Notes to the Financial Statements (Group)
- 16 Financial instruments
- 17 Trade and other payables
- 18 Provisions for liabilities and charges
- 19 Capital and reserves
- 20 Share capital of parent company
19 Capital and reserves
| |
Share capital $m |
Share premium account $m |
Capital redemption reserve $m |
Merger reserve $m |
Other reserves $m |
Retained earnings $m |
Total $m |
Minority equity interests $m |
Total equity $m |
|---|---|---|---|---|---|---|---|---|---|
| At 1 January 2006 | 395 | 692 | 53 | 433 | 1,345 | 10,679 | 13,597 | 94 | 13,691 |
| Total recognised income and expense | – | – | – | – | – | 6,970 | 6,970 | 24 | 6,994 |
| Transfer to other reserves1 | – | – | – | – | 53 | (53) | – | – | – |
| Dividends | – | – | – | – | – | (2,217) | (2,217) | – | (2,217) |
| Issue of Ordinary Shares | 6 | 979 | – | – | – | – | 985 | – | 985 |
| Re-purchase of Ordinary Shares | (18) | – | 18 | – | – | (4,147) | (4,147) | – | (4,147) |
| Share-based payments | – | – | – | – | – | 129 | 129 | – | 129 |
| Treasury shares | – | – | – | – | – | (13) | (13) | – | (13) |
| Transfer from minority interests to payables | – | – | – | – | – | – | – | (6) | (6) |
| Net movement | (12) | 979 | 18 | – | 53 | 669 | 1,707 | 18 | 1,725 |
| At 31 December 2006 | 383 | 1,671 | 71 | 433 | 1,398 | 11,348 | 15,304 | 112 | 15,416 |
| Total recognised income and expense | – | – | – | – | – | 5,934 | 5,934 | 35 | 5,969 |
| Transfer to other reserves1 | – | – | – | – | (20) | 20 | – | – | – |
| Dividends | – | – | – | – | – | (2,658) | (2,658) | – | (2,658) |
| Issue of Ordinary Shares | 1 | 217 | – | – | – | – | 218 | – | 218 |
| Re-purchase of Ordinary Shares | (20) | – | 20 | – | – | (4,170) | (4,170) | – | (4,170) |
| Share-based payments | – | – | – | – | – | 150 | 150 | – | 150 |
| Transfer from minority interests to payables | – | – | – | – | – | – | – | (10) | (10) |
| Net movement | (19) | 217 | 20 | – | (20) | (724) | (526) | 25 | (501) |
| At 31 December 2007 | 364 | 1,888 | 91 | 433 | 1,378 | 10,624 | 14,778 | 137 | 14,915 |
| Total recognised income and expense | – | – | – | – | – | 4,176 | 4,176 | 48 | 4,224 |
| Transfer to other reserves1 | – | – | – | – | 27 | (27) | – | – | – |
| Dividends | – | – | – | – | – | (2,767) | (2,767) | – | (2,767) |
| Issue of Ordinary Shares | 1 | 158 | – | – | – | – | 159 | – | 159 |
| Re-purchase of Ordinary Shares | (3) | – | 3 | – | – | (610) | (610) | – | (610) |
| Share-based payments | – | – | – | – | – | 176 | 176 | – | 176 |
| Transfer from minority interests to payables | – | – | – | – | – | – | – | (11) | (11) |
| Dividend paid by subsidiary to minority interest | – | – | – | – | – | – | – | (26) | (26) |
| Net movement | (2) | 158 | 3 | – | 27 | 948 | 1,134 | 11 | 1,145 |
| At 31 December 2008 | 362 | 2,046 | 94 | 433 | 1,405 | 11,572 | 15,912 | 148 | 16,060 |
1Amounts charged to other reserves relate to exchange adjustments arising on goodwill.
| Cumulative translation differences included within retained earnings | 2008 $m |
2007 $m |
2006 $m |
|---|---|---|---|
| Balance at beginning of year | 2,414 | 1,945 | 1,080 |
| Foreign exchange arising on consolidation | (1,355) | 489 | 918 |
| Exchange adjustments on goodwill (recorded against other reserves) | (27) | 20 | (53) |
| Foreign exchange on borrowings | 291 | (40) | – |
| Net exchange movement in retained earnings | (1,091) | 469 | 865 |
| Balance at end of year | 1,323 | 2,414 | 1,945 |
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 creditors as at the date of the court order, are available for distribution.
Retained earnings
The cumulative amount of goodwill written off directly to reserves resulting from acquisitions, net of disposals, amounted to $654m (2007: $681m; 2006: $661m) using year end rates of exchange. At 31 December 2008, nil shares, at a cost of $nil, have been deducted from retained earnings (2007: nil shares, at a cost of $nil; 2006: 1,112,223 shares, at a cost of $40m).
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 3).
