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118
MARKS AND SPENCER GROUP PLC
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
22 PROVISIONS
Property
£m
Restructuring
£m
Other
£m
2016
£m
2015
£m
At 28 March 2015 42.9 27.9 7.5 78.3 76.2
Provided in the year 29.0 7.4 3.6 40.0 33.7
Released in the year (9.9) (15.6) (6.0) (31.5) (19.3)
Utilised during the year (10.3) (10.0) (1.3) (21.6) (32.8)
Exchange di erences 0.3 0.1 – 0.4 (2.0)
Discount rate unwind 0.4 – – 0.4 0.3
Reclassifi cation from trade and other payables ––––22.2
At 2 April 2016 52.4 9.8 3.8 66.0 78.3
Analysed as:
Current 14.0 46.2
Non-current 52.0 32.1
Property provisions relate to onerous lease contracts and dilapidations primarily arising as a result of the closure of stores in the UK and
Western Europe. 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, the current restructure of the logistics network
and the closure of the Balkans operations (see note 5). These provisions are expected to be utilised within fi ve years.
23 DEFERRED TAX
Deferred tax is provided under the balance sheet liability method using the tax rate at which the balances are expected to unwind of 20%,
19% and 18% as applicable (last year 20%) for UK di erences and local tax rates for overseas di erences. Details of the changes to the UK
corporation tax rate and the impact on the Group are described in note 7.
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 30 March 2014 (49.3) (99.9) (97.3) 14.9 (231.6) (11.0) (242.6)
Credited/(charged) to 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)
At 29 March 2015 (47.0) (106.0) (154.8) (3.1) (310.9) (3.2) (314.1)
Credited/(charged) to the income statement 6.4 25.9 0.7 3.0 36.0 (2.5) 33.5
(Charged)/credited to equity/other comprehensive income – – (51.4) (1.8) (53.2) 2.4 (50.8)
Other balance sheet movement (6.2) – – – (6.2) – (6.2)
At 2 April 2016 (46.8) (80.1) (205.5) (1.9) (334.3) (3.3) (337.6)
Other short-term temporary di erences relate mainly to employee share options and fi nancial instruments.
Other balance sheet movements, categorised as land and building temporary di erences, relate to recognition of a deferred tax liability on
the acquisition of the remaining 50% stake in the Lima (Bradford) S.à r.l joint venture.
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 £49.9m
(last year £48.4m). 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 £22.3m (last year £43.5m).
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. There is a potential tax liability in respect of
undistributed earnings of £5.4m (last year £4.4m) however this has not been recognised on the basis the distribution can be controlled
by the Group.