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Annual Report & Accounts 2016 - Notes
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95 20. PROVISIONS Provisions relate to onerous contracts and leases, where the future economic benefits are less than the costs to be incurred, and legal provisions recognised at fair value as part of the business combination. Further details on the largest legal provision are set out below in note 20.1. CURRENT Provisions for litigation €m Other provisions €m Total €m At 31 December 2015 - - - Acquired through business combination - 7.7 7.7 Utilised during the year - (7.1) (7.1) Transfer from non-current to current - 0.6 0.6 AT 31 DECEMBER 2016 - 1.2 1.2 NON-CURRENT At 31 December 2015 - - - Acquired through business combination 3.7 3.8 7.5 Utilised during the year - - - Transfer from non-current to current - (0.6) (0.6) AT 31 DECEMBER 2016 3.7 3.2 6.9 20.1 Provisions for litigation On 16 October 2014, the Portuguese Supreme Court confirmed a ruling of the Oporto Court of First Instance of September 2011 against Liga Portuguesa de Futebol Profissional ("Liga") and certain bwin.party entities. In June 2012, APC initiated enforcement proceedings against the Liga and bwin.party, requesting the payment of pecuniary sanctions in the total amount of €6.4m for the alleged violation of the first instance court judgment during the period between 24 September 2011 and 31 January 2012. The Liga and bwin.party remain firmly of the view that such enforcement action is without merit. The legal process is still ongoing. Due to the inherent uncertainty in legal proceedings, on acquisition of bwin.party in February 2016 the Group recognised a fair value provision for the legal case of €3.2m on a fair value basis together with a further provision of €0.5m for other unrelated legal cases. 20.2 Other provisions Other provisions include other uncertainties around potential infrastructure, marketing or taxation costs where the Directors feel that there is a material but uncertain risk of outflows to the business. These have been measured based on the estimated probability of such outflows occurring in the near future. 21. DEFERRED TAX Total €m As at 31 December 2015 - Acquired in business combination (79.6) Deferred tax credit 11.8 Transfer to liabilities held for sale 3.8 Foreign exchange and other movements (1.6) AS AT 31 DECEMBER 2016 (65.6) Deferred tax liabilities relate primarily to temporary differences arising from fair value adjustments of acquired intangibles and also the repatriation of profits from foreign jurisdictions.