XXIII. Provision for risks and charges

The change is due to normal allocations and utilizations for the year, and to the release of provisions as described below.

(k)31.12.2014Other movements and exchange rateAllocationsReversalsUtilizations  31.12.2015
Provision for taxes 2,752 267 410 (259) (528) 2,642
Other provisions 8,913 (2,832) 12,034 - (4,887) 13,228
Provision for legal disputes 206 61 3,202 (85) - 3,384
Onerous contracts provision 4 - - (2) - 2
Total provisions for current risks and charges 11,875 (2,504) 15,646 (346) (5,415) 19,256
Provision for taxes 132 - - - - 132
Other provisions 21,498 6,346 2,312 (210) (6,727) 23,219
Provision for legal disputes 3,770 (10) 853 (494) (1,423) 2,696
Provision for the refurbishment of third party assets 6,117 764 1,010 (203) (379) 7,309
Onerous contracts provision 2,097 177 2,179 (909) - 3,544
Total provisions for non-current risks and charges 33,614 7,276 6,355 (1,816) (8,528) 36,901
(k)31.12.2013Other movements and exchange rateAllocationsReversalsUtilizations31.12.2014
Provision for taxes 3,486 276 393 (1,403) - 2,752
Other provisions 7,878 (5,381) 6,446 (30) - 8,913
Provision for legal disputes 1,762 55 85 (201) (1,495) 206
Provision for the refurbishment of third party assets 417 - 7 (3) (421) -
Onerous contracts provision 6 - - (2) - 4
Total provisions for current risks and charges 13,549 (5,050) 6,931 (1,639) (1,916) 11,875
Provision for taxes 150 42 - (60) - 132
Other provisions 22,301 8,237 522 (1,246) (8,316) 21,498
Provision for legal disputes 4,206 - 1,385 (163) (1,658) 3,770
Provision for the refurbishment of third party assets 5,692 116 309 - - 6,117
Onerous contracts provision 3,469 171 1,477 (2,418) (602) 2,097
Total provisions for non-current risks and charges 35,818 8,566 3,693 (3,887) (10,576) 33,614
 

Provision for taxes

The current portion relates primarily to disputes over US companies’ direct and indirect tax obligations and reflect the advice of the Group’s tax advisors.

 

Other provisions

These refer almost entirely to a United States “self-insurance” provision covering the deductibles on third-party liability contained in insurance plans, settled on an annual basis. In 2015, € 12,034k was allocated to this provision on the basis of track records and forecasts regarding accidents, while settlements for the year amounted to € 11,479k (including € 6,592k from the non-current portion). Other than this, most of the change in 2015 reflects the appreciation of the US dollar against the Euro.

   

Provision for legal disputes

This provision covers the risk of losing lawsuits brought against Group companies, and takes account of the opinions of the Group’s legal advisors. Utilizations concern actual payments. Allocations for the year amounted to € 4,055k (including € 853k to the non-current portion).

Provision for the refurbishment of third party assets

This represents the estimated liability for ensuring that leased assets are returned in the contractually agreed condition.

 

Onerous contracts provision

This refers to long-term leases or concession agreements on commercial units that are not profitable enough to cover the rent. It has been updated using profitability projections as of 31 December 2015.