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Provisions for other liabilities and charges
12 Months Ended
Dec. 31, 2018
Text block [abstract]  
Provisions for other liabilities and charges

23. Provisions for other liabilities and charges

 

All figures in £ millions

   Deferred
consideration
    Property     Disposals
and closures
    Legal
and other
    Total  

At 1 January 2018

     45       3       11       21       80  

Exchange differences

     2       —         —         —         2  

Charged to income statement

     —         103       —         3       106  

Released to income statement

     —         (2     —         (5     (7

Utilised

     (5     (2     (5     (3     (15

Disposal through business disposal

     —         —         (1     —         (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

At 31 December 2018

     42       102       5       16       165  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Analysis of provisions:

 

     2018  

All figures in £ millions

   Deferred
consideration
     Property      Disposals
and closures
     Legal
and other
     Total  

Current

     6        2        5        7        20  

Non-current

     36        100        —          9        145  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     42        102        5        16        165  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     2017  

Current

     5        1        11        8        25  

Non-current

     40        2        —          13        55  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     45        3        11        21        80  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Deferred consideration primarily relates to the formation of a venture in North America in 2011. The provision will be utilised over a number of years as payments are based on a royalty rate. The provision above represents management’s best estimate of the liability, however, the maximum that could be payable is £84m. Property provisions predominantly relate to restructuring and onerous leases. The main provisions relate to the consolidation of London properties and are expected to be utilised from 2020. Uncertainties around property provisions relate to prevailing market conditions including potential sublet income, lease terms including rent free periods, void periods, lease incentives and running costs. Disposals and closures include liabilities related to recent disposals and are expected to be utilised in 2019. Legal and other includes legal claims, contract disputes and potential contract losses with the provisions utilised as the cases are settled. Also included in legal and other are other restructuring provisions that are generally utilised within one year.