Annual report 2010 - Imperial Tobacco Group

More documents

Recommendations

Info

Notes to the Financial Statements continued17 Deferred Tax Assets and Liabilities continued2009Fixed andintangibleassetsRetirementbenefitsFair valuelossesOthertemporarydifferences£ millionTotalAt 1 October 2008 (67) 69 – 390 392Credited/(charged) to income statement 33 6 – (39) –Credited to other comprehensive income – 30 – – 30Transfers (18) (26) – (216) (260)Exchange movements (5) – – 2 (3)Other movements – – – (11) (11)At 30 September 2009 (57) 79 – 126 148Strategy Performance Governance FinancialsDeferred tax liabilities2010Fixed andintangibleassetsRetirementbenefitsFair valuegainsOthertemporarydifferences£ millionTotalAt 1 October 2009 (2,656) 46 6 506 (2,098)Credited/(charged) to income statement 77 (7) (1) (137) (68)Credited to other comprehensive income – 9 – – 9Credited/(charged) to equity 2 – – (5) (3)Transfers (1) – – (32) (33)Exchange movements 136 – – (17) 119At 30 September 2010 (2,442) 48 5 315 (2,074)2009Fixed andintangibleassetsRetirementbenefitsFair valuegainsOthertemporarydifferences£ millionTotalAt 1 October 2008 (2,279) (123) 6 86 (2,310)Credited to income statement 69 – – 70 139Credited to other comprehensive income – 143 – – 143Charged to equity – – – (3) (3)Transfers (115) 26 – 349 260Exchange movements (331) – – 8 (323)Other movements – – – (4) (4)At 30 September 2009 (2,656) 46 6 506 (2,098)Within other temporary differences, deferred tax assets of £81 million (2009: £180 million) are recognised for tax lossescarried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable.Deferred tax assets of £14 million (2009: £20 million) have not been recognised due to the potential uncertainty of theutilisation of the underlying tax losses in certain jurisdictions. Of these unrecognised deferred tax assets, £11 million(2009: £11 million) will expire within five years.Also within other temporary differences, deferred tax assets of £90 million (2009: £77 million) are recognised for tax creditscarried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable.The aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred taxliabilities have not been recognised is £7 billion (2009: £8 billion). A provision of £8 million (2009: £9 million) has been madefor taxation expected to arise on a planned future dividend payment of £110 million from one subsidiary. No other liability hasbeen recognised in respect of these differences because the Group is in a position to control the timing of the reversal of thetemporary differences, and it is probable that the differences will not reverse in the foreseeable future.The June 2010 United Kingdom Budget Statement included proposals to reduce the rate of UK corporation tax by1 per cent per annum from 28 per cent to 24 per cent by 1 April 2014. The change from 28 per cent to 27 per cent wasenacted at the balance sheet date and has, therefore, been included in these financial statements. The effect of thereduction to 27 per cent has been to reduce the deferred tax liability provided at 30 September 2010 by approximately£1 million. This £1 million decrease in the deferred tax liability has increased profit for the year by £2 million and decreasedother comprehensive income by £1 million.The proposed further reductions to 24 per cent by 1 April 2014 are expected to be enacted separately each year. The overalleffect of a further reduction to 24 per cent, if applied to the deferred tax balance at 30 September, would be to reduce thedeferred tax liability by approximately £4 million.140
18 Retirement Benefit SchemesThe Group operates a number of retirement benefit schemes for its employees, including both defined benefit and definedcontribution schemes. The Group’s two principal schemes are final salary defined benefit schemes and are operated byImperial Tobacco Limited in the UK and Reemtsma Cigarettenfabriken GmbH in Germany. The UK scheme’s assets are heldin trustee administered funds while the German scheme is unfunded.The results of the most recent actuarial valuations for the principal Group schemes (outside Germany) have been updated to30 September 2010 by Towers Watson Limited, actuaries and consultants, in order to determine the amounts to be includedin the balance sheet and income statement. Actuarial valuations of the pension liabilities of Reemtsma CigarettenfabrikenGmbH pension schemes were undertaken by Russ, Dr Zimmerman und Partner at 30 September 2010.Amounts recognised in the income statement£ million 2010 2009Current service cost 43 33Past service credit (5) –Losses from special termination benefits 8 28Curtailment gains (1) (7)Defined benefit costs in operating profit 45 54Interest on retirement benefit liabilities 186 200Expected return on retirement benefit assets (181) (182)Retirement benefits net financing costs in finance costs (note 5) 5 18Total defined benefit scheme cost 50 72Defined contribution costs in operating profit 18 19Total retirement benefit scheme costs in the income statement 68 91Retirement benefit scheme costs charged to operating profit£ million 2010 2009Defined benefit costs in operating profit 45 54Defined contribution costs in operating profit 18 19Total retirement benefit scheme costs in operating profit 63 73Which is split as follows in the income statement:£ million 2010 2009Cost of sales 29 25Distribution, advertising and selling costs 17 15Administrative and other expenses 17 33Total retirement benefit scheme costs in operating profit 63 73Defined benefit schemes – amounts recognised in the balance sheet£ million 2010 2009Present value of funded obligations (3,022) (2,845)Fair value of scheme assets 2,960 2,798(62) (47)Present value of unfunded obligations (780) (747)(842) (794)Recognised in the balance sheet as:£ million 2010 2009Retirement benefit assets 25 17Retirement benefit liabilities (867) (811)(842) (794)141
