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Annual Report 2011
104
Notes to the consolidated financial statements (continued)
FINANCIAL STATEMENTS Aer Lingus Group Plc
27 Provisions for liabilities and charges
B
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As restated
At 1 January 2010 95,304 36,063 21,867 153,234
Provided during the period 29,500 13,120 - 42,620
Written back during the period (7,669) (4,060) (2,941) (14,670)
Utilised during the period (41,486) (5,569) (1,794) (48,849)
At 31 December 2010 75,649 39,554 17,132 132,335
At 1 January 2011 75,649 39,554 17,132 132,335
Provided during the period 2,395 15,315 3,791 21,501
Written back during the period (7,153) (690) (4,467) (12,310)
Utilised during the period (40,988) (16,188) (2,846) (60,022)
At 31 December 2011 29,903 37,991 13,610 81,504
A
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31 December 2011 9
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31 December 2010 47,162 21,536 2,622 71,320
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31 December 2011 1
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31 December 2010 28,487 18,018 14,510 61,015
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31 December 2011 2
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31 December 2010 75,649 39,554 17,132 132,335
(1) Business repositioning
A provision for business repositioning costs is recognised when a constructive obligation exists. The amount of the provision is based
on the terms of business repositioning measures, including employee severance which have been communicated to employees. They
represent the directors’ best estimate of the cost of these measures, having regard to the current status of negotiations. At
31/12/2011, the majority of the provision relates to the Greenfield cost reduction programme. Measurement uncertainty associated
with business repositioning provisions arise from the achievement of certain operating and financial targets and changes in human
resources requirements. The provision related to the Greenfield cost reduction programme is expected to be materially utilised in
the next two financial years, with the remaining provision expected to be largely utilised in the next five years.
(2) Aircraft maintenance
A provision is made on a monthly basis for maintenance of aircraft held under operating leases. The provision will be utilised as the
major airframe and engine overhauls take place. Aircraft maintenance also includes provision for the costs to meet the contractual
return conditions on these aircraft. Measurement uncertainty associated with maintenance provisions arise from the timing and
nature of overhaul activity required and sensitivity in projected flight hours. The provision is expected to be materially utilised over
the next twelve financial years.