Tesco 2015 Annual Report Download - page 134

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History of movements
The historical movement in defined benefit pension schemes’ assets and liabilities and history of experience gains and losses are as follows:
2015
£m
2014
£m
2013
£m
2012
£m
2011
£m
Total market value of assets 9,677 8,124 7,20 6 6,169 5,608
Present value of liabilities relating to unfunded pension schemes (134) (111) (91) (60) (65)
Present value of liabilities relating to partially funded pension schemes (14, 385) (11, 20 6) (9,493) (7,981) (6,899)
Pension deficit (4,842) ( 3,193) (2,378) (1,872) (1,356)
Remeasurements on defined benefit pension assets 874 253 94 (168) 278
Experience gains/(losses) on defined benefit pension obligation 272 (22) 143 (25)
Post-employment benefits other than pensions
The Group operates a scheme offering post-retirement healthcare benefits. The cost of providing these benefits has been accounted for on a similar basis
to that used for defined benefit pension schemes.
The liability as at 28 February 2015 of £11m (2014: £12m) was determined in accordance with the advice of independent actuaries. During the year, £1m
(2014: £1m) has been charged to the Group Income Statement and £1m (2014: £1m) of benefits were paid.
Expected contributions
The Company would make normal cash contributions of approximately £756m to defined benefit schemes in the financial year ending 27 February 2016,
if all schemes remained open to new members and future accrual for the full year. This may change however depending on the outcome of the consultation
on the closure of the UK defined benefit pension scheme.
A plan to pay £270m a year has been agreed with the Trustee to fund the UK pension deficit and to meet the expenses of the scheme. Due to the timing of the
agreement, a portion of this is included in the above value.
Note 27 Called up share capital
2015 2014
Ordinary shares of 5p each Ordinary shares of 5p each
Number £m Number £m
Allotted, called up and fully paid:
At beginning of the year 8,095,821,091 405 8,054,054,930 403
Share options exercised 5,080,408 –19,662,145 1
Share bonus awards issued 22,090,000 122,104,016 1
At end of the year 8,122,991,499 406 8,095,821,091 405
During the financial year, 5 million (2014: 20 million) ordinary shares of 5p each were issued in relation to share options for an aggregate consideration
of £14m (2014: £61m).
During the financial year, 22 million (2014: 22 million) ordinary shares of 5p each were issued in relation to share bonus awards for an aggregate consideration
of £1.1m (2014: £1.1m).
Between 1 March 2015 and 17 April 2015 options over 5,533 ordinary shares were exercised under the terms of the Savings-related Share Option Scheme
(1981) and the Irish Savings-related Share Option Scheme (2000). Between 1 March 2015 and 17 April 2015, no options have been exercised under the
Discretionary Share Option Plan (2004).
As at 28 February 2015, the Directors were authorised to purchase up to a maximum in aggregate of 810.1 million (2014: 806.5 million) ordinary shares.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings
of the Company.
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
2015
£m
2014
£m
2015
£m
2014
£m
2015
£m
2014
£m
2015
£m
2014
£m
Joint ventures 430 366 549 533 17 19 22 6
Associates –714 18 26 –117
Sales to related parties consists of services/management fees and loan interest.
Purchases from related parties include £430m (2014: £412m) of rentals payable to the Group’s joint ventures (including those joint ventures formed as part
of the sale and leaseback programme).
Note 26 Post-employment benefits continued
132 Tesco PLC Annual Report and Financial Statements 2015
Notes to the Group financial statements continued