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.