23. Provisions
The breakdown of the balance under this heading in the accompanying consolidated balance sheets, based on type of provisions, is as follows:
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|
|
Millions of Euros | ||
|---|---|---|---|
| Provisions. Breakdown by concepts | 2014 | 2013 | 2012 |
| Provisions for pensions and similar obligations | 5,970 | 5,512 | 5,777 |
| Provisions for taxes and other legal contingencies | 262 | 208 | 406 |
| Provisions for contingent risks and commitments | 381 | 346 | 322 |
| Other provisions (*) | 831 | 787 | 1,329 |
| Total | 7,444 | 6,853 | 7,834 |
The changes in the heading “Provisions for contingent risks and commitments” in the accompanying consolidated balance sheets are presented in Note 7.3.8. together with the changes in impairment losses of other financial instruments.
The change in provisions for pensions and similar obligations for the years ended December 31, 2014, 2013 and 2012 is as follows:
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| Provisions for Pensions and Similar Obligations. Changes Over the Period |
Notes | Millions of Euros | ||
|---|---|---|---|---|
| 2014 | 2013 | 2012 | ||
| Balance at the beginning |
|
5,512 | 5,777 | 5,577 |
| Add - |
|
|
|
|
| Charges to income for the year |
|
1,004 | 605 | 683 |
| Interest expenses and similar charges | 36.2 | 172 | 199 | 257 |
| Personnel expenses | 43.1 | 58 | 70 | 54 |
| Provision expenses |
|
774 | 336 | 373 |
| Charges to equity (*) | 24.2 | 497 | 12 | 462 |
| Transfers and other changes |
|
75 | (65) | 19 |
| Less - |
|
|
|
|
| Benefit payments |
|
(854) | (817) | (813) |
| Employer contributions |
|
(264) | - | (151) |
| Balance at the end |
|
5,970 | 5,512 | 5,777 |
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| Provisions for Taxes, Legal Contingents and Other Provisions. Changes Over the Period |
Millions of Euros | ||
|---|---|---|---|
| 2014 | 2013 | 2012 | |
| Balance at beginning | 995 | 1,735 | 1,628 |
| Add - |
|
|
|
| Charge to income for the year | 387 | 344 | 245 |
| Acquisition of subsidiaries | - | - | 678 |
| Transfers and other changes | - | - | - |
| Less - |
|
|
|
| Available funds | (75) | (148) | (90) |
| Amount used and other variations | (214) | (880) | (720) |
| Disposal of subsidiaries | - | (56) | (6) |
| Balance at the end | 1,093 | 995 | 1,735 |
Ongoing legal proceedings and litigation
Several entities of the Group are party to legal actions in a number of jurisdictions (including, among others, Spain, Mexico and the United States) arising in the ordinary course of business. According to the procedural status of these proceedings and the criteria of the legal counsel, BBVA considers that none of such actions is material, individually or in the aggregate, and none is expected to result in a material adverse effect on the Group's financial position, results of operations or liquidity, either individually or in the aggregate. The Group´s Management believes that adequate provisions have been made in respect of such legal proceedings and considers that the possible contingencies that may arise from such on-going lawsuits are not significant enough to require disclosure to the markets.