Note 21. Other provisions
|
Warranties |
Restructuring |
Employee benefits |
Environmental obligations |
Legal disputes |
Other obligations |
Total |
---|---|---|---|---|---|---|---|
Group |
|
|
|
|
|
|
|
Balance at 31 December 2018 |
458 |
1,188 |
571 |
359 |
295 |
404 |
3,275 |
Provisions made during the year |
85 |
1,681 |
355 |
100 |
–40 |
574 |
2,756 |
Provisions used during the year |
–116 |
–945 |
–318 |
–59 |
–27 |
–195 |
–1,659 |
Unutilized provisions reversed during the year |
–59 |
–177 |
–17 |
–5 |
–29 |
–136 |
–422 |
Provision disposed through divestment |
— |
–0 |
0 |
— |
— |
1 |
1 |
Reclassifications |
46 |
–156 |
55 |
–2 |
3 |
–4 |
–58 |
Translation differences |
30 |
3 |
–23 |
5 |
6 |
–27 |
–7 |
Balance at 31 December 2019 |
445 |
1,595 |
622 |
398 |
208 |
618 |
3,885 |
of which current |
374 |
1,442 |
221 |
60 |
171 |
425 |
2,693 |
of which non-current |
71 |
154 |
401 |
338 |
37 |
192 |
1,193 |
|
|
|
|
|
|
|
|
Parent Company |
|
|
|
|
|
|
|
Balance at 31 December 2018 |
9 |
36 |
143 |
27 |
— |
— |
215 |
Provisions made during the year |
1 |
265 |
56 |
25 |
— |
— |
347 |
Provisions used during the year |
2 |
–75 |
–52 |
— |
— |
— |
–125 |
Unutilized provisions reversed during the year |
— |
–4 |
— |
— |
— |
— |
–4 |
Reclassifications |
–0 |
— |
–0 |
— |
— |
0 |
0 |
Balance at 31 December 2019 |
12 |
222 |
147 |
52 |
— |
0 |
433 |
Warranties
A provision for warranties is recognized when the underlying products or services are sold. The provision is based on historical warranty data and a weighing of all possible outcomes against their associated probabilities.
Restructuring
A provision for restructuring is recognized when the Group has approved a detailed and formal restructuring plan and the restructuring has either commenced or has been announced publicly. Future operating costs are not provided for.
Employee benefits
A provision for personnel-related benefits is recognized in accordance with agreements entered for long-term incentive programs, local bonus programs, part-time pensions and other personnel obligations.
Environmental obligations
An environmental provision is recognized when there is a legal obligation for a clean up.
Legal disputes
Legal disputes include provisions for claims which, at the balance sheet date, had not been closed.
Site restoration
Provision for costs for restoring contamined land is made in accordance with the Group’s published environmental principles when there is a legal requirement or other binding commitment to restore established contaminated land and when the cost can be measured with reasonable precision.
Other obligations
Other obligations include provisions for onerous contracts and obligations within the scope of Sandvik Försäkring AB’s operations. Provisions classified as current are expected to result in an outflow of resources within twelve months from the balance sheet date.