Punch Taverns plc 2011 Annual Report

Punch Taverns plc
Annual Report and Financial Statements 2011
97
29 Pensions and other post-retirement benefits continued
The assets in the scheme and the expected rate of return were:
Long-term
rate of return
expected at
20 August
2011
Value at
20 August
2011
£m
Long-term
rate of return
expected at
21 August
2010
Value at
21 August
2010
£m
Equities – – 7.75% 102.1
Government bonds – – 4.00% 58.2
Corporate bonds – – 5.00% 60.6
Property – – 7.00% 20.7
Other – – 1.50% 0.6
Total market value of assets – 242.2
Present value of scheme liabilities – (243.6)
Net pension liability before deferred tax – (1.4)
Deferred tax asset – 0.4
Net pension liability – (1.0)
The pension costs for the defined contribution schemes are as follows:
52 weeks to
20 August
2011
£m
52 weeks to
21 August
2010
£m
Defined contribution schemes 1.5 2.7
Pension risk
The Group operates one defined benefit pension scheme which is closed to new members. The scheme is subject to risk regarding
the relative amount of the scheme’s assets, which are affected by the value of investments and the returns generated by such
investments, compared to the scheme’s liabilities, which are affected by changes in life expectancy, actual and expected price inflation,
changes in bond yields and future salary increases. The difference in value between scheme assets and scheme liabilities may vary
significantly in the short term, potentially resulting in an increased deficit being recognised on the Group’s balance sheet.
Governance Business review
30 Operating lease commitments – minimum lease payments
Group
20 August
2011
£m
21 August
2010
£m
Future minimum rentals payable under non-cancellable operating leases:
Within one year 8.5 68.8
Between one and five years 31.8 270.2
After five years 160.1 1,168.1
200.4 1,507.1
The future minimum rentals payable under non-cancellable operating leases when discounted to present value are £87.0m
(August 2010: £658.0m).
Financial statements
The Group leases various licensed properties, offices and other commercial properties under non-cancellable operating lease agreements.
The leases have various terms, escalation clauses and renewal rights. The Group also leases vehicles under non-cancellable operating
lease agreements.
The total future minimum sublease payments expected to be received are £64.1m (August 2010: £148.8m).