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Richemont is one of the world's leading luxury - Alle jaarverslagen

Richemont is one of the world's leading luxury - Alle jaarverslagen

Richemont is one of the world's leading luxury - Alle jaarverslagen

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Notes to <strong>the</strong> consolidated financial statements continued21. Prov<strong>is</strong>ionsRestructuringWarranties and and property Employeesales related related benefits O<strong>the</strong>r Total€ m € m € m € m € mAt 1 April 2007 68 35 30 18 151Acquired through business combinations – – – 1 1Charged/(credited) to <strong>the</strong> income statement:– additional prov<strong>is</strong>ions 42 8 17 8 75– unused amounts reversed (5) (10) (4) (3) (22)Net charge/(credit) 37 (2) 13 5 53Util<strong>is</strong>ed during <strong>the</strong> year (33) (10) (5) (4) (52)Transfers – 5 – (5) –Exchange adjustments (1) (4) (1) – (6)At 31 March 2008 71 24 37 15 147Acquired through business combinations 13 5 – 3 21Charged/(credited) to <strong>the</strong> income statement:– additional prov<strong>is</strong>ions 52 19 1 5 77– unused amounts reversed (10) (1) (6) (1) (18)Net charge/(credit) 42 18 (5) 4 59Util<strong>is</strong>ed during <strong>the</strong> year (55) (8) (6) (6) (75)Transfers – (2) – – (2)Exchange adjustments 3 3 – 1 7At 31 March 2009 74 40 26 17 1572009 2008€ m € mTotal prov<strong>is</strong>ions at 31 March:– non-current 40 52– current 117 95157 147Warranties and sales-related prov<strong>is</strong>ionsGroup companies establ<strong>is</strong>h prov<strong>is</strong>ions for potential sales returns and warranties provided on certain products. Based on past experiencea prov<strong>is</strong>ion <strong>of</strong> € 74 million (2008: € 71 million) has been recogn<strong>is</strong>ed for expected sales returns and warranty claims. It <strong>is</strong> expected that€ 67 million (2008: € 60 million) <strong>of</strong> th<strong>is</strong> prov<strong>is</strong>ion will be used within <strong>the</strong> following twelve months and that <strong>the</strong> remaining € 7 million(2008: € 11 million) which relates solely to potential warranty claims will be util<strong>is</strong>ed over <strong>the</strong> remainder <strong>of</strong> <strong>the</strong> expected warranty period<strong>of</strong> <strong>the</strong> products.Restructuring and property-related prov<strong>is</strong>ionsThese prov<strong>is</strong>ions represent <strong>the</strong> Group’s obligations ar<strong>is</strong>ing from committed restructuring activities and contractual obligations in respect<strong>of</strong> properties. It <strong>is</strong> anticipated that most <strong>of</strong> <strong>the</strong> restructuring prov<strong>is</strong>ion will be util<strong>is</strong>ed in <strong>the</strong> coming year. Certain property obligations willremain until 2014.Employee benefits prov<strong>is</strong>ionsThese include obligations ar<strong>is</strong>ing under <strong>the</strong> Group’s long-term incentive plan and <strong>the</strong> social costs on <strong>the</strong> Group’s share option plan.An amount <strong>of</strong> € 18 million <strong>is</strong> expected to reverse in <strong>the</strong> coming twelve months. The remainder will reverse in <strong>the</strong> next two to ten years.O<strong>the</strong>r prov<strong>is</strong>ionsThese prov<strong>is</strong>ions relate to legal and constructive obligations. It <strong>is</strong> not expected that <strong>the</strong> outcomes <strong>of</strong> legal claims will give r<strong>is</strong>e to anysignificant losses beyond <strong>the</strong> amounts provided at 31 March 2009.90 <strong>Richemont</strong> Annual Report and Accounts 2009Consolidated financial statements

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