Marks and Spencer 2015 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2015 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

111
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
OUR BUSINESSOUR PERFORMANCE
GOVERNANCEFINANCIAL STATEMENTS
14 INTANGIBLE ASSETS CONTINUED
Impairment testing continued
The values attributed to the key assumptions are as follows:
Long-term growth rate Pre-tax discount rate
2015
%
2014
%
2015
%
2014
%
per una 2.0 2.0 8.6 11. 0
Marks and Spencer Czech Republic a.s. 1.9 2.5 10.1 13.1
Supreme Trademarks Private Limited (India) 6.8 6.0 15.4 18.3
Marks and Spencer (Hungary) KFT 1.4 1.5 11.0 17. 0
The M&S Mode brands are tested based on the regions operating in the European business which are covered under the brand rights
acquired. The discount rates used to calculate value in use range from 9.3% to 27.9% (last year 13.1% to 28.9%). Cash fl ows beyond the
three-year period have been extrapolated at long-term grow th rates ranging from 1.0% to 4.0% (last year 1.0% to 2.5%).
Sensitivity analysis
Whilst management believes the assumptions are realistic it is possible that an impairment would be identifi ed if any of the above key
assumptions were changed signifi cantly. A sensitivity analysis has been performed on each of these key assumptions with other variables
held constant. Management have concluded that there are no reasonably possible changes in any key assumptions that would cause the
carr ying amount of goodwill or brands to exceed the value in use.
15 PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
£m
Fixtures,
fi ttings and
equipment
£m
Assets in the
course of
construction
£m
Total
£m
At 30 March 2013
Cost 2,817.1 6,198.1 312.4 9,327.6
Accumulated depreciation and asset write-o s(305.5)(3,988.4)– (4,293.9)
Net book value 2,511.6 2,209.7 312.4 5,033.7
Year ended 29 March 2014
Opening net book value 2,511.6 2,209.7 312.4 5,033.7
Additions 34.6 362.7 155.8 553.1
Transfers 41.7 169.1 (210.8) –
Disposals (15.2) (5.3) – (20.5)
Asset impairments (11.6) (13.6) – (25.2)
Asset write-o s (2.7) (1.3) (6.0) (10.0)
Depreciation charge (15.0) (364.7) – (379.7)
Exchange di erence (3.7) (6.6) (1.2) (11.5)
Closing net book value 2,539.7 2,350.0 250.2 5,139.9
At 29 March 2014
Cost 2,871.7 6,686.8 256.2 9,814.7
Accumulated depreciation, impairments and asset write-o s (332.0) (4,336.8) (6.0) (4,674.8)
Net book value 2,539.7 2,350.0 250.2 5,139.9
Year ended 28 March 2015
Opening net book value 2,539.7 2,350.0 250.2 5,139.9
Additions 19.0 213.0 167.8 399.8
Transfers 14.5 268.4 (282.9) –
Disposals (12.5) (0.2) – (12.7)
Asset impairments (13.3) (35.4) – (48.7)
Asset write-o s (1.0) (6.6) (11.4) (19.0)
Depreciation charge (14.8) (385.1) (0.2) (400.1)
Exchange di erence (16.3) (10.0) (1.8) (28.1)
Closing net book value 2,515.3 2,394.1 121.7 5,031.1
At 28 March 2015
Cost 2,855.1 7,066.4 133.3 10,054.8
Accumulated depreciation, impairments and asset write-o s (339.8) (4,672.3) (11.6) (5,023.7)
Net book value 2,515.3 2,394.1 121.7 5,031.1
The net book value above includes land and buildings of £42.7m (last year £43.7m) and equipment of £1.1m (last year £4.2m) where the Group
is a lessee under a fi nance lease.
Additions to property, plant and equipment during the year amounting to £nil (last year £nil) were fi nanced by new fi nance leases.