SAPPI LIMITED

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2010
26. CONTINGENT LIABILITIES
2010 2009
(US$ million)
Guarantees and suretyships ............................. 48 44
Other contingent liabilities ............................... 8 8
Included under guarantees and suretyships are bills of exchange where Sappi has guaranteed third
party funding of payments to Sappi for certain German accounts receivables.
Other contingent liabilities mainly relate to taxation queries in respect of certain group companies.
The group is involved in various lawsuits and administrative proceedings. The relief sought in such
lawsuits and proceedings includes injunctions, damages and penalties. Although the final results in
these suits and proceedings cannot be predicted with certainty, it is the present opinion of management,
after consulting with legal counsel, that they are not expected to have a material effect on the group’s
consolidated financial position, results of operations or cash flows.
27. POST-EMPLOYMENT BENEFITS—PENSIONS AND OTHER BENEFITS
Summary of results
Defined Other
Defined benefit defined
All contribution pension benefit
plans plans plans plans
2011 2010 2009 2010 2009 2010 2009
(US$ million)
Post retirement plan cost recognised in income
statements ............................. 42 33 15 21 14 10
Employer contributions paid over the fiscal year ....
Expected employer contributions to be paid over
next fiscal year
40 33 66 54 11 10
—Defined contribution plans .................. 42
—Defined benefit pension plans ............... 54
—Other defined benefit plans .................
Pension/benefit plan liability is presented on the
balance sheets as follows:
12
Pension/benefit liability (refer note 21) ........... 298 308 178 172
Pension asset (refer note 14) ..................
Accrued contributions*/obligations (included in other
(37) (52) — —
payables) .............................. 4 2 — — 7 7
Net balance sheet liability .................... 4 2 261 256 185 179
* Amounts to defined contribution plans due in respect of the current reporting period that had not yet been paid over to the
plans
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