Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2020shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | BT Group plc |
Entity Central Index Key | 0000756620 |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Entity Common Stock, Shares Outstanding | 9,968,127,681 |
Group income statement
Group income statement - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Statements [Line Items] | ||||
Revenue | £ 22,905 | £ 23,428 | £ 23,723 | |
Operating costs | (19,622) | (20,007) | (20,342) | |
Operating profit (loss) | 3,283 | 3,421 | 3,381 | |
Finance expense | (941) | (790) | (776) | |
Finance income | 44 | 34 | 12 | |
Net finance expense | (897) | (756) | (764) | |
Share of post tax profit (loss) of associates and joint ventures | (33) | 1 | (1) | |
Profit (loss) before taxation | 2,353 | 2,666 | 2,616 | |
Taxation | (619) | (507) | (584) | |
Profit (loss) for the year | £ 1,734 | £ 2,159 | £ 2,032 | |
Earnings per share | ||||
Basic (in GBP per share) | £ 0.175 | £ 0.218 | £ 0.205 | |
Diluted (in GBP per share) | £ 0.174 | £ 0.216 | £ 0.204 | |
Before Specific Items | ||||
Statements [Line Items] | ||||
Revenue | £ 22,824 | £ 23,459 | £ 23,746 | |
Operating costs | (19,213) | (19,613) | (19,755) | |
Operating profit (loss) | 3,611 | 3,846 | 3,991 | |
Finance expense | (796) | (651) | (558) | |
Finance income | 39 | 34 | 12 | |
Net finance expense | (757) | (617) | (546) | |
Share of post tax profit (loss) of associates and joint ventures | 6 | 1 | (1) | |
Profit (loss) before taxation | 2,860 | 3,230 | 3,444 | |
Taxation | (536) | (619) | (671) | |
Profit (loss) for the year | £ 2,324 | £ 2,611 | £ 2,773 | |
Earnings per share | ||||
Basic (in GBP per share) | £ 0.235 | £ 0.263 | £ 0.279 | |
Diluted (in GBP per share) | £ 0.233 | £ 0.261 | £ 0.278 | |
Specific Items | ||||
Statements [Line Items] | ||||
Revenue | [1] | £ 81 | £ (31) | £ (23) |
Operating costs | [1] | (409) | (394) | (587) |
Operating profit (loss) | [1] | (328) | (425) | (610) |
Finance expense | [1] | (145) | (139) | (218) |
Finance income | [1] | 5 | ||
Net finance expense | [1] | (140) | (139) | (218) |
Share of post tax profit (loss) of associates and joint ventures | [1] | (39) | ||
Profit (loss) before taxation | [1] | (507) | (564) | (828) |
Taxation | [1] | (83) | 112 | 87 |
Profit (loss) for the year | [1] | £ (590) | £ (452) | £ (741) |
Earnings per share | ||||
Basic (in GBP per share) | [1] | £ (0.060) | £ (0.045) | £ (0.074) |
Diluted (in GBP per share) | [1] | £ (0.059) | £ (0.045) | £ (0.074) |
[1] | For a definition of specific items, see page 204. An analysis of specific items is provided in note 9. |
Group statement of comprehensiv
Group statement of comprehensive income - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Profit for the year | £ 1,734 | £ 2,159 | £ 2,032 |
Items that will not be reclassified to the income statement | |||
Remeasurements of the net pension obligation | 4,853 | (2,102) | 1,684 |
Tax on pension remeasurements | (808) | 384 | (263) |
Items that have been or may be reclassified to the income statement | |||
Exchange differences on translation of foreign operations | 40 | 64 | (188) |
Fair value movements on available-for-sale assets | 11 | ||
Fair value movements on assets at fair value through other comprehensive income | (5) | 3 | |
Movements in relation to cash flow hedges: | |||
– net fair value gains (losses) | 854 | 176 | (368) |
– recognised in income and expense | (382) | (18) | 277 |
Tax on components of other comprehensive income that have been or may be reclassified | (84) | (41) | 1 |
Other comprehensive income (loss) for the year, net of tax | 4,468 | (1,534) | 1,154 |
Total comprehensive income (loss) for the year | £ 6,202 | £ 625 | £ 3,186 |
Group balance sheet
Group balance sheet - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Non-current assets | ||||
Intangible assets | £ 13,889 | £ 14,385 | £ 14,447 | |
Property, plant and equipment | 18,474 | 17,835 | 17,000 | |
Right-of-use assets | [1] | 5,391 | ||
Derivative financial instruments | 2,229 | 1,481 | 1,312 | |
Investments | 20 | 54 | 53 | |
Associates and joint ventures | 12 | 47 | 38 | |
Trade and other receivables | 481 | 445 | 317 | |
Contract assets | 279 | 249 | ||
Deferred tax assets | 300 | 1,347 | 1,326 | |
Non-current assets | 41,075 | 35,843 | 34,493 | |
Current assets | ||||
Programme rights | 310 | 310 | 272 | |
Inventories | 300 | 369 | 239 | |
Trade and other receivables | 2,704 | 3,222 | 4,014 | |
Contract assets | 1,442 | 1,353 | ||
Assets classified as held for sale | 268 | 89 | 0 | |
Current tax receivable | 67 | 110 | 77 | |
Derivative financial instruments | 260 | 111 | 197 | |
Investments | 5,092 | 3,214 | 3,022 | |
Cash and cash equivalents | 1,549 | 1,666 | 528 | |
Current assets | 11,992 | 10,444 | 8,349 | |
Current liabilities | ||||
Loans and other borrowings | 2,842 | 2,100 | 2,281 | |
Derivative financial instruments | 46 | 48 | 50 | |
Trade and other payables | 5,794 | 5,790 | 7,168 | |
Contract liabilities | 972 | 1,225 | ||
Lease liabilities | [1] | 812 | ||
Liabilities classified as held for sale | 211 | 0 | 0 | |
Current tax liabilities | 21 | 15 | 83 | |
Provisions | 288 | 424 | 603 | |
Current liabilities | 10,986 | 9,602 | 10,185 | |
Total assets less current liabilities | 42,081 | 36,685 | 32,657 | |
Non-current liabilities | ||||
Loans and other borrowings | 16,492 | 14,776 | 11,994 | |
Derivative financial instruments | 966 | 892 | 787 | |
Contract liabilities | 179 | 200 | ||
Lease liabilities | [1] | 5,748 | ||
Retirement benefit obligations | 1,140 | 7,182 | 6,847 | |
Other payables | 754 | 1,479 | 1,326 | |
Deferred tax liabilities | 1,608 | 1,407 | 1,340 | |
Provisions | 431 | 582 | 452 | |
Non-current liabilities | 27,318 | 26,518 | 22,746 | |
Equity | ||||
Share capital | 499 | 499 | 499 | |
Share premium | 1,051 | 1,051 | 1,051 | |
Own shares | (237) | (167) | (186) | |
Merger reserve | 2,572 | 4,147 | 6,647 | |
Other reserves | 1,119 | 718 | 534 | |
Retained earnings | 9,759 | 3,919 | 1,366 | |
Total equity | 14,763 | 10,167 | 9,911 | |
Total equity and liabilities | £ 42,081 | £ 36,685 | £ 32,657 | |
[1] | Right-of-use assets and lease liabilities arise following adoption of IFRS 16 on 1 April 2019. See note 1 to the consolidated financial statements. |
Group statement of changes in e
Group statement of changes in equity - GBP (£) £ in Millions | Total | Share capital | [1] | Share premium | [2] | Own shares | [3] | Merger reserve | [4] | Other reserves | [5] | Retained earnings |
Beginning balance at Mar. 31, 2017 | £ 8,335 | £ 499 | £ 1,051 | £ (96) | £ 6,647 | £ 884 | £ (650) | |||||
Profit for the year | 2,032 | 2,032 | ||||||||||
Other comprehensive income (loss) – before tax | 1,139 | (545) | 1,684 | |||||||||
Tax on other comprehensive income (loss) | (262) | 1 | (263) | |||||||||
Transferred to the income statement | 277 | 277 | ||||||||||
Total comprehensive income (loss) for the year | 3,186 | (267) | 3,453 | |||||||||
Dividends to shareholders | (1,524) | (1,524) | ||||||||||
Share-based payments | 84 | 84 | ||||||||||
Tax on share-based payments | (2) | (2) | ||||||||||
Net buyback of own shares | (168) | (90) | (78) | |||||||||
Transfer to realised profit | (83) | 83 | ||||||||||
Ending balance at Mar. 31, 2018 | 9,911 | 499 | 1,051 | (186) | 6,647 | 534 | 1,366 | |||||
Profit for the year | 2,159 | 2,159 | ||||||||||
Other comprehensive income (loss) – before tax | (1,859) | 243 | (2,102) | |||||||||
Tax on other comprehensive income (loss) | 343 | (41) | 384 | |||||||||
Transferred to the income statement | (18) | (18) | ||||||||||
Total comprehensive income (loss) for the year | 625 | 184 | 441 | |||||||||
Dividends to shareholders | (1,503) | (1,503) | ||||||||||
Unclaimed Dividend over 10 years | 14 | 14 | ||||||||||
Share-based payments | 67 | 67 | ||||||||||
Tax on share-based payments | 0 | 0 | ||||||||||
Net buyback of own shares | (4) | 19 | (23) | |||||||||
Transfer to realised profit | (2,500) | 2,500 | ||||||||||
Other movements | (3) | (3) | ||||||||||
Ending balance at Mar. 31, 2019 | 10,167 | 499 | 1,051 | (167) | 4,147 | 718 | 3,919 | |||||
Profit for the year | 1,734 | 1,734 | ||||||||||
Other comprehensive income (loss) – before tax | 5,742 | 889 | 4,853 | |||||||||
Tax on other comprehensive income (loss) | (892) | (84) | (808) | |||||||||
Transferred to the income statement | (382) | (382) | ||||||||||
Total comprehensive income (loss) for the year | 6,202 | 423 | 5,779 | |||||||||
Dividends to shareholders | (1,521) | (1,521) | ||||||||||
Unclaimed Dividend over 10 years | 2 | 2 | ||||||||||
Share-based payments | 72 | 72 | ||||||||||
Tax on share-based payments | 0 | 0 | ||||||||||
Net buyback of own shares | (84) | (70) | (14) | |||||||||
Transfer to realised profit | (1,575) | (22) | 1,597 | |||||||||
Other movements | (4) | (4) | ||||||||||
Ending balance at Mar. 31, 2020 | £ 14,763 | £ 499 | £ 1,051 | £ (237) | £ 2,572 | £ 1,119 | £ 9,759 | |||||
[1] | The allotted, called up, and fully paid ordinary share capital of BT Group plc at 31 March 2020 was £499m comprising 9,968,127,681 ordinary shares of 5p each (2019: £499m comprising 9,968,127,681 ordinary shares of 5p each). | |||||||||||
[2] | The share premium account, comprising the premium on allotment of shares, is not available for distribution. | |||||||||||
[3] | For further analysis of own shares, see note 21. | |||||||||||
[4] | The merger reserve balance at 1 April 2017 includes £998m related to the group reorganisation that occurred in November 2001 and represented the difference between the nominal value of shares in the new parent company, BT Group plc, and the aggregate of the share capital, share premium account and capital redemption reserve of the prior parent company, British Telecommunications plc. In addition, on 29 January 2016, the company issued 1,594,900,429 ordinary shares of 5p at 470.7p per share. These shares were used as part consideration for the acquisition of EE. As a result of this transaction the merger reserve was credited with £7,424m net of £3m issue costs. Following settlement of intercompany loans by qualifying consideration of £1,575m and (2018/19: £2,500m), equivalent balances were transferred from merger reserve to realised profit. | |||||||||||
[5] | For further analysis of other reserves, see note 29. |
Group statement of changes in_2
Group statement of changes in equity (Parenthetical) - GBP (£) £ in Millions | Jan. 29, 2016 | Mar. 31, 2020 | Mar. 31, 2019 | Apr. 01, 2017 | |
Unclaimed dividend maturity period | 10 years | 10 years | |||
Share capital | £ 499 | £ 499 | |||
Equity | £ 14,763 | £ 10,167 | |||
Issued capital | |||||
Number of ordinary shares (in shares) | 9,968,127,681 | 9,968,127,681 | |||
Par value per share (in GBP per share) | £ 0.05 | £ 0.05 | |||
Equity | [1] | £ 499 | £ 499 | ||
Merger reserve | |||||
Par value per share (in GBP per share) | £ 0.05 | ||||
Equity | [2] | 2,572 | 4,147 | ||
Group reorganisation amount | £ 998 | ||||
Number of shares issued (in shares) | 1,594,900,429 | ||||
Issue of shares at market price (in GBP per share) | £ 4.707 | ||||
Increase in merger reserve from share issuance | £ 7,424 | ||||
Issue costs | £ 3 | ||||
Transfer to realised profit | [2] | £ 1,575 | £ 2,500 | ||
[1] | The allotted, called up, and fully paid ordinary share capital of BT Group plc at 31 March 2020 was £499m comprising 9,968,127,681 ordinary shares of 5p each (2019: £499m comprising 9,968,127,681 ordinary shares of 5p each). | ||||
[2] | The merger reserve balance at 1 April 2017 includes £998m related to the group reorganisation that occurred in November 2001 and represented the difference between the nominal value of shares in the new parent company, BT Group plc, and the aggregate of the share capital, share premium account and capital redemption reserve of the prior parent company, British Telecommunications plc. In addition, on 29 January 2016, the company issued 1,594,900,429 ordinary shares of 5p at 470.7p per share. These shares were used as part consideration for the acquisition of EE. As a result of this transaction the merger reserve was credited with £7,424m net of £3m issue costs. Following settlement of intercompany loans by qualifying consideration of £1,575m and (2018/19: £2,500m), equivalent balances were transferred from merger reserve to realised profit. |
Group cash flow statement
Group cash flow statement - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flow from operating activities | ||||
Profit (loss) before taxation | £ 2,353 | £ 2,666 | £ 2,616 | |
Share of post tax (profit) loss of associates and joint ventures | 33 | (1) | 1 | |
Net finance expense | 897 | 756 | 764 | |
Operating profit | 3,283 | 3,421 | 3,381 | |
Other non-cash charges | [1] | 209 | (112) | 33 |
Loss (profit) on disposal of businesses | 36 | 5 | (1) | |
Profit on disposal of property, plant and equipment | (115) | 0 | 0 | |
Depreciation and amortisation | 4,274 | 3,546 | 3,514 | |
Decrease (increase) in inventories | 69 | (138) | (14) | |
Decrease (increase) in programme rights | 33 | 49 | (34) | |
Decrease (increase) in trade and other receivables | [2] | 163 | (58) | (156) |
Decrease (increase) in contract assets | (119) | 15 | 0 | |
Increase (decrease) in trade and other payables | 144 | 57 | (345) | |
Decrease in contract liabilities | (236) | (72) | 0 | |
Decrease in other liabilities | [3] | (1,182) | (1,934) | (775) |
Decrease in provisions | (78) | (92) | (203) | |
Cash generated from operations | 6,481 | 4,687 | 5,400 | |
Income taxes paid | (210) | (431) | (473) | |
Net cash inflow from operating activities | 6,271 | 4,256 | 4,927 | |
Cash flow from investing activities | ||||
Interest received | 30 | 23 | 7 | |
Dividends received from associates and joint ventures | 1 | 0 | 0 | |
Acquisition of subsidiaries | [4] | 0 | 0 | (16) |
Proceeds on disposal of subsidiaries, associates and joint ventures | [4] | 60 | 23 | 2 |
Acquisition of associates and joint ventures | (8) | (9) | (9) | |
Proceeds on disposal of current financial assets | [5] | 12,000 | 12,887 | 11,134 |
Purchases of current financial assets | [5] | (13,877) | (13,088) | (12,629) |
Proceeds from sales of investments other than investments accounted for using equity method | [6] | 33 | 1 | |
Proceeds on disposal of non-current asset investments | [6] | 19 | ||
Proceeds on disposal of property, plant and equipment | 216 | 41 | 21 | |
Purchases of property, plant and equipment and software | (4,105) | (3,678) | (3,362) | |
Net cash outflow from investing activities | (5,650) | (3,800) | (4,833) | |
Cash flow from financing activities | ||||
Equity dividends paid | (1,520) | (1,504) | (1,523) | |
Interest paid | [7] | (736) | (531) | (555) |
Repayment of borrowings | [8] | (1,111) | (1,423) | (1,401) |
Proceeds from bank loans and bonds | 2,843 | 3,972 | 3,760 | |
Payment of lease liabilities | [7] | (651) | ||
Cash flows from derivatives related to net debt | 452 | 124 | (188) | |
Proceeds from issue of own shares | 2 | 5 | 53 | |
Repurchase of ordinary share capital | (86) | (9) | (221) | |
Net cash inflow (outflow) from financing activities | (807) | 634 | (75) | |
Net increase (decrease) in cash and cash equivalents | (186) | 1,090 | 19 | |
Opening cash and cash equivalents | [9] | 1,594 | 499 | 511 |
Net increase (decrease) in cash and cash equivalents | (186) | 1,090 | 19 | |
Effect of exchange rate changes | 1 | 5 | (31) | |
Closing cash and cash equivalents | [9] | £ 1,409 | £ 1,594 | £ 499 |
[1] | Other non-cash charges include £58m goodwill impairment charge on assets associated with our domestic operations in France and selected domestic operations and infrastructure in 16 countries in Latin America that were classified as held for sale during the period. See note 23. | |||
[2] | Includes a prepayment of £nil (2018/19: £nil,2017/18: £325m) in respect of the acquisition of Spectrum. | |||
[3] | Includes pension deficit payments of £1,274m (2018/19: £2,024m, 2017/18: £872m). | |||
[4] | Acquisitions and disposals of subsidiaries are shown net of cash acquired or disposed of. | |||
[5] | Primarily consists of investment in and redemption of amounts held in liquidity funds. | |||
[6] | Relates to sale of a fair value through equity investment in 2019/20 and 2018/19, and assets held for sale classified within trade and other receivables in 2017/18. | |||
[7] | Payment of lease liabilities relates to the principal element of lease liabilities recognised following adoption of IFRS 16 on 1 April 2019. Interest on lease liabilities is included within 'Interest paid'. See note 1 to the consolidated financial statements. | |||
[8] | Repayment of borrowings includes the impact of hedging and repayment of finance lease liabilities in 2018/19 and 2017/18. | |||
[9] | Net of bank overdrafts of £183m (2018/19: £72m, 2017/18: £29m). |
Group cash flow statement (Pare
Group cash flow statement (Parenthetical) | 12 Months Ended | ||
Mar. 31, 2020GBP (£)country | Mar. 31, 2019GBP (£) | Mar. 31, 2018GBP (£) | |
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||
Prepayments in respect of acquisition of intangible assets | £ 0 | £ 0 | £ 325,000,000 |
Pension deficit payments | 1,274,000,000 | 2,024,000,000 | 872,000,000 |
Net of bank overdrafts | £ 183,000,000 | £ 72,000,000 | £ 29,000,000 |
Latin America divestment | |||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||
Number of countries included in divestment | country | 16 | ||
Disposal groups classified as held for sale | France and Latin America divestments | |||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||
Goodwill impairment | £ 58,000,000 |
Basis of preparation
Basis of preparation | 12 Months Ended |
Mar. 31, 2020 | |
Basis Of Preparation [Abstract] | |
Basis of preparation | Basis of preparation Preparation of the financial statements These consolidated financial statements have been prepared in accordance with the Companies Act 2006 as applicable to companies using International Financial Reporting Standards (IFRS), Article 4 of the IAS Regulation and International Accounting Standards (IAS) and IFRS and related interpretations, as adopted by the European Union. The consolidated financial statements are also in compliance with IFRS as issued by the International Accounting Standards Board (the IASB) and interpretations as issued by the IFRS Interpretations Committee. The consolidated financial statements are prepared on a going concern basis. These financial statements consolidate BT Group plc, the parent company, and its subsidiaries (together the ‘group’, ‘us’, ‘we’ or ‘our’). The consolidated financial statements are prepared on the historical cost basis, except for certain financial and equity instruments that have been measured at fair value. The consolidated financial statements are presented in sterling, the functional currency of BT Group plc. New and amended accounting standards effective during the year We adopted IFRS 16 ‘Leases’ for the first time on 1 April 2019. The standard has had a significant impact on the financial statements. Background IFRS 16 replaces IAS 17 ‘Leases’ and related interpretations. The standard requires lessees to recognise right-of-use assets and lease liabilities for all leases meeting the lease definition set out by the standard unless certain exemptions are available. Accounting for lessors is largely unchanged. We have recognised arrangements previously disclosed as operating lease commitments at 31 March 2019 on the balance sheet. The key driver is our portfolio of leased land and buildings, the majority of which were previously recognised off balance sheet following a sale and operating leaseback transaction in 2001. Cell and switch site leases represent another material element, due to the long lease terms associated with these arrangements. We have also recognised lease liabilities in respect of certain arrangements that were previously accounted for as service contracts because they did not meet the IAS 17 lease definition. These relate predominantly to dark fibre and data centre capacity. Transition We chose to adopt IFRS 16 on a modified retrospective basis. On transition, we recognised lease liabilities by discounting remaining payments payable under lease arrangements using an appropriate incremental borrowing rate. We recognised right-of-use assets equivalent to the corresponding lease liabilities, adjusted for pre-existing prepaid lease payments, accrued lease expenses, and related onerous lease and decommissioning provisions. We have recognised the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings at 1 April 2019, i.e. the date of initial application. Prior year comparatives have not been restated for the effect of IFRS 16 and continue to be reported under IAS 17. Practical expedients and exemptions We have elected to make use of the following practical expedients and exemptions available under IFRS 16: • Where appropriate, onerous lease provisions in existence at the date of initial adoption have been derecognised and applied against the corresponding right-of-use assets as a proxy for impairment. • Initial direct costs have been excluded when measuring right-of-use assets recognised on initial adoption. • Hindsight has been used in assessing the lease term on initial adoption. • Low-value leases and short-term leases are excluded from the IFRS 16 accounting model, i.e. they are accounted for as operating expenditure. • Leases of intangible assets such as software continue to be accounted for under IAS 38 ‘Intangible Assets’. • Where practicable, and by class of underlying asset, arrangements containing both lease components and non-lease components are accounted for as though they comprise a single lease component. Financial Impact BT as lessee In the prior year Annual Report we estimated that lease liabilities totalling £5.6b n - £6.6b n would be recognised on adoption of IFRS 16. Actual liabilities recognised on transition were £6.1b n ( £6.3b n including pre-existing finance leases), which were measured by discounting remaining lease payments using the group’s incremental borrowing rate. The weighted-average rate applied was 2.2% . The corresponding right-of-use assets recognised were £5.2b n. The difference to lease liabilities predominantly relates to accruals for rent inflation associated with operating leases which were previously classified as trade and other payables, but which have been reclassified to the corresponding right-of-use assets on transition to IFRS 16. The reconciliation of operating lease commitments disclosed at 31 March 2019 to lease liabilities recognised at 1 April 2019 is as follows: £m Operating lease commitments disclosed as at 31 March 2019 a 6,619 Arrangements not considered to be a lease under IAS 17 & IFRIC 4 74 Adjustments as a result of different treatment of extension & termination options 437 Short-term & low value leases recognised as an expense on a straight-line basis (8 ) Effect of discounting under the group's incremental borrowing rate (901 ) Other b (158 ) Additional lease liabilities recognised as a result of IFRS 16 6,063 Existing finance leases 206 Total lease liabilities recognised as at 1 April 2019 6,269 a BT Group plc Annual Report 2019, note 30 (page 171). b Other primarily represents leases between BT Group plc and MBNL, of which BT’s share is eliminated for consolidation purposes, but which had been shown gross in operating lease commitments disclosed as at 31 March 2019. Application of IFRS 16 to lessee accounting resulted in an immaterial adjustment to retained earnings at 1 April 2019. This adjustment related to the impairment of right-of-use assets that were impaired on transition, and the release of onerous lease provisions previously recognised in respect of these arrangements. We have presented right-of-use assets and the current and non-current elements of lease liabilities on the face of the consolidated balance sheet. Additionally, to support the additional lessee accounting disclosure requirements introduced by IFRS 16 we have added a dedicated note (note 15 ) which explains movements in the right-of-use assets during the year, along with other relevant disclosures, accounting policies and judgements. The cash flow statement has been revised to present the element of cash lease payments attributable to lease interest expense and the element attributable to repayment of lease liabilities within cash flows from financing activities. BT as lessor Lessor accounting is substantially unchanged under IFRS 16 and adoption of the standard has not had a material impact on the accounting for arrangements previously identified as leases. The revised lease definition introduced by IFRS 16 has however required us to evaluate whether there are any arrangements that are now in scope of the standard and should therefore be accounted for as leases. The areas requiring the greatest judgement concern arrangements to provide external communications providers (CPs) with use of the group’s fixed-line telecommunications infrastructure. We have concluded that arrangements that provide CPs with the exclusive use of the underlying infrastructure generally contain leases. This primarily includes “last mile” connections used by Openreach to provide CPs with connectivity to their customers' premises, along with other fibre products such as Ethernet. It also includes wholesale fixed network access arrangements sold by Enterprise. The accounting for ongoing rentals is unchanged under IFRS 16, however upfront connections fees are now deferred over the lease term rather than the contractual period. For Openreach’s last mile arrangements, the lease term is longer than the current contractual deferral period as it also covers the duration that we are ‘reasonably certain’ that CPs will retain the use of the line beyond the initial contractual period. Based on evaluation of historic connection churn rates we have assessed this period as being 6 months for all last mile arrangements except for FTTP, which is 12 months . Additional deferred income has been recognised in respect of active arrangements at the transition date, and a corresponding adjustment has been made to retained earnings. This has not had a material impact on the balance sheet or income statement. The introduction of IFRS 16 has not had a material impact on the deferral of connection fees in regard to Openreach’s other fibre products and Enterprise’s wholesale fixed network access arrangements. We continue to present income from these arrangements within revenue in the income statement as they relate to the group’s core business activities. We have included additional disclosures in the revenue note (note 5 ) clarifying our accounting policy for operating lease income and the proportion of our revenue generated from arrangements that meet the definition of operating leases. Products sold to end users by our consumer and enterprise units which make use of fixed-line telecommunications infrastructure are not considered to contain leases because the customer does not control the use of the underlying infrastructure. Opening balance adjustments The transition method we have chosen in adopting IFRS 16 means we do not restate comparative information for the impact of the standard. We have instead adjusted the 1 April 2019 balance sheet to reflect the impact on opening retained earnings. Set out below is the impact on the balance sheet of the transition to IFRS 16. At 31 March 2019 £m IFRS 16 opening balance adjustment £m At 1 April 2019 £m Non-current assets Right-of-use assets — 5,155 5,155 Intangible assets a 14,385 (70 ) 14,315 Property, plant and equipment a 17,835 (34 ) 17,801 Deferred tax assets b 1,347 2 1,349 Other non-current assets 2,276 — 2,276 35,843 5,053 40,896 Current assets Trade and other receivables c 3,222 (50 ) 3,172 Other current assets 7,222 — 7,222 10,444 (50 ) 10,394 Current liabilities Lease liabilities — 725 725 Loans and other borrowings a 2,100 (16 ) 2,084 Trade and other payables d 5,790 91 5,881 Contract liabilities d 1,225 (34 ) 1,191 Provisions f 424 (17 ) 407 Other current liabilities 63 — 63 9,602 749 10,351 Total assets less current liabilities 36,685 4,254 40,939 Non-current liabilities Lease liabilities — 5,544 5,544 Loans and other borrowings a 14,776 (190 ) 14,586 Contract liabilities d 200 (12 ) 188 Other payables d,e 1,479 (825 ) 654 Provisions f 582 (192 ) 390 Other non-current liabilities 9,481 — 9,481 26,518 4,325 30,843 Equity Retained earnings g 3,919 (71 ) 3,848 All other reserves and equity 6,248 — 6,248 Total equity 10,167 (71 ) 10,096 36,685 4,254 40,939 a Finance lease assets and liabilities reclassified to right-of-use asset and lease liabilities respectively. b Deferred tax recognised on retained earnings adjustment for deferral of connection fees associated with ‘last mile’ arrangements. c Trade and other receivables adjusted to reclassify lease prepayments to the corresponding right-of-use assets. d Contract liabilities recognised in respect of 'last mile' arrangements reclassified to trade and other payables. e Other payables adjusted to reclassify accruals for rent inflation associated with operating leases to the corresponding right-of-use assets. f Onerous lease provisions reclassified to the corresponding right-of-use assets or released to retained earnings. g Retained earnings adjusted to recognise deferred income in respect of connection fees received for ‘last mile’ arrangements, and to reflect impairment of right-of-use assets and release of corresponding onerous lease provisions. Other standards The following amended standards and interpretations were also effective during the year, however, they have not had a significant impact on our consolidated financial statements. • IFRIC 23 Uncertainty over Income Tax Treatments. • Prepayment Features with Negative Compensation (Amendments to IFRS 9). • Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28). • Plan Amendment, Curtailment or Settlement (Amendments to IAS 19). • Annual Improvements to IFRS Standards 2015-2017 Cycle - various standards. New and amended accounting standards that have been issued but are not yet effective The following new or amended standards and interpretations are applicable in future periods but are not expected to have a significant impact on the consolidated financial statements. • Amendments to References to Conceptual Framework in IFRS Standards. • Definition of a Business (Amendments to IFRS 3). • Definition of Material (Amendments to IAS 1 and IAS 8). • IFRS 17 Insurance Contracts. Presentation of specific items Our income statement and segmental analysis separately identify trading results before specific items (‘adjusted’). The directors believe that presentation of our results in this way is relevant to an understanding of our financial performance, as specific items are identified by virtue of their size, nature or incidence. This presentation is consistent with the way that financial performance is measured by management and reported to the Board and the Executive Committee and assists in providing a meaningful analysis of our trading results. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. Specific items may not be comparable to similarly titled measures used by other companies. Examples of charges or credits meeting the above definition and which have been presented as specific items in the current and/or prior years include acquisitions/disposals of businesses and investments, regulatory settlements, historical insurance or litigation claims, business restructuring programmes, asset impairment charges, property rationalisation programmes, net interest on pensions and the settlement of multiple tax years. In the event that other items meet the criteria, which are applied consistently from year to year, they are also treated as specific items. We have also included the impacts of Covid-19 on various balance sheet items as at 31 March 2020 as specific. The impact of Covid-19 on underlying trading is recognised in our underlying (adjusted) results and not as a specific item. Specific items for the current and prior years are disclosed in note 9 . Adjustments to prior year disclosures due to internal reorganisations We have restated prior year comparatives presented in the segment information and revenue notes (notes 4 and 5 ) for the following organisational changes. From 1 April 2019 we changed the allocation of group overhead costs and transferred the Emergency Services Network contract from Consumer to Enterprise. This has had the following impact on 2019 and 2018 comparatives: • Segment revenue increased by £104m and £64m in Enterprise in the years ended 31 March 2019 and 2018 respectively, with corresponding decreases in Consumer. All revenue related to the equipment and other services classification. • Adjusted EBITDA increased by £321m in Openreach and £23m in Other and decreased by £203m in Consumer, £80m in Enterprise and £61m in Global in the year ended 31 March 2019; and increased by £318m in Openreach and decreased by £171m in Consumer, £82m in Enterprise, £60m in Global and £5m in Other in the year ended 31 March 2018. • Depreciation and amortisation decreased by £70m in Openreach and increased by £6m in Consumer, £56m in Enterprise and £8m in Global in the year ended 31 March 2019; and decreased by £71m in Openreach and increased by £21m in Consumer, £41m in Enterprise, £8m in Global and £1m in Other in the year ended 31 March 2018. • Operating profit increased by £391m in Openreach and £23m in Other and decreased by £209m in Consumer, £136m in Enterprise and £69m in Global in the year ended 31 March 2019; and increased by £389m in Openreach and decreased by £192m in Consumer, £123m in Enterprise, £68m in Global and £6m in Other in the year ended 31 March 2018. • Intangible assets decreased by £4m and £12m in Consumer in the years ended 31 March 2019 and 31 March 2018 respectively; with corresponding increases in Enterprise. • Property, plant and equipment decreased by £46m and £93m in Consumer in the years ended 31 March 2019 and 31 March 2018 respectively; with corresponding increases in Enterprise. On 1 October 2018 we transferred our Northern Ireland Networks business from Enterprise to Openreach, and at the same time we reclassified certain internal revenues generated by our Ventures businesses as segmental revenue rather than an internal recovery of cost. This had the following impact on 2018 comparatives: • Segment revenue, Adjusted EBITDA and Operating profit in Openreach increased by £155m , £95m , and £54m and segment revenue, Adjusted EBITDA and Operating profit in Enterprise decreased by £117m , £95m and £54m respectively. • Segment revenue and internal revenue increased by £224m in Enterprise as a result of reclassification of internal revenues generated by our Ventures businesses as segmental revenue rather than as internal recovery of cost. • Internal revenue increased by £38m in Openreach. • Property, plant and equipment in Enterprise decreased by £41m ; with a corresponding increase in Openreach. |
Critical accounting estimates a
Critical accounting estimates and key judgements | 12 Months Ended |
Mar. 31, 2020 | |
Critical Accounting Estimates And Key Judgements [Abstract] | |
Critical accounting estimates and key judgements | Critical accounting estimates and key judgements The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and assumptions. It also requires management to exercise its judgement in the process of applying our accounting policies. We continually evaluate our estimates, assumptions and judgements based on available information and experience. As the use of estimates is inherent in financial reporting, actual results could differ from these estimates. Management has discussed its critical accounting estimates and associated disclosures with the Audit and Risk Committee . The areas involving a higher degree of judgement or complexity are described in the applicable notes to the financial statements. Critical accounting estimates and key judgements can be identified throughout the notes by the following symbol . We have the following critical accounting estimates (E) and key judgements (J): – Current and deferred income tax, see note 10 (E, J). – Goodwill impairment, see note 13 (E, J). – Government grants relating to Building Digital UK (BDUK) contracts, see note 14 (J). – Reasonable certainty and determination of lease terms, see note 15 (J). – Provisions and contingent liabilities, see note 19 (E, J). – Pension obligations, see note 20 (E, J). Judgements made in assessing the impact of Covid-19 on the financial statements We have exercised judgement in evaluating the impact of Covid-19 on the financial statements. A number of areas have been recognised as being potentially affected. These are identified throughout the notes by the following symbol . – The impact on our contract loss provisions, see notes 5 , 19 & 31 . – Impairment of contract assets, see note 5 . – One-off charges arising from Covid-19 meeting the criteria for classification as specific items, see note 9 . – Impact on future cash flows included within our value in use calculations used in impairment assessments, see note 13 . – Impact on reasonable certainty used in determining the lease term, see note 15 . – Retirement benefit plans, see note 20 . – Programme rights assets and commitments affected by postponement or cancellation of events, see notes 16 & 31 . – Assumptions within our expected credit losses on trade receivables, see note 17 . – Impact on hedge effectiveness for any cash flow hedges if cash flows are no longer ‘highly probable’, see note 28 . – Contingent liabilities, see note 31 . |
Significant accounting policies
Significant accounting policies that apply to the overall financial statements | 12 Months Ended |
Mar. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant accounting policies that apply to the overall financial statements | Significant accounting policies that apply to the overall financial statements The significant accounting policies applied in the preparation of our consolidated financial statements are set out below. Other significant accounting policies applicable to a particular area are disclosed in the most relevant note. We have applied all policies consistently to all the years presented, unless otherwise stated. Basis of consolidation The group financial statements consolidate the financial statements of BT Group plc and its subsidiaries, and include its share of the results of associates and joint ventures using the equity method of accounting. The group recognises its direct rights to (and its share of) jointly held assets, liabilities, revenues and expenses of joint operations under the appropriate headings in the consolidated financial statements. All business combinations are accounted for using the acquisition method regardless of whether equity instruments or other assets are acquired. No material acquisitions were made in the year. A subsidiary is an entity that is controlled by another entity, known as the parent or investor. An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the net assets of consolidated subsidiaries, which consist of the amounts of those interests at the date of the original business combination and non-controlling share of changes in equity since the date of the combination, are not material to the group’s financial statements. The results of subsidiaries acquired or disposed of during the year are consolidated from and up to the date of change of control. Where necessary, accounting policies of subsidiaries have been aligned with the policies adopted by the group. All intra-group transactions including any gains or losses, balances, income or expenses are eliminated in full on consolidation. When the group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. The profit or loss on disposal is recognised as a specific item. Inventories Network maintenance equipment and equipment to be sold to customers are stated at the lower of cost or net realisable value, taking into account expected revenue from the sale of packages comprising a mobile handset and a subscription. Cost corresponds to purchase or production cost determined by either the first in first out (FIFO) or average cost method. Government grants Government grants are recognised when there is reasonable assurance that the conditions associated with the grants have been complied with and the grants will be received. Grants for the purchase or production of property, plant and equipment are deducted from the cost of the related assets and reduce future depreciation expense accordingly. Grants for the reimbursement of operating expenditure are deducted from the related category of costs in the income statement. Estimates and judgements applied in accounting for government grants received in respect of the BDUK programme and other rural superfast broadband contracts are described in note 14 . Once a government grant is recognised, any related deferred income is treated in accordance with IAS 20 ‘Accounting for Government Grants and Disclosure of Government Assistance’. Foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of transactions and the translation of monetary assets and liabilities denominated in foreign currencies at period end exchange rates are recognised in the income statement line which most appropriately reflects the nature of the item or transaction. On consolidation, assets and liabilities of foreign undertakings are translated into sterling at year end exchange rates. The results of foreign undertakings are translated into sterling at average rates of exchange for the year (unless this average is not a reasonable approximation of the cumulative effects of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions). Foreign exchange differences arising on the retranslation of foreign undertakings are recognised directly in a separate component of equity, the translation reserve. In the event of the disposal of an undertaking with assets and liabilities denominated in a foreign currency, the cumulative translation difference associated with the undertaking in the translation reserve is charged or credited to the gain or loss on disposal recognised in the income statement. Research and development Research expenditure is recognised in the income statement in the period in which it is incurred. Development expenditure, including the cost of internally developed software, is recognised in the income statement in the period in which it is incurred unless it is probable that economic benefits will flow to the group from the asset being developed, the cost of the asset can be reliably measured and technical feasibility can be demonstrated, in which case it is capitalised as an intangible asset on the balance sheet. Capitalisation ceases when the asset being developed is ready for use. Research and development costs include direct and indirect labour, materials and directly attributable overheads. Termination benefits Termination benefits (leaver costs) are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. We recognise termination benefits when they are demonstrably committed to the affected employees leaving the group. |
