Notes 16-20
- 16 Financial risk management objectives and policies
- 17 Financial instruments
- 18 Trade and other payables
- 19 Provisions for liabilities and charges
- 20 Statement of changes in equity
19 PROVISIONS FOR LIABILITIES AND CHARGES
| Severence $m |
Environmental $m |
Employee benefits $m |
Other provisions $m |
Total $m |
|
|---|---|---|---|---|---|
| At 1 January 2005 | 34 | 67 | 121 | 83 | 305 |
| Charge for the year | 33 | 17 | 32 | 20 | 102 |
| Cash paid | (1) | (16) | (20) | – | (37) |
| Exchange and other movements | (4) | – | (11) | (1) | (16) |
| At 31 December 2005 | 62 | 68 | 122 | 102 | 354 |
| Charge/(credit) for the year | (1) | 56 | 36 | (4) | 87 |
| On acquisition of subsidiary | – | – | – | 20 | 20 |
| Cash paid | (36) | (29) | (36) | (5) | (106) |
| Exchange and other movements | 6 | – | (13) | 18 | 11 |
| At 31 December 2006 | 31 | 95 | 109 | 131 | 366 |
| Charge for the year | 620 | 48 | 4 | 58 | 730 |
| Cash paid | (25) | (32) | (23) | (25) | (105) |
| Exchange and other movements | 17 | – | 10 | 2 | 29 |
| At 31 December 2007 | 643 | 111 | 100 | 166 | 1,020 |
| 2007 $m |
2006 $m |
2005 $m |
|||
| Due within one year | 387 | 39 | 45 | ||
| Due after more than one year | 633 | 327 | 309 | ||
| 1,020 | 366 | 354 | |||
AstraZeneca is undergoing a worldwide restructuring initiative which involves rationalisation of the Global Supply Chain, European Sales and Marketing, Information Services and Business Support infrastructure and Research and Development. Employee costs in connection with the initiatives are recognised in severance provisions. This is a three-year programme expected to be substantially completed by the end of 2009.
Employee benefit provisions include the executive deferred bonus plan and other employee benefit provisions. Further details are included in Note 26.
Details of environmental and litigation provisions are provided in Note 27.
No provision has been released or applied for any purpose other than that for which it was established.
