REG - Tesco PLC - Preliminary Results 2016/17 <Origin Href="QuoteRef">TSCO.L</Origin> - Part 2
12/04/2017 07:05
- Part 2: For the preceding part double click ID:nRSL2573Ca
comprehensive income/(loss) attributable to owners of the parent arises from:
Continuing operations (2,096) 1,485
Discontinued operations (110) (215)
(2,206) 1,270
The notes on pages 20 to 51 form part of this condensed consolidated financial information.
Group balance sheet
Notes 25 February 2017£m 27 February 2016 £m
Non-current assets
Goodwill, software and other intangible assets 10 2,717 2,874
Property, plant and equipment 11 18,108 17,900
Investment property 64 78
Investments in joint ventures and associates 12 739 785
Other investments 823 1,078
Trade and other receivables 180 201
Loans and advances to customers 5,795 4,723
Derivative financial instruments 1,303 1,532
Deferred tax assets 707 49
30,436 29,220
Current assets
Other investments 284 57
Inventories 2,301 2,430
Trade and other receivables 1,475 1,406
Loans and advances to customers 4,166 3,819
Derivative financial instruments 286 176
Current tax assets 13 15
Short-term investments 13 2,727 3,463
Cash and cash equivalents 13 3,821 3,082
15,073 14,448
Assets of the disposal group and non-current assets classified as held for sale 7 344 236
15,417 14,684
Current liabilities
Trade and other payables (8,875) (8,293)
Borrowings 15 (2,560) (2,826)
Derivative financial instruments and other liabilities (61) (62)
Customer deposits and deposits from banks (6,687) (5,906)
Current tax liabilities (613) (419)
Provisions 16 (438) (360)
(19,234) (17,866)
Liabilities of the disposal group classified as held for sale 7 (171) -
Net current liabilities (3,988) (3,182)
Non-current liabilities
Trade and other payables (324) (275)
Borrowings 15 (9,433) (10,711)
Derivative financial instruments and other liabilities (607) (889)
Customer deposits and deposits from banks (2,276) (1,573)
Post-employment benefit obligations 17 (6,621) (3,175)
Deferred tax liabilities (88) (135)
Provisions 16 (685) (664)
(20,034) (17,422)
Net assets 6,414 8,616
Equity
Share capital 409 407
Share premium 5,096 5,095
All other reserves 601 (141)
Retained earnings 332 3,265
Equity attributable to owners of the parent 6,438 8,626
Non-controlling interests (24) (10)
Total equity 6,414 8,616
The notes on pages 20 to 51 form part of this condensed consolidated financial information.
Group statement of changes in equity
All other reserves
Sharecapital£m Sharepremium£m Otherreserves£m Capitalredemptionreserve£m Hedgingreserve£m Translationreserve£m Treasuryshares£m Retainedearnings£m Total£m Non-controllinginterests£m Totalequity£m
At 27 February 2016 407 5,095 40 16 211 (401) (7) 3,265 8,626 (10) 8,616
Profit/(loss) for the year - - - - - - - (40) (40) (14) (54)
Other comprehensive income/(loss)
Change in fair value of available-for-sale financial assets and investments - - - - - - - 80 80 - 80
Currency translation differences - - - - - 764 - - 764 - 764
Remeasurements of defined benefit pension schemes - - - - - - - (3,567) (3,567) - (3,567)
Gains/(losses) on cash flow hedges - - - - 1 - - - 1 - 1
Tax relating to components of other comprehensive income - - - - 5 (13) - 564 556 - 556
Total other comprehensive income/(loss) - - - - 6 751 - (2,923) (2,166) - (2,166)
Total comprehensive income/(loss) - - - - 6 751 - (2,963) (2,206) (14) (2,220)
Transactions with owners
Purchase of treasury shares - - - - - - (24) - (24) - (24)
Share-based payments - - - - - - 9 28 37 - 37
Issue of shares 2 1 - - - - - - 3 - 3
Dividends - - - - - - - - - - -
Tax on items charged to equity - - - - - - - 2 2 - 2
Total transactions with owners 2 1 - - - - (15) 30 18 - 18
At 25 February 2017 409 5,096 40 16 217 350 (22) 332 6,438 (24) 6,414
The notes on pages 20 to 51 form part of this condensed consolidated financial information.
