BT 2013 Annual Report Download - page 123

Financial statements
121
Financial statements
9. Specific items
2013 2012 2011
Year ended 31 March £m £m £m
Revenue
Retrospective regulatory rulingsa236 410 –
Other operating income
(Profit) loss on disposal of businessesb(7) 19 –
Operating costs
Restructuring chargesc204 64 192
Property rationalisation costs –9088
Retrospective regulatory rulingsa(142) (410) –
Impairment chargesd18 – 49
Provisions for claimse43––
123 (256) 329
Net finance (income)expense
Interest expense on pension plan liabilitiesf1,975 2,092 2,323
Expected return on pension plan assetsf(2,006) (2,289) (2,244)
Interest on provisions for claims 2––
(29) (197) 79
Share of results of associates and joint ventures
Profit on disposal of interest in associateg(130) – (42)
Net specific items charge (credit) before tax 193 (24) 366
Taxation
Tax (credit) charge on specific items above (91) 22 (72)
Tax credit on re-measurement of deferred taxh(105) (164) (172)
Tax charge in respect of settlement of open tax years – – 5
(196) (142) (239)
Net specific items (credit) charge after tax (3) (166) 127
aIn 2012/13 reported revenue and EBITDA include a one-off specific item charge of £85m and £58m, respectively, following the Court of Appeal decision that wholesale ladder termination
pricing should not be applied for 0800, 0845 and 0870 calls from mobile phones terminating on our network. In addition charges of £151m and £36m were recognised against revenue and
EBITDA respectively, following Ofcom’s determinations on historic Ethernet pricing. In 2011/12, following a retrospective regulatory ruling in Germany in relation to the period from
September 2006 to November 2010, a one-off charge of £410m was recognised against revenue with an equal reduction in operating costs.
bIn 2011/12 a loss arose on the disposal of the group’s 51% shareholding in its subsidiary Accel Frontline Limited.
cThe components of the restructuring charges recognised in 2012/13, 2011/12 and 2010/11 were: people and property charges of £163m (2011/12: £28m, 2010/11: £129m) principally
comprising leaver costs and property exit costs; networks, products and procurement channels rationalisation charges of £41m (2011/12: £36m, 2010/11: £41m), and intangible asset
impairment and other charges of £nil (2011/12: £nil, 2010/11: £22m).
dIn 2012/13 impairment charges principally include an impairment of £17m to write down the total investment in Onlive Inc., after it entered creditor protection status. In 2010/11 goodwill
impairment charges of £39m were recognised mainly relating to an operational restructuring of a business acquired several years before and intangible asset impairments of £10m relating
to brands no longer in use.
eThe group makes provisions for legal or constructive obligations arising from insurance, litigation and regulatory risks. Provisions increased by £43m in 2012/13, having reassessed potential
claims relating to certain historical matters.
fSee note 19 for more details.
gIn 2012/13 a profit of £130m was recognised as a result of the disposal of the group’s remaining interest in its associate Tech Mahindra, which was held at a carrying value of £127m at
31 March 2012. In 2010/11 a profit of £42m arose on the disposal of a 6.5% interest in Tech Mahindra.
hIn 2012/13, 2011/12 and 2010/11, respectively, a tax credit was recognised for the re-measurement of deferred tax balances as a result of the change in the UK statutory corporation tax
rate from 24% to 23% effective in 2013/14 but enacted in 2012/13; from 26% to 24% effective in 2012/13 but enacted in 2011/12; and from 28% to 26% effective in 2011/12 but
enacted in 2010/11.