John Lewis Partnership plc annual report and accounts 2012

Notes to the accounts continued

4 Net finance costs (continued)

Table showing Net finance costs (continued)

2012 (£m) | 2011 (£m)

Premium paid on bond redemption – | 9.2
Finance income in respect of investments (2.4) | (2.8)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Net finance costs in respect of borrowings and investments 60.3 | 61.7
Net fair value measurements and other 3.0 | (0.8)
Net finance income arising on defined benefit retirement schemes (30.3) | (2.5)
Net finance costs arising on other employee benefit schemes 6.5 | 4.7
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Net finance costs 39.5 | 63.1

5 Profit on ordinary activities before taxation

Table showing Profit on ordinary activities before taxation

2012 (£m) | 2011 (£m)

Profit on ordinary activities before taxation is stated after charging/(crediting) the following:
Staff costs (note 9) 1,475.9 | 1,425.8
Depreciation – owned assets 240.4 | 214.9
Depreciation – assets held under finance leases 0.6 | 0.6
Amortisation of intangible assets 32.3 | 24.0
Profit on sale of property (1.5) | (1.9)
Loss on disposal of other tangible and intangible fixed assets 5.4 | 0.9
Inventory – cost of inventory recognised as an expense 5,166.5 | 4,878.7
Restructuring costs 2.1 | 9.0
Operating lease rentals:
– land and buildings 113.4 | 106.7
– plant and machinery 0.4 | 0.3
Sub lease income:
– land and buildings (5.9) | (4.7)
Fees payable to the group’s auditors for audit services
pursuant to legislation:
– parent company and group audit 0.3 | 0.3
– subsidiary audits 0.4 | 0.4
Fees payable to the group’s auditors and its associates
for other services:
– taxation services – | 0.1
– other non-audit services 0.2 | 0.3

In addition to the above, the group’s auditors also acted as auditors to the group’s pension schemes. The aggregate fee for audit services to the pension schemes during the year was £49,500 (2011: £50,600).

Contingency rents expensed during the year were £2.6m (2011: £3.6m). Contingency rents are determined based on store revenues.

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