This excerpt taken from the SYT 20-F filed Mar 1, 2006.
22. Restructuring provisions
Restructuring provisions and costs relate to business changes, which, in the opinion of management, will have a material effect on the nature and focus of Syngentas operations. For 2003 they relate mainly to Syngentas business integration restructuring plans, embarked upon following the formation of Syngenta in November 2000. Such plans involve termination of employees, integration of systems and the closure of duplicate head office, research and development and manufacturing facilities. For 2004 they relate to the operational efficiency program announced in February 2004 and to the later stages of the Syngenta business integration. For 2005 they relate mainly to the operational efficiency program and to the integration of the Seeds businesses purchased in 2004. Further details are provided in Note 7.
This excerpt taken from the SYT 20-F filed Mar 16, 2005.
A provision for restructuring is recognized when Syngenta has approved a detailed and formal restructuring plan and the restructuring has either commenced or been announced publicly.
Provision for severance payments and related employment costs is made in full when employees are given details of the termination benefits which will apply to individual employees should their contracts be terminated as a direct result of the restructuring plan. Costs relating to ongoing activities, such as relocation, training and information systems costs, are recognized only when incurred.