: notes to the accounts :
22. Other provisions for liabilities and charges
| all figures in £ millions | |||
|
post-
retirement
|
other
|
total
|
|
| At 31 December 1998 |
100
|
153
|
253
|
| Exchange differences |
2
|
3
|
5
|
| Subsidiary undertakings acquired/disposed |
(12)
|
(3)
|
(15)
|
| Deferred consideration arising on acquisitions |
––
|
4
|
4
|
| Transfers |
––
|
1
|
1
|
| Released |
(1)
|
(9)
|
(10)
|
| Provided |
27
|
24
|
51
|
| Utilised |
(21)
|
(62)
|
(83)
|
|
|
|
||
| At 31 December 1999 |
95
|
111
|
206
|
|
|
|
||
Note : Post-retirement provisions, based on actuarial assumptions, are in respect of pensions, £35m and post-retirement medical benefits, £60m. Other provisions are mainly in respect of:
a. Deferred consideration relating to the purchase of subsidiary and associated undertakings, £29m (1998: £34m). During the year
£9m was utilised. Included within the year end balance is £10m which relates to the purchase of All American Communications in 1997, the utilisation of which is dependent upon the performance of certain television shows over the next year.
b. Litigation, £12m (1998: £12m). During the year £6m has been utilised, £4m released, £3m provided in respect of the Simon & Schuster acquisition, and £6m provided in respect of warranty and legal claims, the amount and timing of the settlement of which is unknown.
c. Reorganisations and redundancies, £27m (1998: £51m). During the year £3m has been released, £10m provided and £33m utilised mainly
in respect of the integration of Simon & Schuster following its acquisition in 1998. The balance is expected to be utilised in the year ended 31 December 2000 and is based on current reorganisation plans.
d. Lease commitments, £27m (1998: £35m). These relate primarily to onerous lease contracts, acquired as part of the purchase of subsidiary undertakings, which have expiry dates up to 2010. The provision is based on current occupancy estimates and it has been assumed that the properties will not be sub-let. During the year £3m has been utilised, £4m charged and £2m removed through disposals.
e. Disposals and closures, £3m (1998: £6m). During the year £2m has been utilised in respect of a number of closures which are anticipated to be completed during the year ended 31 December 2000.
f. Other, £13m (1998: £15m). During the year the balance was reduced by £6m in respect of the Simon & Schuster acquisition and £4m
provided. The balance, which relates to a number of small items, is expected to be utilised over varying time periods.
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