Annual Report and Accounts 2016


John Lewis Partnership plc


127


4 Working capital and provisions (continued) 4.4 Provisions (continued)


Provisions At 31 January 2015


Charged to income statement Released to income statement Utilised


At 30 January 2016


Of which: Current


Non-current


Long leave £m


(119.7) (14.5) –


10.0 (124.2)


(38.2) (86.0)


Service


guarantee £m


(61.5) (30.7) 5.6


19.2 (67.4)


(29.1) (38.3)


Customer refunds £m


(29.6) (31.5) –


29.6 (31.5)


(31.5) –


Insurance claims £m


(27.0) (12.7) –


10.8 (28.9)


(14.8) (14.1)


Other £m


(30.3) (22.6) 3.7


11.4 (37.8)


(28.0) (9.8)


Total £m


(268.1) (112.0) 9.3


81.0 (289.8)


(141.6) (148.2)


The Partnership has a long leave scheme, open to all Partners, which provides up to six months paid leave after 25 years’ service. There is no proportional entitlement for shorter periods of service. The provision for the liabilities under the scheme is assessed on an actuarial basis, reflecting Partners’ expected service profiles, and using economic assumptions consistent with those used for the Partnership’s retirement benefit obligations (section 6), with the exception of the discount rate, where a rate appropriate to the shorter duration of the long leave liability is used, so as to accrue the cost over Partners’ service periods.


Provisions for service guarantee costs reflect the Partnership’s expected liability for future repair costs based on estimated failure rates and unit repair costs for the classes of goods sold.


Provisions for customer refunds reflects the Partnership’s expected liability for returns of goods sold based on experience of rates of return.


Provisions for insurance claims are in respect of the Partnership’s employer’s, public and vehicle third-party liability insurances and extended warranty products.


Provisions for insurance claims are based on reserves held in the Partnership’s captive insurance company, JLP Insurance Limited. These reserves are established using independent actuarial assessments wherever possible, or a reasonable assessment based on past claims experience. Other provisions include reorganisation costs and property related costs.


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


It’s Your Results


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168