Segment information
Segment information | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Segment information | Segment information Significant accounting policies that apply to segment information Operating and reportable segments Our operating segments are reported based on financial information provided to the Executive Committee , which is the key management committee and represents the ‘chief operating decision maker’. Our organisational structure reflects the different customer groups to which we provide communications products and services via our customer-facing units: Consumer, Enterprise, Global and Openreach. The customer-facing units are supported by an internal service unit, Technology, and corporate units including procurement and property management. The customer-facing units are our reportable segments and generate substantially all of our revenue. Technology and the group’s corporate units are not reportable segments as they did not meet the quantitative thresholds as set out in IFRS 8 ‘Operating Segments’ for any of the years presented. We aggregate the remaining operations and include within the ‘Other’ category to reconcile to the consolidated results of the group. The ‘Other’ category includes unallocated Technology costs and our corporate units. Allocation of certain items to segments Provisions for the settlement of significant legal, commercial and regulatory disputes, which are negotiated at a group level, are initially recorded in the ‘Other’ segment. On resolution of the dispute, the full impact is recognised in the results of the relevant customer-facing unit and offset in the group results through the utilisation of the provision previously charged to the ‘Other’ segment. Settlements which are particularly significant or cover more than one financial year may fall within the definition of specific items as detailed in note 9. The costs incurred by Technology and corporate units are recharged to the customer-facing units to reflect the services it provides to them. Depreciation and amortisation incurred by Technology in relation to the networks and systems it manages and operates on behalf of the customer-facing units is allocated to the customer-facing units based on their respective utilisation. Capital expenditure incurred by Technology for specific projects undertaken on behalf of the customer-facing units is allocated based on the value of the directly attributable expenditure incurred. Where projects are not directly attributable to a particular customer-facing unit, capital expenditure is allocated between them based on the proportion of estimated future economic benefits. Specific items are detailed in note 9 and are not allocated to the reportable segments as this reflects how they are reported to the Executive Committee . Finance expense and income are not allocated to the reportable segments, as the central treasury function manages this activity, together with the overall net debt position of the group. Measuring segment performance Performance of each reportable segment is measured based on adjusted EBITDA. EBITDA is defined as the group profit or loss before interest, taxation, depreciation and amortisation. Adjusted EBITDA is defined as EBITDA before specific items, net non-interest related finance expense, and share of profits or losses of associates and joint ventures. Adjusted EBITDA is considered to be a useful measure of the operating performance of the customer-facing units because it approximates the underlying operating cash flow by eliminating depreciation and amortisation and also provides a meaningful analysis of trading performance by excluding specific items, which are disclosed separately by virtue of their size, nature or incidence. Revenue recognition Our revenue recognition policy is set out in the following note. Internal revenue and costs Most of our internal trading relates to Openreach and arises on rentals, and any associated connection or migration charges, of the UK access lines and other network products to the customer-facing units, including the use of BT Ireland’s network. This occurs both directly, and also indirectly, through Technology which is included within the ‘Other’ segment. Enterprise internal revenue arises from Consumer for mobile Ethernet access and Technology for transmission planning services. Internal revenue arising in Consumer relates primarily to employee broadband and wi-fi services. Intra-group revenue generated from the sale of regulated products and services is based on market price. Intra-group revenue from the sale of other products and services is agreed between the relevant customer-facing units and therefore the profitability of customer-facing units may be impacted by transfer pricing levels. Geographic segmentation The UK is our country of domicile and we generate the majority of our revenue from external customers in the UK. The geographic analysis of revenue is based on the country of origin in which the customer is invoiced. The geographic analysis of non-current assets, which exclude derivative financial instruments, investments and deferred tax assets, is based on the location of the assets. Segment revenue and profit As explained in note 1 , from 1 April 2019 we changed the allocation of group overhead costs and transferred the Emergency Services Network contract from Consumer to Enterprise. The prior year comparatives presented in this note have been restated to reflect these changes. Year ended 31 March 2020 (IFRS 15 & 16) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Segment revenue 10,388 6,093 4,361 5,112 1 25,955 Internal revenue (102 ) (276 ) — (2,753 ) — (3,131 ) Revenue from external customers a 10,286 5,817 4,361 2,359 1 22,824 Adjusted EBITDA b 2,426 1,965 634 2,858 24 7,907 Depreciation and amortisation a (1,278 ) (719 ) (479 ) (1,712 ) (108 ) (4,296 ) Operating profit (loss) a 1,148 1,246 155 1,146 (84 ) 3,611 Specific items (note 9) (328 ) Operating profit 3,283 Net finance expense c (897 ) Share of post tax profit (loss) of associates and joint ventures (33 ) Profit before tax 2,353 Year ended 31 March 2019 (restated d ) (IFRS 15 & IAS 17) Consumer d £m Enterprise d £m Global d £m Openreach d £m Other d £m Total £m Segment revenue 10,591 6,396 4,735 5,075 3 26,800 Internal revenue (107 ) (359 ) — (2,875 ) — (3,341 ) Revenue from external customers a 10,484 6,037 4,735 2,200 3 23,459 Adjusted EBITDA b 2,331 1,910 444 2,744 (37 ) 7,392 Depreciation and amortisation a (1,030 ) (690 ) (378 ) (1,398 ) (50 ) (3,546 ) Operating profit (loss) a 1,301 1,220 66 1,346 (87 ) 3,846 Specific items (note 9) (425 ) Operating profit 3,421 Net finance expense c (756 ) Share of post tax profit (loss) of associates and joint ventures 1 Profit before tax 2,666 Year ended 31 March 2018 (restated d ) (IAS 18 & IAS 17) Consumer d £m Enterprise d £m Global d £m Openreach d £m Other d £m Total £m Segment revenue 10,296 6,711 5,013 5,278 8 27,306 Internal revenue (103 ) (441 ) — (3,016 ) — (3,560 ) Revenue from external customers a 10,193 6,270 5,013 2,262 8 23,746 Adjusted EBITDA b 2,205 1,995 374 2,933 (2 ) 7,505 Depreciation and amortisation a (1,013 ) (676 ) (432 ) (1,330 ) (63 ) (3,514 ) Operating profit (loss) a 1,192 1,319 (58 ) 1,603 (65 ) 3,991 Specific items (note 9) (610 ) Operating profit 3,381 Net finance expense c (764 ) Share of post tax profit (loss) of associates and joint ventures (1 ) Profit before tax 2,616 a Before specific items. b Adjusted EBITDA, defined as EBITDA before specific items, net non-interest related finance expense, and share of profits or losses of associates and joint ventures. c Net finance expense includes specific item expense of £140m ( 2018/19 : £139m , 2017/18 : £218m ). See note 9 . d 2018 and 2019 comparatives have been restated to reflect the change in allocation of group overhead costs and transfer of the Emergency Services Network contract from Consumer to Enterprise on 1 April 2019; and 2018 comparatives have also been restated for the transfer of our Northern Ireland Networks business from Enterprise to Openreach and reclassification of internal revenue generated by our Ventures business from 1 October 2018. See note 1. Internal revenue and costs Internal cost recorded by Year ended 31 March 2020 Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Internal revenue recorded by Consumer — 63 21 — 18 102 Enterprise 64 — 54 86 72 276 Global — — — — — — Openreach 846 379 97 — 1,431 2,753 Total 910 442 172 86 1,521 3,131 Internal cost recorded by Year ended 31 March 2019 Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Internal revenue recorded by Consumer — 69 20 — 18 107 Enterprise 63 — 51 177 68 359 Global — — — — — — Openreach 920 401 112 — 1,442 2,875 Total 983 470 183 177 1,528 3,341 Internal cost recorded by Year ended 31 March 2018 (restated a ) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Internal revenue recorded by Consumer — 65 20 — 18 103 Enterprise a 130 — 51 173 87 441 Global — — — — — — Openreach a 896 480 125 — 1,515 3,016 Total 1,026 545 196 173 1,620 3,560 a 2018 comparatives have been restated to reflect the transfer of our Northern Ireland Networks business from Enterprise to Openreach and reclassification of internal revenue generated by our Ventures business from 1 October 2018. See note 1. Capital expenditure Year ended 31 March 2020 Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Intangible assets a 291 218 123 103 55 790 Property, plant and equipment b 657 283 100 2,005 125 3,170 Capital expenditure 948 501 223 2,108 180 3,960 Year ended 31 March 2019 (restated c ) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Intangible assets a,c 272 184 93 82 49 680 Property, plant and equipment b,c 672 367 152 1,999 93 3,283 Capital expenditure 944 551 245 2,081 142 3,963 Acquisition of spectrum a — — — — 304 304 Capital expenditure including spectrum 944 551 245 2,081 446 4,267 Year ended 31 March 2018 (restated c ) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Intangible assets a,c 224 192 92 70 64 642 Property, plant and equipment b,c 590 405 186 1,629 70 2,880 Capital expenditure 814 597 278 1,699 134 3,522 a Additions to intangible assets as presented in note 13 . b Additions to property, plant and equipment as presented in note 14 , inclusive of movement on engineering stores. c 2018 and 2019 comparatives have been restated to reflect the transfer of the Emergency Services Network contract from Consumer to Enterprise on 1 April 2019; and 2018 comparatives have also been restated for the transfer of our Northern Ireland Networks business from Enterprise to Openreach from 1 October 2018. See note 1. Geographic segmentation Revenue from external customers Year ended 31 March 2020 2019 2018 UK 19,401 19,683 19,687 Europe, Middle East and Africa, excluding the UK 1,904 2,280 2,489 Americas 924 936 996 Asia Pacific 595 560 574 Revenue a 22,824 23,459 23,746 a Before specific items. Non-current assets At 31 March 2020 2019 (restated b ) £m 2018 UK 35,597 30,295 28,835 Europe, Middle East and Africa, excluding the UK 2,347 2,218 2,527 Americas 384 338 331 Asia Pacific 198 110 109 Non-current assets a 38,526 32,961 31,802 a Comprising the following balances presented in the group balance sheet: intangible assets; property, plant and equipment; right-of-use assets; investments in associates and joint ventures; trade and other receivables and contract assets. b 2019 comparatives restated to include contract assets totalling £249m . |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customers [Abstract] | |
Revenue | Revenue Significant accounting policies that apply to revenue Revenue from contracts with customers in scope with IFRS 15 Most revenue recognised by the group is in scope of IFRS 15 and is subject to the following revenue recognition policy. On inception of the contract we identify a “performance obligation” for each of the distinct goods or services we have promised to provide to the customer. The consideration specified in the contract with the customer is allocated to each performance obligation identified based on their relative standalone selling prices, and is recognised as revenue as they are satisfied. The table below summarises the performance obligations we have identified for our major service lines and provides information on the timing of when they are satisfied and the related revenue recognition policy. Also detailed in this note is revenue expected to be recognised in future periods for contracts in place at 31 March 2020 that contain unsatisfied performance obligations. Service line Performance obligations Revenue recognition policy ICT and managed networks Provision of networked IT services, managed network services, and arrangements to design and build software solutions. Performance obligations are identified for each distinct service or deliverable for which the customer has contracted, and are considered to be satisfied over the time period that we deliver these services or deliverables. Commitments to provide hardware to customers that are distinct from the other promises are considered to be satisfied at the point in time that control passes to the customer. Revenue for services is recognised over time using a measure of progress that appropriately reflects the pattern by which the performance obligation is satisfied. For time and material contracts, revenue is recognised as the service is received by the customer. Where performance obligations exist for the provision of hardware, revenue is recognised at the point in time that the customer obtains control of the promised asset. For long-term fixed price contracts revenue recognition will typically be based on the achievement of contract milestones and customer acceptance. Fixed access subscriptions Provision of broadband, TV and fixed telephony services including local, national and international calls, connections, line rental, and calling features. Performance obligations exist for each ongoing service provided to the customer and are satisfied over the period that the services are provided. Installation services are recognised as distinct performance obligations if their relationship with the other services in the contract is purely functional. These are satisfied when the customer benefits from the service. Connection services are not distinct performance obligations and are therefore combined with the associated service performance obligation. Fixed subscription charges are recognised as revenue on a straight line basis over the period that the services are provided. Upfront charges for non-distinct connection and installation services are deferred as contract liabilities and are recognised as revenue over the same period. Variable charges such as call charges are recognised when the related services are delivered. Where installation activities are distinct performance obligations, revenue is recognised at the point in time that the installation is completed. Mobile subscriptions Provision of mobile postpaid and prepaid services, including voice minutes, SMS, and data services. Performance obligations exist for each ongoing service provided to the customer and are satisfied over the period that the services are provided. Subscription fees, consisting primarily of monthly charges for access to broadband and other internet access or voice and data services, are recognised as the service is provided. One-off services such as calls outside of plan and excess data usage are recognised when the service is used. Equipment and other services Provision of equipment and other services, including mobile phone handsets and hardware such as set top boxes and broadband routers provided as part of customer contracts. Performance obligations are satisfied at the point in time that control passes to the customer. For other services, performance obligations are identified based on the distinct goods and services we have committed to provide. Revenue from equipment sales is recognised at the point in time that control passes to the customer. Where payment is not received in full at the time of the sale, such as with equipment provided as part of mobile and fixed access subscriptions, contract assets are recognised for the amount due from the customer that will be recovered over the contract period. Revenue to be recognised is calculated by reference to the relative standalone selling price of the equipment. For other services, revenue is recognised when the related performance obligations are satisfied, which could be over time or at a point in time depending on the nature of the service. We recognise revenue based on the relative standalone selling price of each performance obligation. Determining the standalone selling price often requires judgement and may be derived from regulated prices, list prices, a cost-plus derived price, or the price of similar products when sold on a standalone basis by BT or a competitor. In some cases it may be appropriate to use the contract price when this represents a bespoke price that would be the same for a similar customer in a similar circumstance. The fixed element of fixed access and mobile subscription arrangements sold by our Consumer business is typically payable in advance, with any variable or one-off charges billed in arrears. Payment is received immediately for direct sales of equipment to customers. Where equipment is provided to customers under mobile and fixed access subscription arrangements, payment for the equipment is received over the course of the contract term. For sales by our enterprise businesses, invoices are issued in line with contractual terms. Payments received in advance are recognised as contract liabilities, amounts billed in arrears are recognised as contract assets. We do not have any material obligations in respect of returns, refunds or warranties. Where we act as an agent in a transaction, we recognise commission net of directly attributable costs. Where the actual and estimated costs to completion of the contract exceed the estimated revenue, a loss is recognised immediately. We exercise judgement in assessing whether the initial set-up, transition and transformation phases of long-term contracts are distinct from the other services to be delivered under the contract and therefore represent distinct performance obligations. This determines whether revenue is recognised in the early stages of the contract, or deferred until delivery of the other services promised in the contract begins. We recognise immediately the entire estimated loss for a contract when we have evidence that the contract is unprofitable. If these estimates indicate that any contract will be less profitable than previously forecast, contract assets may have to be written down to the extent they are no longer considered to be fully recoverable. We perform ongoing profitability reviews of our contracts in order to determine whether the latest estimates are appropriate. Key factors reviewed include: - Transaction volumes or other inputs affecting future revenues which can vary depending on customer requirements, plans, market position and other factors such as general economic conditions. - Our ability to achieve key contract milestones connected with the transition, development, transformation and deployment phases for customer contracts. - The status of commercial relations with customers and the implications for future revenue and cost projections. - Our estimates of future staff and third-party costs and the degree to which cost savings and efficiencies are deliverable. - Whether Covid-19 will have an impact on the assumptions listed above, including our future revenue projections, our ability to complete our contractual work on time, and our assessment of whether our force majeure contract clauses will prevent any contract penalties. Revenue from lease arrangements in scope of IFRS 16 As set out in note 1, some arrangements to provide external communications providers with exclusive use of fixed-network telecommunications infrastructure previously accounted for as service contracts under IFRS 15 now meet the definition of operating leases under IFRS 16. During the year we changed the terms and conditions of some consumer broadband and TV products which resulted in devices such as routers provided to customers now meeting the definition of operating leases. Associated income continues to be classified as revenue as these arrangements are core business activities. At inception of a contract, we determine whether the contact is, or contains a lease following the accounting policy set out in note 15. Arrangements meeting the definition of a lease in which we act as lessor are classified as operating or finance leases at lease inception based on an overall assessment of whether the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset. If this is the case then the lease is a finance lease; if not, it is an operating lease. Income from arrangements classified as operating leases is presented as revenue where it relates to our core operating activities, for example leases of fixed-line telecommunications infrastructure to external communications providers and leases of devices to consumer customers as part of fixed access subscription products. Operating lease income from other arrangements is presented within other operating income (note 6). We recognise lease payments as income on a straight-line basis over the lease term. Any upfront payments received, such as connection fees, are deferred over the lease term. Determining the lease term is subject to the significant judgements set out in note 15. Where the contract contains both lease and non-lease components, the transaction price is allocated between the components on the basis of relative stand-alone selling price. Income from arrangements classified as finance leases is not material to the group. Disaggregation of revenue The following table disaggregates revenue by our major service lines and by reportable segment. The 2018 comparatives have not been restated for the adoption of IFRS15 in 2019 and are presented under IAS 18. Consumer Enterprise Global Openreach Other Total Year ended 31 March 2020 (IFRS 15) £m £m £m £m £m £m ICT and managed networks — 2,207 2,199 — — 4,406 Fixed access subscriptions 4,443 2,007 352 2,293 — 9,095 Mobile subscriptions 3,807 1,199 84 — — 5,090 Equipment and other services 2,036 404 1,726 66 1 4,233 Revenue before specific items 10,286 5,817 4,361 2,359 1 22,824 Specific items (note 9) 81 Revenue 22,905 Consumer a Enterprise a Global Openreach Other Total Year ended 31 March 2019 (restated) (IFRS 15) £m £m £m £m £m £m ICT and managed networks — 2,236 2,613 — — 4,849 Fixed access subscriptions 4,564 2,181 362 2,135 — 9,242 Mobile subscriptions 3,866 1,277 130 — — 5,273 Equipment and other services 2,054 343 1,630 65 3 4,095 Revenue before specific items 10,484 6,037 4,735 2,200 3 23,459 Specific items (note 9) (31 ) Revenue 23,428 a On 1 April 2019 we transferred the Emergency Services Network contract from Consumer to Enterprise which resulted in a decrease in revenue in Consumer; and a corresponding increase in Enterprise. 2019 comparatives have been restated to reflect this transfer, see note 1. Year ended 31 March 2018 (IAS 18) £m ICT and managed networks 5,530 Broadband and TV 4,655 Mobile 6,451 Calls, lines and connections 5,126 Transit 265 Other products and services 1,719 Revenue before specific items 23,746 Specific items (note 9) (23 ) Revenue 23,723 Revenue expected to be recognised in future periods for performance obligations that are not complete (or are partially complete) as at 31 March 2020 is £13,750m ( 31 March 2019 : £14,296m ). Of this, £8,191m ( 31 March 2019 : £9,425m ) relates to ICT and managed services contracts and equipment and other services which will substantially be recognised as revenue within 3 years . Fixed access and mobile subscription services typically have shorter contract periods and so £5,559m ( 31 March 2019 : £4,871m ) will substantially be recognised as revenue within two years . Revenue recognised this year relating to performance obligations that were satisfied, or partially satisfied, in previous years was not material. Revenue related to customers' unexercised rights (for example, unused amounts on prepaid SIM cards) was not material. Operating lease income Presented within revenue is £2,297m income from arrangements classified as operating leases under IFRS 16 and which represent core business activities for the group. Income relates predominantly to Openreach's leases of fixed-line telecommunications infrastructure to external communications providers which is classified as fixed access subscription revenue in the table above. During the year we also recognised £41m operating lease income from non-core business activities which is presented in other operating income (note 6 ). This income relates primarily to sub-leases of unutilised properties. Note 15 presents an analysis of payments to be received across the remaining term of operating lease arrangements. Contract assets and liabilities Significant accounting policies that apply to contract assets and liabilities We recognise contract assets for goods and services for which control has transferred to the customer before consideration is due. These assets mainly relate to mobile handsets provided upfront but paid for over the course of a contract. Contract assets are reclassified as receivables when the right to payment becomes unconditional and we have billed the customer. Contract liabilities are recognised when we have received advance payment for goods and services that we have not transferred to the customer. These primarily relate to fees received for connection and installation services that are not distinct performance obligations. Where the initial set-up, transition or transformation phase of a long-term contract is considered to be a distinct performance obligation we recognise a contract asset for any work performed but not billed. Conversely a contract liability is recognised where these activities are not distinct performance obligations and we receive upfront consideration. In this case eligible costs associated with delivering these services are capitalised as fulfilment costs, see note 17. We provide for expected lifetime losses on contract assets following the policy set out in note 17. Contract assets and liabilities recognised are as follows: Year ended 31 March 2020 2019 £m £m Contract assets Current 1,442 1,353 Non-current 279 249 1,721 1,602 Contract liabilities Current a 972 1,225 Non-current a 179 200 1,151 1,425 a Contract liabilities recognised at 31 March 2019 include balances relating to Openreach, the majority of which are now presented as trade and other payables following adoption of IFRS 16 on 1 April 2019, see note 1 . £1,094m of the contract liability recognised at 31 March 2019 was recognised as revenue during the year ( 2018/19 : £1,216m ). Impairment losses of £59m were recognised on contract assets during the year ( 2018/19 : £36m ). These impairment losses included £21m of impairments to contract assets recognised at 31 March 2020 reflecting increased expected credit losses above our standard provisioning policies as a result of Covid-19. This increase above our standard contract loss provisioning policies was recorded as a specific item (note 9). |
Operating costs
Operating costs | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Operating Costs [Abstract] | |
Operating costs | Operating costs Notes 2020 2019 2018 Year ended 31 March £m £m £m Operating costs by nature Staff costs: Wages and salaries 4,203 4,264 4,229 Social security costs 426 440 461 Other pension costs 20 626 611 624 Share-based payment expense 22 72 67 84 Total staff costs 5,327 5,382 5,398 Own work capitalised (903 ) (834 ) (798 ) Net staff costs 4,424 4,548 4,600 Net indirect labour costs a 354 267 315 Net labour costs 4,778 4,815 4,915 Product costs and sales commissions f 4,440 4,464 4,429 Payments to telecommunications operators 1,749 2,059 2,306 Property and energy costs 1,004 1,325 1,285 Network operating and IT costs 898 1,026 963 TV programme rights charges 870 841 763 Provision and installation f 604 624 657 Marketing and sales f 303 322 317 Other operating costs f 494 831 830 Other operating income (223 ) (240 ) (224 ) Depreciation of property, plant and equipment: Owned assets 14 2,452 2,390 2,381 Right-of-use assets d,e 15 671 Held under finance leases d — 2 10 Amortisation of intangible assets 13 1,173 1,154 1,123 Total operating costs before specific items 19,213 19,613 19,755 Specific items 9 409 394 587 Total operating costs 19,622 20,007 20,342 Operating costs before specific items include the following: Leaver costs b 15 17 50 Research and development expenditure c 662 643 632 Operating lease charges d — 801 732 Foreign currency gains (12 ) (11 ) — Inventories recognised as an expense 2,447 2,388 2,588 Government grants — (3 ) (3 ) a Net of capitalised indirect labour costs of £675m ( 2018/19 : £672m , 2017/18 : £612m ). b Leaver costs are included within wages and salaries, except for leaver costs of £197m ( 2018/19 : £257m , 2017/18 : £168m ) associated with restructuring costs, which have been recorded as specific items. c Research and development expenditure reported in the income statement includes amortisation of £599m ( 2018/19 : £581m , 2017/18 : £573m ) in respect of capitalised development costs and operating expenses of £63m ( 2018/19 : £62m , 2017/18 : £59m ). In addition, the group capitalised software development costs of £476m ( 2018/19 : £472m , 2017/18 : £450m ). d Depreciation on right-of-use assets recognised following adoption of IFRS 16 on 1 April 2019, see note 1 . Depreciation recognised in the current year includes depreciation on assets held under finance lease in previous years, which have been reclassified as right-of-use assets on transition to IFRS 16. e Excludes £22m reversal of impairment on right-of-use assets presented as a specific item which relate to assets impaired on adoption of IFRS16. f Included within 'other operating costs' in 2017/18 were costs relating to product costs and commissions; provision and installation; and marketing and sales. These are presented separately in 2018/19 and 2019/20. The ‘other operating costs’ comparative for 2017/18 has been re-presented for consistency, consistent with the 2019 Annual Report. Who are our key management personnel and how are they compensated? Key management personnel comprise executive and non-executive directors and members of the Executive Committee. Compensation of key management personnel is shown in the table below: 2020 2019 2018 Year ended 31 March £m £m £m Short-term employee benefits 9.6 13.5 11.8 Post employment benefits a 1.0 1.2 1.3 Share-based payments 7.1 5.0 6.2 Termination benefits — 0.6 2.2 17.7 20.3 21.5 a Post employment benefits comprise cash pension allowances paid to the chief executive and chief financial officer. The group does not contribute to defined contribution or defined benefit pension schemes on behalf of key management personnel. Key management personnel are compensated solely in the form of cash and share-based payments. During the current and prior years, key management personnel made no gains from exercise of share options. No cash bonuses were awarded in 2019/20 (2018/19 £3.8m , 2017/18: £ 3.2m ) as these have been deferred and will be issued in shares in 2021. |
Employees
Employees | 12 Months Ended |
Mar. 31, 2020 | |
Employees [Abstract] | |
Employees | Employees 2020 2019 2018 Number of employees in the group a Year end 000 Average 000 Year end 000 Average 000 Year end 000 Average 000 UK 82.6 82.8 84.3 83.4 82.2 82.5 Non-UK 22.7 22.6 22.4 23.1 23.6 23.7 Total employees 105.3 105.4 106.7 106.5 105.8 106.2 2020 2019 2018 Number of employees in the group a Year end 000 Average 000 Year end 000 Average 000 Year end 000 Average 000 Consumer 19.6 19.7 19.7 19.0 18.2 18.0 Enterprise b 12.2 12.8 13.4 13.8 13.2 13.5 Global 16.3 16.5 16.6 16.8 16.9 17.3 Openreach b 35.0 34.1 33.2 31.9 31.2 31.1 Other 22.2 22.3 23.8 25.0 26.3 26.3 Total employees 105.3 105.4 106.7 106.5 105.8 106.2 a These reflect the full-time equivalent of full and part-time employees. b The 2018 comparative was restated in the prior year to reflect the change in segments and the transfer of Northern Ireland Networks, as described in note 1. |
Audit, audit related and other
Audit, audit related and other non-audit services | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Auditors Remuneration [Abstract] | |
Audit, audit related and other non-audit services | Audit, audit related and other non-audit services The following fees were paid or are payable to the company’s auditors, KPMG LLP and other firms in the KPMG network, for the years ended 31 March 2020 and 2019 . Figures in the table below for the year ended 31 March 2018 are in respect of fees paid to the company’s previous auditors, PricewaterhouseCoopers LLP. 2020 2019 2018 Year ended 31 March £000 £000 £000 Fees payable to the company’s auditors and its associates for: Audit services a The audit of the parent company and the consolidated financial statements 10,546 8,165 5,418 The audit of the company’s subsidiaries 6,315 6,061 5,877 16,861 14,226 11,295 Audit related assurance services b 2,416 2,236 1,771 Other non-audit services All other assurance services c 228 748 211 All other services d 247 210 592 475 958 803 Total services 19,752 17,420 13,869 a Services in relation to the audit of the parent company and the consolidated financial statements, including fees for reports under section 404 of the Sarbanes-Oxley Act. This also includes fees payable for the statutory audits of the financial statements of subsidiary companies. This excludes amounts for the audit of BT Group Employee Share Ownership Trust and Ilford Trustees (Jersey) Limited amounting to £20,000 (2018/19: £32,000 ). b Services in relation to other statutory filings or engagements that are required by law or regulation to be carried out by an appointed auditor. This includes fees for the review of interim results, the accrued fee for the audit of the group’s regulatory financial statements and fees for reporting associated with the group’s US debt shelf registration before de-registration from the New York Stock Exchange in November 2019. c All other assurance services in 2018/19 include fees payable to KPMG LLP for agreed upon procedures performed on the estimated impact of the new IFRS 15 revenue accounting standard, which took effect from 1 April 2018, for the 2017/18 PricewaterhouseCoopers LLP audit. d Fees payable for all non-audit services not included above, principally comprising other advisory services. This does not include fees for BT's I4 forum membership, which is facilitated by KPMG but not considered to be a service. The BT Pension Scheme is an associated pension fund as defined in the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) (Amendment) Regulations 2011. In the year ended 31 March 2020 KPMG LLP received total fees from the BT Pension Scheme of £0.8m ( 2018/19 : £1.1m , PricewaterhouseCoopers LLP: 2017/18 : £2.1m ) in respect of the following services: 2020 2019 2018 Year ended 31 March £000 £000 £000 Audit of financial statements of associates 819 1,005 345 Audit-related assurance services 9 53 — Taxation compliance services — — 153 Taxation advisory services — — 1,074 Other non-audit services 2 62 565 Total services 830 1,120 2,137 |
Specific items
Specific items | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Specific Items [Abstract] | |
Specific items | Specific items Significant accounting policies that apply to specific items We separately identify and disclose those items that in management’s judgement need to be disclosed by virtue of their size, nature or incidence (termed ‘specific items’). Specific items are used to derive the adjusted results as presented in the consolidated income statement presented on page 124. Adjusted results are consistent with the way that financial performance is measured by management and assist in providing an additional analysis of the reporting of the trading results of the group. Specific items may not be comparable to similarly titled measures used by other companies. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors. Examples of charges or credits meeting the above definition and which have been presented as specific items in the current and/or prior years include acquisitions/disposals of businesses and investments, retrospective regulatory matters, historical insurance or litigation claims, business restructuring programmes, asset impairment charges, property rationalisation programmes, net interest on pensions and the settlement of multiple tax years. In the event that items meet the criteria, which are applied consistently from year to year, they are treated as specific items. We have also included the impacts of Covid-19 on various balance sheet items as at 31 March 2020 as specific. The impact of Covid-19 on underlying trading is recognised in our underlying (adjusted) results and not as a specific item. 2020 2019 2018 Year ended 31 March £m £m £m Revenue Retrospective regulatory matters (81 ) 31 23 (81 ) 31 23 Operating costs Restructuring charges 322 386 287 Divestment-related items 199 5 (1 ) Covid-19 95 — — Property rationalisation (131 ) 36 28 Spectrum annual licence fee refund (82 ) — — Retrospective regulatory matters 9 (4 ) 26 Italian business investigation 2 (55 ) 22 Provision for claims (5 ) — — Pension equalisation costs — 26 — EE acquisition warranty claims — — 225 409 394 587 Operating loss 328 425 610 Net finance expense Interest expense on retirement benefit obligation 145 139 218 Interest on spectrum annual license fee refund (5 ) — — 140 139 218 Associates and joint ventures 39 — — Net specific items charge before tax 507 564 828 Taxation Tax credit on specific items above (73 ) (112 ) (87 ) Tax charge on re-measurement of deferred tax 156 — — 83 (112 ) (87 ) Net specific items charge after tax 590 452 741 Restructuring charges During the year we incurred charges of £322m ( 2018/19 : £386m , 2017/18 : £287m ), primarily relating to leaver costs. These costs reflect projects within our group-wide cost transformation programme. Of this £8m (2018/19: £29m ; 2017/18: £46m ) relates to the completion of our EE integration activities and £22m (2018/9: £23m ; 2017/ 2018: nil ) costs to close the BT Pension Scheme and provide transition payments to affected employees . Divestment-related items During the year we entered into agreements to sell our domestic operations in France, our domestic operations in Spain and selected domestic operations and infrastructure in 16 countries in Latin America. These divestments are expected to complete in financial year 2020/21. We have classified the assets and liabilities of these operations as held for sale at the lower of their carrying amount and fair value less costs to sell, which has resulted in an impairment charge of £127m relating to the France and Latin America divestments. See note 23. In addition we have recognised losses on disposal of £36m (2018/19: £5m ) relating to the completed divestments of BT Fleet Solutions and Tikit, and £36m of costs relating to ongoing divestment projects. Covid-19 During the year we recognised one-off charges of £95m relating to the impact of Covid-19 on various balance sheet items as at 31 March 2020. This comprises an £88m increase in our expected credit loss provisions for receivables due from customers and contract assets, and £7m contract loss provisions in respect of revenue contracts that are expected to become loss-making as a result of Covid-19 impact s. Should we recover the amounts owed, for which we have provided, this recovery would be reversed back through the income statement as a specific item. Property rationalisation costs We have recognised a net credit of £(131)m ( 2018/19 : charge £36m , 2017/18 : charge £28m ) relating to the rationalisation of the group’s property portfolio under our Better Workplace Programme including the gain on sale of BT Centre of £115m . Spectrum annual licence fee refund In May 2019 we received a payment of £87m from Ofcom, relating to overpaid fees that were charged during the period 2015-2017 under the previous 2015 fees regulation that was quashed by the Court of Appeal in 2017. Ofcom obtained permission to appeal the judgment to the Court of Appeal and in February 2020 the Court of Appeal ruled in our favour. Ofcom have informed us that they are not planning to pursue an appeal to the Supreme Court and we have therefore released our £87m provision and recognised this in the income statement as a specific item including interest on the refund of £5m . Retrospective regulatory matters We have recognised a net credit of £(72)m ( 2018/19 : charge £27m , 2017/18 : charge £49m ) in relation to regulatory matters. This reflects the settlement of various matters. Of this, £(81)m credit is recognised in revenue and £9m charge in operating costs. Italian business investigation During the year we recognised £2m costs relating to the historical investigation in our Italian business ( 2018/19 : a credit of £(55)m , 2017/18 : a charge of £22m ). Provision for claims We have recognised a credit of £5m (2018/19: £ nil ) in relation to release of provisions for claims created through specific items in 2012/13 which have now been fully settled. Pension equalisation costs During 2018/19 we recognised a charge of £26m in relation to the high court requirement to equalise pension benefits between men and women due to guaranteed minimum pension (GMP). EE acquisition warranty claims In 2017/18 we reached settlements with Deutsche Telekom and Orange in respect of any warranty claims under the 2015 EE acquisition agreement, arising from the issues previously announced regarding our operations in Italy. This represents a full and final settlement of these issues and resulted in a specific item charge of £225m . Interest expense on retirement benefit obligation During the year we incurred £145m ( 2018/19 : £139m , 2017/18 : £218m ) of interest costs in relation to our defined benefit pension obligations. See note 20 for more details. Associates and joint ventures Following renegotiation of a contract, an amount of £39m (2018/19: £ nil , 2017/18: £ nil ) owed by an associate has been determined irrecoverable. The resulting impairment has been recognised as a specific item. Tax on specific items A net tax charge of £ 83 m ( 2018/19 : credit of £112m , 2017/18 : credit of £ 87m ) was recognised in relation to specific items. During the period, legislation was enacted to maintain the UK corporation tax rate at 19% (see note 10). Accordingly the group has re-measured its deferred tax balances which has resulted in a charge of £156m . |
