Experian 2014 Annual Report Download - page 165

Financial statements • Notes to the Group financial statements 161
44. Capital commitments
2014
US$m
2013
US$m
Capital expenditure for which contracts have been placed:
Intangible assets 83 106
Property, plant and equipment 13 13
96 119
Capital commitments at 31 March 2014 include commitments of US$59m not expected to be incurred before 31 March 2015. Capital
commitments as at 31 March 2013 included commitments of US$77m not then expected to be incurred before 31 March 2014.
45. 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.
The Group has continued to receive a significant number of claims in Brazil throughout the year, primarily in three states, relating
to the disclosure and use of credit scores. The cases are mainly individual small claims and also include a small number of class
actions. Similar proceedings have been commenced against other suppliers of credit scores in Brazil. The Superior Tribunal of
Justice (‘STJ’), the highest court in Brazil for such cases, has issued a stay on all proceedings relating to these claims while it
determines the principal legal issues involved. The Group does not believe the claims have merit under Brazilian law and will
continue to vigorously defend them. Accordingly, no provision has been made for the ultimate outcome. Given the number of
possible outcomes and the different potential courses of action which may be available to the Group, it cannot reliably quantify
the possible exposure.
46. Related party transactions
(a) Subsidiary undertakings and associates
Significant subsidiary undertakings at 31 March 2014 are shown in note O to the parent company financial statements. There were
no individually material associates during the current or prior year and accordingly no related party transactions are reported with
such entities.
(b) Remuneration of key management personnel
2014
US$m
2013
US$m
Salaries and short-term employee benefits 7 9
Retirement benefits 1 1
Share incentive plans 12 15
20 25
Key management personnel comprises the Board of directors and their remuneration is charged to labour costs. Further details of
directors’ remuneration are given in the audited parts of the Report on directors’ remuneration. 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 prior year.
47. Events occurring after the end of the reporting period
Details of the second interim dividend announced since the end of the reporting period are given in note 19.