Tesco 2011 Annual Report Download - page 145

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NOTE 30 RELATED PARTY TRANSACTIONS
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this
note. Transactions between the Group and its joint ventures and associates are disclosed below:
Trading transactions
Sales to
related parties
Purchases from
related parties
Amounts owed
by related parties
Amounts owed
to related parties
2011
£m
2010
£m
2011
£m
2010
£m
2011
£m
2010
£m
2011
£m
2010
£m
Joint ventures 281 154 449 360 18 6418
Associates 3–1,104 886 6––24
Sales to related parties consists of services/management fees and loan interest.
Purchases from related parties include £306m (2010 – £226m) of rentals payable to the Group’s joint ventures, including those joint ventures formed
as part of the sale and leaseback programme.
Purchases from associates include £1,104m (2010 – £886m) of fuel purchased from Greenergy International Limited.
Non-trading transactions
Sale and leaseback
of assets
Loans to
related parties
Loans from
related parties
Injection of
equity funding
2011
£m
2010
£m
2011
£m
2010
£m
2011
£m
2010
£m
2011
£m
2010
£m
Joint ventures 1,652 933 502 309 26 23 94 83
Associates ––1–––69 –
Transactions between the Group and the Group’s pension plans are disclosed in note 28.
A number of the Group’s subsidiaries are members of one or more partnerships to whom the provisions of the Partnerships (Accounts) Regulations 2008
(‘Regulations’) apply. The accounts for those partnerships have been consolidated into these accounts pursuant to Regulation 7 of the Regulations.
On 7 July 2010, the Group formed a limited partnership with Tesco Pension Trustees. The limited partnership contains 41 stores which have been sold
from and leased back to the Group. The Group sold assets for proceeds of £958m to the limited partnership. The Group’s share of the profit realised
from this transaction is included within profit arising on property-related items.
On 9 February 2011, the Group formed a limited partnership with Tesco Pension Trustees. The limited partnership contains 21 stores and one mall
under development which have been sold from and leased back to the Group. The Group sold assets for proceeds of £685m to the limited partnership.
The Group’s share of the profit realised from this transaction is included within profit arising on property-related items.
Transactions with key management personnel
Only members of the Board of Directors of Tesco PLC are deemed to be key management personnel. It is the Board who have responsibility for
planning, directing and controlling the activities of the Group. Key management personnel compensation is disclosed in the audited section of the
Directors’ Remuneration Report.
Transactions on an arm’s length basis with Tesco Bank during the financial year were as follows:
Credit card and
personal loan balances Saving deposit accounts
Number of key
management
personnel £m
Number of key
management
personnel
£m
At 26 February 2011 7 – 10 1
At 27 February 2010 – – 4 1
During the current and prior financial years, there were no other material transactions or balances between the Group and its key management
personnel or their close family members.
Overview Business review Governance Financial statements
TESCO PLC Annual Report and Financial Statements 2011
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