Taxation
Taxation | 12 Months Ended |
Mar. 31, 2020 | |
Taxation [Abstract] | |
Taxation | Taxation Significant accounting policies that apply to taxation Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the group’s subsidiaries, associates and joint ventures operate and generate taxable income. We periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and establish provisions where appropriate on the basis of the amounts expected to be paid to tax authorities. Deferred tax is recognised, using the liability method, in respect of temporary differences between the carrying amount of our assets and liabilities and their tax base. Deferred tax is determined using tax rates that are expected to apply in the periods in which the asset is realised or liability settled, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Any remaining deferred tax asset is recognised only when, on the basis of all available evidence, it can be regarded as probable that there will be suitable taxable profits, within the same jurisdiction, in the foreseeable future against which the deductible temporary difference can be utilised. Deferred tax balances for which there is a right of offset within the same jurisdiction are presented net on the face of the group balance sheet as permitted by IAS 12, with the exception of deferred tax related to our pension schemes which is disclosed within deferred tax assets. Critical accounting judgements and key estimates made in accounting for taxation We seek to pay tax in accordance with the laws of the countries where we do business. However, in some areas these laws are unclear, and it can take many years to agree an outcome with a tax authority or through litigation. We estimate our tax on country-by-country and issue-by-issue bases. Our key uncertainties are whether EE’s tax losses will be available to us, whether our intra-group trading model will be accepted by a particular tax authority and whether intra-group payments are subject to withholding taxes. We provide for the predicted outcome where an outflow is probable, but the agreed amount can differ materially from our estimates. Approximately 82% by value of the provisions are under active tax authority examination and are therefore likely to be re-estimated or resolved in the coming 12 months. £191m (2018/19: £252m) is included in current tax liabilities in relation to these uncertainties. Analysis of our taxation expense for the year 2020 2019 2018 Year ended 31 March £m £m £m United Kingdom Corporation tax at 19% (2018/19: 19%, 2017/18: 19%) (495 ) (434 ) (578 ) Adjustments in respect of earlier years 41 (9 ) 37 Non-UK taxation Current (58 ) (74 ) (66 ) Adjustments in respect of earlier years (1 ) 15 23 Total current tax expense (513 ) (502 ) (584 ) Deferred taxation Origination and reversal of temporary differences 55 (20 ) 46 Adjustments in respect of earlier years — 2 (57 ) Impact of change in UK corporation tax rate to 19% (2018/19: 17%, 2017/18: 17%) (156 ) — — Remeasurement of temporary differences (5 ) 13 11 Total deferred taxation (expense) credit (106 ) (5 ) — Total taxation expense (619 ) (507 ) (584 ) Factors affecting our taxation expense for the year The taxation expense on the profit for the year differs from the amount computed by applying the UK corporation tax rate to the profit before taxation as a result of the following factors: 2020 2019 2018 Year ended 31 March £m £m £m Profit before taxation 2,353 2,666 2,616 Expected taxation expense at UK rate of 19% (2018/19: 19%, 2017/18: 19%) (447 ) (506 ) (497 ) Effects of: (Higher) lower taxes on non-UK profits (5 ) (7 ) (8 ) Net permanent differences between tax and accounting a (40 ) (36 ) (100 ) Adjustments in respect of earlier years b 40 8 3 Prior year non-UK losses used against current year profits 11 21 16 Non-UK losses not recognised c (17 ) — (9 ) Other deferred tax assets not recognised — — — Lower taxes on profit on disposal of business — — — Re-measurement of deferred tax balances (161 ) 13 11 Other non-recurring items — — — Total taxation expense (619 ) (507 ) (584 ) Exclude specific items (note 9) 83 (112 ) (87 ) Total taxation expense before specific items (536 ) (619 ) (671 ) a Includes income that is not taxable or UK income taxable at a different rate, and expenses for which no tax relief is received. Examples include some types of depreciation and amortisation and the benefit of R&D tax incentives. b Reflects the differences between initial accounting estimates and tax returns submitted to tax authorities, including the release and establishment of provisions for uncertain tax positions. c Reflects losses made in countries where it has not been considered appropriate to recognise a deferred tax asset, as future taxable profits are not probable. Tax components of other comprehensive income 2020 2019 2018 Year ended 31 March £m £m £m Tax on items that will not be reclassified to the income statement Pension remeasurements (808 ) 384 (263 ) Tax on items that have been or may be reclassified subsequently to the income statement Exchange differences on translation of foreign operations (4 ) (4 ) (9 ) Fair value movements on cash flow hedges — — — – net fair value gains or losses (80 ) (37 ) 57 – recognised in income and expense — — (47 ) (892 ) 343 (262 ) Current tax credit a 267 395 203 Deferred tax (expense) credit (1,159 ) (52 ) (465 ) (892 ) 343 (262 ) a Includes £271m ( 2018/19 : £391m , 2017/18 : £212m ) relating to cash contributions made to reduce retirement benefit obligations. Tax (expense) credit recognised directly in equity 2020 2019 2018 Year ended 31 March £m £m £m Tax (expense) credit relating to share-based payments — — (2 ) Deferred taxation Fixed asset temporary differences Retirement benefit obligations a Share- based payments Tax losses Other Jurisdictional offset Total £m £m £m £m £m £m £m At 1 April 2018 1,460 (1,166 ) (7 ) (183 ) (90 ) — 14 Expense (credit) recognised in the income statement (60 ) (59 ) 1 114 (1 ) — (5 ) Expense (credit) recognised in other comprehensive income — 15 — — 37 — 52 Expense (credit) recognised in equity — — (1 ) — — — (1 ) Exchange differences — — 1 (1 ) — — — At 1 April 2019 1,400 (1,210 ) (6 ) (70 ) (54 ) — 60 Non-current Deferred tax asset (27 ) (1,210 ) (6 ) (70 ) (54 ) 20 (1,347 ) Deferred tax liability 1,427 — — — — (20 ) 1,407 Tax on IFRS 16 opening balance adjustment (2 ) — — — — — (2 ) Deferred tax asset (29 ) (1,210 ) (6 ) (70 ) (54 ) 20 (1,349 ) Deferred tax liability 1,427 — — — — (20 ) 1,407 At 1 April 2019 1,398 (1,210 ) (6 ) (70 ) (54 ) — 58 Expense (credit) recognised in the income statement 191 (46 ) (1 ) 2 (40 ) — 106 Expense (credit) recognised in other comprehensive income — 1,079 — — 80 — 1,159 Exchange difference 1 1 — 2 (1 ) — 3 Transfer to held for sale (note 23) — — — — (4 ) — (4 ) Transfer from current tax — — — — (14 ) — (14 ) At 31 March 2020 1,590 (176 ) (7 ) (66 ) (33 ) — 1,308 Non-current Deferred tax asset (17 ) (176 ) (7 ) (66 ) (33 ) (1 ) (300 ) Deferred tax liability 1,607 — — — 1 1,608 At 31 March 2020 1,590 (176 ) (7 ) (66 ) (33 ) — 1,308 a Includes a deferred tax asset of £1m ( 2018/19 : £2m , 2017/18 : £2m ) arising on contributions payable to defined contribution pension plans. The majority of the deferred tax assets and liabilities noted above are anticipated to be realised after more than 12 months. What factors affect our future tax charges? A UK corporation tax rate of 19% (effective 1 April 2020) was substantively enacted on 17 March 2020, reversing the previously enacted reduction in the rate from 19% to 17% . As deferred tax assets and liabilities are measured at the rates that are expected to apply in the periods of the reversal, deferred tax balances at 31 March 2020 have been calculated at the rate at which the relevant balance is expected to be recovered or settled. The impact to the income statement is £156m charge, and £110m credit to other comprehensive income. What are our unrecognised tax losses and other temporary differences? At 31 March 2020 we had operating losses and other temporary differences carried forward in respect of which no deferred tax assets were recognised amounting to £4.2b n ( 2018/19 : £4.2b n). Our other temporary differences have no expiry date restrictions. The expiry date of operating losses carried forward is dependent upon the tax law of the various territories in which the losses arose. A summary of expiry dates for losses in respect of which restrictions apply is set out below: At 31 March 2020 £m Expiry Restricted losses Europe 1 2019-2038 Americas 256 2019-2038 Other 3 2019-2038 Total restricted losses 260 Unrestricted operating losses 3,827 No expiry Other temporary differences 98 No expiry Total 4,185 At 31 March 2020 we had UK capital losses carried forward in respect of which no deferred tax assets were recognised amounting to £16.9b n ( 2018/19 : £16.9b n). These losses have no expiry date, but we consider the future utilisation of significant amounts of these losses to be remote. At 31 March 2020 the undistributed earnings of non-UK subsidiaries were £2.5b n ( 2018/19 : £2.5b n). No deferred tax liabilities have been recognised in respect of these unremitted earnings because the group is in a position to control the timing of any dividends from subsidiaries and hence any tax consequences that may arise. Under current tax rules, tax of £19.9m ( 2018/19 : £18.2m ) would arise if these earnings were to be repatriated to the UK. On 31 January 2020, the United Kingdom withdrew from the European Union and entered into a transition period, during which the United Kingdom will apply all EU laws and rules which formed part of the withdrawal agreement. Depending upon the outcome of negotiations, at the end of the transition period, the UK could cease to benefit from the EU’s Parent Subsidiary directive on dividends paid by our EU subsidiaries. In this event, additional tax of up to £23.1m could arise if the undistributed earnings of EU subsidiaries of £878m were to be repatriated to the UK. |
Earnings per share
Earnings per share | 12 Months Ended |
Mar. 31, 2020 | |
Earnings per share [abstract] | |
Earnings per share | Earnings per share How is earnings per share calculated? Basic earnings per share is calculated by dividing the profit after tax attributable to equity shareholders by the weighted average number of shares in issue after deducting the own shares held by employee share ownership trusts and treasury shares. In calculating the diluted earnings per share, share options outstanding and other potential shares have been taken into account where the impact of these is dilutive. Options over 36m shares ( 2018/19 : 36m shares, 2017/18 : 23m shares) were excluded from the calculation of the total diluted number of shares as the impact of these is antidilutive. Year ended 31 March 2020 2019 2018 Basic weighted average number of shares (millions) 9,885 9,912 9,911 Dilutive shares from share options (millions) — 6 2 Dilutive shares from executive share awards (millions) 80 57 48 Diluted weighted average number of shares (millions) 9,965 9,975 9,961 Basic earnings per share 17.5 p 21.8 p 20.5 p Diluted earnings per share 17.4 p 21.6 p 20.4 p The earnings per share calculations are based on profit after tax attributable to equity shareholders of the parent company which excludes non-controlling interests. Profit after tax was £1,734m ( 2018/19 : £2,159m , 2017/18 : £2,032m ) and profit after tax attributable to non-controlling interests was £2m ( 2018/19 : £3m , 2017/18 : £4m ). Profit attributable to non-controlling interests is not presented separately in the financial statements as it is not material. |
Dividends
Dividends | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Dividends [Abstract] | |
Dividends | Dividends What dividends have been paid? No final dividend is proposed in respect of the year ended 31 March 2020 ( 2018/19 : 10.78p ). An interim dividend of 4.62p per share amounting to £457m was paid on 3 February 2020 ( 2018/19 : full year dividend 15.4p amounting to approximately £1,527m , 2017/18 : full year dividend 15.4p amounting to approximately £1,524m ). The amount of £1,521m ( 2018/19 : £1,503m , 2017/18 : £1,524m ) for total dividends paid in the year is disclosed in our statement of changes in equity and analysed below. This value may differ from the amount shown for equity dividends paid in the group cash flow statement, which represents the actual cash paid in relation to dividend cheques that have been presented over the course of the financial year. 2020 2019 2018 Year ended 31 March pence per share £m pence per share £m pence per share £m Final dividend in respect of the prior year 10.78 1,064 10.55 1,045 10.55 1,044 Interim dividend in respect of the current year 4.62 457 4.62 458 4.85 480 15.40 1,521 15.17 1,503 15.40 1,524 |
Intangible assets
Intangible assets | 12 Months Ended |
Mar. 31, 2020 | |
Intangible Assets [Abstract] | |
Intangible assets | Intangible assets Significant accounting policies that apply to intangible assets We recognise identifiable intangible assets where we control the asset, it is probable that future economic benefits attributable to the asset will flow to the group, and we can reliably measure the cost of the asset. We amortise all intangible assets, other than goodwill, over their useful economic life. The method of amortisation reflects the pattern in which the assets are expected to be consumed. If the pattern cannot be determined reliably, the straight line method is used. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the group’s share of the identifiable net assets (including intangible assets) of the acquired business. Our goodwill impairment policy is set out later in this note. Acquired intangible assets – customer relationships and brands Intangible assets such as customer relationships or brands acquired through business combinations are recorded at fair value at the date of acquisition and subsequently carried at amortised cost. Assumptions are used in estimating the fair values of these relationships or brands and include management’s estimates of revenue and profits to be generated by them. Telecommunications licences Licence fees paid to governments, which permit telecommunications activities to be operated for defined periods, are initially recorded at cost and amortised from the time the network is available for use to the end of the licence period or where our usage can extend beyond the initial licence period, over the period we expect to benefit from the use of the licences, which is typically 20 years. Licences acquired through business combinations are recorded at fair value at the date of acquisition and subsequently carried at amortised cost. The fair value is based on management’s assumption of future cash flows using market expectations at acquisition date. Computer software Computer software comprises computer software licences purchased from third parties, and also the cost of internally developed software. Computer software licences purchased from third parties are initially recorded at cost. We only capitalise costs directly associated with the production of internally developed software, including direct and indirect labour costs of development, where it is probable that the software will generate future economic benefits, the cost of the asset can be reliably measured and technical feasibility can be demonstrated, in which case it is capitalised as an intangible asset on the balance sheet. Costs which do not meet these criteria and research costs are expensed as incurred. Our development costs which give rise to internally developed software include upgrading the network architecture or functionality and developing service platforms aimed at offering new services to our customers. Other Other intangible assets include website development costs and other licences. Items are capitalised at cost and amortised on a straight line basis over their useful economic life or the term of the contract. Estimated useful economic lives The estimated useful economic lives assigned to the principal categories of intangible assets are as follows: – Computer software 2 to 10 years – Telecommunications licences 2 to 20 years – Customer relationships and brands 1 to 15 years Impairment of intangible assets Intangible assets with finite useful lives are tested for impairment if events or changes in circumstances (assessed at each reporting date) indicate that the carrying amount may not be recoverable. When an impairment test is performed, the recoverable amount is assessed by reference to the higher of the net present value of the expected future cash flows (value in use) of the relevant cash generating unit and the fair value less costs to dispose. Goodwill is reviewed for impairment at least annually as described below. Impairment losses are recognised in the income statement, as a specific item. If a cash generating unit is impaired, impairment losses are allocated firstly against goodwill, and secondly on a pro-rata basis against intangible and other assets. Goodwill Customer relationships and brands Telecoms licences and other Internally developed software a Purchased software Total £m £m £m £m £m £m Cost At 1 April 2018 7,945 3,410 2,951 4,822 1,574 20,702 Additions — — 304 520 160 984 Disposals and adjustments b (2 ) — (3 ) (945 ) (141 ) (1,091 ) Transfers — — 4 120 (80 ) 44 Exchange differences 63 7 (4 ) 1 (8 ) 59 At 31 March 2019 8,006 3,417 3,252 4,518 1,505 20,698 Reclassification of assets held under finance leases c — — (185 ) — — (185 ) At 1 April 2019 8,006 3,417 3,067 4,518 1,505 20,513 Additions — — — 598 192 790 Disposals and adjustments b (30 ) (28 ) (34 ) (765 ) (541 ) (1,398 ) Transfers — — (2 ) 14 (3 ) 9 Exchange differences 52 8 1 2 10 73 Transfer to assets held for sale d (83 ) — — (13 ) (45 ) (141 ) At 31 March 2020 7,945 3,397 3,032 4,354 1,118 19,846 Accumulated amortisation At 1 April 2018 — 1,191 421 3,680 963 6,255 Charge for the year — 377 142 525 110 1,154 Disposals and adjustments b — — (3 ) (941 ) (147 ) (1,091 ) Transfers — — 3 (43 ) 43 3 Exchange differences — 3 (3 ) — (8 ) (8 ) At 31 March 2019 — 1,571 560 3,221 961 6,313 Reclassification of assets held under finance leases c — — (115 ) — — (115 ) At 1 April 2019 — 1,571 445 3,221 961 6,198 Charge for the year — 373 177 538 85 1,173 Disposals and adjustments b — (22 ) (49 ) (786 ) (529 ) (1,386 ) Transfers — — — (15 ) 15 — Exchange differences — 8 1 1 9 19 Transfer to assets held for sale d — — — (8 ) (39 ) (47 ) At 31 March 2020 — 1,930 574 2,951 502 5,957 Carrying amount At 31 March 2020 7,945 1,467 2,458 1,403 616 13,889 At 31 March 2019 8,006 1,846 2,692 1,297 544 14,385 a Includes a carrying amount of £538m (2018/19: £668m ) in respect of assets in course of construction, which are not yet amortised. b Fully depreciated assets in the group’s fixed asset registers were reviewed during the year, as part of the group’s annual asset verification exercise, and certain assets that were no longer in use have been written off, reducing cost and accumulated depreciation by £1.1b n ( 2018/19 : £1.0b n). c On adoption of IFRS 16 on 1 April 2019, assets held under finance leases were reclassified as right-of-use assets. See note 1 . d Assets transferred to held for sale during 2019/20 relate to our domestic operations in France, our domestic operations in Spain and selected domestic operations and infrastructure in 16 countries in Latin America. On reclassification to held for sale, goodwill associated with the France and Latin America disposals was impaired by £58m , and other intangible assets associated with these disposals were impaired by £1m . See note 23 . Impairment of goodwill Significant accounting policies that apply to impairment of goodwill We perform an annual goodwill impairment review. Goodwill recognised in a business combination does not generate cash flows independently of other assets or groups of assets. As a result, the recoverable amount, being the value in use, is determined at a cash generating unit (CGU) level. These CGUs represent the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other groups of assets. Our CGUs are deemed to be legacy BT Consumer, legacy EE, Enterprise, and Global. We allocate goodwill to each of the Cash Generating Units (CGUs) that we expect to benefit from the business combination. Each CGU to which goodwill is allocated represents the lowest level within the group at which the goodwill is monitored for internal management purposes. The value in use of each CGU is determined using cash flow projections derived from financial plans approved by the Board covering a five-year period. They reflect management’s expectations of revenue, EBITDA growth, capital expenditure, working capital and operating cash flows, based on past experience and future expectations of business performance. Cash flows beyond the fifth year have been extrapolated using perpetuity growth rates. Critical accounting estimates and key judgements made in reviewing goodwill for impairment Determining our CGUs The determination of our CGUs is judgemental. The identification of CGUs involves an assessment of whether the asset or group of assets generate largely independent cash inflows. This involves consideration of how our core assets are operated and whether these generate independent revenue streams. The legacy BT Consumer and EE CGUs remain as two separate CGUs due to their having independent cash flows. Estimating value in use Our value in use calculations require estimates in relation to uncertain items, including management’s expectations of future revenue growth, operating costs, profit margins, operating cash flows, and the discount rate for each CGU. Future cash flows used in the value in use calculations are based on our latest Board-approved five-year financial plans which reflect the anticipated impact of Covid-19. Expectations about future growth reflect the expectations of growth in the markets to which the CGU relates. The future cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the time value of money. The discount rate used in each CGU is adjusted for the risk specific to the asset, including the countries in which cash flow will be generated, for which the future cash flow estimates have not been adjusted. We tested our goodwill for impairment as at 31 March 2020. The carrying value of goodwill and the key assumptions used in performing the annual impairment assessment and sensitivities are disclosed below. Cost Legacy BT Consumer £m Legacy EE £m Enterprise £m Business and Public Sector Wholesale and Ventures Global £m Total £m At 1 April 2018 1,183 2,768 — 2,562 942 490 7,945 Transfer — — 3,504 (2,562 ) (942 ) — — Exchange differences — — 5 — — 58 63 Acquisitions and disposals — — — — — (2 ) (2 ) At 31 March 2019 1,183 2,768 3,509 — — 546 8,006 Exchange differences — — 4 — — 48 52 Acquisitions and disposals — — (30 ) — — — (30 ) Transfer to assets held for sale — — — — — (83 ) (83 ) At 31 March 2020 1,183 2,768 3,483 — — 511 7,945 In connection with disposals of BT Fleet Ltd and Tikit Ltd, £30m of goodwill in the Enterprise CGU has been eliminated. As discussed in note 23, we have recorded the net assets of certain Global businesses as held for sale. As a result, goodwill impairment charges of £58m in respect of France and Latin America have been recorded, and £25m of goodwill related to Spain has been reclassified. There are no reasonably possible changes to our assumptions that would result in the carrying value exceeding the value in use. What discount rate have we used? The pre-tax discount rates applied to the cash flow forecasts are derived from our post-tax weighted average cost of capital. The assumptions used in the calculation of the group’s weighted average cost of capital are benchmarked to externally available data. The pre-tax discount rate used in performing the value in use calculation in 2019/20 was 8.0% ( 2018/19 : 8.2% ). We’ve used the same discount rate for all CGUs except Global where we have used 8.6% ( 2018/19 : 8.7% ) reflecting higher risk in some of the countries in which Global operates. What growth rates have we used? The perpetuity growth rates are determined based on the forecast market growth rates of the regions in which the CGU operates, and they reflect an assessment of the long-term growth prospects of that market. The growth rates have been benchmarked against external data for the relevant markets. None of the growth rates applied exceed the expected long-term average growth rates for those markets or sectors. We used a perpetuity growth rate of 2.4% ( 2018/19 : 2.4% ) for Global and 2.0% ( 2018/19 : 2.0% ) for Enterprise and our legacy BT Consumer and EE CGUs. Has Covid-19 had a material impact on the impairment assessment? Covid-19 is not considered to have a significant impact on the assessment of impairment. Its impact on the group is considered to be short-term, and it is not anticipated to have a significant impact on the terminal year which is a key driver of our value in use calculations. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant and equipment Significant accounting policies that apply to property, plant and equipment Our property, plant and equipment is included at historical cost, net of accumulated depreciation, government grants and any impairment charges. Property, plant and equipment acquired through business combinations are initially recorded at fair value and subsequently accounted for on the same basis as our existing assets. We derecognise items of property, plant and equipment on disposal or when no future economic benefits are expected to arise from the continued use of the asset. The difference between the sale proceeds and the net book value at the date of disposal is recognised in operating costs in the income statement. Included within the cost of network infrastructure and equipment are direct and indirect labour costs, materials and directly attributable overheads. We depreciate property, plant and equipment on a straight line basis from the time the asset is available for use, to write off the asset’s cost over the estimated useful life taking into account any expected residual value. Freehold land is not depreciated. Estimated useful economic lives The estimated useful lives assigned to principal categories of assets are as follows: Land and buildings – Freehold buildings 14 to 50 years – Short-term leasehold improvements Shorter of 10 years or lease term – Leasehold land and buildings Unexpired portion of lease or 40 years, whichever is the shorter Network infrastructure Transmission equipment – Duct 40 years – Cable 3 to 25 years – Fibre 5 to 20 years Exchange equipment 2 to 13 years Other network equipment 2 to 20 years Other assets – Motor vehicles 2 to 9 years – Computers and office equipment 3 to 7 years Residual values and useful lives are reassessed annually and, if necessary, changes are recognised prospectively. Network share assets Certain assets have been contributed to a network share arrangement by both EE and Hutchison 3G UK Limited, with legal title remaining with the contributor. This is considered to be a reciprocal arrangement. Our share of the assets on acquisition of EE were recognised at fair value within tangible assets, and depreciated in line with policy. Subsequent additions are recorded at cost. Impairment of property, plant and equipment We test property, plant and equipment for impairment if events or changes in circumstances (assessed at each reporting date) indicate that the carrying amount may not be recoverable. When an impairment test is performed, we assess the recoverable amount by reference to the higher of the net present value of the expected future cash flows (value in use) of the relevant asset and the fair value less costs to dispose. If it is not possible to determine the recoverable amount for the individual asset then we assess impairment by reference to the relevant cash generating unit as described in note 13. Key judgements made in accounting for our BDUK contracts We receive government grants in relation to the Building Digital UK (BDUK) programme and other rural superfast broadband contracts. Where we have achieved certain service levels, or delivered the network more efficiently than anticipated, we have an obligation to either re-invest or repay grant funding. Where this is the case, we assess and defer the income with a corresponding increase in capital expenditure. Assessing the timing of whether and when we change the estimated take-up assumption is judgemental as it involves considering information which is not always observable. Our consideration on whether and when to change the base case assumption is dependent on our expectation of the long-term take-up trend. Our assessment of how much grant income to defer includes consideration of the difference between the take-up percentage agreed with the local authority and the likelihood of actual take-up. The value of the government grants deferred is disclosed in note 18. Land and buildings a £m Network infrastructure £m Other b £m Assets in course of construction £m Total £m Cost At 31 March 2018 1,262 50,783 1,914 1,118 55,077 Additions c 12 97 119 3,034 3,262 Transfers 13 2,988 18 (3,063 ) (44 ) Disposals and adjustments (restated) d 4 (1,943 ) (333 ) 102 (2,170 ) Transfer to assets held for sale d (182 ) — — — (182 ) Exchange differences (2 ) (32 ) 4 — (30 ) At 31 March 2019 1,107 51,893 1,722 1,191 55,913 Reclassification of assets held under finance leases a (81 ) — — — (81 ) At 1 April 2019 1,026 51,893 1,722 1,191 55,832 Additions c 7 83 69 2,978 3,137 Transfers 25 3,244 17 (3,295 ) (9 ) Disposals and adjustments d (55 ) (1,132 ) (130 ) 42 (1,275 ) Transfer to assets held for sale e (69 ) (255 ) (24 ) — (348 ) Exchange differences 11 60 8 — 79 At 31 March 2020 945 53,893 1,662 916 57,416 Accumulated depreciation At 31 March 2018 773 35,790 1,558 — 38,121 Charge for the year 51 2,236 105 — 2,392 Transfers 1 (4 ) — — (3 ) Disposals and adjustments (restated) d (11 ) (1,940 ) (296 ) — (2,247 ) Transfer to assets held for sale d (93 ) — — — (93 ) Exchange differences (1 ) (30 ) 4 — (27 ) At 31 March 2019 720 36,052 1,371 — 38,143 Reclassification of assets held under finance leases a (47 ) — — — (47 ) At 1 April 2019 673 36,052 1,371 — 38,096 Charge for the year 49 2,318 85 — 2,452 Transfers 1 — (1 ) — — Disposals and adjustments d (68 ) (1,128 ) (91 ) — (1,287 ) Transfer to assets held for sale e (55 ) (216 ) (22 ) — (293 ) Exchange differences 10 54 8 — 72 At 31 March 2020 610 37,080 1,350 — 39,040 Carrying amount At 31 March 2020 335 16,813 312 916 18,376 Engineering stores — — — 98 98 Total at 31 March 2020 335 16,813 312 1,014 18,474 At 31 March 2019 387 15,841 351 1,191 17,770 Engineering stores — — — 65 65 Total at 31 March 2019 387 15,841 351 1,256 17,835 a The carrying amount of the land and buildings class of asset recognised at 31 March 2019 included £34m in respect of assets held under finance leases. The depreciation expense on those assets in 2018/19 was £2m . On adoption of IFRS 16 on 1 April 2019 these assets were reclassified to right-of-use assets. See note 1 b Other mainly comprises motor vehicles, computers and fixtures and fittings. c Net of grant deferral of £98m ( 2018/19 : £63m ). d Fully depreciated assets in the group’s fixed asset registers were reviewed during the year, as part of the group’s annual asset verification exercise, and certain assets that were no longer in use have been written off, reducing cost and accumulated depreciation by £0.7b n ( 2018/19 : £1.9b n). Disposals and adjustments include adjustments resulting from changes in assumptions used in calculating lease-end obligations where the corresponding asset is capitalised. The 2018/19 comparative has been re-presented to split out the reclassification of the carrying amount of BT Centre property to 'transfer to assets held for sale' ( £89m ) presented within 'disposals and adjustments' in the prior period. e Transfers to assets held for sale during 2019/20 relate to our domestic operations in France, our domestic operations in Spain and selected domestic operations and infrastructure in 16 countries in Latin America. On reclassification to held for sale, assets associated with the France and Latin America disposals were impaired by £18m . See note 23 . Included within the above disclosure are assets used in arrangements which represent core business activities for the group and which meet the definition of operating leases: • £12,284m of the carrying amount of the network infrastructure asset class represents Openreach's network infrastructure. The majority of the associated assets are used to deliver fixed-line telecommunications services that have been assessed as containing operating leases, to both internal and external Communications Providers. • Other assets includes devices with a carrying amount of £33m that are made available to retail customers under arrangements that contain operating leases. At 31 March 2020 2019 £m £m The carrying amount of land and buildings, including leasehold improvements, comprised: Freehold 105 158 Leasehold 230 229 Total land and buildings 335 387 Network infrastructure Some of our network assets are jointly controlled by EE Limited with Hutchison 3G UK Limited. These relate to shared 3G network and certain elements of network for 4G rural sites. The net book value of the group’s share of assets controlled by its joint operation MBNL is £600m ( 2018/19 : £584m ) and is recorded within network infrastructure. Included within this is £112m ( 2018/19 : £125m ), being the group’s share of assets owned by its joint operation MBNL. Within network infrastructure are assets with a net book value of £10b n ( 2018/19 : £9b n) which have useful economic lives of more than 18 years . |
Leases
Leases | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of leases [Abstract] | |
