Tesco 2014 Annual Report Download - page 85

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Note 2 Segmental reporting continued
Other segment information
Year ended 22 February 2014
UK
£m
Asia
£m
Europe
£m
Tesco
Bank
£m
Total
continuing
operations
£m
Discontinued
operations*
£m
Total
£m
Capital expenditure (including acquisitions through
business combinations):
Property, plant and equipment 1,370 737 253 16 2,376 86 2,462
Investment property –––––––
Goodwill and other intangible assets 303 22 28 86 439 5444
Depreciation:
Property, plant and equipment (642) (320) (307) (17) (1,286) (26) (1,312)
Investment property –(10) (9) –(19) –(19)
Amortisation of intangible assets (122) (15) (24) (66) (227) (4) ( 231)
Goodwill impairment losses –––––––
Impairment losses (87) (39) (761) –(887) –(887)
Reversal of prior year impairment losses 135 811 –154 –154
Year ended 23 February 2013
UK
£m
Asia*
£m
Europe
£m
Tesco
Bank
£m
Total
continuing
operations
£m
Discontinued
operations*
£m
Total
£m
Capital expenditure (including acquisitions through
business combinations):
Property, plant and equipment 1,207 688 434 13 2,342 297 2,639
Investment property –40 3 – 43 –43
Goodwill and other intangible assets 207 20 39 97 363 9372
Depreciation:
Property, plant and equipment (630) (279) (288) (16) (1,213) (109) (1,322)
Investment property –(21) (15) –(36) –(36)
Amortisation of intangible assets (130) (13) (22) (61) (226) (6) (232)
Goodwill impairment losses – – (495) –(495) –(495)
Impairment losses (654) (36) (92) –(782) (68) (850)
Reversal of prior year impairment losses 1 – 2 – 3 3 6
* Discontinued operations in this table represents amounts up until the point a disposal group is classified as such. The year ended 22 February 2014 represents China for the
first six months of the financial year and the previous financial year represents the US and China for the full year.
Note 3 Income and expenses
Continuing operations
2014
£m
2013
£m
Profit before tax is stated after charging/(crediting) the following:
Rental income, of which £34m (2013: £493m) relates to investment properties*(512) (518)
Direct operating expenses arising on rental earning investment properties 5165
Costs of inventories recognised as an expense 46,832 47,424
Stock losses 1, 316 1,157
Depreciation, amortisation and impairment charged 2,265 2,254
Operating lease expenses, of which £102m (2013: £125m) relates to hire of plant and machinery 1,414 1,287
Impairment of goodwill –495
* Refer to Note 11 for detail of £1,623m reclassification of investment property to property, plant and equipment in the year.
During the financial year the Group obtained the following services from the Group’s auditor, PricewaterhouseCoopers LLP, and network firms:
2014
£m
2013
£m
Audit services
Fees payable to the Company’s auditor and its associates for the audit of the Company and Group financial statements 0.8 0.8
The audit of the accounts of the Company’s subsidiaries 3.5 3.8
Audit-related assurance services 1.2 –
Total audit and audit related services 5.5 4.6
Non-audit services
Fees payable to the Company’s auditor and its associates for other services:
Taxation compliance services – 0.1
Taxation advisory services 0.6 0.4
All other non-audit services 4.1 2.4
Total auditor remuneration 10.2 7.5
In addition to the amounts shown above, the auditor received fees of £0.2m (2013: £0.1m) for the audit of the main Group pension scheme.
A description of the work of the Audit Committee is set out in the Corporate Governance Report on page 33 and includes how objectivity and independence is
safeguarded when non-audit services are provided by PricewaterhouseCoopers LLP.
82 Tesco PLC Annual Report and Financial Statements 2014
Notes to the Group financial statements continued