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96 Huawei Investment & Holding Co., Ltd. 2014 Annual Report
25. Provisions and contingencies
(a) Provisions
2014 2013
CNY million CNY million
Provision for warranties (i) 3,662 2,963
Other provisions (ii) 4,647 2,537
8,309 5,500
Non-current portion 964 782
Current portion 7,345 4,718
8,309 5,500
Movement in provisions during the year is as below:
Provision for
warranties
Other
provisions Total
CNY million CNY million CNY million
At January 1, 2014 2,963 2,537 5,500
Provisions made during the year 3,892 3,347 7,239
Provisions utilised during the year (3,193) (1,237) (4,430)
At December 31, 2014 3,662 4,647 8,309
(i) Provision for warranties
The provision for warranties relates primarily to equipment sold during the year. The provision is determined
based on estimates made from historical warranty data associated with similar products and anticipated rates
of warranty claims for the products. The Group expects to settle the majority of the liability within the next
twelve months.
(ii) Other provisions
Other provisions are mainly for onerous contracts, outstanding litigations and claims.