Merck 2008 Annual Report Download - page 119

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[30] Provisions
Provisions developed as follows:
€ million Restructuring Personnel Litigation Other Total
January 1, 2008 102.8 149.8 412.6 201.8 867.0
Exchange differences 0.1 2.9 5.8 1.6 10.4
Utilizations –45.4 –63.5 –36.8 –62.6 –208.3
Additions 43.7 56.4 44.5 54.6 199.2
Release –10.8 –4.8 –53.0 –9.3 –77.9
Changes in companies
consolidated/Other 0.1 3.5 –0.2 –3.3 0.1
December 31, 2008 90.5 144.3 372.9 182.8 790.5
thereof current 58.8 53.4 17.0 97.9 227.1
thereof non-current 31.7 90.9 355.9 84.9 563.4
Provisions for restructuring: This item mainly includes provisions for severance pay-
ments for employees in connection with restructuring projects, contractually agreed
severance obligations and contingent liabilities. The relevant provisions are recog-
nized in accordance with IAS 37 when detailed restructuring plans have been pre-
pared and communicated.
Provisions for personnel: Personnel provisions mainly include the expenses of obli-
gations for the partial early retirement program, other severance pay and anniversary
bonuses.
Provisions for litigation: Provisions for litigation risks in connection with our for-
mer U.S. generics subsidiary Dey Inc. concerning allegedly false reporting of price
information amounted to € 92.2 million on the balance sheet date. Although the com-
pany was divested within the scope of the sale of the Generics business to Mylan Inc.,
PA (USA), Merck continues to be liable for costs incurring from the aforementioned
legal disputes since the mentioned risk was not transferred to Mylan.
114 | Merck Annual Report 2008