Saab 2015 Annual Report Download - page 105

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FINANCIAL INFORMATION – FINANCIAL STATEMENTS
Onerous contracts
A provision for an onerous contract is recognised when anticipated benefits are
less than the unavoidable costs to fulfil the obligations as set out in the contract.
Guarantees
A provision for guarantees is normally recognised when the underlying products
or services are sold if a reliable calculation of the provision can be made. The pro-
vision is based on historical data on guarantees for the products or similar pro-
ducts and an overall appraisal of possible outcomes in relation to the likelihood
associated with these outcomes.
Soil remediation
In accordance with the Group’s publicly announced environmental policy and
applicable legal requirements, periodic estimates are made of Saab’s obligations
to restore contaminated soil. Anticipated future payments are discounted to pre-
sent value and recognised as an operating expense and a provision.
Group
MSEK 31-12-2015 31-12-2014
Provisions that are long-term liabilities
Obligations related to regional aircraft - 207
Expenditures for restructuring measures 61 58
Onerous contracts 192 223
Other 844 746
Total 1,097 1,234
Provisions that are current liabilities
Obligations related to regional aircraft - 59
Expenditures for restructuring measures 106 53
Onerous contracts 90 103
Other 252 297
Total 448 512
Parent Company
MSEK 31-12-2015 31-12-2014
Obligations related to regional aircraft - 217
Expenditures for restructuring measures 119 48
Onerous contracts 91 112
Other 408 261
Total 618 638
Obligations related to regional aircraft
MSEK Group
Parent
Company
Opening balance, 1 January 2015 266 217
Amount utilised during the year -266 -217
Closing balance, 31 December 2015 - -
Expenditures for restructuring measures
MSEK Group
Parent
Company
Opening balance, 1 January 2015 111 48
Provisions allocated during the year 161 112
Amount utilised during the year -92 -38
Reversal of unutilised amount -4 -3
Reclassification -10 -
Translation differences and other 1 -
Closing balance, 31 December 2015 167 119
Onerous contracts
MSEK Group
Parent
Company
Opening balance, 1 January 2015 326 112
Provisions allocated during the year 95 68
Amount utilised during the year -98 -59
Reversal of unutilised amount -46 -34
Reclassification 4 4
Translation differences and other 1 -
Closing balance, 31 December 2015 282 91
Other provisions
MSEK Group
Parent
Company
Opening balance, 1 January 2015 1,043 261
Provisions allocated during the year 264 181
Amount utilised during the year -199 -84
Reversal of unutilised amount -95 -40
Reclassification 97 90
Translation differences and other -14 -
Closing balance, 31 December 2015 1,096 408
Total provisions
MSEK Group
Parent
Company
Opening balance, 1 January 2015 1,746 638
Provisions allocated during the year 520 361
Amount utilised during the year -655 -398
Reversal of unutilised amount -145 -77
Reclassification 91 94
Translation differences and other -12 -
Closing balance, 31 December 2015 1,545 618
Regional aircraft
Commitments regarding regional aircraft were terminated during 2015.
Restructuring
Structural costs primarily relate to the costs to adapt resources and change over
costs. The expenditure is expected to fall in 2016–2017. Provisions allocated
during the year are mainly attributable to restructuring in connection to the
dissolution of business area
Security and Defence Solutions on 1 January 2016.
Onerous contracts
Provisions for onerous contracts on the closing day relate to command and
control projects, Helicopter 14 and certain other military projects. The provisions
are utilised in pace with the project’s completion.
Other provisions
Other provisions primarily relate to provisions for guarantees and remaining costs
in projects as well as for environmental commitments.
No provision has been made for liability risks associated with the production of
civil aircraft or the production of sub-components for civil aircraft.
Note 35, cont.
SAAB ANNUAL REPORT 2015– 101