Marks and Spencer 2011 Annual Report Download - page 84

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Marks and Spencer Group plc Annual report and financial statements 2011
82
Notes to the financial statements continued
2 Segmental information
IFRS 8 requires operating segments to be identified on the basis of internal reporting about components of the Group that are regularly
reviewed by the chief operating decision maker to allocate resources to the segments and to assess their performance.
The chief operating decision maker has been identified as the executive directors. The executive directors review the Group’s internal
reporting in order to assess performance and allocate resources. The operating segments are UK and International which are reported
in a manner consistent with the internal reporting to the executive directors.
The UK segment consists of the UK retail business and UK franchise operations. The International segment consists of Marks &
Spencer owned businesses in the Republic of Ireland, Europe and Asia, together with international franchise operations.
The executive directors assess the performance of the operating segments based on a measure of operating profit. This measurement
basis excludes the effects of non-underlying items from the operating segments. Central costs are all classified as UK costs and
presented within UK operating profit. The executive directors also monitor revenue within the segments. To increase transparency,
the Group has decided to include an additional voluntary disclosure analysing revenue within the reportable segments.
The following is an analysis of the Group’s revenue and results by reportable segment:
52 weeks ended 2 April 2011 53 weeks ended 3 April 2010
Management
£m
Adjustment2
£m
Statutory
£m
Management
£m
Adjustment2
£m
Statutory
£m
General Merchandise 4,273.0 (39.4) 4,233.6 4,186.2 (34.2) 4,152.0
Food 4,543.9 (44.5) 4,499.4 4,455.5 (39.6) 4,415.9
UK revenue 8,816.9 (83.9) 8,733.0 8,641.7 (73.8) 8,567.9
Wholesale 343.7 – 343.7 297.7 – 297.7
Retail 665.8 (2.2) 663.6 673.1 (2.1) 671.0
International revenue 1,009.5 (2.2) 1,007.3 970.8 (2.1) 968.7
Group revenue 9,826.4 (86.1) 9,740.3 9,612.5 (75.9) 9,536.6
UK operating profit1 677.9 1.1 679.0 701.2 (0.1) 701.1
International operating profit 147.0 10.9 157.9 142.7 8.2 150.9
Group operating profit 824.9 12.0 836.9 843.9 8.1 852.0
Finance income 42.3 – 42.3 12.9 – 12.9
Finance costs (152.9) 54.3 (98.6) (162.2) – (162.2)
Profit before tax 714.3 66.3 780.6 694.6 8.1 702.7
1UK operating profit includes a contribution of £35.2m (last year £30.4m) in respect of fees received from HSBC in relation to M&S Money.
2Adjustments to revenue relate to revenue deductions recognised in cost of sales for management accounting purposes. In addition, underlying profit excludes profits and
losses on the disposal of properties, impairment charges, pension credits arising on changes of the defined benefit pension schemes, non-cash fair value movements in
financial instruments and costs relating to strategic changes that are not costs of the underlying business (see note 5).
Other segmental information
2011 2010
UK
£m
International
£m
Total
£m
UK
£m
International
£m
Total
£m
Additions to property, plant and equipment and intangible assets
(excluding goodwill) 463.6 27.9 491.5 360.0 29.3 389.3
Depreciation and amortisation 434.5 33.0 467.5 398.7 29.2 427.9
Assets 6,287.6 1,056.5 7,344.1 6,242.7 910.5 7,153.2
Non-current assets 4,751.1 951.3 5,702.4 4,843.9 789.1 5,633.0
considered normal operating