Tesco 2006 Annual Report Download - page 86

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Note 23 Post-employment benefits continued
Movement in deficit during the year
2006 2005 2004
£m £m £m
Deficit in schemes at beginning of the year (735) (674) (769)
Current service cost (328) (272) (201)
Other finance (charge)/income 25 4 (6)
Contributions 270 437* 162
Foreign currency translation differences (1) – –
Actuarial (loss)/gain (442) (230) 140
Deficit in schemes at end of the year (1,211) (735) (674)
*Includes additional contribution of £200m paid in February 2005.
Post-employment benefits other than pensions
The Company operates a scheme offering post-retirement healthcare benefits. The cost of providing these benefits has been
accounted for on a similar basis to that used for defined benefit pension schemes.
The liability as at 25 February 2006 of £10m (2005 – £8.5m), was determined in accordance with the advice of qualified actuaries.
In 2005/06, £0.5m has been charged to the Income Statement and £0.7m of benefits were paid.
Achange of 1.0% in assumed healthcare cost trend rates would have the following effect:
2006
£m
Effect on the annual service and interest cost 0.1
Effecton defined benefit obligations 1.0
Expected contributions
The Group expects to make contributions of approximately £320m to defined benefit pension schemes in the UK and overseas
in the year ending 24 February 2007.
Note 24 Called up share capital
Ordinaryshares of 5p each
Number £m
Authorised:
At 26 February 2005 10,600,000,000 530
Authorised during the year 100,000,000 5
At 25 February 2006 10,700,000,000 535
Allotted, called up and fully paid:
At 26 February 2005 7,783,169,542 389
Scrip dividend election 53,639,219 3
Shareoptions 57,668,156 3
At 25 February 2006 7,894,476,917 395
During the financial year, 111 million shares of 5p each were issued for an aggregate consideration of £290m, which comprised
£167m for scrip dividend and £123m for share options.
Between 25 February 2006 and 24 April 2006, options on 3,425,477 ordinary shares have been exercised under the terms of the
savings-related share option scheme (1981) and the Irish savings-related share option scheme (2000). Between 25 February 2006
and 24 April 2006, options over 5,945,937 options have been exercised under the terms of the executive share option schemes
(1994 and 1996) and the discretionary share option plan (2004).
As at 25 February 2006, the Directors were authorised to purchase up to a maximum in aggregate of 778.7 million ordinary shares.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share
at the meetings of the Company.
84 Tesco plc
Notes to the financial statements continued