[33] Other provisions
Other provisions related to the following items:
in € million |
Provisions for product warranties |
Provisions for personnel |
Provisions for onerous contracts |
Other obligations |
Total other provisions |
|---|---|---|---|---|---|
Balance as at Jan. 1, 2023 |
119.7 |
104.7 |
84.9 |
60.9 |
370.2 |
thereof non-current |
30.1 |
60.3 |
24.6 |
25.8 |
140.8 |
thereof current |
89.6 |
44.4 |
60.2 |
35.2 |
229.4 |
Group changes |
0.5 |
– |
– |
– |
0.5 |
Additions |
103.0 |
63.4 |
32.9 |
47.0 |
246.2 |
Utilizations |
–31.8 |
–25.9 |
–30.6 |
–15.0 |
–103.3 |
Reversals |
–19.3 |
–4.3 |
–14.0 |
–22.6 |
–60.3 |
Additions to accrued interest |
0.3 |
0.4 |
– |
–0.3 |
0.4 |
Currency translation adjustments |
–1.1 |
–0.9 |
0.5 |
0.5 |
–0.9 |
Other adjustments |
– |
–0.0 |
–2.9 |
2.5 |
–0.4 |
Balance as at Dec. 31, 2023 |
171.3 |
137.2 |
70.9 |
72.9 |
452.3 |
thereof non-current |
48.7 |
80.1 |
7.2 |
37.6 |
173.7 |
thereof current |
122.5 |
57.1 |
63.7 |
35.3 |
278.6 |
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. As market demand is currently muted in the long-term project business of the Supply Chain Solutions segment, staffing capacity was adjusted in 2023 as a short-term countermeasure to reflect the prevailing order situation. This resulted in an amount of €20.6 million being added to provisions for personnel in the reporting year.
Share-based remuneration obligations rose by €19.2 million to €24.1 million in the year under review owing to the higher valuation of the performance shares compared with the previous year (see note [46]).
The provisions for onerous contracts as at December 31, 2023 mainly related to project business contracts in the Supply Chain Solutions segment; the payments expected in this context will be incurred within the next two years after the reporting date.
Other obligations included provisions for risks arising from lease business, for waste disposal and recycling obligations, and for 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.