C22. Other provisions

Changes in other provisions were as follows.

SEK in millions

December 31, 2016

Put options and
contingent
consideration

Restructuring
provisions

Asset
retirement
obligations

Other
provisions

Total

Opening balance

850

672

2,896

805

5,222

of which financial liabilities at amortized cost

287

287

Provisions for the period

608

243

15,280

16,131

Operations divested

-881

-74

-339

-1,294

Utilized provisions

-889

-95

-78

-1,062

Reversals of provisions

-7

-1

-251

-259

Reclassifications

-7

-8

-15

Timing and interest-rate effects

7

1

8

Exchange rate differences

31

10

55

20

116

Reclassification to liabilities directly associated
with assets classified as held for sale

-1

-1

Closing balance

0

387

3,023

15,436

18,846

of which non-current portion

83

3,015

2,076

5,173

of which current portion

304

8

13,361

13,673

of which financial liabilities at amortized cost
(see Notes Categories – C25 and Credit risk – C26)

Other provisions include the provision for the settlement amount proposed by the US and Dutch authorities, see Note C34 for more information. For financial liabilities, the carrying value equals fair value as provisions are discounted to present value. Refer to Note C25 “Financial assets and liabilities by category and level” for more information on financial instruments classified by category.

Put options and contingent consideration

The closing balance as of December 31, 2015 in total SEK 850 million, was related to Yoigo in Spain, which was divested in the fourth quarter of 2016. See Note C34 for information on sale of Yoigo in Spain and on put options in discontinued operations.

Restructuring provisions

The restructuring provisions represent the present value of management’s best estimate of the amounts required to settle the liabilities. The estimates may vary as a result of changes in the actual number of months an employee is staying in redeployment before leaving and in the actual outcome of negotiations with lessors, sub-contractors and other external counterparts as well as the timing of such changes. The restructuring provisions are mainly related to workforce reduction as a result of ongoing optimization of the business in the Nordics and Group functions.

Asset retirement obligations and other provisions

Asset retirement obligations mainly refer to handling hazardous waste such as worn-out telephone poles impregnated with creosote or arsenic and to dismantling and restoration of mobile and fixed network sites. Remaining provisions as of December 31, 2016, are expected to be fully utilized in the period 2017–2045, depending on factors such as any contractual renewal options for site leases and dismantling plans decided by management.

Other provisions include provisions for damages and court cases, including the provision for the settlement amount proposed by the US and Dutch authorities. Other provisions also include provisions for future onerous and other loss-making contracts, insurance provisions, payroll taxes on future pension payments, estimated expenses related to fulfilling representations made and warranties, i e transaction warranties, and for potential litigation etc. in connection with disposals and winding-up of group entities, associated companies and other equity holdings as well as provision for buy back commitments for sold equipment in certain markets. Full utilization of these provisions is expected in the period 2017–2028.

The provisions represent the present value of management’s best estimate of the amounts required to settle the liabilities.