XML 34 R16.htm IDEA: XBRL DOCUMENT v3.22.1
Property, plant and equipment
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Property, plant and equipment
10. Property, plant and equipment
 
    
Right-of-use assets
     Owned assets        
All figures in £ millions
    Land and
buildings		     Plant and
equipment		     Land and
buildings		     Plant and
equipment		     Assets in
the course of
construction		     Total  
Cost
                                                 
At 1 January 2020
      460       23       300       325       36       1,144  
Exchange differences
      (11 )      (2 )      (7 )      (11 )      (1 )      (32 ) 
Additions
      62       —         7       5       37       111  
Disposals and retirements
      (13 )      (9 )      (23 )      (29 )      (1 )      (75 ) 
Reclassifications and transfers
      —         —         20       21       (50 )      (9 ) 
Transfer to assets classified as held for sale
      (59 )      —         (1 )      (3 )      —         (63 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
At 31 December 2020
      439       12       296       308       21       1,076  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Exchange differences
   
 
—  
 
  
 
—  
 
  
 
2
 
  
 
(3
) 
  
 
—  
 
  
 
(1
) 
Additions
   
 
32
 
  
 
—  
 
  
 
8
 
  
 
17
 
  
 
39
 
  
 
96
 
Disposals and retirements
   
 
(6
) 
  
 
(7
) 
  
 
(100
) 
  
 
(72
) 
  
 
—  
 
  
 
(185
) 
Reclassifications and transfers
   
 
—  
 
  
 
—  
 
  
 
35
 
  
 
—  
 
  
 
(31
) 
  
 
4
 
Transfer to assets classified as held for sale
   
 
—  
 
  
 
—  
 
  
 
(15
) 
  
 
—  
 
  
 
—  
 
  
 
(15
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
At 31 December 2021
   
 
465
 
  
 
5
 
  
 
226
 
  
 
250
 
  
 
29
 
  
 
975
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    
Right-of-use
assets		     Owned assets         
All figures in £ millions
    Land and
buildings		     Plant and
equipment		     Land and
buildings		     Plant and
equipment		     Assets in
the course of
construction		      Total  
Depreciation and impairment
                                                  
At 1 January 2020
      (58 )      (16 )      (200 )      (252 )      —          (526 ) 
Exchange differences
      2       1       6       9       —          18  
Charge for the year
      (65 )      (3 )      (25 )      (32 )      —          (125 ) 
Disposals and retirements
      1       9       22       29       —          61  
Reclassifications and transfers
      —         —         (2 )      2       —          —    
Impairment of assets to be classified as held for sale
      (4 )      —         —         —         —          (4 ) 
Transfer to assets classified as held for sale
      14       —         —         1       —          15  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
At 31 December 2020
      (110 )      (9 )      (199 )      (243 )      —          (561 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Exchange differences
   
 
(1
) 
  
 
1
 
  
 
(1
) 
  
 
1
 
  
 
—  
 
   
 
—  
 
Charge for the year
   
 
(46
) 
  
 
(3
) 
  
 
(16
) 
  
 
(30
) 
  
 
—  
 
   
 
(95
) 
Disposals and retirements
   
 
7
 
  
 
6
 
  
 
99
 
  
 
71
 
  
 
—  
 
   
 
183
 
Reclassifications and transfers
   
 
—  
 
  
 
—  
 
  
 
(5
) 
  
 
7
 
  
 
—  
 
   
 
2
 
Impairment
   
 
(119
) 
  
 
—  
 
  
 
(22
) 
  
 
(5
) 
  
 
—  
 
   
 
(146
) 
Transfer to assets classified as held for sale
   
 
—  
 
  
 
—  
 
  
 
8
 
  
 
—  
 
  
 
—  
 
   
 
8
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
At 31 December 2021
   
 
(269
) 
  
 
(5
) 
  
 
(136
) 
  
 
(199
) 
  
 
—  
 
   
 
(609
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Carrying amounts
                                                  
At 1 January 2020
      402       7       100       73       36        618  
At 31 December 2020
      329       3       97       65       21        515  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
At 31 December 2021
   
 
196
 
  
 
—  
 
  
 
90
 
  
 
51
 
  
 
29
 
   
 
366
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Key areas of estimation
– The recoverability of
right-of-use
assets and in particular assumptions related to the ability to sublease vacant leased assets in the future.
Depreciation expense of £40m (2020: £44m) has been included in the income statement in cost of goods sold and £55m (2020: £81m) in operating expenses. The impairment charge of £146m (2020: £nil) has been included within operating expenses within the income statement.
Property, plant and equipment assets are assessed for impairment triggers annually or when triggering events occur. In 2021, as part of a major restructuring programme, the Group simplified its property portfolio, reducing the overall office space required. All property related assets were assessed for impairment as a result of this triggering event and impairment charges of £141m have been recognised within costs of major restructuring (see note 4 for details). The recoverability of certain of the Group’s
right-of-use
assets is now based on the Group’s ability to sublease vacant space
.
This involves the use of assumptions related to future subleases including the achievable rent, lease start dates, lease incentives such as rent free periods and the discount rate applied. Should the future sublease outcomes be more or less favourable than the assumptions used by management this could result in additional impairment charges or reversals of impairment charges.
 
Where there is vacant space in the
right-of-use-assets,
the Group estimates that a 1% increase/decrease in the discount rate used would reduce/increase the recoverable value of the
right-of-use
assets by £10m. In addition, the Group estimates that a three month reduction/increase in the net sublet income (which could arise from changes to the achievable rent, lease incentives or sublet start dates) would reduce/increase the recoverable value of the
right-of-use
assets by £6m.