Experian 2013 Annual Report Download - page 159
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Business review Business overview Governance Financial statements
47. Disposals (continued)
(ii) Cash outflow from disposal
US$m
Proceeds received in cash 2
Transaction costs paid (10)
Net cash outflow (8)
As indicated in note 17, the comparison shopping and lead generation businesses were sold in October 2012. Further consideration is available
to Experian if defined profit targets are achieved over time and in certain other circumstances, up to a fully inclusive total of US$110m. The assets
and liabilities of these businesses at 31 March 2012 were classified as held for sale and details are provided in note 17.
(b) Other disposals
There was a loss of US$12m on a number of small disposals during the year with an associated cash inflow of US$5m.
48. Operating lease commitments – minimum lease payments
2013
US$m
2012
US$m
Commitments under non-cancellable operating leases are payable:
In less than one year 73 63
Between one and five years 149 138
In more than five years 51 67
273 268
The Group leases offices and technology under non-cancellable operating lease agreements with varying terms, escalation clauses and
renewal rights and the charge for the year was US$71m (2012: US$69m).
49. Capital commitments
2013
US$m
2012
US$m
Capital expenditure for which contracts have been placed:
Intangible assets 106 128
Property, plant and equipment 13 34
119 162
Capital commitments at 31 March 2013 include commitments of US$77m not expected to be incurred before 31 March 2014. Capital
commitments as at 31 March 2012 included commitments of US$104m not then expected to be incurred before 31 March 2013.
50. Contingencies
There are a number of pending and threatened litigation claims involving the Group in North America and Latin America which are being
vigorously defended. The directors do not believe that the outcome of any such pending or threatened litigation will have a materially adverse
effect on the Group’s financial position. However, as is inherent in legal proceedings, there is a risk of outcomes that are unfavourable to the
Group. In the case of unfavourable outcomes the Group would benefit from applicable insurance recoveries.
As previously indicated, Serasa has been advised that the Brazilian tax authorities are challenging the deduction for tax purposes of goodwill
amortisation arising from the acquisition of Serasa in 2007. Experian believes that the possibility of this resulting in a liability to the Group is
remote, on the basis of the advice of external legal counsel and other factors in respect of the claim.