Tesco 2015 Annual Report Download - page 97

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Note 2 Segmental reporting continued
Reconciliation of trading profit to operating (loss)/profit
2015
£m
2014
£m
Trading profit 1,390 3,315
Adjustments:
IAS 19 ‘Employee Benefits’ – non-cash Group Income Statement charge for pensions (68) (11)
IAS 17 ‘Leases’ – impact of annual uplifts in rent and rent-free periods (19) (28)
IFRS 3 ‘Business Combinations’ – intangible asset amortisation charges and costs arising from acquisitions (13) (14)
IFRIC 13 ‘Customer Loyalty Programmes’ – fair value of awards –(10)
Total restructuring and other one-off items (Note 3) (6,814) (801)
Reversal of commercial income recognised in previous years:
Recognised in 13/14 (53) –
Recognised in years prior to 13/14 (155) –
Other (losses)/profits arising on property-related items (60) 180
Operating (loss)/profit (5,792) 2,631
The following tables showing segment assets and liabilities exclude those balances that make up net debt (cash and cash equivalents, short-term investments,
joint venture loans and other receivables, bank and other borrowings, finance lease payables, derivative financial instruments and net debt of the disposal
groups). Net debt balances have been included within the unallocated segment to reflect how the Group manages these balances. Intercompany transactions
have been eliminated, other than intercompany transactions with Tesco Bank in net debt.
At 28 February 2015
UK
£m
Asia
£m
Europe
£m
Tesco
Bank
£m
Other/
unallocated
£m
Total
£m
Goodwill and other intangible assets 1,636 835 77 1,223 –3,771
Property, plant and equipment and investment property 10,683 6,148 3,687 86 –20,604
Investments in joint ventures and associates 89 771 –80 –940
Other investments – – – 827 148 975
Loans and advances to customers – non-current – – – 3,906 –3,906
Deferred tax asset 421 38 55 – – 514
Non-current assets(a) 12,829 7,792 3,819 6,122 148 30,710
Inventories and trade and other receivables(b) 2,696 1,131 808 235 –4,870
Trade and other payables (6,733) (1,979) (965) (245) – (9,922)
Loans and advances to customers – current – – – 3,814 –3,814
Customer deposits and deposits from banks – – - ( 7,020) ( 7,020)
Total provisions (1,044) (143) (89) (90) –(1,366)
Deferred tax liability –(148) (10) (41) –(199)
Net current tax (91) 4 3 5 – (79)
Post-employment benefits (4,604) (65) (173) – – (4,842)
Assets held for sale and of the disposal groups(c) 61 51 18 – – 130
Liabilities of the disposal groups(c) – – – – (5) (5)
Net debt(d) – – – (539) (8,481) (9,020)
Net assets 3,114 6,643 3,411 2,241 (8,338) 7,071
At 22 February 2014
UK
£m
Asia
£m
Europe
£m
Tesco
Bank
£m
Other/
unallocated
£m
Total
£m
Goodwill and other intangible assets 1,662 786 94 1,253 –3,795
Property, plant and equipment and investment property 13,696 5,904 5,024 93 –24,717
Investments in joint ventures and associates 122 87 –77 –286
Other investments –40 –850 125 1,015
Loans and advances to customers – non-current – – – 3,210 –3,210
Deferred tax asset –25 48 - – 73
Non-current assets(a) 15,480 6,842 5,166 5,483 125 33,096
Inventories and trade and other receivables(b) 3,002 1,204 1,132 174 –5,512
Trade and other payables (6,995) (2,140) (1,224) (236) –(10,595)
Loans and advances to customers – current – – – 3,705 –3,705
Customer deposits and deposits from banks – – – (6,858) –(6,858)
Total provisions (223) (78) (28) (104) –(433)
Deferred tax liability (373) (158) (39) (24) –(594)
Net current tax (393) (89) – – – (482)
Post-employment benefits (3,053) (52) (88) – – ( 3,193)
Assets held for sale and of the disposal groups(c) 196 131 – – 1,990 2, 317
Liabilities of the disposal groups(c) – – – – (1,184) (1,184)
Net debt(d) – – – 28 (6,597) (6,569)
Net assets 7,641 5,660 4,919 2,168 (5,666) 14,722
(a) Excludes derivative financial instrument non-current assets of £1,546m (2014: £1,496m).
(b) Excludes loans to joint ventures of £207m (2014: £252m) and interest and other receivables of £1m (2014: £2m).
(c) Excludes net debt of the disposal groups of £9m (2014: £161m).
(d) Refer to Note 30.
95Tesco PLC Annual Report and Financial Statements 2015
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