Marks and Spencer 2012 Annual Report Download - page 84

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 82
Notes to the financial statements continued
2 Segmental information
IFRS 8 requires operating segments to be identified on the basis of internal reporting on components of the Group that are
regularly reviewed by the chief operating decision maker to allocate resources to the segments and to assess their performance.
The chief operating decision maker has been identified as the executive directors. The executive directors review the
Group’s internal reporting in order to assess performance and allocate resources, across each operating segment. The
operating segments are UK and International which are reported in a manner consistent with the internal reporting to the
executive directors.
The UK segment consists of the UK retail business and UK franchise operations. The International segment consists of
Marks & Spencer owned businesses in the Republic of Ireland, Europe and Asia, together with international franchise operations.
The executive directors assess the performance of the operating segments based on a measure of operating profit. This measurement
basis excludes the effects of non-underlying items from the operating segments. Central costs are all classified as UK costs and
presented within UK operating profit. The executive directors also monitor revenue within the segments. To increase transparency, the
Group has decided to include an additional voluntary disclosure analysing revenue within the reportable segments, by subcategory.
The following is an analysis of the Group’s revenue and results by reportable segment:
2012 2011
Management
£m
Adjustment2
£m
Statutory
£m
Management
£m
Adjustment2
£m
Statutory
£m
General Merchandise 4,241.5 (46.4) 4,195.1 4,273.0 (39.4) 4,233.6
Food 4,718.8 (45.7) 4,673.1 4,543.9 (44.5) 4,499.4
UK revenue 8,960.3 (92.1) 8,868.2 8,816.9 (83.9) 8,733.0
Franchised 379.4 – 379.4 343.7 – 343.7
Owned 689.4 (2.7) 686.7 665.8 (2.2) 663.6
International revenue 1,068.8 (2.7) 1,066.1 1,009.5 (2.2) 1,007.3
Group revenue 10,029.1 (94.8) 9,934.3 9,826.4 (86.1) 9,740.3
UK operating profit1 676.6 (18.6) 658.0 677.9 1.1 679.0
International operating profit 133.4 (44.9) 88.5 147.0 10.9 157.9
Group operating profit 810.0 (63.5) 746.5 824.9 12.0 836.9
Finance income 32.7 15.6 48.3 42.3 54.3 96.6
Finance costs (136.8) – (136.8) (152.9) – (152.9)
Profit before tax 705.9 (47.9) 658.0 714.3 66.3 780.6
1 UK operating profit includes a contribution of £50.7m (last year £35.2m) in respect of fees received from HSBC in relation to M&S Money.
2 Adjustments to revenue relate to revenue deductions recognised in cost of sales for management accounting purposes. Management profit excludes profits and losses on the disposal of
properties, impairment charges, pension credits arising on changes of the defined benefit pension schemes, non-cash fair value movements in financial instruments and costs relating to
strategic changes that are not considered normal operating costs of the underlying business (see note 5).
Other segmental information
2012 2011
UK
£m
International
£m
Total
£m
UK
£m
International
£m
Total
£m
Additions to property, plant and equipment
and intangible assets (excluding goodwill) 671.4 66.1 737.5 463.6 27.9 491.5
Depreciation and amortisation 435.8 34.3 470.1 434.5 33.0 467.5
Impairment and asset write-offs 7.3 50.5 57.8 3.4 – 3.4
Total assets 6,247.1 1,026.2 7,273.3 6,287.6 1,056.5 7,344.1
Non-current assets 4,894.6 918.6 5,813.2 4,751.1 951.3 5,702.4