GSK Annual Report 2002

100 GlaxoSmithKline Notes to the financial statements
25 Net debt continued
Secured loans
Loans amounting to £13 million (2001 – £13 million) are secured by charges on fixed and current assets.
2002 2001
Finance lease obligations £m £m
Rental payments due within one year 1 2
Rental payments due between one and two years 2 2
Rental payments due between two and three years 1 1
Rental payments due between three and four years 1 1
Rental payments due between four and five years 1 1
Rental payments due after five years 7 7
Total finance lease obligations 13 14
Financial instruments
Further information is given in Note 32.
26 Commitments
Capital commitments
2002
£m
2001
£m
Contracted for but not provided in the financial statements
Intangible fixed assets 1,410 1,103
Tangible fixed assets 382 298
1,792 1,401
A number of commitments were made in 2002 under licensing and other agreements, principally with elbion AG, Adolor Corporation,
Theravance, Inc. and Unigene Laboratories, Inc. Payments become due if future ‘milestones’ are achieved. As some of these agreements
relate to compounds in the early stages of development, milestone payments will continue for a number of years if the compounds move
successfully through the development process. Generally the closer the product is to marketing approval the greater the possibility of
success.
The Group also has other commitments of £162 million relating to other payments to be made under licences and other alliances,
principally to Exelixis Inc.
2002 2001
Commitments under operating leases to pay rentals for the next year £m £m
Operating leases on land and buildings which expire:
In one year or less 10 5
Between one and five years 47 18
After five years 56 51
113 74
Operating leases on plant, equipment and vehicles which expire:
In one year or less 7 4
Between one and five years 47 27
After five years 1 –
Commitments under operating leases to pay rentals in future years
55 31
2003 168 105
2004 97 89
2005 80 79
2006 59 69
2007 49 59
2008 and thereafter 249 241
702 642