuation of the performance shares compared with the previous year (see note [46]).
Other obligations included provisions for onerous contracts and litigation. It is expected that the bulk of the cash payments for the other obligations will be incurred within the next two years after the reporting date.