Notes to the accounts
4 Exceptional operating items
An analysis of the amounts presented as exceptional operating items in these financial statements is given below:
|
|
Period ended |
Period ended |
|
Integration of acquisitions |
(9.0) |
(18.7) |
|
Impairment of goodwill and other assets |
(10.3) |
|
|
(Loss)/profit on disposal of businesses (note 30) |
(5.2) |
18.1 |
|
Aborted transaction costs |
(12.7) |
|
|
Litigation: |
|
|
|
– Commutation of insurance policies (note 23) |
42.9 |
|
|
– Provision for John Crane litigation (note 23) |
(100.7) |
|
|
– Provision for other litigation (note 23) |
(8.6) |
|
|
– Class action settlement |
5.4 |
(12.2) |
|
|
(98.2) |
(12.8) |
Period ended 31 July 2007
Restructuring costs in connection with the integration of Medex amounting to £9.0m have been incurred in the period.
Impairment of goodwill and other assets includes £8.1m in respect of the impairment of a disposal group (John Crane Automotive) prior to its eventual sale.
Costs of £12.7m in relation to the proposed joint venture with GE have been written off in the light of the decision not to proceed with the joint venture (note 32).
John Crane, Inc. has commuted certain insurance policies and received £42.9m in cash for the period. At the same time, a provision of £100.7m in respect of legal defence costs for asbestos cases has been established (note 23).
The progression of other litigation cases arising this year has given rise to an exceptional charge.
The exceptional charge recognised last year in respect of the class action settlement has now been finalised since the period over which homeowners can claim a contribution towards remedial costs has expired. That element of the provision which was surplus has therefore been released.
Period ended 5 August 2006
Restructuring costs in connection with the integration of Medex amounting to £18.7m were incurred in the period.
Along with three other companies, Titeflex Corporation, a US subsidiary, settled an industry-wide class action with respect to its corrugated stainless steel tubing product in the US. The settlement was a compromise of disputed claims and did not imply any admission of liability. The company stands by the safety of this product, and entered into the agreement solely to avoid the future expense, disruption and burden of protracted litigation. The exceptional charge of £12.2m covers all legal fees and administrative costs, and an estimate for a contribution to certain homeowners towards remedial costs connected with the tubing.
Profit on disposal of businesses included £11.2m relating to the release of provisions and accruals made in respect of prior-year disposals, the warranties and attendant issues for which they were created having been satisfactorily resolved.