Notes to the Financial Statements (Group)
- 16 Financial instruments
- 17 Trade and other payables
- 18 Provisions for liabilities and charges
- 19 Capital and reserves
- 20 Share capital of parent company
18 Provisions for liabilities and charges
| |
Severance $m |
Environmental $m |
Employee benefits $m |
Other provisions $m |
Total $m |
|---|---|---|---|---|---|
| At 1 January 2006 | 62 | 68 | 122 | 102 | 354 |
| Charge/(credit) for 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 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 |
| Charge/(credit) for year | 469 | 37 | (23) | 164 | 647 |
| Cash paid | (405) | (39) | (1) | (12) | (457) |
| Exchange and other movements | (88) | 21 | 8 | (9) | (68) |
| At 31 December 2008 | 619 | 130 | 84 | 309 | 1,142 |
| 2008 $m |
2007 $m |
2006 $m |
|||
|---|---|---|---|---|---|
| Due within one year | 600 | 387 | 39 | ||
| Due after more than one year | 542 | 633 | 327 | ||
| 1,142 | 1,020 | 366 |
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 2010.
Details of the environmental provisions are provided in Note 25.
Employee benefit provisions include the executive deferred bonus plan and other employee benefit provisions. Further details are included in Note 24.
Other provisions comprise various amounts relating to specific legal and constructive obligations and disputes.
No provision has been released or applied for any purpose other than that for which it was established.
