Adcock Ingram Integrated Report 2018

Notes to the Group annual financial statements continued 95 ADCOCK INGRAM  Integrated Report 2018 24 CASH-SETTLED OPTIONS 2018 2017 R’000 R’000 Opening balance 7 384 3 117 Charged to operating profit 4 656 5 358 Payments made (9 627) (1 091) 2 413 7 384 Refer to Annexure B – – 25 PROVISIONS Leave pay 52 816 44 373 Bonus and incentive scheme 31 088 31 557 Other 46 428 – 130 332 75 930 Made up as follows: Leave pay Balance at beginning of year 44 373 40 378 Arising during the year 72 710 64 765 Utilised during the year (60 533) (55 123) Unused amounts reversed (6 198) (5 335) Acquisition of business 2 255 – Exchange rate adjustments 209 (312) Balance at end of year 52 816 44 373 Bonus and incentive scheme Balance at beginning of year 31 557 29 528 Arising during the year 31 196 31 557 Utilised during the year (31 665) (26 647) Unused amounts reversed – (2 881) Balance at end of year 31 088 31 557 Other Balance at beginning of year – – Arising during the year 46 428 – Balance at end of year 46 428 – Leave pay provision In excess of 95% of the balance represents the liability for employees in South Africa. In terms of the Group policy, employees in South Africa are entitled to accumulate leave benefits not taken within a leave cycle, up to a maximum of three times the employee’s annual leave allocation, limited to a maximum of 30 days. The obligation is reviewed annually. Bonus and incentive provision Certain employees participate in a performance-based incentive scheme and provision is made for the estimated liability in terms of set performance criteria. These incentives are expected to be paid in September 2018. Other Other provision includes a liability as a result of an initial contract with a customer which provides for the Group to sign an obligation agreement which should be discharged over a period of seven years.