PROVISIONS

12 Months Ended

Dec. 31, 2022

23. PROVISIONS

Movements in provisions are as follows:


	At December 31, 2021	Additional provisions	Utilization	Releases	Translation differences	Reclassification and other movements	At December 31, 2022
	(€ thousand)
Warranty and recall campaigns provision	108,767	61,076	(39,958)	(3,854)	38	—	126,069
Legal proceedings and disputes	13,701	1,601	(1,213)	(1,202)	325	(1,150)	12,062
Environmental and other risks	28,400	17,178	(1,802)	(2,468)	105	1,150	42,563
Total provisions	150,868	79,855	(42,973)	(7,524)	468	—	180,694

Warranty and recall campaigns

The provision for warranty and recall campaigns represents the best estimate of commitments given by the Group for contractual, legal, or constructive obligations arising from product warranties given for a specified period of time. Warranty and recall campaigns provisions are recognized upon shipment and estimated on the basis of the Group’s past experience and contractual terms. Related costs are recognized within cost of sales.

Legal proceedings and disputes

The provision for legal proceedings and disputes represents management’s best estimate of the expenditures expected to be required to settle or otherwise resolve legal proceedings and disputes. This class of claims relates to allegations by contractual counterparties that the Group has violated the terms of the arrangements, including by terminating the applicable relationships. Judgments in these proceedings may be issued in 2022 or beyond, although any such judgments may remain subject to ongoing judicial review. While the outcome of these proceedings is uncertain, any losses in excess of the provisions recorded are not expected to be material to the Group’s financial condition or results of operations. Additions to the provision for legal proceedings and disputes are recognized within other expenses, net.

Environmental and other risks

The provision for environmental and other risks primarily relates to environmental risks, including those relating to emissions regulations, as well as to disputes and matters which are not subject to legal proceedings, including disputes with suppliers, distributors, employees and other parties.

The following table presents where the additional provisions to environmental and other risks recognized for the years ended December 31, 2022, 2021 and 2020 were recorded within the consolidated income statement.


	For the years ended December 31,
	2022	2021	2020
	(€ thousand)
Recorded in the consolidated income statement within:
Cost of sales	15,616	10,562	6,352
Selling, general and administrative costs	1,562	1,744	1,174

Total	17,178	12,306	7,526