BT 2015 Annual Report Download - page 196

194 BT Group plc
Annual Report 2015
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Financial commitments were as follows:
At 31 March
2015
£m
2014
£m
Capital commitments 507 400
Programme rights commitments 2,512 1,657
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At 31 March 2015 programme rights commitments, mainly relating to football broadcast rights, are those for which the licence period has not
yet started.
Future minimum operating lease payments for the group were as follows:
2015
£m
2014
£m
Payable in the year ending 31 March:
2015 – 396
2016 427 397
2017 401 368
2018 392 365
2019 377 363
2020 365 366
Thereafter 4,562 4,583
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Operating lease commitments were mainly in respect of land and buildings which arose from a sale and operating leaseback transaction in a prior
period. eases have an averae ter of 1 ears 011 1 ears and rentals are fied for an averae of 1 ears 011 1 ears.
Other than as disclosed below, there were no contingent liabilities or guarantees at 31 March 2015 other than those arising in the ordinary course of
the group’s business and on these no material losses are anticipated. The group has insurance cover to certain limits for major risks on property and
major claims in connection with legal liabilities arising in the course of its operations. Otherwise, the group generally carries its own risks.
On 5 February 201  areed definitive terms to acquire EE Limited and its subsidiaries for £12.5bn. Under the terms of the sale and purchase
agreement, if BT were to recommend an alternative transaction and not proceed to completion, Deutsche Telekom and Orange have the right to
terminate the sale and purchase agreement and BT would pay a break fee of £250m, in aggregate, to them.
Under the Broadband Delivery UK programme, grants received by the group may be subject to re-investment or repayment to the customer
depending on the level of take-up.
he roup has provided uarantees relatin to certain leases entered into b elefnica UK iited forerl  UK iited prior to the deerer of
 fro  on 19oveber 001.  plc now part of the elefnica roup has iven  a counter indenit for these uarantees. here
is no exposure in the event of credit default in respect of amounts used to defease future lease obligations. The guarantee lasts until Telefónica UK
iited has dischared all its obliations which is epected to be when the leases end on 0anuar 01.
he roup does not believe that there is an sinle current court action that would have a aterial adverse eect on the financial position or
operations of the roup. urin 011 the areate volue and value of leal actions which the roup is part to reduced.
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The shareholders of BT approved the proposed acquisition of EE on 30 April 2015 and we are now awaiting approval from the Competition and
Markets Authority. Subject to merger clearance, we expect the transaction to coplete before the end of the 011 financial ear.