Tesco 2009 Annual Report Download - page 81

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79
FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
To find out more go to
www.tesco.com/annualreport09
Note 2 Segmental reporting
The Board has determined that the primary segmental reporting format is geographical, based on the Group’s management and internal reporting
structure. Secondary information is reported by business segments, which comprises retailing and financial services.
In 2007/8, the UK reporting segment included the start-up operations in the United States of America (US), which were not material. The results of the
US business have been reported as a separate reporting segment within International in our results for 2008/9. The comparatives have been restated
to reflect the US as a separate segment. The impact of this is to transfer sales of £16m and a loss of £67m from the UK segment to the US segment
in 2007/8. In addition, the UK reporting segment includes the results for Tesco Personal Finance Group Limited (TPF) from the date of acquisition
(see note 31).
The Rest of Europe reporting segment includes the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia and Turkey.
The Asia reporting segment includes Thailand, South Korea, Malaysia, China, Japan and India. It also includes the results of Homever for 2008/9 from
the date of acquisition (see note 31).
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly interest-bearing borrowings and taxation related assets/liabilities.
Inter-segment turnover between the geographical areas of business is not material.
Geographical segments
Rest of
UK Europe Asia US Total
Year ended 28 February 2009 £m £m £m £m £m
Continuing operations
Revenue
Sales (excluding VAT) to external customers 38,191 8,862 7,068 206 54,327
Result
Segment operating profit/(loss) 2,540 479 343 (156) 3,206
Share of post-tax profit/(loss) of joint ventures and associates 111 (2) 1 – 110
Net finance costs (362)
Profit before tax 2,954
Taxation (788)
Profit for the year 2,166
Reconciliation of operating profit to trading profit
Rest of
UK Europe Asia US Total
£m £m £m £m £m
Operating profit 2,540 479 343 (156) 3,206
Adjustments for:
(Profit)/loss arising on property-related items (263) 14 8 5 (236)
IAS 19 Income Statement charge for pensions 410 6 12 – 428
‘Normal’ cash contributions for pensions (358) (3) (15) – (376)
IAS 17 ‘Leases’ – impact of annual uplifts in rent and rent-free periods 20 – 7 9 36
IFRS 3 Amortisation charge from intangible assets arising on acquisition 32 – – – 32
Trading profit/(loss) 2,381 496 355 (142) 3,090
Trading margin 6.2% 5.6% 5.0% n/a 5.7%