Experian 2008 Annual Report Download - page 108

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106 Experian Annual Report 2008
26. Provisions
Contingent
Restructuring and other
costs liabilities To t a l
US$m US$m US$m
At 1 April 2007 39 – 39
Differences on exchange 1 5 6
Amount charged in the year 45 1 46
Additions through business combinations (note 34) – 54 54
Utilised (35) – (35)
Impact of discount rate movement 1 – 1
At 31 March 2008 51 60 111
Disclosed within non-current liabilities 8 19 27
Disclosed within current liabilities 43 41 84
At 31 March 2008 51 60 111
Restructuring Home Retail Group
costs provisions To t a l
US$m US$m US$m
At 1 April 2006 – 155 155
Differences on exchange 2 12 14
Amount charged in the year 37 12 49
Utilised – (7) (7)
Impact of discount rate movement – 2 2
Demerger of Home Retail Group – (174) (174)
At 31 March 2007 39 – 39
Disclosed within non-current liabilities 30 – 30
Disclosed within current liabilities 9 – 9
At 31 March 2007 39 – 39
The restructuring provision at 31 March 2007 of US$9m disclosed within current liabilities included the full cost of the
restructuring of UK Marketing Services, which was utilised in full in the year ended 31 March 2008.
The restructuring provision at 31 March 2007 of US$30m disclosed within non-current liabilities comprised the anticipated
future costs of the withdrawal by Experian from large scale credit card and loan account processing in the UK, in respect of
which there was a charge of US$28m in the year then ended. This provision comprised the estimated costs of redundancy and
certain contractual obligations in respect of this business and was determined by reference to projections of the timing of
withdrawal. It was anticipated that this portion of the provision would be utilised in the period from 1 April 2008 to 31 March 2010.
As indicated in note 9, during the year ended 31 March 2008 the Group entered into an agreement to transfer certain of these
activities to a third party and this gave rise to an exceptional credit of US$2m. At 31 March 2008, the remaining provision in
respect of obligations for the Group relating to the withdrawal from this business was US$20m of which US$8m is disclosed
within non-current liabilities and US$12m is disclosed within current liabilities.
As indicated in note 9, there has been an exceptional charge in the year ended 31 March 2008 of US$60m in connection with a
programme of cost-efficiency measures. At the balance sheet date there is a related provision of US$31m which is disclosed
within current liabilities.
Contingent and other liabilities at 31 March 2008 comprise liabilities of Serasa, in connection with local legal and taxation
issues, which were primarily recognised on the acquisition of that company under the fair value accounting policy on
acquisition. Subsequent adjustments to the fair value are made as the exposures are concluded.
Fair values of provisions do not materially differ from the recognised book values.
Notes to the Group financial statements continued