Carphone Warehouse 2003 Annual Report Download - page 37

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35
The Carphone Warehouse Group PLC Annual Report 2003
20 Derivatives and other financial instruments continued
(v) Fair values
The book and fair values of the Group’s financial assets and liabilities at 29 March 2003 are as follows:
2003 2002
Book value Fair value Book value Fair value
£m £m £m £m
Financial assets
Cash 47.0 47.0 20.7 20.7
Short-term investments 26.3 26.5 49.2 49.9
Financial liabilities
Loans and overdrafts (44.1) (44.1) (35.3) (35.3)
Interest rate swaps –(0.1) – (0.1)
Forward foreign currency contracts – (0.8) – 0.8
Cash, deposits and loans and overdrafts falling due within one year have been included at carrying value; other fair values have been arrived at by
discounting future cashflows, assuming no early redemption, or marking deals to year-end market or rates as appropriate to the instrument.
(vi) Gains and losses on hedges
At 29 March 2003, the Group had unrecognised net losses of £0.9m (2002 – net gains of £0.7m), of which £0.8m arose from timing differences
connected with currency hedging. Unrecognised losses of £0.1m are expected to be recognised in the period ending 27 March 2004 and the
remainder in future periods.
21 Provisions for liabilities and charges
Insurance funds Restructuring
and reserves provisions Deferred tax Other Total
Group £’000 £’000 £’000 £’000 £’000
At 30 March 2002 13,159 21,399 1,264 11,661 47,483
Acquisition of subsidiary undertakings – – (1,477) – (1,477)
Charge to profit and loss account 30,943 – 2,913 14,251 48,107
Utilised in the period (30,760) (10,333) – (15,795) (56,888)
Foreign exchange – 419 – 312 731
At 29 March 2003 13,342 11,485 2,700 10,429 37,956
Insurance funds and reserves
Insurance provisions represent unearned premium income and the anticipated costs of policy holder claims.
Restructuring provisions
As detailed in note 6a, during the period ended 30 March 2002, the Group provided for the exceptional cost of reorganising its operations
across Europe.
Deferred tax
Details of movements on the deferred tax provision are given in note 22.
Other
Other provisions include provisions against sales, principally being the anticipated costs of product warranties and customer returns, and all other
provisions, principally being the anticipated costs of outstanding legal, tax and other disputes.
22 Deferred tax
2003 2002
Group £’000 £’000
Deferred tax liabilities
Accelerated capital allowances (468) (1,698)
Other timing differences (2,232) 434
(2,700) (1,264)
Deferred tax assets
Other timing differences 1,132 1,446
1,132 1,446
Tota l (1,568) 182
23 Share capital
2003 2002 2003 2002
Group and Company million million £’000 £’000
Authorised
Ordinary shares of 0.1p each 1,000 1,000 1,000 1,000
Allotted, called-up and fully paid
Ordinary shares of 0.1p each 873 835 873 835
The Company issued 37.5m shares in respect of certain acquisitions during the period, as detailed in note 14. Other movements in share capital
arise from the exercise of share options.