Notes to the consolidated accounts
19 Provisions
| € million | € million | |
|---|---|---|
| Provisions | 2007 | 2006 |
| Due within one year | ||
| Restructuring provisions | 518 | 439 |
| Preference shares provision | 3 | 300 |
| Disputed indirect taxes | 269 | – |
| Other provisions | 178 | 270 |
| 968 | 1 009 | |
| Due after one year | ||
| Restructuring provisions | 63 | 53 |
| Legal provisions | 55 | 51 |
| Disputed indirect taxes | 422 | 560 |
| Net liability of associate | 30 | 34 |
| Other provisions | 124 | 128 |
| 694 | 826 | |
| Total restructuring and other provisions | 1 662 | 1 835 |
| € million | € million | € million | € million | € million | € million | € million | |
|---|---|---|---|---|---|---|---|
| Movements during 2007 | Restructuring provisions |
Legal provisions |
Preference shares provision |
Disputed indirect taxes |
Net liability of associate |
Other provisions |
Total |
| 1 January 2007 | 492 | 51 | 300 | 560 | 34 | 398 | 1 835 |
| Disposal of group companies | 3 | – | – | – | – | (37) | (34) |
| Income statement: | |||||||
| New charges | 457 | 19 | 15 | 161 | – | 29 | 681 |
| Releases | (43) | (2) | (8) | (61) | – | (59) | (173) |
| Utilisation | (312) | (10) | (304) | (11) | – | (22) | (659) |
| Currency retranslation | (16) | (3) | – | 42 | (4) | (7) | 12 |
| 31 December 2007 | 581 | 55 | 3 | 691 | 30 | 302 | 1 662 |
Restructuring provisions primarily relate to early retirement and redundancy costs, the most significant of which relate to the formation of new multi-country organisations and several factory closures; no projects are individually material. Legal provisions are comprised of many claims, of which none is individually material.
The provision for disputed indirect taxes is comprised of a number of small disputed items. The largest elements of the provision relate to disputes with the Brazilian authorities. Because of the nature of the disputes, the timing of the utilisation of the provisions, and any associated cash outflows, is uncertain. The majority of the disputed items attract an interest charge. For further information please refer to About Unilever.
No individual item within the other provisions balance is significant. Unilever expects that the issues relating to these restructuring, legal and other provisions will be substantively resolved over the next five years.