All other reserves
Sharecapital£m Sharepremium £m Otherreserves£m Capitalredemptionreserve £m Hedging reserve£m Translationreserve£m Treasury shares £m Retained earnings £m Total£m Non-controlling interests £m Total equity £m
At 28 February 2015 406 5,094 40 16 35 (488) (17) 1,985 7,071 - 7,071
Profit/(loss) for the year - - - - - - - 138 138 (9) 129
Other comprehensive income/ (loss)
Change in fair value of available-for-sale financial assets and investments - - - - - - - 5 5 - 5
Currency translation differences - - - - - 81 - - 81 (1) 80
Remeasurements of defined benefit pension schemes - - - - - - - 1,164 1,164 - 1,164
Gains/(losses) on cash flow hedges - - - - 212 - - - 212 - 212
Tax relating to components of other comprehensive income - - - - (36) 6 - (300) (330) - (330)
Total other comprehensive income/(loss) - - - - 176 87 - 869 1,132 (1) 1,131
Total comprehensive income/(loss) - - - - 176 87 - 1,007 1,270 (10) 1,260
Transactions with owners
Purchase of treasury shares - - - - - - (5) - (5) - (5)
Share-based payments - - - - - - 15 273 288 - 288
Issue of shares 1 1 - - - - - - 2 - 2
Dividends - - - - - - - - - - -
Total transactions with owners 1 1 - - - - 10 273 285 - 285
At 27 February 2016 407 5,095 40 16 211 (401) (7) 3,265 8,626 (10) 8,616
The notes on pages 20 to 51 form part of this condensed consolidated financial information.
Group cash flow statement
Notes 52 weeks2017£m 52 weeks2016£m
Cash flows generated from/(used in) operating activities
Operating profit/(loss) of continuing operations 1,017 1,072
Operating profit/(loss) of discontinued operations (117) 102
Depreciation and amortisation 1,304 1,334
(Profit)/loss arising on sale of property, plant and equipment and intangible assets (78) 164
(Profit)/loss arising on sale of subsidiaries and other investments 3 -
(Profit)/loss arising on sale of joint ventures and associates (5) (1)
Impairment loss on goodwill 46 18
Net impairment loss/(reversal) on other investments (12) (7)
Net impairment loss/(reversal) on loans/investments in joint ventures and associates - 1
Net impairment loss/(reversal) on property, plant and equipment, intangible assets and investment property (5) 182
Adjustment for non-cash element of pensions charge 17 7 (395)
Additional contribution into pension schemes 17 (248) (223)
Share-based payments 15 283
Tesco Bank fair value movements included in operating profit 98 72
Retail (increase)/decrease in inventories 124 251
Retail (increase)/decrease in development stock 16 99
Retail (increase)/decrease in trade and other receivables (74) 20
Retail increase/(decrease) in trade and other payables 510 260
Retail increase/(decrease) in provisions 11 (280)
Tesco Bank (increase)/decrease in loans and advances to customers (1,529) (868)
Tesco Bank (increase)/decrease in trade and other receivables (24) (78)
Tesco Bank increase/(decrease) in customer and bank deposits, trade and other payables 1,474 463
Tesco Bank increase/(decrease) in provisions 25 (35)
(Increase)/decrease in working capital 533 (168)
Cash generated from/(used in) operations 2,558 2,434
Interest received/(paid) (522) (426)
Corporation tax received/(paid) (47) 118
Net cash generated from/(used in) operating activities 1,989 2,126
The notes on pages 20 to 51 form part of this condensed consolidated financial information.
Notes 52 weeks2017£m 52weeks2016£m
Net cash generated from/(used in) operating activities 1,989 2,126
Cash flows generated from/(used in) investing activities
Purchase of property, plant and equipment, investment property and non-current assets classified as held for sale (1,205) (871)
Purchase of intangible assets (169) (167)
Disposal of subsidiaries, net of cash disposed 19 205 3,237
Acquisition of subsidiaries, net of cash acquired 19 (25) (325)
Proceeds from sale of joint ventures and associates - 192
Proceeds from sale of property, plant and equipment, investment property, intangible assets and non-current assets classified as held for sale 512 350
Net (increase)/decrease in loans to joint ventures and associates 15 (1)
Investments in joint ventures and associates - (77)
Net (investments in)/proceeds from sale of short-term investments 736 (2,894)
Net (investments in)/proceeds from sale of other investments 141 (103)
Dividends received from joint ventures and associates 28 41
Interest received/(paid) 41 3
Net cash generated from/(used in) investing activities 279 (615)
Cash flows generated from/(used in) financing activities
Proceeds from issue of ordinary share capital 1 1
Increase in borrowings 185 586
Repayment of borrowings (2,036) (1,328)
Net cash flows from derivative financial instruments 475 154
Repayments of obligations under finance leases (12) (17)
Dividends paid to equity owners 8 - -
Net cash generated from/(used in) financing activities (1,387) (604)
Net increase/(decrease) in cash and cash equivalents 881 907
Cash and cash equivalents at beginning of the year 3,082 2,174
Effect of foreign exchange rate changes (131) 1
Cash and cash equivalents including cash held in disposal group at the end of the year 3,832 3,082
Cash held in disposal group 7 (11) -
Cash and cash equivalents at the end of the year 13 3,821 3,082
The notes on pages 20 to 51 form part of this condensed consolidated financial information.
