Savills plc 2012 Annual Report - (PDF) - Investor relations

24(a). Provisions for other liabilities and chargesProfessionalindemnityclaims£mDilapidationprovisions£mOnerousleases£mRestructuringprovision£mGroupTotal£mCompany£mAt 1 January 2012 15.7 2.4 1.7 0.8 20.6 1.3Provided during the year 9.4 0.4 2.5 0.2 12.5 –Utilised during the year (3.8) – (0.6) (0.6) (5.0) –Released during the year (2.3) – (0.2) – (2.5) –Total 19.0 2.8 3.4 0.4 25.6 1.3Less non-current portion 13.7 1.7 2.3 – 17.7 1.2Current portion 5.3 1.1 1.1 0.4 7.9 0.12011Professionalindemnityclaims £mDilapidationprovisions£mOnerousleases£mRestructuringprovision£mGroupTotal£mCompany£mCurrent 9.3 0.2 0.8 0.8 11.1 0.1Non-current 6.4 2.2 0.9 – 9.5 1.2Total 15.7 2.4 1.7 0.8 20.6 1.3Our business Our governance Our resultsProfessional indemnity claimsThese arise from various legal actions, proceedings and other claims that are pending against the Group. The outcomes of these claimsare not predictable with any assurance and the amounts are based on reasonable estimates, taking into account the opinions of legalcounsel. The non-current portion of these provisions is expected to be utilised within the next two to five years. Included are provisionsfor claims relating to subsidiaries prior to their disposal.Dilapidation provisionsThe Group is required to perform dilapidation repairs on leased properties prior to the properties being vacated at the end of their leaseterm. These amounts are based on estimates of repair costs at a future date and are subject to price fluctuations in these costs and theextent of repairs to be completed. The majority of the non-current portion of these provisions is expected to be utilised within the nexttwo to six years.Onerous leasesA provision is recognised where the costs of meeting the obligations under a lease contract exceed the economic benefits expected tobe received and is measured as the net least cost of exiting the contract, being the lower of the cost of fulfilling it and any compensationor penalties arising from the failure to fulfil it. The majority of the non-current portion of these provisions is expected to be utilised withinthe next two to four years.Restructuring provisionThis provision comprises termination payments to employees affected by restructuring and lease termination penalties.24(b). Employee benefit obligationsIn addition to the defined benefit obligation pension scheme disclosed in Note 9, the following are included in employee benefit obligations:GroupAt 1 January 2012 14.2Provided during the year 6.5Utilised during the year (6.7)Exchange movements (0.4)At 31 December 2012 13.6The above provisions relate to holiday pay and long service leave in Asia Pacific and Europe and are expected to crystallise within five toseven years of the reporting date. Profit shares are included within accruals (Note 20).The Company had no employee benefit obligations at 31 December 2012 or 31 December 2011.The above employee benefit obligations have been analysed between current and non-current as follows:Total£mSavills plc Report and Accounts 2012 103