Tesco 2007 Annual Report Download - page 58

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Notes to the financial statements continued
56 Tesco PLC Annual report and financial statements 2007 Find out more at www.tesco.com/corporate
Note 2 Segmental reporting
The Board has determined that the primary segmental reporting format is geographical, based on the Group’s management and
internal reporting structure. Secondary information is reported by a single business segment, retail and associated activities.
The Rest of Europe reporting segment includes the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia and Turkey.
The Asia reporting segment includes Thailand, South Korea, Malaysia, China and Japan. Following its disposal during the year, the
Taiwanese business (previously included within the Asia segment) was classified as a discontinued operation in both the current and
prior year.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated
on a reasonable basis. Unallocated items comprise mainly interest-bearing borrowings and taxation related assets/liabilities.
Inter-segment turnover between the geographical areas of business is not material.
Geographical segments
Rest of
UK Europe Asia Total
Year ended 24 February 2007 £m £m £m £m
Continuing operations
Revenue
Sales (excluding VAT) to external customers 32,665 5,559 4,417 42,641
Result
Segment operating profit 2,083 324 241 2,648
Share of post-tax profit/(losses) of joint ventures and associates 111 – (5) 106
Profit on sale of investments in associates 25 – – 25
Net finance costs (126)
Profit before tax 2,653
Taxation (772)
Profit for the year from continuing operations 1,881
Discontinued operation
Profit for the year from discontinued operation 18
Profit for the year 1,899
Rest of Other/
UK Europe Asia unallocated Total
£m £m £m £m £m
Assets and liabilities
Segment assets 16,323 4,552 3,397 221 24,493
Investments in joint ventures and associates 307 2 5 – 314
Total assets 16,630 4,554 3,402 221 24,807
Segment liabilities (5,602) (903) (1,031) (6,700) (14,236)
Total net assets 10,571
Other segment information
Capital expenditure (including acquisitions through business combinations):
– Property, plant and equipment 1,765 786 516 – 3,067
– Investment property – 36 22 – 58
– Goodwill and other intangible assets 197 52 420 – 669*
Depreciation:
– Property, plant and equipment 520 155 99 – 774
– Investment property – 7 4 – 11
Amortisation of intangible assets 79 8 6 – 93
Impairment losses recognised in the Income Statement (44) (35) (3) – (82)
Reversal of prior period impairment losses through the Income Statement 17 46 – – 63
Profit/(loss) arising on property-related items 98 – (6) – 92
* Includes £166m of goodwill transferred in from joint ventures, following the acquisition of additional shares in dunnhumby and Hymall.