Tesco 1998 Annual Report Download - page 33

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Note 20 Provisions for liabilities and charges
At 22 February 1997
Integration costs charged in the year
Amount utilised in year (a)
At 28 February 1998
Details of the integration costs are included in note 2.
a) Deferred taxation includes £3m disposed of as part of the sale of Catteau S.A. (see note 32).
3 1
Currency
Sterling
Irish punt
Other
Total
The currency value shown is the year end value.
Other significant financial instruments outstanding at the year end are £77m nominal value forward foreign exchange contracts
hedging the cost of foreign currency denominated purchases. On a mark-to-market basis these contracts show a profit of nil.
Currency analysis of net assets
The Group’s net assets by currency on 28 February 1998 were:
Net assets
before financing
£m
5,014
127
151
5,292
Gross
debt
£m
(1,219)
(182)
(15)
(1,416)
Financing
1998
£m
3,795
(55)
136
3,876
1997
£m
3,796
–
94
3,890
Net investment
Note 19 Financial instruments c o n t i n u e d
Long-term debt over one year with a book value of £792m (1997 – £588m) has an estimated current value, considering only the
movements in risk-free interest rates, of £866m (1997 – £629m). The difference between the book value and the current value of this
long-term debt is partially offset by the deferred realised gain on the swaps.
Deferred taxation – Group
Excess capital allowances over depreciation
Capital gains deferred by rollover relief
Short term timing differences
Deferred taxation balances in Tesco PLC relate to short term timing differences.
Where possible taxation on capital gains has been or will be deferred by rollover relief under the provisions of the Taxation of
Chargeable Gains Act 1992.
1998
£m
–
–
6
6
1997
£m
10
–
10
20
Amount provided
1998
£m
312
–
(8)
304
1997
£m
294
1
10
305
Potential amount
for deferred tax on
all timing differences
Total
£m
20
67
(49)
38
Deferred
taxation
£m
20
–
(14)
6
Integration
costs
£m
–
67
(35)
32