|
| Balance at 1 January 2006 |
26 |
5 |
21 |
| Provisions made during the year |
7 |
1 |
6 |
| Provisions used during the year |
-5 |
-2 |
-3 |
| Provisions released during the year |
-3 |
-1 |
-2 |
| Balance at 1 January 2007 |
25 |
3 |
22 |
| Provisions made during the year |
43 |
1 |
42 |
| Provisions used during the year |
-3 |
-1 |
-2 |
| Provisions released during the year |
-6 |
-2 |
-4 |
| Balance at 31 December 2007 |
59 |
1 |
58 |
|
|
|
|
| Non current |
20 |
|
20 |
| Current |
39 |
1 |
38 |
| Balance at 31 December 2007 |
59 |
1 |
58 |
Provision for restructuring
The provision for restructuring comprises accruals for costs which are directly associated with plans to exit specific activities. The restructuring activities relate to smaller restructurings within the Company and are expected to be completed within two years.
Other provisions
In relation to the ongoing competition investigation launched in France in 2004 (see our media release dated 3 December 2007), having carefully considered the allegations made in the French competition authority’s statement of objections which has now been discussed extensively with the authority and having taken detailed advice, we have reserved an amount of €25 million.
The remainder of the other provisions relate to risks of various kinds throughout the Company, including provisions for claims from governmental authorities for social security and various taxes, as well as for other legal liabilities. The timing and amount for the settlement of these provisions is uncertain but is expected within 2-4 years.
8.19 Trade and other liabilities
|
| Trade payables |
90 |
81 |
| Other taxes and social contributions |
584 |
553 |
| Other liabilities and accruals |
512 |
468 |
| Deferred consideration business combinations |
28 |
3 |
| Interest |
6 |
6 |
|
1,220 |
1,111 |
Of the trade and other liabilities an amount of €1,054 million (2006: €962 million) is payable within 90 days, €98 million (2006: €107 million) within 91-180 days and €68 million (2006: €42 million) within 181-365 days.
8.20 Operating leases Non cancellable operating lease rentals are payable as follows:
|
| Less than one year |
89 |
89 |
| Between one and five years |
170 |
172 |
| More than five years |
44 |
43 |
|
303 |
304 |
The Group leases a number of offices and operating equipment under operating leases for which the total expenses were €82 million in 2007 (2006: €79 million). The leases typically run for a period of 3-5 years, with an option to renew the lease after that date.
8.21 Contingencies and guarantees The Group is involved in a number of legal proceedings relating to normal business activities. The Company believes that sufficient provisions have been made for their outcome.
Vedior N.V. and Randstad Holding nv have included in the Merger Agreement arrangements for material compensation in case the agreement is – under certain circumstances – terminated by either party.
Currently the AFM is investigating the possibility of insider trading in Vedior shares on 30 November 2007. The AFM has not completed its investigation and Vedior has not recorded a provision.
The Group has given indemnifications, representations and warranties with respect to companies disposed of in recent years. With respect to obligations of group companies, Vedior N.V. is committed to some banks as main co-debtor and has extended guarantees in addition to consolidated liabilities of subsidiaries for an amount of €500 million (2006: €378 million). Vedior N.V. issued statements for joint and several liability for Dutch subsidiaries in which it holds a majority interest. These companies are included in the consolidated accounts. At 31 December 2007, the total debt of these companies amounted to €146 million (2006: €286 million).
The borrower of the Syndicated credit facility and the senior notes described on this page is one of the group companies and Vedior has extended a guarantee for all obligations under these Facilities.