Marks and Spencer 2009 Annual Report Download - page 92

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Marks and Spencer Group plc Annual report and financial statements 2009 Financial statements
Notes to the financial statements
continued
88
4 Profit before taxation
The following items have been included in arriving at profit before taxation:
2009
£m
2008
£m
Net foreign exchange losses/(gains) 3.6 (8.0)
Depreciation of property, plant, and equipment
– owned assets 371.5 290.4
– under finance leases 10.2 5.9
Amortisation of intangibles 27.3 21.3
Profit on property disposals (6.4) (27.0)
Operating lease rentals payable
– property 200.5 167.5
– fixtures, fittings and equipment 10.1 8.4
Exceptional costs (see note 5) 135.9 –
Exceptional pension credit (see note 5) (231.3) (95.0)
Included in administrative expenses is the auditors’ remuneration, including expenses for audit and non-audit services, payable to the
Company’s auditors PricewaterhouseCoopers and its associates as follows:
2009
£m
2008
£m
Statutory audit services
Annual audit of the Company and the consolidated accounts 0.4 0.3
Audit of subsidiary companies 0.9 0.8
1.3 1.1
Non-audit-related services
Other services pursuant to legislation 0.1 0.3
Tax advisory services 0.3 0.4
Other services 0.2 0.1
0.6 0.8
5 Exceptional items
2009
£m
2008
£m
Property (92.5) –
Logistics, IT and other (32.3) –
People (11.1) –
Exceptional costs (135.9) –
Changes in the UK defined benefit plan 231.3 95.0
Exceptional pension credit 231.3 95.0
The exceptional costs relate to a strategic restructure and are not regular running costs of the underlying business, these include:
– £92.5m property-related costs including onerous lease provisions, property, plant and equipment disposals, leasehold premium write-offs
and decommissioning costs;
– £32.3m costs related to the rationalisation of IT and logistics networks; and
– £11.1m redundancy costs.
The exceptional pension credit has arisen due to changes in the UK defined benefit pension plan relating to how members’ benefits build up.
In January 2009 the Group announced that it had made changes to the scheme by capping employees’ annual increases in pensionable pay
to 1% and changing the early retirement benefits for members who joined the scheme before 1996. There is a credit to the income
statement to reflect the impact of adjusting employees’ projected final pensionable salaries.
Last year the exceptional pension credit arose due to changes in the plan where, to the extent that members chose the option to limit their
future pensionable salary increases to inflation, there was also a credit to the income statement.