Notes to the consolidated
financial statements
24. Provisions
| Asset retirement obligations £m | Other provisions £m | Total £m |
|
|---|---|---|---|
| 1 April 2008 | 208 | 454 | 662 |
| Exchange movements | 34 | 75 | 109 |
| Amounts capitalised in the year | 111 | – | 111 |
| Amounts charged to the income statement | – | 194 | 194 |
| Utilised in the year − payments | (4) | (106) | (110) |
| Amounts released to the income statement | – | (72) | (72) |
| Other | 12 | – | 12 |
| 31 March 2009 | 361 | 545 | 906 |
| Exchange movements | (7) | (6) | (13) |
| Arising on acquisition | – | 20 | 20 |
| Amounts capitalised in the year | 40 | – | 40 |
| Amounts charged to the income statement | – | 259 | 259 |
| Utilised in the year − payments | (3) | (157) | (160) |
| Amounts released to the income statement | – | (37) | (37) |
| Other | (21) | – | (21) |
| 31 March 2010 | 370 | 624 | 994 |
Provisions have been analysed between current and non-current as follows:
| 2010 £m | 2009 £m |
|
|---|---|---|
| Current liabilities | 497 | 373 |
| Non-current liabilities | 497 | 533 |
| 994 | 906 |
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.
Other provisions
Included within other provisions are provisions for legal and regulatory disputes and amounts provided for property and restructuring costs. 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 29. 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.
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