29. Current Provisions

Provisions are recognized if a liability to a third party results from a past event which is expected to lead to an outflow of assets and can be reliably measured. They represent uncertain liabilities that are recognized at the amount of the best estimate. The amount of the provision also includes the expected cost increases.

The allocations for insurance costs primarily resulted from obligations with respect to the liability loss compensation fund of German metropolitan areas.

The provisions for onerous contracts were allocated with EUR 2,834 thousand in full to the CONTRACT Division. The provisions related to contracts with customers for which the estimated costs are not expected to be covered by the agreed revenue. The level of the risks from onerous contracts may increase significantly as a result of changes in circumstances over time. Based on our current estimation, a risk of this kind should be viewed as low.

For warranty risks from possible warranty liabilities and fair-dealing obligations, provisions of EUR 1,500 thousand from prior periods were reversed and new provisions of EUR 115 thousand were recognized. Overall, there is broad discretion in measuring these provisions, as there are no comparable items or other historical data.

Miscellaneous other provisions included other operating taxes of EUR 255 thousand (previous year: EUR 254 thousand) and archiving costs of EUR 1,465 thousand (previous year: EUR 1,465 thousand). In addition, miscellaneous other provisions included EUR 3,000 thousand (previous year: EUR 0 thousand) for risks in connection with the heat treatment of vehicles, EUR 2,934 thousand (previous year: EUR 1,464 thousand) for uninsured damage to a logistics center and risks of EUR 2,567 thousand (previous year: EUR 5,019 thousand) due to pending payment obligations from an infrastructure project.