Tesco 2004 Annual Report Download - page 54

52 TESCO PLC
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
NOTE 28 Post-retirement beneÞts other than pensions
The company operates a scheme offering post-retirement healthcare beneÞts. The cost of providing these beneÞts has been
accounted for on a similar basis to that used for deÞned beneÞt pension schemes.
The liability as at 28 February 2004 of £6.5m, which was determined in accordance with the advice of qualiÞed actuaries, is being
spread forward over the service lives of relevant employees. £0.5m has been charged to the proÞt and loss account and £0.4m
of beneÞts were paid. An accrual of £5.4m (2003  £5.3m) is being carried in the balance sheet. It is expected that payments
will be tax deductible, at the companys tax rate, when made.
NOTE 29 Capital commitments
At 28 February 2004 there were commitments for capital expenditure contracted for, but not provided of £501m (2003  £458m),
principally relating to the store development programme.
NOTE 30 Contingent liabilities
The company has irrevocably guaranteed the liabilities as deÞned in section 5(c) of the Republic of Ireland (Amendment Act)
1986, of various subsidiary undertakings incorporated in the Republic of Ireland.
There are a number of contingent liabilities that arise in the normal course of business which if realised are not expected to
result in a material liability to the Group.
NOTE 31 Related party transactions
During the year, there were no material transactions or amounts owed or owing with any of the Groups key management or
members of their close family.
During the year, the Group traded with its joint ventures: Shopping Centres Limited, BLT Properties Limited, Tesco BL Holdings
Limited, Tesco British Land Property Partnership, Tesco Personal Finance Group Limited, Tesco Home Shopping Limited, iVillage UK
Limited (iVillage became a subsidiary in March 2003), dunnhumby Limited, Tesco Mobile Limited, Nutri Centres Limited, Taiwan
Charn Yang Developments Limited, Retail Property Company Limited and Tesco Card Services Limited. During the year, the Group
also traded with its Þve associates: BroadÞelds Management Limited, Clarepharm Limited, GroceryWorks Holdings Inc., Hussmann
(Hungary) Kft and Greenergy Fuels Limited. The main transactions during the year were:
(i) Equity funding of £20m (2003  £4m) in joint ventures and £8m (2003  £7m) in associates.
(ii) The Group made loans to joint ventures of £29m (2003  £43m), and has been repaid loans by joint ventures of £15m
(2003  £5m). New loans of £9m (2003  nil) were made to the Group by joint ventures and the Group repaid £1m
(2003  nil) of loans from joint ventures. The Group has outstanding loan balances due from joint ventures of £120m (2003
 £107m) and outstanding loan balances due to joint ventures of £10m (2003  £2m) at 28 February 2004.
(iii) The Group made purchases of £72m (2003  £81m) from joint ventures and associates, of which £2m (2003  nil) was
still payable as at 28 February 2004.
(iv) The Group has charged joint ventures an amount totalling £63m (2003  £42m) in respect of services, loan interest and
assets transferred, of which nil (2003  £8m) was outstanding at 28 February 2004.
(v) Tesco Stores Limited is a member of one or more partnerships to whom the provisions of the Partnerships and Unlimited
Companies (Accounts) Regulations 1993 apply (Regulations). The accounts for those partnerships have been consolidated into
these accounts pursuant to regulation 7 of the Regulations.