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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Notes to the Parent Company financial statements<br />
Note 10 Derivative financial instruments<br />
The fair value of derivative financial instruments has been disclosed in the Company’s Balance Sheet as:<br />
Asset<br />
£m<br />
<strong>2012</strong> 2011<br />
Current 19 (90) 142 (138)<br />
Non-current 1,706 (620) 1,131 (567)<br />
Total 1,725 (710) 1,273 (705)<br />
Fair value<br />
£m<br />
Liability<br />
£m<br />
Asset<br />
£m<br />
Liability<br />
£m<br />
<strong>2012</strong> 2011<br />
Asset Liability Asset Liability<br />
Notional<br />
£m<br />
Fair value<br />
£m<br />
Notional<br />
£m<br />
Fair value<br />
£m<br />
Notional<br />
£m<br />
Fair value<br />
£m<br />
Fair value hedges<br />
Interest rate swaps <strong>and</strong> similar<br />
instruments 81 1,065 – – 13 665 (21) 400<br />
Cross currency swaps 818 2,686 (8) 269 728 2,674 (39) 714<br />
Cash flow hedges<br />
Interest rate swaps <strong>and</strong> similar<br />
instruments – – (132) 400 – – (54) 400<br />
Cross currency swaps 233 304 (41) 988 126 298 (151) 784<br />
Index-linked swaps 30 809 – – – – (8) 772<br />
Forward foreign currency contracts 1 285 (4) 616 – – (1) 145<br />
Net investment hedges<br />
Forward foreign currency contracts – – (7) 969 19 383 (97) 952<br />
Cash flow hedge <strong>and</strong> net<br />
investment hedges<br />
Cross currency swaps – – (1) 318 – – – –<br />
Derivatives not in a formal<br />
hedge relationship<br />
Index-linked swaps 539 3,089 (468) 3,089 377 2,639 (310) 2,639<br />
Forward foreign currency contracts 23 782 (49) 1,034 10 400 (24) 550<br />
Total 1,725 9,020 (710) 7,683 1,273 7,059 (705) 7,356<br />
Note 11 Share-based payments<br />
The Company’s equity-settled share-based payment schemes comprise various share schemes designed to reward Executive Directors. For further<br />
information on these schemes, including the valuation models <strong>and</strong> assumptions used, see Note 25 in the Group financial statements.<br />
Share option schemes<br />
The number of options <strong>and</strong> WAEP of share option schemes relating to the Company employees are:<br />
Savings-related<br />
share option scheme<br />
Approved<br />
share option scheme<br />
Unapproved<br />
share option scheme<br />
Notional<br />
£m<br />
Nil cost<br />
share options<br />
For the year ended 25 February <strong>2012</strong><br />
Outst<strong>and</strong>ing at<br />
Options WAEP Options WAEP Options WAEP Options WAEP<br />
26 February 2011 33,834 342.93 64,330 373.06 14,368,570 385.59 12,399,127 0.00<br />
Granted 4,944 364.00 – – – – 4,742,273 0.00<br />
Forfeited (5,028) 343.54 – – – – (603,508) 0.00<br />
Exercised<br />
Outst<strong>and</strong>ing at<br />
(7,838) 313.89 – – – – (507,617) 0.00<br />
25 February <strong>2012</strong><br />
Exercisable as at<br />
25,912 355.62 64,330 373.06 14,368,570 385.59 16,030,275 0.00<br />
25 February <strong>2012</strong> – – 28,600 314.68 7,413,586 395.27 9,468,818 0.00<br />
Exercise price range<br />
312.75<br />
312.75<br />
(pence)<br />
Weighted average remaining<br />
– – – to 318.60 – to 473.75 – 0.00<br />
contractual life (years) – – – 3.51 – 4.98 – 6.12<br />
148 <strong>Tesco</strong> PLC <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> <strong>2012</strong>
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