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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.