Tesco 2015 Annual Report Download - page 105

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Note 7 Discontinued operations and non-current assets classified as held for sale
2015
£m
2014
£m
Assets of the disposal groups 92,160
Non-current assets classified as held for sale 130 327
Total assets of the disposal groups and non-current assets classified as held for sale 139 2,487
Total liabilities of the disposal groups (5) (1,193)
Total net assets of the disposal groups and non-current assets classified as held for sale 134 1,294
The non-current assets classified as held for sale consist mainly of properties in the UK and Korea due to be sold within one year.
Discontinued operations
On 28 May 2014 the Group completed its formation of a new venture with China Resources Enterprise Limited (‘CRE’). The new venture is classified as an
associate within continuing operations. In accordance with IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, the Chinese operations
for the period up to 28 May 2014 have been classified as a disposal group. In addition the US operations, representing the remaining costs of the orderly
restructuring process, continues to be classified as a disposal group.
The tables below show the results of the discontinued operations which are included in the Group Income Statement, Group Balance Sheet and Group Cash
Flow Statement respectively.
US China Total
Income Statement 2015
£m
2014
£m
2015*
£m
2014
£m
2015
£m
2014
£m
Revenue –496 281 1,489 281 1,985
Expenses** 16 (762) (315) (2,163) (299) (2,925)
Profit/(loss) before tax of discontinued operations 16 (266) (34) (674) (18) (940)
Taxation –6(1) (8) (1) (2)
Profit/(loss) after tax of discontinued operations 16 (260) (35) (682) (19) (942)
Loss after tax of disposal of Chinese operations ––(28) –(28) –
Total profit/(loss) after tax of discontinued operations 16 (260) (63) (682) (47) (942)
Loss per share impact from discontinued operations
Basic (0.58)p (11.6 8)p
Diluted (0.58)p (11.66)p
US China Total
2015
£m
2014
£m
2015*
£m
2014
£m
2015
£m
2014
£m
Non-GAAP measure: underlying profit/(loss) before tax
Underlying loss before tax of discontinued operations in the US & China 11 (95) (25) (97) (14) (192)
* The results of China are for the 13 weeks ended 28 May 2014, at which point the operations were contributed into a new venture with CRE.
** Includes fair value remeasurements, less costs to sell.
The Group exchanged its Chinese retail and property interests plus cash of £334m (£257m paid during the year, with £77m due in May 2015) for a 20% interest
in the new venture. The loss after tax on disposal of the Group’s Chinese operations is made up as follows:
£m
Value of new investment 1,261
Cash paid and deferred payments (334)
Net book value of assets contributed (835)
Costs to sell and other provisions (67)
Taxation (53)
Loss after tax of disposal of Chinese operations (28)
The loss in the year that resulted from remeasuring the retained investment to fair value on disposal was £10m.
Cost to sell and other provisions have decreased by £21m since the Group’s interim results as a result of updates in estimates since that time.
103Tesco PLC Annual Report and Financial Statements 2015
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