g Other The group has extensive international operations and is defendant in a

G other the group has extensive international

This preview shows page 223 - 225 out of 256 pages.

(g) Other The group has extensive international operations and is defendant in a number of legal proceedings incidental to these operations. There are a number of legal claims against the group, the outcome of which cannot at present be foreseen. Save as disclosed above, neither Diageo, nor any member of the Diageo group, is or has been engaged in, nor (so far as Diageo is aware) is there pending or threatened by or against it, any legal or arbitration proceedings which may have a significant effect on the financial position of the Diageo group. 32. Related party transactions Transactions between the group and its related parties are made on terms equivalent to those that prevail in arm’s length transactions. Subsidiaries Transactions between the company and its subsidiaries are eliminated on consolidation and therefore are not disclosed. Associates Transactions between the group and its associates were as follows: • Group sales include sales to associates of £74 million (2009 – £60 million; 2008 – £17 million) and operating costs include purchases from associates of £19 million (2009 – £12 million; 2008 – £6 million). • At 30 June 2010, group receivables included £2 million receivable from associates (2009 – £16 million) and group payables included £9 million payable to associates (2009 – £8 million). Additions to property, plant and equipment in the year ended 30 June 2009 include a warehouse acquired from Mo¨ et Hennessy for £16 million, and inventories include the purchase from Mo¨ et Hennessy of related maturing inventories for £8 million. Diageo has granted a two-year lease to Mo¨ et Hennessy in respect of this property and rental income of £1 million is included in other operating income. Additions to loans include £56 million (2009 – £15 million) of loans to associates in South Africa, comprising £30 million (2009 – £8 million) to DHN Drinks, £25 million (2009 – £7 million) to Sedibeng Brewery (Pty) Limited and £1 million (2009 – £nil) to Namibia Breweries Limited. Joint ventures Due to the nature of the proportional basis of consolidation applied according to the relevant contractual arrangements, transactions between the group and its joint ventures are eliminated on consolidation and therefore are not disclosed. 220
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Notes to the consolidated financial statements (continued) 32. Related party transactions (continued) Key management personnel The key management of the group comprises the executive and non-executive directors, the members of the executive committee and the company secretary. They are listed under ‘Board of directors and executive committee’. 2010 2009 2008 £ million £ million £ million Salaries and short term employee benefits . . . . . . . . . . . . . . . . . . . . . . . 21 12 12 Non-executive directors’ fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 Share-based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 10 6 Other long term benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Post employment benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 3 36 27 22 Non-executive directors do not receive share-based payments or post employment benefits.
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  • Fall '15
  • Speak, Guinness, Diageo plc, Johnnie Walker

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