Annual Report 2022

20. Provisions

CHF million

 

Legal claims/
cases

 

Business risks

 

Asset retirement obligations

 

Other

 

Total

Provisions as at January 1, 2021

 

29.7

 

0.2

 

8.7

 

58.4

 

97.0

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

 

 

 

 

 

 

 

 

 

 

 

Addition

 

14.4

 

2.9

 

0.6

 

9.4

 

27.3

Utilization

 

– 3.6

 

 

– 0.3

 

– 10.1

 

– 14.0

Release

 

– 4.2

 

– 0.3

 

– 0.2

 

– 4.2

 

– 8.9

Currency translation

 

– 0.3

 

– 0.1

 

– 0.6

 

– 0.2

 

– 1.2

 

 

 

 

 

 

 

 

 

 

 

Provisions as at December 31, 2022

 

33.0

 

2.8

 

8.4

 

12.6

 

56.8

of which current

 

8.4

 

 

0.8

 

6.2

 

15.4

of which non-current

 

24.6

 

2.8

 

7.6

 

6.4

 

41.4

Provisions for legal cases include unsettled claims, and legal proceedings as of December 31, 2022, 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. As in prior years, the additions to provisions were mainly due to new legal proceedings. 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 as of December 31, 2022.

The provisions for asset retirement obligations mainly relate to potential asset retirement obligations for leases.

The utilization of provisions of CHF 40.0 million in 2021 is related to settlement negotiations with the former multi-employer benefit plan in the USA. Since an agreement has been achieved, the corresponding provisions have been utilized in 2021.