Barclays 2005 Annual Report Download - page 203

42 Contingent liabilities and commitments (continued)
Assets pledged
Assets are pledged as collateral to secure liabilities under repurchase agreements, securitisations and stock lending agreements or as security
deposits relating to futures, options and exchange memberships. The aggregate amount of secured liabilities is £105,679m (2004: £77,455m).
The following table summarises the nature and carrying amount of the assets pledged as security against these liabilities:
2005 2004
£m £m
Treasury bills and other eligible bills n/a 5,807
Trading portfolio assets 79,648 n/a
Loans and advances to banks 4,480 –
Loans and advances to customers 14,094 4,334
Available for sale investments 26,818 n/a
Debt securities n/a 70,975
Other 55 857
Asset pledged 125,095 81,973
In addition, Barclays has pledged assets as collateral security against contingent liabilities of £38,035m (2004: £30,011m). These assets are
generally pledged to support the performance of a customer to third parties. As the Group will only be required to meet these obligations in the
event of the customer’s default, the cash requirement is expected to be well below the nominal amount of assets pledged.
Operating lease commitments
Commitments payable
Where the Group is the lessee the future minimum lease payment under non-cancellable building operating leases are as follows:
2005 2004
Property Equipment Property Equipment
£m £m £m £m
Less than one year 297 8 237 6
Between one to two years 271 7 213 3
Between two to three years 261 7 199 1
Between three to four years 242 2 190 –
Between four to five years 204 – 176 –
Over five years 1,672 – 1,657 –
Commitments payable 2,947 24 2,672 10
The total of future minimum sublease payments to be received under non-cancellable subleases at the balance sheet date is £246m (2004: £311m).
The Group leases various offices, branches and other premises under non-cancellable operating lease arrangements. The leases have various terms,
escalation and renewal rights. There are no contingent rents payable. The Group also leases equipment under non-cancellable lease arrangements.
43 Legal proceedings
Proceedings, including a class action, have been brought in the United States against a number of defendants, including Barclays, following the
collapse of Enron. In each case the claims are against groups of defendants. Barclays considers that the claims against it are without merit and is
defending them vigorously. The trial of the class action claims relating to Enron is currently scheduled to begin in October 2006. A court-ordered
mediation commenced in September 2003 but no material progress has been made towards a resolution of the litigation, although certain other
defendants have reached settlements. In addition, in respect of investigations relating to Enron, Barclays is continuing to provide information in
response to enquiries by regulatory and governmental authorities in the United States and elsewhere. It is not possible to estimate Barclays
possible loss in relation to these matters, nor the effect that it might have upon operating results in any particular financial period.
Barclays has been in negotiations with the staff of the US Securities and Exchange Commission with respect to a settlement of the Commission’s
investigation of transactions between Barclays and Enron. Barclays has also been in negotiations in the Enron bankruptcy proceedings. Barclays
does not expect that the amount of any settlement with the Commission or in the bankruptcy proceedings would have a significant adverse effect
on its financial position or operating results.
Barclays is engaged in various other litigation proceedings both in the United Kingdom and a number of overseas jurisdictions, including the
United States, involving claims by and against it, which arise in the ordinary course of business. Barclays does not expect the ultimate resolution
of any of the proceedings to which Barclays is party to have a significant adverse effect on the financial position of the Group and Barclays has not
disclosed the contingent liabilities associated with these claims either because they cannot reasonably be estimated or because such disclosure
could be prejudicial to the conduct of the claims.
Barclays PLC
Annual Report 2005 201
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