G24 Other provisions
|
Warranties |
Restructuring |
Employee benefits |
Environmental obligations |
Legal disputes |
Other obligations |
Total |
|---|---|---|---|---|---|---|---|
Balance at January 1, 2022 |
444 |
1,389 |
676 |
425 |
230 |
742 |
3,907 |
Discontinued operations |
–45 |
–166 |
–91 |
–186 |
–8 |
–18 |
–514 |
Provisions made during the year |
277 |
1,170 |
466 |
7 |
124 |
306 |
2,351 |
Provisions used during the year |
–172 |
–749 |
–401 |
–14 |
–10 |
–450 |
–1,796 |
Unutilized provisions reversed during the year |
–45 |
–141 |
–56 |
–7 |
–45 |
–241 |
–536 |
Reclassifications |
2 |
–11 |
1 |
– |
1 |
–29 |
–36 |
Business combinations |
28 |
– |
144 |
– |
16 |
11 |
200 |
Translation differences |
35 |
38 |
36 |
25 |
16 |
48 |
198 |
Balance at December 31, 2022 |
524 |
1,532 |
774 |
250 |
323 |
369 |
3,772 |
of which current |
425 |
1,444 |
416 |
38 |
304 |
319 |
2,947 |
of which non-current |
99 |
88 |
359 |
212 |
19 |
49 |
826 |
|
|
|
|
|
|
|
|
Balance at January 1, 2023 |
524 |
1,532 |
774 |
250 |
323 |
369 |
3,772 |
Provisions made during the year |
448 |
482 |
662 |
46 |
42 |
254 |
1,934 |
Provisions used during the year |
–304 |
–673 |
–442 |
–17 |
–77 |
–280 |
–1,792 |
Unutilized provisions reversed during the year |
–98 |
–174 |
–71 |
0 |
–37 |
–109 |
–490 |
Reclassifications |
9 |
–126 |
–8 |
1 |
37 |
176 |
88 |
Business combinations |
7 |
– |
1 |
– |
3 |
– |
11 |
Divestments |
0 |
–68 |
– |
– |
–57 |
– |
–126 |
Translation differences |
–14 |
–28 |
–20 |
–7 |
–5 |
–7 |
–82 |
Balance at December 31, 2023 |
572 |
945 |
898 |
272 |
227 |
402 |
3,316 |
of which current |
457 |
863 |
512 |
52 |
205 |
340 |
2,429 |
of which non-current |
115 |
82 |
386 |
220 |
22 |
62 |
887 |
§ Accounting principles
The provisions are mainly related to warranty commitments, restructuring, environmental obligations, long-term incentives and legal disputes and claims, such as value-added tax issues, and customer and supplier claims relating to ongoing or finished projects.
If the effect is material, the provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
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 or site restoration.
Legal disputes
Legal disputes include provisions for claims which, at the balance sheet date, had not been closed.
Other obligations
Other obligations include provisions for onerous contracts and obligations within the scope of Sandvik Försäkring AB’s operations.
! Critical estimates and key judgments
Disputes
Sandvik is party to a number of disputes and legal proceedings in the ordinary course of business. Management consults with legal experts on issues related to legal disputes and with other experts internal or external to the Company on issues related to the ordinary course of business. It is our best judgement assessment that neither the Parent Company, nor any subsidiary, is involved in legal proceedings or arbitration that may be deemed to have a materially negative effect on the business, the financial position or results of operations.