Note 24 Other provisions

Note 24 Other provisions

2013, Jan–Dec, SEKm Beginning balance Provisions Reversals Utilizations Translation effect Ending balance
Restructuring activities





Personnel reductions 713 510 –75 –400 12 760
Other closure costs 37 6
–16 1 28
Future condtional pension commitments 1)





Special payroll tax 189
–8

181
Future conditional pension commitments under IAS 19 781 51 –104
19 747
Other





Job-related injuries 43 4
–5
42
Pension adjustments in relation to the Danish state 40 24
–22 1 43
Provision, commemorative awards 141 14
–24 9 140
Total 1,944 609 –187 –467 42 1,941
Of which, current provisions 359



555
Of which, non-current provisions 1,585



1,386
Expected payments, SEKm 1 year 2 years 3 years >3 years
Provisions, restructuring 533 170 46 39
Provisions, future conditional pensions 2) 3) 238 74 69 419
Other provisions 3) 29 25 21 165
Total 800 269 136 623

1) Restated due to changes in IAS 19 Revised, Employee Benefits.

2) Expected payments for future conditional pensions (excl. special payroll tax) are calculated pursuant to IAS 19.

3) Expected payments are somewhat higher than the respective provision due to the fact that the provision is calculated as the present value of the expected payments.

2012, Jan–Dec, SEKm Beginning balance Provisions Reversals Utilizations Translation effect Ending balance
Restructuring activities





Personnel reductions 435 947 –58 –602 –2 720
Other closure costs 35 10 –1 –25
19
Future conditional pension commitments





Special payroll tax 196
–10
3 189
Future conditional pension commitments under IAS 19 807 50 –90
14 781
Other





Job-related injuries 48 3
–8
43
Pension adjustments in relation to the Danish state 49 6
–14 –1 40
Provision, commemorative awards 171

–25 –5 141
Other provisions 13


–2 11
Total 1,754 1,016 –159 –674 7 1,944
Of which, current provisions 351



359
Of which, non-current provisions 1,403



1,585

Provisions for restructuring measures

Restructuring provisions include expenses that are estimated to arise in future years as a consequence of the group’s cost reduction program for administration and decision to streamline production.

Amounts are calculated based on corporate management’s best estimates. Provisions are reviewed at each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources will be required to settle the obligation, the provision is reversed.

New provisions and reversals are reported in the business operation that makes the decision about closure.

In 2013, provisions and reversals for restructuring measures with an earnings impact on other costs totaled SEK 441m. During the quarter, provisions and reversals for restructuring measures with an earnings impact on other costs totaled SEK 207m; see also Note 6, Other Costs. The effect of provisions related to future conditional pension commitments, the reversal of pension payments to the Danish state and commemorative awards is reported as personnel expense.

The utilization of provisions totaled SEK 462m in 2013, of which SEK 451m were payments of personnel expenses. The utilization of provisions during the quarter totaled SEK 118m, of which SEK 117m were personal expenses.

The discount effect is reported in the income statement’s financial items. Translation differences related to currency effects are reported in total comprehensive income.

Provisions, estimated future conditional pensions

PostNord is responsible for future conditional pension benefits under the transition regulations. The transition regulations apply to certain employees who are entitled to retire at the age of 60 or 63. Consideration has also been taken of special payroll tax.

See Provisions for estimated future conditional pensions, and the Final Responsibility Provision, Note 23, Pensions, page 119 for further information.

Other provisions

Provisions for job-related injuries refer to the payment of annuities in accordance with the Industrial Injuries Insurance Act, and to occupational injury annuities.

The pension settlement in relation to the Danish state refers to future commitments regarding a specific group of employees within the Post Danmark group.

Provisions for commemorative awards refer to anticipated commemorative awards in the form of extra salary and vacation received after 25 or 40 years of employment within the Post Danmark group.

Present value

Provisions with payment periods longer than one year are discounted to the present value. Discount effects included in changes for the year are shown separately where significant. Provisions for future conditional pension benefits have payment periods longer than one year. Present value calculations are not shown separately for this provision item, as it is included under IAS 19. See also Note 23, Pensions, page 119.

Expected payments for provisions

Stated amounts correspond to the estimated result that forms the basis for calculating the size of the provision but cannot be deemed to reflect real, total payment flows, as certain costs do not correspond to any payments. Such costs include some costs related to personnel cutbacks.