Provisions includes items relating to liabilities for restoring
rental premises to their original condition on moving out, contingent
considerations, pending litigation, environmental cases, and long-term
Restoration concerns expected future costs relating to removal of
plant and installations and restoration, etc., in connection with moving out
of rental premises. The costs are expected to be incurred on termination of
the leases in a minimum of 2 years/maximum of 15 years.
The contingent consideration relates to acquisitions in previous
years and is expected to be settled on an ongoing basis over a period of up
to 6 years, but with the majority being paid before the end of 2013.
Environmental liabilities relate to expected costs to ensure that
Novozymes' production sites do not have a negative environmental impact.
Provision has been made for the estimated costs relating to established
circumstances, and these costs are expected to be incurred either when
concrete measures are implemented or when the sites are vacated.
Novozymes is involved in a number of ongoing legal disputes, and
provision is made for the estimated costs of these based on the current
evaluation of the outcomes. The cases are mainly expected to be finalized in
2012 and 2013.
In addition, provisions also covers a number of minor
obligations, including other long-term employee benefits, liability for
returned goods, etc. These obligations are expected to be incurred over a