Page 93 - Paragon Annual Report 2

Notes to the consolidated financial statements (continued) 22 Provisions
Balance at 1 July 2015
Utilised during the period
Exceptional provisions released (note 8) Exchange movements
Charge/(credit) during the period
Balance at 30 June 2016
Utilised during the period
Exchange movements
Charge during the period Reclassification from trade payables Acquisitions (note 11)
Balance as at 30 June 2017
2,798 4,305 3,277
(198) (3,647) (1,033) – – (938) (53) (35) (10) 192 376 (664)
2,739 999 632
(179) (370) (404) – (3) (113)
181 3,445 234 – – 130 954 – 5,353
3,695 4,071 5,832
10,380
(4,878) (938) (98) (96)
4,370
| 89
Retirement
Restructuring
Other
Total
€000
€000
€000
€000
(953)
(116)
3,860
130
6,307
13,598
5,213
8,385
13,598
Current 291 Non-current 3,404
Balance as at 30 June 2017 3,695
Retirement provisions
3,696 1,226 375 4,606
4,071 5,832
Certain European countries in which the Group operates oblige the employer to provide lump sum termination payments. The provisions have been calculated with reference to specified individuals who are entitled to this arrangement.
Restructuring provisions
This provision includes redundancy and related charges incurred on the closure or restructuring of Group operations.
Other provisions
These provisions include dilapidations, rent free periods and onerous contracts.
Dilapidations are the provisions recorded for the costs of returning properties held under operating leases to the state of repair at the inception of the lease. These provisions are expected to be utilised on the termination of the underlying leases.
Rent free periods can be included in property operating lease contracts. The benefit of these rent free periods is evenly taken to the Income Statement over the life of the operating lease.
Provisions have been recorded for the onerous payments on certain lease arrangements. They have been established on the basis of the expected onerous element of future lease payments over the remaining life of the relevant leases and agreements, which expire in between one to three years. These have been discounted and the provisions are expected to be utilised, with the discounts unwinding accordingly, over the remaining terms of the corresponding lease arrangements.
Paragon Group Limited – 05258175