Tesco 2010 Annual Report Download - page 119

Download and view the complete annual report

Please find page 119 of the 2010 Tesco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

Financial statements
Note 30 Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this
note. Transactions between the Group and its joint ventures and associates are disclosed below:
i) Trading transactions
Sales to Purchases from Amounts owed Amounts owed
related parties related parties by related parties to related parties
2010 2009 2010 2009 2010 2009 2010 2009
£m £m £m £m £m £m £m £m
Joint ventures 154 183 360 290 6 14 18 6
Associates – – 1,313 1,175 – – 24 156
Sales to related parties consists of services/management fees and loan interest.
Purchases from related parties include £226m (2009 – £174m) of rentals payable to the Group’s joint ventures, including those joint ventures formed as
part of the sale and leaseback programme.
Purchases from associates include £1,312m (2009 – £1,171m) of fuel purchased from Greenergy International Limited.
ii) Non-trading transactions
Sales to Loans to Loans from Injection of
related parties related parties related parties equity funding
2010 2009 2010 2009 2010 2009 2010 2009
£m £m £m £m £m £m £m £m
Joint ventures 87 465 309 262 23 20 83 –
Transactions between the Group and the Group’s pension plans are disclosed in note 28.
A number of the Group’s subsidiaries are members of one or more partnerships to whom the provisions of the Partnerships (Accounts) Regulations 2008
(‘Regulations’) apply. The accounts for those partnerships have been consolidated into these accounts pursuant to Regulation 7 of the Regulations.
On 25 June 2009, the Group formed a limited partnership with Tesco Pension Trustees. The limited partnerships contain twelve stores and two
distribution centres which have been sold from and leased back to the Group. The Group sold assets for net proceeds of £386m to the limited
partnership. The Group’s share of the profit realised from this transaction is included within profit arising on property-related items.
On 23 September 2009, the Group formed a limited partnership with a third party. The limited partnerships contain fifteen stores and two distribution
centres which have been sold from and leased back to the Group. The Group sold assets for net proceeds of £460m to the limited partnership. The
Group’s share of the profit realised from this transaction is included within profit arising on property-related items.
iii) Transactions with key management personnel
Only members of the Board of Directors of Tesco PLC are deemed to be key management personnel. It is the Board who have responsibility for planning,
directing and controlling the activities of the Group. Key management personnel compensation is disclosed in the audited section of the Directors’
Remuneration Report.
Transactions on an arm’s length basis with Tesco Bank during the year were as follows:
Credit card and
personal loan balances Saving deposit accounts
Number of key Number of key
management management
personnel £m personnel £m
At 28 February 2009 2 – 2 –
At 27 February 2010 – – 4 1
During the current and prior year, there were no other material transactions or balances between the Group and its key management personnel or their
close family members.
Tesco PLC Annual Report and Financial Statements 2010 117