Leases | Leases Significant accounting policies that apply to leases We adopted IFRS 16 for the first time on 1 April 2019 using the modified retrospective transition option. Comparative information is not restated under this transition option, therefore the disclosures presented in this note concern the 2019/20 period only. IFRS 16 lease accounting policy applicable to the current year Identifying whether a lease exists At inception of a contract, we determine whether the contract is, or contains a lease. A lease exists if the contract conveys the right to control the use of an identified asset, for a period of time, in exchange for consideration. In making this assessment, we consider whether: – The contract involves the use of an identified asset, either explicitly or implicitly. The asset must be physically distinct or represent substantially all the capacity of a physically distinct asset. Assets that a supplier has a substantive right to substitute are not considered distinct. – The lessee (either the group, or the group’s customers) has the right to obtain substantially all the economic benefits from the use of the asset throughout the period of use; and – The lessee has the right to direct the use of the asset, in other words, has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. Where practicable, and by class of underlying asset, we have elected to account for leases containing a lease component and one or more non-lease components as a single lease component. Where this election has been taken, it has been applied to the entire asset. Lessee accounting We recognise a lease liability and right-of-use asset at the commencement of a lease. Lease liabilities are initially measured at the present value of lease payments that are due over the lease term, discounted using the group’s incremental borrowing rate. This is the rate that we would have to pay for a loan of a similar term, and with similar security, to obtain an asset of similar value. Lease payments include: – fixed payments – variable lease payments that depend on an index or rate – amounts expected to be paid under residual value guarantees – the exercise price of any purchase options that we are reasonably certain to exercise – payments due over optional renewal periods where we are reasonably certain to renew – penalties for early termination of the lease where we are reasonably certain to terminate early Lease liabilities are subsequently measured at amortised cost using the effective interest method. It is remeasured if there is a change in future lease payments or the amount we expect to be payable under a residual value guarantee, or if we change our assessment of whether we will exercise a purchase, renewal or termination option. Right-of-use assets are initially measured at the initial amount of the corresponding lease liabilities, adjusted for any prepaid lease payments, plus any initial direct costs incurred and an estimate of any decommissioning costs that have been recognised as provisions, less any lease incentives received. They are subsequently depreciated using the straight-line method to the earlier of the end of the useful life of the asset or the end of the lease term. Right-of-use assets are tested for impairment following the policy set out in note 14 and are adjusted for any remeasurement of lease liabilities. We have elected not to recognise lease liabilities and right-of-use assets for short-term leases that have a lease term of 12 months or less, and leases of low-value assets with a purchase price under £5,000. We recognise lease payments associated with these items as an expense on a straight-line basis over the lease term. Any variable lease payments that do not depend on an index or rate, such as usage-based payments, are recognised as an expense in the period to which the variability relates. IAS 17 lease accounting policy applicable to the 2017/18 and 2018/19 financial reporting periods The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and whether the arrangement conveys the right to use the asset. Leases of property, plant and equipment where we hold substantially all the risks and rewards of ownership are classified as finance leases and are presented within property, plant and equipment (note 14). Finance lease assets are capitalised at the commencement of the lease term at the lower of the present value of the minimum lease payments or the fair value of the leased asset. The obligations relating to finance leases, net of finance charges in respect of future periods, are recognised as liabilities. Leases are subsequently measured at amortised cost using the effective interest method. Leases where a significant portion of the risk and rewards are held by the lessor are classified as operating leases. Rentals are charged to the income statement on a straight-line basis over the period of the lease and are presented within operating costs (note 6). Key judgements made in accounting for leases The following represent key judgements made in accounting for leases under IFRS 16 during the 2019/20 financial year. Determining the lease term including reasonable certainty Lease accounting requires determination of the lease term, which is defined as the noncancellable period of the lease adjusted for the impact of any extension, termination and purchase options that we consider the lessee to be reasonably certain to take. The lease term is a key determinant of the size of the lease liability and right-of-use asset recognised where the group acts as lessee; and the deferral period for any upfront connection charges where the group acts as lessor. Determining the lease term requires judgement to evaluate whether the lessee is reasonably certain to exercise any options. Where the group acts as lessee, in particular in regard to our portfolio of property and network infrastructure arrangements that potentially have terms beyond the medium-term planning horizon, we consider key facts and circumstances that would give us an incentive to exercise any extension and termination options when setting the lease term. These include: - Our anticipated operational, retail and office property requirements in the mid and long-term. - The need to maintain flexibility in our ability to develop and manage our network infrastructure to react quickly to technological developments and evolving capacity requirements. - The availability of suitable alternative sites. - Costs or penalties associated with exiting lease arrangements relative to the benefits to be gained, including costs of removing leasehold improvements or relocating, and indirect costs such as disruption to business. - Costs associated with extending lease arrangements including rent increases during secondary lease periods. Our definition of ‘reasonable certainty’, and therefore the lease term, will often align with the judgements made in our medium-term plan, in particular for rolling (or ‘evergreen’) leases that continue until terminated. It will generally be the case that we cannot be reasonably certain to require the use of the underlying asset beyond the medium-term planning horizon, unless specific evidence exists to the contrary. Assumptions made in our medium-term plan reflect the anticipated impact of Covid-19. Including the cost of exiting leases in the short-term, Covid-19 is not considered to have any material impact on our assessment of reasonable certainty. In particular we do not consider the lease term of our retail stores to be materially affected because the closure is only expected to be for a temporary duration. Additionally, although the stores are closed to usual operations, a significant number continue to be used to operate customer service operations. Right-of-use assets Most of our right-of-use assets are associated with our leased property portfolio, specifically our office, retail and exchange estate. We also lease a significant proportion of our network infrastructure, including mobile cell and switch sites. Land and buildings Network infrastructure Other a Total £m £m £m £m At 1 April 2019 4,628 189 338 5,155 Additions b 942 59 475 1,476 Depreciation charge for the year (513 ) (37 ) (99 ) (649 ) Other movements c (203 ) (32 ) (356 ) (591 ) At 31 March 2020 4,854 179 358 5,391 a Other mainly comprises motor vehicles. b Additions comprise increases to right-of-use assets as a result of entering into new leases, and upwards remeasurement of existing leases arising from lease extensions or reassessments and increases to lease payments. c Other movements relate to terminated leases and downwards remeasurements of right-of-use assets arising from reductions or reassessments of lease terms and decreases in lease payments. Other movements in 2019/20 include reclassification of right-of-use assets with a carrying amount of £65m to held-for-sale, see note 23 . On reclassification to held for sale, assets associated with the France and Latin America disposals were impaired by £31m . Lease liabilities Lease liabilities recognised at 31 March 2020 total £6,560m . £812m of this balance is classified as current, with the remaining £5,748m classified as non-current. Note 28 presents a maturity analysis of the payments due over the remaining lease term for these liabilities. During the year we reclassified lease liabilities with a carrying amount of £62m to held-for-sale, see note 23 . The following amounts relating to the group's obligations under lease arrangements were recognised in the income statement in the year to 31 March 2020 : • Interest expense of £140m accrued on lease liabilities. • Variable lease payments of £29m which are not dependent on an index or rate and which have not been included in the measurement of lease liabilities. Expenses relating to leases of low-value assets and short-term leases for which no right-of-use asset or lease liability has been recognised were immaterial. The total cash outflow for leases in the year was £791m . Other information relating to leases During the year we recognised net gains of £115m from sale and leaseback transactions, substantially all of which relates to the disposal of our BT Centre headquarters. We shall continue to occupy the property under a lease arrangement until our new headquarters is ready for occupation. At 31 March 2020 the group was committed to future minimum lease payments of £274m in respect of leases which have not yet commenced and for which no lease liability has been recognised. The following table analyses payments to be received across the remaining term of operating lease arrangements where BT is lessor: To be recognised as revenue (note 5) To be recognised as other operating income (note 6) Total At 31 March 2020 £m £m £m Less than one year 310 52 362 One to two years 130 16 146 Two to three years 34 10 44 Three to four years 1 9 10 Four to five years — 7 7 More than five years — 11 11 Total undiscounted lease payments 475 105 580 |
Programme rights
Programme rights | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Programme Rights [Abstract] | |
Programme rights | Programme rights Significant accounting policies that apply to programme rights Pro gramme rights are recognised on the balance sheet from the point at which the legally enforceable licence period begins. They are initially recognised at cost and are amortised from the point at which they are available for use, on a straight line basis over the programming period, or the remaining licence term, as appropriate, which is generally 12 months. Programme rights are tested for impairment in accordance with our impairment policy as set out in note 13. Total £m At 1 April 2018 272 Additions 879 Amortisation (841 ) At 1 April 2019 310 Additions 870 Amortisation (870 ) At 31 March 2020 310 £310m of programme rights recognised on the balance sheet at 31 March 2020 relate to sporting events postponed as a result of Covid-19. These are not considered to be impaired at the balance sheet date as sporting governing bodies, for example the Premier League and UEFA, are still determining how, or if, to complete the current season. Whether and how the seasons are completed could have an impact on whether there is any impairment. The majority of programme rights assets affected by Covid-19 relate to domestic and European football leagues which are amortised over 12 months from August and which will be fully amortised by July 2020. If any impairment is recognised in future periods we would also seek compensation in respect of rights which have not been fulfilled. Until this is established any potential recoveries would represent contingent assets and would not meet the criteria for recognition until this is virtually certain. Covid-19 is not anticipated to have an impact on commissioned or acquired programming for which we have made an advance payment. At 31 March 2020 these total £110m and are classified as prepayments within trade and other receivables (note 17). |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other receivables [abstract] | |
Trade and other receivables | Trade and other receivables Significant accounting policies that apply to trade and other receivables We initially recognise trade and other receivables at fair value, which is usually the original invoiced amount. They are subsequently carried at amortised cost using the effective interest method. The carrying amount of these balances approximates to fair value due to the short maturity of amounts receivable. We provide services to consumer and business customers, mainly on credit terms. We know that certain debts due to us will not be paid through the default of a small number of our customers. Because of this, we recognise an allowance for doubtful debts on initial recognition of receivables, which is deducted from the gross carrying amount of the receivable. The allowance is calculated by reference to credit losses expected to be incurred over the lifetime of the receivable. In estimating a loss allowance we consider historical experience and informed credit assessment alongside other factors such as the current state of the economy and particular industry issues. We consider reasonable and supportable information that is relevant and available without undue cost or effort. Once recognised, trade receivables are continuously monitored and updated. Allowances are based on our historical loss experiences for the relevant aged category as well as forward-looking information and general economic conditions, this includes the impact of Covid-19. Allowances are calculated by individual customer-facing units in order to reflect the specific nature of the customers relevant to that customer-facing unit. Following the outbreak of Covid-19 we have reassessed our expected loss provisions including assessing the risk factors associated with various industry sectors and applying a risk weighting to each sector. Contingent assets such as any insurance recoveries, or prepaid programme rights which we expect to recoup, have not been recognised in the financial statements as these are only recognised within trade and other receivables when their receipt is virtually certain. Following the outbreak of Covid-19 we have reassessed our expected loss provisions including assessing the risk factors associated with various industry sectors and applying a risk weighting to each sector. Contingent assets such as any insurance recoveries, or prepaid programme rights which we expect to recoup, have not been recognised in the financial statements as these are only recognised within trade and other receivables when their receipt is virtually certain. At 31 March 2020 2019 2018 £m £m £m Current Trade receivables 1,375 1,732 1,741 Prepayments a 607 698 1,103 Accrued income 57 34 777 Deferred contract costs 422 417 — Other receivables 243 341 393 2,704 3,222 4,014 At 31 March 2020 2019 2018 £m £m £m Non-current Other assets b 222 173 317 Deferred contract costs 259 272 — 481 445 317 a 2017/18 includes £325 m in respect of the acquisition of Spectrum. b Other assets comprise prepayments and leasing debtors. Included in prior year comparatives are costs relating to the initial set-up, transition or transformation phase of long-term networked IT services contracts ( 2018/19 : £nil , 2017/18 : £145 m), which are presented within deferred contract costs following adoption of IFRS 15. Trade receivables are stated after deducting allowances for doubtful debts, as follows: 2020 2019 2018 £m £m £m At 1 April 299 375 303 Expense 213 95 129 Utilised (189 ) (165 ) (61 ) Exchange differences 6 (6 ) 4 At 31 March 329 299 375 Included within the 2019/20 expense is a £ 67 m increase reflecting increased expected credit losses above our standard provisioning policies as a result of Covid-19. This increase above our standard provisioning policies was recorded as a specific item (note 9). Note 28 provides further disclosure regarding the credit quality of our gross trade receivables. Trade receivables are due as follows: Past due and not specifically impaired Not past due Trade receivables specifically impaired net of provision Between 0 and 3 months Between 3 and 6 months Between 6 and 12 months Over 12 months Total At 31 March £m £m £m £m £m £m £m 2020 903 25 308 45 49 45 1,375 2019 1,229 34 371 42 40 16 1,732 2018 1,251 61 293 44 25 67 1,741 Gross trade receivables which have been specifically impaired amounted to £34m ( 2018/19 : £57m , 2017/18 : £124m ). Trade receivables not past due and accrued income are analysed below by customer-facing unit. Trade receivables not past due Accrued income At 31 March 2020 2019 2018 2020 2019 2018 £m £m £m £m £m £m Consumer 353 457 — 1 32 — Enterprise 139 274 — 3 2 — Global 409 498 477 — — 222 Openreach — — 61 51 — 67 BT Consumer — — 157 — — 86 EE — — 206 — — 122 Business and Public Sector — — 253 — — 134 Wholesale and Ventures — — 92 — — 145 Other 2 — 5 2 — 1 Total 903 1,229 1,251 57 34 777 Given the broad and varied nature of our customer base, the analysis of trade receivables not past due and accrued income by customer-facing unit is considered the most appropriate disclosure of credit concentrations. Cash collateral held against trade and other receivables amounted to £nil ( 2018/19 : £9m , 2017/18 : £6m ). Deferred contract costs Significant accounting policies that apply to deferred contract costs We capitalise certain costs associated with the acquisition and fulfilment of contracts with customers and amortise them over the period that we transfer the associated services. Connection costs are deferred as contract fulfilment costs because they allow satisfaction of the associated connection performance obligation and are considered recoverable. Sales commissions and other third party contract acquisition costs are capitalised as costs to acquire a contract unless the associated contract term is less than 12 months, in which case they are expensed as incurred. Capitalised costs are amortised over the minimum contract term. A portfolio approach is used to determine contract term. Where the initial set-up, transition and transformation phases of long-term contractual arrangements represent distinct performance obligations, costs in delivering these services are expensed as incurred. Where these services are not distinct performance obligations, we capitalise eligible costs as a cost of fulfilling the related service. Capitalised costs are amortised on a straight line basis over the remaining contract term, unless the pattern of service delivery indicates a more appropriate profile. To be eligible for capitalisation, costs must be directly attributable to specific contracts, relate to future activity, and generate future economic benefits. Capitalised costs are regularly assessed for recoverability. The following table shows the movement on deferred costs: Deferred connection costs £m Deferred contract acquisition costs - commissions £m Deferred contract acquisition costs - dealer incentives £m Transition and transformation £m Total £m At 1 April 2019 31 86 432 140 689 Additions 10 86 451 21 568 Amortisation (9 ) (75 ) (426 ) (27 ) (537 ) Impairment (1 ) (4 ) (7 ) (21 ) (33 ) Other 1 1 (1 ) (7 ) (6 ) At 31 March 2020 32 94 449 106 681 |
Trade and other payables
Trade and other payables | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other payables [abstract] | |
Trade and other payables | Trade and other payables Significant accounting policies that apply to trade and other payables We initially recognise trade and other payables at fair value, which is usually the original invoiced amount. We subsequently carry them at amortised cost using the effective interest method. At 31 March 2020 2019 2018 £m £m £m Current Trade payables 3,889 4,141 3,991 Other taxation and social security 562 564 704 Other payables 498 387 456 Accrued expenses 545 630 492 Deferred income a 300 68 1,525 5,794 5,790 7,168 At 31 March 2020 2019 2018 £m £m £m Non-current Other payables b 18 873 871 Deferred income a 736 606 455 754 1,479 1,326 a Deferred income recognised at 31 March 2020 includes connection fee income recognised on transition to IFRS 16 on 1 April 2019, see note 1. The amount recognised at 31 March 2018 was substantially reclassified to contract liabilities on adoption of IFRS 15 on 1 April 2018. Deferred income includes £94m ( 2018/19 : £51m , 2017/18 : £132m ) current and £525m ( 2018/19 : £586m , 2017/18 : £404m ) non-current liabilities relating to the Building Digital UK programme, for which grants received by the group may be subject to re-investment or repayment depending on the level of take-up. b Other payables recognised in prior years included accruals for rent inflation associated with operating leases. These were reclassified to right-of-use assets on transition to IFRS 16 on 1 April 2019, see note 1 . |
Provisions
Provisions | 12 Months Ended |
Mar. 31, 2020 | |
Provisions [abstract] | |
Provisions | Provisions Our provisions principally relate to obligations arising from property rationalisation programmes, restructuring programmes, asset retirement obligations, network assets, insurance claims, litigation and regulatory risks. Significant accounting policies that apply to provisions We recognise provisions when the group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Where these criteria are not met we disclose a contingent liability if the group has a possible obligation, or has a present obligation with an outflow that is not probable or which cannot be reliably estimated. Contingent liabilities are disclosed in note 31. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Critical accounting estimates and key judgements made in accounting for provisions We exercise judgement in determining the quantum of all provisions to be recognised. Our assessment includes consideration of whether we have a present obligation, whether payment is probable and if so whether the amount can be estimated reliably. As part of this assessment, we also assess the likelihood of contingent liabilities occurring in the future. Contingent liabilities are not recognised as liabilities on our balance sheet; they are disclosed in note 31. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. We assess the likelihood that a potential claim or liability will arise and also quantify the possible range of financial outcomes where this can be reasonably determined. In estimating contingent liabilities we make key judgements in relation to applicable law and any historical and pending court rulings, and the likelihood, timing and cost of resolution. Restructuring programmes involve estimation of the direct cost necessary for the restructuring and exclude items that are associated with ongoing activities. The amounts below exclude restructuring costs for which the timing and amount are certain. These are recognised as part of trade and other payables. In measuring property provisions, we have made estimates of the costs to restore properties upon vacation where this is required under the lease agreements. Asset retirement obligations (AROs) involve an estimate of the cost to dismantle equipment and restore network sites upon vacation and the timing of the event. The provision represents the group’s best estimate of the amount that may be required to settle the obligation. Network asset provisions represent our future operational costs and vacant site rentals arising from obligations relating to network share agreements. Costs are expected to be incurred over a period of up to 20 years. Our regulatory provision represents our best estimate of the cost to settle our present obligation in relation to historical regulatory matters. The charge/credit for the year represents the outcome of management’s re-assessment of the estimates and regulatory risks across a range of issues, including price and service issues. The prices at which certain services are charged are regulated and may be subject to retrospective adjustment by regulators. When estimating the likely value of regulatory risk we make key judgements, including in regard to interpreting Ofcom regulations and past and current claims. For all risks, the ultimate liability may vary materially from the amounts provided and will be dependent upon the eventual outcome of any settlement. Restructuring £m Property £m Network ARO £m Network share £m Regulatory £m Litigation £m Other £m Total £m At 31 March 2018 12 294 71 33 320 64 261 1,055 Additions — 84 102 2 58 3 66 315 Unwind of discount — 11 2 1 — — — 14 Utilised or released — (71 ) (13 ) (9 ) (196 ) (9 ) (109 ) (407 ) Transfers (12 ) 21 — — — 27 (7 ) 29 Exchange differences — — — — — (1 ) 1 — At 31 March 2019 — 339 162 27 182 84 212 1,006 IFRS 16 adjustment a — (183 ) (14 ) (12 ) — — — (209 ) At 1 April 2019 156 148 15 182 84 212 797 Additions — 18 52 88 26 7 70 261 Unwind of discount — 1 1 — — — — 2 Utilised or released — (31 ) (22 ) (91 ) (129 ) (14 ) (77 ) (364 ) Transfers b — — — — — 11 11 22 Exchange differences — — — — — — 1 1 31 March 2020 — 144 179 12 79 88 217 719 a On transition to IFRS 16 on 1 April 2019, all onerous lease provisions were either reclassified to the corresponding right-of-use assets as a proxy for impairment, or were otherwise released to equity as a transition adjustment. See note 1 . b Transfers include £5m on provisions associated with held-for-sale assets during the period. See note 23. At 31 March 2020 2019 2018 £m £m £m Analysed as: Current 288 424 603 Non-current 431 582 452 719 1,006 1,055 Included within ‘Other’ provisions are contract loss provisions of £ 10 m ( 2018/19 : £25 m ) relating to the anticipated total losses in respect of certain contracts. Covid-19 has been considered when identifying and measuring contract loss provisions in line with the accounting policy set out in note 5. We identified £7m of contract loss provisions in respect of revenue contracts that are expected to become loss-making as a result of Covid-19 impacts. This increase above our standard contract loss provisioning policies is recorded as a specific item (note 9). It is expected that the majority of contract loss provisions will be utilised in the next few years. Although there is a short period remaining to the finalisation of these contracts, there remains uncertainty as to whether potential future changes to key assumptions made when estimating their future losses could have a significant impact. There is no single change in key variables that could materially affect future expected losses on these contracts, but it is reasonably possible there will be a combination of changes in key variables that could have a material impact. Also included in ‘Other’ are amounts provided for constructive obligations arising from insurance claims which will be utilised as the obligations are settled. |
Retirement benefit plans
Retirement benefit plans | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Retirement benefit plans | Retirement benefit plans Background to BT’s pension plans The group has both defined benefit and defined contribution retirement benefit plans. The group’s main plans are in the UK and the largest by membership is the BT Pension Scheme (BTPS) which is a defined benefit plan that was closed to new entrants on 31 March 2001. After that date new entrants to BT in the UK have been able to join a defined contribution plan, currently the BT Retirement Saving Scheme (BTRSS), a contract-based arrangement operated by Standard Life. Sections B and C of the BTPS were closed to future benefit accrual on 30 June 2018 (which represented over 99% of the BTPS active membership at the time) and affected employees were able to join the BTRSS or the BT Hybrid Scheme (BTHS) for future pension accrual. The BTHS, which combines elements of both defined benefit and defined contribution pension schemes, was set up in April 2019 for non-management employees impacted by the closure of the BTPS and was closed to new entrants on 30 September 2019. EE Limited operates the EE Pension Scheme (EEPS), which has a defined benefit section that was closed to future benefit accrual in 2014 and a defined contribution section which is open to new joiners. We also have retirement arrangements around the world in line with local markets and culture. What are they? How do they impact BT’s financial statements? Defined contribution plans Benefits in a defined contribution plan are linked to: – contributions paid – the performance of each individual’s chosen investments – the form in which individuals choose to take their benefits. Contributions are paid into an independently administered fund. The operating charge in respect of defined contribution plans represents the contribution payable by the group (usually a fixed percentage of each employee's pay). The group has no exposure to investment and other experience risks. Defined benefit plans Benefits in a defined benefit plan are: – determined by the plan rules, dependent on factors such as age, years of service and pensionable pay – not dependent upon actual contributions made by the company or members. The operating charge reflects the increase in the liability resulting from the pension benefit earned by active employees in the current period, the costs of administering the plans and any past service costs/credits such as those arising from curtailments or settlements. The group is exposed to investment and other experience risks and may need to make additional contributions where it is estimated that the benefits will not be met from regular contributions, expected investment income and assets held. Significant accounting policies that apply to retirement benefit plans Defined benefit plans The Retirement Benefit Obligations in respect of defined benefit plans is the liability (the present value of all expected future obligations) less the fair value of the plan assets. The income statement expense is allocated between an operating charge and net finance income or expense. – The operating charge reflects the increase in the liability resulting from the pension benefit earned by active employees in the current period, the costs of administering the plans and any past service costs/credits such as those arising from curtailments or settlements. – The net finance income or expense reflects the interest on the Retirement Benefit Obligations recognised in the group balance sheet, based on the discount rate at the start of the year. Remeasurements of the Retirement Benefit Obligations are recognised in full in the group statement of comprehensive income in the year in which they arise. These comprise the impact on the liabilities of changes in demographic and financial assumptions compared with the start of the year, actual experience being different to those assumptions and the return on plan assets being above or below the amount included in the net pension interest expense. Defined contribution plans The income statement expense for the defined contribution pension plans we operate represents the contributions payable for the year. Amounts in the financial statements Group income statement The expense or income arising from all group retirement benefit arrangements recognised in the group income statement is shown below. Year ended 31 March 2020 2019 2018 Recognised in the income statement before specific items – Service cost (including administration expenses and PPF levy): – defined benefit plans 86 135 376 – defined contribution plans 540 476 265 – Past service credit a — — (17 ) Subtotal 626 611 624 Recognised in the income statement as specific items (note 9) – Costs to close BT Pension Scheme and provide transition payments b for affected employees 22 23 — – Cost to equalise benefits between men and women c — 26 — – Net interest expense on pensions deficit included in specific items 145 139 218 Subtotal 167 188 218 Total recognised in the income statement 793 799 842 a Relates to the removal of future indexation obligations following changes to the benefits provided under certain pension plans operating outside the UK in 2017/18. b All employees impacted by the closure of the BTPS receive transition payments into their BTRSS pot for a period linked to the employee’s age. There was no past service cost or credit on closure due to the assumed past service benefit link as an active member being the same as that assumed for a deferred member. c In October 2018, a High Court judgement involving the Lloyds Banking Group’s defined benefit pension schemes was handed down, resulting in the group needing to recognise additional liability to equalise benefits between men and women due to GMPs, in common with most UK defined benefit schemes. Group balance sheet The Retirement Benefit Obligations in respect of defined benefit plans reported in the group balance sheet are set out below. 2020 2019 At 31 March Assets £m Liabilities £m Deficit a £m Assets £m Liabilities £m Deficit a £m BTPS 52,240 (53,010 ) (770 ) 52,186 (58,855 ) (6,669 ) EEPS 820 (879 ) (59 ) 816 (997 ) (181 ) Other plans b 411 (722 ) (311 ) 362 (694 ) (332 ) Retirement Benefit Obligations (gross of tax) 53,471 (54,611 ) (1,140 ) 53,364 (60,546 ) (7,182 ) Deferred tax asset 175 1,208 Retirement Benefit Obligations (net of tax) (965 ) (5,974 ) a BT is not required to limit any pension surplus or recognise additional pensions liabilities in individual plans as economic benefits are available in the form of either future refunds or reductions to future contributions. This is on the basis that IFRIC 14 applies enabling a refund of surplus following the gradual settlement of the liabilities over time until there are no members remaining in the scheme. b Included in the liabilities of other plans is £150m (2018/19: £101m ) related to unfunded pension arrangements. As at 31 March 2020, £8m of pension liabilities in France have been classified as held for sale. Refer to note 23. Included within trade and other payables in the group balance sheet is £43m ( 2018/19 : £42m ) in respect of contributions payable to defined contribution plans. Movements in defined benefit plan assets and liabilities The table below shows the movements on the pension assets and liabilities and shows where they are reflected in the financial statements. Assets £m Liabilities £m Deficit £m At 31 March 2018 50,956 (57,803 ) (6,847 ) Service cost (including administration expenses and PPF levy) (49 ) (86 ) (135 ) Costs to close BT Pension Scheme (6 ) — (6 ) Cost to equalise benefits between men and women due to guaranteed minimum pension (GMP) — (26 ) (26 ) Interest on pension deficit 1,356 (1,495 ) (139 ) Included in the group income statement (306 ) Return on plan assets above the amount included in the group income statement 1,607 — 1,607 Actuarial loss arising from changes in financial assumptions a — (3,920 ) (3,920 ) Actuarial gain arising from changes in demographic assumptions a — 247 247 Actuarial loss arising from experience adjustments b — (36 ) (36 ) Included in the group statement of comprehensive income (2,102 ) Regular contributions by employer 43 — 43 Deficit contributions by employer 2,024 — 2,024 Included in the group cash flow statement 2,067 Contributions by employees 1 (1 ) — Benefits paid (2,564 ) 2,564 — Other (e.g. foreign exchange) (4 ) 10 6 Other movements 6 At 31 March 2019 53,364 (60,546 ) (7,182 ) Service cost (including administration expenses and PPF levy) (66 ) (20 ) (86 ) Interest on pension deficit 1,246 (1,391 ) (145 ) Included in the group income statement (231 ) Return on plan assets above the amount included in the group income statement 249 — 249 Actuarial gain arising from changes in financial assumptions a — 3,746 3,746 Actuarial gain arising from changes in demographic assumptions a — 498 498 Actuarial gain arising from experience adjustments b — 360 360 Included in the group statement of comprehensive income 4,853 Regular contributions by employer 160 — 160 Deficit contributions by employer 1,274 — 1,274 Included in the group cash flow statement 1,434 Contributions by employees — — — Benefits paid (2,764 ) 2,764 — Other (e.g. foreign exchange) 8 (22 ) (14 ) Other movements (14 ) At 31 March 2020 53,471 (54,611 ) (1,140 ) a The actuarial gain or loss arises from changes in the assumptions used to value the defined benefit liabilities at the end of the year compared with the assumptions used at the start of the year. This includes both financial assumptions, which are based on market conditions at the year end, and demographic assumptions such as life expectancy. b The actuarial loss or gain arising from experience adjustments on defined benefit liabilities represents the impact on the liabilities of differences between actual experience during the year compared with the assumptions made at the start of the year. Such differences might arise, for example, from members choosing different benefit options at retirement, actual salary increases being different from those assumed or actual benefit increases being different to the pension increase assumption. How do we value our retirement benefit plans? Valuation methodology The Retirement Benefit Obligations are measured as the present value of the estimated future benefit cash flows to be paid by each plan, calculated using the projected unit credit method. These calculations are performed by professionally qualified actuaries. The expected future benefit payments are based on a number of assumptions including future inflation, retirement ages, benefit options chosen and life expectancy and are therefore inherently uncertain. Actual benefit payments in a given year may be higher or lower, for example if members retire sooner or later than assumed, or take a greater or lesser cash lump sum at retirement than assumed. Overview and governance of the BTPS What is the profile of the BTPS? A t 30 June 2019, the date of the membership data used to value the liabilities, th ere were 286,000 members in the BTPS. Members belong to one of three sections depending upon the date they first joined the BTPS. The membership is analysed below. Analysis of BTPS Active members Deferred members Pensioners Total Sections A and B liabilities (£bn) a — 7.2 28.7 35.9 Section C liabilities (£bn) — 12.8 4.3 17.1 Total IAS 19 liabilities (£bn) — 20.0 33.0 53.0 Total number of members — b 81,000 205,000 286,000 a Sections A and B have been aggregated in this table as Section A members have typically elected to take Section B benefits at retirement. b At 30 June 2019 there are around 50 active members in the BTPS. The estimated duration of the BTPS liabilities, which is an indicator of the weighted average term of the liabilities, is around 15 years although the benefits payable by the BTPS are expected to be paid over more than 70 years . Whilst benefit payments are expected to increase over the earlier years, the value of the liabilities is expected to reduce. The chart below illustrates the estimated benefits payable from the BTPS forecast using the IAS 19 assumptions. What are the benefits under the BTPS? Benefits earned for pensionable service prior to 1 April 2009 are based upon a member’s final salary and a normal pensionable age of 60 . Between 1 April 2009 and 30 June 2018, Section B and C active members accrued benefits based upon a career average re-valued earnings (CARE) basis and a normal pensionable age of 65 . On a CARE basis benefits are built up based upon earnings in each year and the benefit accrued for each year is increased by the lower of inflation or the individual’s actual pay increase in each year to retirement. Under the Scheme rules the determination of the rate of inflation for statutory minimum rates of revaluation and indexation for the majority of benefits is based upon either the Retail Price Index (RPI) or the Consumer Price Index (CPI) which apply to each category of member as shown below. Active members Deferred members Pensioners Section B a Benefits accrue on a CARE basis increasing at the lower of RPI or the individual’s actual pensionable pay increase Preserved benefits are revalued before Increases in benefits in payment are currently based upon CPI Section C Increases in benefits in payment are currently based upon RPI up to a maximum of 5% a Section A members have typically elected to take Section B benefits at retirement. How is the BTPS governed and managed? BT Pension Scheme Trustees Limited (the Trustee) has been appointed by BT as an independent trustee to administer and manage the BTPS on behalf of the members in accordance with the terms of the BTPS Trust Deed and Rules and relevant legislation (principally the Pension Schemes Act 1993, the Pensions Act 1995 and the Pensions Act 2004). Under the terms of the Trust Deed there are nine Trustee directors, all of whom are appointed by BT, as illustrated below. Trustee directors are usually appointed for a three -year term but are then eligible for re-appointment. BTPS assets Critical accounting judgements and key estimates made when valuing our pension assets Und er IAS19, plan assets must be valued at the bid market value at the balance sheet date. Our pension assets include quoted and unquoted investments. A portion of unquoted investments are valued based on inputs that are not directly observable, which require more judgement. The assumptions used in valuing unquoted investments are affected by current market conditions and trends which could result in changes in fair value after the measurement date. Valuation of main quoted investments - Equities listed on recognised stock exchanges are valued at closing bid prices. Valuation of main unquoted investments (prior to estimated adjustments) - Equities are valued using the IPEVC guidelines where the most significant assumptions are the discount rate and earnings assumptions. Estimated adjustments to the valuation of main unquoted investments Under IAS 19, around £6bn of these unquoted assets have been initially measured using the most recent valuations, adjusted for cash movements between the last valuation date and 31 March 2020. As the latest valuations for these assets precede the negative impact of the Covid-19 pandemic on financial markets, we have applied an estimated adjustment by reference to either market indices or estimated 31 March 2020 valuations provided by the portfolio investment managers. Asset allocation The allocation of assets between different classes of investment is reviewed regularly and is a key factor in the Trustee’s investment policy. The allocations reflect the Trustee’s views on the appropriate balance to be struck between seeking returns and incurring risk, and on the extent to which the assets should be allocated to match liabilities. Current market conditions and trends are regularly assessed which may lead to adjustments in the asset allocation. The fair value of the assets of the BTPS analysed by asset category are shown below. These are subdivided by assets that have a quoted market price in an active market and those that do not (such as investment funds). 