Å kodaAuto ANNUAL REPORT 2006 - Skoda Auto

16. Non-current and current provisions (CZK million)
Provisions for Provisions for Provisions Provisions Other Total
warranty claims other obligations for the disposal for employee provisions
arising from sales of end-of-life expenses
vehicles
Balance at 1.1.2005 4,939 1,522 316 445 329 7,551
Utilised (2,902) (1,399) (3) (78) (54) (4,436)
Additions 4,373 1,806 – 176 283 6,638
Interest costs 2 – 12 – – 14
Reversals – (97) (29) (35) (1) (162)
Foreign exchange differences (4) (29) (11) (2) (1) (47)
Balance at 1.1.2006 6,408 1,803 285 506 556 9,558
Utilised (3,172) (1,573) (88) (155) (59) (5,047)
Additions 5,088 1,617 133 253 358 7,449
Interest costs 126 – 19 – – 145
Reversals (27) (116) – (2) (319) (464)
Foreign exchange differences (46) (43) (11) (2) – (102)
Balance at 31.12.2006 8,377 1,688 338 600 536 11,539
Non-current and current provisions according to the time of expected use of resources:
Balance at 31.12.2005 < 1 year > 1 year Total
Provisions for warranty claims 2,864 3,544 6,408
Provisions for other obligations arising from sales 1,782 21 1,803
Provisions for employee benefits 161 345 506
Provisions for the disposal of end-of-life vehicles 84 201 285
Other provisions 556 – 556
Total 5,447 4,111 9,558
Balance at 31.12.2006 < 1 year > 1 year Total
Provisions for warranty claims 2,479 5,898 8,377
Provisions for other obligations arising from sales 1,668 20 1,688
Provisions for employee benefits 218 382 600
Provisions for the disposal of end-of-life vehicles 99 239 338
Other provisions 533 3 536
Total 4,997 6,542 11,539
Provisions for other obligations arising from sales include provision for sale discounts, sale bonuses and similar allowances settlement of
which is expected after the balance sheet date, but for which there is a legal or constructive obligation attributable to sales revenue before
the balance sheet date.
Provisions for employee expenses include mainly provisions for long-term employee benefits and severance payments.
Other provisions include mainly provisions for legal fees and penalty interests.
The Group is not involved in any legal cases or arbitration proceedings that could have a significant impact on the financial position and
the financial results (financial statements) of the Group, and there are no material proceedings expected in the near future. The Group
provides for the probable expenses for existing legal and arbitration proceedings by means of a relevant provision.
86