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Notes to the consolidated annual financial statements l Note 15


        2013     2012     2011  
        Rm     Rm     Rm  
15. PROVISIONS                    
  Non-current     294     254     265  
  Current     1 079     839     633  
        1 373     1 093     898  


        Total
2013		     Insurance
claims		 Warranty
claims		 Credit
life and
warranty
products		 Mainte-
nance
contracts		 Post-
retirement
benefits		 Restruct-
uring		 Other  
  Movement of provisions     Rm     Rm Rm Rm Rm Rm Rm Rm  
  Balance at beginning of year     1 093     20 277 62 332 80 60 262  
  Amounts added     1 503     7 360 28 744 8 3 353  
  Amounts used     (1 163)     (16) (282) (23) (656) (5) (30) (151)  
  Reallocation of amounts     5     5              
  Amounts reversed unused     (138)       (89) (1) (20)     (28)  
  Disposal of subsidiaries     (27)       (3) (24)          
  Unwinding of discount on present valued amounts     15         5   10      
  Translation adjustments     94     4 32 10 24 4 13 7  
  Total group     1 382     20 300 52 434 87 46 443  
  Amounts classified as held for sale     (9)       (3)       (2) (4)  
  Total per statement of financial position     1 373     20 297 52 434 87 44 439  
  To be incurred                          
  Within one year     1 079     18 262 17 354 64 27 337  
  Between two and five years     277     2 35 35 80 7 17 101  
  More than five years     17             16   1  
        1 373     20 297 52 434 87 44 439  
  Insurance claims
The provision arises from outstanding claims to third parties from Barloworld Insurance Limited that manages the group’s insurance programme.

Warranty claims
The provisions relate principally to warranty claims on capital equipment, spare parts and service. The estimate is based on claims notified and past experience.

Credit life and warranty products
The provision relates to credit life and warranty products sold by the Automotive segment. Refer to note 31 on insurance contracts.

Maintenance contracts
This relates to deferred revenue on maintenance and repair contracts on equipment, forklift trucks and motor vehicles. Assumptions include the estimation of maintenance and repair costs over the life cycle of the assets concerned.

Post-retirement benefits
The provisions comprise mainly of post-retirement benefits for existing and former employees. Actuarial valuations were used to determine the value of the provisions where necessary. The actuarial valuations are based on assumptions which include employee turnover, mortality rates, discount rates, the expected long-term rate of return of retirement plan assets, healthcare inflation cost and rates of increase in compensation costs.

Restructuring
The provision includes obligations related to the closure of operations.

Other
Included in other provisions are the amounts raised in terms of the Share Appreciation Right Scheme amounting to R188 million (refer note 33).
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