BT 2016 Annual Report Download - page 103

108 BT Group plc
Annual Report 2016
A 16‑year deficit contribution plan was agreed reecting BT’s
long‑term and sustainable cash ow generation. Under this plan,
we made deficit payments of £875m in March 2015, £625m
in April 2015 and £250m in March 2016. A further payment of
£250m will be made in 2016/17, bringing the total for the three
years to 31 March 2017 to £2.0bn.
Accounting position under IAS 19
The accounting deficit, net of tax, fell over the year from £6.1bn
to £5.2bn. The movements in the deficit for the group’s defined
benefit plans are shown below.
M
ovements in IAS 19 decit
Acquisitions Income statement Cash contributions Actuarial movements
Actuarial gains on liabilities
Actuarial losses on assets
Deficit at 31 March 2016
Deficit at 1 April 2015
Acquisitions
(EE Pension Scheme)
Service cost
Net finance cost
Regular contributions
Deficit contributions
Defi
cit
(£bn)
Net of deferred tax Deferred tax asset
(7.5)
(7.0)
(8.5)
(8.0)
(6.5)
(6.0)
(5.5)
(5.0)
(4.5)
(4.0)
(1.5)(6.1)
(1.2) (5.2)
(0.1)
(0.3)
(0.2)
0.2
0.9
1.1
(0.4)
Actuarial losses on plan assets for 2015/16 reect actual
investment returns in the BTPS over the year of around 2% which
were below the IAS 19 discount rate of 3.25%. The return reects
strong performance for property, currency gains and broadly at
returns on other asset classes.
Actuarial gains on the liabilities primarily reect lower than
expected inationary increases in pension payments that will be
made in 2016, and other scheme and membership experience
following the use of updated membership data.
Contractual obligations and commitments
We’ve shown in the table below our principal contractual financial
obligations and commitments at 31 March 2016. You can see
further details on these items in notes 20, 25 and 30 to the
consolidated financial statements; note 30 includes details relating
to our financial commitments and contingent liabilities.
Payments due by period
Total
£m
Less
than
1 year
£m
Between
1 and
3 years
£m
Between
3 and
5 years
£m
More
than 5
years
£m
Loans and other
borrowingsa13,850 3,229b3,092 2,279 5,250
Finance lease obligations 240 828 25 179
Operating lease obligations 7,588 669 1,233 1,045 4,641
Capital commitments 922837 80 2 3
Other commitments 481 191 260 30 –
Device purchase
commitments 260 260 –––
Programme rights
commitments 2,026 744 1,145 137 –
Pension deficit obligations 7,903 271 1,420 1,436 4,776
Total 33,270 6,209 7,258 4,954 14,849
a Excludes fair value adjustments.
b Includes £178m of accrued interest due within less than one year.
At 31 March 2016 our cash, cash equivalents and current asset
investments were £3,415m. We have an unused committed
borrowing facility of £1.5bn. We expect that these resources and
our future cash generation will allow us to settle our obligations as
they fall due.