Notes to the consolidated annual financial statements

for the year ended 30 September

		2008	2007	2006
		Rm	Rm	Rm
17.	Other non-interest bearing liabilities
	Bills and leases discounted with recourse and repurchase obligations	111	103	7
	Fair value of derivatives	20	2
	Retirement benefit obligation	6	694	777
	Other payables	502	506	323
	Total non-interest-bearing liabilities	639	1 305	1 107
	Per category:
	Financial liabilities at fair value through profit or loss
	– Designated as such at initial recognition	11	26
	– Held for trading items	20	2
	Financial liabilities measured at amortised cost	602	583	330
	Other liabilities	6	694	777
		639	1 305	1 107
	Per business segment:
	Continuing operations
	– Equipment	84	66	57
	– Automotive	225	269	124
	– Handling	287	221	139
	– Logistics	14	4	2
	– Corporate and other	29	722	770
	Total continuing operations	639	1 282	1 092
	Discontinued operations
	– Coatings		23	5
	– Scientific			10
	Total discontinued operations		23	15
	Total group	639	1 305	1 107

	Retirement benefit information
	It is the policy of the group to encourage, facilitate and contribute to the provision of retirement benefits for all permanent employees. To this end the group’s permanent employees are usually required to be members of either a pension or provident fund, depending on their preference and local legal requirements.

	Altogether 51% of employees belong to one defined benefit and seven defined contribution retirement funds in which group employment is a prerequisite for membership. Of these, the defined benefit and four defined contribution funds are located outside of South Africa and accordingly are not subject to the provisions of the Pension Funds Act of 1956. 35% of employees belong to defined contribution funds associated with industry or employee organisations.

	Defined contribution plans
	The total cost charged to profit or loss of R307 million (2007: R381 million; 2006: R353 million) represents contributions payable to these schemes by the group at rates specified in the rules of the schemes (note 21).

	Defined benefit plans
	Amounts recognised in the Income Statement in respect of defined benefit schemes are as follows:

	2008	2007	2006
	Rm	Rm	Rm
Current service cost	28	54	66
Interest costs	326	270	218
Expected return on plan assets	(357)	(285)	(230)
Curtailment on settlement			(149)
Net (gain)/loss recognised in profit or loss (note 21)	(3)	39	(95)
Actual return on plan assets	(364)	378	322

	The group changed its accounting policy in the 2006 financial year whereby actuarial gains and losses are recognised in full in the period in which they occur, outside profit or loss, in the statement of recognised income and expense. The impact of this change in that year was to recognise the full actuarial deficit of R777 million (£52,9 million) through the statement of recognised income and expense with no impact on profit or loss. However, a gain of R149 million on curtailment in terms of the transition from a final pay plan to a career average revalued earnings (CARE) plan has been recognised in profit or loss for 2006.

	The triennial valuation of the two United Kingdom defined benefit pension schemes at 1 April 2006 was done during 2006 and updated in the current year as at 1 April 2008. These schemes reflected a combined deficit, calculated in terms of IAS19 Employee Benefits of £48.5 million at the end of the 2007 financial year. The schemes were closed to new entrants from 1 April 2002, with all new employees in the United Kingdom required to join the recently established defined contribution scheme. During the current year the group committed to address the funding deficit in the funds. Pursuant to this contributions of £57,4 million (R826 million) were paid and the two schemes were merged into the Barloworld UK Pension scheme.

	The estimated contributions to be paid to the plan during the next financial year amounts to £2.5 million (R37 million).

	2008	2007	2006
	Rm	Rm	Rm
The amount included in the balance sheet arising from the
group’s obligations in respect of defined benefit retirement
plans is set out below:
Present value of funded obligation	5 270	5 504	5 457
Fair value of plan assets	5 264	4 816	4 685
Net liability	6	688	772
Amount recognised as an asset (note 7)		6	5
Net liability per balance sheet	6	694	777
Movement in present value of funded obligation:
At beginning of year	5 504	5 457	4 166
Current service cost	28	54	66
Interest cost	326	270	218
Curtailment on settlement			(149)
Actuarial (gains)/losses recognised in the statement of recognised income and expense	(578)	135	173
Benefits paid	(292)	(264)	(193)
Employee contributions	21	28	23
Other movements		(5)	(78)
Translation differences	261	(171)	1 231
At the end of year	5 270	5 504	5 457
Movement in fair value of plan assets:
At beginning of year	4 816	4 685	3 419
Expected return on plan assets	357	285	230
Actuarial (losses)/gains recognised in the statement of recognised income and expense	(711)	93	94
Contributions	826	145	81
Benefits paid	(292)	(264)	(193)
Employee contributions	21	28	23
Other movements	(1)	(10)	(1)
Translation differences	248	(146)	1 032
At the end of year	5 264	4 816	4 685
Cumulative actuarial losses	968	835	793

Plan assets consist of the following:
– Equity instruments (%)	41	58	57
– Bonds (%)	58	42	43
– Cash (%)	1

	Amount included in the fair value of assets for Barloworld Limited shares and property occupied by the group is nil.

	Defined benefit funds are valued by independent actuaries as follows:

					Latest statutory
			Valuation interval		valuation
Barloworld UK Pension Scheme				Triennial	1 April 2008
Barloworld Australia Superannuation Fund^				Triennial	September 2006
Japan Pension Scheme#				Annual	September 2006

Key assumptions used:
		UK			Australia^
	2008	2007	2006	2008	2007	2006
Discount rate (%)	6.6	5.7	5.1	n/a	7.4	5.7
Expected return on plan assets (%)	7.2	7.2	7.3	n/a	6.5	7.6
Expected rate of salary increases (%)	4.3	4.2	3.6	n/a	4.0	4.0
Future pension increases (%)	3.5	3.4	2.9	n/a	2.5	2.5

					Japan
				2008^#	2007	2006
Discount rate (%)				n/a	n/a	1.5
Expected return on plan assets (%)				n/a	n/a	2.9
Expected rate of salary increases (%)				n/a	n/a	2.2
Future pension increases (%)				n/a	n/a	n/a

Historical disclosures:		2008	2007	2006	2005	2004
Present value of obligation		5 270	5 504	5 457	4 166	3 817
Fair value of plan assets		5 264	4 816	4 685	3 419	3 158
Net liability		6	688	772	747	659
Experience adjustments (%):
Plan liabilities		(5.6)				0.1
Plan assets		(13.9)	2.0	2.3	8.8	1.5


	Historically, qualifying employees were granted certain post-retirement medical benefits. The obligation for the employer to pay medical aid contributions after retirement is not part of the conditions of employment for new employees. A number of pensioners and employees in the group remain entitled to this benefit, the cost of which has been fully provided (note 16).

	^	Following the sale of Coatings Australia during 2007, the Barloworld Australia Superannuation Fund was closed during the current financial year.
	#	Not applicable due to the disposal of the Melles Griot business during 2007.