2012 Annual Report - Domino's Pizza

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
39. COMMITMENTS FOR EXPENDITURE
39.1 Capital expenditure commitments
2012
$’000
2011
$’000
Plant & Equipment 1,707
39.2 Lease commitments
Finance lease liabilities and non-cancellable operating lease commitments are disclosed in note 27 and 38 to the financial statements.
40. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
40.1 Contingent liabilities
2012
$’000
2011
$’000
Guarantees 10,740 18,258
Guarantees are provided to third party financial institutions in relation to franchisee loans. The amount disclosed as a contingent liability represents
the amounts guaranteed in respect of franchisees that would not, without the guarantee, have been granted the loans. The directors believe that if the
guarantees are ever called on, the Company will be able to recover the amounts paid upon disposal of the stores.
Other
Set out below are details of a claim which, although remote and not material, the Company considers should be disclosed as they are not disclosed
elsewhere. The Company believes that no provision is required as it is not probable that a future sacrifice of future economic benefit will be required or the
amount is not capable of reliable measurement.
There are French legal proceedings by a competitor, Speed Rabbit Pizza (SRP), against subsidiary, Domino’s Pizza France (DPF). SRP alleges that DPF
breached French laws governing payment time limitations and lending, by allowing its franchisees more time than they had under their existing contracts to
pay DPF for goods and services, thereby giving DPF franchisees an unfair competitive advantage. SRP claims significant damages for lost royalty income
from SRP franchisees and harm to SRP’s image but full details have not yet been provided. DPF believes that there is no legal basis for liability or the
damages claimed and will vigorously defend the claim.
41. REMUNERATION OF AUDITORS
41.1 Auditor of the parent entity
Audit or review of the consolidated financial statements 217,540 203,000
217,540 203,000
2012
$’000
2011
$’000
41.2 Other audits
Europe 136,871 150,525
Taxation services 12,909 12,678
149,780 163,203
The auditor of Domino’s Pizza Enterprises Limited is Deloitte Touche Tohmatsu.
42. EVENTS AFTER THE REPORTING PERIOD
On 14 August 2012, the directors declared a final dividend for the financial year ended 1 July 2012 as set out in note 31.
Other than the matters discussed above, there has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the
Consolidated entity, the results of those operations, or the state of affairs of the Consolidated entity, in future financial years.
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ANNUAL REPORT 2012 DOMINO’S PIZZA ENTERPRISES LIMITED