Marks and Spencer 2015 Annual Report Download - page 121

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119
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
OUR BUSINESSOUR PERFORMANCE
GOVERNANCEFINANCIAL STATEMENTS
22 PROVISIONS
2015 2014
Property
£m
Restructuring
£m
Other
£m
Total
£m
Total
£m
At start of year 25.1 46.3 4.8 76.2 35.2
Provided in the year 15.2 13.7 4.8 33.7 71.8
Released in the year (3.6) (15.6) (0.1) (19.3) (4.3)
Utilised during the year (15.7) (15.1) (2.0) (32.8) (25.6)
Exchange di erences (0.6) (1.4) – (2.0) (0.9)
Discount rate unwind 0.3 – – 0.3 –
Reclassifi cation from trade and other payables 22.2 – – 22.2 –
At end of year 42.9 27.9 7.5 78.3 76.2
Analysed as:
Current 46.2 44.8
Non-current 32.1 31.4
Property provisions relate to onerous lease contracts and dilapidations primarily arising as a result of the closure of stores in the UK,
China and the Czech Group (see note 5). These provisions are expected to be utilised over the period to the end of each specifi c lease.
Restructuring provisions relate to the estimated costs of several strategic programmes including the closure of four stores in Ireland in the
prior year and the current restructure of the logistics network (see note 5). These provisions are expected to be utilised within seven years.
23 DEFERRED TAX
Deferred tax is provided under the balance sheet liability method using a tax rate of 20% (last year 20%) for UK di erences and local tax rates
for overseas di erences.
The movements in deferred tax assets and liabilities (after o setting balances within the same jurisdiction as permitted by IAS 12 ‘Income
Taxes’) during the year are shown below.
Deferred tax assets/(liabilities):
Land and
buildings
temporary
di erences
£m
Capital
allowances
in excess of
depreciation
£m
Pension
temporary
di erences
£m
Other
short-term
temporary
di erences
£m
Total UK
deferred tax
£m
Overseas
deferred tax
£m
Total
£m
At 31 March 2013 (52.5) (90.6) (96.6) 6.5 (233.2) (7.4) (240.6)
Credited/(charged) to the income statement 3.2 (9.3) (0.8) (12.5) (19.4) (1.9) (21.3)
Credited/(charged) to equity/other comprehensive income – – 0.1 20.9 21.0 (1.7) 19.3
At 29 March 2014 (49.3) (99.9) (97.3) 14.9 (231.6) (11.0) (242.6)
At 30 March 2014 (49.3) (99.9) (97.3) 14.9 (231.6) (11.0) (242.6)
Credited/(charged) to the income statement 2.3 (6.1) (2.3) (4.3) (10.4) 0.4 (10.0)
(Charged)/credited to equity/other comprehensive income – – (55.2) (13.7) (68.9) 7.4 (61.5)
At 28 March 2015 (47.0) (106.0) (154.8) (3.1) (310.9) (3.2) (314.1)
Other short-term temporary di erences relate mainly to employee share options and fi nancial instruments.
The deferred tax liability on land and buildings temporary di erences is reduced by the benefi t of capital losses with a tax value of £48.4m
(last year £46.5m). Due to uncertainty over their future use, no benefi t has been recognised in respect of unexpired trading losses carried
forward in overseas jurisdictions with a tax value of £43.5m (last year £38.7m).
No deferred tax is recognised in respect of undistributed earnings of overseas subsidiaries and joint ventures, unless a material liability is
expected to arise on distribution of these earnings under applicable tax legislation. No deferred tax liability has been recognised in respect
of undistributed earnings of £17.5m with a tax value of £4.4m (last year £13.0m with a tax value of £3.3m) on the basis the distribution can be
controlled by the Group and it is probable that the temporary di erence will not reverse in the foreseeable future.
24 ORDINARY SHARE CAPITAL
2015 2014
Shares £m Shares £m
Issued and fully paid ordinary shares of 25p each
At start of year 1,632,247,974 408.1 1,613,888,192 403.5
Shares issued on exercise of share options 15,566,772 3.9 18,359,782 4.6
At end of year 1,647,814,746 412.0 1,632,247,974 408.1
Issue of new shares
15,567,772 (last year 18,359,782) ordinary shares having a nominal value of £3.9m (last year £4.6m) were allotted during the year under the
terms of the Company’s schemes which are described in note 13. The aggregate consideration received was £40.8m (last year £45.0m).