110 / 144
26 Provisions
CHF million
Guarantee
and warranty
Litigation and
tax risk
Environ-
mental
Other
Total
Provisions at January 1, 2016
2.4
37.0
10.3
19.4
69.1
Additions
2.4
10.6
0.9
8.4
22.2
Utilization
–
–0.5
–0.1
–6.1
–6.8
Release
–0.4
–4.9
–
–2.8
–8.1
Reclassification
–
–0.2
–
0.2
–
Currency translation adjustment
–
0.4
–0.1
0.1
0.5
Provisions at December 31, 2016
4.4
42.4
11.0
19.2
77.0
Thereof non-current
2.0
39.0
11.0
11.4
63.3
Thereof current
2.4
3.4
–
7.8
13.7
Guarantee and warranty provisions are related to the production and supply of goods or services
and are based on experience. The non-current guarantee and warranty provisions are expected to be
used in one to two years.
Litigation and tax risk provisions comprise provisions for expected costs resulting from
investigations and proceedings of government agencies, provisions for court cases, such as claims
brought up by workers for health- or accident-related incidents, and provisions for tax risks. The
majority of litigation and tax risk provisions are expected to be used within the next two to three years.
Environmental provisions contain the estimated costs for the cleanup of contaminated sites
due to past industrial operations. The majority of provisions stem from legal entities within Business
Group Europe. Long-term environmental provisions are expected to be used mainly over the next
five to ten years.
Other provisions are made for contracts where the unavoidable costs to fulfill the obligation are
greater than the expected economic benefits, as well as for other constructive or legal liabilities
of Group companies. The majority of other non-current provisions are expected to be used in two to
three years.
106
Autoneum
Financial Report 2016
Consolidated Financial Statements