Changes in other provisions were as follows.
|
|
December 31, 2008 | |||||
|---|---|---|---|---|---|---|
| SEK in millions | Payroll taxes on future pension payments | Restructuring provisions | Warranty provisions |
Damages and court cases |
Insurance provisions | Total |
| Opening balance | 60 | 47 | 78 | 240 | 55 | 480 |
| of which financial liabilities at amortized cost | – | – | 78 | – | – | 78 |
| Provisions for the period | 3 | 224 | 3 | – | – | 230 |
| Utilized provisions | – | -53 | -41 | – | -4 | -98 |
| Reversals of provisions | – | -45 | -28 | – | – | -73 |
| Reclassifications | – | -73 | – | – | – | -73 |
| Timing and interest-rate effects | – | -2 | -0 | – | – | -2 |
| Closing balance | 63 | 98 | 12 | 240 | 51 | 464 |
| of which non-current portion | 63 | 35 | 8 | – | 51 | 157 |
| of which current portion | – | 63 | 4 | 240 | – | 307 |
| of which financial liabilities at amortized cost (see Categories – Note 21) | – | – | 12 | – | – | 12 |
Provisions are discounted to present value, which equals fair value. Refer to Note 21 “Financial Assets and Liabilities by Category” for more information on financial instruments classified by category. As of December 31, 2008, contractual undiscounted cash flows for the financial liabilities represented the following expected maturities.
|
Expected maturity SEK in millions |
2009 | 2010 | 2011–2013 | Later years | Total | Carrying value |
|---|---|---|---|---|---|---|
| Financial liabilities | 4 | 4 | – | 7 | 15 | 12 |
Restructuring provisions mainly refer to staff redundancy costs related to cost savings programs in the Swedish operations, launched by management in 2005 and in 2008. The remaining provision as of December 31, 2008 is expected to be fully used by 2012. Warranty provisions also include provisions for potential litigation and other provisions related to disposals and winding-up of group entities and associated companies.
The provisions represent the present value of management's best estimate of the amounts required to settle the liabilities. The estimates may vary mostly as a result of changes in actual pension payments, changes in the actual number of months an employee is staying in redeployment before leaving, changes in tax and other legislation and changes in the actual outcome of negotiations with lessors, sub-contractors and other external counter-parts as well as the timing of such changes.