25 Provisions
| National | |
National | ||||||
|---|---|---|---|---|---|---|---|---|
| Share | insurance on | |
Share | insurance on | ||||
| option | Onerous | share-based | 2009 | option | Onerous | share-based | 2008 | |
| liability | contract | payments | Total | liability | contract | payments | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| Group | ||||||||
| At 1st January | 0.5 | 0.6 | 0.3 | 1.4 | 2.1 | 0.7 | 0.5 | 3.3 |
| Provided/(released) in the | ||||||||
| income statement | 1.6 | – | 0.3 | 1.9 | (1.6) | – | – | (1.6) |
| Utilised in year | – | (0.1) | (0.1) | (0.2) | – | (0.1) | (0.2) | (0.3) |
| At 31st December | 2.1 | 0.5 | 0.5 | 3.1 | 0.5 | 0.6 | 0.3 | 1.4 |
| Due within one year | – | 0.1 | 0.1 | 0.2 | – | 0.1 | 0.1 | 0.2 |
| Due after one year | 2.1 | 0.4 | 0.4 | 2.9 | 0.5 | 0.5 | 0.2 | 1.2 |
| 2.1 | 0.5 | 0.5 | 3.1 | 0.5 | 0.6 | 0.3 | 1.4 | |
| Company | ||||||||
| At 1st January | – | 0.6 | 0.3 | 0.9 | – | 0.7 | 0.5 | 1.2 |
| Provided in the income statement | – | – | 0.3 | 0.3 | – | – | – | – |
| Utilised in year | – | (0.1) | (0.1) | (0.2) | – | (0.1) | (0.2) | (0.3) |
| At 31st December | – | 0.5 | 0.5 | 1.0 | – | 0.6 | 0.3 | 0.9 |
| Due within one year | – | 0.1 | 0.1 | 0.2 | – | 0.1 | 0.1 | 0.2 |
| Due after one year | – | 0.4 | 0.4 | 0.8 | – | 0.5 | 0.2 | 0.7 |
| – | 0.5 | 0.5 | 1.0 | – | 0.6 | 0.3 | 0.9 |
National insurance is payable on gains made by employees on the exercise of share-based payments granted to them. The eventual liability to national insurance is dependent on:
- the market price of the company’s shares at the date of exercise;
- the number of equity instruments that will be exercised; and
- the prevailing rate of national insurance at the date of exercise.
The onerous contract relates to the excess of rent payable over rent receivable on a lease at the group’s previous head office which expires in 2014 and reflects the discounted present value of future net payments under that lease.
A provision is made for the potential liability for cash-settled share options based on the valuation carried out at each balance sheet date (see note 13).