Notes to the consolidated financial statements

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Insurance funds
£m

Deferred consideration
£m

Restructuring and closure provisions
£m

Other provisions
£m

Total
£m

At 1 April 2008

10

10

32

16

68

Charged/(credited) to the income statement

4

(2)

(1)

1

Utilised in the year

(4)

(8)

(27)

(5)

(44)

Exchange and other movements

2

2

3

7

At 31 March 2009

12

7

13

32

Charged to the income statement

3

56

59

Utilised in the year

(2)

(21)

(1)

(24)

Exchange and other movements

(1)

(3)

(4)

At 31 March 2010

12

42

9

63

 

 

 

 

 

 

 

 

 

 

31 March

 

 

 

 

2010
£m

2009
£m

Provisions are expected to be utilised as follows:

 

 

 

 

 

Within one year

 

 

 

26

11

After more than one year

 

 

 

37

21

Total

 

 

 

63

32

Insurance funds represent amounts provided by the Group’s captive insurance subsidiary in respect of the expected level of insurance claims. These provisions are expected to be utilised within five years.

The deferred consideration provision related to the deferred payments arising until the year ended 31 March 2009 from the sucralose realignment in 2004. Payments were made to McNeil based on the achievement of certain minimum targets in respect of sales of sucralose made by the Group. The Group continues to receive amounts from McNeil based on sales of sucralose tabletop products made by McNeil for ten years from the date of the realignment. These receipts were shown up to 31 March 2006 as a deduction from goodwill. Since the elimination of goodwill the receipts are recognised in the income statement and only in the periods in which they are earned. There were no receipts recognised in the income statement during the year (2009 – £9 million).

Restructuring and closure provisions primarily relate to businesses and plants which have been closed and to a reorganisation as a result of the disposal of the five starch plants in Europe. It is expected that the provisions will be fully utilised within the next three years. The amount charged to the income statement includes £55 million in relation to the decision to mothball the sucralose manufacturing facility in McIntosh, Alabama.

There was no charge to the income statement in relation to the unwinding of discounts (2009 – £1 million).