Annual Report 2009 2 Financial review
 

Note 23 - Other provisions

  Group   Parent Company
   Provisions for restructuring  Warranty commitments Claims Other Total   Provisions for restructuring Warranty commitments Other Total
Opening balance,
January 1, 2008
821 1,682 795 1,818 5,116   54 112 43 209
Provisions made 1,167 1,021 385 591 3,164   3 170 52 225
Provisions used –303 –1,002 –176 –332 –1,813   –2 –132 –38 –172
Unused amounts reversed –103 –39 –52 –126 –320  
Exchange-rate differences 156 128 150 84 518  
Closing balance,
December 31, 2008
1,738 1,790 1,102 2,035 6,665   55 150 57 262
Of which current provisions 1,486 682 322 2,490   8 28 22 58
Of which non-current provisions 252 1,108 1,102 1,713 4,175   47 122 35 204
                     
Opening balance,
January 1, 2009
1,738 1,790 1,102 2,035 6,665   55 150 57 262
Provisions made 1,069 906 222 987 3,184   22 2 24
Provisions used –939 –869 –246 –198 –2,252   –28 –10 –18 –56
Unused amounts reversed –89 –32 –168 –289   –20 –20
Exchange-rate differences –95 1 –62 127 –29  
Closing balance,
December 31, 2009
1,684 1,796 1,016 2,783 7,279   29 140 41 210
Of which current provisions 819 676 335 1,830   23 20 4 47
Of which non-current provisions 865 1,120 1,016 2,448 5,449   6 120 37 163

Provisions for restructuring represent the expected costs to be incurred as a consequence of the Group’s decision to close some factories, rationalize production and reduce personnel, both for newly acquired and previously owned companies. The provisions for restructuring are only recognized when Electrolux has both a detailed formal plan for restructuring and has made an announcement of the plan to those affected by it at the balance-sheet date. The amounts are based on management’s best estimates and are adjusted when changes to these estimates are known. The larger part of the restructuring provisions as per December 31, 2009, will be used during 2010 and the first half of 2011. Provisions for warranty commitments are recognized as a consequence of the Group’s policy to cover the cost of repair of defective products. Warranty is normally granted for one to two years after the sale. Provisons for claims refer to the Group’s captive insurance companies. Other provisions include mainly provisions for indirect tax, environmental liabilities, asbestos claims or other liabilities, none of which is material to the Group.

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