Uster Technologies Ltd | Annual Report 2009 Uster Technologies ...

Restructuring ProvisionsThe Company announced on November 3, 2008, world wide operational measures to adjust the cost base,proactively addressing the current market situation. Based on the original calculations total costs of theseoperational measures were expected to amount to CHF 2.8 million, of which CHF 0.3 million have been paidin 2008. The restructuring took place as planned. The remaining provision mainly covers costs for layoffswhich were already initially agreed on to be at the end of 2009 and in 2010, and legal costs to defend actionstaken against the Uster Group.Warranty ProvisionsThe Uster Group generally grants a 12-month warranty period for its products. During this period productswill be repaired or replaced free of charge. The provision is on the one hand based on gross sales and pastexperience with warranty claims. On the other hand it also considers the Group’s repairs and replacementsmade on a voluntary basis towards significant clients. It is expected that the warranty costs provided for willbe incurred within the next three years.Other ProvisionsOther provisions included a provision for tax exposures that have been resolved in 2009.Additionally other provisions include a provision with respect to an agent contract. In 2006 the Groupcancelled a contract with one of its agents and paid the open commissions due. The agent, however, refusedto sign a confirmation that all the outstanding balances are settled. Therefore the estimated possible risksfor additional claims from the agent have been provided for.24 Trade and Other Liabilitiesin CHF 1,000 Dec 31, 2009 Dec 31, 2008Accounts payable trade 1,793 3,647Advance payments from customers 1,376 1,647Other financial liabilities 1,265 1,983Total 4,434 7,277Accounts payable trade and other liabilities are non-interest-bearing and are generally on 30 to 60 days’terms. Other liabilities include mostly payables to third parties that are not related to trade activities suchas payables for marketing, consulting activities or IT costs as well as social cost payments.94 Uster Group – Notes to the Consolidated Financial Statements 2009