29. Current Provisions

Provisions are recognized if a liability to a third party arises from a past event which is expected to lead to an outflow of assets and the amount can be reliably measured. They represent uncertain liabilities that are recognized in 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 to the AUTOMOBILE Division in the amount of EUR 15,809 thousand and to the CONTRACT Division in the amount of EUR 6,953 thousand. 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 risk 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.

The remaining other provisions include EUR 5,111 thousand (previous year: EUR 0 thousand) for risks arising from service and work contracts, EUR 3,480 thousand (previous year: EUR 3,480 thousand) for risks from ongoing litigation initiated by employees of an external personnel service provider, and EUR 3,209 thousand (previous year: EUR 1,186 thousand) for maintenance obligations under a terminated lease agreement. Furthermore, miscellaneous other provisions include other operating taxes of EUR 425 thousand (previous year: EUR 433 thousand).