Annual Report and Accounts 2006
|
Notes to the Financial Statements
23. Provisions
| Restructuring provisions £m |
Acquisition provisions £m |
Contractual, legal and other £m |
Total £m |
|
|---|---|---|---|---|
| At 29 December 2003 | 93 | 21 | 17 | 131 |
| Exchange rate adjustments | (2) | – | – | (2) |
| Recognised in the income statement | 166 | – | (10) | 156 |
| Reserves movement | – | – | (3) | (3) |
| Utilised in the year – cash | (162) | (3) | – | (165) |
| Utilised in the year – non-cash | (37) | – | – | (37) |
| Disposals | – | (3) | – | (3) |
| At 2 January 2005 | 58 | 15 | 4 | 77 |
| Exchange rate adjustments | – | 1 | – | 1 |
| Recognised in the income statement | 86 | (4) | 5 | 87 |
| Utilised in the year – cash | (103) | (3) | 1 | (105) |
| Transfer to discontinued operations | (7) | – | – | (7) |
| At 1 January 2006 | 34 | 9 | 10 | 53 |
| Exchange rate adjustments | (2) | (1) | – | (3) |
| Recognised in the income statement | 133 | – | (2) | 131 |
| Utilised in the year – cash | (83) | (3) | (6) | (92) |
| Utilised in the year – non-cash | (16) | – | – | (16) |
| At 31 December 2006 | 66 | 5 | 2 | 73 |
| 2006 £m |
2005 £m |
2004 £m |
|
|---|---|---|---|
| Amount due for settlement within 12 months | 55 | 42 | 67 |
| Amount due for settlement after 12 months | 18 | 11 | 10 |
| 73 | 53 | 77 |
The charge to the income statement for restructuring is explained in Note 4. The majority of the restructuring provision relates to redundancy costs expected to be incurred in the following year. Acquisition provisions relate to provisions set up at the time of prior year acquisitions.
Contractual, legal and other provisions relate to the Group's ongoing obligations relating to the disposal of subsidiaries, investments and brands. The timing of utilisation of these provisions is uncertain, but such amounts in 2007 are not expected to be significant.