Getinge 2022 Annual Report
Getinge 2022 Annual Report
NOTE 22
Other provisions
Introduction
Strategy
Corporate Governance
Annual Report
Sustainability Report
Other information
Contents
SEK M
Opening balance 2021
Acquisitions
Provisions
Used amount
Unutilized funds restored
Reclassification
Translation differences
Closing balance 2021
Of which:
Short-term
Long-term
Guarantee
reserve
Personnel
Other
Total
253
140
1,488
1,881
364
364
145
63
740
948
-91
-56
-238
-384
-30
-10
-41
88
10
13
-27
61
375
151
2,487
169
183
3,012
2,331
681
Guarantee
SEK M
Opening balance 2022
Acquisitions
reserve
Personnel
Other
375
151
2,487
Total
3,012
100
100
Provisions
89
80
217
386
Used amount
-62
-59
-161
-283
Unutilized funds restored
-33
-5
-11
-49
Reclassification
1
6
3
10
Translation differences
26
12
373
Closing balance 2022
395
184
3,007
411
3,587
Of which:
Short-term
Long-term
Expected timing of outflow, SEK M
Within 1 year
Within 3 years
Within 5 years
> 5 years
Closing balance 2022
2,932
655
Total
2,932
616
15
25
3,587
Provisions under the item other primarily refer to claims related
to Atrium Medical Corporation's ("Atrium Medical") surgical mesh
products.
In the third quarter of 2018, Getinge made a provision of
SEK 1.8 billion, based on information available at that time, for
expected costs related to Atrium's surgical mesh product liability
claims filed in the US and Canada. The claims consisted of
individual lawsuits, consolidated state cases and consolidated
multi-district federal litigation ("MDL"). The provision intended to
cover all costs related to the claims, including defense and handling
of claims. The product liability claims concerns surgical mesh
implants of polypropylene mesh, that is an established standard
for hernia repair, the patients are claiming damages for complica-
tions allegedly sustained after receiving surgical mesh implants.
The claims are being contested by Getinge and there have, to date,
been no adverse verdicts against Atrium Medical.
At the start of December 2021, Getinge's subsidiary Atrium
Medical entered into a settlement agreement with the plaintiff's
lead counsel related to the MDL in the US. An additional provision
of SEK 600 M were made to account for the settlement in addition
to litigation expenses incurred to that date.
The settlement process and MDL between Atrium Medical
and the plaintiffs ended on January 30, 2023, with over 96 percent
of eligible plaintiffs having opted into the settlement. The over-
whelming majority of the settlement amount was paid as from
January 30, 2023. The settlement payments are covered by the
provisions, and therefore do not affect the reported result for
the period.
The settlement is not an admission of liability or wrong doing
on the part of the company. Getinge and Atrium Medical will
continue to defend themselves against any litigation not covered
by this final settlement. Costs for such litigations are not expected
to be material.
The legal proceedings against the insurance companies,
Moderna Försäkringar (Swedish branch of Tryg Forsikring A/S
Danmark) and If Skadeförsäkringar AB (publ), are expected to
continue in 2023. The litigations against the insurers have not
impacted the provision amount.
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