National Grid 2010 Annual Report Download - page 49

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National Grid Gas plc Annual Report and Accounts 2009/10 47
4. Exceptional items and remeasurements
2010 2009
£m £m
Exceptional items - restructuring costs (i) (72) (83)
Exceptional items - environmental related provisions (ii) (14) (13)
Exceptional items - other (iii) (43) -
Pension deficit charges (iv) (58) (228)
Total exceptional items included within operating profi
t
(187) (324)
Remeasurements - gains on derivative financial instruments (v) 33 (6)
Total exceptional items and remeasurements included within finance cost
s
33 (6)
Total exceptional items and remeasurements before taxation (154) (330)
Exceptional tax item - deferred tax charge arising from changes to the IBAs regime (vi) -(23)
Tax on exceptional items - restructuring costs (i) 20 23
Tax on exceptional items - other (iii) 8-
Tax on exceptional items - pension deficit charges (iv) 16 81
Tax on remeasurements - derivative financial instruments (v) (10) -
Tax on exceptional items and remeasurements 34 81
Total exceptional items and remeasurements after taxation (120) (249)
Total exceptional items after taxation (143) (243)
Total derivative financial instrument remeasurements after taxation 23 (6)
Total exceptional items and remeasurements after taxation (120) (249)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Remeasurements - gains on derivative financial instruments comprise gains and losses arising on derivative financial instruments reported in the income statement. These
exclude gains and losses for which hedge accounting has been effective, which have been recognised directly in equity or offset by adjustments to the carrying value of deb
t
Restructuring costs include the further restructuring of our Liquefied Natural Gas (LNG) storage facilities of £39m (2009: £50m), transformation related initiatives of £10m
(2009: £20m), costs associated with the outsource of elements of our Shared Services organisation of £9m (2009: £nil), pension curtailment costs as a result of
redundancies of £10m (2009: £9m), and other business reorganisation costs.
Pension deficit charges arise from recovery plan contributions to the National Grid UK Pension Scheme.
Environmental provision related charges include £14m arising from changes in landfill tax legislation in the UK (2009: £8m). The prior year amount included a £5m charge
arising from movements in discount rates due to reductions in market risk free rates.
The exceptional tax charge in the prior period arose from changes to industrial buildings allowances (IBA) in the 2008 Finance Act. This resulted in an increase in deferred
tax liabilities.
Other costs for the year ended 31 March 2010 include £41m related to a fine of £15m together with associated costs, provisions against receivables and other balance sheet
items (2009: £nil). For further details on the fine levied upon NGG by the Gas and Electricity Markets Authority (GEMA) refer to note 24(f).