2016_Halma_ARA_160610_2

Notes to the Accounts continued
27 COMMITMENTS
Capital commitments
Capital expenditure authorised and contracted at 2 April 2016 but not recognised in these accounts amounts to £2,776,000
(2015: £5,312,000).
Commitments under operating leases
The Group has entered into commercial leases on properties and other equipment. The former expire between April 2016 and
November 2028 and the latter between April 2016 and July 2022. Only certain property agreements contain an option for renewal
at rental prices based on market prices at the time of exercise.
Total payments under non-cancellable operating leases will be made as follows:
Land and buildings
Other
2 April
2016
£000
28 March
2015
£000
2 April
2016
£000
28 March
2015
£000
Within one year 9,095 8,611 396 429
Within two to five years 19,448 19,495 629 503
After five years 8,377 6,151 – –
36,920 34,257 1,025 932
28 RETIREMENT BENEFITS
Group companies operate both defined benefit and defined contribution pension plans. The Halma Group Pension Plan and the Apollo
Pension and Life Assurance Plan (both UK) have defined benefit sections with assets held in separate trustee administered funds. Both
of these sections had already closed to new entrants in 2002/03 and closed to future benefit accruals for 2014/15. From that date,
the former defined benefit members joined the existing defined contribution section within the Halma Group Pension Plan.
Overseas subsidiaries have adopted mainly defined contribution plans, with the exception of three small defined benefit plans
in the Swiss entities of Medicel AG, Robutec GmbH and Robutec AG (previously Plasticspritzerei AG).
Total pension costs of £8,213,000 (2015: £7,117,000) recognised in employee costs (note 7), comprise £7,901,000 (2015: £5,616,000)
related to defined contribution plans and £312,000 (2015: £1,501,000) related to defined benefit plans.
Defined contribution plans
The amount charged to the Consolidated Income Statement in respect of defined contribution plans was £7,901,000 (2015:
£5,616,000) and represents contributions payable to these plans by the Group at rates specified in the rules of the plans. The assets
of the plans are held separately from those of the Group in funds under the control of trustees. Where there are employees who leave
the plans prior to vesting fully in the contributions, the ancillary contributions payable by the Group may be reduced by the amount
of forfeited contributions.
Defined benefit plans
The Group’s significant defined benefit plans are for qualifying employees of its UK subsidiaries. Under the plans, the employees
are entitled to retirement benefits of up to two thirds of final pensionable salary on attainment of a retirement age of 60, for members
of the Executive Board, and 65, for all other qualifying employees. No other post-retirement benefits are provided. The plans are
funded plans.
The most recent actuarial valuation of the Halma Group Pension Plan assets and the present value of the defined benefit obligation was
carried out at 1 December 2014 by Mr Adrian Gibbons, Fellow of the Institute and Faculty of Actuaries. The present value of the defined
benefit obligation, the related current service cost and the past service cost were measured using the projected unit credit method. The
projected unit credit method is an accrued benefits valuation method in which the plan liabilities make allowance for projected earnings.
Mr Gibbons also carried out the 1 April 2015 actuarial valuation of the Apollo Pension and Life Assurance Plan on the same basis.
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Halma plc Annual Report and Accounts 2016