Annual Report 2010 - SBM Offshore

Financial Review / Financial Statements 2010
22. Provisions
in thousands of US$ Note 2010 2009
Reorganisation 60 124
Employee benefits 4 8,865 10,489
Demobilisation 34,263 33,311
Total 43,188 43,924
The movements in the provisions, other than those on
employee benefits described in the note 4 - Employee
benefits expense, are:
in thousands of US$ Reorganisation Demobilisation
Balance at 31 December 2008 150 26,536
Arising during the year - 7,000
Unwinding of interest - 1,148
Utilised (29) -
Released to profit - (1,373)
Currency differences 3 -
Balance at 31 December 2009 124 33,311
Arising during the year - -
Unwinding of interest - 1,181
Utilised (56) (243)
Released to profit - -
Currency differences (8) 14
Balance at 31 December 2010 60 34,263
Reorganisation provision
The provision for reorganisation costs was established
in 2003 in relation to the closure of van der Giessen-de
Noord N.V., for which the obligations were substantially
discharged in prior years.
Demobilisation
The provision for demobilisation relates to the costs
for demobilisation of the F(P)SO fleet at the end of the
respective lease periods. The obligations are valued
at net present value, and on a yearly basis interest
is added to this provision. The recognised interest is
included in financial expenses (note 5 - Net financing
costs). The net present value is calculated at the
162 SBM Offshore – Annual Report 2010
inception date of the lease, at a rate of 4.31% which is
unchanged compared with last year. Expected outflow
of amounts is within one year: US$ 4.6 million (2009:
US$ 2.4 million), between one and five years US$ 14.6
million (2009: US$ 18.0 million) and after five years US$
15.1 million (2009: US$ 12.7 million).
23. Deferred tax liability
For an explanation of the deferred tax liability reference
is made to note 13 - Deferred tax asset.