Tesco 2011 Annual Report Download - page 148

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NOTE 35 CAPITAL RESOURCES
The following table shows the composition of regulatory capital resources of Tesco Personal Finance PLC (TPF), being the regulated entity, at the
balance sheet date:
2011
£m
2010
£m
Tier 1 capital:
Shareholders’ funds and non-controlling interests 761 576
Tier 2 capital:
Qualifying subordinated debt 235 235
Other interests 18 21
Supervisory deductions (365) (263)
Total regulatory capital 649 569
The movement of tier 1 capital during the financial year is analysed as follows:
2011
£m
2010
£m
At beginning of year 576 521
Share capital and share premium 446 230
Profit attributable to shareholders 57 37
Ordinary dividends (162) (153)
Increase in intangible assets (156) (59)
At end of year 761 576
It is Tesco Personal Finance PLC’s (TPF) policy to maintain a strong capital base, to expand it as appropriate and to utilise it efficiently throughout its
activities to optimise the return to shareholders while maintaining a prudent relationship between the capital base and the underlying risks of the
business. In carrying out this policy, TPF has regard to the supervisory requirements of the Financial Services Authority (FSA). TPF has carried
regulatory capital reserves in excess of its capital requirements during the financial year.
NOTE 36 LEASING COMMITMENTS
Finance lease commitments – Group as lessee
The Group has finance leases for various items of plant, equipment, fixtures and fittings. There are also a small number of buildings which are held
under finance leases. The fair value of the Group’s lease obligations approximate to their carrying value.
Future minimum lease payments under finance leases and hire purchase contracts, together with the present value of the net minimum lease
payments, are as follows:
Minimum lease payments
Present value of
minimum lease payments
2011
£m
2010
£m
2011
£m
2010
£m
Within one year 56 49 50 45
Greater than one year but less than five years 81 101 44 90
After five years 206 178 104 74
Total minimum lease payments 343 328 198 209
Less future finance charges (145) (119)
Present value of minimum lease payments 198 209
Analysed as:
Current finance lease payables 50 45
Non-current finance lease payables 148 164
198 209
FINANCIAL STATEMENTS
144
—
TESCO PLC Annual Report and Financial Statements 2011
Notes to the Group financial statements