Tesco 2006 Annual Report Download - page 65

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63Tesco plc
Note 11 Property, plant and equipment
Plant,
equipment,
fixtures and
Land and fittings and
buildings motor vehicles Total
£m £m £m
Cost
At 26 February 2005 14,247 4,298 18,545
Foreign currency translation 198 45 243
Additions (a) 1,935 707 2,642
Acquisitions through business combinations 20 3 23
Reclassification across categories (208) 11 (197)
Classified as held for sale (74) (15) (89)
Disposals (555) (342) (897)
At 25 February 2006 15,563 4,707 20,270
Accumulated depreciation and impairment losses
At 26 February 2005 1,705 2,319 4,024
Foreign currency translation 91928
Charge for the year 250 503 753
Reclassification across categories (1) 1 –
Classified as held for sale (5) (6) (11)
Disposals (139) (262) (401)
Impairment losses 40 7 47
Reversal of impairment losses (44) (8) (52)
At 25 February 2006 1,815 2,573 4,388
Net carrying value (b)(c)(d)
At 25 February 2006 13,748 2,134 15,882
At 26 February 2005 12,542 1,979 14,521
Capital work in progress included above (e)
At 25 February 2006 699 82 781
(a) Includes £67m (2005 – £63m) in respectof interest capitalised, principally relating to land and building assets. The capitalisation rate used to determine the amount
of finance costs capitalised during the year was 5.1% (2005 – 5.7%). Interest capitalised is deducted in determining taxable profit in the year in which it is incurred.
(b) Net carrying value includes capitalised interest at 25 February 2006 of £655m (2005 – £597m).
The costof land and buildings includes £102m (2005 – £85m) in respect of assets held under finance leases. The related accumulated depreciation
at the end of the year was £14m (2005 – £10m). These assets are pledged as security for the finance lease liabilities.
The cost of plant, equipment, fixture and fittings and motor vehicles includes £388m (2005 – £392m) in respect of assets held under finance leases.
The related accumulated depreciation at the end of the year was £367m (2005 – £354m).
(c) The net carrying value of land and buildings comprises:
2006 2005
£m £m
Freehold 12,616 11,485
Long leasehold – 50 years or more 541 520
Short leasehold – less than 50 years 591 537
Net carrying value 13,748 12,542
(d) Carrying value of land and buildings includes £9m (2005 – £13m) relating to the prepayment of lease premiums.
(e) Capital work in progress does not include land.