Lenovo 2016 Annual Report Download - page 221

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2015/16 Annual Report Lenovo Group Limited
26 PROVISIONS, OTHER PAYABLES AND ACCRUALS
(a) Details of other payables and accruals are as follows:
2016
US$’000
2015
US$’000
Accruals 2,048,551 2,264,839
Allowance for billing adjustments (i) 1,904,076 2,223,861
Other payables (ii) 4,353,217 4,789,352
8,305,844 9,278,052
Notes:
(i) Allowance for billing adjustments relates primarily to allowances for future volume discounts, price protection, rebates,
and customer sales returns.
(ii) Majority of other payables are obligations to pay for finished goods that have been acquired in the ordinary course of
business from subcontractors.
(iii) The carrying amounts of other payables and accruals approximate their fair values.
(b) The components of provisions of the Group are as follows:
Warranty
Environmental
restoration Restructuring Total
US$’000 US$’000 US$’000 US$’000
Year ended March 31, 2016
At the beginning of the year 1,559,795 16,475 –1,576,270
Exchange adjustment (19,051)382 1,501 (17,168)
Provisions made 945,709 9,104 342,103 1,296,916
Amounts utilized (1,164,186) (8,477) (220,501) (1,393,164)
Unused amounts reversed – (8,667) – (8,667)
1,322,267 8,817 123,103 1,454,187
Long-term portion classified as
non-current liabilities (290,857) (6,073) – (296,930)
At the end of the year 1,031,410 2,744 123,103 1,157,257
Year ended March 31, 2015
At the beginning of the year 1,127,260 19,684 –1,146,944
Exchange adjustment (69,142) (2,919) – (72,061)
Provisions made 1,153,855 10,378 –1,164,233
Amounts utilized (1,049,291) (6,919) – (1,056,210)
Unused amounts reversed (19,391) (3,749) – (23,140)
Acquisition of businesses 416,504 – – 416,504
1,559,795 16,475 –1,576,270
Long-term portion classified as
non-current liabilities (338,700) (14,082) – (352,782)
At the end of the year 1,221,095 2,393 –1,223,488