Marks and Spencer 2016 Annual Report Download - page 122

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120
MARKS AND SPENCER GROUP PLC
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
26 CONTINGENCIES AND COMMITMENTS CONTINUED
C. Commitments under operating leases
The Group leases various stores, o ces, warehouses and equipment under non-cancellable operating lease agreements. The leases have
varying terms, escalation clauses and renewal rights.
2016
£m
2015
£m
Total future minimum rentals payable under non-cancellable operating leases are as follows:
Within one year 311.3 291.6
– Later than one year and not later than fi ve years 1,108.4 1,074.1
– Later than fi ve years and not later than ten years 1,099.4 1,091.0
– Later than ten years and not later than 15 years 542.8 549.3
– Later than 15 years and not later than 20 years 351.9 348.8
– Later than 20 years and not later than 25 years 225.8 242.2
– Later than 25 years 970.3 1,074.3
Total 4,609.9 4,671.3
The total non-cancellable future sublease payments to be received are £36.1m (last year £41.2m).
27 ANALYSIS OF CASH FLOWS GIVEN IN THE STATEMENT OF CASH FLOWS
Cash fl ows from operating activities
2016
£m
2015
£m
Profi t on ordinary activities after taxation 404.4 481.7
Income tax expense 84.4 118 . 3
Finance costs 116 . 4 11 6 . 8
Finance income (21.1) (15.5)
Operating profi t 584.1 701.3
(Increase)/decrease in inventories (22.5) 45.7
Decrease/(increase) in receivables 3.3 (13.0)
Increase in payables 32.4 87.6
Non-underlying operating cash (outfl ows)/infl ows (12.9) 28.6
Depreciation, amortisation and underlying asset impairments and write-o s 576.8 550.1
Share-based payments 16.0 (1.1)
Pension costs charged against operating profi t 102.0 85.4
Cash contributions to pension schemes (118.4) (143.0)
Non-underlying non-cash items (50.3) (53.7)
Non-underlying operating profi t items 200.8 61.2
Cash generated from operations 1,311.3 1,349.1
28 ANALYSIS OF NET DEBT
A . Re co nci lia tio n of movemen t i n net de b t
At
29 March 2015
£m
Cash fl ow
£m
Exchange and
other non-cash
movements
£m
At
2 April 2016
£m
Net cash
Bank loans, overdrafts and syndicated bank facility (see note 20) (279.0) (16.7) (1.6) (297.3)
Less: amounts treated as fi nancing (see below) 260.9 (16.8) 1.6 245.7
(18.1) (33.5) – (51.6)
Cash and cash equivalents (see note 18) 205.9 38.0 3.7 247.6
Net cash per statement of cash fl ows 187.8 4.5 3.7 196.0
Current fi nancial assets (see note 16) 11. 6 7. 2 0 . 3 19.1
Debt fi nancing
Bank loans, and overdrafts treated as fi nancing (see above) (260.9) 16.8 (1.6) (245.7)
Medium-term notes (see note 20) (1,611.8) – (2.0) (1,613.8)
Finance lease liabilities (see note 20) (48.6) 2.4 (2.4) (48.6)
Partnership liability to the Marks & Spencer UK Pension Scheme (see note 12) (501.3) 56.0 – (445.3)
Debt fi nancing (2,422.6) 75.2 (6.0) (2,353.4)
Net debt (2,223.2) 86.9 (2.0) (2,138.3)