Notes 21-25
- 21 Reserves
- 22 Minority interests
- 23 Dividends to shareholders
- 24 Acquisitions of business operations
- 25 Post-retirement benefits
21 RESERVES
| Share premium account $m |
Capital redemption reserve $m |
Merger reserve $m |
Other reserves $m |
Retained earnings $m |
Total $m |
|
|---|---|---|---|---|---|---|
| At 1 January 2005 | 550 | 36 | 433 | 1,384 | 11,590 | 13,993 |
| Profit retained for the year | 4,706 | 4,706 | ||||
| Dividends | (1,676) | (1,676) | ||||
| Share premiums | 142 | 142 | ||||
| Re-purchase of shares | 17 | (3,001) | (2,984) | |||
| Share-based payments | 143 | 143 | ||||
| Treasury shares | (11) | (11) | ||||
| Actuarial loss | (40) | (40) | ||||
| Available for sale losses | (10) | (10) | ||||
| Exchange adjustments: | ||||||
| Goodwill | (39) | 39 | – | |||
| Foreign exchange and other adjustments on consolidation | (1,038) | (1,038) | ||||
| Tax on items taken directly to reserves | (23) | (23) | ||||
| Net movements | 142 | 17 | – | (39) | (911) | (791) |
| At 31 December 2005 | 692 | 53 | 433 | 1,345 | 10,679 | 13,202 |
| Profit retained for the year | 6,043 | 6,043 | ||||
| Dividends | (2,217) | (2,217) | ||||
| Share premiums | 979 | 979 | ||||
| Re-purchase of shares | 18 | (4,147) | (4,129) | |||
| Share-based payments | 129 | 129 | ||||
| Treasury shares | (13) | (13) | ||||
| Actuarial loss | (108) | (108) | ||||
| Available for sale losses | (20) | (20) | ||||
| Exchange adjustments: | ||||||
| Goodwill | 53 | (53) | – | |||
| Foreign exchange and other adjustments on consolidation | 918 | 918 | ||||
| Tax on items taken directly to reserves | 137 | 137 | ||||
| Net movements | 979 | 18 | – | 53 | 669 | 1,719 |
| At 31 December 2006 | 1,671 | 71 | 433 | 1,398 | 11,348 | 14,921 |
| Profit retained for the year | 5,595 | 5,595 | ||||
| Dividends | (2,658) | (2,658) | ||||
| Share premiums | 217 | 217 | ||||
| Re-purchase of shares | 20 | (4,170) | (4,150) | |||
| Share-based payments | 150 | 150 | ||||
| Actuarial loss | (113) | (113) | ||||
| Available for sale losses | (9) | (9) | ||||
| Foreign exchange on borrowings | (40) | (40) | ||||
| Cash flow hedge in anticipation of debt issue | (21) | (21) | ||||
| Exchange adjustments: | ||||||
| Goodwill | (20) | 20 | – | |||
| Foreign exchange and other adjustments on consolidation | 489 | 489 | ||||
| Tax on items taken directly to reserves | 33 | 33 | ||||
| Net movements | 217 | 20 | – | (20) | (724) | (507) |
| At 31 December 2007 | 1,888 | 91 | 433 | 1,378 | 10,624 | 14,414 |
The cumulative translation differences at 31 December 2007 were $2,433m (2006 $1,945m, 2005 $1,080m).
Nature and purpose of other reserves
The other reserves arose from the cancellation of £1,255m of share premium account by the parent company in 1993 and the redenomination of share capital ($157m) in 1999. The reserves are available for writing off goodwill arising on consolidation and, subject to guarantees given to preserve the rights of creditors as at the date of the court order, are available for distribution.
The cumulative amount of goodwill written off directly to reserves resulting from acquisitions, net of disposals, amounted to $681m (2006 $661m, 2005 $714m) using year end rates of exchange. At 31 December 2007, nil shares, at a cost of $nil, have been deducted from retained earnings (2006 1,112,223 shares, at a cost of $40m, 2005 1,132,144 shares, at a cost of $42m).
There are no significant statutory or contractual restrictions on the distribution of current profits of subsidiaries, joint ventures or associates; undistributed profits of prior years are, in the main, permanently employed in the businesses of these companies. The undistributed income of AstraZeneca companies overseas may be liable to overseas taxes and/or UK taxation (after allowing for double taxation relief) if they were to be distributed as dividends (see Note 4).
