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).
|Transactions|| || |
|– revenue||32 ||35 |
|– other net income||292 ||272 |
|Amounts receivable at 31 December||67 ||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 benefits||14 ||14 |
|– post-employment benefits||4 ||3 |
|– share-based payments||7 ||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.