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 |
400 |
208 |
340 |
245 |
1,193 |
Provisions |
50 |
310 |
15 |
44 |
419 |
Company acquisitions |
– |
– |
– |
23 |
23 |
Utilizations |
–128 |
–201 |
–14 |
–43 |
–386 |
Reclassifications |
– |
– |
– |
–2 |
–2 |
Dissolutions |
–74 |
– |
–49 |
–26 |
–149 |
Translation differences |
8 |
–7 |
27 |
6 |
34 |
Value, December 31 |
256 |
310 |
319 |
247 |
1,132 |
|
|
|
|
|
|
Provisions comprise: |
|
|
|
|
|
BS Short-term component |
|
|
|
|
736 |
BS Long-term component |
|
|
|
|
396 |
SEKm |
2020 |
2019 |
||
|---|---|---|---|---|
Value, January 1 |
1,606 |
3,166 |
||
Provisions |
429 |
912 |
||
Divestments of Group companies and other operations |
– |
–2 |
||
Utilizations |
–696 |
–1,403 |
||
Reclassifications |
–14 |
–9491) |
||
Dissolutions |
–64 |
–157 |
||
Translation differences |
–68 |
39 |
||
Value, December 31 |
1,193 |
1,606 |
||
|
||||
Distribution of other provisions by maturity1)
1) The timing of provisions totaling SEK 166m cannot be assessed and are therefore not included in the above.
Of the provisions for the period for Environment, SEK 310m pertains to a liability for carbon dioxide emissions, which will be settled in 2022.
Utilizations for the period concerning Efficiency programs are mainly attributable to restructuring measures at the production facilities of Professional Hygiene and Consumer Tissue.
The provisions recognized at the end of the period attributable to Efficiency programs relate mainly to restructuring measures at production facilities of Consumer Tissue. Provisions for Environment pertain mainly to a liability for carbon dioxide emissions. Provisions for Legal disputes mainly consist of reserves for a case in Latin America. Other provisions mainly comprise reserves in Italy in connection with, among other items, grants received for future investment commitments.