Thorn-EMI 1995 Annual Report

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NoteJ to the accounts 26. tinancial commitments Capital expenditure : Contracted Authorised but not contracted 73.5 18.9 34.5 40.6 75.1 The Group has commitments, which are largely performance related, to pay advances to artists and repertoire owners amounting to approximately €351.8m at 31 March 1995 (1994: f335.9m). Annual commitments under operating leases at 3l March were as follows: Land and buildings: Expiring in the first year Expiring in the second to fifth years inclusive Expiring after the frfth year 14.6 60.1 81.2 13.7 45.3 68.4 Plant, equipment and vehicles: Expiring in the fust year Expiring in the second to frfth years inclusive Expiring after the frfth year 7.6 162 1.0 22.3 12.6 24.8 34.9 Commitments had not been entered into in respect of the Dillons stores at 31 March 1995 and consequently have not been included in the table above. However, since the balance sheet date, contracts have been signed with an annual commitment of!9.1m for land and buildings (fl.2m expiring in the second to fifth years and !7.9m expiring after the fifth year). 27. Contingent liabilities (i) Litigation Legal proceedings continue in the class action law suits referred to in the 1994 Annual Report and Accounts. ln addition, proceedings were commenced in respect of the following further class actions in the course of the year. THORN Americas, Inc. and other members of the Group are defendants in a class action alle1rn1, inter a/ra, that Rent-A-Center's Rental-Purchase Agreements are credit sales and do not comply with the requirements of NewJersey law. The amount claimed in damages is unspecified. THORN Americas, Inc. and other members of the Group are defendants in a class action alleging, izler a/1, that Rent-A-Center's Rental-Purchase Agreements violate the Visconsin Consumer Act and various federal laws. The amount claimed in damages is unspecified and the class action has not yet been certified by the court. THORN Americas, Inc. is also defendant in a class action alleging, inter alia, that Rent-A-Center's RentalPurchase Agreements violate the Pennsylvania Goods and Services Installment Sales Act. The amount claimed in damages is unspecified and the class action has not yet been certified by the court. These claims are being vigorously defended and their outcome is not expected to affect Rent-A-Center's business outside these states.
27. Contlngent liabilities continued Save as disclosed, the Directors are not aware ofany legal or arbitration proceedings pending or threatened against any member of the THORN EMI Group which may have any liability significantly in excess of provisions in the accounts. (ii) Guarantees, bills discounted and other contingent liabilities (excluding litigation referred to in (i) above) total f62.8m (1994: f79.9m) for the Group, ofwhich f41.9m (1994: nil) relate to certain contracts entered into by former Group companies. (iii) Pursuant to the provisions ofthe Irish Companies (Amendment) Act 1986, the Company has guaranteed the liabilities of its Irish subsidiaries, thus exempting those companies from the requirement to file their annual accounts in Ireland. 28. Pension arrangements THORN EMI operates a number of pension schemes throughout the world. The main scheme, which covers employees in the UK, is the THoRN EMI pension Fund. staffengaged outside the uK are covered by local arrangements, which in the case of the Group schemes are largely of the defrned contribution type. With the principal exception of the EMI Electrola pension plan, the assets of rHORN EMI's pension schemes are held in separate trustee administered funds. The THORN EMI Pension Fund is based in the UK and is of the defined benefit type. The Fund is open to permanent staffover the age of18 employed by the Company and certain subsidiaries in the UK. Benefits provided by the Fund are based on frnal pensionable pay. Pensions payable from the Fund are guaranteed to increase by 5 per cent per annum, or by the increase in the cost ofliving ifless. Members contribute to the Fund at the rate of4 per cent of pensionable pay. The latest actuarial valuation of the THORN EMI Pension Fund was made by a qualifred actuary at 31 March 1994 using the projected unit method. At that date, the market value of the assets of the THORN EMI Pension Fund amounted to f1,410m. The actuarial value of the assets was sufficient to cover 121 per cent of the value of the benefits that had accrued to the members, after allowing for assumed increases in earnings and for improvements to the benefits of the Fund implemented with effect from I January 1995. Part of the surplus disclosed by the 1994 valuation was allocated towards the reduction ofemployer contributions below the long-term rate, the balance being carried forward as a reserve in the Fund. With effect lrom 1 April 1988 employer expense in respect ofthe Fund has been calculated in accordance with SSAP 24 - Accountingfor Pension Corls. On the basis of actuarial advice, it is calculated that employer expense would represent a credit to the profit and loss account on full application of SSAP 24 principles. However, for reasons of conservatism, such expense has been taken as nil for the years ended 31 March 1995 and 31 March 1994. The long-term annual growth rate assumptions used for calculating employer expense under SSAP 24 are shown below: Crowth relative to investment return Pay increases Pension increases Dividend increases (2.s\ok (5.0)o/o (4.5)o/o Employer contributions of f11.8m (1994: !10.8m) were charged to the proflt and loss account. These contributions all related to ovetseas schemes and were determined in accordance with local practice.
