Non-current provisions

Amounts in MNOK	Sale and leaseback
1 Jan. 2007	123
Provided	-
Discounting effect	5
Reversed	(10)
Provision used	(12)
31 Dec. 2007	106

Current provisions

Amounts in MNOK	Guarantee	Other	Total
1 Jan. 2007	248	40	288
Provided	146	27	173
Reversed	(12)	(2)	(14)
Provision used	(87)	(3)	(90)
31 Dec. 2007	295	62	357

Non-current provisions

In the period from 1999 to 2007, KONGSBERG sold properties in the Kongsberg Industrial Park. The properties have subsequently been leased back on long-term contracts that expire between 2014 and 2025. In connection with sale and leaseback, subleases were signed at lower rents than the sum of the rent, maintenance and renovation costs for the subleased buildings. In addition, the Group has undertaken operational and maintenance responsibility for subleased buildings. This net loss is considered a loss contract according to IAS 37 and the net current value of future losses is provided for in the accounts. A provision has also been set aside attached to the cessation of rent. The remaining need for provisions is considered each year. The discounting effect has been recognised as operating costs.

Provisions for guarantees

Provisions for guarantees refer to guarantee liabilities on completed deliveries. Unused provisions for guarantees are dissolved upon expiry of the guarantee period. Provisions for guarantees are estimated on the basis of a combination of historical figures, specific calculations and best estimate. Guarantee periods vary from 1 to 2 years for Kongsberg Maritime. For Kongsberg Defence & Aerospace, they normally extend from one to five years, but can last for 30 years under certain circumstances.

The increase in guarantees is distributed equally between the business areas. The increase within Kongsberg Maritime. has arisen as a result of general growth in deliveries. The increase within Kongsberg Defence & Aerospace has arisen as a result of strong growth in the number of remote weapons systems delivered.

Other provisions

Provisions are recognised when the Group has a commitment as a result of a past event, it is probable that there will be a financial settlement as a result of this commitment, and the size of that amount can be measured reliably. Provisions are made when there is disagreement with contracting parties, agents, or as an estimated settlement related to product liability.