This excerpt taken from the ICI 6-K filed Mar 21, 2007.
The following information is provided in accordance with IAS 24 Related Party Disclosures, as comprising material transactions with related parties during 2006.
Related party: IC Insurance Limited and its subsidiaries
Transaction: Funds on deposit with ICI Finance PLC amounting to £10m (2005 £10m)
Related party: ICI Pensions Trustee Limited
Transaction: In recognition of a deficit for funding purposes of £657m and a funding ratio of 90.9% as at 31 March 2005 identified as a result of the completion of the valuation of the ICI UK Pension Fund (the Fund), the Company agreed to make top-up contributions to the Fund over nine years, comprising annual payments of £122m for the first four years, from 2006 to 2009, and annual payments of £62m for the following five years, from 2010 to 2014.
As from September 2004, the Company has also provided an asset-backed guarantee, via a wholly owned subsidiary, ICI Receivables Funding Limited (the SPV) specifically incorporated to provide the guarantee, for £250m to be secured by way of fixed and floating charge over the receivables of certain Group companies which have been assigned to the SPV and by way of cash and cash equivalents deposited with the SPV. At 31 December 2006, £228m (31 December 2005 £268m) of trade debtors and £57m (31 December 2005 £5m) of cash and cash equivalents were assigned to the SPV.
Related party: ICI Specialty Chemicals Pensions Trustee Limited (the Trustee)
Transaction: In recognition of a deficit for funding purposes of £95m and a funding ratio of 71.2% as at 31 March 2005 identified as a result of the completion of the valuation of the ICI UK Specialty Chemicals Pension Fund (the Fund), the Company agreed to make top-up contributions to the Fund over ten years, comprising annual payments of £12.3m, from 2006 to 2015.
Key terms have been agreed between the Company and the Trustee as to the re-apportionment of any debt arising by virtue of section 75 of the Pensions Act 2004 relating to the sale of Quest International Flavours and Fragrances Ltd (Quest Ltd). Both parties have agreed that the Fund Trust Deed will be amended to permit the Trustee to re-apportion section 75 debts arising on the cessation of membership of the Fund by participating employers. An amount of £1,000 will be payable by Quest Ltd once it ceases to be a participating employer, and the remaining section 75 debt arising on the sale of Quest Ltd will be re-apportioned between the Company and the remaining participating employers. In consideration of the agreement, the Company will provide the Fund with an amount to increase the Funds assets up to full funding on an IAS 19 Employee Benefits basis (after allowing for liabilities corresponding to the active members employed by Unichema Chemicals Limited, Uniqema Limited and Quest Ltd) estimated to be £65m (the Funding Amount) and the Company will provide the Trustee with a letter of credit for a value representing the difference between the Funding Amount and the amount of the section 75 debt arising on the divestment of Quest Ltd (estimated to be of the order of £75m). Such agreement is subject to obtaining clearance from the Pensions Regulator.
This excerpt taken from the ICI 6-K filed Mar 16, 2005.
Related party transactions
The main related party transactions are with IC Insurance Limited and ICI Pension Trustees Limited (details are in note 40 to the consolidated financial statements).
The financial statements of the ICI Group are prepared in accordance with UK GAAP. UK GAAP differs in certain respects from US GAAP. Net income from continuing and discontinued operations and shareholders equity calculated in accordance with US GAAP are set out in the table below. Note 42 to the Groups financial statements describes the significant differences between UK GAAP and US GAAP affecting the ICI Groups net income and shareholders equity for the three years ended 31 December 2004.
ICI ANNUAL REPORT AND ACCOUNTS 2004
Under US GAAP, the net income in 2004 was £105m (2003 £166m net expense; 2002 £9m net income) compared with net income of £210m (2003 £20m net income; 2002 £179m net income) under UK GAAP. Under US GAAP, shareholders equity at 31 December 2004 was £2,279m, (at 31 December 2003 was £2,359m and at 31 December 2002 was £2,805m) compared with £721m surplus (2003 £450m surplus, 2002 £463m surplus) under UK GAAP. These differences primarily result from the differing accounting treatment of purchase accounting adjustments, pensions, disposal accounting, capitalisation of interest, deferred tax, derivative instruments and restructuring costs.