Carphone Warehouse 2002 Annual Report Download - page 52

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Notes to the financial statements continued
50 The Carphone Warehouse Group PLC Annual Report 2002
28 Capital commitments
2002 2001
£’000 £’000
Expenditure contracted, but not provided for in the financial statements of the Group 620 4,184
29 Pension arrangements
The Group provides various pension schemes for the benefit of a significant number of its employees:
Defined contribution schemes
The Group operates a number of defined contribution schemes for which the cost for the period was £1.6m (2001 - £1.3m).
Defined benefit schemes
On 5 April 2000 the Group commenced the winding up of a defined benefit scheme. Based on actuarial advice, the assets of the scheme
are anticipated to be sufficient to meet the levels required by the Government’s Minimum Funding Requirements calculations. On
completion of the winding up of the scheme, the Group will retain no obligations in relation to the funding of scheme benefits.
Other schemes
The Group provides pensions to a number of employees through a self-administered scheme, the costs of which are assessed in
accordance with actuarial advice. Contributions to the scheme during the period were £49,000 (2001 - £117,000).
30 Post balance sheet events
On 27 May 2002 the Group exchanged contracts in a sale and leaseback transaction on its London offices. The sale generated cash
proceeds of £36.6m and a profit on disposal, after fees and further spending commitments, of £16.5m.
31 Related party transactions
Papertimes Limited
At 31 March 2001 Roger Taylor held a 40% interest in Papertimes Limited, a company which was entitled to receive 15% of the future value of
certain investments within the Group’s Wireless Internet fund.
Under arrangements approved prior to flotation Roger Taylor would realise such value by the Company acquiring his shares in Papertimes
Limited. When the Group transferred its investments into a new fund in which neither Papertimes Limited or Roger Taylor has an interest, it was
agreed pursuant to such arrangements that the Company would acquire Roger Taylor’s shares in Papertimes Limited.
These shares were acquired on 21 December 2001 for a consideration of 2,238,806 shares in the Company, with a market value of
£3,000,000. Roger Taylor is prohibited from selling such shares until 21 December 2004 except with the permission of the Company. The
acquisition was also further approved by the Remuneration Committee and the Board of Directors of the Company.