Marks and Spencer 2013 Annual Report Download - page 88

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 86
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:
2013 2012
Management
£m
Adjustment2
£m
Statutory
£m
Management
(Restated)3
£m
Adjustment
(Restated)3
£m
Statutory
£m
General Merchandise 4,090.3 3.6 4,093.9 4,197.3 (2.2) 4,195.1
Food 4,857.5 – 4,857.5 4,673.1 – 4,673.1
UK revenue 8,947.8 3.6 8,951.4 8,870.4 (2.2) 8,868.2
Franchised 392.6 – 392.6 379.4 – 379.4
Owned 682.8 – 682.8 689.4 (2.7) 686.7
International revenue 1,075.4 – 1,075.4 1,068.8 (2.7) 1,066.1
Group revenue 10,023.2 3.6 10,026.8 9,939.2 (4.9) 9,934.3
UK operating profit1661.4 (25.6) 635.8 676.6 (18.6) 658.0
International operating profit 120.2 – 120.2 133.4 (44.9) 88.5
Group operating profit 781.6 (25.6) 756.0 810.0 (63.5) 746.5
Finance income 26.5 – 26.5 32.7 15.6 48.3
Finance costs (142.9) (75.3) (218.2) (136.8) – (136.8)
Profit before tax 665.2 (100.9) 564.3 705.9 (47.9) 658.0
1. UK statutory profit includes £35.6m (last year £50.7m) in respect of fees received from HSBC in relation to M&S Bank (formerly M&S Money). UK management operating profit includes fees in
relation to M&S Bank of £51.1m (last year £50.7m), which reflects a non GAAP adjustment of £15.5m as detailed in note 5.
2. Adjustments to revenue relate to an adjustment for refunds recognised in cost of sales for management accounting purposes. Management profit excludes the adjustments (income or
charges) made to reported profit before tax that are one-off in nature, significant and distort the Group’s underlying performance (see note 5).
3. Following a change in the presentation of internal reporting, management revenue and the corresponding adjustments that reconcile to statutory revenue have been re-presented. Certain
revenue deductions (such as staff discounts and loyalty points) that were previously recognised in management cost of sales are now recognised in management revenue to align with
statutory accounting. There have been no changes to the reported segments.
Other segmental information
2013 2012
UK
£m
International
£m
Total
£m
UK
£m
International
£m
Total
£m
Additions to property, plant and equipment and
intangible assets (excluding goodwill) 761.6 59.7 821.3 671.4 66.1 737.5
Depreciation and amortisation 421.7 28.8 450.5 435.8 34.3 470.1
Impairment and asset write-offs 9.6 7.2 16.8 7.3 50.5 57.8
Total assets 6,120.4 1,447.3 7,567.7 6,247.1 1,026.2 7,273.3
Non-current assets 4,964.1 1,335.7 6,299.8 4,894.6 918.6 5,813.2