Consolidated statement of changes in equity
For the year ended December 31, 2010
| Attributable to ordinary shareholders | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Notes | Share capital £m |
Share premium £m |
Capital redemption reserves £m |
Hedging reserves1 £m |
Other reserves2 £m |
Retained earnings3 £m |
Total £m |
Non- controlling interests £m |
Total equity £m |
|
| At January 1, 2009 | 369 | 82 | 204 | (22) | 663 | 920 | 2,216 | 9 | 2,225 | |
| Profit for the year | – | – | – | – | – | 2,221 | 2,221 | (4) | 2,217 | |
| Foreign exchange translation differences on foreign operations | – | – | – | – | (155) | – | (155) | (1) | (156) | |
| Net actuarial losses on post-employment schemes | 18 | – | – | – | – | – | (1,148) | (1,148) | – | (1,148) |
| Movement in unrecognised post-retirement surplus | 18 | – | – | – | – | – | 707 | 707 | – | 707 |
| Movement in post-retirement minimum funding liability | 18 | – | – | – | – | – | 40 | 40 | – | 40 |
| Transfers from transition hedging reserve | – | – | – | (27) | – | – | (27) | – | (27) | |
| Share of OCI of joint ventures and associates4 | 10 | – | – | – | 22 | (2) | – | 20 | – | 20 |
| Related tax movements | 4 | – | – | – | 8 | – | 133 | 141 | – | 141 |
| Total comprehensive income for the year | – | – | – | 3 | (157) | 1,953 | 1,799 | (5) | 1,794 | |
| Arising on issues of ordinary shares | 19 | 2 | 16 | – | – | – | – | 18 | – | 18 |
| Issue of C Shares | 16 | – | – | (264) | – | – | 1 | (263) | – | (263) |
| Redemption of C Shares | 16 | – | – | 251 | – | – | (251) | – | – | – |
| Ordinary shares purchased | – | – | – | – | – | (17) | (17) | – | (17) | |
| Share-based payments – direct to equity5 | – | – | – | – | – | 28 | 28 | – | 28 | |
| Transactions with non-controlling interests | – | – | – | – | – | – | – | (4) | (4) | |
| Related tax movements – deferred tax | 4 | – | – | – | – | – | 1 | 1 | – | 1 |
| Other changes in equity in the year | 2 | 16 | (13) | – | – | (238) | (233) | (4) | (237) | |
| At January 1, 2010 | 371 | 98 | 191 | (19) | 506 | 2,635 | 3,782 | – | 3,782 | |
| Profit for the year | – | – | – | – | – | 539 | 539 | 4 | 543 | |
| Foreign exchange translation differences on foreign operations | – | – | – | – | 22 | – | 22 | – | 22 | |
| Net actuarial gains on post-employment schemes | 18 | – | – | – | – | – | 157 | 157 | – | 157 |
| Movement in unrecognised post-retirement surplus | 18 | – | – | – | – | – | (300) | (300) | – | (300) |
| Movement in post-retirement minimum funding liability | 18 | – | – | – | – | – | 49 | 49 | – | 49 |
| Share of OCI of joint ventures and associates4 | 10 | – | – | – | (18) | 1 | 1 | (16) | – | (16) |
| Related tax movements | 4 | – | – | – | – | (2) | 31 | 29 | – | 29 |
| Total comprehensive income for the year | – | – | – | (18) | 21 | 477 | 480 | 4 | 484 | |
| Arising on issues of ordinary shares | 19 | 3 | 64 | – | – | – | – | 67 | – | 67 |
| Issue of C Shares | 16 | – | (29) | (249) | – | – | 1 | (277) | – | (277) |
| Redemption of C Shares | 16 | – | – | 267 | – | – | (267) | – | – | – |
| Ordinary shares purchased | – | – | – | – | – | (124) | (124) | – | (124) | |
| Share-based payments – direct to equity5 | – | – | – | – | – | 42 | 42 | – | 42 | |
| Related tax movements – deferred tax | 4 | – | – | – | – | – | 5 | 5 | – | 5 |
| Other changes in equity in the year | 3 | 35 | 18 | – | – | (343) | (287) | – | (287) | |
| At December 31, 2010 | 374 | 133 | 209 | (37) | 527 | 2,769 | 3,975 | 4 | 3,979 | |
| 1 | See accounting policies note 1 – hedge accounting. Hedging reserves include nil (2009 nil, 2008 £19m) in respect of the transition hedging reserve and £(37)m (2009 £(19)m, 2008 £(41)m) in respect of the cash flow hedging reserve. |
| 2 | Other reserves include a merger reserve of £3m (2009 £3m, 2008 £3m) and a translation reserve of £524m (2009 £503m, 2008 £660m). |
| 3 | At December 31, 2010, 28,320,962 ordinary shares with a net book value of £125m (2009 7,156,497, 2008 8,017,635 ordinary shares with net book values of £25m and £34m respectively) were held and included in retained earnings. During the year, 6,586,568 ordinary shares with a net book value of £24m (2009 6,766,884 shares with a net book value of £25m) vested in share-based payment plans. During the year, the Company acquired 27,751,333 ordinary shares through purchases on the London Stock Exchange. |
| 4 | Certain of the Group’s joint ventures and associates hold interest rate and inflation swaps for which cash flow hedge accounting has been adopted. |
| 5 | The share-based payments charge direct to equity is the net of the credit to equity in respect of the share based payment charge to the income statement and the actual cost of shares vesting, excluding those vesting from own shares. |