Annual Report 2011 (5.07 MB, PDF-File) - Oerlikon

116
Provisions
in CHF million
Key Figures Group Notes OC Oerlikon Corporation AG, Pfäffikon
Notes to the consolidated financial statements
Product
warranties
Onerous
contracts 1 Restructuring 2
Other
provisions 3
Balance at January 1, 2011 70 17 60 38 185
Conversion differences – –1 –1 – –2
Change in the scope of consolidated companies – – – – –
Additions 40 2 3 9 54
Amounts used –19 –4 –20 –6 –49
Amounts reversed –13 –3 –3 –5 –24
Transfers – – – –5 –5
Balance at December 31, 2011 78 11 39 31 159
Due within 1 year 76 4 13 18 111
Due beyond 1 year 4 2 7 26 13 48
1 Provisions are made for cases where the costs of fulfilling contractual obligations (e.g. projects) are higher than their expected economic benefit.
During the preparation of the financial statements, a systematic reassessment of the project risks was conducted and appropriate adjustments
made to the cost estimates for the projects underway in the individual Business Units. The basis for such was the so-called “most likely outcome”.
This requires estimates to be made with regard to the technical and time-related realization of those projects, and also includes a quantification of
the relevant risks.
2 The restructuring provisions pertain to the Segments as follows:
in CHF million Restructuring
Textile 5
Drive Systems 27
Vacuum 1
Coating 6
Total 39
The restructuring provisions in the Drive Systems Segment relate to the reorganization of this Segment.
3 Other provisions cover various risks which occur in the normal course of business. They consist mainly of provisions for pending litigation and
technical risks.
4 For the long-term provisions the cash outflow is assumed to be within the next two to three years.
2011
Total
Note 16