Barclays 2006 Annual Report Download - page 205

Barclays PLC
Annual Report 2006 201
Financial statements
3
32 Subordinated liabilities (continued)
The 7.4% Subordinated Notes 2009 (the ‘7.4% Notes’) issued by the Bank have been registered under the US Securities Act of 1933. All other issues
of dated loan capital by the Bank, Barclays Spain, BBG, BBB, Barclays Zambia and Absa, which were made in non-US markets, have not been so
registered. With respect to the 7.4% Notes, the Bank is not obliged to make (i) a payment of interest on any interest payment date unless a dividend
is paid on any class of share capital and (ii) a payment of principal until six months after the respective maturity date with respect to such Notes.
Repayment terms
Unless otherwise indicated, the Group’s dated loan capital outstanding at 31st December 2006 is redeemable only on maturity, subject in particular
cases, to provisions allowing an early redemption in the event of certain changes in tax law or, in the case of BBB and Barclays Zambia to certain
changes in legislation or regulations.
Any repayments prior to maturity require in the case of the Bank, the prior approval of the FSA, in the case of BBB, the prior approval of the Bank of
Botswana, in the case of Barclays Zambia, the prior approval of the Bank of Zambia, and in the case of Absa, the prior approval of the South African
Registrar of Banks.
There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.
33 Provisions
Undrawn
contractually
committed
facilities
Redundancy and
Onerous and re- guarantees Sundry
contracts structuring provided provisions Total
£m £m £m £m £m
At 1st January 2006 79 74 55 309 517
Exchange (2) 2 – (16) (16)
Additions 45 180 35 159 419
Amounts used (53) (133) (9) (94) (289)
Unused amounts reversed (2) (21) (35) (115) (173)
Amortisation of discount 4–––4
At 31st December 2006 71 102 46 243 462
At 1st January 2005 39 97 55 212 403
Acquisitions and disposals of subsidiaries – – – 51 51
Exchange –––77
Additions 63 196 20 170 449
Amounts used (27) (178) – (104) (309)
Unused amounts reversed – (41) (20) (27) (88)
Amortisation of discount 4 – – – 4
At 31st December 2005 79 74 55 309 517
Provisions expected to be recovered or settled within no more than 12 months after 31st December 2006 were £388m (2005: £360m).
Sundry provisions are made with respect to commission clawbacks, warranties and litigation claims.
The Group has a restructuring programme, largely focused on activities within the UK, which involves the reshaping of the Group’s operations
through the centralisation of core processes, application of new technologies, and reduction of workforce. It is anticipated that the majority of the
remaining provision related to this programme will be utilised in 2007.
Redundancy and restructuring provisions are reported within operating expenses in the income statements.