Review of 2012 – EUR - Skanska

Note29ProvisionsProvisions are reported in compliance with IAS 37, “Provisions, Contingent Liabilitiesand Contingent Assets. See “Accounting and valuation principles,” Note 1.Provisions are allocated in the statement of financial position between noncurrentliabilities and current liabilities. Provisions are both interest-bearing andnon-interest-bearing. Provisions that are part of Skanska’s operating cycle are recognizedas current. Interest-bearing provisions that fall due within a year are treated ascurrent.Dec 31, 2012 Dec 31, 2011Non-current provisionsInterest-bearing 1.4 1.9Current provisionsInterest-bearing 6.2 5.4Non-interest-bearing 694.4 659.6Total 702.0 666.9The change in provisions by reserves for legal disputes, provisions for warrantyobligations and other provisions, is presented in the following table.Reserve for legal disputesProvision for warrantyobligations Other provisions Total2012 2011 2012 2011 2012 2011 2012 2011January 1 143.7 140.1 242.6 261.0 280.7 160.9 666.9 562.0Acquisitions 0.2 0.8 0.0 0.3 –0.2 –10.3 0.0 –9.2Divestments –0.1 –9.5 –0.1 –3.7 0.0 5.0 –0.2 –8.2Provisions for the year 66.2 93.9 78.6 70.4 76.4 130.8 221.1 295.2Provisions utilized –50.0 –61.4 –38.0 –57.0 –30.1 –36.4 –118.1 –154.8Unutilized amounts that were reversed, change in value –32.7 –18.2 –16.4 –26.5 –27.6 –1.2 –76.7 –45.9Exchange-rate differences 4.9 –1.1 8.7 –2.7 5.5 1.3 19.1 –2.5Reclassifications 5.4 –1.0 –4.8 0.7 –10.7 30.7 –10.1 30.3December 31 137.5 143.7 270.4 242.6 294.0 280.7 702.0 666.9Specification of “Other provisions”2012 2011Provisions for restructuring measures 15.1 23.3Employee-related provisions 58.5 48.7Environmental obligations 15.8 15.9Provision for social-insurance contributions on pensions 68.6 50.6Contingent consideration 28.5 32.9Provision for negative values recognized in joint ventures 21.5 26.1Miscellaneous provisions 85.9 83.2Total 294.0 280.7Note30Trade and other payablesNon-interest-bearing liabilities in business operations are recognized as “Tradeand other payables.” Such liabilities are part of the Group’s operating cycle and arerecognized as current liabilities.Normal cycle time for “Other provisions” is about 1 to 3 years.Provisions for warranty obligations refer to expenses that may arise during thewarranty period. Such provisions in Construction are based on individual assessmentsof each project or average experience-based cost, expressed as a percentageof sales during a five-year period. The expenses are charged to each project on acontinuous basis. Provisions for warranty obligations in other business streams arebased on individual assessments of each project. The change in 2012 was mainlyrelated to Construction.Provisions for legal disputes refer to provisions in the Construction businessstream for projects that have been completed.Employee-related provisions included such items as the cost of profit-sharing,certain bonus programs and other obligations to employees.Among provisions for environmental obligations are the costs of restoring gravelpits to their natural state in Swedish operations.Dec 31, 2012 Dec 31, 2011Trade payables 1,456.0 1,310.3Other operating liabilities to joint ventures 0.7 0.6Other operating liabilities 1 1,040.9 877.5Accrued expenses and prepaid income 1,122.5 1,015.4Total 3,620.1 3,203.8of which financial instruments reported in Note 6,“Financial instruments and financial risk management.”Accounts payable 1,456.0 1,310.3Other operating liabilities including accrued interestexpenses 59.7 73.91,515.8 1,384.2of which non-financial instruments 2,104.3 1,819.61 “Other operating liabilities” included EUR 46.0 M (59.3) for checks issued but not yet cashed inthe U.S. and the U.K. See “Accounting and valuation principles,” Note 1.146 Notes, including accounting and valuation principles Skanska Review of 2012 – EUR version