Financial Statements

Notes to the Group financial statements

for the year ended 31 March 2006

23. Provisions

	Onerous	Insurance	OFT	Other
	leases	provisions	fine	provisions	Total
	£m	£m	£m	£m	£m
At 1 April 2005	30	30	16	12	88
Amount credited/(debited) in the year	11	5	–	(3)	13
Utilised	(5)	(6)	–	(2)	(13)
Impact of discount rate movement	1	–	–	–	1
At 31 March 2006	37	29	16	7	89

 

	Onerous	Insurance	OFT	Other
	leases	provisions	fine	provisions	Total
	£m	£m	£m	£m	£m
At 1 April 2004	30	41	–	29	100
Amount credited/(debited) in the year	2	(3)	16	(6)	9
Utilised	(3)	(8)	–	(11)	(22)
Impact of discount rate movement	1	–	–	–	1
At 31 March 2005	30	30	16	12	88

The onerous lease provision covers potential liabilities for onerous leases at stores which have either closed or where a decision to close has been announced. It also covers stores which are still trading but have been impaired. The onerous lease provisions for closed stores are based on the present value of expected future cash outflows using a discount rate of 4.79% (2005: 4.20%).

Insurance provisions comprise the estimated costs of claims incurred but not settled at the balance sheet date, including the cost of claims incurred but not yet reported. The cost of claims includes expenses to be incurred in settling claims.

Fair values of provisions do not differ materially from the recognised book values.