21. Provisions
CHF million |
|
Legal claims / cases |
|
Business risks |
|
Asset retirement obligations1 |
|
Other1 |
|
Total |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Provisions as at January 1, 2020 |
|
19.5 |
|
0.2 |
|
8.2 |
|
31.4 |
|
59.3 |
||||
Reclassification |
|
– |
|
– |
|
– |
|
42.9 |
|
42.9 |
||||
Addition |
|
16.7 |
|
– |
|
1.2 |
|
12.3 |
|
30.2 |
||||
Acquisition of subsidiary (note 2) |
|
– |
|
– |
|
0.3 |
|
5.9 |
|
6.2 |
||||
Utilization |
|
– 2.5 |
|
– |
|
– 0.4 |
|
– 27.7 |
|
– 30.6 |
||||
Release |
|
– 2.9 |
|
– |
|
– |
|
– 3.2 |
|
– 6.1 |
||||
Currency translation |
|
– 1.1 |
|
– |
|
– 0.6 |
|
– 3.2 |
|
– 4.9 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Provisions as at December 31, 2020 |
|
29.7 |
|
0.2 |
|
8.7 |
|
58.4 |
|
97.0 |
||||
of which current |
|
9.0 |
|
– |
|
0.8 |
|
50.1 |
|
59.9 |
||||
of which non-current |
|
20.7 |
|
0.2 |
|
7.9 |
|
8.3 |
|
37.1 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Addition |
|
12.8 |
|
0.2 |
|
1.2 |
|
8.6 |
|
22.8 |
||||
Utilization |
|
– 7.6 |
|
– |
|
– 0.4 |
|
– 49.9 |
|
– 57.9 |
||||
Release |
|
– 8.3 |
|
– 0.1 |
|
– 0.3 |
|
– 0.6 |
|
– 9.3 |
||||
Currency translation |
|
0.1 |
|
– |
|
– 0.3 |
|
1.2 |
|
1.0 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Provisions as at December 31, 2021 |
|
26.7 |
|
0.3 |
|
8.9 |
|
17.7 |
|
53.6 |
||||
of which current |
|
4.5 |
|
– |
|
1.0 |
|
10.5 |
|
16.0 |
||||
of which non-current |
|
22.2 |
|
0.3 |
|
7.9 |
|
7.2 |
|
37.6 |
||||
|
||||||||||||||
Provisions for legal cases include unsettled claims, and legal proceedings as of December 31, 2021, which arise during the normal course of business. Provisions are recognized at balance sheet date when a present legal or constructive obligation as a result of past events exists and the expected outflow of resources can be reliably estimated. Especially for the non-current positions, the timing of outflows is uncertain as it depends upon the outcome of the proceedings. In 2021, the additions to provisions were mainly due to new legal proceedings.
The provisions for asset retirement obligations mainly relate to potential asset retirement obligations for leases.
The reclassification into other provisions in 2020 is related to settlement negotiations with the former multi-employer benefit plan in the USA, this amount has been reclassified from pension liabilities. Since an agreement has been achieved, the corresponding provisions (CHF 40.0 million) have been utilized in 2021.
The utilization of other provisions in prior year are predominantly related to one-off effects in the USA, for which corresponding provisions have been booked in 2019.
In Management’s opinion, after taking appropriate legal and administrative advice, the outcome of these business risks will not give rise to any significant losses beyond the amounts provided at December 31, 2021.