Barclays 2009 Annual Report Download - page 216

214 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
7 Impairment charges and other credit provisions
2009 2008 2007
£m £m £m
Impairment charges on loans and advances
New and increased impairment allowances 8,111 5,116 2,871
Releases (631) (358) (338)
Recoveries (150) (174) (227)
Impairment charges on loans and advances 7,330 4,584 2,306
Charge in respect of provision for undrawn contractually committed facilities and guarantees provided 28 329 476
Impairment charges on loans and advances and other credit provisions 7,358 4,913 2,782
Impairment charges on reverse repurchase agreements 43 124 –
Impairment on available for sale assets 670 382 13
Impairment charges and other credit provisions 8,071 5,419 2,795
An analysis of the impairment charges by class of financial instrument is included in Note 47.
8 Staff costs
2009 2008 2007
£m £m £m
Salaries and accrued incentive payments 8,081 5,787 6,322
Social security costs 606 444 480
Pension costs – defined contribution plans 224 221 119
Pension costs – defined benefit plans (Note 30) (33) 89 150
Other post-retirement benefits (Note 30) 16 19
Other 1,054 662 531
Staff costs 9,948 7,204 7,611
Included in salaries and incentive payments is £290m (2008: £257m, 2007: £551m) arising from equity settled share-based payments, of which £56m
(2008: £23m, 2007: £60m) is a charge related to option-based schemes and of which £12m (2008: £35m, 2007: £74m) relates to discontinued operations.
Also included is £8m (2008: £3m, 2007: £8m) arising from cash settled share-based payments.
In December 2009, the UK government announced that the Finance Bill 2010 will introduce a bank payroll tax of 50% applicable to discretionary bonuses
over £25,000 awarded to UK bank employees between 9th December 2009 and 5th April 2010. Draft legislation and further guidance on its application has
been published. Based on this, and in accordance with IAS 19 – Employee benefits, the Group has accrued for the estimated tax payable in respect of
employee services provided during the period. For 2009, £190m has been included within Other Staff Costs in respect of 2009 cash awards. A further
provision of £35m has also been included in Other Staff Costs in respect of certain prior year awards being distributed during the tax window, which may fall
within the proposed legislation.
Staff costs above relate to continuing operations only. Total staff costs for the Group (including both continuing and discontinued operations) was
£10,683m (2008: £7,779m, 2007: £8,405m) comprising salaries and accrued incentive payments of £8,595m (2008: £6,273m, 2007: £6,993m), social
security costs of £621m (2008: £464m, 2007: £508m), pension costs of £217m (2008: £326m, 2007: £291m), other post-retirement benefits of £19m
(2008: £1m, 2007: £10m) and other staff costs of £1,231m (2008: £715m, 2007: £603m).
The total average number of persons employed by the Group (including both continuing and discontinued operations) during the year was 153,800
(2008: 151,500).
9 Administration and general expenses
2009 2008 2007
£m £m £m
Administrative expenses 4,889 4,791 3,691
Impairment charges/(releases)
– property and equipment (Note 23) 34 33 2
– intangible assets (Note 22) 27 (3) 14
– goodwill (Note 21) 1112 –
Operating lease rentals 639 520 414
Gain on property disposals (29) (148) (267)
Administration and general expenses 5,561 5,305 3,854