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134 | FINANCIAL STATEMENTS | Notes to the Company Financial Statements


9. Creditors Note


Amounts due within one year: Trade creditors Accruals


Amounts owed to subsidiary undertakings Amounts owed to Achmea Group* Other creditors


Loans from subsidiary undertakings


Amounts due outwith one year: Other creditors


Loans from subsidiary undertakings Fixed/Floating Rate Subordinated Notes 2016/2026†


11 11


11


31 December 31 December 2011 £m


2010 £m


0.2 2.5 3.4 –


1.6 4.0


11.7 – 45.0


258.9 303.9


* As the Achmea Group ceased to be a related party during 2011, these balances are now included within other creditors at 31 December 2011. †


Other creditors at 31 December 2011 includes:


• £0.7m (31 December 2010: £0.7m) of estimated further consideration payable in respect of the acquisition of F&C Group (Holdings) Limited during 2004; and


• £nil (31 December 2010: £15.0m) of estimated further consideration payable in respect of the acquisition of Thames River Capital Group on 1 September 2010, as shown in note 4(a).


10. Provisions for liabilities


Onerous premises contracts £m


At 1 January 2010


Provided during the year Utilised during the year Released during the year


At 31 December 2010 Provided during the year Utilised during the year


At 31 December 2011


7.2 0.4


5.9 1.1


(1.3) 5.7


Pension Plan


guarantee £m


– 0.1


0.1 0.1 –


0.2


Deferred tax £m


0.6 0.3


0.9 0.4


(0.9) 0.4


Litigation guarantee £m


2.4 –





2.0 –


2.0


Total £m


10.2 0.8


(1.2) ––– (1.2) (0.5) –– (2.4)


(2.9) 6.9


3.6


(2.2) 8.3


Onerous premises contracts The Company holds all properties under operating leases. This includes a number of vacant or sub-let properties which were either previously occupied or are partially occupied by the Company. Provision has been made for the residual lease commitments, where significant, after taking into account existing and expected sub-tenant contractual arrangements. The remaining terms are for up to nine years.


Assumptions have been made as to whether each leasehold property may be sub-let or assigned in the future. All leases and sub-leases are for minimum guaranteed rentals. The provision is subject to uncertainties over time including market rent reviews and break options within the lease arrangements. In addition, exposure could exist if an existing tenant defaulted or went into liquidation or administration.


The amount included within the Profit and Loss Account in respect of unwinding of the discount on onerous premises provisions in 2011 is £0.4m (2010: £0.4m).


Pension Plan guarantee The Company has agreed to provide the F&C Asset Management Pension Plan (FCAM Plan) Trustees with a guarantee that, should F&C Asset Management Services Limited become insolvent, the Company will guarantee an amount up to the lower of the cost of securing members’ benefits with an insurance company over the assets of the FCAM Plan (the ‘solvency deficit’) and £120.0m. The provision represents the actuarial estimate of the fair value of the guarantee at 31 December 2011 and 31 December 2010.


0.5 8.0 2.5 0.7 9.4


10.0 31.1


7.5 45.0


258.6 311.1


At 31 December 2011 £135.0m (31 December 2010: £135.0m) of the Fixed/Floating Rate Subordinated Notes 2016/2026 are held by F&C Finance plc, a subsidiary undertaking.


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