Marks and Spencer 2000 Annual Report Download - page 40

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38 Marks and Spencer p.l.c.
Notes to the financial statements
22. PROVISION S FOR LIABILITIES AND CHARGES THE GROUP THE COMPANY
£m £m
Post-retirement health benefits
(1)
At 1 April 1999 27.8 27.8
Utilised during the year (2.2) (2.2)
Interest charged 2.1 2.1
At 31 M arch 2000 27.7 27.7
UK and European restructuring(2)
At 1 April 1999 24.0 24.0
Additions during the year 72.0 63.3
Utilised during the year (49.2) (44.7)
Exchange differences (0.1) –
At 31 M arch 2000 46.7 42.6
Canadian closure(3)
At 1 April 1999 2.6 –
Additions during the year 20.4 –
Utilised during the year (19.2) –
Exchange differences 0.2 –
At 31 M arch 2000 4.0 –
Deferred taxation(4)
At 1 April 1999 50.6 44.5
Credited to the profit and loss account (see note 6) (2.0) (1.8)
Exchange differences (0.4) –
At 31 M arch 2000 48.2 42.7
Total at 31 March 2000 126.6 113.0
Total at 31 March 1999 105.0 96.3
(1) The £27.7m provision for post-retirement health benefits represents the estimated value of the Company’s subsidy of the
Marks & Spencer Health Insurance Scheme, in so far as it relates to private medical benefits for retired employees and their
dependants, for whom the Company meets the whole, or part, of the cost (see note 10B for further details).
(2) The provision for UK and European restructuring costs relates to the ongoing costs of restructuring the Group’s UK and European
operations. The balance at 31 March 2000 primarily relates to the restructuring of UK Retail into customer business units and the
refocussing of existing store roles to customer facing activities. The majority of these costs are expected to be incurred during the
next financial year.
(3) The Canadian restructuring costs relate to the costs incurred in closing the Group’s Canadian operations. The balance at 31 March
2000 primarily relates to surplus properties and is expected to be utilised over the next three years.
(4) The deferred tax provision consists of £56.5m (last year £58.9m) arising on short-term timing differences offset by £8.3m (last year
£8.3m) arising on post-retirement health benefits.
Unprovided deferred taxation THE GROUP THE COMPANY
2000 1999 2000 1999
£m £m £m £m
Excess of capital allowances over depreciation on tangible fixed assets 155.7 219.7 141.5 204.3
In the opinion of the directors, the revalued properties will be retained for use in the business and the likelihood of any taxation
liability arising is remote. Accordingly the potential deferred taxation in respect of these properties has not been quantified.
Deferred tax is not provided in respect of liabilities which might arise on the distribution of unappropriated profits of
international subsidiaries.