Notes to the 2008 Full financial statements continued

Transcription

1 30 CHANGES IN EQUITY, SHARE PREMIUM AND RESERVES Year ended 31 December 2008 Year ended 31 December 2007 Attributable Outside Total Attributable Outside Total to interests to interests shareholders shareholders of Rio Tinto of Rio Tinto Summary statement of changes in equity US$m US$m US$m US$m US$m US$m Opening balance 24,772 1,521 26,293 18,232 1,153 19,385 Total recognised (loss)/income for the year (2,165) 578 (1,587) 9, ,877 Dividends (note 10) (1,933) (348) (2,281) (1,507) (164) (1,671) Own shares purchased from Rio Tinto shareholders: Under capital management programme (1,372) (1,372) To satisfy share options (128) (128) (64) (64) Ordinary shares issued Outside interests in acquired companies Shares issued to outside interests Employee share options charged to income statement Closing balance 20,638 1,823 22,461 24,772 1,521 26, Total Total US$m US$m Share premium account At 1 January 1,932 1,919 Premium on issues of ordinary shares 6 13 Premium on issue of own shares held in treasury, subsequently repurchased and cancelled 2,767 4,705 1,932 Retained earnings At 1 January 19,033 14,401 Parent and subsidiaries profit for the year 3,879 7,058 Equity accounted units retained (loss)/profit for the year (203) 254 Actuarial (losses)/gains (1,299) 135 Dividends (1,933) (1,507) Own shares purchased from Rio Tinto shareholders under capital management programme (1,372) Employee share options charged to income statement Own shares purchased and cancelled (2,767) Tax recognised directly in statement of recognised income and expense Ordinary shares held in treasury, reissued to satisfy share options ,134 19, Rio Tinto 2008 Full financial statements

2 30 CHANGES IN EQUITY, SHARE PREMIUM AND RESERVES continued Capital redemption reserve At 1 January Own shares purchased and cancelled Hedging reserves (c) At 1 January (174) (133) Parent and subsidiaries net cash flow hedge fair value gains/(losses) 28 (197) Equity accounted units cash flow hedge fair value gains/(losses) 3 (4) Parent and subsidiaries net cash flow hedge losses transferred to the income statement Tax on the above (88) (174) Available for sale revaluation reserves (d) At 1 January (Losses)/gains on available for sale securities (173) 49 Gains on available for sale securities transferred to the income statement (1) (16) Tax on the above 10 (7) (107) 57 Other reserves (e) At 1 January 19 8 Own shares purchased from Rio Tinto shareholders to satisfy share options (128) (64) Employee share options: value of services Deferred tax on share options (87) 55 (169) 19 Foreign currency translation reserve (f) At 1 January 2, Currency translation adjustments (4,468) 1,796 Exchange losses (215) (30) Currency translation reclassified on disposal (2) Tax on exchange adjustments (2,072) 2,514 Total other reserves per balance sheet (2,322) 2,416 Retained profit and movements in reserves of subsidiaries include those arising from the Group s share of proportionally consolidated units. The capital redemption reserve was set up to comply with section 170 of the Companies Act 1985, when shares of a company are redeemed or purchased wholly out of the company s profits. The amount at 31 December 2008 reflects the amount by which the Company s issued share capital is diminished in accordance with section 162. (c) (d) The hedging reserve records gains or losses on cash flow hedges that are recognised initially in equity, as described in note 1(p). The available for sale revaluation reserves record fair value gains or losses relating to available for sale securities, as described in note 1(p). (e) Other reserves record the cumulative amount recognised in respect of options granted but not exercised to acquire shares in Rio Tinto Limited, less, where applicable, the cost of shares purchased to satisfy share options exercised. The estimated Total US$m Total US$m effect of unexercised options to acquire shares in Rio Tinto plc is recorded in retained earnings. (f) Exchange differences arising on the translation of the Group s net investment in foreign controlled companies are taken to the foreign currency translation reserve, as described in note 1(d), (net of translation adjustments relating to Rio Tinto Limited share capital). The cumulative differences relating to an investment are transferred to the income statement when the investment is disposed of. Rio Tinto 2008 Full financial statements 33

