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ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 135


10. Provisions for liabilities continued


Deferred tax The deferred tax provision relates to short-term timing differences which have originated but not reversed at the balance sheet date. The provision is subject to uncertainties in respect of when timing differences might reverse. The provision relates to the revaluation of available for sale assets, which is recognised as a separate component of reserves.


A further analysis of deferred taxation is disclosed in note 12.


Litigation guarantee Note 24 to the Consolidated Financial Statements on pages 82 and 83 outlines the background and status of the F&C Partners litigation.


A provision of £2.4m was recognised during 2009 as the Company had guaranteed any amounts validly due to the founder members in respect of the put option, to the extent that F&C Alternative Investment Holdings (F&C AIH) is unable to meet such obligations. However, the provision was released in 2010 as F&C AIH had sufficient resources available to it to meet any amount payable in respect of a valid put option claim by the two founder members of Partners. The put option liability was settled during 2011.


The Company now has a joint legal obligation with F&C AIH to settle any litigation amounts payable to the founder partners. As a result, the Company has recognised an amount of £2.0m as being potentially payable, in line with the provision recognised in note 24 to the Consolidated Financial Statements.


11. Loans Notes


Amounts repayable: Fixed/Floating Rate Subordinated Notes 2016/2026 Fixed Rate inter-company loan 2016 Fixed Rate inter-company loan 2016


Floating Rate inter-company loan repayable on demand Floating Rate inter-company loan repayable on demand


(i) (ii)


(iii) (iv) (v)


31 December 31 December 2011 £m


2010 £m


258.9 25.0 20.0 4.0 –


307.9


258.6 25.0 20.0 4.0 6.0


313.6


(i) The £260.0m Fixed/Floating Rate Subordinated Notes 2016/2026 bear interest at 6.75% per annum for the period 20 December 2006 – 19 December 2016, payable annually in arrears. The Company has the option to extend the Notes beyond 19 December 2016 at a rate of 2.69% above three-month LIBOR for the period 20 December 2016 – 19 December 2026, payable quarterly in arrears.


(ii) The £25.0m loan bears interest at a fixed rate of 13.26%, payable half-yearly in arrears. This loan is due to F&C Finance plc, a subsidiary undertaking, and is repayable on 19 December 2016.


(iii) The £20.0m loan bears interest at a fixed rate of 9.66%, payable half-yearly in arrears. This loan is due to F&C Finance plc and is repayable on 19 December 2016.


(iv) The £4.0m loan bears interest at three-month LIBOR minus 0.25%, payable quarterly in arrears. This loan is due to F&C Managed Pension Funds Limited, a subsidiary undertaking, and is repayable on demand.


(v) The £6.0m loan due to F&C Managers Limited was settled on 24 January 2011. Note


Amounts repayable: In one year or less, or on demand


In more than one year but not more than two years In more than two years but not more than five years In more than five years


9 9


9


31 December 31 December 2011 £m


2010 £m


4.0 –


303.9 –


307.9


Borrowing facilities The Company has borrowing facilities available to it. The undrawn committed facilities available at the year end are as follows:


31 December 31 December 2011 £m


2010 £m


Revolving credit facility Bank overdraft facilities


20.0 –


20.0


20.0 0.5


20.5


Details of the revolving credit facility, which expired on 29 February 2012, are disclosed in note 22 to the Consolidated Financial Statements on page 80.


10.0 – –


303.6 313.6


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