Anglo American Annual Report 2012

26. PROVISIONS FOR LIABILITIES AND CHARGESUS$ millionEnvironmentalrestoration (1) Decommissioning (1) Employeebenefits Other TotalAt 1 January 989 349 257 607 2,202Acquired through business combinations 83 129 118 217 547Charged to the income statement 90 – 218 424 732Capitalised 37 42 – (9) 70Unwinding of discount 60 29 1 12 102Amounts applied (37) (2) (129) (109) (277)Unused amounts reversed (34) (1) – (143) (178)Transfer to liabilities directly associated with assets classified as held for sale (83) (22) (10) (108) (223)Currency movements (16) (7) (16) 12 (27)At 31 December 1,089 517 439 903 2,948(1)The Group makes contributions to controlled funds to meet the cost of some of its environmental restoration and decommissioning liabilities, see note 16.2012Maturity analysis of total provisions:US$ million 2012 2011Current 564 372Non-current 2,384 1,8302,948 2,202Environmental restorationThe Group has an obligation to undertake restoration, rehabilitation and environmental work when environmental disturbance is caused by the developmentor ongoing production of a mining property. A provision is recognised for the present value of such costs. It is anticipated that these costs will be incurred overa period in excess of 20 years.DecommissioningProvision is made for the present value of costs relating to the decommissioning of plant or other site restoration work. It is anticipated that these costs will beincurred over a period in excess of 20 years.Employee benefitsProvision is made for statutory or contractual employee entitlements including long service leave, annual leave, sickness pay obligations and cash settledshare-based payment obligations. It is anticipated that these costs will be incurred when employees choose to take their benefits.OtherOther provisions primarily relate to indemnities, warranties and legal claims. It is anticipated that these costs will be incurred over a five year period. Otherprovisions also includes obligations for certain long term contracts where the unavoidable costs of meeting the Group’s obligations is expected to exceedthe benefits to be received, see note 5. It is anticipated these costs will be incurred over a period in excess of 15 years.Financial statements27. DEFERRED TAXThe movement in net deferred tax liabilities during the year is as follows:US$ million 2012 2011At 1 January (5,200) (5,252)Credited/(charged) to the income statement 1,090 (550)(Charged)/credited to the statement of comprehensive income (86) 10Charged directly to equity (110) (127)Acquired through business combinations (850) –Transfer to assets held for sale 118 –Disposal of businesses – 5Currency movements 192 714At 31 December (4,846) (5,200)Comprising:Deferred tax assets 1,223 530Deferred tax liabilities (6,069) (5,730)The amount of deferred tax recognised in the balance sheet is as follows:US$ million 2012 2011Deferred tax assetsTax losses 374 273Post employment benefits 118 35Share-based payments 9 15Enhanced tax depreciation 560 –Other temporary differences 162 2071,223 530Deferred tax liabilitiesCapital allowances in excess of depreciation (3,311) (3,334)Fair value adjustments (2,582) (1,806)Tax losses 29 103Derivatives 15 (167)Provisions 416 393Chilean withholding tax (570) (656)Other temporary differences (66) (263)(6,069) (5,730)Anglo American plc Annual Report 2012 173