Lenovo 2013 Annual Report Download - page 31

2012/13 Annual Report Lenovo Group Limited 29
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Deferred income tax liabilities
Deferred income tax liabilities comprise withholding tax on undistributed earnings and tax liabilities on upward valuation of
intangibles arising from business combination. The 36 percent increase over last year is attributable to the amounts arising
from the formation of EMC JV and acquisition of CCE and Stoneware totalling US$28 million.
Other non-current liabilities
Other non-current liabilities amounted to US$847 million as at March 31, 2013, representing an increase of 32 percent,
which is mainly due to the written put option liability in connection with the put option granted pursuant to the joint venture
agreement entered into between the Group and Compal Electronics, Inc. of US$215 million. The remaining balances
comprise mainly the present value of the contingent consideration payable of US$260 million brought forward from the
previous year in connection with the arrangements with the former shareholder of NEC JV with reference to certain
performance indicators.
Current liabilities (US$’000)
March 31,
2013
March 31,
2012
Trade payables 3,624,500 4,050,272
Notes payable 99,503 127,315
Derivative financial liabilities 69,053 49,253
Other payables and accruals 6,852,344 6,349,134
Provisions 776,640 725,062
Deferred revenue 393,417 310,159
Income tax payable 100,179 135,530
Bank borrowings 175,838 62,952
12,091,474 11,809,677
Trade payables and notes payables
Trade payables and notes payables decreased by 11 percent when compared with last year. The decrease in balance is
mainly due to less purchase activities during the fourth quarter, which is in line with the business projections.
Other payables and accruals
Majority of other payables and accruals represent the allowance for billing adjustments relates primarily to allowances for
future volume discounts, price protection, rebates, and customer sales returns and obligations to pay for finished goods
that have been acquired in the ordinary course of business from subcontractors. Other payables and accruals increased by
8 percent when compared with last year. The increase is partly attributable to the increased business activities of the year.
The amounts arising from the acquisition of CCE also contributed to an increase of US$50 million.
Provisions
Provisions comprise warranty liabilities (due within one year), restructuring and environmental restorations. The increase is
partly attributable to the increased business activities of the year, and the amounts arising from the acquisition of CCE of
US$21 million.
Bank borrowings
Bank borrowings amounted to US$176 million as at March 31, 2013, representing an increase of 179 percent, mainly due
to the amounts arising from the acquisition of CCE of US$111 million.