Marks and Spencer 2001 Annual Report Download - page 37

22. Provisions for liabilities and charges The Group The Company
£m £m
Post-retirement health benefits1
At 1 April 2000 27.7 27.7
Utilised during the year (1.8) (1.8)
Interest charged 1.8 1.8
At 31 March 2001 27.7 27.7
UK restructuring2,5
At 1 April 2000 42.6 42.6
Additions during the year 30.1 30.1
Utilised during the year (29.5) (29.5)
At 31 March 2001 43.2 43.2
Overseas restructuring3,5
At 1 April 2000 8.1 –
Additions during the year 194.5 8.6
Utilised during the year (1.7) –
Exchange differences 0.4 –
At 31 March 2001 201.3 8.6
Deferred tax4
At 1 April 2000 48.2 42.7
Credited to the profit and loss account (see note 6) (5.0) (3.0)
Exchange differences 0.3 –
At 31 March 2001 43.5 39.7
Total at 31 March 2001 315.7 119.2
Total at 31 March 2000 126.6 113.0
1The £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).
2The provision for UK restructuring costs relates to the ongoing costs of restructuring the Group’s UK operations. The balance at 31 March 2001 primarily
relates to the ongoing restructuring of the Group’s head office functions and ‘Direct’ operations. The majority of these costs are expected to be incurred
during the next financial year.
3The provision for Overseas restructuring costs primarily relates to the costs expected to be incurred in respect of the intended closure of the Group’s
operations in Continental Europe. The balance at 31 March 2001 primarily relates to redundancy costs and future trading losses, the majority of which are
expected to be incurred during the next financial year.
4The deferred tax provision consists of £51.8m (last year £56.5m) arising on short-term timing differences offset by £8.3m (last year £8.3m) arising on post-
retirement health benefits.
5Since last year, the analysis of provisions has been revised to show UK and Overseas restructuring costs separately. The brought-forward provision for
Overseas restructuring consists of £4.1m and £4.0m in respect of Europe and Canada respectively.
Unprovided deferred tax The Group The Company
2001 2000 2001 2000
£m £m1£m £m1
Excess of capital allowances over depreciation on tangible fixed assets 79.6 72.8 66.4 58.5
1The comparatives for 2000 for the Group and the Company have been restated following a reassessment of the quantum of the book value of fit out on which
capital allowances have been claimed.
In December 2000 the Accounting Standards Board issued FRS 19 ‘Deferred Tax’. This FRS requires deferred tax to be provided
for on a ‘full provision’ basis. The Group will adopt this standard for the year ended 31 March 2002.
In the opinion of the directors, any taxable gains arising on the disposal of revalued properties will be covered by brought
forward tax losses and rollover relief. Accordingly, the potential deferred tax in respect of these properties has not been
quantified in the above analysis.
Deferred tax is not provided in respect of liabilities which might arise on the distribution of unappropriated profits of
international subsidiaries.
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