Notes to the Company accounts

7 Provisions for liabilities and charges

	At 6 August 2006 £m	Provisions Charged £m	Utilisation £m	At 31 July 2007 £m
Property	2.3		(1.1)	1.2
Disposals		23.9		23.9
	2.3	23.9	(1.1)	25.1

As stated in the accounting policies in this Report, where a property is vacant, or sub-let under terms such that rental income is insufficient to meet all outgoings, the Company provides for the expected future shortfall up to termination of the lease. Provision is also made for the cost of reinstatement work on leased properties where there is an obligation under the lease, and the costs can be reasonably estimated. Where evidence of contamination is found on property in the Company’s occupation, provision is made for estimated remedial costs pending action on the affected site. Most of the balance is expected to be utilised within the next five years. The provision is not discounted.

The terms of the disposal of the aerospace operations included certain obligations for which provision has been made, including £20.7m in respect of costs of transferring aerospace active pensioners.

Smiths Group divisions:
Smiths Detection, Smiths Medical, Smiths Specialty Engineering