Tesco 2013 Annual Report Download - page 117

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113
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Note 24 Provisions
Property
provisions
£m
Other
provisions
£m
Total
£m
At 26 February 2011 138 39 177
Foreign currency translation 2 – 2
Amount released in the year (45) – (45)
Amount provided in the year 28 61 89
Amount utilised in the year (4) (22) (26)
Others 2 – 2
At 25 February 2012 121 78 199
Foreign currency translation 6–6
Amount released in the year (12) –(12)
Amount provided in the year 254 116 370
Amount utilised in the year (11) (92) (103)
At 23 February 2013 358 102 460
The balances are analysed as follows:
2013
£m
2012
£m
Current 188 99
Non-current 272 100
460 199
Property provisions comprise obligations for future rents payable net of rents receivable on onerous leases including on vacant property and
unprofitable stores, terminal dilapidations and other onerous contracts relating to property. The majority of these provisions are expected to be
utilised over the period to 2020.
The other provisions balance relates mainly to a provision for Tesco Bank customer redress in respect of potential complaints arising from the historic
sales of Payment Protection Insurance (‘PPI’). During the year, a full-scale proactive customer contact programme was initiated for customers who
were sold PPI over a specific time period. As a result of this activity and the contact received directly from customers, an increase in the provision
was made. The PPI provision may be used over several years although the timing of utilisation is uncertain. The balance is classified as current at
the year end.