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This excerpt taken from the ELN 6-K filed Mar 30, 2009. Contingencies
Relating to Actual or Potential Administrative
Proceedings
A provision is recognised in the balance sheet when we have a
present legal or constructive obligation as a result of a past
event, and it is probable that an outflow of economic benefits
will be required to settle the obligation and the amount of the
loss can be reasonably estimated. If the effect is material,
provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, when appropriate,
the risks specific to the liability.
We are currently involved in certain legal and administrative
proceedings, relating to securities matters, patent matters,
antitrust matters and other matters, some of which are described
in Note 29 to the Consolidated Financial Statements. We
assess the likelihood of any adverse outcomes to contingencies,
including legal matters, as well as probable losses. We record
provisions for such contingencies when it is probable that a
liability has been incurred and the amount of the loss can be
reasonably estimated. A contingent liability is disclosed where
the existence of the obligation will only be confirmed by future
events, or where the amount of the obligation cannot be measured
with reasonable reliability. Provisions are remeasured at each
balance sheet date based on the best estimate of the settlement
amount. As at 31 December 2008, we had provided for
$5.9 million (2007: $1.7 million), representing our
estimate of the costs for the current resolution of these
matters. We developed estimates in consultation with outside
counsel handling our defence in these matters using the facts
and circumstances known to us. The factors that we consider in
developing our legal contingency provision include the merits
and jurisdiction of the litigation, the nature and number of
other similar current and past litigation cases, the nature of
the product and current assessment of the science subject to the
litigation and the likelihood of settlement and current state of
settlement discussions, if any. We believe that the legal
contingency provision that we have established is appropriate
based on current factors and circumstances. However, it is
possible that other people applying reasonable judgement to the
same facts and circumstances could develop a different liability
amount. The nature of these matters is highly uncertain and
subject to change. As a result, the amount of our liability for
certain of these matters could exceed or be less than the amount
of our current estimates, depending on the outcome of these
matters.
This excerpt taken from the ELN 6-K filed Mar 31, 2008. Contingencies
Relating to Actual or Potential Administrative
Proceedings
A provision is recognised in the balance sheet when we have a
present legal or constructive obligation as a result of a past
event, it is probable that an outflow of economic benefits will
be required to settle the obligation and the amount of the loss
can be reasonably estimated. If the effect is material,
provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, when appropriate,
the risks specific to the liability.
We are currently involved in certain legal and administrative
proceedings, relating to securities matters, patent matters,
antitrust matters and other matters, some of which are described
in Note 30 to the Consolidated Financial Statements. We
assess the likelihood of any adverse outcomes to contingencies,
including legal matters, as well as probable losses. We record
provisions for such contingencies when it is probable that a
liability will be incurred and the amount of the loss can be
reasonably estimated. A contingent liability is disclosed where
the existence of the obligation will only be confirmed by future
events, or where the amount of the obligation cannot be measured
with reasonable reliability. Provisions are remeasured at each
balance sheet date based on the best estimate of the settlement
amount. As at 31 December 2007, we had provided for
$1.7 million (2006: $5.0 million), representing our
estimate of the costs for the current resolution of these
matters. We developed these estimates in consultation with
outside counsel handling our defence in these matters using the
current facts and circumstances known to us. The factors that we
consider in developing our legal contingency provision include
the merits and jurisdiction of the litigation, the nature and
number of other similar current and past litigation cases, the
nature of the product and current assessment of the science
subject to the litigation and the likelihood of settlement and
current state of settlement discussions, if any. We believe that
the legal contingency provision that we have established is
appropriate based on current factors and circumstances. However,
it is possible that other people applying reasonable judgement
to the same facts and circumstances could develop a different
liability amount. The nature of these matters is highly
uncertain and subject to change. As a result, the amount of our
liability for certain of these matters could exceed or be less
than the amount of our current estimates, depending on the
outcome of these matters.
This excerpt taken from the ELN 6-K filed Mar 30, 2007. Contingencies
Relating to Actual or Potential Administrative
Proceedings
A provision is recognised in the balance sheet when we have a
present legal or constructive obligation as a result of a past
event, it is probable that an outflow of economic benefits will
be required to settle the obligation and the amount of the loss
can be reasonably estimated. If the effect is material,
provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, when appropriate,
the risks specific to the liability.
