Tesco 2007 Annual Report Download - page 69

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Note 11 Property, plant and equipment
Land and
buildings Other (a) To t a l
£m £m £m
Cost
At 25 February 2006 15,563 4,707 20,270
Foreign currency translation (176) (46) (222)
Additions (b) 1,925 864 2,789
Acquisitions through business combinations 247 31 278
Reclassification across categories (100) 1 (99)
Classified as held for sale (391) (13) (404)
Disposals (528) (155) (683)
At 24 February 2007 16,540 5,389 21,929
Accumulated depreciation and impairment losses
At 25 February 2006 1,815 2,573 4,388
Foreign currency translation (8) (17) (25)
Charge for the year 240 534 774
Reclassification across categories 2 (3) (1)
Classified as held for sale (40) (7) (47)
Disposals (86) (69) (155)
Impairment losses 82 – 82
Reversal of impairment losses (63) – (63)
At 24 February 2007 1,942 3,011 4,953
Net carrying value (c)(d)(e)
At 24 February 2007 14,598 2,378 16,976
At 25 February 2006 13,748 2,134 15,882
Capital work in progress included above (f)
At 24 February 2007 872 158 1,030
(a) Other assets consist of plant, equipment, fixtures and fittings and motor vehicles.
(b) Includes £78m (2006 – £67m) in respect of 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% (2006 – 5.1%). Interest capitalised is deducted in determining taxable profit in the year in which it is incurred.
(c) Net carrying value includes:
(i) Capitalised interest at 24 February 2007 of £716m (2006 – £655m).
(ii) Assets held under finance leases which are analysed below:
2007 2006
Land and Land and
buildings Other (a) buildings Other (a)
£m £m £m £m
Cost 91 662 102 388
Accumulated depreciation
and impairment losses (16) (480) (14) (367)
Net carrying value 75 182 88 21
These assets are pledged as security for the finance lease liabilities.
(d) The net carrying value of land and buildings comprises:
2007 2006
£m £m
Freehold 13,267 12,616
Long leasehold – 50 years or more 657 541
Short leasehold – less than 50 years 674 591
Net carrying value 14,598 13,748
(e) Carrying value of land and buildings includes £8m (2006 – £9m) relating to the prepayment of lease premiums.
(f) Capital work in progress does not include land.
67
NOTES TO THE GROUP
FINANCIAL STATEMENTS