Tesco 2000 Annual Report Download - page 40

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TESCO PLC
38
NOTE 27 Post-retirement benefits other than pensions
The company operates a scheme offering post-retirement healthcare benefits.The cost of providing for these benefits has been accounted
for on a basis similar to that used for defined benefit pension schemes.
The liability as at 24 February 1996 of £10m, which was determined in accordance with the advice of qualified actuaries, is being spread
forward over the service lives of relevant employees and £1m (1999 – £1m) has been charged to the profit and loss account. An amount of £4m
(1999 – £3m) is being carried in the balance sheet. It is expected that payments will be tax deductible, at the company’s tax rate, when made.
NOTE 28 Capital commitments
At 26 February 2000 there were commitments for capital expenditure contracted for but not provided of £303m (1999 – £260m).
NOTE 29 Contingent liabilities
Certain bank loans and overdraft facilities of joint ventures have been guaranteed by Tesco PLC. At 26 February 2000, the amounts
outstanding on these facilities were £16m (1999 – £15m).
The company has irrevocably guaranteed the liabilities as defined in Section 5(c) of the Republic of Ireland (Amendment Act) 1986
of various subsidiary undertakings incorporated in the Republic of Ireland.
NOTE 30 Related party transactions
During the year there were no material transactions or amounts owed or owing with any of the Group’s key management or members
of their close family.
During the year the Group traded with its eight joint ventures: Shopping Centres Limited, BLT Properties Limited, Tesco British Land Property
Partnership,Tesco BL Holdings Limited, Tesco Personal Finance Group Limited, Tesco Personal Finance Life Limited,Tesco Personal Finance
Investments Limited and Tesco Home Shopping Limited.The main transactions during the year were:
i Equity funding of £42m (£41m in Tesco Personal Finance Group Limited and £1m in Tesco Home Shopping Limited).
ii The sale of nine properties formerly held in the British Land Property Partnership to subsidiaries of Tesco BL Holdings Limited, a limited
company owned 50:50 by Tesco PLC and British Land PLC. A bank loan of £210m was raised against the properties and the company
received £105m, reducing the aggregate investment by Tesco in the Property Partnership and the new joint venture to £63m. Additionally, the
Group made rental payments of £16m (1999 – £13m) to Tesco British Land Property Partnership.
iii The Group made rental payments of £3m (1999 – £3m) and £11m (1999 – £11m) to Shopping Centres Limited and BLT Properties Limited
respectively.
iv The Group has charged Tesco Personal Finance Limited (a 100% subsidiary of Tesco Personal Finance Group Limited) an amount totalling £12m
in respect of services, loan interest and assets transferred, of which £2m was outstanding at 26 February 2000. Tesco Personal Finance Limited
received fees totalling £3m from the Group for managing certain financial products. In addition, an amount of £4m, the majority of which relates
to group relief was outstanding at 26 February 2000.
v The Group has charged Tesco Home Shopping Limited an amount totalling £3m in respect of services, loan interest and assets transferred,
of which £1m was outstanding at 26 February 2000.
vi The Group made loans totalling £17m (£10m to Tesco Personal Finance Group Limited and £7m to Tesco Home Shopping Limited).
notes to the financial statementscontinued