Note 1 Basis of preparation
This preliminary consolidated financial information has been prepared in accordance with the Disclosure and Transparency
Rules of the UK Financial Conduct Authority, and the principles of International Financial Reporting Standards (IFRS) as
adopted by the European Union. The accounting policies applied are consistent with those described in the Annual Report and
Group Financial Statements 2017. The preliminary consolidated financial information has been prepared on a going concern
basis. This preliminary consolidated financial information does not constitute statutory consolidated financial statements
for the 52 weeks ended 25 February 2017 as defined under section 434 of the Companies Act 2006.
The Annual Report and Group Financial Statements for the 52 weeks ended 25 February 2017 were approved by the Board of
Directors on 11 April 2017. The report of the auditor on those Group Financial Statements was unqualified, did not contain
an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006. An
abbreviated copy of the audit report can be found on page 56. The Annual Report and Group Financial Statements for 2017
will be filed with the Registrar in due course.
The Annual Report and Group Financial Statements for the 52 weeks ended 27 February 2016 were approved by the Board of
Directors on 12 April 2016 and have been filed with the Registrar of Companies. The report of the auditor on those Group
Financial Statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
The Directors consider that the Group has, at the time of approving the Group financial statements, adequate resources to
continue in operational existence for the foreseeable future and have therefore continued to adopt the going concern basis
in preparing the preliminary consolidated financial information.
Discontinued operations
In accordance with IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations', the net results of discontinued
operations are presented separately in the Group income statement (and the comparatives restated) and the assets and
liabilities of these operations are presented separately in the Group balance sheet. Refer to Note 7 for further details.
Standards issued but not yet effective
As of the date of authorisation of these financial statements, the following standards were in issue but not yet effective.
The Group has not applied these standards in the preparation of the financial statements, and has not adopted any new or
amended standards early:
• IFRS 9 'Financial instruments' replaces IAS 39 'Financial instruments: Recognition and Measurement' with the
exception of macro hedge accounting. The standard is effective for accounting periods beginning on or after 1 January 2018.
The standard covers three elements:
- Classification and measurement. Changes to a more principle based approach to classify financial assets as either
held at amortised cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss,
dependent on the business model and cash flow characteristics of the financial asset.
- Impairment. Moves to an impairment model based on expected credit losses based on a three stage approach.
- Hedge accounting. The IFRS 9 hedge accounting requirements are designed to allow hedge accounting to be more closely
aligned with the Group's underlying risk management. A new IASB project is in progress to develop an approach to better
reflect dynamic risk management in entities' financial statements.
The Group expects to continue applying the existing hedge accounting requirements of IAS 39 for its portfolio hedge
accounting until this new approach is implemented.
The Group intends to quantify the potential impact of IFRS 9 once it is practicable to provide reliable estimates, which
will be no later than in the Annual Report and Financial Statements for the year ended 24 February 2018. IFRS 9 is expected
to result in a more significant impact for Tesco Bank than for the Retail business.
• IFRS 15, 'Revenues from Contracts with Customers' is effective for periods beginning on or after 1 January 2018. IFRS
15 introduces a five-step approach to the timing of revenue recognition based on performance obligations in customer
contracts.
The Group recognises revenue from the following principal activities:
- Retailing and associated activities; and
- Retail banking and insurance services through Tesco Bank.
An assessment of the impact of IFRS 15 has been completed. Revenue recognition under IFRS 15 is expected to be consistent
with current practice for the Group's revenue, with the exception of Clubcard loyalty points, certain telecommunication
contracts and certain bespoke contracts fulfilled by dunnhumby, where the timing of revenue recognition will change. Had
the principles of IFRS 15 been applied in the current reporting period, it would not have had a significant impact on the
financial statements.
