Electrolux 2011 Annual Report Download - page 147
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Note 24 Other liabilities
Group
December 31,
Parent Company
December 31,
2011 2010 2011 2010
Accrued holiday pay 796 812 146 153
Other accrued payroll costs 974 1,390 110 229
Accrued interest expenses 83 68 81 52
Prepaid income 363 286 — —
Other accrued expenses 5,288 5,385 474 648
Other operating liabilities 2,993 2,966 — —
Total 10,497 10,907 811 1,082
Other accrued expenses include accruals for fees, advertising
and sales promotion, bonuses, extended warranty, and other
items. Other operating liabilities include VAT and other items.
Note 23 Other provisions
Group Parent Company
Provisions
for restruc-
turing
Warranty
commit-
ments Claims Other Total
Provisions
for restruc-
turing
Warranty
commit-
ments Other Total
Opening balance, January 1, 2010 1,684 1,796 1,016 2,783 7,279 29 140 41 210
Provisions made 878 852 223 1,178 3,131 44 — 19 63
Provisions used –588 –921 –211 –538 –2,258 –15 –8 –4 –27
Unused amounts reversed –22 –65 — –71 –158 — — — —
Exchange-rate differences –161 –107 –46 –157 –471 — — — —
Closing balance, December 31, 2010 1,791 1,555 982 3,195 7,523 58 132 56 246
Of which current provisions 1,044 739 — 434 2,217 55 17 — 72
Of which non-current provisions 747 816 982 2,761 5,306 3 115 56 174
Opening balance, January 1, 2011 1,791 1,555 982 3,195 7,523 58 132 56 246
Acquisitions of operations — 56 — 396 452 — — — —
Provisions made 695 744 272 721 2,432 31 97 16 144
Provisions used –684 –794 –225 –711 –2,414 –14 –6 –17 –37
Unused amounts reversed –66 –38 — –90 –194 –16 — — –16
Exchange-rate differences –13 –5 13 –129 –134 — — — —
Closing balance, December 31, 2011 1,723 1,518 1,042 3,382 7,665 59 223 55 337
Of which current provisions 1,004 754 — 607 2,365 44 30 5 79
Of which non-current provisions 719 764 1,042 2,775 5,300 15 193 50 258
Provisions for restructuring represent the expected costs to be
incurred as a consequence of the Group’s decision to close some
factories, rationalize production and reduce personnel, both for
newly acquired and previously owned companies. The provisions
for restructuring are only recognized when Electrolux has both a
detailed formal plan for restructuring and has made an announce-
ment of the plan to those affected by it at the balance-sheet date.
The amounts are based on management’s best estimates and are
adjusted when changes to these estimates are known. The larger
part of the restructuring provisions as per December 31, 2011, will
be used during 2012 and 2013.
Provisions for warranty commitments are recognized as a conse-
quence of the Group’s policy to cover the cost of repair of defec-
tive products. Warranty is normally granted for one to two years
after the sale. Provisons for claims refer to the Group’s captive
insurance companies. Other provisions include mainly provisions
for indirect tax, environmental liabilities, asbestos claims or other
liabilities, none of which is material to the Group. The timing of any
resulting outflows for provisions for claims and other provisions is
uncertain.
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