2012 Integrated report - Sappi

US$ million 2012 2011
21. Other non-current liabilities
Defined benefit pension plan liabilities (refer to note 27) 344 311
Other defined benefit plan liabilities (refer to note 27) 185 175
Long-term employee benefits (refer to note 27) 3 4
Workmen’s compensation (refer to note 27) 14 11
Long service awards 23 22
Land restoration provision 20 21
Restructuring provisions (refer to note 22) 10 –
Deferred income 3 3
Other 3 6
605 553
US$ million 2012 2011
22. Provisions
Restructuring provisions 27 105
Long-term 10 –
Short-term 17 105
Other provisions – 2
Balance at September 27 107
Details of restructuring provisions are provided below:
Restructuring provisions
Severance,
retrenchment
and related costs
Lease
cancellation and
penalty costs
Other
closure costs
Balance at September 2010 9 2 18 29
Increase in provisions (1) 76 22 40 138
Utilised (17) – (37) (54)
Released during the year – – (1) (1)
Translation effect (5) (1) (1) (7)
Balance at September 2011 63 23 19 105
Increase in provisions 17 – – 17
Utilised (41) (16) (12) (69)
Released during the year (10) (5) (6) (21)
Other movements (2) (1) – (3)
Translation effect – (1) (1) (2)
Balance at September 2012 27 – – 27
(1) Pursuant to the group’s strategy review, the group implemented a number of initiatives during the year which resulted in significant restructuring charges being
recorded in fiscal 2011.
Total
September 2012 restructuring provisions
Sappi Fine Paper Europe
In June 2012, Sappi announced that, as a potential measure to further reduce fixed costs, it envisaged the transfer and outsourcing of
certain central functions from various European locations to Cracow, Poland. It was expected that approximately 60 positions would be
affected by March 2013 resulting in a restructuring charge of US$6 million being raised during the year. By year-end, five employees had
already been affected and the provision largely unutilised.
September 2011 restructuring provisions
Sappi Fine Paper Europe
Biberist Mill. In August 2011, Sappi ceased operations at Biberist Mill in Switzerland. A total of 550 employee positions were affected by
the closure and a restructuring charge related to severance, retrenchment and other related closure costs of US$70 million was raised
during the year. The legal entity, Sappi Schweiz AG, together with its associated assets and liabilities was sold during fiscal 2012. A
restructuring charge of US$7 million remained unutilised at the end of fiscal 2012 and is only expected to be utilised from fiscal 2014.
Sappi Fine Paper Europe: Central Services. As a result of the Biberist Mill closure, approximately 100 employees were expected to
be made redundant across Europe. By the end of fiscal 2012, 95 employees were made redundant and the restructuring charge of
US$6 million that was raised in the last quarter of fiscal 2011 had been utilised.
A fixed cost optimisation programme commenced in the last fiscal quarter of 2011 affecting approximately 330 positions across Europe.
Of this, 205 employees were affected by the end of fiscal 2012 with approximately 75 employees still expected to be affected. Of the
restructuring charge of US$14 million that was raised in fiscal 2011, approximately US$10 million was unutilised at the end of fiscal 2012
and is expected to be utilised by fiscal 2021. As a result, US$3 million has been reclassified as long-term.
sappi Integrated Report 2012 139