Notes to the Consolidated Financial Statements
Notes 26-30
- 26. Provisions
- 27. Trade and other payables
- 28. Acquisitions
- 29. Disposals and discontinued operations
- 30. Reconciliations of net cash flows from operating activities
26. Provisions
| Asset retirement obligations £m |
Legal £m |
Other provisions £m |
Total £m |
|
|---|---|---|---|---|
| 1 April 2006 | 148 | 99 | 157 | 404 |
| Exchange movements | (4) | (2) | (6) | (12) |
| Amounts capitalised in the year | 17 | – | – | 17 |
| Amounts charged to the income statement | – | 34 | 186 | 220 |
| Utilised in the year – payments | (2) | (11) | (45) | (58) |
| Amounts released to the income statement | – | (4) | (4) | (8) |
| 31 March 2007 | 159 | 116 | 288 | 563 |
| Exchange movements | 27 | 21 | 15 | 63 |
| Arising on acquisition | 11 | – | 2 | 13 |
| Amounts capitalised in the year | 27 | – | – | 27 |
| Amounts charged to the income statement | – | 57 | 167 | 224 |
| Utilised in the year – payments | (6) | (5) | (72) | (83) |
| Amounts released to the income statement | – | (11) | (106) | (117) |
| Other | (10) | – | (18) | (28) |
| 31 March 2008 | 208 | 178 | 276 | 662 |
Provisions have been analysed between current and non-current as follows:
| 2008 £m |
2007 £m |
|
|---|---|---|
| Current liabilities | 356 | 267 |
| Non-current liabilities | 306 | 296 |
| 662 | 563 |
Asset retirement obligations
In the course of the Group’s activities, a number of sites and other assets are utilised which are expected to have costs associated with exiting and ceasing their use. The associated cash outflows are generally expected to occur at the dates of exit of the assets to which they relate, which are long term in nature.
Legal
The Group is involved in a number of legal and other disputes, including notification of possible claims. The directors of the Company, after taking legal advice, have established provisions after taking into account the facts of each case. The timing of cash outflows associated with legal claims cannot be reasonably determined. For a discussion of certain legal issues potentially affecting the Group, refer to note 32 Contingent liabilities.
Other provisions
Included within other provisions are amounts provided for property and restructuring costs. The associated cash outflows for restructuring costs are substantially short term in nature. The timing of the cash flows associated with property is dependent upon the remaining term of the associated lease.