Tesco plc Annual Report and Financial Statements 2012
Tesco plc Annual Report and Financial Statements 2012
Tesco plc Annual Report and Financial Statements 2012
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OVERVIEW<br />
Note 11 Property, plant <strong>and</strong> equipment<br />
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS<br />
L<strong>and</strong> <strong>and</strong><br />
buildings<br />
£m<br />
Cost<br />
At 26 February 2011 23,479 9,091 32,570<br />
Foreign currency translation (14) (11) (25)<br />
Additions (b) 2,286 1,172 3,458<br />
Acquisitions through business combinations 3 6 9<br />
Reclassification (63) – (63)<br />
Classified as held for sale (53) (11) (64)<br />
Disposals (843) (198) (1,041)<br />
Transfer to disposal group classified as held for sale (34) (38) (72)<br />
At 25 February <strong>2012</strong> 24,761 10,011 34,772<br />
Accumulated depreciation <strong>and</strong> impairment losses<br />
At 26 February 2011 2,705 5,467 8,172<br />
Foreign currency translation (10) (11) (21)<br />
Charge for the year 429 836 1,265<br />
Impairment losses for the year 74 25 99<br />
Reversal of impairment losses for the year (36) – (36)<br />
Reclassification 5 – 5<br />
Classified as held for sale (5) (7) (12)<br />
Disposals (177) (161) (338)<br />
Transfer to disposal group classified as held for sale (34) (38) (72)<br />
At 25 February <strong>2012</strong> 2,951 6,111 9,062<br />
Net carrying value (c)(d)<br />
At 25 February <strong>2012</strong> 21,810 3,900 25,710<br />
At 26 February 2011 20,774 3,624 24,398<br />
Construction in progress included above (e)<br />
At 25 February <strong>2012</strong> 1,246 44 1,290<br />
(a) Other assets consist of plant, equipment, fixtures <strong>and</strong> fittings <strong>and</strong> motor vehicles.<br />
(b) Includes £140m (2011: £147m) in respect of interest capitalised, principally relating<br />
to l<strong>and</strong> <strong>and</strong> building assets. The capitalisation rate used to determine the amount<br />
of finance costs capitalised during the financial year was 5.1% (2011: 5.1%). Interest<br />
capitalised is deducted in determining taxable profit in the financial year in which<br />
it is incurred.<br />
(c) Net carrying value includes:<br />
(i) Capitalised interest at 25 February <strong>2012</strong> of £1,185m (2011: £1,084m).<br />
(ii) Assets held under finance leases which are analysed below:<br />
L<strong>and</strong> <strong>and</strong><br />
buildings<br />
£m<br />
<strong>2012</strong> 2011<br />
Other (a)<br />
£m<br />
L<strong>and</strong> <strong>and</strong><br />
buildings<br />
£m<br />
Other (a)<br />
£m<br />
Cost 149 574 139 580<br />
Accumulated depreciation<br />
<strong>and</strong> impairment losses (37) (495) (24) (462)<br />
Net carrying value 112 79 115 118<br />
These assets are pledged as security for the finance lease liabilities.<br />
(d) The net carrying value of l<strong>and</strong> <strong>and</strong> buildings comprises:<br />
<strong>2012</strong><br />
£m<br />
2011<br />
£m<br />
Freehold 19,016 18,094<br />
Long leasehold – 50 years or more 676 677<br />
Short leasehold – less than 50 years 2,118 2,003<br />
Net carrying value 21,810 20,774<br />
(e) Construction in progress does not include l<strong>and</strong>.<br />
Other (a)<br />
£m<br />
Total<br />
£m<br />
<strong>Tesco</strong> PLC <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> <strong>2012</strong> 113
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