- Part I: Summary
- Part II: Risk Factors
- Part III: The Scheme of Arrangement and Share Capital Consolidation
- Part IV: Directors, Company Secretary, Registered Office and Advisers
- Part V: Presentation of Statisical Data and Other Information
- Part VI: Information on The Group
- Part VII: Directors and Corporate Governance
- Part VIII: Selected Financial Information
- Part IX: Operating and Financial Review
- Part X: Accountant's Reports and Financial Information
- Accountant's report on historical financial information
- Financial information for the period ended 9 July 2008
- Accountant's report on historical financial information
- Consolidated income statements
- Consolidated balance sheets
- Consolidated statements of cash flow
- Consolidated statements of shareholders' equity
- Consolidated statements of comprehensive income
- Notes to the accounts
- Part XI: Interim Financial Information of The Group for The 26 Week Period Ended 2 August 2008
- Part XII: Additional Information
- Part XIII: Definitions
20. Commitments and Contingencies
Operating leases
The Group occupies certain properties and holds plant, machinery and vehicles under operating leases. The Group does not have any capital leases. Rental expense for operating leases are as follows:
| 2007/08 $m |
2006/07 $m |
2005/06 $m |
|
| Minimum rentals | 316.0 | 283.1 | 275.1 |
| Contingent rent | 10.1 | 14.6 | 12.0 |
| Sublease income | (7.0) | (6.5) | (6.4) |
| Total | 319.1 | 291.2 | 280.7 |
The future minimum operating lease payments for operating leases having initial or noncancellable terms in excess of one year as follows:
| $m | |
| For fiscal years ending: | |
| 2008/09 | 299.0 |
| 2009/10 | 280.8 |
| 2010/11 | 260.4 |
| 2011/12 | 241.2 |
| 2012/13 | 219.2 |
| Thereafter | 1,227.8 |
| Total | 2,528.4 |
The Group entered into certain sale and leaseback transactions of freehold and long leasehold properties. Under these transactions the Group continues to occupy the space in the normal course of business. Gains on the transactions are recognized as a reduction of rent expense over the life of the operating lease.
Capital commitments
At 2 February 2008 the Group has committed to spend $37.4 million in respect of capital commitments. These commitments relate to the expansion and renovation of stores.
Litigation
The Group is not party to any legal proceedings considered to be material to the consolidated financial statements. Furthermore, no director, officer or affiliate of the Group or any associate of any such director has been party to any agreement that is adverse to the Group or any of its subsidiaries or has a material interest adverse to the Group or any of its subsidiaries.
A class lawsuit for an unspecified amount has been filed against Sterling Jewelers Inc., a subsidiary of the Company, in the New York federal court. The lawsuit alleges that US storelevel employment practices are discriminatory as to compensation and promotional activities. The Group denies these allegations and intends to defend them vigorously.