Marks and Spencer 2003 Annual Report Download - page 41

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www.marksandspencer.co m 39
11. Pension costs continued
(d) The Group financial statements already reflect a number of liabilities and assets relating to the retirement benefit
schemes which give rise to the net post-retirement liabilities of £893m (last year £293m). If FRS 17 had been adopted
in the financial statements, the net effect of this change on shareholders’ funds would be as follows: 2003 2002
£m £m
Net post-retirement liability (893) (293)
Amounts currently recognised in:
Debtors – prepayments and accrued income (41) (50)
Provisions for liabilities and charges
– unfunded pension plans 45
– post-retirement healthcare 24 25
– deferred tax 46
Effect on shareholders’ funds (902) (307)
The Group’s net assets at 29 March 2003 would be as follows: 2003 2002
£m £m
Net assets, excluding post-retirement liability 3,038 3,081
Effect on shareholders’ funds (above) (902) (307)
Net assets, including post-retirement liability 2,136 2,774
(e) Movements in liability during year: 2003
£m
Post-retirement liability at beginning of year (419)
Current service cost (124)
Cash contribution 133
Other finance income 27
Actuarial loss (893)
Post-retirement liability at end of year (1,276)
(f) History of experience gains and losses (these will be built up over time to give a five year history): 2003 2003
£m %
Actual return less expected return on scheme assets:
Amount (713)
% of scheme assets at end of year 27.1
Experience gains and losses arising on scheme liabilities:
Amount 16
% of scheme liabilities at end of year 0.4
Total amount recognised in statement of total recognised gains and losses:
Amount (893)
% of scheme liabilities at end of year 23.0
12. Directors
A Emoluments
Emoluments of directors of the Company are summarised below. Further details are given in the Remuneration Report on
pages 13 to 20. 2003 2002
£000 £000
Aggregate emoluments 6,838 5,987
Termination payments 451 398
B Transactions with directors
During the year, transactions entered into by Marks and Spencer Financial Services p.l.c. with directors and connected
persons resulted in the following outstanding balances on their combined credit and loyalty cards as at 29 March 2003:
2003 2002
Total Total
No. of balances No. of balances
persons £ persons £
5 11,888 ––
Except as noted above, there was no contract of significance to which the Company, or one of its subsidiaries, was a party
and in which a director of the Company was materially interested during the year.