Notes to the consolidated financial statements

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Insurance funds
£m

Restructuring and closure provisions
£m

Other provisions
£m

Total
£m

At 1 April 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

Charged to the income statement

5

28

16

49

Credited to the income statement

(2)

(20)

(1)

(23)

Utilised in the year

(2)

(13)

(7)

(22)

Exchange and other movements

(2)

(2)

At 31 March 2011

13

35

17

65

 

 

 

 

 

 

 

 

31 March

 

 

 

2011
£m

2010
£m

Provisions are expected to be utilised as follows:

 

 

 

 

– within one year

 

 

44

26

– after more than one year

 

 

21

37

Total

 

 

65

63

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 restructuring and closure provisions charged during the year primarily relate to the implementation of a common global IS/IT platform and additional closure and other restructuring costs relating to the Food Systems business, within the Speciality Food Ingredients segment. The amount utilised during the year primarily relates to the decision to mothball the sucralose manufacturing facility in McIntosh, Alabama. In addition, during the year the Group charged to the income statement an exceptional provision of £25 million in respect of onerous contracts relating to the future obligations of the plant at Fort Dodge, Iowa. As a result of the disposal in March 2011, £20 million of the resultant provision was no longer required and was reversed. These provisions are expected to be utilised within two years.

Other provisions primarily relate to Group legal matters and costs associated with the disposal of the Sugars segment. These provisions are expected to be utilised within 5 years.

The charge to the income statement in relation to the unwinding of discounts was £2 million (2010 – £nil).