41. Commitments
| 2017 | 2016 | |||||||||
|
Contractual obligations and commitments |
£m | £m | ||||||||
|
Contracted for but not provided in the financial statements: |
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Intangible assets |
5,254 | 7,199 | ||||||||
|
Property, plant and equipment |
584 | 496 | ||||||||
|
Investments |
107 | 166 | ||||||||
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Purchase commitments |
346 | 52 | ||||||||
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Pensions |
738 | 874 | ||||||||
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Other commitments |
38 | 143 | ||||||||
|
Interest on loans |
8,510 | 9,410 | ||||||||
|
Finance lease charges |
12 | 3 | ||||||||
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| 15,589 | 18,343 | |||||||||
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The commitments related to intangible assets include milestone payments, which are dependent on successful clinical development or on meeting specified sales targets, and which represent the maximum that would be paid if all milestones, however unlikely, are achieved. The amounts are not risk-adjusted or discounted. The decrease in intangible commitments in 2017 is attributable to amendments made to the agreement with Adaptimmune Therapeutics plc and reduction in commitments to third parties such as Ionis Pharmaceuticals, Inc.
In 2016, GSK reached an agreement with the trustees of the UK pension schemes to make additional contributions to eliminate the pension deficit identified at the 31 December 2014 actuarial funding valuation. A payment of £123 million is due in 2018 and each subsequent year up to, and including 2023. The table above includes this commitment, but excludes the normal ongoing annual funding requirement in the UK of approximately £130 million.
The Group also has other commitments which principally relate to revenue payments to be made under licences and other alliances.
Commitments in respect of future interest payable on loans are disclosed before taking into account the effect of interest rate swaps.
Commitments under non-cancellable operating leases are disclosed below. £117 million (2016 – £186 million) is provided against these commitments on the Group’s balance sheet.
| 2017 | 2016 | |||||||||
|
Commitments under non-cancellable operating leases |
£m | £m | ||||||||
|
Rental payments due within one year |
186 | 153 | ||||||||
|
Rental payments due between one and two years |
149 | 129 | ||||||||
|
Rental payments due between two and three years |
122 | 94 | ||||||||
|
Rental payments due between three and four years |
107 | 74 | ||||||||
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Rental payments due between four and five years |
94 | 66 | ||||||||
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Rental payments due after five years |
387 | 324 | ||||||||
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Total commitments under non-cancellable operating leases |
1,045 | 840 | ||||||||
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