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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.