Tesco 2008 Annual Report Download - page 95

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Tesco PLC Annual Report and
Financial Statements 2008 93
Note 30 Analysis of changes in net debt
Restated Other
At 24 Feb At 24 Feb non-cash At 23 Feb
2007 Adjustment12007 Cash flow movements 2008
£m £m £m £m £m £m
Cash and cash equivalents 1,042 – 1,042 801 (55) 1,788
Short-term investments – – – 360 – 360
Finance lease receivables 12 – 12 (7) – 5
Joint venture loan receivables – 163 163 36 (26) 173
Derivative financial instruments 108 – 108 (16) 221 313
Cash and receivables 1,162 163 1,325 1,174 140 2,639
Bank and other borrowings (1,518) – (1,518) 61 (576) (2,033)
Finance lease payables (36) – (36) 28 (43) (51)
Derivative financial instruments and other liabilities (87) – (87) 365 (721) (443)
Debt due within one year (1,641) – (1,641) 454 (1,340) (2,527)
Bank and other borrowings (3,999) – (3,999) (2,173) 415 (5,757)
Finance lease payables (147) – (147) (108) 40 (215)
Derivative financial instruments and other liabilities (399) – (399) 23 54 (322)
Debt due after one year (4,545) – (4,545) (2,258) 509 (6,294)
(5,024) 163 (4,861) (630) (691) (6,182)
1 The measurement of net debt has been revised to include loans receivable from joint ventures. Going forward net debt will be stated inclusive of the loans receivable from joint ventures.
Note 31 Commitments and contingencies
Capital commitments
At 23 February 2008 there were commitments for capital expenditure contracted for, but not provided, of £1,309m (2007 – £2,003m), principally relating
to the store development programme.
Contingent liabilities
The Company has irrevocably guaranteed the liabilities, as defined in Section 5(c) of the Republic of Ireland (Amendment Act) 1986, of various subsidiary
undertakings incorporated in the Republic of Ireland.
Tesco Personal Finance, in which the Group owns a 50% joint venture share, has commitments, as described in its own financial statements as at
31 December 2007, of formal standby facilities, credit lines and other commitments to lend, totalling £5.9bn (2007 – £5.5bn). The amount is intended
to provide an indication of the volume of business transacted and not of the underlying credit or other risks.
For details of assets held under finance leases, which are pledged as security for the finance lease liabilities, see note 11.
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. The Group recognises provisions for liabilities when it is more likely than not a settlement will be required and the value of such a payment
can be reliably estimated.
In September 2007, the Office of Fair Trading issued its provisional findings in its Statement of Objections relating to the alleged collusion between
certain large supermarkets and dairy processors. We continue to defend our case vigorously. No provision has been recognised in the Group’s results.