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