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95
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
OUR BUSINESSOUR PERFORMANCEGOVERNANCEFINANCIAL STATEMENTS
2 SEGMENTAL INFORMATION
IFRS 8 requires operating segments to be identifi ed 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 identifi ed 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 profi t. This measurement
basis excludes the e ects of non-underlying items from the operating segments. The executive directors also monitor revenue within
the segments and gross profi t within the UK segment. To increase transparency, the Group has decided to include an additional voluntary
disclosure analysing revenue within the reportable segments by subcategory and gross profi t within the UK segment by subcategory.
The following is an analysis of the Group’s revenue and results by reportable segment:
53 weeks ended 2 April 2016 52 weeks ended 28 March 2015
Management
£m
Adjustment¹
£m
Non-
underlying
Items2
£m
Statutory
£m
Management
£m
Adjustment¹
£m
Non-
underlying
Items2
£m
Statutory
£m
Clothing & Home revenue 3,961.3 – – 3,961.3 3,987.4 1.0 – 3,988.4
Food revenue 5,509.5 – – 5,509.5 5,234.7 – – 5,234.7
UK revenue 9,470.8 – – 9,470.8 9,222.1 1.0 – 9,223.1
Franchised 329.7 – – 329.7 341.3 – – 341.3
Owned 754.9 – – 754.9 747.0 – – 747.0
International revenue 1,084.6 – – 1,084.6 1,088.3 – – 1,088.3
Group revenue 10,555.4 – – 10,555.4 10,310.4 1.0 – 10,311.4
Clothing & Home gross profi t 2,180.7 2,098.9
Food gross profi t 1,806.2 1,718.5
UK gross profi t 3,986.9 (300.9) – 3,686.0 3,817.4 (293.4) – 3,524.0
UK operating costs (3,320.1) 300.9 (49.1) (3,068.3) (3,207.4) 293.4 (15.8) (2,929.8)
M&S Bank 59.9 – (50.3) 9.6 60.2 – (13.8) 46.4
UK operating profi t 726.7 – (99.4) 627.3 670.2 – (29.6) 640.6
International operating profi t/(loss) 58.2 – (101.4) (43.2) 92.3 – (31.6) 60.7
Group operating profi t784.9–(200.8)584.1762.5 – (61.2) 701.3
Finance income 21.1 – – 21.1 15.5 – – 15.5
Finance costs (116.4) – – (116.4) (116.8) – – (116.8)
Profi t before tax 689.6 – (200.8) 488.8 661.2 – (61.2) 600.0
1. Adjustments to revenue in the prior year relate to refunds recognised in cost of sales for management accounting purposes (last year £1.3m credit) and an adjustment for agency
transactions presented gross in management accounts (last year £0.3m charge). In the current year these adjustments are refl ected in the management number. Management gross
profi t for the UK segment excludes certain expenses resulting in an adjustment between cost of sales and selling and administrative expenses of £300.9m (last year £293.4m).
2. Management profi t excludes the adjustments (income or charges) made to reported profi t before tax that are one-o in nature, signifi cant and distort the Group’s underlying
performance (see note 5).
Other segmental information
2016 2015
UK
£m
International
£m
Total
£m
UK
£m
International
£m
Total
£m
Additions to property, plant and equipment
and intangible assets (excluding goodwill) 624.9 20.0 644.9 544.4 33.4 577.8
Depreciation and amortisation 531.9 30.9 562.8 490.8 32.0 522.8
Impairment and asset write-o s 60.8 98.8 159.6 36.0 35.3 71.3
Total assets 8,062.3 414.1 8,476.4 7,763.2 432.9 8,196.1
Non-current assets 6,751.9 263.1 7,015.0 6,424.0 317.1 6,741.1