3 31 PRIMARY SEGMENTAL ANALYSIS (BY PRODUCT GROUP) Sales revenue Iron Ore ,527 9,193 Energy & Minerals ,539 7,096 Aluminium ,939 7,105 Copper & Diamonds ,227 6,258 Other Consolidated sales revenue ,264 29,700 Share of equity accounted units 3,801 3,818 Gross sales revenue 58,065 33,518 Consolidated profit before finance items and taxation Iron Ore (c) ,101 4,113 Energy & Minerals (c), (d) ,375 1,309 Aluminium (c) (61.0) 9.5 (6,219) 813 Copper & Diamonds (c), (d) ,242 3,026 Exploration and evaluation not attributed to product groups (1.5) 0.7 (158) 58 Other (1.5) (8.8) (147) (748) Operating profit (segment result) ,194 8,571 Share of profit after tax of equity accounted units Copper & Diamonds 838 1,542 Other Profit before finance items and taxation 11,233 10,155 Depreciation and amortisation (excluding share of equity accounted units) Iron Ore Energy & Minerals Aluminium , Copper & Diamonds Exploration and evaluation Other Product group total ,475 2,115 The product groups shown above reflect the Group s management structure and are the Group s primary segments in accordance with IAS 14. The analysis deals with: the sales revenue, profit before finance costs and taxation, and depreciation and amortisation, for subsidiary companies and proportionally consolidated units. Inter-segment sales are insignficant. The amounts presented for each product group exclude equity accounted units, but include the amounts attributable to outside equity shareholders. The product groups are consistent with those identified in the financial information by business unit data included on pages 70 and 71. However, that information includes the results of equity accounted units and presents different financial measures. The Alcan businesses are included within the Aluminium product group except for Packaging which is classified as a discontinued operation and is held for sale at the year end. Dampier Salt was reclassified from the Energy & Minerals product group to the Iron Ore group, and accordingly information for 2007 has been reclassified. (c) As detailed below, the analysis of profit before finance costs and taxation includes the profit on disposal of interests in businesses (including investments) and impairment (charges)/reversals, which are excluded from Underlying earnings. An analysis of net impairment (charges)/reversals reported in the operating income of each product group is shown below: (d) Impairment (charges)/reversals by product group Iron Ore Energy & Minerals Aluminium Copper & Diamonds Other Of the US$2,231 million gain on disposal of businesses, US$2,166 million related to the Copper & Diamonds segment and US$65 million to the Energy & Minerals segment Total Total US$m US$m Pre-tax Pre-tax (365) (94) 145 (7,341) (9) (205) (194) (10) (8,015) (58) 34 Rio Tinto 2008 Full financial statements

4 31 PRIMARY SEGMENTAL ANALYSIS (BY PRODUCT GROUP) continued Segment assets (subsidiaries and proportionally consolidated units) Iron Ore ,386 13,634 Energy & Minerals ,858 10,028 Aluminium ,472 52,095 Copper & Diamonds ,903 6,879 Other ,581 1,353 Product group total ,200 83,989 Equity accounted units Copper & Diamonds ,684 1,873 Aluminium ,733 4,074 Other Total ,568 6,128 Assets held for sale 5,325 7,024 Deferred tax assets 1, Current tax recoverable Pension surpluses Derivative assets Cash and liquid resources 1,185 1,651 Total assets 89, ,091 Segment liabilities (subsidiaries and proportionally consolidated units) Iron Ore (2,574) (2,358) Energy & Minerals (2,642) (2,115) Aluminium (7,077) (7,643) Copper & Diamonds (1,889) (1,808) Other (724) (932) Product group total (14,906) (14,856) Liabilities of disposal groups held for sale (2,121) (2,632) Borrowings and bank overdrafts (39,758) (46,869) Current tax payable (1,892) (837) Deferred tax liabilities (4,054) (4,912) Derivative liabilities (711) (1,379) Provision for post retirement benefits (3,713) (3,313) Total liabilities (67,155) (74,798) Capital additions Iron Ore ,491 2,465 Energy & Minerals ,868 1,198 Aluminium ,436 21,591 Copper & Diamonds , Other Total capital additions ,673 26,374 Analysis of capital additions Property, plant & equipment cash expenditure 8,466 19,191 Capitalised closure costs and other provisions Capitalised interest Intangible assets cash expenditure 108 6,561 Exploration & evaluation capitalised Movement in payables for capital expenditure Capital additions per above 9,673 26,374 The analysis of the Group s investment in equity accounted units includes loans to equity accounted Capital additions represent the total cost incurred during the period to acquire the non current assets shown above, measured on an accruals basis, in units, which are shown separately on the face of the balance sheet. accordance with IAS 14. Capital additions include the relevant non current assets of the acquired companies at the date of acquisition. Note These figures exclude capital additions of equity accounted units. Rio Tinto 2008 Full financial statements 35

5 32 SECONDARY SEGMENTAL ANALYSIS (GEOGRAPHICAL) Gross sales revenue by destination North America ,984 7,582 Europe ,127 6,641 Japan ,825 5,633 China ,803 6,021 Other Asia ,584 4,105 Australia and New Zealand ,877 1,892 Other ,865 1,644 Total ,065 33,518 Consolidated sales revenue by destination North America ,751 7,262 Europe ,025 6,027 Japan ,206 5,012 China ,134 5,342 Other Asia ,990 3,238 Australia and New Zealand ,876 1,771 Other ,282 1,048 Total ,264 29,700 Gross sales revenue by country of origin North America ,570 9,992 Australia and New Zealand ,652 15,243 South America ,731 3,195 Africa ,295 1,975 Indonesia Europe and other countries ,764 2,652 Total ,065 33,518 Segment assets Capital additions US$m US$m US$m US$m Assets and capital additions by location (excluding equity accounted units) North America 34,904 39,310 2,599 13,770 Australia and New Zealand 26,059 28,212 5,426 6,301 South America Africa 2,402 2, Indonesia Europe 9,724 13, ,188 Other countries ,360 84,694 9,673 26,374 Investments in equity accounted units North America 1, Australia and New Zealand 1,884 2,148 South America 1,240 1,498 Other countries 1,357 1,488 5,568 6,128 Assets held for sale 5,325 7,024 Deferred tax assets 1, Current tax recoverable Derivative assets Cash and liquid resources 1,185 1,651 Total assets 89, ,091 The United States of America and Canada have been combined to form the North America Geographical segment, having regard to the similarity of economic and political conditions in these countries. This analysis of investments in equity accounted units represents the Group s share of net assets plus loans to equity accounted units, which are shown separately on the face of the balance sheet. 36 Rio Tinto 2008 Full financial statements