© Rolls-Royce Group plc 2004
Legal information
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| 22 Provisions for liabilities and charges | ||||||
| At January 1, 2003 £m |
Exchange adjustments £m |
Unused amounts reversed £m |
Charged to profit and loss account £m |
Utilised £m |
At December 31, 2003 £m |
|
| Post-employment, pensions and other post-retirement benefits | 158 | (14) | — | 21 | (5) | 160 |
| Deferred taxation (note 23) | 179 | (1) | (1) | 37 | — | 214 |
| Warranty/guarantees | 182 | — | (4) | 71 | (62) | 187 |
| Contract loss | 84 | (1) | (3) | 28 | (40) | 68 |
| Customer financing | 64 | — | — | 38 | (10) | 92 |
| Insurance | 23 | — | — | 2 | — | 25 |
| Restructuring and rationalisation | 54 | — | (2) | 5 | (35) | 22 |
| Other | 28 | (1) | (3) | 6 | (3) | 27 |
|
772 | (17) | (13) | 208 | (155) | 795 |
Post-employment, pensions and other post-retirement provisions are long term in nature and the timing of their utilisation is uncertain.
Warranty provisions primarily relate to products sold and generally cover a period of up to three years.
Provisions for contract loss and restructuring are generally expected to be utilised within one year.
Customer financing provisions cover guarantees provided for asset values and/or financing as described in note 28. Timing of utilisation is uncertain.
Insurance provisions relate to the Group’s captive insurance business with timing of utilisation being uncertain.
Other provisions comprise a number of liabilities with varying expected utilisation rates.