Financial statements - Mondi

Notes to the combined and
consolidated financial statements
continued
for the year ended 31 December 2010
22 Provisions (continued)
Restoration Acquired Long
and contingent Restructuring service
2009/E million environmental liabilities costs awards Other Total
At 1 January 12 1 14 14 23 64
Charged to combined and consolidated
income statement 1 9 – 17 – 12 38
Released to combined and consolidated
income statement (1) (1) (1) – – (3)
Amounts applied (2) – (16) (1) (7) (26)
Reclassification – – 8 1 – 9
Currency movements 1 – – – 2 3
At 31 December 19 – 22 14 30 85
Note:
1 Net of unwound discounts.
Maturity analysis of total provisions on a discounted basis:
E million 2010 2009
Current 64 40
Non-current 39 45
Total provisions 103 85
The restoration and environmental provision represents the best estimate of the expenditure required to settle the obligation to
rehabilitate environmental disturbances caused by production operations. A provision is recognised for the present value of such
costs. These costs are expected to be incurred over a period in excess of 20 years.
Included within other provisions are amounts relating to onerous contracts and employee benefits. Of these, E30 million
(2009: E18 million) are due to be incurred within the next 12 months. The residual E14 million (2009: E12 million) will be incurred
over a period longer than one year.
All non-current provisions are discounted using a discount rate relevant in the local countries, based on a pre tax real yield on
long-term bonds over the last five years.
23 Deferred tax
Deferred tax assets
E million 2010 2009
At 1 January 29 36
Charged to the combined and consolidated income statement (3) (10)
Charged to the combined and consolidated statement of comprehensive income (1) –
Disposal of businesses (see note 30) (4) –
Reclassification (1) 1
Currency movements 1 2
At 31 December 21 29
118 Annual report and accounts 2010