2020 a 2019 a Assets, prior to estimated adjustments £bn Total assets b £bn of which quoted c £bn Total % Total assets £bn of which quoted c £bn Total % Growth Equities UK 0.3 0.3 0.3 1 0.5 0.4 1 Overseas developed 6.7 6.7 5.6 13 7.7 7.3 15 Emerging markets 1.0 1.0 1.0 2 1.1 1.1 2 Private Equity 1.6 1.3 — 2 1.5 — 3 Property UK 3.5 3.5 — 7 3.5 — 7 Overseas 1.1 1.1 — 2 1.1 — 2 Other growth assets Absolute Return d 1.2 1.2 — 2 1.2 — 2 Non Core Credit e 4.4 4.2 1.0 8 3.8 1.1 7 Mature Infrastructure 1.5 1.5 — 3 1.4 — 3 Liability matching Government bonds UK 13.9 13.9 13.9 27 13.2 13.2 25 Investment grade credit Global 14.4 14.4 10.1 28 14.3 10.1 27 Cash, derivatives and other Cash balances 2.3 2.3 — 4 2.7 — 5 Longevity insurance contract f (0.8 ) (0.8 ) — (2 ) (0.7 ) — (1 ) Other g 1.6 1.6 — 3 0.9 — 2 Total 52.7 52.2 31.9 100 52.2 33.2 100 a At 31 March 2020 , the Scheme did not hold any equity issued by the group ( 2018/19 : nil ). The Scheme also held £1,867m ( 2018/19 : £2,154m ) of bonds issued by the group. b Includes an estimated adjustment to assets where the latest valuation precedes the negative impact of the Covid-19 pandemic on financial markets. The calculation of this estimated adjustment contains additional uncertainty over that of the formal valuation process for these assets c Assets with a quoted price in an active market. d This allocation seeks to generate returns irrespective of the direction of markets. Managers within this allocation will typically manage their portfolios without close regard to a specific market benchmark. e This allocation includes a range of credit investments, including emerging market, sub-investment grade and unrated credit. The allocation seeks to exploit investment opportunities within credit markets using the expertise of a range of specialist investment managers. f The Trustee has hedged some of the Scheme’s longevity risk through a longevity insurance contract which was entered into in 2014. The value reflects experience to date on the contract from higher than expected deaths. This amount partly offsets a reduction which has been recognised in the Scheme’s liabilities. g Includes collateral posted in relation to derivatives held by the Scheme. BTPS Liabilities Critical accounting judgements and key estimates made when valuing our pension liabilities T he measurement of the service cost and the liabilities involves judgements about uncertain events including the life expectancy of the members, price inflation and discount rates used to calculate the net present value of the future pension payments. We use estimates for all of these uncertain events. Our assumptions reflect historical experience, external advice and our judgement regarding future expectations at the balance sheet date. The table below summarises the approach used to set the key IAS 19 assumptions for the BTPS. Approach to set the assumption Discount rate IAS 19 requires that the discount rate is determined by reference to market yields at the reporting date on high quality corporate bonds. The currency and term of these should be consistent with the currency and estimated term of the pension obligations. RPI and CPI inflation The RPI inflation assumption is set using an inflation curve derived from market yields on government bonds, weighted by projected BTPS benefit cash flows, and making an adjustment for an inflation risk premium (to reflect the extra premium paid by investors for inflation protection), which we currently assume to be 20bps. Pension increases Benefits are assumed to increase in line with the RPI or CPI inflation assumptions, based on the relevant index for increasing benefits, as prescribed by the rules of the BTPS and summarised above. Longevity The longevity assumption takes into account: The key financial assumptions used to measure the liabilities of the BTPS are shown below. Nominal rates (per year) Real rates (per year) a At 31 March 2020 2019 2018 2020 2019 2018 Rate used to discount liabilities 2.45 % 2.35 % 2.65 % (0.15 )% (0.87 )% (0.44 )% Inflation – increase in RPI 2.60 % 3.25 % 3.10 % — % — % — % Inflation – increase in CPI 2.10 % b 2.25 % c 2.00 % d (0.5 )% b (1.0 )% c (1.1 )% d a The real rate is calculated relative to RPI inflation. b Assumed to be 0.4% lower until 31 March 2030. c Assumed to be 0.1% lower until 31 March 2023. d Assumed to be 0.1% higher until 31 March 2023. The BTPS represents over 97% of the group’s pension liabilities. While the financial assumptions may vary for each scheme, the nominal financial assumptions weighted by liabilities across all schemes are equal to the figures shown in the table above (to the nearest 0.05% ). Based on the IAS 19 longevity assumptions, the forecast life expectancies for BTPS members aged 60 are as follows: 2020 2019 At 31 March Number of years Number of years Male in lower pay bracket 25.4 25.7 Male in medium pay bracket 26.7 27.0 Male in higher pay bracket 28.1 28.5 Female in lower pay bracket 28.1 28.5 Female in higher pay bracket 28.4 28.7 Average improvement for a member retiring at age 60 in 10 years' time 0.7 0.7 Risks underlying the assumptions Background The BTPS faces similar risks to other UK DB schemes: things like future low investment returns, high inflation, longer life expectancy and regulatory changes may all mean the BTPS becomes more of a financial burden. Further details are set out on page 59. Changes in external factors, such as interest rates, can have an impact on the IAS 19 assumptions, impacting the measurement of BTPS liabilities. These factors can also impact the Scheme assets. The BTPS hedges some of these risks, including longevity and currency using financial instruments and insurance contracts. Some of the key financial risks, and mitigations, for the BTPS are set out in the table below. Changes in corporate and government bond yields A fall in yields on AA-rated corporate bonds, used to set the IAS 19 discount rate, will lead to an increase in the IAS 19 liabilities. The BTPS’s assets include corporate bonds, government bonds and interest rate derivatives which are expected to partly offset the impact of movements in the discount rate. However, yields on these assets may diverge compared with the discount rate in some scenarios. Changes in inflation expectations A significant proportion of the benefits paid to members are currently increased in line with RPI or CPI inflation. An increase in long-term inflation expectations will lead to an increase in the IAS 19 liabilities. The BTPS’s assets include index-linked government bonds and inflation derivatives which are expected to largely offset the impact of movements in inflation expectations. Changes in growth assets A significant proportion of the BTPS assets are invested in growth assets, such as equities and property. Although the BTPS has temporary hedges in place to partly offset the impact of a fall in equity markets, a fall in these growth assets will lead to a worsening of the IAS 19 deficit. Changes in life expectancy An increase in the life expectancy of members will result in benefits being paid out for longer, leading to an increase in the BTPS liabilities. The BTPS holds a longevity insurance contract which covers around 25% of the BTPS’s total exposure to improvements in longevity, providing long-term protection and income to the BTPS in the event that members live longer than currently expected. The future of RPI If RPI is aligned with CPIH in the future it could lead to a fall in long-term RPI of around 1%. At 31 March 2020, we estimate that 60% of the impact of aligning RPI with CPIH from 2030 is reflected in the value of RPI-linked assets. Full alignment from 2030 would therefore reduce RPI inflation expectations from 2030 by 0.4%. Other risks include: volatile asset returns (ie where asset returns differ from the discount rate); changes in legislation or regulation which impact the value of the liabilities or assets; and member take-up of options before and at retirement to reshape their benefits. Scenario analysis The potential negative impact of the key risks is illustrated as the following five scenarios. These have been assessed by BT's independent actuary as scenarios that might occur no more than once in every 20 years . Scenario 1-in-20 events 2020 2019 1. Fall in bond yields a 1.1 % 1.1 % 2. Increase in credit spreads only 0.7 % N/A 3. Increase to inflation rate b 0.7 % 0.7 % 4. Fall in growth assets c 20.0 % N/A 5. Increase to life expectancy 1.25 years 1.25 years a Scenario assumes a fall in the yields on both government and corporate bonds. b Assuming RPI, CPI, pension increases and salary increases all increase by the same amount. c Impact includes the potential impact of temporary equity hedges held by the Scheme. The impact shown under each scenario looks at each event in isolation – in practice a combination of events could arise. The sensitivities have been prepared using the same approach as 2018/19 which involves calculating the liabilities and assets assuming the change in market conditions assumed under the scenario occurs. BTPS funding Triennial funding valuation The triennial valuation is carried out for the Trustee by a professionally qualified independent actuary. The purpose of the valuation is to design a funding plan to ensure that the BTPS has sufficient funds available to meet future benefit payments. The latest funding valuation was performed as at 30 June 2017. The next funding valuation will have an effective date of no later than 30 June 2020. The valuation methodology for funding purposes, which is based on prudent assumptions, is broadly as follows: – Assets are valued at market value at the valuation date. – Liabilities are measured on an actuarial funding basis using the projected unit credit method and discounted to their present value. The results of the two most recent triennial valuations are shown below. June 2017 valuation £bn June 2014 valuation £bn BTPS liabilities (60.4 ) (47.2 ) Market value of BTPS assets 49.1 40.2 Funding deficit (11.3 ) (7.0 ) Percentage of accrued benefits covered by BTPS assets at valuation date 81.3 % 85.2 % Percentage of accrued benefits on a solvency basis covered by the BTPS assets at the valuation date 62.2 % 63.0 % Key assumptions – funding valuation These valuations were determined using the following prudent long-term assumptions. Nominal rates (per year) Real rates (per year) a June 2017 valuation % June 2014 valuation % June 2017 valuation % June 2014 valuation % Average single equivalent discount rate 2.6 4.5 (0.8 ) 1.0 Average long-term increase in RPI 3.4 3.5 — — Average long-term increase in CPI 2.4 2.5 (1.0 ) (1.0 ) a The real rate is calculated relative to RPI inflation and is shown as a comparator. The discount rate at 30 June 2017 was derived from prudent return expectations above a risk-free yield curve based on gilt and swap rates. The discount rate reflects views of future returns at the valuation date, allowing for the Scheme to hold 45% of its investments in growth assets initially, before de-risking to a low risk investment approach by 2034 . This gives a prudent discount rate of 1.4% per year above the yield curve initially, trending down to 0.7% per year above the curve in the long-term. The assumption is equivalent to using a flat discount rate of 1.0% per year above the risk-free yield curve at the valuation date. The average life expectancy assumptions at the valuation dates, for members 60 years of age, are as follows. Number of years from valuation date June 2017 assumptions June 2014 assumptions Male in lower pay bracket 25.9 26.1 Male in medium pay bracket 27.2 27.5 Male in high pay bracket 28.6 29.0 Female in lower pay bracket 28.6 28.9 Female in high pay bracket 28.9 29.2 Average improvement for a member retiring at age 60 in 10 years’ time 0.9 1.3 Changes in the funding position The impact of changes in market conditions on the funding liabilities may differ from the impact on the IAS 19 liabilities. The estimated impact of the scenarios illustrated on page 169 on the funding liabilities is shown in the chart below. Payments made to the BTPS Year ended 31 March 2020 2019 £m £m Ordinary contributions 118 33 Deficit contributions 1,250 2,000 Total contributions in the year 1,368 2,033 Future funding obligations and recovery plan Under the terms of the Trust Deed, the group is required to have a funding plan, determined at the conclusion of the triennial funding valuation, which is a legal agreement between BT and the Trustee and should address the deficit over a maximum period of 20 years . In May 2018, the 2017 triennial funding valuation was finalised, agreed with the Trustee and certified by the Scheme Actuary. The funding deficit at 30 June 2017 was £11.3bn . The deficit was agreed to be met over a 13 year period, with the remaining payments shown in the table below. BT is scheduled to make future deficit payments to the BTPS in line with the table below. Year to 31 March 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Deficit contribution (£m) 900 a 900 b 907 907 907 907 907 907 907 907 a £400m payable by 30 June 2020. b £200m payable by 30 June 2021. Based on the 2017 funding valuation agreement, the group expects to make contributions of approximately £960m to the BTPS in 2020/21, comprising of contributions of approximately £60m for expenses and future accrual and deficit contributions of £900m . Other protections The 2017 funding agreement with the Trustee included additional features for BT to provide support to the BTPS. These include: Feature Detail Shareholder distributions BT will provide additional payments to the BTPS by the amount that shareholder distributions exceed a threshold. The threshold allows for 10% per year dividend per share growth plus £200m per year of share buybacks on a cumulative basis. Material corporate events In the event that BT generates net cash proceeds greater than £1.0bn from disposals (net of acquisitions) in any 12-month period ending 30 June, BT will make additional contributions to the BTPS equal to one third of those net cash proceeds. This obligation applies until the next valuation is signed. Negative pledge A negative pledge that future creditors will not be granted superior security to the BTPS in excess of a £1.5bn threshold, to cover both British Telecommunications plc and BT Group plc. In the highly unlikely event that the group were to become insolvent there are additional protections of BTPS members’ benefits: Feature Detail Crown Guarantee The Crown Guarantee was granted by the Government when the group was privatised in 1984 and would only come into effect upon the insolvency of BT. The Trustee brought court proceedings to clarify the scope and extent of the Crown Guarantee. The Court of Appeal judgement on 16 July 2014 established that: – the Crown Guarantee covers BT’s funding obligation in relation to the benefits of members of the BTPS who joined post-privatisation as well as those who joined pre-privatisation (subject to certain exceptions) – the funding obligation to which the Crown Guarantee relates is measured with reference to BT’s obligation to pay deficit contributions under the rules of the BTPS. The Crown Guarantee is not taken into account for the purposes of the actuarial valuation of the BTPS and is an entirely separate matter, only being relevant in the highly unlikely event that BT became insolvent. Pension Protection Fund (PPF) Further protection is also provided by the Pension Protection Fund which is the fund responsible for paying compensation in schemes where the employer becomes insolvent. Other benefit plans In addition to the BTPS, the group maintains benefit plans around the world with a focus on these being appropriate for the local market and culture. EEPS The EEPS is the second largest defined benefit plan sponsored by the group. It has a defined benefit section that is closed to future accrual, with liabilities of around £0.9b n, and a defined contribution section with around 9,000 members. At 31 March 2020 , the defined benefit section’s assets are invested across a number of asset classes including global equities ( 20% ), property & illiquid alternatives ( 25% ), an absolute return portfolio ( 23% ) and a liability driven investment portfolio ( 32% ). The most recent triennial valuation of the defined benefit section was performed as at 31 December 2018 and agreed in March 2020. This showed a funding deficit of £161m . The group is scheduled to contribute £3.3m each month until 31 July 2022. BTRSS The BTRSS is the la |
Own shares
Own shares | 12 Months Ended |
Mar. 31, 2020 | |
Equity [abstract] | |
Own shares | Own shares Significant accounting policies that apply to own shares Own shares are recorded at cost and deducted from equity. When shares held for the beneficial ownership of employees vest unconditionally or are cancelled they are transferred from the own shares reserve to retained earnings at their weighted average cost. Treasury shares a Employee share ownership trust a Total millions £m millions £m millions £m At 31 March 2018 46 (145 ) 12 (41 ) 58 (186 ) Own shares purchased b — — 5 (9 ) 5 (9 ) Share options exercised b (1 ) 2 — — (1 ) 2 Executive share awards vested — — (8 ) 26 (8 ) 26 At 1 April 2019 45 (143 ) 9 (24 ) 54 (167 ) Own shares purchased b 41 (80 ) 3 (6 ) 44 (86 ) Share options exercised b — — — — — — Executive share awards vested — — (8 ) 22 (8 ) 22 Conversion of ADR shares c — — 3 (6 ) 3 (6 ) At 31 March 2020 86 (223 ) 7 (14 ) 93 (237 ) a At 31 March 2020 , 85,921,056 shares ( 2018/19 : 45,308,559 ) with an aggregate nominal value of £4m ( 2018/19 : £2m ) were held at cost as treasury shares and 7,255,789 shares ( 2018/19 : 9,021,714 ) with an aggregate nominal value of £nil ( 2018/19 : £nil ) were held in the Trust. b See group cash flow statement on page 128. The cash paid for the repurchase of ordinary shares was £86m ( 2018/19 : £9m ). The cash received for proceeds on the issue of treasury shares was £2m ( 2018/19 : £5m ). c Conversion of American depositary receipts to ordinary shares following delisting from the NYSE and termination of BT's ADR programme from the US Securities Exchange Commission registration. The treasury shares reserve represents BT Group plc shares purchased directly by the group. The BT Group Employee Share Ownership Trust (the Trust) also purchases BT Group plc shares. The treasury shares and the shares in the Trust are being used to satisfy our obligations under employee share plans. Further details on these plans are provided in note 22 . |
Share-based payments
Share-based payments | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share-based payments | Share-based payments Significant accounting policies that apply to share-based payments We operate a number of equity-settled share-based payment arrangements, under which we receive services from employees in consideration for equity instruments (share options and shares) of the group. Equity-settled share-based payments are measured at fair value at the date of grant. Market-based performance criteria and non-vesting conditions (for example, the requirement for employees to make contributions to the share purchase programme) are reflected in this measurement of fair value. The fair value determined at the grant date is recognised as an expense on a straight line basis over the vesting period, based on the group’s estimate of the options or shares that will eventually vest and adjusted for the effect of non market-based vesting conditions. Fair value is measured using either the Binomial options pricing model or Monte Carlo simulations, whichever is more appropriate to the share-based payment arrangement. Service and performance conditions are vesting conditions. Any other conditions are non-vesting conditions which have to be taken into account to determine the fair value of equity instruments granted. In the case that an award or option does not vest as a result of a failure to meet a non-vesting condition that is within the control of either counterparty, this is accounted for as a cancellation. Cancellations are treated as accelerated vesting and all remaining future charges are immediately recognised in the income statement. As the requirement to save under an employee saveshare arrangement is a non-vesting condition, employee cancellations, other than through a termination of service, are treated as an accelerated vesting. No adjustment is made to total equity for awards that lapse or are forfeited after the vesting date. 2020 2019 2018 Year ended 31 March £m £m £m Employee Saveshare Plans 36 38 42 Executive Share Plans: Incentive Share Plan (ISP) 16 6 16 Deferred Bonus Plan (DBP) 7 6 4 Retention Share Plan (RSP) 9 17 21 Other plans 4 0 1 72 67 84 What share incentive arrangements do we have? Our plans include savings-related share option plans for employees and those of participating subsidiaries, further share option plans for selected employees and a stock purchase plan for employees in the US. We also have several share plans for executives. All share-based payment plans are equity-settled. Details of these plans is set out below. Employee Saveshare Plans Under an HMRC-approved savings-related share option plan, employees save on a monthly basis, over a three or five -year period, towards the purchase of shares at a fixed price determined when the option is granted. This price is set at a 20% discount to the market price for five -year plans and 10% for three -year plans. The options must be exercised within six months of maturity of the savings contract, otherwise they lapse. Similar plans operate for our overseas employees. Yourshare We have announced a new share incentive plan under which people who were employees of the group at 31 December 2019 will be awarded £500 of BT shares in June 2020. The shares will be held in trust for a 3 year vesting period after which they will be transferred to employees, providing they have been continuously employed during that time. Incentive Share Plan (ISP) Under the ISP, participants are entitled to the shares in full at the end of a three -year period only if the company has met the relevant pre-determined corporate performance measures and if the participants are still employed by the group. For ISP awards granted in 2019/20 , 2018/19 and 2017/18 : 40% of each award is linked to a total shareholder return (TSR) target for a comparator group of companies from the beginning of the relevant performance period; 40% is linked to a three -year cumulative normalised free cash flow measure; and 20% to growth in underlying revenue. Deferred Bonus Plan (DBP) Under the DBP, awards are granted annually to selected employees. Shares in the company are transferred to participants at the end of three years if they continue to be employed by the group throughout that period. Retention Share Plan (RSP) Under the RSP, awards are granted to selected employees. Shares in the company are transferred to participants at the end of a specified retention period if they continue to be employed by the group throughout that period. Under the terms of the ISP, DBP and RSP, dividends or dividend equivalents earned on shares during the conditional periods are reinvested in company shares for the potential benefit of the participants. Employee Saveshare Plans Movements in Employee Saveshare options are shown below. Number of share options Weighted average exercise price 2020 2019 2018 2020 2019 2018 Year ended 31 March millions millions millions pence pence pence Outstanding at 1 April 190 175 189 254 306 313 Granted 107 80 69 168 175 250 Forfeited (50 ) (44 ) (41 ) 251 298 328 Exercised — (1 ) (30 ) 174 247 169 Expired (33 ) (20 ) (12 ) 318 294 353 Outstanding at 31 March 214 190 175 202 254 306 Exercisable at 31 March — — — 319 249 320 The weighted average share price for all options exercised during 2019/20 was 203p ( 2018/19 : 249p , 2017/18 : 311p ). The following table summarises information relating to options outstanding and exercisable under Employee Saveshare plans at 31 March 2020 . Normal dates of vesting and exercise (based on calendar years) Exercise price per share Weighted average exercise price Number of outstanding options millions Weighted average remaining contractual life 2020 243p – 397p 302 p 26 10 months 2021 170p – 376p 228 p 34 22 months 2022 164p – 353p 200 p 58 34 months 2023 170 p 170 p 35 46 months 2024 164 p 164 p 61 58 months Total 202 p 214 34 months Executive share plans Movements in executive share plan awards during 2019/20 are shown below: Number of shares (millions) ISP DBP RSP Total At 31 March 2019 74 8 11 93 Awards granted 34 5 8 47 Awards vested — (2 ) (6 ) (8 ) Awards lapsed (25 ) — (1 ) (26 ) Dividend shares reinvested 8 1 1 10 At 31 March 2020 91 12 13 116 Fair values The following table summarises the fair values and key assumptions used for valuing grants made under the Employee Saveshare plans and ISP in 2019/20 , 2018/19 and 2017/18 . 2020 2019 2018 Year ended 31 March Employee Saveshare ISP Employee Saveshare ISP Employee Saveshare ISP Weighted average fair value 39 p 152 p 41 p 156 p 56 p 202 p Weighted average share price 206 p 202 p 208 p 211 p 296 p 281 p Weighted average exercise price of options granted 168 p n/a 175 p n/a 250 p n/a Expected dividend yield 4.16% – 5.01% n/a 3.47% – 3.83% n/a 3.12% – 3.21% n/a Risk free rates 0.55% – 0.63% 0.7 % 0.74% – 1.07% 0.7 % 0.1% – 0.2% 0.2 % Expected volatility 25.0% – 28.1% 24.3 % 23.3% – 25.8% 23.5 % 23.1% – 24.3% 23.6 % Employee Saveshare grants are valued using a Binomial options pricing model. Awards under the ISP are valued using Monte Carlo simulations. TSRs are generated for BT and the comparator group at the end of the three -year performance period, using each company’s volatility and the cross correlation between pairs of stocks. Volatility has been determined by reference to BT’s historical volatility which is expected to reflect the BT share price in the future. An expected life of six months after vesting date is assumed for Employee Saveshare options. For all other awards the expected life is equal to the vesting period. The risk-free interest rate is based on the UK gilt curve in effect at the time of the grant, for the expected life of the option or award. The fair values for the DBP and RSP were determined using the market price of the shares at the grant date. The weighted average share price for DBP awards granted in 2019/20 was 195p ( 2018/19 : 209p , 2017/18 : 282p ) and for RSP awards granted in 2019/20 177p ( 2018/19 : 217p , 2017/18 : 282p ). |
Assets and liabilities classifi
Assets and liabilities classified as held for sale | 12 Months Ended |
Mar. 31, 2020 | |
Assets And Liabilities Classified As Held For Sale [Abstract] | |
Assets and liabilities classified as held for sale | Assets and liabilities classified as held for sale Assets and liabilities held for sale at 31 March 2020 relate to our domestic operations in France, our domestic operations in Spain and selected domestic operations and infrastructure in 16 countries in Latin America. All of these divestments are part of the Global segment and are expected to complete in financial year 2020/21. The disposal of these operations is in line with our strategy. The disposals do not meet the definition of a discontinued operation per IFRS 5. For operations that are classified as held for sale, impairment testing requires management to determine whether the carrying value of the disposal groups can be supported by the fair value less costs to sell. For each of the transactions which have been classified as ‘held for sale’ at 31 March 2020 we have agreed a selling price with a prospective purchaser which we have used as the fair value for the impairment test, which is classified as Level 3 on the fair value hierarchy. An impairment charge of £37m was recognised in relation to the France divestment and a charge of £90m was recognised in relation to the Latin America divestment. These impairment charges have been recognised as a specific item, see note 9. Our domestic operations in Spain are expected to be sold at a profit and therefore no impairment has been recognised on classification as held for sale. The disposal groups were stated at fair value less costs to sell and comprised the following assets and liabilities: At 31 March 2020 £m Assets Intangible assets 35 Property, plant and equipment 37 Right-of-use assets 34 Trade and other receivables 87 Contract assets 8 Deferred tax assets 4 Inventories 1 Current tax receivable 19 Cash and cash equivalents 43 Assets held for sale 268 Liabilities Trade and other payables 104 Contract liabilities 28 Lease liabilities 62 Current tax liabilities 4 Retirement benefit obligations 8 Provisions 5 Liabilities held for sale 211 |
Investments
Investments | 12 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments Significant accounting policies that apply to investments Investments classified as amortised cost These investments are measured at amortised cost. Any gain or loss on derecognition is recognised in the income statement. Investments classified as fair value through profit and loss These investments are initially recognised at fair value plus direct transaction costs. They are re-measured at subsequent reporting dates to fair value and changes are recognised directly in the income statement. Equity instruments classified as fair value through other comprehensive income We have made an irrevocable election to present changes in the fair value of equity investments that are not held for trading in other comprehensive income. All gains or losses are recognised in other comprehensive income and are not reclassified to the income statement when the investments are disposed of, aside from dividends which are recognised in the income statement when our right to receive payment is established. Equity investments are recorded in non-current assets unless they are expected to be sold within one year. IFRS 9 was applied for the first time on 1 April 2018 and introduced new classifications for financial instruments, including investments. Under IAS 39, we classified investments as available-for-sale, loans and receivables, and fair value through profit or loss. On transition to IFRS 9 we reclassified them as fair value through other comprehensive income, fair value through profit or loss, and amortised cost. The current year and 2019 figures in the following tables reflect the classifications under IFRS 9, and the 2018 figures reflect the previous classifications under IAS 39. 2020 2019 2018 At 31 March £m £m £m Non-current assets Fair value through other comprehensive income 9 48 — Available-for-sale — — 46 Fair value through profit or loss 11 6 7 20 54 53 Current assets Available-for-sale — — 2,575 Investments held at amortised cost 5,092 3,214 — Loans and receivables — — 447 5,092 3,214 3,022 Investments held at amortised cost consist of investments previously classified as loans and receivables and relate to money market investments denominated in sterling of £4,181m ( 2018/19 : £2,687m , 2017/18 : £416m ), in US dollars of £29m ( 2018/19 : £26m , 2017/18 : £27m ) in euros of £882m ( 2018/19 : £499m , 2017/18 : £nil ) and in other currencies £nil ( 2018/19 : £2m , 2017/18 : £4m ). Within these amounts are investments in liquidity funds of £4,209m ( 2018/19 : £2,522m ). In 2017/18 , investments in liquidity funds of £2,575m were classified as available-for-sale. Fair value estimation Fair value hierarchy Level 1 Level 2 Level 3 Total held at fair value At 31 March 2020 £m £m £m £m Non-current and current investments Fair value through other comprehensive income — — 9 9 Fair value through profit or loss 11 — — 11 Total 11 — 9 20 At 31 March 2019 Level 1 £m Level 2 £m Level 3 £m Total held at fair value £m Non-current and current investments Fair value through other comprehensive income 38 — 10 48 Fair value through profit or loss 6 — — 6 Total 44 — 10 54 At 31 March 2018 Level 1 £m Level 2 £m Level 3 £m Total held at fair value £m Non-current and current investments Available-for-sale 32 2,575 14 2,621 Fair value through profit or loss 7 — — 7 Total 39 2,575 14 2,628 The three levels of valuation methodology used are: Level 1 – uses quoted prices in active markets for identical assets or liabilities. Level 2 – uses inputs for the asset or liability other than quoted prices that are observable either directly or indirectly. Level 3 – uses inputs for the asset or liability that are not based on observable market data, such as internal models or other valuation methods. Level 1 investments, classified as fair value through other comprehensive income, were sold in 2019/20. The fair value gain was reclassified from fair value reserve to profit and loss reserve after disposal, see note 29. Level 2 balances disclosed in 2018 consist of investments classified as available-for-sale and relating to liquidity funds denominated in sterling of £2,180m , and in euros of £395m . Their fair value was calculated by using notional currency amounts adjusted by year end spot exchange rates. These have been reclassified on adoption of IFRS 9 and are now held at amortised cost. Level 3 balances consist of investments classified as fair value through other comprehensive income (classified as available-for-sale in 2018) of £9m ( 2018/19 : £10m , 2017/18 : £14m ) which represent investments in a number of private companies. In the absence of specific market data, these investments are held at cost, adjusted as necessary for impairments, which approximates to fair value. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Mar. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | Cash and cash equivalents Significant accounting policies that apply to cash and cash equivalents Cash and cash equivalents comprise cash in hand and current balances with banks and similar institutions, which are readily convertible to cash, are subject to insignificant risk of changes in value and have an original maturity of three months or less. All are held at amortised cost on the balance sheet, equating to fair value. For the purpose of the consolidated cash flow statement, cash and cash equivalents are as defined above net of outstanding bank overdrafts. Bank overdrafts are included within the current element of loans and other borrowings (note 26). I FRS 9 was applied for the first time on 1 April 2018 and introduces new classifications for financial instruments. Cash and cash equivalents were classified as loans and receivables under IAS 39, and are now classified as financial assets held at amortised cost under IFRS 9. The current year and 2019 figures in the following tables reflect the classifications under IFRS 9, and the 2018 figures reflect the previous classifications under IAS 39. T his has not had an impact on the accounting for these instruments, or on their carrying amounts. 2020 2019 2018 At 31 March £m £m £m Cash at bank and in hand 463 495 446 Cash equivalents UK deposits 1,043 1,132 31 US deposits 8 3 26 Other deposits 35 36 25 Total cash equivalents 1,086 1,171 82 Total cash and cash equivalents 1,549 1,666 528 Bank overdrafts (note 26) (183 ) (72 ) (29 ) Cash and cash equivalents classified as held for sale (note 23) 43 — — Cash and cash equivalents per the cash flow statement 1,409 1,594 499 Cash and cash equivalents include restricted cash of £42m ( 2018/19 : £44m , 2017/18 : £32m ), of which £29m ( 2018/19 : £40m , 2017/18 : £29m ) was held in countries where local capital or exchange controls currently prevent us from accessing cash balances. The remaining balance of £13m ( 2018/19 : £4m , 2017/18 : £3m ) was held in escrow accounts, or in commercial arrangements akin to escrow. |
Loans and other borrowings
Loans and other borrowings | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of detailed information about borrowings [abstract] | |
Loans and other borrowings | Loans and other borrowings Significant accounting policies that apply to loans and other borrowings We initially recognise loans and other borrowings at the fair value of amounts received net of transaction costs. They are subsequently measured at amortised cost using the effective interest method and, if included in a fair value hedge relationship, are re-valued to reflect the fair value movements on the associated hedged risk. The resulting amortisation of fair value movements, on de-designation of the hedge, is recognised in the income statement. What’s our capital management policy? The objective of our capital management policy is to target an overall level of debt consistent with our credit rating target while investing in the business, supporting the pension scheme and meeting our distribution policy. In order to meet this objective, we may issue or repay debt, issue new shares, repurchase shares, or adjust the amount of dividends paid to shareholders. We manage the capital structure and make adjustments to it in the light of changes in economic conditions and the risk characteristics of the group. The Board regularly reviews the capital structure. No changes were made to these objectives and processes during 2019/20 . For details of share issues and repurchases in the year see note 21 . Our capital structure consists of net debt and shareholders’ equity. The analysis below summarises the components which we manage as capital. 2020 2019 2018 At 31 March £m £m £m Net debt a 17,969 11,035 9,627 Total parent shareholders’ equity b 14,741 10,140 9,877 32,710 21,175 19,504 a Net debt at 31 March 2020 includes lease liabilities recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1 . b Excludes non-controlling interests of £22m ( 2018/19 : £27m , 2017/18 : £34m ). Net debt Net debt consists of loans and other borrowings and lease liabilities (both current and non-current), less current asset investments and cash and cash equivalents, including items which have been classified as held for sale on balance sheet. Loans and other borrowings are measured at the net proceeds raised, adjusted to amortise any discount over the term of the debt. Lease liabilities are initially measured based on lease payments that are due over the lease term discounted at the group's incremental borrowing rate, and subsequently measured at amortised cost. Current asset investments and cash and cash equivalents are measured at amortised cost. Currency denominated balances within net debt are translated to sterling at swapped rates where hedged. Fair value adjustments and accrued interest applied to reflect the effective interest method are removed. Net debt is considered to be an alternative performance measure as it is not defined in IFRS. The most directly comparable IFRS measure is the aggregate of loans and other borrowings and lease liabilities (current and non-current), current asset investments and cash and cash equivalents. A reconciliation from the most directly comparable IFRS measure to net debt is given below. 2020 2019 2018 At 31 March £m £m £m Loans and other borrowings 19,334 16,876 14,275 Lease liabilities a 6,560 — — Net liabilities classified as held for sale b 19 — — Less: Cash and cash equivalents (1,549 ) (1,666 ) (528 ) Current asset investments (5,092 ) (3,214 ) (3,022 ) 19,272 11,996 10,725 Adjustments: To retranslate debt balances at swap rates where hedged by currency swaps (1,049 ) (701 ) (874 ) To remove accrued interest applied to reflect the effective interest method and fair value adjustments (254 ) (260 ) (224 ) Net debt 17,969 11,035 9,627 a Lease liabilities recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1 . b Net liabilities classified as held for sale include lease liabilities of £62m less cash and cash equivalents of £43m , refer to note 23 . The table below shows the key components of net debt and of the increase of £6,934m this year. At 31 March 2019 IFRS 16 lease liabilities a At 1 April 2019 Issuance/ (maturities) Net lease additions a Foreign exchange Transfer to within one year Other movements At 31 March 2020 £m £m £m £m £m £m £m £m £m Loans and other borrowings due within one year b 2,100 (16 ) 2,084 (629 ) — 33 1,326 28 2,842 Lease liabilities due within one year — 725 725 (791 ) — — 897 (19 ) 812 Loans and other borrowings due after one year 14,776 (190 ) 14,586 2,843 — 398 (1,326 ) (9 ) 16,492 Lease liabilities due after one year — 5,544 5,544 — 1,139 5 (897 ) (43 ) 5,748 Impact of cross-currency swaps c (701 ) — (701 ) 81 — (429 ) — — (1,049 ) Removal of the accrued interest and fair value adjustments d (263 ) — (263 ) — — — — 68 (195 ) Gross debt 15,912 6,063 21,975 1,504 1,139 7 — 25 24,650 Less: Cash and cash equivalents (1,666 ) — (1,666 ) 75 — (2 ) — 44 (1,549 ) Current asset investments (3,214 ) — (3,214 ) (1,877 ) — (1 ) — — (5,092 ) Removal of the accrued interest d 3 — 3 — — — — (43 ) (40 ) Net debt 11,035 6,063 17,098 (298 ) 1,139 4 — 26 17,969 a Lease liabilities recognised on adoption of IFRS 16 on 1 April 2019, refer to note 1 . £206m finance lease liabilities previously included in loans and other borrowings were reclassified to lease liabilities on adoption of IFRS16. Net lease additions comprise non-cash movements in lease liabilities during the period primarily new and terminated leases, and remeasurements of existing leases. b Including accrued interest and bank overdrafts. c Translation of debt balances at swap rates where hedged by cross currency swaps. d Other movements include removal of accrued interest applied to reflect the effective interest rate method, removal of fair value adjustments and inclusion of held for sale assets and liabilities (see note 23 ). The table below gives details of the listed bonds and other debt. 2020 2019 2018 At 31 March £m £m £m 3.25% €600m bond due August 2018 a — — 541 2.35% US$800m bond due February 2019 a — — 572 4.38% £450m bond due March 2019 — — 455 1.125% €1,000m bond due June 2019 a — 869 883 8.625% £300m bond due March 2020 — 300 300 0.625% €1,500m bond due March 2021 a 1,326 1,289 1,309 0.5% €575m bond due June 2022 a 509 495 502 1.125% €1,100m bond due March 2023 a 972 946 961 0.875% €500m bond due September 2023 a 442 430 — 4.5% US$675m bond due December 2023 a 551 524 — 1% €575m bond due June 2024 a 512 498 506 1% €1,100m bond due November 2024 a 970 943 959 3.50% £250m index linked bond due April 2025 445 433 419 0.5% €650m bond due September 2025 a 574 — — 1.75% €1,300m bond due March 2026 a 1,149 1,118 1,137 1.5% €1,150m bond due June 2027 a 1,020 993 1,009 2.125% €500m bond due September 2028 a 445 433 — 5.125% US$700m bond due December 2028 a 570 542 — 5.75% £600m bond due December 2028 700 710 721 1.125% €750m bond due September 2029 a 658 — — 3.25% US$1,000m bond due November 2029 a 807 — — 9.625% US$2,670m bond due December 2030 a (minimum 8.625% b ) 2,203 2,096 1,943 3.125% £500m bond due November 2031 502 502 502 3.64% £330m bond due June 2033 339 339 — 1.613% £330m index linked bond due June 2033 343 340 — 6.375% £500m bond due June 2037 a 522 522 522 3.883% £330m bond due June 2039 340 340 — 1.739% £330m index linked bond due June 2039 343 340 — 3.924% £340m bond due June 2042 350 350 — 1.774% £340m index linked bond due June 2042 354 351 — 3.625% £250m bond due November 2047 250 250 250 4.25% US$500m bond due November 2049 a 407 — — 1.874% €500m bond due August 2080 c 441 — — Total listed bonds 18,044 15,953 13,491 Finance leases d — 206 223 Other loans 1,107 645 532 Bank overdrafts (note 25) 183 72 29 Total other loans and borrowings 1,290 717 561 Total loans and other borrowings 19,334 16,876 14,275 a Designated in a cash flow hedge relationship. b The interest rate payable on this bond attracts an additional 0.25% for a downgrade by one credit rating by either Moody’s or Standard & Poor’s to the group’s senior unsecured debt below A3/A– respectively. In addition, if Moody’s or Standard & Poor’s subsequently increase the ratings then the interest rate will be decreased by 0.25% for each rating category upgrade by each rating agency. In no event will the interest rate be reduced below the minimum rate reflected in the above table. c I Includes put option at 5.5 years d On adoption of IFRS 16 on 1 April 2019 finance leases were reclassified to lease liabilities which are presented on the face of the balance sheet, refer to note 1 . Unless previously designated in a fair value hedge relationship, all loans and other borrowings are carried on our balance sheet and in the table above at amortised cost. The fair value of listed bonds is £20,088m ( 2018/19 : £17,785m , 2017/18 : £14,878m ). The fair value of finance leases was £251m (2018/19) and £253m (2017/18). The fair value of our listed bonds is estimated on the basis of quoted market prices (Level 1). The carrying amount of other loans and bank overdrafts equates to fair value due to the short maturity of these items (Level 3). The interest rates payable on loans and borrowings disclosed above reflect the coupons on the underlying issued loans and borrowings and not the interest rates achieved through applying associated cross-currency and interest rate swaps in hedge arrangements. Loans and other borrowings are analysed as follows: 2020 2019 2018 At 31 March £m £m £m Current liabilities Listed bonds 1,552 1,367 1,702 Finance leases a — 16 18 Other loans and bank overdrafts b 1,290 717 561 Total current liabilities 2,842 2,100 2,281 Non-current liabilities Listed bonds 16,492 14,586 11,789 Finance leases a — 190 205 Total non-current liabilities 16,492 14,776 11,994 Total 19,334 16,876 14,275 a On adoption of IFRS 16 on 1 April 2019 finance leases were reclassified to lease liabilities which are presented on the face of the balance sheet, refer to note 1 . b Includes collateral received on swaps of £1,091m ( 2018/19 : £638m , 2017/18 : £525m ). The carrying values disclosed in the above table reflect balances at amortised cost adjusted for accrued interest and fair value adjustments to the relevant loans or borrowings. These do not reflect the final principal repayments that will arise after taking account of the relevant derivatives in hedging relationships which are reflected in the table below. All borrowings as at 31 March 2020 were unsecured. The principal repayments of loans and borrowings at hedged rates amounted to £18,028m ( 2018/19 : £15,912m , 2017/18 : £13,175m ) and repayments fall due as follows: 2020 2019 2018 At 31 March Carrying amount £m Effect of hedging and interest £m Principal repayments at hedged rates £m Carrying amount £m Effect of hedging and interest £m Principal repayments at hedged rates £m Carrying amount £m Effect of hedging and interest £m Principal repayments at hedged rates £m Within one year, or on demand 2,842 (406 ) 2,436 2,100 (264 ) 1,836 2,272 (291 ) 1,981 Between one and two years — — — 1,309 (133 ) 1,176 1,192 (66 ) 1,126 Between two and three years 1,482 (125 ) 1,357 15 — 15 1,332 (154 ) 1,178 Between three and four years 987 (9 ) 978 1,463 (89 ) 1,374 18 — 18 Between four and five years 1,482 9 1,491 964 33 997 1,489 (111 ) 1,378 After five years 12,536 (770 ) 11,766 10,975 (461 ) 10,514 7,899 (405 ) 7,494 Total due for repayment after more than one year 16,487 (895 ) 15,592 14,726 (650 ) 14,076 11,930 (736 ) 11,194 Total repayments 19,329 (1,301 ) 18,028 16,826 (914 ) 15,912 14,202 (1,027 ) 13,175 Fair value adjustments 5 50 73 Total loans and other borrowings 19,334 16,876 14,275 Finance leases were reclassified to lease liabilities following adoption of IFRS 16 on 1 April 2019. A maturity analysis of lease liabilities is presented in note 28 . |
