Download full Annual Report and Accounts - Kingfisher

More documents

Recommendations

Info

86 Notes to the consolidated fi nancial statements Kingfi sher plc Annual Report and Accounts 2009/10 26 Provisions £ millions Onerous property contracts Restructuring Total At 1 February 2009 17 105 122 Charge to income statement 20 – 20 Utilised in the year (2) (42) (44) Unwinding of discount 1 3 4 Exchange differences – (4) (4) At 30 January 2010 36 62 98 Current liabilities 8 28 36 Non-current liabilities 28 34 62 36 62 98 Within the onerous property contracts provisions, Kingfi sher has provided against future liabilities for all properties sublet at a shortfall and long term idle properties, except those related to restructuring programmes which are included in the restructuring provisions. The provisions are based on the present value of future cash outfl ows relating to rent, rates and service charges. Restructuring provisions include the estimated costs of the UK and China restructuring programmes. The provisions have been discounted to refl ect the time value of money and the risks associated with the specifi c liabilities. The ultimate costs and timing of cash fl ows related to the above provisions are largely dependent on exiting the property lease contracts and subletting surplus space. 27 Post employment benefi ts The Group operates a variety of post employment benefi t arrangements covering both funded and unfunded defi ned benefi t schemes and funded defi ned contribution schemes. The most signifi cant are the funded, fi nal salary defi ned benefi t and defi ned contribution schemes for the Group’s UK employees. Various defi ned benefi t and defi ned contribution schemes are operated in France and Poland, where they are retirement indemnity in nature, and in China. The overseas schemes are not material in relation to the Group as a whole. Defi ned contribution schemes Pension costs for defi ned contribution schemes, at rates specifi ed in the individual schemes’ rules, are as follows: £ millions 2009/10 2008/09 Charge to operating profi t 4 6 Defi ned benefi t schemes The Group’s principal defi ned benefi t pension scheme is in the UK. The assets of this scheme are held separately from the Group in trustee-administered funds. The Trustees are required to act in the best interests of the scheme’s benefi ciaries. The UK scheme was closed to new entrants in 2004. A full actuarial valuation of the scheme is carried out every three years by an independent actuary for the scheme Trustee and the last full valuation was carried out as at 31 March 2007. The Company monitors the scheme funding level on a regular basis and will review with the scheme Trustee at future valuations the continued appropriateness of the repayment schedule currently in place. Income statement 2009/10 2008/09 £ millions Amounts charged to operating profi t UK Other Total UK Other Total Current service cost Amounts charged/(credited) to net fi nance costs 19 3 22 20 3 23 Interest on defi ned benefi t obligations 88 3 91 82 2 84 Expected return on pension scheme assets (87) – (87) (97) – (97) Net interest charge/(return) 1 3 4 (15) 2 (13) Total charged to income statement 20 6 26 5 5 10 Of the charge to operating profi t, £19m (2008/09: £20m) and £3m (2008/09: £3m) are included in selling and distribution expenses and administrative expenses respectively. Actuarial gains and losses have been reported in the statement of comprehensive income.
Kingfi sher plc Annual Report and Accounts 2009/10 87 Balance sheet 2009/10 2008/09 £ millions UK Other Total UK Other Total Present value of defi ned benefi t obligations (1,666) (50) (1,716) (1,388) (49) (1,437) Fair value of scheme assets 1,495 23 1,518 1,348 15 1,363 Defi cit in scheme (171) (27) (198) (40) (34) (74) The amount of the defi ned benefi t obligation at 30 January 2010 which relates to funded defi ned benefi t schemes is £1,716m (2008/09: £1,437m). Movements in the surplus or defi cit are as follows: 2009/10 2008/09 £ millions UK Other Total UK Other Total (Defi cit)/surplus in scheme at beginning of year (40) (34) (74) 110 (33) 77 Current service cost (19) (3) (22) (20) (3) (23) Interest on defi ned benefi t obligations (88) (3) (91) (82) (2) (84) Expected return on pension scheme assets 87 – 87 97 – 97 Actuarial losses (160) (5) (165) (186) (5) (191) Contributions paid by employer 49 17 66 41 7 48 Disposal of subsidiaries – – – – 7 7 Exchange differences – 1 1 – (5) (5) Defi cit in scheme at end of year (171) (27) (198) (40) (34) (74) In the prior year the Group disposed of Castorama Italy (see note 34). Movements in the present value of defi ned benefi t obligations are as follows: 2009/10 2008/09 £ millions UK Other Total UK Other Total Present value of defi ned benefi t obligations at beginning of year (1,388) (49) (1,437) (1,350) (45) (1,395) Current service cost (19) (3) (22) (20) (3) (23) Interest on defi ned benefi t obligations (88) (3) (91) (82) (2) (84) Actuarial (losses)/gains (223) (3) (226) 25 (5) 20 Contributions paid by employees (8) – (8) (10) – (10) Benefi ts paid 60 7 67 49 6 55 Disposal of subsidiaries – – – – 7 7 Exchange differences – 1 1 – (7) (7) Present value of defi ned benefi t obligations at end of year (1,666) (50) (1,716) (1,388) (49) (1,437) Movements in the fair value of scheme assets are as follows: 2009/10 2008/09 £ millions UK Other Total UK Other Total Fair value of scheme assets at beginning of year 1,348 15 1,363 1,460 12 1,472 Expected return on pension scheme assets 87 – 87 97 – 97 Actuarial gains/(losses) on pension scheme assets 63 (2) 61 (211) – (211) Contributions paid by employer 49 17 66 41 7 48 Contributions paid by employees 8 – 8 10 – 10 Benefi ts paid (60) (7) (67) (49) (6) (55) Exchange differences – – – – 2 2 Fair value of scheme assets at end of year 1,495 23 1,518 1,348 15 1,363 The fair value of scheme assets is analysed as follows: 2009/10 2008/09 £ millions UK Other Total % of total UK Other Total % of total Equities 502 – 502 33% 424 – 424 31% Bonds 890 – 890 59% 827 – 827 61% Property 78 – 78 5% 74 – 74 5% Other 25 23 48 3% 23 15 38 3% Total fair value of scheme assets 1,495 23 1,518 100% 1,348 15 1,363 100% The pension schemes do not hold any assets other than those disclosed above.
Page 1 and 2:
PROGRESS REPORT ON DELIVERING VALUE
Page 3 and 4:
Kingfi sher plc Annual Report and A
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Si Kingfi sher plc Annual Report an
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38: Kingfi sher plc Annual Report and A
Page 87: Kingfi sher plc Annual Report and A
Page 115 and 116: 9 10 Kingfi sher is included in two
show all

Download full Annual Report and Accounts - Kingfisher

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?