• IFRS 16 'Leases' is effective for annual periods beginning on or after 1 January 2019 subject to EU endorsement. IFRS
16 provides a single lessee accounting model, requiring lessees to recognise right of use assets and lease liabilities for
all applicable leases.
IFRS 16 is expected to have a significant impact on the amounts recognised in the Group's consolidated financial
statements. On adoption of IFRS 16 the Group will recognise within the balance sheet a right of use asset and lease
liability for all applicable leases. Within the income statement, rent expense will be replaced by depreciation and
interest expense. This will result in a decrease in cost of sales and an increase in finance costs. The standard will also
impact a number of statutory measures such as operating profit and cash generated from operations, and alternative
performance measures used by the Group.
The full impact of IFRS 16 is currently under review, including understanding the practical application of the principles
of the standard. It is therefore not practical to provide a reasonable estimate of the financial effect until this review
is complete.
Alternative performance measures (APMs)
In the reporting of financial information, the Directors have adopted various APMs, previously termed 'Non-GAAP measures',
of historical or future financial performance, position or cash flows other than those defined or specified under
International Financial Reporting Standards (IFRS).
These measures are not defined by IFRS and therefore may not be directly comparable with other companies' APMs, including
those in the Group's industry.
APMs should be considered in addition to, and are not intended to be a substitute for, or superior to, IFRS measurements.
Purpose
The Directors believe that these APMs assist in providing additional useful information on the underlying trends,
performance and position of the Group.
APMs are also used to enhance the comparability of information between reporting periods and geographical units (such as
like-for-like sales), by adjusting for non-recurring or uncontrollable factors which affect IFRS measures, to aid the user
in understanding the Group's performance.
Consequently, APMs are used by the Directors and management for performance analysis, planning, reporting and incentive
setting purposes and have remained consistent with prior year.
The key APMs that the Group has focused on this year are as follows:
· Group sales (previously termed Revenue exc. fuel): This is the headline measure of revenue for the Group. It
excludes the impact of sales made at petrol filling stations due to the significant volatility of fuel prices. This
volatility is outside the control of management and can mask underlying changes in performance.
· Like-for-like sales: This is a widely used indicator of a retailer's current trading performance. It is a measure of
growth in Group online sales and sales from stores that have been open for at least a year (but excludes prior year sales
of stores closed during the year) at constant foreign exchange rates.
· Operating profit before exceptional items: This is the headline measure of the Group's performance, and is based on
operating profit before the impact of exceptional items. Exceptional items relate to certain costs or incomes that derive
from events or transactions that fall within the normal activities of the Group but which, individually or, if of a similar
type, in aggregate, are excluded by virtue of their size and nature in order to reflect management's view of the
performance of the Group.
· Retail operating cash flow: This is the operating cash flow of continuing operations, excluding the effects of Tesco
Bank's cash flows.
· Net debt: This excludes the net debt of Tesco Bank but includes that of the discontinued operations to reflect the
net debt obligations of the Retail business.
· Diluted earnings per share from continuing operations before exceptional items and net pension finance costs: This
relates to profit after tax before exceptional items from continuing operations, and net pension finance costs attributable
to owners of the parent divided by the weighted average number of ordinary shares in issue during the financial period
adjusted for the effects of potentially dilutive options.
Some of our IFRS measures are translated at constant exchange rates. Constant exchange rates are the average actual
periodic exchange rates for the previous financial year and are used to eliminate the effects of exchange rate fluctuations
in assessing performance. Actual exchange rates are the average actual periodic exchange rates for that financial year.
Refer to the Glossary (page 52) for a full list and comprehensive descriptions and purpose of the Group's APMs.
Note 2 Segmental reporting
The Group's operating segments are determined based on the Group's internal reporting to the Chief Operating Decision Maker
(CODM). The CODM has been determined to be the Group Chief Executive, with support from the Executive Committee, as the
function primarily responsible for the allocation of resources to segments and assessment of performance of the segments.
The principal activities of the Group are therefore presented in the following segments:
· Retailing and associated activities (Retail) in:
- UK & ROI - the United Kingdom and Republic of Ireland; and
- International - Czech Republic, Hungary, Poland, Slovakia, Malaysia and Thailand; and
· Retail banking and insurance services through Tesco Bank in the UK (Tesco Bank).
This presentation reflects how the Group's operating performance is reviewed internally by management.
Excluded from the current year segmental information below are the retailing and associated activities of Turkey which have
been classified as discontinued operations. Turkey's performance in the comparative year has been excluded from segmental
information. Refer to Note 7 for further detail.
