29. Provisions
in thousands of EUR | Legal and regulatory | Warranty | Employee-related | Share based payments | Other | Total |
|---|---|---|---|---|---|---|
At 1 January 2016 | 21,673 | 8,632 | 4,294 | 876 | 1,990 | 37,465 |
Movements in 2016 | ||||||
Acquisitions | - | - | - | - | 58 | 58 |
Addition to provision | 4,373 | 2,692 | 3,759 | 95 | 580 | 11,499 |
Reversal of provision | - 1,237 | - 1,215 | - 491 | - | - 238 | - 3,181 |
Utilized during the year | - 3,134 | - 2,134 | - 928 | - 755 | - 594 | - 7,545 |
Other movements | - | 153 | - | - | - 153 | - |
Exchange differences | 130 | - 7 | - 49 | - | 5 | 79 |
At 31 December 2016 | 21,805 | 8,121 | 6,585 | 216 | 1,648 | 38,375 |
Non-current | 1,987 | 5,055 | 4,871 | - | 419 | 12,332 |
Current | 19,818 | 3,066 | 1,714 | 216 | 1,229 | 26,043 |
At 31 December 2016 | 21,805 | 8,121 | 6,585 | 216 | 1,648 | 38,375 |
At 1 January 2017 | 21,805 | 8,121 | 6,585 | 216 | 1,648 | 38,375 |
Movements in 2017 | ||||||
Addition to provision | 2,798 | 3,090 | 3,342 | 76 | 1,974 | 11,280 |
Reversal of provision | - 1,209 | - | - 1,019 | - | - 432 | - 2,660 |
Utilized during the year | - 2,914 | - 2,420 | - 1,105 | - 292 | - 293 | - 7,024 |
Other movements | - 1,452 | - | 1,452 | - | - | - |
Exchange differences | - 351 | - 7 | - 224 | - | - 147 | - 729 |
At 31 December 2017 | 18,677 | 8,784 | 9,031 | - | 2,750 | 39,242 |
Non-current | 12,298 | 5,197 | 4,501 | - | 692 | 22,688 |
Current | 6,379 | 3,587 | 4,530 | - | 2,058 | 16,554 |
At 31 December 2017 | 18,677 | 8,784 | 9,031 | - | 2,750 | 39,242 |
Legal and regulatory
In June 2009, the French Competition Authority (“FCA”) investigated certain optical suppliers and optical retailers, including GrandVision, active in the branded sunglasses and branded frames sector in France, investigating whether these parties entered into vertical restraints in relation to the distribution of branded sunglasses and branded frames. In May 2015, the Company received a statement of objections (‘notification de griefs’) from the FCA. The Company responded to this statement of objections and booked an adequate provision determined by an assessment of the probability and amount of potential liability. The Company received an official report (“Rapport”) from the FCA on 22 July 2016, reconfirming the accusation and confirming GrandVision’s assumptions of the probability and amount of the potential liability. The Company timely responded to this report on 26 October 2016. On 15 December 2016 a hearing was held before the FCA during which all parties were given the opportunity to defend their case. The FCA had not yet made its decision following this hearing. As the Company expects that the procedure will continue beyond the initial anticipated period, the provision was reclassified from current to non-current provisions in 2017.
Secondly, the provision relates to the Group's ongoing tax risk management process in which it determines potential fiscal claims on VAT and other taxes in various countries. The additions in 2017 and 2016 mainly relate to VAT and other tax risks in Austria and Germany.
Warranty
The Group provides warranty along with the sales of its products. Warranty provision exists to cover possible future expenses that may be incurred rectifying defects in, or providing replacements for, products the Group has sold.
Employee-related
The additions in 2017 relate mainly to severance costs of certain employees as part of restructuring activities.
Share-based payment plans
Refer to note 30.
Other provisions
'Other provisions' mostly include decommissioning liabilities for returning a store or office to its original state.
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