D6. Other provisions
AP Accounting principles
Provisions are recognized in the consolidated balance sheet when there is a legal or informal obligation arising from past events and it is probable that payments will be required to settle the obligation. It must also be possible to reliably estimate the amount to be paid. The provision is valued at the present value of the anticipated future expenditure to settle the obligation.
A provision for restructuring measures is recognized when the Group has established a detailed plan and either implementation has begun or the main features of the measures have been communicated to the parties involved. Restructuring costs include, for example, costs for plant closures, impairment of production machinery and costs for personnel reductions.
KAA Key assessments and assumptions
The amount of the provisions made relating to legal disputes is based on the company’s best assessment, which was determined in consultation with local expertise in the field.
SEKm |
Efficiency programs |
Environment |
Legal disputes |
Other |
Total |
|---|---|---|---|---|---|
Value, January 1 |
787 |
212 |
316 |
291 |
1,606 |
Provisions |
52 |
208 |
113 |
56 |
429 |
Utilizations |
–381 |
–208 |
–10 |
–97 |
–696 |
Reclassifications |
– |
– |
–39 |
25 |
–14 |
Dissolutions |
–40 |
– |
–3 |
–21 |
–64 |
Translation differences |
–18 |
–4 |
–37 |
–9 |
–68 |
Value, December 31 |
400 |
208 |
340 |
245 |
1,193 |
|
|
|
|
|
|
Provisions comprise: |
|
|
|
|
|
BS Short-term component |
|
|
|
|
748 |
BS Long-term component |
|
|
|
|
445 |
SEKm |
2019 |
2018 |
||||||
|---|---|---|---|---|---|---|---|---|
Value, January 1 |
3,166 |
3,028 |
||||||
Provisions |
912 |
1,526 |
||||||
Divestments of Group companies and other operations |
–2 |
– |
||||||
Utilizations |
–1,403 |
–669 |
||||||
Reclassifications1) |
–949 |
56 |
||||||
Dissolutions |
–157 |
–853 |
||||||
Translation differences |
39 |
78 |
||||||
Value, December 31 |
1,606 |
3,166 |
||||||
|
||||||||
Distribution of other provisions by maturity1)
1) The timing of provisions totaling SEK 197m cannot be assessed.
Of the Provisions for the period for Environment, SEK 208m pertains to a liability for carbon dioxide emissions, which will be settled in 2021. Provisions for the period for Legal disputes primarily relate to an expanded provision for a matter for which a provision has already been made.
Utilizations for the period concerning Efficiency programs are attributable to restructuring measures at the production facilities of Professional Hygiene and Consumer Tissue and the Group-wide cost-savings program. Utilizations for the period concerning Other provisions mainly relate to the payment of foreign tax of a non-recurring nature on non-current assets outside Sweden.
The provisions recognized at the end of the period attributable to Efficiency programs relate mainly to restructuring measures at production facilities of Professional Hygiene and Consumer Tissue. Provisions for Environment pertain mainly to a liability for carbon dioxide emissions. Provisions for Legal disputes mainly consist of reserves for cases relating to the Andean Community (CAN). Other provisions mainly comprise reserves in Italy in connection with, among other items, grants received for future investment commitments.