32 Elan
Corporation, plc 2006 Annual Report
Table of Contents
Financial Review
We are currently involved in certain legal and administrative
proceedings, relating to securities matters, patent matters,
antitrust matters and other matters, as described in
Note 31 to the Consolidated Financial Statements. We assess
the likelihood of any adverse outcomes to contingencies,
including legal matters, as well as probable losses. We record
provisions for such contingencies when it is probable that a
liability will be incurred and the amount of the loss can be
reasonably estimated. A contingent liability is disclosed where
the existence of the obligation will only be confirmed by future
events, or where the amount of the obligation cannot be measured
with reasonable reliability. Provisions are remeasured at each
balance sheet date based on the best estimate of the settlement
amount. As at 31 December 2006, we had provided for
$5.0 million (2005: $2.1 million), representing our
estimate of the costs for the current resolution of these
matters. We developed these estimates in consultation with
outside counsel handling our defence in these matters using the
current facts and circumstances known to us. The factors that we
consider in developing our legal contingency provision include
the merits and jurisdiction of the litigation, the nature and
number of other similar current and past litigation cases, the
nature of the product and current assessment of the science
subject to the litigation, and the likelihood of settlement and
current state of settlement discussions, if any. We believe that
the legal contingency provision that we have established is
appropriate based on current factors and circumstances. However,
it is possible that other people applying reasonable judgement
to the same facts and circumstances could develop a different
liability amount. The nature of these matters is highly
uncertain and subject to change. As a result, the amount of our
liability for certain of these matters could exceed or be less
than the amount of our current estimates, depending on the
outcome of these matters.
This excerpt taken from the ELN 6-K filed Mar 31, 2006. Contingencies Relating to Actual or
Potential Administrative Proceedings
A provision is recognised in the balance sheet when we have a
present legal or constructive obligation as a result of a past
event, it is probable that an outflow of economic benefits will
be required to settle the obligation and the amount of the loss
can be reasonably estimated. If the effect is material,
provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, when appropriate,
the risks specific to the liability.
We are currently involved in certain legal and administrative
proceedings, relating to securities matters, patent matters,
antitrust matters and other matters, as described in
Note 30 to the Consolidated Financial Statements. We assess
the likelihood of any adverse outcomes to contingencies,
including legal matters, as well as probable losses. We record
provisions for such contingencies when it is probable that a
liability will be incurred and the amount of the loss can be
reasonably estimated. A contingent liability is disclosed where
the existence of the obligation will only be confirmed by future
events, or where the amount of the obligation cannot be measured
with reasonable reliability. Provisions are remeasured at each
balance sheet date based on the best estimate of the settlement
amount. As at 31 December 2005, we had provided for
$2.1 million (2004: $63.4 million), representing our
estimate of the costs for the current resolution of these
matters. We developed these estimates in consultation with
outside counsel handling our defence in these matters using the
current facts and circumstances known to us. The factors that we
consider in developing our legal contingency provision include
the merits and jurisdiction of the litigation, the nature and
number of other similar current and past litigation cases, the
nature of the product and current assessment of the science
subject to the litigation, and the likelihood of settlement and
current state of settlement discussions, if any. We believe that
the legal contingency provision that we have established is
appropriate based on current factors and circumstances. However,
it is possible that other people applying reasonable judgement
to the same facts and circumstances could develop a different
liability amount. The nature of these matters is highly
uncertain and subject to change. As a result, the amount of our
liability for certain of these matters could exceed or be less
than the amount of our current estimates, depending on the
outcome of these matters.
This excerpt taken from the ELN 6-K filed Apr 11, 2005. Contingencies Relating to Actual or Potential Administrative Proceedings We are currently involved in certain legal and administrative proceedings, relating to securities matters, patent matters, antitrust matters and other matters, as described in Note 26 to the Consolidated Financial Statements. We assess the likelihood of any adverse outcomes to contingencies, including legal matters, as well as potential ranges of probable losses. We record provisions for such contingencies when it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated. If an unfavourable outcome is probable, but the amount of the loss cannot be reasonably estimated, we estimate the range of probable loss and provide for the most probable loss within the range. If no amount within the range is deemed more probable, we provide for the minimum amount within the range. If neither a range of loss or a minimum amount of loss is estimatable, then appropriate disclosure is given, but no provision is recorded. As at 31 December 2004, we had provided for $63.4 million (which includes $55.0 million in relation to settlement of the SEC investigation and shareholder class actions), representing our estimate of the costs for the current resolution of these matters. We developed these estimates in consultation with outside counsel handling our defense in these matters using the current facts and circumstances known to us. The factors that we consider in developing our legal contingency provision include the merits and jurisdiction of the litigation, the nature and number of other similar current and past litigation cases, the nature of the product and current assessment of the science subject to the litigation, and the likelihood of settlement and current state of settlement discussions, if any. We believe that the legal contingency provision that we have established is appropriate based on current factors and circumstances. However, it is possible that other people applying reasonable judgement to the same facts and circumstances could develop a different liability amount. The nature of these matters is highly uncertain and subject to change. As a result, the amount of our liability for certain of these matters could exceed or be less than the amount of our current estimates, depending on the outcome of these matters. | EXCERPTS ON THIS PAGE:
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