John Lewis Partnership plc annual report and accounts 2012

Notes to the accounts continued

20 Provisions (continued)

Other provisions include reorganisation costs, accrued holiday pay and property related costs.

The exact timing of utilisation of these provisions will vary according to the individual circumstances. However, the group’s best estimate of utilisation is provided above.

21 Deferred tax

Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 25% (2011: 27%).

The movement on the deferred tax account is shown below:

Table showing deferred tax

Consolidated | 2012 (£m) | 2011 (£m) 

Opening liability/(asset) 94.7 | (41.9)
Credited to income statement (14.2) | (4.8)
(Credited)/charged to equity (48.4) | 141.4
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Closing liability 32.1 | 94.7
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

The movements in deferred tax assets and liabilities during the period (prior to the offsetting of balances within the same jurisdiction, as permitted by IAS 12) are shown below.

Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net.

Table showing deferred tax (continued)

Deferred tax liabilities | Accelerated tax depreciation (£m) | Revaluation of land and buildings (£m) | Rollover gains (£m) | Other (£m) | Total (£m) 

At 30 January 2010 180.7 | 6.7 | 23.4 | 2.2 | 213.0
Credited to income statement (1.7) | (1.8) | (1.6) | (0.4) | (5.5)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
At 29 January 2011 179.0 | 4.9 | 21.8 | 1.8 | 207.5
(Credited)/charged to income statement (13.0) | 0.8 | 0.7 | 1.8 | (9.7)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
At 28 January 2012 166.0 | 5.7 | 22.5 | 3.6 | 197.8

Deferred Tax Assets | Capital gains tax on land and buildings (£m) | Pensions and provisions (£m) | Capital losses (£m) | Total (£m)

At 31 January 2010 (2.0) | (252.8) | (0.1) | (254.9)
(Credited)/charged to income statement (0.3) | 0.9 | 0.1 | 0.7
Charged to equity – | 141.4 | – | 141.4
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
At 29 January 2011 (2.3) | (110.5) | – | (112.8)
Credited to income statement (4.2) | (0.3) | – | (4.5)
Credited to equity – | (48.4) | – | (48.4)
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
At 28 January 2012 (6.5) | (159.2) | – | (165.7)

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