The CODM uses operating profit before exceptional items, as reviewed at monthly Executive Committee meetings, as the key
measure of the segments' results as it reflects the segments' underlying performance for the financial period under
evaluation. Operating profit before exceptional items is a consistent measure within the Group as defined within Note 1.
Refer to Note 4 for exceptional items. Inter-segment revenue between the operating segments is not material.
Income statement
The segment results and the reconciliation of the segment measures to the respective statutory items included in the Group
income statement are as follows:
52 weeks ended 25 February 2017At constant exchange rates UK & ROI£m International£m TescoBank£m Total at constantexchange£m Foreignexchange£m Total at actualexchange£m
Continuing operations
Group sales 37,424 9,892 1,012 48,328 1,539 49,867
Revenue 43,248 10,084 1,012 54,344 1,573 55,917
Operating profit before exceptional items* 793 280 157 1,230 50 1,280
Exceptional items (291) 87 (80) (284) 21 (263)
Operating profit/(loss) 502 367 77 946 71 1,017
Operating margin 1.8% 2.8% 15.5% 2.3% - 2.3%
52 weeks ended 25 February 2017At actual exchange rates UK & ROI£m International£m TescoBank£m Total at actualexchange£m
Continuing operations
Group sales 37,692 11,163 1,012 49,867
Revenue 43,524 11,381 1,012 55,917
Operating profit before exceptional items* 803 320 157 1,280
Exceptional items (284) 101 (80) (263)
Operating profit/(loss) 519 421 77 1,017
Operating margin 1.8% 2.8% 15.5% 2.3%
Share of post-tax profits/(losses) of joint ventures and associates (107)
Finance income 109
Finance costs (874)
Profit/(loss) before tax 145
* Intercompany recharges totalling £2m (2016: £2m) between continuing operations and the Turkey discontinued operations
have been eliminated.
52 weeks ended 27 February 2016At actual exchange rates UK & ROI£m International£m TescoBank£m Total at actualexchange£m
Continuing operations
Group sales 37,189 9,715 955 47,859
Revenue 43,080 9,898 955 53,933
Operating profit before exceptional items* 503 320 162 985
Exceptional items 94 (6) (1) 87
Operating profit/(loss) 597 314 161 1,072
Operating margin 1.2% 3.2% 17.0% 1.8%
Share of post-tax profits/(losses) of joint ventures and associates (21)
Finance income 29
Finance costs (878)
Profit/(loss) before tax 202
* Refer to previous table for footnote.
Balance sheet
The following tables showing segment assets and liabilities exclude those balances that make up net debt (cash and cash
equivalents, short-term investments, joint venture loans and other receivables, bank and other borrowings, finance lease
payables, derivative financial instruments and net debt of the disposal group). Net debt balances have been included within
the unallocated segment to reflect how the Group manages these balances. Intercompany transactions have been eliminated
other than intercompany transactions with Tesco Bank in net debt.
At 25 February 2017 UK & ROI£m International£m TescoBank£m Unallocated£m Total£m
Goodwill, software and other intangible assets 1,293 322 1,102 - 2,717
Property, plant and equipment and investment property 12,893 5,206 73 - 18,172
Investments in joint ventures and associates 11 657 71 - 739
Non-current other investments - - 810 13 823
Non-current trade and other receivables(a) 23 20 - - 43
Non-current loans and advances to customers - - 5,795 - 5,795
Deferred tax asset 601 106 - - 707
Non-current assets(b) 14,821 6,311 7,851 13 28,996
Inventories and current trade and other receivables(c) 2,389 1,048 338 - 3,775
Current loans and advances to customers - - 4,166 - 4,166
Current other investments - - 156 128 284
Total trade and other payables (7,006) (1,951) (242) - (9,199)
Total customer deposits and deposits from banks - - (8,963) - (8,963)
Total provisions (914) (125) (84) - (1,123)
Deferred tax liability (7) (67) (14) - (88)
Net current tax (579) (13) (8) - (600)
Post-employment benefits (6,600) (21) - - (6,621)
Assets held for sale and of the disposal group(d) 100 46 - 187 333
Liabilities of the disposal group(d) - - - (95) (95)
Net debt (including Tesco Bank)(e) - - (722) (3,729) (4,451)
Net assets 2,204 5,228 2,478 (3,496) 6,414
(a) Excludes loans to joint ventures of £137m (2016: £149m) which forms part of Net debt.
