Note 28. Other provisions

Movement schedule

Consolidated

SEK millions

January 1

Translation difference

Acquired

New provisions and increase of existing provisions

Amounts used

Unused amounts reversed

December 31

2022

Claims & warranty

1,262

66

62

598

-757

-113

1,118

Deferred costs

170

11

119

-105

-13

182

Restructuring

143

6

597

-97

-23

626

Onerous contracts

70

5

90

-58

-11

96

Environmental

50

50

Litigations

184

3

59

-38

0

208

Other

344

40

197

-196

-51

334

Total

2,223

131

62

1,660

-1,251

-211

2,614

Of which:

current

1,811

2,164

non-current

412

450

2023

Claims & warranty

1,118

-31

4

541

-445

-106

1,081

Deferred costs

182

0

219

-169

-12

220

Restructuring

626

-51

59

-371

-49

214

Onerous contracts

96

-2

2

-79

-1

16

Environmental

50

50

Litigations

208

-3

117

-138

-13

171

Other

334

-15

187

-120

-44

342

Total

2,614

-102

4

1,125

-1,322

-225

2,094

Of which:

current

2,164

1,757

non-current

450

337

Unused amounts reversed refer to, among other items, changed classifications and reversals of provisions made in prior years that have not been used.

Each type of provision entails everything from a few up to a large number of different items. It is therefore not practicable or particularly meaningful to specify the provisions item by item. As indicated above a clear majority of the provisions will result in disbursements within the next year.

Claims & warranty refers to claims from customers according to the conditions in issued warranties. The claims concern technical problems with the delivered goods or that promised performance has not been achieved.

Deferred costs are partly costs that are known but not yet debited at the time of invoicing, partly costs that are unknown but expected at the time of invoicing. The provision for deferred costs is charged to costs of goods sold in order to get a correct phasing of the gross margin.

Provisions for restructuring are usually relating to closure of plants or closure or move of production lines, businesses, functions etc. or reduction of the number of employees in connection with a downturn in the business climate. The provisions for restructuring are affecting approximately 6 (500) employees.

The provision for onerous contracts is relating to orders where a negative gross margin is expected. Provisions are made as soon as a final loss on the order can be expected. This can in exceptional cases happen already at the time when the order is taken. Normally this provision is relating to larger and complex orders where the final margin is more uncertain.

The provision for litigations refers to ongoing or expected legal disputes. The provision covers expected legal costs and expected amounts for damages or settlements.

Other refers to miscellaneous provisions that do not fall within any of the above categories.