XML 111 R28.htm IDEA: XBRL DOCUMENT
v3.20.4

Provisions and other current liabilities | 12 Months Ended
--- | ---
Dec. 31, 2020
Disclosure of provisions and other current liabilities [abstract] |
Provisions and other current liabilities | 22. Provisions and other current liabilities
(USD millions) |  | 2020 |  | 2019 |
Taxes other than income taxes |  | 749 |  | 471 |
Restructuring provisions |  | 459 |  | 438 |
Accrued expenses for goods and services received but not invoiced |  | 1 167 |  | 1 046 |
Accruals for royalties |  | 732 |  | 653 |
Accrued interests on financial debt |  | 133 |  | 98 |
Provisions for deductions from revenue |  | 6 256 |  | 5 595 |
Accruals for compensation and benefits, including social security |  | 2 286 |  | 2 464 |
Environmental remediation liabilities |  | 167 |  | 122 |
Deferred income |  | 56 |  | 114 |
Provisions for product liabilities, governmental investigations and other legal matters 1 |  | 306 |  | 1 169 |
Accrued share-based payments |  | 269 |  | 326 |
Contingent considerations 2 |  | 62 |  | 78 |
Commitment for repurchase of own shares 3 |  | 1 769 |  |  |
Other payables |  | 716 |  | 764 |
Total provisions and other current liabilities |  | 15 127 |  | 13 338 |
1 Note 20 provides additional disclosures related to legal provisions.
2 Note 29 provides additional disclosures related to contingent considerations.
3 Note 18 provides additional disclosures related to commitment for repurchase of own shares.
Provisions are based upon management’s best estimate and adjusted for actual experience. Such adjustments to historic estimates have not been material. Provisions for deductions from revenue The following table shows the movement of the provisions for deductions from revenue:
|  |  |  |  |  |  |  |  |  | Income statement charge2 |  |  |  |  |
(USD millions) |  | Revenue deductions provisions at January 1 |  | Revenue deductions provisions related to discontinued operations1 |  | Effect of currency translation and business combinations |  | Payments/ utilizations |  | Adjustments of prior years |  | Current year |  | Change in provisions offset against gross trade receivables |  | Revenue deductions provisions at December 31 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US-specific healthcare plans and program rebates |  | 1 981 |  |  |  |  |  | – 5 560 |  | – 107 |  | 5 739 |  |  |  | 2 053 |
Non-US-specific healthcare plans and program rebates |  | 1 769 |  |  |  | 167 |  | – 2 597 |  | 7 |  | 2 940 |  | – 14 |  | 2 272 |
Non-healthcare plans and program-related rebates, returns and other deductions |  | 1 845 |  |  |  | 67 |  | – 11 137 |  | – 51 |  | 11 094 |  | 113 |  | 1 931 |
Total 2020 |  | 5 595 |  |  |  | 234 |  | – 19 294 |  | – 151 |  | 19 773 |  | 99 |  | 6 256 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US-specific healthcare plans and program rebates |  | 1 883 |  | 0 |  |  |  | – 5 183 |  | – 193 |  | 5 474 |  |  |  | 1 981 |
Non-US-specific healthcare plans and program rebates |  | 1 625 |  | – 28 |  | – 19 |  | – 2 467 |  | – 2 |  | 2 659 |  | 1 |  | 1 769 |
Non-healthcare plans and program-related rebates, returns and other deductions |  | 1 754 |  | – 166 |  | 9 |  | – 11 698 |  | – 25 |  | 11 868 |  | 103 |  | 1 845 |
Total 2019 |  | 5 262 |  | – 194 |  | – 10 |  | – 19 348 |  | – 220 |  | 20 001 |  | 104 |  | 5 595 |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US-specific healthcare plans and program rebates |  | 1 590 |  |  |  |  |  | – 4 158 |  | – 90 |  | 4 541 |  |  |  | 1 883 |
Non-US-specific healthcare plans and program rebates |  | 1 356 |  |  |  | – 78 |  | – 2 182 |  | 83 |  | 2 555 |  | – 109 |  | 1 625 |
Non-healthcare plans and program-related rebates, returns and other deductions |  | 1 726 |  |  |  | – 51 |  | – 12 227 |  | – 91 |  | 11 956 |  | 441 |  | 1 754 |
Total 2018 |  | 4 672 |  |  |  | – 129 |  | – 18 567 |  | – 98 |  | 19 052 |  | 332 |  | 5 262 |
1 Notes 1, 2 and 30 provide information related to discontinued operations.
2 Charges to the consolidated income statement from continuing operations were USD 18 248 million in 2018.
Restructuring provisions movements
(USD millions) |  | 2020 |  | 2019 |  | 2018 |
January 1 |  | 438 |  | 507 |  | 153 |
Provisions related to discontinued operations 1 |  |  |  | – 8 |  |  |
Additions 2 |  | 354 |  | 492 |  | 534 |
Cash payments |  | – 268 |  | – 479 |  | – 145 |
Releases 3 |  | – 87 |  | – 72 |  | – 33 |
Currency translation effects |  | 22 |  | – 2 |  | – 2 |
December 31 |  | 459 |  | 438 |  | 507 |
1 Notes 1, 2 and 30 provide information related to discontinued operations.
2 Additions to provisions charged to the consolidated income statement from continuing operations were USD 521 million in 2018.
3 Reversal of provisions credited to the consolidated income statement from continuing operations were USD 31 million in 2018.
In 2020, additions to provisions of USD 354 million were mainly related to the following reorganizations: • The Innovative Medicines Division restructured its field force and supporting functions in Region Europe. • The Sandoz Division initiatives to realign its organizational structures to improve competiveness that commenced in 2019 continued. • Group-wide initiatives to streamline Novartis Technical Operations through the setup of operations centers and implementation of new technologies, in the Innovative Medicines Division and the Sandoz Division, continued. In addition, Novartis Business Services continued the phased implementation of the new operating model to change outsourcing structures and transition activities to service centers. In 2019, additions to provisions of USD 492 million were mainly related to the following reorganizations: • The Innovative Medicines Division restructured its field force and supporting functions in Latin America, and following the Xiidra acquisition, its Ophthalmology field force in the US. • The Sandoz Division initiatives to realign its organizational structures to improve competiveness. These initiatives include reduction in its headquarters, global functions and countries workforce, and the closure of its development center in Holzkirchen, Germany. • Group-wide initiatives to streamline Novartis Technical Operations and implement new technologies, mainly in the Innovative Medicines Division and in the Sandoz Division, continued. In addition, Novartis Business Services launched the next phase of the new operating model to change outsourcing structures and transition activities to service centers. In 2018, additions to provisions of USD 534 million were mainly related to the following reorganizations: • The Innovative Medicines Division’s Oncology business unit initiative to streamline its organizational structure. The objective was to enhance agility and efficiency, resulting in an acceleration of operational execution. In addition, a program to reorganize the Japanese business model was launched. Region Europe transformed its approach to market in light of the changing product portfolio. The objective was to speed up patient access. • Group-wide initiatives to streamline Novartis Technical Operations and implement new technologies, mainly in the Innovative Medicines Division and in the Sandoz Division, continued. In addition, Novartis Business Services launched an initiative to reorganize its organizational structure to achieve cost efficiencies by shifting activities to global service centers.

X
- References No definition available. + Details
Name: | nvs_DisclosureOfProvisionsAndOtherCurrentLiabilitiesAbstract
Namespace Prefix: | nvs_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | nvs_DisclosureOfProvisionsAndOtherCurrentLiabilitiesExplanatoryTextBlock
Namespace Prefix: | nvs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration