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Provisions
12 Months Ended
Dec. 31, 2017
Provisions
23 PROVISIONS

At December 31 this account comprises:

 

     Total      Current      Not Current  
     2016      2017      2016      2017      2016      2017  

Legal claims

     15,733        23,364        13,303        12,220        2,430        11,144  

Contingent liabilities from the acquisition of Morelco

     5,182        4,224        —          —          5,182        4,224  

Contingent liabilities from the acquisition of Coasin and Vial yVives - DSD

     1,815        1,839        —          —          1,815        1,839  

Contingent liabilities from the acquisition of Adexus

     1,128        1,186        1,128        1,186        —          —    

Provision for well closure (Note 5.1 d)

     17,215        16,804        100        97        17,115        16,707  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     41,073        47,417        14,531        13,503        26,542        33,914  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

At December 31, 2017, legal claims mainly comprise provisions for labor liabilities and tax claims for S/19.3 million (S/14.7 million at December 31, 2016). Claims with the tax authority have been accounted for based on management estimates of the amounts the Group would most likely be required to pay in regard of these current court actions. Due to the fact those amounts will depend on the tax authority, the Group does not have an estimated timing of when these cash outflows would be required.

This legal claim balance also includes court actions brought against the Group by the Peruvian energy regulator (OSINERGMIN) resulting from the storage of hydrocarbons and the applicable environmental laws and regulations for S/5.1 million (S/6.3 million at December 31, 2016).

 

The gross movement of other provisions is broken down as follows:

 

Other provisions

   Legal
claims
     Contingent
liabilities
resulting from
acquisitions
     Provision
for well
closure
     Total  

At January 1, 2016

     15,000        26,779        19,149        60,928  

Additions

     9,486        —          462        9,948  

Acquisition of subsidiaries

     1,926        1,149        —          3,075  

Reversals of provisions

     (10,569      (17,883      (2,395      (30,847

Payments

     (298      (2,458      —          (2,756

Translation adjustments

     187        538        —          725  
  

 

 

    

 

 

    

 

 

    

 

 

 

At December 31, 2016

     15,732        8,125        17,216        41,073  
  

 

 

    

 

 

    

 

 

    

 

 

 

At January 1, 2017

     15,732        8,125        17,216        41,073  

Additions

     9,510        —          —          9,510  

Reversals of provisions

     (235      (809      (412      (1,456

Payments

     (1,680      —          —          (1,680

Translation adjustments

     37        (67      —          (30
  

 

 

    

 

 

    

 

 

    

 

 

 

At December 31, 2017

     23,364        7,249        16,804        47,417  
  

 

 

    

 

 

    

 

 

    

 

 

 

The reversal corresponds to contingent liabilities that expired in 2017 from subsidiaries Morelco, for S/0.8 million, (from subsidiaries Morelco, Vial Vives—DSD y CAM Chile for S/10.1 million, S/4.0 million and S/3.8 million, respectively in 2016).