Note 32 Provisions

Provisions which are long-term liabilities

Group, MSEK  2017 2016
Guarantee risk reserve 342 310
Re-establishment costs 137 136
Special payroll tax on pensions 98 85
Commitments for joint ventures 47 43
Other 13 20
Total 637 594

Provisions which are current liabilities

Group, MSEK 2017 2016
Guarantee risk reserve 184 104
Disputes 56 55
Other 79 46
Total 319 205

Provisions

Parent company, MSEK 2017 2016
Special payroll tax on pensions 32 28
Total 32 28

 

Group 2017, MSEK Guarantee risk reserve Re-establishment costs Special payroll tax on pensions Disputes Commitments for joint ventures Other Total
Opening recognized value 414 136 85 55 43 66 799
Provisions set aside during the year 189 8 13 31 5 66 312
Increase through business combinations 2 1 3
Amounts requisitioned during the year -103 -7 -20 -37 -167
Reversed unutilized provisions during the year -11 -10 -2 -23
Increase in discounted amounts during the year 0 0
Reclassifications 35 35
Exchange rate differences 0 0 -2 -1 -3
Closing recognized value 526 137 98 56 47 92 956
Of which are long-term provisions 342 137 98 47 13 637
Of which are current provisions 184 56 79 319

Group 2016, MSEK Demobilizaton costs Guarantee risk reserve Re-establishment costs Special payroll tax on pensions Disputes Commitments for joint ventures Other Total
Opening recognized value 1 400 96 72 61 46 35 711
Provisions set aside during the year 167 23 13 4 6 55 268
Increase through business combinations 30 30
Amounts requisitioned during the year -1 -137 -12 -11 -9 -2 -172
Reversed unutilized provisions during the year -24 -1 -8 -26 -59
Reclassifications 8 8
Exchange rate differences 8 1 4 13
Closing recognized value – 414 136 85 55 43 66 799
Of which are long-term provisions 310 136 85 43 20 594
Of which are current provisions 104 55 46 205

 

Parent company, MSEK 2017 2016
Opening recognized value 28 25
Provisions set aside during the year 4 3
Closing recognized value 32 28
Of which are long-term provisions 32 28

Guarantee risk reserve

Refers to the estimated cost of remedying faults and deficiencies in finished projects that arise while the project is under warranty and rental guarantees. Resources are consumed during the guarantee period of the project which is generally two to five years. As the effect of the point in time for payment is not material expected future disbursements are not valued at their current value. Provisions for guarantee risks have been made in all business areas.

Re-establishment costs

Refers to restoration costs in Industry operations for gravel pits and rock quarries after termination of operations.The provision grows in relation to the amount quarried and is reversed after restoration is complete. The reserved sum is expected to be used successively after operations are terminated. The estimated restoration time is 1 to 15 years. Our calculation of reserved amounts is based on estimated future payments for restoration and reflects Peab’s best assessment taking risks in cash flows into consideration.

Special payroll tax on pensions

There are pension plans where the Group has acquired endowment insurance which is hedged in favor of employees through pledges. Provisions for special payroll tax are reserved calculated on the fair value of the endowment insurance, except in cases where the contract stipulates that the endowment insurance covers special payroll tax.

Disputes

Refers to disputes in business areas Construction and Industry.

Commitments for joint ventures

Refers to shares in joint ventures with a negative consolidated value in the business area Project Development.

Others

Refers to other minor provisions.