Tesco 2013 Annual Report Download - page 111

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107
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Note 21 Financial instruments continued
Fair value measurement
The following table presents the Group’s financial assets and liabilities that are measured at fair value at 23 February 2013, by level of fair value hierarchy:
• quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly
(thatis, derived from prices) (Level 2); and
• inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
At 23 February 2013 Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
Assets
Available-for-sale financial assets 808 150 –958
Derivative financial instruments:
Interest rate swaps and similar instruments –130 –130
Cross currency swaps –1,129 –1,129
Index-linked swaps –707 –707
Forward foreign currency contracts –57 –57
Total assets 808 2,173 –2,981
Liabilities
Derivative financial instruments:
Interest rate swaps and similar instruments –(185) –(185)
Cross currency swaps –(79) –(79)
Index-linked swaps –(539) –(539)
Forward foreign currency contracts –(77) –(77)
Total liabilities –(880) –(880)
Total 808 1,293 –2,101
At 25 February 2012 Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
Assets
Available-for-sale financial assets 542 760 – 1,302
Derivative financial instruments:
Interest rate swaps and similar instruments – 99 – 99
Cross currency swaps – 1,054 – 1,054
Index-linked swaps – 569 – 569
Forward foreign currency contracts – 45 – 45
Total assets 542 2,527 – 3,069
Liabilities
Derivative financial instruments:
Interest rate swaps and similar instruments – (201) – (201)
Cross currency swaps – (54) – (54)
Index-linked swaps – (468) – (468)
Forward foreign currency contracts – (90) – (90)
Future purchases of non-controlling interests – – (3) (3)
Total liabilities – (813) (3) (816)
Total 542 1,714 (3) 2,253
The following table presents the changes in Level 3 instruments for the year ending 23 February 2013:
2013
£m
2012
£m
At beginning of the year (3) (106)
Gains/(losses) recognised in finance costs in the Group Income Statement – 33
Gains/(losses) recognised in the Group Statement of Changes in Equity – (3)
Purchase of non-controlling interests 3 73
At end of the year – (3)
During the financial year, £431m (2012: £nil) of Level 2 assets were transferred to Level 1 due to improved valuation systems, and there were no
transfers into or out of Level 3 fair value measurements. At the start of the year the Group had a liability (classified as Level 3) relating to the future
purchase of the minority shareholding of its subsidiary blinkbox entertainment limited. This option was exercised during the year.