Note 35

		2017 R’000	2016 R’000
35.	Provisions
	Long-term portion	149 907	163 887
	Short-term portion	278 582	278 830
		428 489	442 717

	Onerous contracts R’000	Insurance liabilities R’000	Dismantling and site restoration R’000	Customer loyalty programme R’000	Other R’000	Total R’000
Balance at 1 July 2015	73 678	350 971	348 239	99 669	140 300	1 012 857
Created	31 402	245 765	128 644	33 491	83 738	523 040
Utilised	(12 769)	(240 371)	(53 046)	(23 399)	(66 961)	(396 546)
Net acquisition of businesses	(72 202)	–	(493 139)	(130 310)	(134 196)	(829 847)
Exchange rate adjustments	13 831	–	73 893	20 549	24 940	133 213
Balance at 30 June 2016	33 940	356 365	4 591	–	47 821	442 717
Created	2 008	349 873	322	–	44 764	396 967
Utilised	(26 127)	(376 975)	(483)	–	(16 537)	(420 122)
Net disposal and or unbundling of businesses	–	–	–	–	9 641	9 641
Exchange rate adjustments	–	–	(653)	–	(61)	(714)
Balance at 30 June 2017	9 821	329 263	3 777	–	85 628	428 489

Onerous contracts

Onerous contracts are identified through regular reviews of the terms and conditions of contracts as well as on the acquisition of businesses. A provision for onerous contracts is calculated as the present value of the portion which management deems to be onerous in light of the current market conditions, discounted using market-related rates. An annual expense is recognised over the life of the contracts.

Insurance liabilities

Insurance liabilities include amounts provided for: unearned premiums, which represent the proportion of premiums written in the current year which relate to risks that have not expired by the end of the financial year and are calculated on a time proportionate basis; deferred acquisition costs, which are recognised on a basis consistent with the related provisions for unearned premiums; claims, which are calculated on the settlement amount outstanding at year-end; and claims incurred but not reported, for claims arising from events that occurred before the close of the accounting period but which had not been reported to the Group by that date, and are calculated based on the preceding six years’ insurance premium revenue multiplied by percentages specified in the Short-Term Insurance Act.

Dismantling and site restoration

A provision is raised for the estimated costs of dismantling and removing items, and restoring the property on which they are located. The change in the liability arising as a result of unwinding the discount is recognised in the income statement as a finance charge. The dismantling of the plant and recommissioning of buildings is expected to coincide with the end of the useful life of the plant and lease periods.

Other

Included in other is a provision raised for the estimated cost of honouring warranties on certain products sold where the manufacture warranty is inadequate or not available, R40 million (2016: R16 million). Also included is a provision for insurance raised for the estimated cost of claims not covered by the Group’s insurance policies and in certain instances for the cost of claims below the Group’s inner deductibles, R25 million (2016: R26 million).