BT 1999 Annual Report Download - page 86

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NOTES TO THE FINANCIAL STATEMENTS
85
Group Company
))))))))))!!!!0051111!!!0051111
1999 1998 1999 1998
27. Financial commitments and contingent liabilities £m £m £m £m
))))))))))!!!!0051111!!!0051111
Contracts placed for capital expenditure not provided in the accounts 1,109 1,047 1,008 965
00000000001!!!0051111!!!0051111
Operating lease payments payable within one year of the
balance sheet date were in respect of leases expiring:
Within one year 3913
Between one and five years 29 39 19 21
After five years 116 135 93 94
00000000001!!!0051111!!!0051111
Total payable within one year 148 183 113 118
00000000001!!!0051111!!!0051111
Future minimum operating lease payments for the group at 31 March 1999 were as follows:
1999
Payable in the year ending 31 March: £m
))))))))))))))%!!!!!!!0111
2000 148
2001 137
2002 130
2003 125
2004 120
Thereafter 1,238
0000000000000511101!!!0111
Total future minimum operating lease payments 1,898
0000000000000511101!!!0111
Operating lease commitments were mainly in respect of leases of land and buildings.
At 31 March 1999, there were no contingent liabilities or guarantees 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.
The company has guaranteed certain borrowings of subsidiary undertakings amounting to £979m (1998 – £1,330m).
In July 1998, the company and AT&T announced the formation of a global venture for the two companies’ trans-border
telecommunications activities. This venture will be jointly owned. The company will be transferring to it the majority of its cross-
border international networks, its international traffic, its business with selected multi-national customers and its international
products for business customers, as well as Concert. The formation of the venture is subject to regulatory clearances which are
expected to be obtained later in 1999.
Satellite consortia, in which the company has participating interests, are organisations without limited liability. At 31 March
1999, the company’s share of the aggregate borrowings of these consortia amounted to £144m (1998 – £188m).
Outstanding at 31 March 1999 and 1998 were warrants entitling the holders to subscribe in 1999 for US dollar 8.765% guaranteed
bonds at par, repayable in 2009, to be issued by the group with a total principal value equivalent to £124m (1998 – £119m).
The company does not believe there are any pending legal proceedings which would have a material adverse effect on the
financial position or results of operations of the group.
During the year ended 31 March 1999, all material outstanding US class actions brought by MCI shareholders arising out of the
then-proposed merger of the company with MCI and involving claims made against the company and directors of the company
who served as directors of MCI were dismissed.