Tesco 2013 Annual Report Download - page 125

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121
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Note 28 Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed
in this note. Transactions between the Group and its joint ventures and associates are disclosed below:
Trading transactions
Sales to
related parties
Purchases from
related parties
Amounts owed
by related parties
Amounts owed
to related parties
2013
£m
2012
£m
2013
£m
2012
£m
2013
£m
2012
£m
2013
£m
2012
£m
Joint ventures 303 263 516 480 13 521 36
Associates 22952 1,691 ––12 368
Sales to related parties consists of services/management fees and loan interest.
Purchases from related parties include £387m (2012: £351m) of rentals payable to the Group’s joint ventures (including those joint ventures formed
as part of the sale and leaseback programme) and £952m (2012: £1,691m) of fuel purchased from Greenergy International Limited. In addition, duty
on the fuel purchases paid by the Group to Greenergy International Limited was £1,056m (2012: £1,950m).
Non-trading transactions
Sale and leaseback
of assets
Loans to
related parties
Loans from
related parties
Injection of
equity funding
2013
£m
2012
£m
2013
£m
2012
£m
2013
£m
2012
£m
2013
£m
2012
£m
Joint ventures 493 450 459 384 16 16 24 49
Associates 503 –21 21 ––132 –
Transactions between the Group and the Group’s pension plans are disclosed in Note 26.
A number of the Group’s subsidiaries are members of one or more partnerships to whom the provisions of the Partnerships (Accounts)
Regulations 2008 (‘Regulations’) apply. The accounts for those partnerships have been consolidated into these accounts pursuant to Regulation 7
of the Regulations.
On 13 February 2013, the Group completed a new sale and leaseback transaction involving UK property assets, structured as a 50-50 joint venture
with the Cambridge University Endowment Fund. Four trading stores and three mixed use sites under development were sold for a total
consideration of £493m.
During the year, the Group completed two sale and leaseback transactions involving property assets in Thailand. On 14 March 2012, seventeen
trading malls were sold to the Tesco Lotus Growth Fund, an associated entity of the Group, for net consideration of £360m. On 4 December 2012,
a further five trading malls were sold for a consideration of £143m.
Transactions with key management personnel
Members of the Board of Directors and Executive Committee of Tesco PLC are deemed to be key management personnel.
Key management personnel compensation and their transactions with Tesco Bank are disclosed below:
2013
£m
2012
£m
Salaries and short-term benefits 13 13
Pensions 34
Share-based payments 29
Loss of office costs 3–
21 26
Of the total remuneration to key management personnel, £7m (2012: £6m) relates to Executive Committee members who are not on the PLC Board.
Transactions of key management personnel with Tesco Bank during the financial year were as follows:
Credit card and personal
loan balances
Saving deposit accounts
Number of key
management
personnel £m
Number of key
management
personnel £m
At 23 February 2013 12 – 5 –
At 25 February 2012 12 –13 2