Note 32 Provisions
Provisions which are long-term liabilities
|Guarantee risk reserve||342||310|
|Special payroll tax on pensions||98||85|
|Commitments for joint ventures||47||43|
Provisions which are current liabilities
|Guarantee risk reserve||184||104|
|Parent company, MSEK||2017||2016|
|Special payroll tax on pensions||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|
|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|
|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.
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.
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.
Refers to other minor provisions.