BOC Report and accounts 2005 - Alle jaarverslagen

Notes to the financial statements 125
22. Provisions for liabilities and charges continued
Incentive and other employee provisions include long-term share incentive awards and deferred compensation plans. Note 7 contains further details of
the long-term share incentive units.
Provision for uninsured losses covers third party liabilities or claims. Due to the time frame that is often involved in such claims, a significant part of this
provision is subject to actuarial valuation.Where this is not appropriate, other external assessments are used.
Environmental provisions have been set aside to cover the costs of remediation for a number of hazardous waste sites.The costs are expected to be
incurred between 2006 and 2030. Due to the period over which this expenditure is likely to be incurred, the provision has been discounted at a rate of
four per cent.The effect of discounting is £5 million. Management expects that payments will be approximately £7 million in 2006, approximately
£3 million each year for the next four years and £12 million in total thereafter. Management uses its judgement and experience to make an appropriate
provision. Management believes that there is no reasonable possibility of a loss materially in excess of the amounts provided.
During the year, the provision for de-commissioning costs was reviewed.As a result of revising previous estimates, an amount of £20.2 million was
recognised for future obligations with a corresponding increase in the carrying value of tangible fixed assets. Due to the period over which this expenditure
is likely to be incurred, between 2006 and 2054, and the different regions in which it will be incurred, the provision has been discounted at rates of
between four and six per cent.The effect of discounting is £32 million.The timing of actual expenditure will vary depending on contractual supply
arrangements with customers.
Further information on deferred tax is disclosed in note 4.
23. Share capital
Number of shares
2005 2004 2005 2004
i) Analysis at 30 September million million £ million £ million
Equity capital:
Issued capital – Ordinary shares of 25p each, called up and fully paid 502.5 498.8 125.6 124.7
Unissued capital – unclassified shares of 25p each 87.5 91.2 21.9 22.8
Authorised 147.5 147.5
ii) Share issues
Number
million
Issues of Ordinary shares of 25p each during the year were:
Under the savings related share option scheme 0.7
Under the senior executives share option scheme 3.0
24. Reserves
a) Group
Share
Joint
premium Revaluation Profit and Pensions’ ventures’ Associates’ Own
account reserves loss account reserves reserves reserves shares Total
£ million £ million £ million £ million £ million £ million £ million £ million
At 1 October 2004 374.9 30.1 1,181.5 (253.6) 238.0 26.0 (46.3) 1,550.6
Total recognised gains and losses for the year – (3.8) 419.9 – 14.7 6.3 – 437.1
Transfers in relation to pensions – – (33.1) 31.9 1.2 – – –
Reversal of goodwill on disposal of
a business – – 1.0 – – – – 1.0
Consideration paid for the purchase of own
shares held in an ESOP trust – – – – – – (8.2) (8.2)
Consideration received for the sale of own
shares held in an ESOP trust – – – – – – 4.0 4.0
Credit in respect of employee share schemes – – 4.3 – – – – 4.3
Dividends – – (204.1) – – – – (204.1)
Premium on share issues (net) 31.7 – – – – – – 31.7
At 30 September 2005 406.6 26.3 1,369.5 (221.7) 253.9 32.3 (50.5) 1,816.4
i) The undistributed profits of Group undertakings may be liable to overseas and/or UK tax (after allowing for double tax relief) if distributed as dividends.
There are no material exchange control restrictions on the remittance of funds to the UK.
ii) Goodwill written off against reserves in respect of continuing businesses acquired prior to 30 September 1998 amounts to £160.4 million
(2004: £154.0 million).
iii) In accordance with the Group’s accounting policy, exchange losses (net of gains) on net borrowings charged to reserves in the year amounted to
£5.8 million (2004: £59.7 million gain).
iv) There are no non-equity shareholders’ interests in the share capital and reserves of the Group.
v) The amount of the pensions’ reserves is equivalent to the net pensions liabilities (see note 8) adjusted for current tax of £42.1 million (2004:
£22.0 million, 2003: £nil).
vi) Own shares
At 30 September 2005, 5.3 million shares in the company were held pending the exercise of share options. Based on the company’s share price at
30 September 2005 of 1153p, the market value of own shares held was £61.4 million.This compares with the acquisition cost above.The amount paid
for the shares reduces profit available for distribution.
Information on share option schemes appears in the report on remuneration and in notes 7 and 23.