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accounts
Page 3 and 4:
Operating profit
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ETHoRN EMt Annual General Meeting T
Page 7 and 8:
It is the Remuneration Committee's
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(d) On exercise of options the Comp
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7. Ordinary Resolution THAT the Dir
Page 14 and 15:
Chairman's statement The year was o
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Chairman's statement economy and to
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Financial review Simon Duffy Group
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Financial review Other exceptional
Page 22 and 23: EMI a repeat performance Country su
Page 24 and 25: strong releases Steven Crlftls Chap
Page 26 and 27: increasing Pace of THORN achieved
Page 28 and 29: Reshaping business NewZealand was e
Page 30 and 31: HMV customer-driven performance An
Page 32 and 33: lnvestih$ in tomorrow's world...
Page 34 and 35: A ta rg eted programme of community
Page 36 and 37: Prog ress towa rds env:ronmental im
Page 38 and 39: controlling key impacts CO, emifted
Page 40 and 41: Board of Directors Sir Colin Southg
Page 42 and 43: Directors'Report for the year ended
Page 44 and 45: Directors' Report The internal cont
Page 46 and 47: Auditors'report Report of the Audit
Page 48 and 49: Accounting policies Depreciation of
Page 50 and 51: Consolidated profit and loss accoun
Page 52 and 53: Group Fixed arsetr Music publis
Page 54 and 55: Statement of total recognised galns
Page 56 and 57: Notes to the accountr 2. Analysis o
Page 58 and 59: Notes to the accounts 8. Exceptlona
Page 60 and 61: Noter to the accounts I l.Tanglble
Page 62 and 63: Notes to the accounts 12, Flxed ass
Page 64 and 65: Notes to the account3 15. lnvestmen
Page 66 and 67: Noter to the accounts 16. Borrowing
Page 68 and 69: Notes to the accounts of changer i
Page 70 and 71: Notes to the a(counts 23.5hare capi
Page 74 and 75: Notes to the accounts 29, Dispotal
Page 76 and 77: Notes to the a(counts 3O. Purchase
Page 78 and 79: Notes to the accounts 32. Directors
Page 84 and 85: Notes to the a
Page 86 and 87: Notes to the a(counts 32, Directors
Page 88 and 89: Five year summary for the years to
Page 90 and 91: lnvestor information Financial cale
Page 92 and 93: Tlte nz,er and bus;flut otnlaieu pa
Page 95 and 96: "The British music scene is enioyin
Page 97 and 98: From {\ "Alternative music is quick
Page 99: iii0 . ,'.' H'] .I . ar
Page 103 and 104: develop a unique catalogue of recor
Page 105: thc,rcore,rudielceorlttr,rctrl,rrge
Page 109 and 110: to ownership opportunity. The intro
Page 111 and 112: to idcntif,v and exploit synerg-r;
Page 113 and 114: Curtomer 5atisfa
Page 115: Street, HMV's UK 1-lagship store re
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Thorn-EMI 1995 Annual Report

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