Audi 2015 Annual Report Download - page 259

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE BALANCE SHEET
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31 / EFFECTIVE INCOME TAX OBLIGATIONS
Effective income tax obligations consist primarily of tax liabili-
ties to Volkswagen AG, Wolfsburg, under allocation plans.
32 / OTHER PROVISIONS
EUR million Dec. 31, 2015 Dec. 31, 2014
Total Of which
due within
one year
Total Of which
due within
one year
Obligations from sales operations 7,443 3,176 6,382 2,314
Workforce-related provisions 961 235 1,056 249
Provisions for legal and litigation risks 484 150 403 123
Miscellaneous provisions 696 591 759 666
Other provisions 9,584 4,153 8,599 3,353
Other provisions include provision totaling EUR 228 million for
the V6 3.0 TDI issue as well as EUR 70 million resulting from
the airbag recall.
Obligations from sales operations primarily comprise warranty
claims from the sale of vehicles, components and genuine
parts. Warranty claims are determined on the basis of previous
or estimated future losses. This item additionally includes
rebates, bonuses and similar discounts due to be granted and
arising subsequent to the balance sheet date but occasioned by
revenue generated prior to the balance sheet date. Furthermore,
provisions were recognized for technical measures for the
affected four-cylinder TDI engines and the V6 3.0 TDI engines,
as well as for sales measures. Obligations from sales opera-
tions also include provisions for the airbag recall.
The workforce-related provisions are recognized for such pur-
poses as partial retirement arrangements and long-service
awards. Regarding the implementation of the partial retire-
ment model, the German Federal Employment Agency will
reimburse the amount of EUR 18 (30) million.
Provisions for legal and litigation risks include a range of court
proceedings and claims primarily relating to product liability
and patent infringements. Furthermore, provisions were
recognized for litigation in relation to the diesel issue affecting
the V6 3.0 TDI engines. Audi Group companies in several
countries are involved in litigation regarding the affected
four-cylinder TDI engines. Based on the agreements in place,
Volkswagen AG, Wolfsburg, is responsible for defending these
cases and the ensuing consequences. As a result, no resource
outflows that would justify the recognition of provisions are
anticipated. It is considered highly improbable that the
Audi Group will be the subject of a joint liability claim with
regard to the four-cylinder TDI issue described. For this reason,
no contingent liabilities were recognized.
The other provisions include reserves for price risks of
EUR 108 (182) million.
Volkswagen AG is the subject of a claim for reimbursement
amounting to EUR 180 million as a consequence of the four-
cylinder TDI issue.
Anticipated outflows from other provisions are 43 percent in the
following year, 48 percent in the years 2017 through 2020 and
9 percent thereafter.