19 » Other Provisions
Other provisions consist of the following:
|
|
Jan. 1, 2022 |
|
Additions |
|
Usage |
|
Reversals |
|
Decrease in companies consolidated |
|
Currency translation differences |
|
Dec. 31, 2022 |
|
Thereof: |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Marketing |
|
22 |
|
25 |
|
(15) |
|
(4) |
|
(2) |
|
1 |
|
26 |
|
– |
Personnel |
|
284 |
|
142 |
|
(169) |
|
(19) |
|
(20) |
|
4 |
|
222 |
|
32 |
Returns and warranty |
|
709 |
|
772 |
|
(607) |
|
(44) |
|
(6) |
|
(10) |
|
815 |
|
– |
Taxes, other than income taxes |
|
54 |
|
28 |
|
(7) |
|
(2) |
|
(2) |
|
0 |
|
71 |
|
– |
Customs |
|
193 |
|
91 |
|
(10) |
|
(2) |
|
– |
|
(4) |
|
267 |
|
– |
Sundry |
|
345 |
|
91 |
|
(117) |
|
(43) |
|
(2) |
|
2 |
|
275 |
|
56 |
Other provisions |
|
1,607 |
|
1,148 |
|
(926) |
|
(114) |
|
(32) |
|
(6) |
|
1,677 |
|
88 |
Marketing provisions mainly consist of provisions for promotion contracts, which are comprised of obligations to clubs and athletes.
Provisions for personnel mainly consist of provisions for short- and long-term variable compensation components as well as of provisions for social plans relating to restructuring measures.
Provisions for returns and warranty primarily arise due to the obligation of fulfilling customer claims with regard to the return of products sold by adidas. The amount of the provision follows the historical development of returns and warranty as well as current agreements.
Provisions for taxes other than income taxes mainly relate to value added tax, real estate tax, and motor vehicle tax.
Sundry provisions mainly include provisions for onerous contracts as well as for dismantling and restoration costs.
Non-current provisions mainly consist of provisions for long-term variable compensation components with a time frame of three to four years, discounted with country-specific interest rates.
Management follows past experience from similar transactions when assessing the recognition and the measurement of provisions; in particular, external legal opinions are considered for provisions for customs risks and for litigation and other legal risks. All evidence from events until the preparation of the consolidated financial statements is taken into account.
Due to the armed conflict between Russia and Ukraine and the decision to permanently wind down business activities in Russia in 2022, provisions of € 30 million have been recognized for personnel, taxes, other than income taxes and sundry provisions.
