Annual Report 2006 ISS Global A/S

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 January – 31 December. Amounts in DKK millions
27. Other provisions
2006
Transfers, net
Provisions made during the year (included in the
income statement)
Provisions not used (reversed against the income statement)
Provisions used during the year
1)
Provisions included in goodwill during the year 2)
Carrying amount at 1 January 2006
Foreign exchange adjustments
Additions from acquired companies, net
Labour-
related items
96
(3)
(1)
8
-
53
(27)
(37)
Carrying amount at 31 December 2006 89
Expected maturity
Within 1 year 68
1-5 years 18
After 5 years 3
Carrying amount at 31 December 2006 89
2005
Foreign exchange adjustments
Transfers, net 1)
Carrying amount at 1 January 2005
Additions from acquired companies, net
Provisions included in goodwill during the year
Provisions made during the year (included in the
income statement)
2)
Provisions not used (reversed against the income statement)
Provisions not used (reversed against goodwill)
Provisions used during the year
71
0
5
18
-
40
(14)
-
(24)
Carrying amount at 31 December 2005 96
Expected maturity
Within 1 year 72
1-5 years 22
After 5 years 2
Carrying amount at 31 December 2005 96
Provisions are not discounted as the effect of time value of money is not material.
Labour-related items:
Self-insurance:
Acquisitions:
Other:
Selfinsurance
Acquisitions Other Total
75
1
5
20
-
42
-
(23)
2) Includes only transaction costs related to acquisitions, as integration costs are included in the income statement.
120
43
72
5
120
36
0
-
13
-
37
(2)
-
(9)
75
42
33
-
75
56
(2)
-
-
110
105
-
(205)
64
48
16
-
64
115
1
4
-
103
62
-
(6)
(223)
56
54
2
-
56
488
0
(68)
138
-
162
(73)
(175)
472
255
181
36
472
424
4
7
15
-
269
(22)
(1)
(208)
488
308
154
26
488
715
(4)
(64)
166
110
362
(100)
(440)
745
414
287
44
745
646
5
16
46
103
408
(38)
(7)
(464)
In 2006 and 2005, the provision mainly related to obligations in Belgium, Brazil, France, the Netherlands,
Spain and Turkey.
In Australia, Ireland and the United Kingdom, ISS Global carries an insurance provision on employers'
liability. Ireland and the United Kingdom are self-insured up to an annual limit of DKK 43 million (DKK 34
million in 2005) for employers' liability. Australia is self-insured up to a limit of DKK 2 million per claim. ISS
Global Corporate has taken out a group third party liability insurance programme. The ISS Global captive
insurance company Global Insurance A/S carries part of the risk on the third party liability programme with
a maximum annual limit of DKK 42 million (DKK 38 million in 2005).
The provision includes obligations incurred in the normal course of acquisitions mainly related to
transaction costs, redundancy payments and termination of rental of properties.
The provision comprises various obligations incurred in the normal course of business e.g. provision for
dismantling costs, operational issues, closure of contracts and legal cases.
1)
In 2006, Transfers consisted of net provisions transfered to Other liabilities and Pensions and similar obligations. In 2005, Transfers consisted of
provisions transfered from Other liabilities.
_____________________________________________________________________________________________________________
ANNUAL REPORT 2006 / Consolidated Financial Statements
86
715
476
211
28
715