Page 1 and 2:
Imperial Tobacco Group PLCAnnual Re
Page 3 and 4:
…to deliver sustainableshareholde
Page 5 and 6:
Operational HighlightsDelivering Su
Page 7 and 8:
and product portfolio to evolving c
Page 9 and 10:
In this section9 Strategic Review10
Page 11 and 12:
Our StrategyWe are focused on deliv
Page 13 and 14:
Total Tobacco5 % Our Powerful Brand
Page 15 and 16:
Our global strategic cigarette bran
Page 17 and 18:
Our global team is fully aligned be
Page 19 and 20:
Satisfying consumers and aligning o
Page 21 and 22:
We are a responsive business with s
Page 23 and 24:
Operating responsibly, combined wit
Page 25 and 26:
Our growth drivers of sales growth,
Page 27 and 28:
Principal Risks and UncertaintiesA
Page 29 and 30:
Competition LawOverviewWe take comp
Page 31 and 32:
Reconciliation of Adjusted Performa
Page 33 and 34:
Key Performance Indicators (KPIs) 1
Page 35 and 36:
Lambert & Butler and Richmond remai
Page 37 and 38:
Within this the travel retail marke
Page 39 and 40:
OutlookThe strength of our portfoli
Page 41 and 42:
Blondes. In the Middle East, we aga
Page 43 and 44:
Corporate ResponsibilityOur Corpora
Page 45 and 46:
Corporate Responsibility and our St
Page 47 and 48:
We have revised our IMS and employe
Page 49 and 50:
Environmental Performance 1Absolute
Page 51 and 52:
across the business. More informati
Page 53 and 54:
Supplier RelationshipsOur main supp
Page 55 and 56:
Non-financial performance indicator
Page 57 and 58:
“High standards of corporategover
Page 59 and 60:
5. Pierre Jungels, CBE (HON), PHD,
Page 61 and 62:
Management and Corporate StructureB
Page 63 and 64:
Meetings of the Board, Board Commit
Page 65 and 66:
and supplemented by our Non-Executi
Page 67 and 68:
6 Performance evaluation: How do we
Page 69 and 70:
The Board recognises that we operat
Page 71 and 72:
Assurance process for financial rep
Page 73 and 74:
- receiving reports from, and quest
Page 75 and 76:
Directors’ Report: Other Informat
Page 77 and 78:
- state whether IFRSs as adopted by
Page 79 and 80:
We understand that a purported coll
Page 81 and 82:
This Report covers the following:1
Page 83 and 84:
2 Directors’ Emoluments for the Y
Page 85 and 86:
Directors’ Interests in Ordinary
Page 87 and 88:
Executive Directors’ Service Agre
Page 89 and 90:
When setting base salary the Remune
Page 91 and 92: First ElementFifty per cent of the
Page 93 and 94: In respect of the October 2007 - Oc
Page 95 and 96: Any annual bonus earned up to 100 p
Page 97 and 98: Benefit Trusts have also been provi
Page 99 and 100: Independent Auditors’ Reportto th
Page 101 and 102: Consolidated Statement ofComprehens
Page 103 and 104: Consolidated Statement of Changes i
Page 105 and 106: Accounting PoliciesBasis of Prepara
Page 107 and 108: Duty and Similar ItemsDuty and simi
Page 109 and 110: InventoriesInventories are stated a
Page 111 and 112: Restructuring CostsSignificant one-
Page 113 and 114: Property, Plant and Equipment and I
Page 115 and 116: Tobacco net revenue£ million 2010
Page 117 and 118: 3 Restructuring Costs£ million 201
Page 119 and 120: Factors affecting the tax charge fo
Page 121 and 122: 9 Intangible Assets2010£ million G
Page 123 and 124: 10 Property, Plant and Equipment201
Page 125 and 126: 13 Trade and Other Receivables2010
Page 127 and 128: Sensitivity analysisIFRS 7 requires
Page 129 and 130: At 30 September 2009Balance sheetam
Page 131 and 132: (iii) Currency analysis and effecti
Page 133 and 134: (iv) Derivative financial instrumen
Page 135 and 136: Matures in financial year ending in
Page 137 and 138: The following tables are provided i
Page 139 and 140: Matures in financial year ending in
Page 141: (vi) Hedge of net investments in fo
Page 145 and 146: Assumptions regarding future mortal
Page 147 and 148: 21 Share SchemesThe Group recognise
Page 149 and 150: Year from 1 October 2008 to 30 Sept
Page 151 and 152: 23 CommitmentsCapital commitments£
Page 153 and 154: 27 Reconciliation of Cash Flow to M
Page 155 and 156: Imperial Tobacco Group PLC Balance
Page 157 and 158: (iii) Debtors: Amounts Falling Due
Page 159 and 160: Principal SubsidiariesThe principal
Page 161 and 162: Shareholder InformationRegistered O
Page 163 and 164: IndexAAccounting Policies 103Acquis
show all

Annual report 2010 - Imperial Tobacco Group

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

Delete template?

Save as template?