All leases where the Group is a lessee are accounted for by recognising a right-of-use asset and a lease liability except for:
- Leases of low value assets; and
- Leases with a term of 12 months or less.
i) Amounts recognised in the balance sheet
Right-of-Use Assets
| Land and
buildings
£m | Equipment
£m | Total
£m |
| At 30 March 2019 | 388.5 | 7.8 | 396.3 |
| Reclassification from intangible assets | 2.4 | – | 2.4 |
| Additions on acquisition of subsidiary | 11.1 | 0.3 | 11.4 |
| Additions to right-of-use assets | 10.0 | 1.9 | 11.9 |
| Amortisation charge for the year | (70.2) | (3.4) | (73.6) |
| Effect of modification of lease | 11.6 | – | 11.6 |
| Derecognition of right-of-use assets | – | (0.7) | (0.7) |
| Impairment | (9.4) | – | (9.4) |
| At 3 April 2020 | 344.0 | 5.9 | 349.9 |
| At 3 April 2020 | 344.0 | 5.9 | 349.9 |
| Additions on acquisition of subsidiary | 2.7 | – | 2.7 |
| Additions to right-of-use assets | 12.5 | 0.6 | 13.1 |
| Amortisation charge for the year | (66.1) | (3.5) | (69.6) |
| Effect of modification of lease | 5.8 | – | 5.8 |
| Derecognition of right-of-use assets | (6.8) | (0.1) | (6.9) |
| Impairment | (12.2) | – | (12.2) |
| At 2 April 2021 | 279.9 | 2.9 | 282.8 |
The impairment charge for the period of £12.2m (2020: £9.4m) relates to the impairment of right-of-use assets in relation to the strategic project to close loss-making stores where a lease obligation still exists.
Lease Liabilities
| Land and
buildings
£m | Equipment
£m | Total
£m |
| At 30 March 2019 | 448.6 | 8.2 | 456.8 |
| Additions on acquisition of subsidiary | 11.0 | 0.2 | 11.2 |
| Additions to lease liabilities | 10.5 | 1.8 | 12.3 |
| Interest expense | 11.1 | 0.2 | 11.3 |
| Effect of modification to lease | 11.7 | – | 11.7 |
| Lease payments | (83.8) | (4.2) | (88.0) |
| Foreign exchange movements | 0.7 | – | 0.7 |
| At 3 April 2020 | 409.8 | 6.2 | 416.0 |
| At 3 April 2020 | 409.8 | 6.2 | 416.0 |
| Additions on acquisition of subsidiary | 2.7 | – | 2.7 |
| Additions to lease liabilities | 12.6 | 0.5 | 13.1 |
| Interest expense | 9.8 | 0.2 | 10.0 |
| Effect of modification to lease | 5.9 | – | 5.9 |
| Lease payments | (92.7) | (3.2) | (95.9) |
| Disposals to lease liabilities | (6.8) | – | (6.8) |
| Foreign exchange movements | (0.7) | – | (0.7) |
| At 2 April 2021 | 340.6 | 3.7 | 344.3 |
| Carrying value of lease liabilities included in the statement of financial position | 2 April
2021
£m | 3 April
2020
£m |
| Current liabilities | 63.4 | 83.2 |
| Non-current liabilities | 280.9 | 332.8 |
| Lease liabilities | 2 April
2021
£m | 3 April
2020
£m |
| Maturity analysis – contractual undiscounted cash flows | | |
| Less than one year | 71.2 | 92.9 |
| Between one and two years | 68.8 | 76.5 |
| Between two and three years | 64.4 | 65.1 |
| Between three and four years | 55.1 | 60.4 |
| Between four and five years | 43.2 | 51.6 |
| Between five and six years | 28.4 | 41.9 |
| Between six and seven years | 19.3 | 27.3 |
| Between seven and eight years | 12.1 | 18.2 |
| Between eight and nine years | 5.3 | 11.1 |
| Between nine and ten years | 3.5 | 4.3 |
| After ten years | 3.5 | 5.9 |
| Total contractual cash flows | 374.8 | 455.2 |
ii) Amounts recognised in the Consolidated Income Statement
| Land and
buildings
£m | Equipment
£m | Total
£m |
| 52 weeks ended 2 April 2021 | | | |
| Amortisation charge on right-of-use assets | 66.1 | 3.5 | 69.6 |
| Interest on lease liabilities | 9.8 | 0.2 | 10.0 |
| Expenses relating to short-term leases | 5.6 | – | 5.6 |
| Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets | – | 0.7 | 0.7 |
| | | |
| | | |
| 53 weeks ended 3 April 2020 | | | |
| Amortisation charge on right-of-use assets | 70.2 | 3.4 | 73.6 |
| Interest on lease liabilities | 11.1 | 0.2 | 11.3 |
| Expenses relating to short-term leases | 2.5 | – | 2.5 |
| Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets | – | 0.6 | 0.6 |
iii) Amounts recognised in Statement of Cash Flows
The total cash outflow for leases for the period ended 2 April 2021 was £95.9m (2020: £87.7m).