Tesco 2011 Annual Report Download - page 120

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NOTE 11 PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
£m
Other(a)
£m
Total
£m
Cost
At 27 February 2010 23,385 8,398 31,783
Foreign currency translation (257) (153) (410)
Additions(b) 2,577 697 3,274
Acquisitions through business combinations 22 24 46
Reclassification (673) 301 (372)
Classified as held for sale (110) – (110)
Disposals (1,465) (176) (1,641)
At 26 February 2011 23,479 9,091 32,570
Accumulated depreciation and impairment losses
At 27 February 2010 2,700 4,880 7,580
Foreign currency translation (21) (55) (76)
Charge for the year 412 782 1,194
Impairment losses for the year 20 3 23
Reversal of impairment losses for the year (38) – (38)
Reclassification (199) 3 (196)
Classified as held for sale (29) – (29)
Disposals (140) (146) (286)
At 26 February 2011 2,705 5,467 8,172
Net carrying value(c)(d)(e)
At 26 February 2011 20,774 3,624 24,398
At 27 February 2010 20,685 3,518 24,203
Construction in progress included above(f )
At 26 February 2011 1,267 196 1,463
(a) Other assets consist of plant, equipment, fixtures and fittings and motor vehicles.
(b) Includes £147m (2010 – £155m) in respect of interest capitalised, principally relating
to land and building assets. The capitalisation rate used to determine the amount of
finance costs capitalised during the financial year was 5.1% (2010 – 5.1%). Interest
capitalised is deducted in determining taxable profit in the financial year in which
it is incurred.
(c) Net carrying value includes:
(i) Capitalised interest at 26 February 2011 of £1,084m (2010 – £1,012m (restated)).
(ii) Assets held under finance leases which are analysed below:
2011 2010
Land and
buildings
£m
Other(a)
£m
Land and
buildings
£m
Other(a)
£m
Cost 139 580 139 582
Accumulated depreciation
and impairment losses (24) (462) (36) (430)
Net carrying value 115 118 103 152
These assets are pledged as security for the finance lease liabilities.
(d) The net carrying value of land and buildings comprises:
2011
£m
2010
£m
Freehold 18,094 17,855
Long leasehold – 50 years or more 677 971
Short leasehold – less than 50 years 2,003 1,859
Net carrying value 20,774 20,685
(e) Carrying value of land and buildings includes £2m (2010 – £3m) relating to the
prepayment of lease premiums.
(f) Construction in progress does not include land.
FINANCIAL STATEMENTS
116
—
TESCO PLC Annual Report and Financial Statements 2011
Notes to the Group financial statements