Menu

3.23 Provisions

Provisions are included for personnel, restructuring, warranties, commissions, unfinished projects and for the loss-free valuation of orders.

Personnel provisions mainly comprise entitlements to long-service awards for employees. The prior year’s provisions for early retirement relating to the Security Printing Division were used in full.

In the remaining restructuring provisions, provisions for a tax charge were reversed in the Industrial Systems segment due to a building sale in the United States. Provisions were used for location optimisation within book retailing and the completion of restructuring in the Industrial Systems segment. This leaves mainly the provisions for the change of location of the Industrial Systems Division related to the restructuring.

Other provisions are largely related to the costs for the post-processing of a production order. This provision is offset by prepayments, which represent receivables from a sub-supplier. The resulting costs were recognised under cost of materials.

Warranty provisions are created in connection with the services rendered and they are based on local legislation or contractual agreements. The provisions are calculated on the basis of empirical figures.

Movement in provisions 2020

in CHF thousand                    
   
Personnel
  Provisions for
restructuring
  Warranty
provisions
  Other
provisions
 
Total
At 1 January   1,502   2,815   90   334   4,741
Additions (charged to income statement)   135   90   71   7,449   7,745
Reversals (charged to income statement)   –15   –563   –48     –626
Utilisation during the year   –1,170   –1,004   –41   –483   –2,698
Exchange differences     –45       –45
At 31 December   452   1,293   72   7,300   9,117
 
Provisions maturing within 12 months   166   211   72   7,300   7,749
Provisions maturing over 1 year   286   1,082       1,368

Movement in provisions 2019

in CHF thousand                    
   
Personnel
  Provisions for
restructuring
  Warranty
provisions
  Other
provisions
 
Total
At 1 January   470   6,086   80   373   7,009
Additions (charged to income statement)   1,135   908   92   334   2,469
Reversals (charged to income statement)     –2,977   –34   –329   –3,340
Utilisation during the year   –103   –1,132   –45   –44   –1,324
Exchange differences     –70   –3     –73
At 31 December   1,502   2,815   90   334   4,741
 
Provisions maturing within 12 months   1,206   1,444   90   334   3,074
Provisions maturing over 1 year   296   1,371       1,667