Notes to the consolidated annual financial statements

for the year ended 30 September

							2008	2007	2006
							Rm	Rm	Rm
16.	Provisions
	Non-current						325	344	468
	Current						731	600	536
							1 056	944	1 004
	Per business segment:
	Continuing operations
	– Equipment						446	422	318
	– Automotive						390	253	309
	– Handling						67	31	44
	– Logistics						9	15	4
	– Corporate and other						155	190	161
	Total continuing operations						1 067	911	836
	Discontinued operations
	– Car rental Scandinavia						1	2
	– Cement								116
	– Coatings							31	32
	– Scientific							11	20
	– Steel tube								20
	Total discontinued operations						1	44	188
	Total group						1 068	955	1 024
	Amounts classified as held for sale						(12)	(11)	(20)
	Total per balance sheet						1 056	944	1 004
					Credit life
			In-		and	Main-	Post-
		Total	surance	Warranty	warranty	tenance	retirement	Re-
		2008	claims	claims	products	contracts	benefits	structuring	Other
	Movement of provisions	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm
	Balance at beginning of year	944	81	153	35	335	162	36	142
	Amounts added	1 447	36	680	42	485	28	16	160
	Amounts used	(1 300)	(48)	(640)	(31)	(397)	(31)	(20)	(133)
	Amounts reversed unused	(64)		(2)		(8)	2	3	(59)
	Unwinding of discount on
	present valued amounts	15		(5)	7		(33)	(13)	59
	Disposal of subsidiaries	(37)	(1)	(14)	(1)	(14)	(2)	(4)	(1)
	Translation adjustments	51	4	14	6	5	13	2	7
	Balance at end of year	1 056	72	186	58	406	139	20	175
	To be incurred
	Within one year	731	72	185	40	243	25	11	155
	Between two to five years	220		1	18	163	12	9	17
	More than five years	105					102		3
		1 056	72	186	58	406	139	20	175


	Insurance claims
	The provision arises from outstanding claims in Barloworld Insurance Limited which 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 note 32 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 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, health care 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 rights scheme amounting to R16 million (refer note 34) as well as unearned premium provisions amounting to R71 million in the Automotive division.

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