25. Provisions
The breakdown of the balance under this heading in the accompanying consolidated balance sheets, based on type of provisions, is as follows:
Provisions. Breakdown by concepts | Millions of Euros | ||
---|---|---|---|
2011 | 2010 | 2009 | |
Provisions for pensions and similar obligations | 5,577 | 5,980 | 6,246 |
Provisions for taxes and other legal contingencies | 350 | 304 | 299 |
Provisions for contingent risks and commitments | 291 | 264 | 243 |
Other provisions | 1,343 | 1,774 | 1,771 |
Total | 7,561 | 8,322 | 8,559 |
The changes in the heading “Provisions for contingent risks and commitments” in the accompanying consolidated balance sheets are presented in Note 7.1.8, together with the changes of impairment losses.
The changes in 2011, 2010 and 2009 in the balances under this heading in the accompanying consolidated balance sheets are as follows:
Provisions for Pensions and Similar Obligations. Changes Over the Period |
Notes | Millions of Euros | ||
---|---|---|---|---|
2011 | 2010 | 2009 | ||
Balance at the beginning |
|
5,980 | 6,246 | 6,359 |
Add - |
|
|
|
|
Charges to income for the year |
|
613 | 606 | 747 |
Interest expenses and similar charges | 39.2 | 259 | 259 | 274 |
Personnel expenses | 46.1 | 51 | 37 | 44 |
Provision expenses |
|
303 | 310 | 429 |
Charges to equity (*) | 26.2 | 9 | 64 | 149 |
Transfers and other changes |
|
(8) | 16 | 26 |
Less - |
|
|
|
|
Payments |
|
(794) | (815) | (980) |
Amount used and other changes |
|
(223) | (137) | (55) |
Balance at the end |
|
5,577 | 5,980 | 6,246 |
Provisions for Taxes, Legal Contingents and Other Provisions. Changes Over the Period | Millions of Euros | ||
---|---|---|---|
2011 | 2010 | 2009 | |
Balance at beginning | 2,078 | 2,070 | 1,898 |
Add - |
|
|
|
Charge to income for the year | 235 | 145 | 152 |
Acquisition of subsidiaries | 61 | - | - |
Transfers and other changes | - | 41 | 360 |
Less - |
|
|
|
Available funds | (84) | (90) | (103) |
Amount used and other variations | (597) | (88) | (237) |
Balance at the end | 1,693 | 2,078 | 2,070 |
Ongoing legal proceedings and litigation -
The Group participates in certain legal proceedings in various jurisdictions, including Spain, Mexico and the United States, arising from the ordinary course of the business. BBVA believes that none of those legal proceedings is material, individually or as a whole, and does not expect any significant impact on the operating results, liquidity or financial situation of the Bank or the Group to arise. The Group’s management believes that the provisions given regarding the legal proceedings are adequate and does not believe it necessary to report any possible contingencies that could arise from the ongoing legal proceedings, given that it does not consider them material.