Tesco 2009 Annual Report Download - page 88

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86 FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
Note 7 Non-current assets classified as held for sale
2009 2008
£m £m
Non-current assets classified as held for sale 398 308
The non-current assets classified as held for sale consist mainly of properties held for sale.
Note 8 Dividends
2009 2008 2009 2008
pence/share pence/share £m £m
Amounts recognised as distributions to equity holders in the year:
Final dividend for the prior financial year 7.70 6.83 603 541
Interim dividend for the current financial year 3.57 3.20 280 251
11.27 10.03 883 792
Proposed final dividend for the current financial year 8.39 7.70 662 605
The proposed final dividend was approved by the Board of Directors on 20 April 2009 and is subject to the approval of shareholders at the Annual
General Meeting. The proposed dividend has not been included as a liability as at 28 February 2009, in accordance with IAS 10 ‘Events after the balance
sheet date’. It will be paid on 10 July 2009 to shareholders who are on the register of members on 1 May 2009.
Note 9 Earnings per share and diluted earnings per share
Basic earnings per share amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted average number
of ordinary shares in issue during the year.
Diluted earnings per share amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted average number
of ordinary shares in issue during the year (adjusted for the effects of potentially dilutive options).
The dilution effect is calculated on the full exercise of all ordinary share options granted by the Group, including performance-based options which the
Group considers to have been earned.
All operations are continuing for the years presented.
2009 2008
Potentially Potentially
dilutive dilutive
Basic share options Diluted Basic share options Diluted
Profit (£m) 2,161 – 2,161 2,124 – 2,124
Weighted average number of shares (millions) 7,859 53 7,912 7,881 102 7,983
Earnings per share (pence) 27.50 (0.19) 27.31 26.95 (0.34) 26.61
There have been no transactions involving ordinary shares between the reporting date and the date of approval of these financial statements which
would significantly change the earnings per share calculations shown above.
Reconciliation of non-GAAP underlying diluted earnings per share
2009 2008
£m pence/share £m pence/share
Profit
Earnings from operations 2,161 27.31 2,124 26.61
Adjustments for:
IAS 32 and IAS 39 ‘Financial Instruments’ – Fair value remeasurements 88 1.11 (49) (0.61)
Total IAS 19 Income Statement charge for pensions 403 5.09 414 5.19
‘Normal’ cash contributions for pensions (376) (4.75) (340) (4.26)
IAS 17 ‘Leases’ – impact of annual uplifts in rent and rent-free periods 27 0.34 18 0.22
IFRS 3 Amortisation charge from intangible assets arising on acquisition 32 0.41 – –
Tax effect of adjustments at the effective rate of tax (2009 – 26.7%; 2008 – 24.0%*) (47) (0.59) (10) (0.13)
Underlying earnings from operations 2,288 28.92 2,157 27.02
* In 2007/8, agreement was reached with HMRC on settling prior year tax items. Removing the one-off impact of settling prior year tax items with HMRC, the normalised tax rate was 28.9%.
Notes to the Group financial statements continued