Tesco 2015 Annual Report Download - page 110

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Note 11 Property, plant and equipment
Land and
buildings
£m
Other(a)
£m
Total
£m
Cost
At 22 February 2014 25,734 10, 851 36,585
Foreign currency translation (314) (106) (420)
Additions(b) 799 840 1,639
Acquired through business combinations – 3 3
Reclassification (591) 152 (439)
Classified as held for sale 30 (18) 12
Disposals (360) (229) (589)
At 28 February 2015 25,298 11,493 36,791
Accumulated depreciation and impairment losses
At 22 February 2014 4,985 7,110 12,095
Foreign currency translation (186) (96) (282)
Depreciation charge 446 847 1,293
Impairment charge 3,029 1,263 4,292
Reversal of impairment charge (169) (7) (176)
Reclassification (358) –(358)
Classified as held for sale (86) (16) (102)
Disposals (232) (179) (411)
At 28 February 2015 7,429 8,922 16,351
Net carrying value(c)(d)
At 28 February 2015 17,869 2,571 20,440
At 22 February 2014 20,749 3,741 24,490
Construction in progress included above(e)
At 28 February 2015 271 71 342
At 22 February 2014 612 80 692
(a) Other assets consist of plant, equipment, fixtures and fittings and motor vehicles.
(b)
Includes £44m (2014: £79m) 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 4.4% (2014: 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 28 February 2015 of £820m (2014: £1,208m).
(ii) Assets held under finance leases which are analysed below:
2015 2014
Land and
buildings
£m
Other(a)
£m
Land and
buildings
£m
Other(a)
£m
Cost 137 575 151 558
Accumulated depreciation and impairment losses (61) (532) (50) (529)
Net carrying value 76 43 101 29
These assets are pledged as security for the finance lease liabilities.
(d) The net carrying value of land and buildings comprises:
2015
£m
2014
£m
Freehold 15,649 18,430
Long leasehold – 50 years or more 607 662
Short leasehold – less than 50 years 1,613 1,657
Net carrying value 17, 869 20,749
(e) Construction in progress does not include land.
In the current year the Group reclassified property, plant and equipment with a net book value of £81m to development properties in inventories.
108 Tesco PLC Annual Report and Financial Statements 2015
Notes to the Group financial statements continued