BT 2015 Annual Report Download - page 163

161
Overview
The Strategic Report
Purpose and strategy Delivering our strategy Group performance Governance Financial statements
Additional information
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Year ended 31 March
2015
£m
2014
£m
2013
£m
5HYHQXH
Retrospective regulatory rulings 1 –236
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Restructuring charges 315 276 204
Property rationalisation costs 45 – –
rofit on disposal of propert  ––
rofit on disposal of businesses  –
Retrospective regulatory matters 75 – 1
EE related acquisition costs 19––
Impairment charges ––18
Provisions for claims – – 43
381 276 116
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nterest epense on retireent benefit obliation 292 235 117
 related financin costs 7––
Interest on provisions for claims – – 2
299 235 119
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rofit loss on disposal of interest in associates and oint ventures  410
1HWVSHFLƬFLWHPVFKDUJHEHIRUHWD[ 527 515 341
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a credit on specific ites above 11 111 1
Tax credit on re-measurement of deferred tax –0 10
  
1HWVSHFLƬFLWHPVFKDUJHDIWHUWD[ 406 196 111
5HWURVSHFWLYHUHJXODWRU\UXOLQJV – in July 2014 the Supreme Court overturned a Court of Appeal judgment, made in July 2012, which had
disallowed our ladder pricin polic relatin to 000 0 and 00 calls fro obile phones terinatin on our networ. n 011 we had
reconised specific ite chares of  and  aainst revenue and  respectivel relatin to this atter. n 011 we reconised
revenue and EBITDA of £128m, being the prior year impacts of ladder pricing agreements with the UK mobile operators following the Supreme
Court judgment.
5HVWUXFWXULQJFKDQJHV  the coponents of the restructurin chares reconised in 011 011 and 011 were people and propert
chares of 9 011 1 011 1 principall coprisin leaver costs of  propert eit costs and networs products
and procureent channels rationalisation chares of 1 011 9 011 1.
3URSHUW\UDWLRQDOLVDWLRQFRVWV – we recognised a £45m charge increasing onerous lease provisions relating to the rationalisation of the group’s
property portfolio.
3URƬWRQGLVSRVDORISURSHUW\ – in February 2015 we disposed of a surplus building in London, Keybridge House, for a consideration of £93m
resultin in a profit of .
5HWURVSHFWLYHUHJXODWRU\PDWWHUV – in uust 01 the opetition ppeal ribunal  handed down udent on various appeals brouht
against a December 2012 Ofcom determination on the pricing of certain Ethernet products. We disagree with the CAT’s judgment and have applied
for permission to appeal to the Court of Appeal. Ofcom had determined that BT had overcharged for certain services between 1 April 2006 and
31March 2011 and required BT to make repayments. The CAT judged that BT should also pay interest on these amounts. Together with a review of
our reulator ris position in relation to other historical atters we have reconised a specific ite chare of . n 011 we had reconised
charges of £151m and £36m against revenue and EBITDA respectively, following Ofcom’s determinations on historic Ethernet pricing.
((UHODWHGDFTXLVLWLRQDQGƬQDQFLQJFRVWV  transaction costs of 19 were incurred relatin to the planned acuisition of  and debt financin
fees of £7m were incurred setting up a £3.6bn acquisition facility.
3URYLVLRQVIRUFODLPV – the group makes provision for legal or constructive obligations arising from insurance, litigation and regulatory risks.
rovisions increased b  in 011 havin reassessed potential clais relatin to certain historical atters.
,QWHUHVWH[SHQVHRQUHWLUHPHQWEHQHƬWREOLJDWLRQV– see note 19 for more details.
3URƬWRUORVVRQGLVSRVDORILQWHUHVWLQDVVRFLDWHVDQGMRLQWYHQWXUHV  in 011 we reconised a  profit on the disposal of an associate
Accommodation Services Holdings, which was held at £nil cost. n 011 we reconised a profit of 10 as a result of the disposal of the roups
remaining interest in its associate Tech Mahindra, which was held at a carrying value of £127m at 31 March 2012.
7D[FUHGLWRQUHPHDVXUHPHQWRIGHIHUUHGWD[ – see note 9 for more details.