Experian 2008 Annual Report Download - page 132

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130 Experian Annual Report 2008
36. Operating lease commitments – minimum lease payments
2008 2007
US$m US$m
Commitments under non-cancellable operating leases expiring in:
Less than one year 74 65
Between one and five years 149 150
More than five years 59 64
282 279
The Group leases offices and technology under non-cancellable operating lease agreements. These leases have varying
terms, escalation clauses and renewal rights.
37. Capital commitments
2008 2007
US$m US$m
Capital expenditure for which contracts have been placed:
Property, plant and equipment 4 11
Intangible assets 11 –
15 11
38. Contingencies
In North America and Latin America, there are a number of pending and threatened litigation claims involving Experian which are
being vigorously defended. The directors do not believe that the outcome of any such pending or threatened litigation will have a
material adverse effect on the Group’s financial position. However, as is inherent in legal proceedings, there is a risk of outcomes
unfavourable to the Group. In the case of unfavourable outcomes the Group would benefit from applicable insurance recoveries.
39. Related parties
The ultimate parent company of the Group is Experian Group Limited which is incorporated in Jersey. The principal
subsidiary and associate undertakings at 31 March 2008 are shown in note Q to the financial statements of that company.
The following transactions were carried out with related parties of Experian:
Associates
During the year the Group made net sales and recharges, under normal commercial terms and conditions that would be
available to third parties, to FARES and its associate First Advantage Corporation of US$28m (2007: US$29m). Amounts
receivable from FARES are shown within note 21. These amounts outstanding are unsecured and will be settled in cash.
No guarantees have been given or received in the year in connection with the Group’s trading with these entities.
No provisions have been made for doubtful debts in respect of the amounts owed by associates.
Subsidiaries
Transactions between the ultimate parent company and its subsidiaries, and between subsidiaries, have been eliminated
on consolidation.
Home Retail Group
Home Retail Group is no longer a related party of the Group and there has been no charge in the year (2007: US$0.3m) in
respect of services provided under the terms of the demerger agreement. At 31 March 2007, there was an amount owed by the
Group to Home Retail Group of US$20m in respect of corporation tax liabilities at demerger and this balance was settled
during the year ended 31 March 2008. Other transactions with Home Retail Group are made on normal commercial terms and
conditions available to third parties.
Key management personnel
Remuneration of key management personnel is disclosed in note 8. Other than remuneration, there were no material
transactions or balances between the Group and its key management personnel or members of their close families in either
the current or previous year.
Other related parties
There were no other material related party transactions. Services are usually negotiated with related parties on a cost-plus
basis and goods are bought on the basis of the price lists in force with non-related parties.
Notes to the Group financial statements continued