QBE European Operations plc

QBE European Operations plc Annual report 2011
75
17 Other debtors including taxation
Group
Company
2011 2010 2011 2010
£000 £000 £000 £’000
Corporation tax 179,261 84,085 89,650 23,778
Amounts owed by Group undertakings 2,370,272 1,945,946 518,624 194,539
Deferred taxation (note 22) – – 30,728 –
Other 96,904 90,412 880 1,296
2,646,437 2,120,443 639,882 219,613
Two subsidiary undertakings have made long-term loans to a fellow QBE company, QBE Investments (North America) Inc. The first loan amounts to
US$1,840,027,537 and was made on 5 June 2009. This loan is split into 4 Tranches: A: US$500,000,000; B: US$500,000,000; C: US$500,000,000;
D: US$340,027,537. QBE Investments (North America) Inc pays interest on the Tranche Loans at the base rate of US dollar 6 Month LIBOR plus
5.29% for Tranche A, 5.25% for Tranche B, 5.43% for Tranche C and 5.58% for Tranche D. The actual repayment of interest takes place every
31 May and 30 November, with the first payment made on 30 November 2009. The total US$1,840,027,537 is to be repaid by 31 May 2019.
The second loan amounts to US$286,000,000 and was made on 30 November 2009. QBE Investments (North America) Inc pays interest on this loan
which is calculated using US dollar 6 Month LIBOR plus 4.25%. Interest payment dates and LIBOR reset dates are identical to the first loan with the
first payment made on 31 May 2010. The US$286,000,000 is to be repaid on 30 November 2019.
The third loan amounts to US$400,000,000 and was made on 30 June 2010. QBE Investments (North America) Inc pays interest on this loan which
is calculated using US dollar 6 Month LIBOR plus 3.85%. Interest payment dates and LIBOR reset dates are identical to the first loan with the first
payment made on 30 November 2010. The US$400,000,000 is to be repaid on 31 May 2020.
The fourth loan amounts to US$200,000,000 and was made on 16 May 2011. QBE Investments (North America) Inc pays interest on this loan which
is calculated using US dollar 6 Month LIBOR plus 2.25%. Interest payment dates and LIBOR reset dates are identical to the first loan with the first
payment made on 31 May 2011. The US$200,000,000 is to be repaid on 15 May 2021.
The carrying value of these loans is deemed to be the fair value at 31 December 2011.
18 Tangible assets – Group
Assets in
Owner
Motor Computer Office the course of Leasehold occupied
vehicles equipment equipment construction improvements property Total
£000 £000 £000 £000 £000 £000 £000
Cost or revaluation
At 1 January 2011 2,312 97,083 17,369 21,821 19,042 7,272 164,899
Exchange adjustments (49) (119) (85) – (119) (430) (802)
Transfer – 14,728 – (14,728) – – –
Revaluation – – – – – (113) (113)
Additions 316 1,686 2,320 38,631 352 64 56,169
Disposals (674) (3,152) (882) (3,370) (435) (110) (21,423)
At 31 December 2011 1,905 110,226 18,722 42,354 18,840 6,683 198,730
Cumulative depreciation
At 1 January 2011 (1,114) (65,037) (11,576) – (12,551) – (90,278)
Exchange adjustments – 74 12 – 21 – 107
Charge for year (373) (21,029) (2,271) – (2,158) – (25,831)
Disposals 444 1,142 812 – 413 – 2,811
At 31 December 2011 (1,043) (84,850) (13,023) – (14,275) – (113,191)
Net book value
at 31 December 2011 862 25,376 5,699 42,354 4,565 6,683 85,539
Net book value
at 31 December 2010 1,198 32,046 5,793 21,821 6,491 7,272 74,621
Financial statements