Finance expense
Finance expense | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Finance Expense And Income [Abstract] | |
Finance expense | Finance expense 2020 2019 2018 Year ended 31 March £m £m £m Finance expense Interest on: Financial liabilities at amortised cost and associated derivatives 608 582 478 Lease liabilities a 140 — — Finance leases a — 13 16 Derivatives 3 — 14 Fair value movements on derivatives not in a designated hedge relationship (3 ) (3 ) 1 Reclassification of cash flow hedge from other comprehensive income 46 45 34 Unwinding of discount on provisions 2 14 15 Total finance expense before specific items 796 651 558 Specific items (note 9) 145 139 218 Total finance expense 941 790 776 a Lease liabilities were recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1. Finance lease liabilities recognised at this date were reclassified to lease liabilities. |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Financial instruments and risk management | Financial instruments and risk management We issue or hold financial instruments mainly to finance our operations; to finance corporate transactions such as dividends, share buybacks and acquisitions; for the temporary investment of short-term funds; and to manage currency and interest rate risks. In addition, various financial instruments, for example trade receivables and payables arise directly from operations. How do we manage financial risk? Our activities expose us to a variety of financial risks: market risk (including interest rate risk and foreign exchange risk), credit risk and liquidity risk. Treasury operation We have a centralised treasury operation whose primary role is to manage liquidity and funding requirements as well as our exposure to associated market risks, and credit risk. Treasury policy Treasury policy is set by the Board. Group treasury activities are subject to a set of controls appropriate for the magnitude of borrowing, investments and group-wide exposures. The Board has delegated authority to operate these policies to a series of panels responsible for the management of key treasury risks and operations. Appointment to and removal from the key panels requires approval from two of the following: the chairman, the chief executive or the chief financial officer. There has been no change in the nature of our risk profile between 31 March 2020 and the date of approval of these financial statements. How do we manage interest rate risk? Management policy Interest rate risk arises primarily from our long-term borrowings. Interest cash flow risk arises from borrowings issued at variable rates, partially offset by cash held at variable rates. Fair value interest rate risk arises from borrowings issued at fixed rates. Our policy, as set by the Board, is to ensure that at least 70% of ongoing net debt is at fixed rates. Short-term interest rate management is delegated to the treasury operation while long-term interest rate management decisions require further approval by the chief financial officer, group director tax, treasury, insurance and pensions or the treasury director who each have been delegated such authority from the Board. Hedging strategy In order to manage our interest rate profile, we have entered into cross-currency and interest rate swap agreements to vary the amounts and periods for which interest rates on borrowings are fixed. The duration of the swap agreements matches the duration of the debt instruments. The majority of the group’s long-term borrowings are subject to fixed sterling interest rates after applying the impact of these hedging instruments. How do we manage foreign exchange risk? Management policy Foreign currency hedging activities protect the group from the risk that changes in exchange rates will adversely affect future net cash flows. The Board’s policy for foreign exchange risk management defines the types of transactions typically covered, including significant operational, funding and currency interest exposures, and the period over which cover should extend for each type of transaction. The Board has delegated short-term foreign exchange management to the treasury operation and long-term foreign exchange management decisions require further approval from the chief financial officer, group director tax, treasury, insurance and pensions or the treasury director. Hedging strategy A significant proportion of our external revenue and costs arise within the UK and are denominated in sterling. Our non-UK operations generally trade and are funded in their functional currency which limits their exposure to foreign exchange volatility. We enter into forward currency contracts to hedge foreign currency capital purchases, purchase and sale commitments, interest expense and foreign currency investments. The commitments hedged are principally denominated in US dollar, euro and Asia Pacific region currencies. As a result, our exposure to foreign currency arises mainly on non-UK subsidiary investments and on residual currency trading flows. We use cross-currency swaps to swap foreign currency borrowings into sterling. The table below reflects the currency and interest rate profile of our loans and borrowings after the impact of hedging. 2020 2019 2018 At 31 March Fixed rate interest £m Floating rate interest £m Total £m Fixed rate interest £m Floating rate interest £m Total £m Fixed rate interest £m Floating rate interest £m Total £m Sterling 15,289 1,757 17,046 13,556 1,767 15,323 11,990 676 12,666 Euro — 888 888 — 589 589 — 509 509 USD — 94 94 — — — — — — Total 15,289 2,739 18,028 13,556 2,356 15,912 11,990 1,185 13,175 Ratio of fixed to floating 85 % 15 % 100 % 85 % 15 % 100 % 91 % 9 % 100 % Weighted average effective fixed interest rate – sterling 3.9 % 4.0 % 4.4 % The floating rate loans and borrowings bear interest rates fixed in advance for periods ranging from one day to one year, primarily by reference to LIBOR quoted rates, RPI and CPI. Sensitivity analysis The income statement and shareholders’ equity are exposed to volatility arising from changes in interest rates and foreign exchange rates. To demonstrate this volatility, management has concluded that the following are reasonable benchmarks for performing sensitivity analysis: – For interest, a 1% increase in interest rates and parallel shift in yield curves across sterling, US dollar and euro currencies. – For foreign exchange, a 10% strengthening of sterling against other currencies. The impact on equity, before tax and excluding any impact related to retirement benefit plans, of a 1% increase in interest rates and a 10% strengthening of sterling against other currencies is as detailed below: 2020 2019 2018 At 31 March £m Increase (reduce) £m Increase (reduce) £m Increase (reduce) Sterling interest rates 989 672 628 US dollar interest rates (610 ) (350 ) (267 ) Euro interest rates (451 ) (399 ) (401 ) Sterling strengthening (289 ) (219 ) (236 ) A 1% decrease in interest rates and 10% weakening of sterling against other currencies would have broadly the same impact in the opposite direction. The impact of a 1% change in interest rates on the group’s annual net finance expense and our exposure to foreign exchange volatility in the income statement, after hedging, (excluding translation exposures) would not have been material in 2019/20 , 2018/19 and 2017/18 . Credit ratings We continue to target a BBB+/Baa1 credit rating over the cycle, with a BBB floor. We regularly review the liquidity of the group and our funding strategy takes account of medium-term requirements. These include the pension deficit and shareholder distributions. Our December 2030 bond contains covenants which require us to pay higher rates of interest since our credit ratings fell below A3 in the case of Moody’s or A– in the case of Standard & Poor’s (S&P). Additional interest of 0.25% per year accrues for each ratings category downgrade by each agency below those levels effective from the next coupon date following a downgrade. Based on the total notional value of debt outstanding of £2.2b n at 31 March 2020 , our finance expense would increase/decrease by approximately £11m a year if the group’s credit rating were to be downgraded/upgraded, respectively, by one credit rating category by both agencies. Our credit ratings were as detailed below: 2020 2019 2018 At 31 March Rating Outlook Rating Outlook Rating Outlook Rating agency Moody’s Baa2 Negative Baa2 Stable Baa2 Stable Standard & Poor’s BBB Stable BBB Stable BBB+ Negative How do we manage liquidity risk? Management policy We maintain liquidity by entering into short and long-term financial instruments to support operational and other funding requirements, determined using short and long-term cash forecasts. These forecasts are supplemented by a financial headroom analysis which is used to assess funding adequacy for at least a 12-month period. On at least an annual basis the Board reviews and approves the long-term funding requirements of the group and on an ongoing basis considers any related matters. We manage refinancing risk by limiting the amount of borrowing that matures within any specified period and having appropriate strategies in place to manage refinancing needs as they arise. The maturity profile of our loans and borrowings at 31 March 2020 is disclosed in note 26 . We have term debt maturities of £1.3b n in 2020/21. Our treasury operation reviews and manages our short-term requirements within the parameters of the policies set by the Board. We hold cash, cash equivalents and current investments in order to manage short-term liquidity requirements. At 31 March 2020 we had undrawn committed borrowing facilities of £2.1bn ( 2018/19 : £2.1bn , 2017/18 : £2.1bn ) maturing in March 2025 . In the UK, the group has arranged for funders to offer a supplier financing scheme to the group’s suppliers. This enables suppliers who sign up to the arrangements to sell their invoices to the funders and to be paid earlier than the invoice due date. The group assesses the arrangement against indicators to assess if debts which vendors have sold to the funder under the supplier financing scheme continue to meet the definition of trade payables or should be classified as borrowings. At 31 March 2020 the payables met the criteria of trade payables. Maturity analysis The following table provides an analysis of the remaining cash flows including interest payable for our non-derivative financial liabilities on an undiscounted basis, which therefore differs from both the carrying value and fair value. Non-derivative financial liabilities Loans and other borrowings d £m Interest on loans and other borrowings d £m Trade and other payables £m Provisions £m Lease liabilities a £m Total £m At 31 March 2020 Due within one year 2,602 566 4,932 5 799 8,904 Between one and two years — 562 — 3 783 1,348 Between two and three years 1,482 562 — 3 762 2,809 Between three and four years 987 548 — 4 724 2,263 Between four and five years 1,482 520 — 2 664 2,668 After five years 12,536 3,740 — 0 3,752 20,028 19,089 6,498 4,932 17 7,484 38,020 Interest payments not yet accrued — (6,258 ) — — — (6,258 ) Fair value adjustment 5 — — — — 5 Impact of discounting — — — (1 ) (924 ) (925 ) Carrying value on the balance sheet b,c 19,094 240 4,932 16 6,560 30,842 Non-derivative financial liabilities Loans and other borrowings d £m Interest on loans and other borrowings d £m Trade and other payables £m Provisions £m Total £m At 31 March 2019 Due within one year 1,886 541 5,158 39 7,624 Between one and two years 1,309 505 — 33 1,847 Between two and three years 15 497 — 35 547 Between three and four years 1,463 496 — 14 1,973 Between four and five years 964 482 — 12 1,458 After five years 10,975 3,543 — 127 14,645 16,612 6,064 5,158 260 28,094 Interest payments not yet accrued — (5,850 ) — — (5,850 ) Fair value adjustment 50 — — — 50 Impact of discounting — — — (29 ) (29 ) Carrying value on the balance sheet b , c 16,662 214 5,158 231 22,265 Non-derivative financial liabilities Loans and other borrowings d £m Interest on loans and other borrowings d £m Trade and other payables £m Provisions £m Total £m At 31 March 2018 Due within one year 2,120 452 4,939 54 7,565 Between one and two years 1,192 404 — 34 1,630 Between two and three years 1,332 365 — 25 1,722 Between three and four years 18 357 — 43 418 Between four and five years 1,489 355 — 19 1,863 After five years 7,899 2,714 — 197 10,810 14,050 4,647 4,939 372 24,008 Interest payments not yet accrued — (4,495 ) — — (4,495 ) Fair value adjustment 73 — — — 73 Impact of discounting — — — (72 ) (72 ) Carrying value on the balance sheet b,c 14,123 152 4,939 300 19,514 a Lease liabilities were recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1 . b Foreign currency-related cash flows were translated at closing rates as at the relevant reporting date. Future variable interest rate cash flows were calculated using the most recent rate applied at the relevant balance sheet date. c The carrying amount of trade and other payables excludes £754m ( 2018/19 : £1,479m , 2017/18 : £1,326m ) of non-current trade and other payables which relates to non-financial liabilities, and £862m ( 2018/19 : £632m , 2017/18 : £2,229m ) of other taxation and social security and deferred income. d The cash flows related to index-linked bonds have not been adjusted for inflation. Trade and other payables are held at amortised cost. The carrying amount of these balances approximates to fair value due to the short maturity of amounts payable. The following table provides an analysis of the contractually agreed cash flows in respect of the group’s derivative financial instruments. Cash flows are presented on a net or gross basis in accordance with the settlement arrangements of the instruments. Derivatives – Analysed by earliest payment date a Derivatives – Analysis based on holding instrument to maturity Derivative financial liabilities Net settled Gross settled outflows Gross settled inflows Total Net settled Gross settled outflows Gross settled inflows Total At 31 March 2020 £m £m £m £m £m £m £m £m Due within one year 80 671 (608 ) 143 80 671 (608 ) 143 Between one and two years 109 88 (36 ) 161 74 88 (36 ) 126 Between two and three years 240 171 (131 ) 280 74 171 (131 ) 114 Between three and four years 227 524 (476 ) 275 74 524 (476 ) 122 Between four and five years 21 1,054 (1,003 ) 72 75 1,054 (1,003 ) 126 After five years 110 1,842 (1,759 ) 193 410 1,842 (1,759 ) 493 Total b 787 4,350 (4,013 ) 1,124 787 4,350 (4,013 ) 1,124 Derivatives – Analysed by earliest payment date a Derivatives – Analysis based on holding instrument to maturity Derivative financial liabilities Net settled Gross settled outflows Gross settled inflows Total Net settled Gross settled outflows Gross settled inflows Total At 31 March 2019 £m £m £m £m £m £m £m £m Due within one year 167 1,007 (950 ) 224 82 1,007 (950 ) 139 Between one and two years 128 541 (489 ) 180 77 541 (489 ) 129 Between two and three years 131 131 (96 ) 166 71 131 (96 ) 106 Between three and four years 163 633 (591 ) 205 71 633 (591 ) 113 Between four and five years 207 1,095 (1,042 ) 260 71 1,095 (1,042 ) 124 After five years 43 3,790 (3,660 ) 173 467 3,790 (3,660 ) 597 Total b 839 7,197 (6,828 ) 1,208 839 7,197 (6,828 ) 1,208 Derivatives – Analysed by earliest payment date a Derivatives – Analysis based on holding instrument to maturity Derivative financial liabilities Net settled Gross settled outflows Gross settled inflows Total Net settled Gross settled outflows Gross settled inflows Total At 31 March 2018 £m £m £m £m £m £m £m £m Due within one year 140 587 (547 ) 180 91 587 (547 ) 131 Between one and two years 135 183 (166 ) 152 91 183 (166 ) 108 Between two and three years 156 442 (446 ) 152 85 69 (47 ) 107 Between three and four years 143 52 (29 ) 166 80 68 (47 ) 101 Between four and five years 161 52 (29 ) 184 80 68 (47 ) 101 After five years 291 2,234 (2,149 ) 376 599 2,575 (2,512 ) 662 Total b 1,026 3,550 (3,366 ) 1,210 1,026 3,550 (3,366 ) 1,210 a Certain derivative financial instruments contain break clauses whereby either the group or bank counterparty can terminate the swap on certain dates and the mark to market position is settled in cash. b Foreign currency-related cash flows were translated at closing rates as at the relevant reporting date. Future variable interest rate cash flows were calculated using the most recent rate applied at the relevant balance sheet date. How do we manage credit risk? Management policy Our exposure to credit risk arises from financial assets transacted by the treasury operation (primarily derivatives, investments, cash and cash equivalents) and from trading-related receivables. For treasury-related balances, the Board’s defined policy restricts exposure to any one counterparty by setting credit limits based on the credit quality as defined by Moody’s and Standard & Poor’s. The minimum credit ratings permitted with counterparties in respect of new transactions are A3/A– for long-term and P1/A1 for short-term investments. If counterparties in respect of existing transactions fall below the permitted criteria we will take action where appropriate. The treasury operation continuously reviews the limits applied to counterparties and will adjust the limit according to the nature and credit standing of the counterparty, and in response to market conditions, up to the maximum allowable limit set by the Board. Operational management policy Our credit policy for trading-related financial assets is applied and managed by each of the customer-facing units to ensure compliance. The policy requires that the creditworthiness and financial strength of customers are assessed at inception and on an ongoing basis. Payment terms are set in accordance with industry standards. Where appropriate, we may minimise risks by requesting securities such as deposits, guarantees and letters of credit. We take proactive steps including constantly reviewing credit ratings of counterparties to minimise the impact of adverse market conditions on trading-related financial assets. Exposures The maximum credit risk exposure of the group’s financial assets at the balance sheet date is as follows: 2020 2019 2018 At 31 March Notes £m £m £m Derivative financial assets 2,489 1,592 1,509 Investments 24 5,112 3,268 3,075 Trade and other receivables a 17 1,432 1,766 2,518 Contract assets 5 1,721 1,602 — Cash and cash equivalents 25 1,549 1,666 528 12,303 9,894 7,630 a The carrying amount excludes £481m ( 2018/19 : £445m , 2017/18 : £317m ) of non-current trade and other receivables which relate to non-financial assets, and £1,272m ( 2018/19 : £1,456m , 2017/18 : £1,496m ) of prepayments, deferred contract costs and other receivables. The credit quality and credit concentration of cash equivalents, current asset investments and derivative financial assets are detailed in the tables below. Where the opinion of Moody’s and Standard & Poor’s (S&P) differ, the lower rating is used. 2020 2019 2018 Moody’s/S&P credit rating of counterparty £m £m £m Aa2/AA and above 4,210 2,522 2,575 Aa3/AA– 971 1,376 313 A1/A+ a 1,363 1,145 651 A2/A a 1,437 649 628 A3/A– a 0 50 180 Baa1/BBB+ a 100 75 59 Baa2/BBB and below a 585 160 207 8,666 5,977 4,613 a We hold cash collateral of £1,091m ( 2018/19 : £638m , 2017/18 : £492m ) in respect of derivative financial assets with certain counterparties. The concentration of credit risk for our trading balances is provided in note 17 , which analyses outstanding balances by customer-facing unit. Where multiple transactions are undertaken with a single financial counterparty or group of related counterparties, we enter into netting arrangements to reduce our exposure to credit risk by making use of standard International Swaps and Derivatives Association (ISDA) documentation. We have also entered into credit support agreements with certain swap counterparties whereby, on a daily, weekly and monthly basis, the fair value position on notional £2,836m of long dated cross-currency swaps and interest rate swaps is collateralised. The related net cash inflow during the year was £460m ( 2018/19 : inflow £129m , 2017/18 : outflow £220m ). The collateral paid and received is recognised within current asset investments and loans and other borrowings, respectively. Offsetting of financial instruments The table below shows our financial assets and liabilities that are subject to offset in the group’s balance sheet and the impact of enforceable master netting or similar agreements. Related amounts not set off in the balance sheet Financial assets and liabilities Amounts presented in the balance sheet £m Right of set off with derivative counterparties £m Cash collateral £m Net amount £m At 31 March 2020 Derivative financial assets 2,489 (948 ) (1,091 ) 450 Derivative financial liabilities (1,012 ) 948 83 19 Total 1,477 — (1,008 ) 469 Related amounts not set off in the balance sheet Financial assets and liabilities Amounts presented in the balance sheet £m Right of set off with derivative counterparties £m Cash collateral £m Net amount £m At 31 March 2019 Derivative financial assets 1,592 (802 ) (638 ) 152 Derivative financial liabilities (940 ) 802 90 (48 ) Total 652 — (548 ) 104 Related amounts not set off in the balance sheet Financial assets and liabilities Amounts presented in the balance sheet £m Right of set off with derivative counterparties £m Cash collateral £m Net amount £m At 31 March 2018 Derivative financial assets 1,509 (754 ) (492 ) 263 Derivative financial liabilities (837 ) 754 60 (23 ) Total 672 — (432 ) 240 Derivatives and hedging We use derivative financial instruments mainly to reduce exposure to foreign exchange and interest rate risks. Derivatives may qualify as hedges for accounting purposes if they meet the criteria for designation as fair value hedges or cash flow hedges in accordance with IFRS 9. Significant accounting policies that apply to derivatives and hedge accounting All of our derivative financial instruments are held at fair value on the balance sheet. Derivatives designated in a cash flow hedge The group designates certain derivatives as cash flow hedges. Where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the hedge. To qualify for hedge accounting, hedge documentation must be prepared at inception, the hedge must be in line with BT’s risk management strategy and there must be an economic relationship based on the currency, amount and timing of the respective cash flows of the hedging instrument and hedged item. This is assessed at inception and in subsequent periods in which the hedge remains in operation. Hedge accounting is discontinued when it is no longer in line with BT’s risk management strategy or if it no longer qualifies for hedge accounting. When a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a highly probable transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in equity, in the cash flow reserve. For cash flow hedges of recognised assets or liabilities, the associated cumulative gain or loss is removed from equity and recognised in the same line of the income statement and in the same period or periods that the hedged transaction affects the income statement. Any ineffectiveness arising on a cash flow hedge is recognised immediately in the income statement. This includes any ineffectiveness as a result of changes in our hedged forecast cash flows as a result of Covid-19. Other derivatives Our policy is not to use derivatives for trading purposes. However, due to the complex nature of hedge accounting, some derivatives may not qualify for hedge accounting, or may be specifically not designated as a hedge because natural offset is more appropriate. These derivatives are classified as fair value through profit and loss and are recognised at fair value. Any direct transaction costs are recognised immediately in the income statement. Gains and losses on re-measurement are recognised in the income statement in the line that most appropriately reflects the nature of the item or transaction to which they relate. Where the fair value of a derivative contract at initial recognition is not supported by observable market data and differs from the transaction price, a day one gain or loss will arise which is not recognised in the income statement. Such gains and losses are deferred and amortised to the income statement based on the remaining contractual term and as observable market data becomes available. The fair values of outstanding swaps and foreign exchange contracts are estimated using discounted cash flow models and market rates of interest and foreign exchange at the balance sheet date. At 31 March 2020 Current asset £m Non-current asset £m Current liability £m Non-current liability £m Designated in a cash flow hedge 250 1,954 36 740 Other 10 275 10 226 Total derivatives 260 2,229 46 966 At 31 March 2019 Current asset £m Non-current asset £m Current liability £m Non-current liability £m Designated in a cash flow hedge 102 1,228 40 689 Other 9 253 8 203 Total derivatives 111 1,481 48 892 At 31 March 2018 Current asset £m Non-current asset £m Current liability £m Non-current liability £m Designated in a cash flow hedge 187 1,061 41 587 Other 10 251 9 200 Total derivatives 197 1,312 50 787 All derivative financial instruments are categorised at Level 2 of the fair value hierarchy as defined in note 24 . Instruments designated in a cash flow hedge include interest rate swaps and cross-currency swaps hedging euro- and US dollar- denominated borrowings. Forward currency contracts are taken out to hedge step-up interest on currency denominated borrowings relating to the group’s 2030 US dollar bond. The hedged cash flows will affect the group’s income statement as interest and principal amounts are repaid over the remaining term of the borrowings (see note 26 ). We hedge forecast foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies 12 months forward with certain specific transactions hedged further forward. The related cash flows are recognised in the income statement over this period. We have considered the impact of Covid-19 on our cash flow hedges to determine if the hedged forecast cash flows remain ‘highly probable’. We do not believe that there is any ineffectiveness as a result of Covid-19. If there was a reduction in payments in future periods under our UEFA contract this may lead to some ineffectiveness being recognised in the Income Statement, however any future ineffectiveness is not envisaged to be material. The amounts related to items designated as hedging instruments were as follows: Hedged items Notional principal £m Asset £m Liability £m Balance in cash flow hedge related reserves (gain)/loss £m Fair value (gain)/loss recognised in OCI £m Amount recycled from cash flow hedge related reserves to P&L £m At 31 March 2020 Sterling, euro and US dollar denominated borrowings a 13,464 2,142 (744 ) (490 ) (828 ) 386 US dollar step up interest on US denominated borrowings b 159 7 — (45 ) (11 ) 4 Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies c 2,480 55 (11 ) (57 ) (36 ) (8 ) Fallago Rigg Energy Contract — (21 ) 21 21 — Total cash flow hedges 16,103 2,204 (776 ) (571 ) (854 ) 382 Deferred tax — — 95 Derivatives not in a designated hedge relationship 285 (236 ) — Carrying value on the balance sheet 2,489 (1,012 ) (476 ) Hedged items Notional principal £m Asset £m Liability £m Balance in cash flow hedge related reserves (gain)/loss £m Fair value (gain)/loss recognised in OCI £m Amount recycled from cash flow hedge related reserves to P&L £m At 31 March 2019 Sterling, euro and US dollar denominated borrowings a,d 11,431 1,311 (702 ) (48 ) (130 ) (19 ) US dollar step up interest on US denominated borrowings b 145 3 (1 ) (38 ) (13 ) 4 Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies c 1,821 16 (26 ) (13 ) (33 ) 33 Total cash flow hedges 13,397 1,330 (729 ) (99 ) (176 ) 18 Deferred tax — — 15 Derivatives not in a designated hedge relationship 262 (211 ) — Carrying value on the balance sheet 1,592 (940 ) (84 ) Hedged items Notional principal £m Asset £m Liability £m Balance in cash flow hedge related reserves (gain)/loss £m Fair value (gain)/loss recognised in OCI £m Amount recycled from cash flow hedge related reserves to P&L £m At 31 March 2018 e Sterling, euro and US dollar denominated borrowings a,d 10,417 1,222 (608 ) 101 347 (333 ) US dollar step up interest on US denominated borrowings b 143 — (6 ) (29 ) 13 3 Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies c 1,989 26 (14 ) (13 ) 8 53 Total cash flow hedges 12,549 1,248 (628 ) 59 368 (277 ) Deferred tax — — (22 ) Derivatives not in a designated hedge relationship 261 (209 ) — Carrying value on the balance sheet 1,509 (837 ) 37 a Sterling, euro and US dollar denominated borrowings are hedged using cross currency swaps and interest rate swaps. Amounts recycled to profit and loss are presented within other operating costs and finance expense. b US dollar step up interest on US denominated borrowings are hedged using forward currency contracts. Amounts recycled to profit and loss are presented within finance expense. c Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies are hedged using forward currency contracts. Amounts recycled to profit and loss in respect of these items are presented within cost of sales and other operating costs. d The notional principal for the 2017/18 and 2018/19 years has been re-presented to exclude £2,087m related to the notional principal of non-hedge accounted swaps previously included. e We have presented comparatives to this information, now required by IFRS 7 following the adoption of IFRS 9, for 31 March 2018. All cash flow hedges were fully effective in the period. |
Other reserves
Other reserves | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Other Reserves [Abstract] | |
Other reserves | Other reserves Other comprehensive income Capital redemption reserve £m Cash flow reserve a £m Fair value reserve b £m Cost of hedging reserve c £m Translation d Total £m At 1 April 2017 27 127 13 — 717 884 Exchange differences e — — — — (188 ) (188 ) Net fair value gain (loss) on cash flow hedges — (368 ) — — — (368 ) Movements in relation to cash flow hedges recognised in income and expense f — 277 — — — 277 Fair value movement on available-for-sale assets — — 11 — — 11 Tax recognised in other comprehensive income — 10 — — (9 ) 1 Transfer to realised profit — (83 ) — — — (83 ) At 31 March 2018 27 (37 ) 24 — 520 534 Transfer to cost of hedging reserve — 81 — (81 ) — — At 1 April 2018 27 44 24 (81 ) 520 534 Exchange differences e — — — — 64 64 Net fair value gain (loss) on cash flow hedges — 168 — 8 — 176 Movements in relation to cash flow hedges recognised in income and expense f — (31 ) — 13 — (18 ) Fair value movement on assets at fair value through other comprehensive income — — 3 — — 3 Tax recognised in other comprehensive income — (37 ) — — (4 ) (41 ) At 1 April 2019 27 144 27 (60 ) 580 718 Exchange differences e — — — — 40 40 Net fair value gain (loss) on cash flow hedges — 823 — 31 — 854 Movements in relation to cash flow hedges recognised in income and expense f — (411 ) — 29 — (382 ) Fair value movement on assets at fair value through other comprehensive income — — (5 ) — — (5 ) Tax recognised in other comprehensive income — (80 ) — — (4 ) (84 ) Transfer to realised profit — — (22 ) — — (22 ) At 31 March 2020 27 476 — — 616 1,119 a The cash flow reserve is used to record the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred. b The fair value reserve (2017/18: available-for-sale reserve) is used to record the cumulative fair value gains and losses on assets classified as fair value through other comprehensive income (2017/18: available-for-sale financial assets). The cumulative gains and losses are recycled to the income statement on disposal of the assets. Level 1 investments, classified as fair value through other comprehensive income, were sold in 2020. The fair value gain was reclassified from fair value reserve to profit and loss reserve after disposal. c The cost of hedging reserve reflects the gain or loss on the portion excluded from the designated hedging instrument that relates to the currency basis element of our cross currency swaps. It is initially recognised in other comprehensive income and accounted for similarly to gains or losses in the cash flow reserve. d The translation reserve is used to record cumulative translation differences on the net assets of foreign operations. The cumulative translation differences are recycled to the income statement on disposal of the foreign operation. e Excludes £1m ( 2018/19 : £(2)m , 2017/18 : £1m ) of exchange differences in relation to retained earnings attributed to non-controlling interests. f Movements in cash flow hedges recognised in income and expense include a net charge to other comprehensive income of £428m ( 2018/19 : charge of £63m , 2017/18 : credit of £243m ) which have been reclassified to operating costs, and a net credit to the cash flow reserve of £ 46 m ( 2018/19 : £ 45 m, 2017/18 : £ 34 m) which have been reclassified to finance expense (see note 27). |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | Related party transactions Key management personnel comprise executive and non-executive directors and members of the Executive Committee. Compensation of key management personnel is disclosed in note 6 . Amounts paid to the group’s retirement benefit plans are set out in note 20 . |
Financial commitments and conti
Financial commitments and contingent liabilities | 12 Months Ended |
Mar. 31, 2020 | |
Financial Commitments [Abstract] | |
