2008 Registration Document - Rexel

17. PROVISIONS AND OTHER NON-CURRENTLIABILITIES(in millions of euros)As of December 31,2008 2007Provisions 168.6 41.4Other non-current liabilities 55.2 11.4Total 223.8 52.8Other non-current liabilities are comprised essentially offair value of derivatives instruments for €45.0 million (seenote 20.1) and debts related to the profit sharing schemesfor French employees in the amount of €10.3 million(€8.3 million as of December 31, 2007).The variation in provisions is detailed below:(in millions of euros)ProvisionforrestructuringProvisionfor litigationOtherprovisionProvisionfor vacantpropertiesTotalprovisionsAt January 1, 2007 10.7 27.7 6.2 3.3 47.9Change in consolidation scope – – 0.2 – 0.2Increase 2.5 12.2 2.3 1.9 18.9Use (5.6) (3.3) (3.4) (1.1) (13.4)Release (0.7) (8.3) (1.6) (2.1) (12.7)Translation differences 0.1 (1.2) 1.6 (0.2) 0.3Other changes 0.6 (3.7) 3.3 – 0.2At December 31, 2007 7.6 23.4 8.6 1.8 41.4Change in consolidation scope 1.8 5.6 18.8 85.7 111.9Increase 22.9 9.5 7.6 11.4 51.4Use (6.0) (1.2) (3.0) (6.0) (16.2)Release (0.1) (1.3) (0.6) (1.0) (3.0)Translation differences (0.8) (0.6) (1.5) (13.5) (16.4)Other changes (1.9) (0.2) (0.3) 1.9 (0.5)At December 31, 2008 23.5 35.2 29.6 80.3 168.6As of December 31, 2008, provisions consist mainly of:− accrued expenses of €8.4 million for restructuring inFrance (branch closures and termination of non corebusiness), €3.5 million in the United States (reorganizationof regional divisions), €1.9 million in Spain (integration ofABM);− litigation reserves concerning fiscal matters of€25.2 million in France (see note 22.2), €5.6 million in theNetherlands and of €3.7 million in Canada;− other reserves for claims incurred in normal course ofbusiness including commercial litigation of €11.0 million,personnel-related litigation of €4.1million and claims forwarranties granted to customers ;− provision for vacant properties including a reserve foronerous contract relating to the national distribution centerin the UK acquired as part of the business combinationwith Hagemeyer for €51.9 million.For the year ended December 31, 2008, change inconsolidation scope related to Hagemeyer entities for€112.2 million and mainly included reserve for variousonerous contract in the UK for €75.9 million, reserve for theexposure related to legal proceedings (see note 22.1) for€10 million, reserve for warranty granted on ACE Divisionproducts for €7.6 million and a reserve for Group tax risksfor €5.6 million.REXEL 2008 | PAGE 191