BT 2002 Annual Report Download - page 114

30. Financial commitments, contingent liabilities and subsequent events 2002
£m
2001
£m
Contracts placed for capital expenditure not provided in the accounts 740 1,231
Operating lease payments payable within one year of the balance sheet date were in respect of
leases expiring:
Within one year 13 7
Between one and ®ve years 11 32
After ®ve years 314 110
Total payable within one year 338 149
Future minimum operating lease payments for the group at 31 March 2002 were as follows: 2002
£m
Payable in the year ending 31 March:
2003 338
2004 342
2005 346
2006 352
2007 355
Thereafter 9,923
Total future minimum operating lease payments 11,656
Operating lease commitments were mainly in respect of leases of land and buildings.
At 31 March 2002, other than disclosed below 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 group has provided guarantees relating to certain leases entered into by O2 UK Limited prior to its demerger with
mmO2 on 19 November 2001, amounting to US$91 million (£64 million) as at 31 March 2002. mmO2 plc has given BT a
counterindemnity for these guarantees.
The company does not believe there are any pending legal proceedings which would have a material adverse effect on
the ®nancial position or results of operations of the group.
Subsequent events
On 1 April 2002, the Concert global joint venture was unwound with the businesses, customer accounts and networks
being returned to the two parent companies, with BT and AT&T each taking ownership of substantially those parts
of Concert originally contributed by them. Some 2,300 people have joined BT on completion. The working capital
and other liabilities of Concert on completion were divided equally between BT and AT&T, with the exception that BT
receives an additional US$400 million re¯ecting the allocation of the businesses. Of this, US$50 million was received
before 31 March 2002. US$161 million has subsequently been received and the balance is expected to be received in
Autumn 2002.
On completion BT ceased to have any interest in AT&T Canada, and was released from its future expenditure
commitment associated with AT&T Canada.
The pro®t and loss account re¯ects a charge of £253 million for the estimated Concert unwind costs.
Notes to the financial statements
BT Group Annual Report and Form 20-F 2002 113