Page 63
21 Provisions
Long service leave Service guarantee costs Insurance Other Total
Consolidated £m £m £m £m £m
At 31 January 2009 65.9 45.3 17.4 35.9 164.5
Charged to income statement 18.8 18.1 5.3 30.1 72.3
Released to income statement – (1.0) – (4.9) (5.9)
Utilised (4.6) (14.2) (5.2) (22.1) (46.1)
At 30 January 2010 80.1 48.2 17.5 39.0 184.8
Of which:
Current 24.4 13.5 4.0 26.6 68.5
Non-current 55.7 34.7 13.5 12.4 116.3
The Partnership has a long service leave scheme, open to all employees, that provides up to six months’ paid leave after 25 years’ service. There is no proportional entitlement for shorter periods of service. The provision for the liabilities under the scheme is assessed on an actuarial basis, reflecting employees’ expected service profiles, and using economic assumptions consistent with those used for the group’s retirement benefit obligations (note 25), with the exception of the discount rate, where a rate appropriate to the shorter duration of the long leave liability is used, so as to accrue the cost over employees’ service periods.
Provisions for service guarantee costs reflect the group’s expected liability for future repair costs based on expected failure rates and unit repair costs for the classes of goods sold.
Provisions for insurance claims are in respect of the group’s employer’s, public and vehicle third party liability insurances and extended warranty products. Liabilities have been assessed on an actuarial basis.
Other provisions include reorganisation costs, accrued holiday pay, customer refunds and property related costs.
The exact timing of utilisation of these provisions will vary according to the individual circumstances. However, the group’s best estimate of utilisation is provided above, and in note 26.
22 Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 28% (2009: 28%).
The movement on the deferred tax account is shown below:
2010 2009
Consolidated £m £m
Opening (asset)/liability (21.7) 45.1
Charged to income statement 2.1 11.7
Credited to equity (22.3) (78.5)
Closing asset (41.9) (21.7)
The movements in deferred tax assets and liabilities during the period (prior to the offsetting of balances within the same jurisdiction, as permitted by IAS 12) are shown below.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84