Financial commitments and contingent liabilities | Financial commitments and contingent liabilities Financial commitments were as follows: 2020 2019 At 31 March £m £m Operating lease commitments — 6,619 TV programme rights commitments 2,434 2,113 Capital commitments 1,234 1,432 Other commitments 228 253 Total 3,896 10,417 Operating lease commitments are no longer disclosed following adoption of IFRS 16, which resulted in the balance sheet recognition of lease liabilities for all operating leases meeting the IFRS 16 lease definition. Note 1 provides a reconciliation of operating lease commitments disclosed at 31 March 2019 to lease liabilities recognised at 1 April 2019. TV programme rights commitments, mainly relating to football broadcast rights, are those for which the licence period has not yet started. Payments made to receive programming in advance of the licence period are classified as prepayments in note 17. Other than as disclosed below, there were no contingent liabilities or guarantees at 31 March 2020 other than those arising in the ordinary course of the group’s business and on these no material losses are anticipated. We have insurance cover to certain limits for major risks on property and major claims in connection with legal liabilities arising in the course of our operations. Otherwise, the group generally carries its own risks. Covid-19 Contract losses Included within other provisions in note 19 are provisions for contracts we expect to become loss making as a result of Covid-19. We have also identified other contracts that may become onerous as a result of Covid-19 but which do not meet the criteria for recognition of provisions, for example because the probability of a net outflow is not considered sufficiently probable. Programme rights At the reporting date no unrecognised programme rights commitments were affected by cancellations or postponements arising from Covid-19 and did not meet the criteria for disclosure as contingent liabilities. Commitments and guarantees BT plc In March 2019 a formal guarantee was put in place for BT Group plc to fully and unconditionally guarantee the obligations of its wholly-owned subsidiary British Telecommunications plc (‘BT plc’) under its Yankee bonds. BT Group will also guarantee the obligations under the existing notes and new notes issued under BT plc’s Euro Medium Term Note Programme (EMTN), and under BT plc’s £300 m 8.625% bonds due in 2020 and £600 m 5.75% bonds due in 2028 . BDUK Under the Building Digital UK programme, grants received by the group may be subject to reinvestment or repayment to the local authority depending on the level of take-up. Telefónica UK Limited leases We’ve provided guarantees relating to certain leases entered into by Telefónica UK Limited (formerly O2 UK Limited) prior to the demerger of mmO2 from BT on 19 November 2001. mmO2 plc (now part of the Telefónica Group) has given BT a counter indemnity for these guarantees. There is no exposure in the event of credit default in respect of amounts used to defease future lease obligations. The guarantee lasts until Telefónica UK Limited has discharged all its obligations. Legal and regulatory proceedings The group is involved in various proceedings, including actual or threatened litigation, and government or regulatory investigations. However, save as disclosed below, the group does not currently believe that there are any legal proceedings, or government or regulatory investigations that may have a material adverse impact on the operations or financial condition of the group. In respect of each of the claims below, the nature and progression of such proceedings and investigations can make it difficult to predict the impact they will have on the group. There are many reasons why we cannot make these assessments with certainty, including, among others, that they are in early stages, no damages or remedies have been specified, and/or the often slow pace of litigation. Italian business US s ecurities class action complaints: The Plaintiffs filed a fourth amended complaint in August 2019. We filed a motion to dismiss this complaint in October 2019, and briefs on that motion were completed in December 2019. On 24 April 2020, the US Federal Court Judge granted our motion and dismissed, with prejudice, all claims against BT and the named individual defendants. The Plaintiffs have 30 days in which to file any appeal. Milan Public Prosecutor prosecutions: On 11 February 2019 the Milan Public Prosecutor served BT Italia S.P.A. with a notice regarding conclusion of their preliminary investigation. The notice (which named BT Italia, as well as various individuals) records the prosecutor’s view that as at the conclusion of the preliminary investigation there is a basis for proceeding with its case against BT Italia for certain potential offences under articles 5 and 25 of Legislative Decree 231/2001. BT Italia disputes this and maintains in a defence brief filed on 19 April 2019 that it should not be prosecuted. BT Italia is not presently the subject of any formal charge (nor are any of the individuals named in the prosecutor’s notice). Following a Request for Indictment from the Milan Public Prosecutor, BT Italia and the 23 named Defendants are attending preliminary hearings to determine whether or not they should be committed to trial. The first two hearings took place on 9 and 16 December 2019. Further hearings that were scheduled for February and March 2020 have been adjourned until at least May 2020 due to the effect of the Covid-19 pandemic in Italy. Phones 4U Since 2015 the administrators of Phones 4U Limited have made allegations that EE and other mobile network operators colluded to procure Phones 4U’s insolvency. Legal proceedings for an unquantified amount were issued in December 2018 by the administrators and in April 2019 we submitted our defence to this claim. We continue to dispute these allegations vigorously. Brazilian tax claims The Brazilian state tax authorities have made tax demands on the exchange of goods and services (ICMS) and regulatory assessments (FUST/FUNTTEL) against certain Brazilian subsidiaries. These are indirect taxes imposed on the provision of telecommunications services in Brazil. The state tax and regulatory authorities are seeking to impose ICMS and FUST/FUNTTEL on revenue earned on activities that the company does not consider as being part of the provision of telecommunications services, such as equipment rental and managed services. The judicial process is likely to take many years. We have disputed the basis on which ICMS and FUST/FUNTTEL are imposed and, in the case of ICMS, have challenged the rate which the tax authorities are seeking to apply. Currently we have 33 ICMS cases with an updated potential value of £147m . This is the assessed amount for all cases spanning the period from 1998 to 2015 (plus one outlier case for the period 2013 to 2016 in the state of Minas Gerais). An ICMS assessment worth approximately £25m was cancelled by the Administrative Court in Brasilia in January 2020. There are currently 62 FUST/FUNTTEL cases in dispute with a known overall liability of £18m . During the quarter BT signed an agreement to sell BT Latam Inc. and its subsidiaries to CIH Telecommunications Americas LLC (CIH). When the sale is completed (anticipated to be during the 2020 calendar year), the entities liable for the major part of the lawsuits, administrative proceedings and/or assessments related to ICMS, FUST and FUNTTEL (the IFF Matters) will no longer be part of BT Group plc and therefore primary liability for those matters will cease to be for BT Group plc to cover. The current value of cases accruing to the retained business is around £6m for FUST/FUNTTEL and £14m for ICMS. Other than these BT Group retains no material direct exposures. Regulatory matters In respect of regulatory risks, the group provides for anticipated costs where an outflow of resources is considered probable and a reasonable estimate can be made of the likely outcome. Estimates are used in assessing the likely value of the regulatory risk. The ultimate liability may vary from the amounts provided and will be dependent upon the eventual outcome of any settlement. Northern Ireland Public Sector Shared Network contract On 4 April 2019 Ofcom opened an investigation into whether the award of the Public Sector Shared Network contract for Northern Ireland to BT complied with relevant significant market power conditions. We are cooperating with Ofcom’s investigation. Other regulatory matters In the ordinary course of business, we are periodically notified of regulatory matters. We hold provisions reflecting management’s estimates of regulatory risks across a range of issues, including price and service issues. The precise outcome of each matter depends on whether it becomes an active issue, and the extent to which negotiation or regulatory decisions will result in financial settlement. |
Significant accounting polici_2
Significant accounting policies that apply to the overall financial statements (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Basis of consolidation | Basis of consolidation The group financial statements consolidate the financial statements of BT Group plc and its subsidiaries, and include its share of the results of associates and joint ventures using the equity method of accounting. The group recognises its direct rights to (and its share of) jointly held assets, liabilities, revenues and expenses of joint operations under the appropriate headings in the consolidated financial statements. All business combinations are accounted for using the acquisition method regardless of whether equity instruments or other assets are acquired. No material acquisitions were made in the year. A subsidiary is an entity that is controlled by another entity, known as the parent or investor. An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the net assets of consolidated subsidiaries, which consist of the amounts of those interests at the date of the original business combination and non-controlling share of changes in equity since the date of the combination, are not material to the group’s financial statements. The results of subsidiaries acquired or disposed of during the year are consolidated from and up to the date of change of control. Where necessary, accounting policies of subsidiaries have been aligned with the policies adopted by the group. All intra-group transactions including any gains or losses, balances, income or expenses are eliminated in full on consolidation. When the group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. The profit or loss on disposal is recognised as a specific item. |
Inventories | Inventories Network maintenance equipment and equipment to be sold to customers are stated at the lower of cost or net realisable value, taking into account expected revenue from the sale of packages comprising a mobile handset and a subscription. Cost corresponds to purchase or production cost determined by either the first in first out (FIFO) or average cost method. |
Government grants | Government grants Government grants are recognised when there is reasonable assurance that the conditions associated with the grants have been complied with and the grants will be received. Grants for the purchase or production of property, plant and equipment are deducted from the cost of the related assets and reduce future depreciation expense accordingly. Grants for the reimbursement of operating expenditure are deducted from the related category of costs in the income statement. Estimates and judgements applied in accounting for government grants received in respect of the BDUK programme and other rural superfast broadband contracts are described in note 14 . Once a government grant is recognised, any related deferred income is treated in accordance with IAS 20 ‘Accounting for Government Grants and Disclosure of Government Assistance’. |
Foreign currencies | Foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of transactions and the translation of monetary assets and liabilities denominated in foreign currencies at period end exchange rates are recognised in the income statement line which most appropriately reflects the nature of the item or transaction. On consolidation, assets and liabilities of foreign undertakings are translated into sterling at year end exchange rates. The results of foreign undertakings are translated into sterling at average rates of exchange for the year (unless this average is not a reasonable approximation of the cumulative effects of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions). Foreign exchange differences arising on the retranslation of foreign undertakings are recognised directly in a separate component of equity, the translation reserve. In the event of the disposal of an undertaking with assets and liabilities denominated in a foreign currency, the cumulative translation difference associated with the undertaking in the translation reserve is charged or credited to the gain or loss on disposal recognised in the income statement. |
Research and development | Research and development Research expenditure is recognised in the income statement in the period in which it is incurred. Development expenditure, including the cost of internally developed software, is recognised in the income statement in the period in which it is incurred unless it is probable that economic benefits will flow to the group from the asset being developed, the cost of the asset can be reliably measured and technical feasibility can be demonstrated, in which case it is capitalised as an intangible asset on the balance sheet. Capitalisation ceases when the asset being developed is ready for use. Research and development costs include direct and indirect labour, materials and directly attributable overheads. |
Termination benefits | Termination benefits Termination benefits (leaver costs) are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. We recognise termination benefits when they are demonstrably committed to the affected employees leaving the group. |
Significant accounting policies that apply to segment information | Significant accounting policies that apply to segment information Operating and reportable segments Our operating segments are reported based on financial information provided to the Executive Committee , which is the key management committee and represents the ‘chief operating decision maker’. Our organisational structure reflects the different customer groups to which we provide communications products and services via our customer-facing units: Consumer, Enterprise, Global and Openreach. The customer-facing units are supported by an internal service unit, Technology, and corporate units including procurement and property management. The customer-facing units are our reportable segments and generate substantially all of our revenue. Technology and the group’s corporate units are not reportable segments as they did not meet the quantitative thresholds as set out in IFRS 8 ‘Operating Segments’ for any of the years presented. We aggregate the remaining operations and include within the ‘Other’ category to reconcile to the consolidated results of the group. The ‘Other’ category includes unallocated Technology costs and our corporate units. Allocation of certain items to segments Provisions for the settlement of significant legal, commercial and regulatory disputes, which are negotiated at a group level, are initially recorded in the ‘Other’ segment. On resolution of the dispute, the full impact is recognised in the results of the relevant customer-facing unit and offset in the group results through the utilisation of the provision previously charged to the ‘Other’ segment. Settlements which are particularly significant or cover more than one financial year may fall within the definition of specific items as detailed in note 9. The costs incurred by Technology and corporate units are recharged to the customer-facing units to reflect the services it provides to them. Depreciation and amortisation incurred by Technology in relation to the networks and systems it manages and operates on behalf of the customer-facing units is allocated to the customer-facing units based on their respective utilisation. Capital expenditure incurred by Technology for specific projects undertaken on behalf of the customer-facing units is allocated based on the value of the directly attributable expenditure incurred. Where projects are not directly attributable to a particular customer-facing unit, capital expenditure is allocated between them based on the proportion of estimated future economic benefits. Specific items are detailed in note 9 and are not allocated to the reportable segments as this reflects how they are reported to the Executive Committee . Finance expense and income are not allocated to the reportable segments, as the central treasury function manages this activity, together with the overall net debt position of the group. Measuring segment performance Performance of each reportable segment is measured based on adjusted EBITDA. EBITDA is defined as the group profit or loss before interest, taxation, depreciation and amortisation. Adjusted EBITDA is defined as EBITDA before specific items, net non-interest related finance expense, and share of profits or losses of associates and joint ventures. Adjusted EBITDA is considered to be a useful measure of the operating performance of the customer-facing units because it approximates the underlying operating cash flow by eliminating depreciation and amortisation and also provides a meaningful analysis of trading performance by excluding specific items, which are disclosed separately by virtue of their size, nature or incidence. Revenue recognition Our revenue recognition policy is set out in the following note. Internal revenue and costs Most of our internal trading relates to Openreach and arises on rentals, and any associated connection or migration charges, of the UK access lines and other network products to the customer-facing units, including the use of BT Ireland’s network. This occurs both directly, and also indirectly, through Technology which is included within the ‘Other’ segment. Enterprise internal revenue arises from Consumer for mobile Ethernet access and Technology for transmission planning services. Internal revenue arising in Consumer relates primarily to employee broadband and wi-fi services. Intra-group revenue generated from the sale of regulated products and services is based on market price. Intra-group revenue from the sale of other products and services is agreed between the relevant customer-facing units and therefore the profitability of customer-facing units may be impacted by transfer pricing levels. Geographic segmentation The UK is our country of domicile and we generate the majority of our revenue from external customers in the UK. The geographic analysis of revenue is based on the country of origin in which the customer is invoiced. The geographic analysis of non-current assets, which exclude derivative financial instruments, investments and deferred tax assets, is based on the location of the assets. |
Significant accounting policies that apply to revenue | Significant accounting policies that apply to revenue Revenue from contracts with customers in scope with IFRS 15 Most revenue recognised by the group is in scope of IFRS 15 and is subject to the following revenue recognition policy. On inception of the contract we identify a “performance obligation” for each of the distinct goods or services we have promised to provide to the customer. The consideration specified in the contract with the customer is allocated to each performance obligation identified based on their relative standalone selling prices, and is recognised as revenue as they are satisfied. The table below summarises the performance obligations we have identified for our major service lines and provides information on the timing of when they are satisfied and the related revenue recognition policy. Also detailed in this note is revenue expected to be recognised in future periods for contracts in place at 31 March 2020 that contain unsatisfied performance obligations. Service line Performance obligations Revenue recognition policy ICT and managed networks Provision of networked IT services, managed network services, and arrangements to design and build software solutions. Performance obligations are identified for each distinct service or deliverable for which the customer has contracted, and are considered to be satisfied over the time period that we deliver these services or deliverables. Commitments to provide hardware to customers that are distinct from the other promises are considered to be satisfied at the point in time that control passes to the customer. Revenue for services is recognised over time using a measure of progress that appropriately reflects the pattern by which the performance obligation is satisfied. For time and material contracts, revenue is recognised as the service is received by the customer. Where performance obligations exist for the provision of hardware, revenue is recognised at the point in time that the customer obtains control of the promised asset. For long-term fixed price contracts revenue recognition will typically be based on the achievement of contract milestones and customer acceptance. Fixed access subscriptions Provision of broadband, TV and fixed telephony services including local, national and international calls, connections, line rental, and calling features. Performance obligations exist for each ongoing service provided to the customer and are satisfied over the period that the services are provided. Installation services are recognised as distinct performance obligations if their relationship with the other services in the contract is purely functional. These are satisfied when the customer benefits from the service. Connection services are not distinct performance obligations and are therefore combined with the associated service performance obligation. Fixed subscription charges are recognised as revenue on a straight line basis over the period that the services are provided. Upfront charges for non-distinct connection and installation services are deferred as contract liabilities and are recognised as revenue over the same period. Variable charges such as call charges are recognised when the related services are delivered. Where installation activities are distinct performance obligations, revenue is recognised at the point in time that the installation is completed. Mobile subscriptions Provision of mobile postpaid and prepaid services, including voice minutes, SMS, and data services. Performance obligations exist for each ongoing service provided to the customer and are satisfied over the period that the services are provided. Subscription fees, consisting primarily of monthly charges for access to broadband and other internet access or voice and data services, are recognised as the service is provided. One-off services such as calls outside of plan and excess data usage are recognised when the service is used. Equipment and other services Provision of equipment and other services, including mobile phone handsets and hardware such as set top boxes and broadband routers provided as part of customer contracts. Performance obligations are satisfied at the point in time that control passes to the customer. For other services, performance obligations are identified based on the distinct goods and services we have committed to provide. Revenue from equipment sales is recognised at the point in time that control passes to the customer. Where payment is not received in full at the time of the sale, such as with equipment provided as part of mobile and fixed access subscriptions, contract assets are recognised for the amount due from the customer that will be recovered over the contract period. Revenue to be recognised is calculated by reference to the relative standalone selling price of the equipment. For other services, revenue is recognised when the related performance obligations are satisfied, which could be over time or at a point in time depending on the nature of the service. We recognise revenue based on the relative standalone selling price of each performance obligation. Determining the standalone selling price often requires judgement and may be derived from regulated prices, list prices, a cost-plus derived price, or the price of similar products when sold on a standalone basis by BT or a competitor. In some cases it may be appropriate to use the contract price when this represents a bespoke price that would be the same for a similar customer in a similar circumstance. The fixed element of fixed access and mobile subscription arrangements sold by our Consumer business is typically payable in advance, with any variable or one-off charges billed in arrears. Payment is received immediately for direct sales of equipment to customers. Where equipment is provided to customers under mobile and fixed access subscription arrangements, payment for the equipment is received over the course of the contract term. For sales by our enterprise businesses, invoices are issued in line with contractual terms. Payments received in advance are recognised as contract liabilities, amounts billed in arrears are recognised as contract assets. We do not have any material obligations in respect of returns, refunds or warranties. Where we act as an agent in a transaction, we recognise commission net of directly attributable costs. Where the actual and estimated costs to completion of the contract exceed the estimated revenue, a loss is recognised immediately. We exercise judgement in assessing whether the initial set-up, transition and transformation phases of long-term contracts are distinct from the other services to be delivered under the contract and therefore represent distinct performance obligations. This determines whether revenue is recognised in the early stages of the contract, or deferred until delivery of the other services promised in the contract begins. We recognise immediately the entire estimated loss for a contract when we have evidence that the contract is unprofitable. If these estimates indicate that any contract will be less profitable than previously forecast, contract assets may have to be written down to the extent they are no longer considered to be fully recoverable. We perform ongoing profitability reviews of our contracts in order to determine whether the latest estimates are appropriate. Key factors reviewed include: - Transaction volumes or other inputs affecting future revenues which can vary depending on customer requirements, plans, market position and other factors such as general economic conditions. - Our ability to achieve key contract milestones connected with the transition, development, transformation and deployment phases for customer contracts. - The status of commercial relations with customers and the implications for future revenue and cost projections. - Our estimates of future staff and third-party costs and the degree to which cost savings and efficiencies are deliverable. - Whether Covid-19 will have an impact on the assumptions listed above, including our future revenue projections, our ability to complete our contractual work on time, and our assessment of whether our force majeure contract clauses will prevent any contract penalties. Revenue from lease arrangements in scope of IFRS 16 As set out in note 1, some arrangements to provide external communications providers with exclusive use of fixed-network telecommunications infrastructure previously accounted for as service contracts under IFRS 15 now meet the definition of operating leases under IFRS 16. During the year we changed the terms and conditions of some consumer broadband and TV products which resulted in devices such as routers provided to customers now meeting the definition of operating leases. Associated income continues to be classified as revenue as these arrangements are core business activities. At inception of a contract, we determine whether the contact is, or contains a lease following the accounting policy set out in note 15. Arrangements meeting the definition of a lease in which we act as lessor are classified as operating or finance leases at lease inception based on an overall assessment of whether the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset. If this is the case then the lease is a finance lease; if not, it is an operating lease. Income from arrangements classified as operating leases is presented as revenue where it relates to our core operating activities, for example leases of fixed-line telecommunications infrastructure to external communications providers and leases of devices to consumer customers as part of fixed access subscription products. Operating lease income from other arrangements is presented within other operating income (note 6). We recognise lease payments as income on a straight-line basis over the lease term. Any upfront payments received, such as connection fees, are deferred over the lease term. Determining the lease term is subject to the significant judgements set out in note 15. Where the contract contains both lease and non-lease components, the transaction price is allocated between the components on the basis of relative stand-alone selling price. Income from arrangements classified as finance leases is not material to the group. |
Significant accounting policies that apply to contract assets and liabilities | Significant accounting policies that apply to contract assets and liabilities We recognise contract assets for goods and services for which control has transferred to the customer before consideration is due. These assets mainly relate to mobile handsets provided upfront but paid for over the course of a contract. Contract assets are reclassified as receivables when the right to payment becomes unconditional and we have billed the customer. Contract liabilities are recognised when we have received advance payment for goods and services that we have not transferred to the customer. These primarily relate to fees received for connection and installation services that are not distinct performance obligations. Where the initial set-up, transition or transformation phase of a long-term contract is considered to be a distinct performance obligation we recognise a contract asset for any work performed but not billed. Conversely a contract liability is recognised where these activities are not distinct performance obligations and we receive upfront consideration. In this case eligible costs associated with delivering these services are capitalised as fulfilment costs, see note 17. We provide for expected lifetime losses on contract assets following the policy set out in note 17. |
Significant accounting policies that apply to specific items | Significant accounting policies that apply to specific items We separately identify and disclose those items that in management’s judgement need to be disclosed by virtue of their size, nature or incidence (termed ‘specific items’). Specific items are used to derive the adjusted results as presented in the consolidated income statement presented on page 124. Adjusted results are consistent with the way that financial performance is measured by management and assist in providing an additional analysis of the reporting of the trading results of the group. Specific items may not be comparable to similarly titled measures used by other companies. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors. Examples of charges or credits meeting the above definition and which have been presented as specific items in the current and/or prior years include acquisitions/disposals of businesses and investments, retrospective regulatory matters, historical insurance or litigation claims, business restructuring programmes, asset impairment charges, property rationalisation programmes, net interest on pensions and the settlement of multiple tax years. In the event that items meet the criteria, which are applied consistently from year to year, they are treated as specific items. We have also included the impacts of Covid-19 on various balance sheet items as at 31 March 2020 as specific. The impact of Covid-19 on underlying trading is recognised in our underlying (adjusted) results and not as a specific item. |
Significant accounting policies that apply to taxation | Significant accounting policies that apply to taxation Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the group’s subsidiaries, associates and joint ventures operate and generate taxable income. We periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and establish provisions where appropriate on the basis of the amounts expected to be paid to tax authorities. Deferred tax is recognised, using the liability method, in respect of temporary differences between the carrying amount of our assets and liabilities and their tax base. Deferred tax is determined using tax rates that are expected to apply in the periods in which the asset is realised or liability settled, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Any remaining deferred tax asset is recognised only when, on the basis of all available evidence, it can be regarded as probable that there will be suitable taxable profits, within the same jurisdiction, in the foreseeable future against which the deductible temporary difference can be utilised. Deferred tax balances for which there is a right of offset within the same jurisdiction are presented net on the face of the group balance sheet as permitted by IAS 12, with the exception of deferred tax related to our pension schemes which is disclosed within deferred tax assets. |
Significant accounting policies that apply to intangible assets | Significant accounting policies that apply to intangible assets We recognise identifiable intangible assets where we control the asset, it is probable that future economic benefits attributable to the asset will flow to the group, and we can reliably measure the cost of the asset. We amortise all intangible assets, other than goodwill, over their useful economic life. The method of amortisation reflects the pattern in which the assets are expected to be consumed. If the pattern cannot be determined reliably, the straight line method is used. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the group’s share of the identifiable net assets (including intangible assets) of the acquired business. Our goodwill impairment policy is set out later in this note. Acquired intangible assets – customer relationships and brands Intangible assets such as customer relationships or brands acquired through business combinations are recorded at fair value at the date of acquisition and subsequently carried at amortised cost. Assumptions are used in estimating the fair values of these relationships or brands and include management’s estimates of revenue and profits to be generated by them. Telecommunications licences Licence fees paid to governments, which permit telecommunications activities to be operated for defined periods, are initially recorded at cost and amortised from the time the network is available for use to the end of the licence period or where our usage can extend beyond the initial licence period, over the period we expect to benefit from the use of the licences, which is typically 20 years. Licences acquired through business combinations are recorded at fair value at the date of acquisition and subsequently carried at amortised cost. The fair value is based on management’s assumption of future cash flows using market expectations at acquisition date. Computer software Computer software comprises computer software licences purchased from third parties, and also the cost of internally developed software. Computer software licences purchased from third parties are initially recorded at cost. We only capitalise costs directly associated with the production of internally developed software, including direct and indirect labour costs of development, where it is probable that the software will generate future economic benefits, the cost of the asset can be reliably measured and technical feasibility can be demonstrated, in which case it is capitalised as an intangible asset on the balance sheet. Costs which do not meet these criteria and research costs are expensed as incurred. Our development costs which give rise to internally developed software include upgrading the network architecture or functionality and developing service platforms aimed at offering new services to our customers. Other Other intangible assets include website development costs and other licences. Items are capitalised at cost and amortised on a straight line basis over their useful economic life or the term of the contract. Estimated useful economic lives The estimated useful economic lives assigned to the principal categories of intangible assets are as follows: – Computer software 2 to 10 years – Telecommunications licences 2 to 20 years – Customer relationships and brands 1 to 15 years Impairment of intangible assets Intangible assets with finite useful lives are tested for impairment if events or changes in circumstances (assessed at each reporting date) indicate that the carrying amount may not be recoverable. When an impairment test is performed, the recoverable amount is assessed by reference to the higher of the net present value of the expected future cash flows (value in use) of the relevant cash generating unit and the fair value less costs to dispose. Goodwill is reviewed for impairment at least annually as described below. Impairment losses are recognised in the income statement, as a specific item. If a cash generating unit is impaired, impairment losses are allocated firstly against goodwill, and secondly on a pro-rata basis against intangible and other assets. |
Significant accounting policies that apply to impairment of goodwill | Significant accounting policies that apply to impairment of goodwill We perform an annual goodwill impairment review. Goodwill recognised in a business combination does not generate cash flows independently of other assets or groups of assets. As a result, the recoverable amount, being the value in use, is determined at a cash generating unit (CGU) level. These CGUs represent the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other groups of assets. Our CGUs are deemed to be legacy BT Consumer, legacy EE, Enterprise, and Global. We allocate goodwill to each of the Cash Generating Units (CGUs) that we expect to benefit from the business combination. Each CGU to which goodwill is allocated represents the lowest level within the group at which the goodwill is monitored for internal management purposes. The value in use of each CGU is determined using cash flow projections derived from financial plans approved by the Board covering a five-year period. They reflect management’s expectations of revenue, EBITDA growth, capital expenditure, working capital and operating cash flows, based on past experience and future expectations of business performance. Cash flows beyond the fifth year have been extrapolated using perpetuity growth rates. |
Significant accounting policies that apply to property, plant and equipment | Significant accounting policies that apply to property, plant and equipment Our property, plant and equipment is included at historical cost, net of accumulated depreciation, government grants and any impairment charges. Property, plant and equipment acquired through business combinations are initially recorded at fair value and subsequently accounted for on the same basis as our existing assets. We derecognise items of property, plant and equipment on disposal or when no future economic benefits are expected to arise from the continued use of the asset. The difference between the sale proceeds and the net book value at the date of disposal is recognised in operating costs in the income statement. Included within the cost of network infrastructure and equipment are direct and indirect labour costs, materials and directly attributable overheads. We depreciate property, plant and equipment on a straight line basis from the time the asset is available for use, to write off the asset’s cost over the estimated useful life taking into account any expected residual value. Freehold land is not depreciated. Estimated useful economic lives The estimated useful lives assigned to principal categories of assets are as follows: Land and buildings – Freehold buildings 14 to 50 years – Short-term leasehold improvements Shorter of 10 years or lease term – Leasehold land and buildings Unexpired portion of lease or 40 years, whichever is the shorter Network infrastructure Transmission equipment – Duct 40 years – Cable 3 to 25 years – Fibre 5 to 20 years Exchange equipment 2 to 13 years Other network equipment 2 to 20 years Other assets – Motor vehicles 2 to 9 years – Computers and office equipment 3 to 7 years Residual values and useful lives are reassessed annually and, if necessary, changes are recognised prospectively. Network share assets Certain assets have been contributed to a network share arrangement by both EE and Hutchison 3G UK Limited, with legal title remaining with the contributor. This is considered to be a reciprocal arrangement. Our share of the assets on acquisition of EE were recognised at fair value within tangible assets, and depreciated in line with policy. Subsequent additions are recorded at cost. Impairment of property, plant and equipment We test property, plant and equipment for impairment if events or changes in circumstances (assessed at each reporting date) indicate that the carrying amount may not be recoverable. When an impairment test is performed, we assess the recoverable amount by reference to the higher of the net present value of the expected future cash flows (value in use) of the relevant asset and the fair value less costs to dispose. If it is not possible to determine the recoverable amount for the individual asset then we assess impairment by reference to the relevant cash generating unit as described in note 13. |
Significant accounting policies that apply to leases | Significant accounting policies that apply to leases We adopted IFRS 16 for the first time on 1 April 2019 using the modified retrospective transition option. Comparative information is not restated under this transition option, therefore the disclosures presented in this note concern the 2019/20 period only. IFRS 16 lease accounting policy applicable to the current year Identifying whether a lease exists At inception of a contract, we determine whether the contract is, or contains a lease. A lease exists if the contract conveys the right to control the use of an identified asset, for a period of time, in exchange for consideration. In making this assessment, we consider whether: – The contract involves the use of an identified asset, either explicitly or implicitly. The asset must be physically distinct or represent substantially all the capacity of a physically distinct asset. Assets that a supplier has a substantive right to substitute are not considered distinct. – The lessee (either the group, or the group’s customers) has the right to obtain substantially all the economic benefits from the use of the asset throughout the period of use; and – The lessee has the right to direct the use of the asset, in other words, has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. Where practicable, and by class of underlying asset, we have elected to account for leases containing a lease component and one or more non-lease components as a single lease component. Where this election has been taken, it has been applied to the entire asset. Lessee accounting We recognise a lease liability and right-of-use asset at the commencement of a lease. Lease liabilities are initially measured at the present value of lease payments that are due over the lease term, discounted using the group’s incremental borrowing rate. This is the rate that we would have to pay for a loan of a similar term, and with similar security, to obtain an asset of similar value. Lease payments include: – fixed payments – variable lease payments that depend on an index or rate – amounts expected to be paid under residual value guarantees – the exercise price of any purchase options that we are reasonably certain to exercise – payments due over optional renewal periods where we are reasonably certain to renew – penalties for early termination of the lease where we are reasonably certain to terminate early Lease liabilities are subsequently measured at amortised cost using the effective interest method. It is remeasured if there is a change in future lease payments or the amount we expect to be payable under a residual value guarantee, or if we change our assessment of whether we will exercise a purchase, renewal or termination option. Right-of-use assets are initially measured at the initial amount of the corresponding lease liabilities, adjusted for any prepaid lease payments, plus any initial direct costs incurred and an estimate of any decommissioning costs that have been recognised as provisions, less any lease incentives received. They are subsequently depreciated using the straight-line method to the earlier of the end of the useful life of the asset or the end of the lease term. Right-of-use assets are tested for impairment following the policy set out in note 14 and are adjusted for any remeasurement of lease liabilities. We have elected not to recognise lease liabilities and right-of-use assets for short-term leases that have a lease term of 12 months or less, and leases of low-value assets with a purchase price under £5,000. We recognise lease payments associated with these items as an expense on a straight-line basis over the lease term. Any variable lease payments that do not depend on an index or rate, such as usage-based payments, are recognised as an expense in the period to which the variability relates. IAS 17 lease accounting policy applicable to the 2017/18 and 2018/19 financial reporting periods The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and whether the arrangement conveys the right to use the asset. Leases of property, plant and equipment where we hold substantially all the risks and rewards of ownership are classified as finance leases and are presented within property, plant and equipment (note 14). Finance lease assets are capitalised at the commencement of the lease term at the lower of the present value of the minimum lease payments or the fair value of the leased asset. The obligations relating to finance leases, net of finance charges in respect of future periods, are recognised as liabilities. Leases are subsequently measured at amortised cost using the effective interest method. Leases where a significant portion of the risk and rewards are held by the lessor are classified as operating leases. Rentals are charged to the income statement on a straight-line basis over the period of the lease and are presented within operating costs (note 6). |
