Tesco 2014 Annual Report Download - page 112

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Note 24 Provisions
Property
provisions
£m
Other
provisions
£m
Total
£m
At 25 February 2012 121 78 199
Foreign currency translation 6 – 6
Amount released in the year (12) –(12)
Amount provided in the year 254 116 370
Amount utilised in the year (11) (92) (103)
At 23 February 2013 358 102 460
Foreign currency translation (12) –(12)
Amount released in the year (35) –(35)
Amount provided in the year 53 63 116
Amount utilised in the year (38) (60) (98)
Transfer to disposal group classified as held for sale 2 – 2
At 22 February 2014 328 105 433
The balances are analysed as follows: 2014
£m
2013
£m
Current 250 188
Non-current 183 272
433 460
Property provisions comprise obligations for future rents payable net of rents receivable on onerous leases including on vacant property and unprofitable
stores, terminal dilapidations and other onerous contracts relating to property. The majority of these provisions are expected to be utilised over the period
to 2020.
The other provisions balances relate mainly to provisions for Tesco Bank customer redress in respect of potential complaints arising from the historic sales of
Payment Protection Insurance (‘PPI’), in respect of customer redress relating to the historic sale of certain cardholder protection products (‘CPP’) and in respect of
certain classes of loans and credit cards sold by the Group which are regulated under the Consumer Credit Act (‘CCA’). The Group has identified instances where
the technical requirement for the provision of certain post-contractual documentation to customers with CCA-regulated products has not been fully met. While
there is no evidence that these issues have caused particular detriment to customers, it is the Group’s intention to provide redress to impacted customers in order
to reflect the operation of the CCA in respect of the customers’ liability. These provisions may be used over several years although the timing of utilisation is
uncertain. The balance is classified as current at the year end.
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 109