Mercedes 2009 Annual Report Download - page 227

Consolidated Financial Statements |Notes to Consolidated Financial Statements |223
22. Provisions for other risks
The development of provisions for other risks is summarized
as follows:
Product warranties. Daimler issues various types of product
warranties, under which it generally guarantees the performance
of products delivered and services rendered for a certain period
or term. The provision for these product warranties covers
expected costs for legal and contractual warranty claims, as well
as expected costs for policy coverage, recall campaigns and
buyback commitments. The provision for buyback commitments
represents the expected costs related to the Group’s obligation,
under certain conditions, to repurchase a vehicle from a customer.
Buy-backs may occur for a number of reasons including litigation,
compliance with laws and regulations in a particular region and
customer satisfaction issues. The utilization date of product
warranties depends on the incidence of the warranty claims and
can span the entire term of the product warranties.
Sales incentives. The provisions for sales incentives relate to
obligations for expected reductions in revenue already recog-
nized. These include bonuses, discounts and other price reduc-
tion commitments, which are entered into with contractual
partners in the reporting period or in previous periods but will
not be paid until subsequent periods.
Personnel and social costs. Provisions for personnel and social
costs primarily comprise expected expenses of the Group for
employee anniversary bonuses, profit sharing arrangements, man-
agement bonuses as well as early retirement and partial retire-
ment plans. The additions recorded to the provisions for profit
sharing and management bonuses in the reporting year usually
result in cash outflows in the following year.
Other. Provisions for other risks comprise, among others, expect-
ed costs in connection with liability and litigation risks, obliga-
tions under the EU End-of-Life Vehicles Directive and environmen-
tal protection risks. They also include provisions for other taxes
and various other risks.
23. Financing liabilities
TotalOther
Personnel
and social
costs
Sales
incentives
Product
warranties
5,926
3,025
2,901
1,949
(2,755)
(321)
658
32
5,489
2,874
2,615
887
887
.
795
(711)
(59)
-
2
914
914
–
2,350
1,031
1,319
581
(900)
(174)
210
(13)
2,054
803
1,251
2,577
1,887
690
993
(758)
(358)
135
(39)
2,550
1,720
830
11 , 74 0
6,830
4,910
4,318
(5,124)
(912)
1,003
(18)
11,007
6,311
4,696
in millions of €
Balance at December 31, 2008
Thereof current
Thereof non-current
Additions
Utilizations
Reversals
Addition of accrued interest and effects of changes in discount rates
Currency translation and other changes
Balance at December 31, 2009
Thereof current
Thereof non-current
34,093
2,320
14,608
6,010
697
451
458
58,637
11 ,15 8
2,320
8,038
5,033
370
60
449
27,428
22,123
–
6,934
3,195
539
348
119
33,258
22,935
–
6,570
977
327
391
9
31,209
30,095
176
13,000
12,598
1,292
397
736
58,294
7,972
176
6,066
9,403
753
49
617
25,036
At December 31, 2008
Total
Non-currentCurrent
At December 31, 2009
TotalNon-currentCurrent
in millions of €
Notes/bonds
Commercial paper
Liabilities to financial institutions
Deposits from the direct banking business
Liabilities from ABS transactions
Liabilities from finance lease
Loans, other financing liabilities