GROUP FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – for the year ended 30 June 2014

    2014  
Rm  		 2013  
Rm  

20.  

Liabilities  

    
  Summary      
  Post-employment medical benefits   64   62  
  Share appreciation rights liability   360   254  
  Future commitments   84   169  
  Deferred profit on sale and leaseback of houses   366   401  
  Employee retention scheme   141   104  
    1 015   990  
  Short-term portion   (339)  (318) 
  Long-term portion   676   672  
  Summary – Movement      
  Beginning of the year   990   1 127  
  Expense/(income)  193   (85) 
  Actuarial loss   1   6  
  Profit on sale of houses   –   3  
  Interest accrued (note 29)  32   25  
  Payments made   (204)  (98) 
  Exchange adjustments   3   12  
  End of the year   1 015   990  
 
(i) Post-employment medical benefits  
    
  Beginning of the year   62   58  
  Employee benefit expense (note 24)  3   3  
  Finance cost   5   4  
  Actuarial loss   1   6  
  Benefits paid   (7)  (9) 
  End of the year   64   62  
  Short-term portion   (5)  (3) 
  Long-term portion   59   59  
  The Company provides post-retirement medical scheme subsidies to qualifying employees and retirees. Post-employment medical benefits are an unfunded liability. A 1% increase in the medical inflation rate results in a R 6.5 (2013: R6.1) million increase in the provision and a decrease of 1% results in a decrease in the provision of R 5.5 (2013: R5.2) million. Subsidies of R 5.1 (2013: R3.3) million are expected to be paid in the next financial year.      
  Active employees have an average age of 51 (2013: 51) years and an average remaining service period of 14 (2013: 13) years. Retirees have an average age of 73 (2013: 72) years.      
 
(ii) Share appreciation rights liability  
    
  Beginning of the year   254   405  
  Share-based compensation expense/(income) (note 24)  109   (140) 
  Paid to employees   (4)  (16) 
  Exchange adjustment   1   5  
  End of the year   360   254  
  Short-term portion   (240)  (154) 
  Long-term portion   120   100  
  The total intrinsic value was R nil (2013: R nil) as determined by the year-end share price of R107 (2013: R93).  
  Refer note 3 for the key assumptions used in determining the value of the share options. Refer note 39 for share-based compensation disclosure.  
  The cash-settled share appreciation rights include the Employee Share Option Participation scheme (ESOP) and the Share Appreciation Rights scheme (SARs).  
    2014  
Rm  		 2013  
Rm  
 
(iii) Future commitments  
    
  Beginning of the year   169   177  
  Interest accrued   13   12  
  Payments for the year   (100)  (28) 
  Exchange adjustment   2   8  
  End of the year   84   169  
  Short-term portion   (18)  (93) 
  Long-term portion   66   76  
  Future commitments consist of:      
 
  • Fees payable to the Bakwena Ba-Mogopa as a result of an agreement with the acquisition of African Platinum Plc amounts to R12 (2013: R57) million
  • Future payments to the Impala Bafokeng local economic development trust as a result of the Impala-Bafokeng empowerment transaction amounts to R72 (2013: R75) million  
  • Future payments to the Zimbabwean local economic development trusts as a result of the indigenisation commitments in Zimbabwe amount to R nil (2013: R37) million. 
    
 
(iv) Deferred profit on sale and leaseback of houses  
    
  Beginning of the year   401   428  
  Profit on sale of houses   –   3  
  Amortised to profit or loss   (35)  (30) 
  End of the year   366   401  
  Short-term portion   (29)  (33) 
  Long-term portion   337   368  
  The profit on the sale of the houses, which is subject to a sale and leaseback arrangement, will be amortised over the life of the lease which is 13 years (2013: 14 years) (note 36).      
 
(v) Employee retention scheme  
    
  Beginning of the year   104   59  
  Expenses   116   82  
  Interest accrued   14   9  
  Payments for the year   (93)  (46) 
  End of the year   141   104  
  Short-term portion   (47)  (35) 
  Long-term portion   94   69  
  The scheme is a retention bonus scheme based on salary and deferred payment as a result of continued employment. Every year one-third of this award is paid over to the employee, provided that the employee stays in service for the period.      
 
(vi) Pension and provident plans  
  Independent funds provide pension and other benefits to all permanent employees and their dependants.  
  At the end of the financial year the following funds were in existence:  
  Impala Platinum Refineries Provident Fund  
  Impala Workers Provident Fund  
  Implats Pension Fund  
  Mine Employees Pension Fund (industry fund) 
  Mining Industry Pension Fund Zimbabwe (industry fund) 
  National Social Security Scheme Zimbabwe (industry fund)1  
  Old Mutual – Zimasco Pension Fund  
  Sentinel Pension Fund (industry fund) 
  1 This is the only defined benefit plan. This scheme was promulgated under the National Social Security Authority Act 1989. Contributions by all Zimbabwe employees are 3.5% of pensionable remuneration, which is capped at US$700 000 per annum for the purposes of this defined benefit scheme. The Group’s contribution for the year amounted to US$700 000 (2013: US$247 000).