Marks and Spencer 2011 Annual Report Download - page 85

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Strategy Performance & Marketplace Operating review Financial review Governance
Financial statements
& other information
To find out more visit marksandspencer.com/annualreport2011
83
Financial statements
3 Expense analysis
2011 2010
Underlying
£m
Adjustments
£m
Total
£m
Underlying
£m
Adjustments
£m
Total
£m
Revenue 9,740.3 – 9,740.3 9,536.6 – 9,536.6
Cost of sales (6,015.6) – (6,015.6) (5,918.1) – (5,918.1)
Gross profit 3,724.7 – 3,724.7 3,618.5 – 3,618.5
Selling and administrative expenses (2,959.7) – (2,959.7) (2,831.5) – (2,831.5)
Other operating income 59.9 – 59.9 56.9 – 56.9
Non-GAAP adjustments to underlying profit (see note 5) – 12.0 12.0 – 8.1 8.1
Operating profit 824.9 12.0 836.9 843.9 8.1 852.0
The selling and administrative expenses in the table above are further analysed in the table below:
2011 2010
£m £m
Employee costs (see note 10A) 1,264.2 1,259.4
Occupancy costs 585.3 544.9
Repairs, renewals and maintenance of property 101.8 110.4
Depreciation 416.5 394.2
Amortisation 51.0 33.7
Other costs 540.9 488.9
Selling and administrative expenses 2,959.7 2,831.5
The presentation of selling and administrative expenses has been changed from that disclosed in the 2009/10 Annual Report to more
accurately reflect the internal reporting of these expenses. The prior year figures have been restated on a consistent basis.
4 Profit before taxation
The following items have been included in arriving at profit before taxation:
2011
£m
2010
£m
Net foreign exchange gains (3.0) (2.9)
Cost of inventories recognised as an expense 5,781.8 5,683.5
Depreciation of property, plant, and equipment
– owned assets 403.3 380.4
– under finance leases 13.2 13.8
A
mortisation of intangibles 51.0 33.7
Profit on property disposals (2.9) (8.1)
Operating lease rentals payable
– property 247.6 220.7
– fixtures, fittings and equipment 8.7 10.8
Included in administrative expenses is the auditors’ remuneration, including expenses for audit and non-audit services, payable to the
Company’s auditors PricewaterhouseCoopers LLP and its associates as follows:
2011
£m
2010
£m
Statutory audit services
Annual audit of the Company and the consolidated financial statements 0.6 0.4
Audit of subsidiary companies 1.0 1.0
1.6 1.4
Non-audit-related services
Other services pursuant to legislation 0.1 0.1
Tax advisory services 0.6 0.6
Other services 0.1 0.1
0.8 0.8