Multi-year contracts

Included in other non-current assets is US$72.3 million (FY22: US$43.9 million) of amounts receivable for multi-year contracts. These multi-year contracts relate to Westcon International where performance obligations have already been fulfilled. The amounts due to Westcon International are unconditional and the contracts are non-cancellable. The short-term portion (US$79.5 million (FY22: US$41.8 million)) is included in trade receivables. Amounts owing for purchases related to these multi-year contracts have been recognised in other liabilities (long-term portion of US$68.7 million (FY22: US$40.6 million)) and trade and other payables (short-term portion of US$75.5 million (FY22: US$37.9 million)).

Expected credit losses have been assessed. No material expected credit losses have been noted.

Share-based payments

The short-term portion of share-based payments (included in trade and other payables) has increased as a result of the increasing valuations of the divisions' cash-settled share-based payment plans, particularly Weston International. US$61.0 million of the total US$63.5 million short-term portion of share-based payments relates to the Westcon International Equity Appreciation Plan and the Westcon Internal SAR scheme. The share-based payment charge in FY23 was exceptionally high and will be substantially lower in future years.

Withholding taxes

As at 28 February 2022, Westcon International had a contingent liability in respect of a possible withholding tax obligation at its subsidiary in the Kingdom of Saudi Arabia, Westcon Saudi Company LLC ("Westcon KSA"). This relates to payments Westcon KSA has made in relation to the purchase of vendor software and maintenance services which have been resold to customers during the six years ended 31 December 2020. Westcon KSA strongly disagrees with the tax authority's assessments issued on 22 June 2021 and has submitted the necessary appeals. Following an unsuccessful attempt to utilise the alternative dispute resolution procedures, the matter is now proceeding to court. The ongoing litigation with the KSA tax authorities is likely to continue beyond the next financial year end. A liability has been recognised for a possible liability in this regard.

As at 28 February 2023, withholding tax liabilities for the Group totalled US$20.0 million (FY22: US$7.3 million), which includes the liability for the Westcon KSA matter described above.