Annual Report 2025

Annual Report 2025

28. Other Provisions

(in € million)

 

 

Personnel

 

Marketing and selling

 

Litigation and similar risks

 

Miscella-
neous

 

Total

Jan. 1, 2025

 

399

 

88

 

163

 

154

 

804

Of which non-current

 

105

 

 

52

 

48

 

205

Currency effects

 

-9

 

-6

 

-3

 

-8

 

-26

Additions

 

244

 

38

 

35

 

72

 

389

Utilized

 

272

 

65

 

8

 

57

 

402

Reversals

 

32

 

12

 

29

 

17

 

90

Dec. 31, 2025

 

330

 

43

 

160

 

141

 

674

Of which non-current

 

56

 

 

35

 

37

 

128

Provisions are recognized when an obligation to a third party exists, the outflow of resources is probable, and the expected obligation can be measured reliably. The calculation of provisions is based on the best possible estimate of the relevant parameters.

Long‑term provisions are discounted using a maturity‑dependent discount rate, provided the interest effect is material. Provisions for personnel expenses mainly include provisions for annual bonuses, vacation, long‑service awards, and severance agreements. Provisions for marketing and sales expenses primarily relate to provisions for product returns and other marketing‑related obligations. Provisions for litigation and similar risks include provisions for litigation in Brazil amounting to €84 million (previous year: €79 million), litigation related to the construction of a facility in Mexico in 2015 amounting to €15 million (previous year: €0 million), and risks associated with customs audits amounting to €11 million (previous year: €10 million). Miscellaneous provisions relate to a wide variety of matters and entities and include, among other things, restructuring provisions.

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