bat plc annual report 2007 - Notes on the accounts: Notes 28-29

Text size: AAAA
Annual Report and Accounts 2007

28 Group employees

The average number of persons employed by the Group and its associates during the year, including Directors, was 97,696 (2006: 97,431).

Europe18,913 18,953
Asia-Pacific10,334 10,128
Latin America15,009 14,941
Africa and Middle East7,807 8,993
America-Pacific1,844 2,130
Subsidiary undertakings53,907 55,145
Associates43,789 42,286
 97,696 97,431

Details of Directors’ remuneration, share options and retirement benefits are given in the Remuneration Report.

Included within the employee numbers for Europe are certain employees in the UK in respect of central functions. Some of the costs of these employees are allocated or charged to the various regions and markets in the Group.

29 Related party disclosures

The Group has a number of transactions and relationships with related parties, as defined in IAS24 on related party disclosures, all of which are undertaken in the normal course of trading. Details of these are set out below.

Transactions and balances with associates relate mainly to the sale and purchase of cigarettes and tobacco leaf. Amounts receivable from associates in respect of dividends included in the table below were £53 million (2006: £48 million). The Group’s share of dividends from associates included in other net income in the table below, was £290 million (2006: £267 million). Legal fees recovered from Reynolds American Inc. included in other net income amounted to £1 million (2006: £2 million).

– revenue32 35
– purchases(275)(292)
– other net income292 272
Amounts receivable at 31 December67 58
Amounts payable at 31 December(37)(24)

As discussed in note 3(f), the Group completed the sale of its Belgian cigar factory and associated brands to the cigars division of Skandinavisk Tobakskompagni AS on 3 September 2007. The gain on disposal is not included in the above table.

The key management personnel of British American Tobacco consist of the members of the Board of Directors of British American Tobacco p.l.c. and the members of the Management Board. No such person had any material interest during the year in a contract of significance (other than a service contract) with the Company or any subsidiary company. The term key management personnel in this context includes the respective members of their households.

The total compensation for key management personnel, including Directors, was  
– salaries and other short term employee benefits14 14
– post-employment benefits4 3
– share-based payments7 6
 25 23

There were no other long term benefits applicable in respect of key personnel. The above table includes termination benefits paid during the year of £1.2 million (2006: £0.9 million).

Other than in their capacity as shareholders, there have been no material transactions with Compagnie Financière Richemont SA and Remgro Limited, who together indirectly own 29.95 per cent (2006: 29.2 per cent) of the ordinary share capital of British American Tobacco p.l.c. at 31 December 2007.

© British American Tobacco