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69
26. PROVISIONS
(€ in thousands) Warranty
Claims,
litigation
& other Total
OPENING BALANCE AS AT 1 JANUARY 2010 50,262 64,088 114,350
Increases in provisions 29,325 9,239 38,564
Utilised – 28,147 – 2,963 – 31,110
Released – 5,317 – 7,199 – 12,516
BALANCE AT 1 JANUARY 2011 46,123 63,165 109,288
Increases in provisions 27,312 34,022 61,334
Utilised – 27,861 – 5,867 – 33,728
Released – 2,401 – 33,166 – 35,567
BALANCE AS AT 31 DECEMBER 2011 43,173 58,154 101,327
Warranty provision
The group generally offers warranties for its portable navigation products. Management estimates the related provision for future warranty
claims based on historical warranty claim information, as well as evaluating recent trends that might suggest that past cost information may
differ from future claims.
Claims, litigation and other provision
The group made a provision for potential legal, tax and other risks in various jurisdictions. The legal matters mainly consist of intellectual
property infringement issues. In the normal course of business, the group receives claims relating to allegations that we have infringed
intellectual property assets and the companies making the claims seek payments that may take the form of licences and/or damages.
While these claims will be resisted, some are likely to be settled by negotiation and others are expected to result in litigation.
The cases and claims against the group often raise diffi cult and complex factual and legal issues which are subject to many uncertainties
and complexities, including but not limited to the facts and circumstances of each particular case and claim, the jurisdiction in which
each suit is brought, and the differences in applicable law. In the normal course of business, management consults with legal counsel and
certain other experts on matters related to such claims and litigation. The group accrues a liability when it is determined that an adverse
outcome is more likely than not, and the amount of the loss can be reasonably estimated. If either the likelihood of an adverse outcome is
reasonably possible or an estimate is not determinable, the matter is disclosed, provided it is material. The management is of the opinion
that the provision is adequate to resolve these claims.
The methodology used to determine the amount of the liability requires signifi cant judgments and estimates regarding the costs of settling
asserted claims. Due to the fact that there is limited historical data available, the estimated liability cannot be based upon recent settlement
experience for similar types of claims.
Other provisions include an amount of €6.3 million (2010: €6.4 million) related to a defi ned benefi t plan in Germany and the staff leaving
indemnity plan in Italy.
Analysis of total provisions
(€ in thousands) 2011 2010
Non-current 50,114 51,051
Current 51,213 58,237
101,327 109,288
27. TRADE PAYABLES
All trade payable balances are due within one year.