Carphone Warehouse 2008 Annual Report Download - page 81

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www.cpwplc.com 69
22 Provisions
Insurance Reorganisation Sales Other Total
£m £m £m £m £m
At 1 April 2007 10.2 9.2 68.2 22.3 109.9
Acquisitions ––1.4 0.5 1.9
Charge to income statement 39.4 4.9 79.1 1.1 124.5
Released in the period – (0.2) – (1.5) (1.7)
Utilised in the period (41.6) (2.2) (93.6) (8.9) (146.3)
Foreign exchange ––1.8 0.6 2.4
At 29 March 2008 8.0 11.7 56.9 14.1 90.7
Insurance Reorganisation Sales Other Total
£m £m £m £m £m
At 2 April 2006 9.4 22.3 67.4 24.4 123.5
Acquisitions –––7.9 7.9
Charge to income statement 29.9 5.7 131.6 0.7 167.9
Released in the period – (5.7) ––(5.7)
Utilised in the period (29.1) (13.1) (130.6) (10.5) (183.3)
Foreign exchange ––(0.2) (0.2) (0.4)
At 31 March 2007 10.2 9.2 68.2 22.3 109.9
Provisions are categorised as follows:
Insurance:
Insurance provisions represent the anticipated costs of all policyholder claims notified but not settled and claims incurred but not reported at the balance
sheet date. Insurance provisions are expected to be utilised within one year.
Reorganisation:
Reorganisation provisions at the start of the period relate principally to a reorganisation programme initiated in the period ended 1 April 2006 to integrate
Onetel with the rest of the Group. The increase in the provision during the period ended 29 March 2008 relates to the disposal of the Group’s Swiss retail
business, which was announced on 20 March 2008. The provision is expected to be utilised over the next 12 months.
Sales:
Sales provisions relate to “cash-back” and similar promotions, product warranties, product returns, and network operator performance penalties.
Sales provisions are expected to be used within the following 12 to 24 months.
Other:
Other provisions relate to dilapidations and similar property costs, unresolved tax issues and legal disputes, and costs associated with onerous contracts.
23Share capital
2008 2007 2008 2007
million million £m £m
Authorised
Ordinary shares of 0.1p each 1,500 1,500 1.5 1.5
Allotted, called-up and fully paid
Ordinary shares of 0.1p each 914 896 0.9 0.9
Movements in share capital in the period arose from the issue of shares to the Group’s Employee Share Ownership Trust (see note 24) and the exercise
of share options.
Financial Statements