(b) Excludes derivative financial instrument non-current assets of £1,303m (2016: £1,532m).
(c) Excludes net interest and other receivables of £1m (2016: £1m) which forms part of Net debt.
(d) Excludes Net debt of the disposal group of £(65)m. Refer to Note 7.
(e) Refer to Note 18.
At 27 February 2016 UK & ROI£m International£m TescoBank£m Unallocated£m Total£m
Goodwill, software and other intangible assets 1,391 309 1,174 - 2,874
Property, plant and equipment and investment property 12,815 5,085 78 - 17,978
Investments in joint ventures and associates 5 704 76 - 785
Non-current other investments - - 927 151 1,078
Non-current trade and other receivables(a) 31 21 - - 52
Non-current loans and advances to customers - - 4,723 - 4,723
Deferred tax asset - 49 - - 49
Non-current assets(b) 14,242 6,168 6,978 151 27,539
Inventories and current trade and other receivables(c) 2,526 995 314 - 3,835
Current loans and advances to customers - - 3,819 - 3,819
Current other investments - - 57 - 57
Total trade and other payables (6,580) (1,736) (252) - (8,568)
Total customer deposits and deposits from banks - - (7,479) - (7,479)
Total provisions (837) (129) (58) - (1,024)
Deferred tax liability (64) (39) (32) - (135)
Net current tax (403) (3) 2 - (404)
Post-employment benefits (3,153) (22) - - (3,175)
Assets held for sale and of the disposal group(d) 165 71 - - 236
Liabilities of the disposal group(d) - - - - -
Net debt (including Tesco Bank)(e) - - (975) (5,110) (6,085)
Net assets 5,896 5,305 2,374 (4,959) 8,616
(a)-(e) Refer to previous table for footnotes.
Other segment information
52 weeks ended 25 February 2017 UK & ROI£m International£m TescoBank£m Total continuingoperations£m Discontinuedoperations(b)£m Total£m
Capital expenditure (including acquisitions through
business combinations):
Property, plant and equipment (a) 995 386 12 1,393 2 1,395
Investment property - - - - - -
Goodwill, software and other intangible assets 111 16 34 161 - 161
Depreciation and amortisation:
Property, plant and equipment (687) (349) (17) (1,053) (5) (1,058)
Investment property (1) - - (1) - (1)
Software and other intangible assets (117) (26) (101) (244) (1) (245)
Impairment:
Property, plant and equipment loss (12) (155) - (167) (106) (273)
Property, plant and equipment reversal 118 161 - 279 - 279
Investment property loss (2) (1) - (3) - (3)
Investment property reversal 3 1 - 4 - 4
Goodwill, software and other intangible assets loss (54) - - (54) - (54)
Goodwill, software and other intangible assets reversal - 1 - 1 - 1
(a) Includes £nil (2016: £1,742m) of property, plant and equipment acquired through business combinations.
(b) Discontinued operations in this table represents amounts up until the point a disposal group is classified as such.
This comprises those of Turkey in the first four months of the year ended 25 February 2017 and the 12 months of the year
ended 27 February 2016. In the year ended 27 February 2016, discontinued operations also comprises the results of Korea for
the first six months of the year.
52 weeks ended 27 February 2016 UK & ROI£m International£m TescoBank£m Total continuingoperations£m Discontinuedoperations(b)£m Total£m
Capital expenditure (including acquisitions through
business combinations):
Property, plant and equipment(a) 2,300 231 8 2,539 60 2,599
Investment property 5 - - 5 - 5
Goodwill, software and other intangible assets 188 17 32 237 4 241
Depreciation and amortisation:
Property, plant and equipment (688) (279) (16) (983) (94) (1,077)
Investment property (2) - - (2) - (2)
Software and other intangible assets (145) (26) (75) (246) (9) (255)
Impairment:
Property, plant and equipment loss (164) (98) - (262) (1) (263)
Property, plant and equipment reversal 126 105 - 231 14 245
Investment property loss - (2) - (2) - (2)
Investment property reversal 7 - - 7 - 7
Goodwill, software and other intangible assets loss (177) (10) - (187) - (187)
(a)-(b) Refer to previous table for footnotes.
Cash flow statement
The following tables provide further analysis of the Group cash flow statement, including a split of cash flows between
Retail and Tesco Bank as well as an analysis of Retail continuing and discontinued operations.
Operating profit/(loss) of continuing operations* 940 911 77 161 1,017 1,072
Operating profit/(loss) of discontinued operations (117) 102 - - (117) 102
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