Electrolux 2012 Annual Report Download - page 63

Note 24 Other liabilities
Group
December 31,
Parent Company
December 31,
2012 2011 2012 2011
Accrued holiday pay 792 796 160 146
Other accrued payroll costs 1,093 974 192 110
Accrued interest expenses 68 83 67 81
Prepaid income 310 363 — —
Other accrued expenses 6,289 5,288 370 474
Other operating liabilities 3,277 2,993 — —
Total 11,829 10,497 789 811
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, 2011 1,791 1,555 982 3,195 7,52 3 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 30 579
Of which non-current provisions 719 764 1,042 2,775 5,300 15 193 50 258
Opening balance, January 1, 2012 1,723 1,518 1,042 3,382 7,6 6 5 59 223 55 337
Provisions made 941 793 354 479 2,567 359 — — 359
Provisions used –478 –865 –227 –1,309 –2,879 –160 —–7 –167
Unused amounts reversed –68 –31 0–177 –276 — — –10 –10
Exchange-rate differences –77 –56 –50 –197 –380 — — — —
Closing balance, December 31, 2012 2,041 1,359 1,119 2,178 6,697 258 223 38 519
Of which current provisions 664 769 222 491 2,146 234 34 3271
Of which non-current provisions 1,377 590 897 1,687 4,551 24 189 35 248
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,
2012, will be used over the period 2013 to 2015.
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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