Significant accounting policies that apply to programme rights | Significant accounting policies that apply to programme rights Pro gramme rights are recognised on the balance sheet from the point at which the legally enforceable licence period begins. They are initially recognised at cost and are amortised from the point at which they are available for use, on a straight line basis over the programming period, or the remaining licence term, as appropriate, which is generally 12 months. Programme rights are tested for impairment in accordance with our impairment policy as set out in note 13. |
Significant accounting policies that apply to trade and other receivables | Significant accounting policies that apply to trade and other receivables We initially recognise trade and other receivables at fair value, which is usually the original invoiced amount. They are subsequently carried at amortised cost using the effective interest method. The carrying amount of these balances approximates to fair value due to the short maturity of amounts receivable. We provide services to consumer and business customers, mainly on credit terms. We know that certain debts due to us will not be paid through the default of a small number of our customers. Because of this, we recognise an allowance for doubtful debts on initial recognition of receivables, which is deducted from the gross carrying amount of the receivable. The allowance is calculated by reference to credit losses expected to be incurred over the lifetime of the receivable. In estimating a loss allowance we consider historical experience and informed credit assessment alongside other factors such as the current state of the economy and particular industry issues. We consider reasonable and supportable information that is relevant and available without undue cost or effort. Once recognised, trade receivables are continuously monitored and updated. Allowances are based on our historical loss experiences for the relevant aged category as well as forward-looking information and general economic conditions, this includes the impact of Covid-19. Allowances are calculated by individual customer-facing units in order to reflect the specific nature of the customers relevant to that customer-facing unit. Following the outbreak of Covid-19 we have reassessed our expected loss provisions including assessing the risk factors associated with various industry sectors and applying a risk weighting to each sector. Contingent assets such as any insurance recoveries, or prepaid programme rights which we expect to recoup, have not been recognised in the financial statements as these are only recognised within trade and other receivables when their receipt is virtually certain. Following the outbreak of Covid-19 we have reassessed our expected loss provisions including assessing the risk factors associated with various industry sectors and applying a risk weighting to each sector. Contingent assets such as any insurance recoveries, or prepaid programme rights which we expect to recoup, have not been recognised in the financial statements as these are only recognised within trade and other receivables when their receipt is virtually certain. |
Significant accounting policies that apply to deferred contract costs | Significant accounting policies that apply to deferred contract costs We capitalise certain costs associated with the acquisition and fulfilment of contracts with customers and amortise them over the period that we transfer the associated services. Connection costs are deferred as contract fulfilment costs because they allow satisfaction of the associated connection performance obligation and are considered recoverable. Sales commissions and other third party contract acquisition costs are capitalised as costs to acquire a contract unless the associated contract term is less than 12 months, in which case they are expensed as incurred. Capitalised costs are amortised over the minimum contract term. A portfolio approach is used to determine contract term. Where the initial set-up, transition and transformation phases of long-term contractual arrangements represent distinct performance obligations, costs in delivering these services are expensed as incurred. Where these services are not distinct performance obligations, we capitalise eligible costs as a cost of fulfilling the related service. Capitalised costs are amortised on a straight line basis over the remaining contract term, unless the pattern of service delivery indicates a more appropriate profile. To be eligible for capitalisation, costs must be directly attributable to specific contracts, relate to future activity, and generate future economic benefits. Capitalised costs are regularly assessed for recoverability. |
Significant accounting policies that apply to trade and other payables | Significant accounting policies that apply to trade and other payables We initially recognise trade and other payables at fair value, which is usually the original invoiced amount. We subsequently carry them at amortised cost using the effective interest method. |
Significant accounting policies that apply to provisions | Significant accounting policies that apply to provisions We recognise provisions when the group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Where these criteria are not met we disclose a contingent liability if the group has a possible obligation, or has a present obligation with an outflow that is not probable or which cannot be reliably estimated. Contingent liabilities are disclosed in note 31. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. |
Significant accounting policies that apply to retirement benefit plans | Significant accounting policies that apply to retirement benefit plans Defined benefit plans The Retirement Benefit Obligations in respect of defined benefit plans is the liability (the present value of all expected future obligations) less the fair value of the plan assets. The income statement expense is allocated between an operating charge and net finance income or expense. – The operating charge reflects the increase in the liability resulting from the pension benefit earned by active employees in the current period, the costs of administering the plans and any past service costs/credits such as those arising from curtailments or settlements. – The net finance income or expense reflects the interest on the Retirement Benefit Obligations recognised in the group balance sheet, based on the discount rate at the start of the year. Remeasurements of the Retirement Benefit Obligations are recognised in full in the group statement of comprehensive income in the year in which they arise. These comprise the impact on the liabilities of changes in demographic and financial assumptions compared with the start of the year, actual experience being different to those assumptions and the return on plan assets being above or below the amount included in the net pension interest expense. Defined contribution plans The income statement expense for the defined contribution pension plans we operate represents the contributions payable for the year. |
Significant accounting policies relating to own shares | Significant accounting policies that apply to own shares Own shares are recorded at cost and deducted from equity. When shares held for the beneficial ownership of employees vest unconditionally or are cancelled they are transferred from the own shares reserve to retained earnings at their weighted average cost. |
Significant accounting policies that apply to share-based payments | Significant accounting policies that apply to share-based payments We operate a number of equity-settled share-based payment arrangements, under which we receive services from employees in consideration for equity instruments (share options and shares) of the group. Equity-settled share-based payments are measured at fair value at the date of grant. Market-based performance criteria and non-vesting conditions (for example, the requirement for employees to make contributions to the share purchase programme) are reflected in this measurement of fair value. The fair value determined at the grant date is recognised as an expense on a straight line basis over the vesting period, based on the group’s estimate of the options or shares that will eventually vest and adjusted for the effect of non market-based vesting conditions. Fair value is measured using either the Binomial options pricing model or Monte Carlo simulations, whichever is more appropriate to the share-based payment arrangement. Service and performance conditions are vesting conditions. Any other conditions are non-vesting conditions which have to be taken into account to determine the fair value of equity instruments granted. In the case that an award or option does not vest as a result of a failure to meet a non-vesting condition that is within the control of either counterparty, this is accounted for as a cancellation. Cancellations are treated as accelerated vesting and all remaining future charges are immediately recognised in the income statement. As the requirement to save under an employee saveshare arrangement is a non-vesting condition, employee cancellations, other than through a termination of service, are treated as an accelerated vesting. No adjustment is made to total equity for awards that lapse or are forfeited after the vesting date. |
Significant accounting policies that apply to investments | Significant accounting policies that apply to investments Investments classified as amortised cost These investments are measured at amortised cost. Any gain or loss on derecognition is recognised in the income statement. Investments classified as fair value through profit and loss These investments are initially recognised at fair value plus direct transaction costs. They are re-measured at subsequent reporting dates to fair value and changes are recognised directly in the income statement. Equity instruments classified as fair value through other comprehensive income We have made an irrevocable election to present changes in the fair value of equity investments that are not held for trading in other comprehensive income. All gains or losses are recognised in other comprehensive income and are not reclassified to the income statement when the investments are disposed of, aside from dividends which are recognised in the income statement when our right to receive payment is established. Equity investments are recorded in non-current assets unless they are expected to be sold within one year. |
Significant accounting policies that apply to cash and cash equivalents | Significant accounting policies that apply to cash and cash equivalents Cash and cash equivalents comprise cash in hand and current balances with banks and similar institutions, which are readily convertible to cash, are subject to insignificant risk of changes in value and have an original maturity of three months or less. All are held at amortised cost on the balance sheet, equating to fair value. For the purpose of the consolidated cash flow statement, cash and cash equivalents are as defined above net of outstanding bank overdrafts. Bank overdrafts are included within the current element of loans and other borrowings (note 26). |
Significant accounting policies that apply to loans and other borrowings | Significant accounting policies that apply to loans and other borrowings We initially recognise loans and other borrowings at the fair value of amounts received net of transaction costs. They are subsequently measured at amortised cost using the effective interest method and, if included in a fair value hedge relationship, are re-valued to reflect the fair value movements on the associated hedged risk. The resulting amortisation of fair value movements, on de-designation of the hedge, is recognised in the income statement. What’s our capital management policy? The objective of our capital management policy is to target an overall level of debt consistent with our credit rating target while investing in the business, supporting the pension scheme and meeting our distribution policy. In order to meet this objective, we may issue or repay debt, issue new shares, repurchase shares, or adjust the amount of dividends paid to shareholders. We manage the capital structure and make adjustments to it in the light of changes in economic conditions and the risk characteristics of the group. The Board regularly reviews the capital structure. No changes were made to these objectives and processes during 2019/20 . For details of share issues and repurchases in the year see note 21 . |
Significant accounting policies that apply to derivatives and hedge accounting | Significant accounting policies that apply to derivatives and hedge accounting All of our derivative financial instruments are held at fair value on the balance sheet. Derivatives designated in a cash flow hedge The group designates certain derivatives as cash flow hedges. Where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the hedge. To qualify for hedge accounting, hedge documentation must be prepared at inception, the hedge must be in line with BT’s risk management strategy and there must be an economic relationship based on the currency, amount and timing of the respective cash flows of the hedging instrument and hedged item. This is assessed at inception and in subsequent periods in which the hedge remains in operation. Hedge accounting is discontinued when it is no longer in line with BT’s risk management strategy or if it no longer qualifies for hedge accounting. When a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a highly probable transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in equity, in the cash flow reserve. For cash flow hedges of recognised assets or liabilities, the associated cumulative gain or loss is removed from equity and recognised in the same line of the income statement and in the same period or periods that the hedged transaction affects the income statement. Any ineffectiveness arising on a cash flow hedge is recognised immediately in the income statement. This includes any ineffectiveness as a result of changes in our hedged forecast cash flows as a result of Covid-19. Other derivatives Our policy is not to use derivatives for trading purposes. However, due to the complex nature of hedge accounting, some derivatives may not qualify for hedge accounting, or may be specifically not designated as a hedge because natural offset is more appropriate. These derivatives are classified as fair value through profit and loss and are recognised at fair value. Any direct transaction costs are recognised immediately in the income statement. Gains and losses on re-measurement are recognised in the income statement in the line that most appropriately reflects the nature of the item or transaction to which they relate. Where the fair value of a derivative contract at initial recognition is not supported by observable market data and differs from the transaction price, a day one gain or loss will arise which is not recognised in the income statement. Such gains and losses are deferred and amortised to the income statement based on the remaining contractual term and as observable market data becomes available. The fair values of outstanding swaps and foreign exchange contracts are estimated using discounted cash flow models and market rates of interest and foreign exchange at the balance sheet date. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Basis Of Preparation [Abstract] | |
Reconciliation of Operating Lease Commitments Disclosed at 31 March 2019 to Lease Liabilities Recognised at 1 April 2019 | The reconciliation of operating lease commitments disclosed at 31 March 2019 to lease liabilities recognised at 1 April 2019 is as follows: £m Operating lease commitments disclosed as at 31 March 2019 a 6,619 Arrangements not considered to be a lease under IAS 17 & IFRIC 4 74 Adjustments as a result of different treatment of extension & termination options 437 Short-term & low value leases recognised as an expense on a straight-line basis (8 ) Effect of discounting under the group's incremental borrowing rate (901 ) Other b (158 ) Additional lease liabilities recognised as a result of IFRS 16 6,063 Existing finance leases 206 Total lease liabilities recognised as at 1 April 2019 6,269 a BT Group plc Annual Report 2019, note 30 (page 171). b Other primarily represents leases between BT Group plc and MBNL, of which BT’s share is eliminated for consolidation purposes, but which had been shown gross in operating lease commitments disclosed as at 31 March 2019. |
Summary of Impact on the Balance Sheet of the Transition to IFRS 16 | Set out below is the impact on the balance sheet of the transition to IFRS 16. At 31 March 2019 £m IFRS 16 opening balance adjustment £m At 1 April 2019 £m Non-current assets Right-of-use assets — 5,155 5,155 Intangible assets a 14,385 (70 ) 14,315 Property, plant and equipment a 17,835 (34 ) 17,801 Deferred tax assets b 1,347 2 1,349 Other non-current assets 2,276 — 2,276 35,843 5,053 40,896 Current assets Trade and other receivables c 3,222 (50 ) 3,172 Other current assets 7,222 — 7,222 10,444 (50 ) 10,394 Current liabilities Lease liabilities — 725 725 Loans and other borrowings a 2,100 (16 ) 2,084 Trade and other payables d 5,790 91 5,881 Contract liabilities d 1,225 (34 ) 1,191 Provisions f 424 (17 ) 407 Other current liabilities 63 — 63 9,602 749 10,351 Total assets less current liabilities 36,685 4,254 40,939 Non-current liabilities Lease liabilities — 5,544 5,544 Loans and other borrowings a 14,776 (190 ) 14,586 Contract liabilities d 200 (12 ) 188 Other payables d,e 1,479 (825 ) 654 Provisions f 582 (192 ) 390 Other non-current liabilities 9,481 — 9,481 26,518 4,325 30,843 Equity Retained earnings g 3,919 (71 ) 3,848 All other reserves and equity 6,248 — 6,248 Total equity 10,167 (71 ) 10,096 36,685 4,254 40,939 a Finance lease assets and liabilities reclassified to right-of-use asset and lease liabilities respectively. b Deferred tax recognised on retained earnings adjustment for deferral of connection fees associated with ‘last mile’ arrangements. c Trade and other receivables adjusted to reclassify lease prepayments to the corresponding right-of-use assets. d Contract liabilities recognised in respect of 'last mile' arrangements reclassified to trade and other payables. e Other payables adjusted to reclassify accruals for rent inflation associated with operating leases to the corresponding right-of-use assets. f Onerous lease provisions reclassified to the corresponding right-of-use assets or released to retained earnings. g Retained earnings adjusted to recognise deferred income in respect of connection fees received for ‘last mile’ arrangements, and to reflect impairment of right-of-use assets and release of corresponding onerous lease provisions. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Summary of Segment Revenue and Profit | Year ended 31 March 2020 (IFRS 15 & 16) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Segment revenue 10,388 6,093 4,361 5,112 1 25,955 Internal revenue (102 ) (276 ) — (2,753 ) — (3,131 ) Revenue from external customers a 10,286 5,817 4,361 2,359 1 22,824 Adjusted EBITDA b 2,426 1,965 634 2,858 24 7,907 Depreciation and amortisation a (1,278 ) (719 ) (479 ) (1,712 ) (108 ) (4,296 ) Operating profit (loss) a 1,148 1,246 155 1,146 (84 ) 3,611 Specific items (note 9) (328 ) Operating profit 3,283 Net finance expense c (897 ) Share of post tax profit (loss) of associates and joint ventures (33 ) Profit before tax 2,353 Year ended 31 March 2019 (restated d ) (IFRS 15 & IAS 17) Consumer d £m Enterprise d £m Global d £m Openreach d £m Other d £m Total £m Segment revenue 10,591 6,396 4,735 5,075 3 26,800 Internal revenue (107 ) (359 ) — (2,875 ) — (3,341 ) Revenue from external customers a 10,484 6,037 4,735 2,200 3 23,459 Adjusted EBITDA b 2,331 1,910 444 2,744 (37 ) 7,392 Depreciation and amortisation a (1,030 ) (690 ) (378 ) (1,398 ) (50 ) (3,546 ) Operating profit (loss) a 1,301 1,220 66 1,346 (87 ) 3,846 Specific items (note 9) (425 ) Operating profit 3,421 Net finance expense c (756 ) Share of post tax profit (loss) of associates and joint ventures 1 Profit before tax 2,666 Year ended 31 March 2018 (restated d ) (IAS 18 & IAS 17) Consumer d £m Enterprise d £m Global d £m Openreach d £m Other d £m Total £m Segment revenue 10,296 6,711 5,013 5,278 8 27,306 Internal revenue (103 ) (441 ) — (3,016 ) — (3,560 ) Revenue from external customers a 10,193 6,270 5,013 2,262 8 23,746 Adjusted EBITDA b 2,205 1,995 374 2,933 (2 ) 7,505 Depreciation and amortisation a (1,013 ) (676 ) (432 ) (1,330 ) (63 ) (3,514 ) Operating profit (loss) a 1,192 1,319 (58 ) 1,603 (65 ) 3,991 Specific items (note 9) (610 ) Operating profit 3,381 Net finance expense c (764 ) Share of post tax profit (loss) of associates and joint ventures (1 ) Profit before tax 2,616 a Before specific items. b Adjusted EBITDA, defined as EBITDA before specific items, net non-interest related finance expense, and share of profits or losses of associates and joint ventures. c Net finance expense includes specific item expense of £140m ( 2018/19 : £139m , 2017/18 : £218m ). See note 9 . d 2018 and 2019 comparatives have been restated to reflect the change in allocation of group overhead costs and transfer of the Emergency Services Network contract from Consumer to Enterprise on 1 April 2019; and 2018 comparatives have also been restated for the transfer of our Northern Ireland Networks business from Enterprise to Openreach and reclassification of internal revenue generated by our Ventures business from 1 October 2018. See note 1. |
Summary of Results of Internal Revenue and Costs | Internal revenue and costs Internal cost recorded by Year ended 31 March 2020 Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Internal revenue recorded by Consumer — 63 21 — 18 102 Enterprise 64 — 54 86 72 276 Global — — — — — — Openreach 846 379 97 — 1,431 2,753 Total 910 442 172 86 1,521 3,131 Internal cost recorded by Year ended 31 March 2019 Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Internal revenue recorded by Consumer — 69 20 — 18 107 Enterprise 63 — 51 177 68 359 Global — — — — — — Openreach 920 401 112 — 1,442 2,875 Total 983 470 183 177 1,528 3,341 Internal cost recorded by Year ended 31 March 2018 (restated a ) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Internal revenue recorded by Consumer — 65 20 — 18 103 Enterprise a 130 — 51 173 87 441 Global — — — — — — Openreach a 896 480 125 — 1,515 3,016 Total 1,026 545 196 173 1,620 3,560 a 2018 comparatives have been restated to reflect the transfer of our Northern Ireland Networks business from Enterprise to Openreach and reclassification of internal revenue generated by our Ventures business from 1 October 2018. See note 1. |
Summary of Capital Expenditure | Capital expenditure Year ended 31 March 2020 Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Intangible assets a 291 218 123 103 55 790 Property, plant and equipment b 657 283 100 2,005 125 3,170 Capital expenditure 948 501 223 2,108 180 3,960 Year ended 31 March 2019 (restated c ) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Intangible assets a,c 272 184 93 82 49 680 Property, plant and equipment b,c 672 367 152 1,999 93 3,283 Capital expenditure 944 551 245 2,081 142 3,963 Acquisition of spectrum a — — — — 304 304 Capital expenditure including spectrum 944 551 245 2,081 446 4,267 Year ended 31 March 2018 (restated c ) Consumer £m Enterprise £m Global £m Openreach £m Other £m Total £m Intangible assets a,c 224 192 92 70 64 642 Property, plant and equipment b,c 590 405 186 1,629 70 2,880 Capital expenditure 814 597 278 1,699 134 3,522 a Additions to intangible assets as presented in note 13 . b Additions to property, plant and equipment as presented in note 14 , inclusive of movement on engineering stores. c 2018 and 2019 comparatives have been restated to reflect the transfer of the Emergency Services Network contract from Consumer to Enterprise on 1 April 2019; and 2018 comparatives have also been restated for the transfer of our Northern Ireland Networks business from Enterprise to Openreach from 1 October 2018. See note 1. |
Summary of Geographic Information by Revenue from External Customers and Non-Current Assets | Revenue from external customers Year ended 31 March 2020 2019 2018 UK 19,401 19,683 19,687 Europe, Middle East and Africa, excluding the UK 1,904 2,280 2,489 Americas 924 936 996 Asia Pacific 595 560 574 Revenue a 22,824 23,459 23,746 a Before specific items. Non-current assets At 31 March 2020 2019 (restated b ) £m 2018 UK 35,597 30,295 28,835 Europe, Middle East and Africa, excluding the UK 2,347 2,218 2,527 Americas 384 338 331 Asia Pacific 198 110 109 Non-current assets a 38,526 32,961 31,802 a Comprising the following balances presented in the group balance sheet: intangible assets; property, plant and equipment; right-of-use assets; investments in associates and joint ventures; trade and other receivables and contract assets. b 2019 comparatives restated to include contract assets totalling £249m . |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customers [Abstract] | |
Summary of Disaggregation of Revenue From Contracts With Customers | The following table disaggregates revenue by our major service lines and by reportable segment. The 2018 comparatives have not been restated for the adoption of IFRS15 in 2019 and are presented under IAS 18. Consumer Enterprise Global Openreach Other Total Year ended 31 March 2020 (IFRS 15) £m £m £m £m £m £m ICT and managed networks — 2,207 2,199 — — 4,406 Fixed access subscriptions 4,443 2,007 352 2,293 — 9,095 Mobile subscriptions 3,807 1,199 84 — — 5,090 Equipment and other services 2,036 404 1,726 66 1 4,233 Revenue before specific items 10,286 5,817 4,361 2,359 1 22,824 Specific items (note 9) 81 Revenue 22,905 Consumer a Enterprise a Global Openreach Other Total Year ended 31 March 2019 (restated) (IFRS 15) £m £m £m £m £m £m ICT and managed networks — 2,236 2,613 — — 4,849 Fixed access subscriptions 4,564 2,181 362 2,135 — 9,242 Mobile subscriptions 3,866 1,277 130 — — 5,273 Equipment and other services 2,054 343 1,630 65 3 4,095 Revenue before specific items 10,484 6,037 4,735 2,200 3 23,459 Specific items (note 9) (31 ) Revenue 23,428 a On 1 April 2019 we transferred the Emergency Services Network contract from Consumer to Enterprise which resulted in a decrease in revenue in Consumer; and a corresponding increase in Enterprise. 2019 comparatives have been restated to reflect this transfer, see note 1. Year ended 31 March 2018 (IAS 18) £m ICT and managed networks 5,530 Broadband and TV 4,655 Mobile 6,451 Calls, lines and connections 5,126 Transit 265 Other products and services 1,719 Revenue before specific items 23,746 Specific items (note 9) (23 ) Revenue 23,723 |
Summary of Contract Assets and Liabilities Recognised | Contract assets and liabilities recognised are as follows: Year ended 31 March 2020 2019 £m £m Contract assets Current 1,442 1,353 Non-current 279 249 1,721 1,602 Contract liabilities Current a 972 1,225 Non-current a 179 200 1,151 1,425 a Contract liabilities recognised at 31 March 2019 include balances relating to Openreach, the majority of which are now presented as trade and other payables following adoption of IFRS 16 on 1 April 2019, see note 1 . |
Operating costs (Tables)
Operating costs (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Operating Costs [Abstract] | |
Summary of Operating Costs | Notes 2020 2019 2018 Year ended 31 March £m £m £m Operating costs by nature Staff costs: Wages and salaries 4,203 4,264 4,229 Social security costs 426 440 461 Other pension costs 20 626 611 624 Share-based payment expense 22 72 67 84 Total staff costs 5,327 5,382 5,398 Own work capitalised (903 ) (834 ) (798 ) Net staff costs 4,424 4,548 4,600 Net indirect labour costs a 354 267 315 Net labour costs 4,778 4,815 4,915 Product costs and sales commissions f 4,440 4,464 4,429 Payments to telecommunications operators 1,749 2,059 2,306 Property and energy costs 1,004 1,325 1,285 Network operating and IT costs 898 1,026 963 TV programme rights charges 870 841 763 Provision and installation f 604 624 657 Marketing and sales f 303 322 317 Other operating costs f 494 831 830 Other operating income (223 ) (240 ) (224 ) Depreciation of property, plant and equipment: Owned assets 14 2,452 2,390 2,381 Right-of-use assets d,e 15 671 Held under finance leases d — 2 10 Amortisation of intangible assets 13 1,173 1,154 1,123 Total operating costs before specific items 19,213 19,613 19,755 Specific items 9 409 394 587 Total operating costs 19,622 20,007 20,342 Operating costs before specific items include the following: Leaver costs b 15 17 50 Research and development expenditure c 662 643 632 Operating lease charges d — 801 732 Foreign currency gains (12 ) (11 ) — Inventories recognised as an expense 2,447 2,388 2,588 Government grants — (3 ) (3 ) a Net of capitalised indirect labour costs of £675m ( 2018/19 : £672m , 2017/18 : £612m ). b Leaver costs are included within wages and salaries, except for leaver costs of £197m ( 2018/19 : £257m , 2017/18 : £168m ) associated with restructuring costs, which have been recorded as specific items. c Research and development expenditure reported in the income statement includes amortisation of £599m ( 2018/19 : £581m , 2017/18 : £573m ) in respect of capitalised development costs and operating expenses of £63m ( 2018/19 : £62m , 2017/18 : £59m ). In addition, the group capitalised software development costs of £476m ( 2018/19 : £472m , 2017/18 : £450m ). d Depreciation on right-of-use assets recognised following adoption of IFRS 16 on 1 April 2019, see note 1 . Depreciation recognised in the current year includes depreciation on assets held under finance lease in previous years, which have been reclassified as right-of-use assets on transition to IFRS 16. e Excludes £22m reversal of impairment on right-of-use assets presented as a specific item which relate to assets impaired on adoption of IFRS16. f Included within 'other operating costs' in 2017/18 were costs relating to product costs and commissions; provision and installation; and marketing and sales. These are presented separately in 2018/19 and 2019/20. The ‘other operating costs’ comparative for 2017/18 has been re-presented for consistency, consistent with the 2019 Annual Report. |
Summary of Compensation of Key Management Personnel | Compensation of key management personnel is shown in the table below: 2020 2019 2018 Year ended 31 March £m £m £m Short-term employee benefits 9.6 13.5 11.8 Post employment benefits a 1.0 1.2 1.3 Share-based payments 7.1 5.0 6.2 Termination benefits — 0.6 2.2 17.7 20.3 21.5 a Post employment benefits comprise cash pension allowances paid to the chief executive and chief financial officer. The group does not contribute to defined contribution or defined benefit pension schemes on behalf of key management personnel. |
Employees (Tables)
Employees (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Employees [Abstract] | |
Summary of Number of Employees in the Group | 2020 2019 2018 Number of employees in the group a Year end 000 Average 000 Year end 000 Average 000 Year end 000 Average 000 UK 82.6 82.8 84.3 83.4 82.2 82.5 Non-UK 22.7 22.6 22.4 23.1 23.6 23.7 Total employees 105.3 105.4 106.7 106.5 105.8 106.2 2020 2019 2018 Number of employees in the group a Year end 000 Average 000 Year end 000 Average 000 Year end 000 Average 000 Consumer 19.6 19.7 19.7 19.0 18.2 18.0 Enterprise b 12.2 12.8 13.4 13.8 13.2 13.5 Global 16.3 16.5 16.6 16.8 16.9 17.3 Openreach b 35.0 34.1 33.2 31.9 31.2 31.1 Other 22.2 22.3 23.8 25.0 26.3 26.3 Total employees 105.3 105.4 106.7 106.5 105.8 106.2 a These reflect the full-time equivalent of full and part-time employees. b The 2018 comparative was restated in the prior year to reflect the change in segments and the transfer of Northern Ireland Networks, as described in note 1. |
Audit, audit related and othe_2
Audit, audit related and other non-audit services (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Auditors Remuneration [Abstract] | |
Summary of Fees Paid or Payable to Company's Auditors | The following fees were paid or are payable to the company’s auditors, KPMG LLP and other firms in the KPMG network, for the years ended 31 March 2020 and 2019 . Figures in the table below for the year ended 31 March 2018 are in respect of fees paid to the company’s previous auditors, PricewaterhouseCoopers LLP. 2020 2019 2018 Year ended 31 March £000 £000 £000 Fees payable to the company’s auditors and its associates for: Audit services a The audit of the parent company and the consolidated financial statements 10,546 8,165 5,418 The audit of the company’s subsidiaries 6,315 6,061 5,877 16,861 14,226 11,295 Audit related assurance services b 2,416 2,236 1,771 Other non-audit services All other assurance services c 228 748 211 All other services d 247 210 592 475 958 803 Total services 19,752 17,420 13,869 a Services in relation to the audit of the parent company and the consolidated financial statements, including fees for reports under section 404 of the Sarbanes-Oxley Act. This also includes fees payable for the statutory audits of the financial statements of subsidiary companies. This excludes amounts for the audit of BT Group Employee Share Ownership Trust and Ilford Trustees (Jersey) Limited amounting to £20,000 (2018/19: £32,000 ). b Services in relation to other statutory filings or engagements that are required by law or regulation to be carried out by an appointed auditor. This includes fees for the review of interim results, the accrued fee for the audit of the group’s regulatory financial statements and fees for reporting associated with the group’s US debt shelf registration before de-registration from the New York Stock Exchange in November 2019. c All other assurance services in 2018/19 include fees payable to KPMG LLP for agreed upon procedures performed on the estimated impact of the new IFRS 15 revenue accounting standard, which took effect from 1 April 2018, for the 2017/18 PricewaterhouseCoopers LLP audit. d Fees payable for all non-audit services not included above, principally comprising other advisory services. This does not include fees for BT's I4 forum membership, which is facilitated by KPMG but not considered to be a service. |
Summary of Total Fees Received by Company's Auditors from the BT Pension Scheme | In the year ended 31 March 2020 KPMG LLP received total fees from the BT Pension Scheme of £0.8m ( 2018/19 : £1.1m , PricewaterhouseCoopers LLP: 2017/18 : £2.1m ) in respect of the following services: 2020 2019 2018 Year ended 31 March £000 £000 £000 Audit of financial statements of associates 819 1,005 345 Audit-related assurance services 9 53 — Taxation compliance services — — 153 Taxation advisory services — — 1,074 Other non-audit services 2 62 565 Total services 830 1,120 2,137 |
Specific items (Tables)
Specific items (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Specific Items [Abstract] | |
Summary of Specific Items | 2020 2019 2018 Year ended 31 March £m £m £m Revenue Retrospective regulatory matters (81 ) 31 23 (81 ) 31 23 Operating costs Restructuring charges 322 386 287 Divestment-related items 199 5 (1 ) Covid-19 95 — — Property rationalisation (131 ) 36 28 Spectrum annual licence fee refund (82 ) — — Retrospective regulatory matters 9 (4 ) 26 Italian business investigation 2 (55 ) 22 Provision for claims (5 ) — — Pension equalisation costs — 26 — EE acquisition warranty claims — — 225 409 394 587 Operating loss 328 425 610 Net finance expense Interest expense on retirement benefit obligation 145 139 218 Interest on spectrum annual license fee refund (5 ) — — 140 139 218 Associates and joint ventures 39 — — Net specific items charge before tax 507 564 828 Taxation Tax credit on specific items above (73 ) (112 ) (87 ) Tax charge on re-measurement of deferred tax 156 — — 83 (112 ) (87 ) Net specific items charge after tax 590 452 741 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Taxation [Abstract] | |
Analysis of Our Taxation Expenses | Analysis of our taxation expense for the year 2020 2019 2018 Year ended 31 March £m £m £m United Kingdom Corporation tax at 19% (2018/19: 19%, 2017/18: 19%) (495 ) (434 ) (578 ) Adjustments in respect of earlier years 41 (9 ) 37 Non-UK taxation Current (58 ) (74 ) (66 ) Adjustments in respect of earlier years (1 ) 15 23 Total current tax expense (513 ) (502 ) (584 ) Deferred taxation Origination and reversal of temporary differences 55 (20 ) 46 Adjustments in respect of earlier years — 2 (57 ) Impact of change in UK corporation tax rate to 19% (2018/19: 17%, 2017/18: 17%) (156 ) — — Remeasurement of temporary differences (5 ) 13 11 Total deferred taxation (expense) credit (106 ) (5 ) — Total taxation expense (619 ) (507 ) (584 ) |
Summary of Factors Affecting Our Taxation Expense for the Year | The taxation expense on the profit for the year differs from the amount computed by applying the UK corporation tax rate to the profit before taxation as a result of the following factors: 2020 2019 2018 Year ended 31 March £m £m £m Profit before taxation 2,353 2,666 2,616 Expected taxation expense at UK rate of 19% (2018/19: 19%, 2017/18: 19%) (447 ) (506 ) (497 ) Effects of: (Higher) lower taxes on non-UK profits (5 ) (7 ) (8 ) Net permanent differences between tax and accounting a (40 ) (36 ) (100 ) Adjustments in respect of earlier years b 40 8 3 Prior year non-UK losses used against current year profits 11 21 16 Non-UK losses not recognised c (17 ) — (9 ) Other deferred tax assets not recognised — — — Lower taxes on profit on disposal of business — — — Re-measurement of deferred tax balances (161 ) 13 11 Other non-recurring items — — — Total taxation expense (619 ) (507 ) (584 ) Exclude specific items (note 9) 83 (112 ) (87 ) Total taxation expense before specific items (536 ) (619 ) (671 ) a Includes income that is not taxable or UK income taxable at a different rate, and expenses for which no tax relief is received. Examples include some types of depreciation and amortisation and the benefit of R&D tax incentives. b Reflects the differences between initial accounting estimates and tax returns submitted to tax authorities, including the release and establishment of provisions for uncertain tax positions. c Reflects losses made in countries where it has not been considered appropriate to recognise a deferred tax asset, as future taxable profits are not probable. |
Summary of Tax Components of Other Comprehensive Income | Tax components of other comprehensive income 2020 2019 2018 Year ended 31 March £m £m £m Tax on items that will not be reclassified to the income statement Pension remeasurements (808 ) 384 (263 ) Tax on items that have been or may be reclassified subsequently to the income statement Exchange differences on translation of foreign operations (4 ) (4 ) (9 ) Fair value movements on cash flow hedges — — — – net fair value gains or losses (80 ) (37 ) 57 – recognised in income and expense — — (47 ) (892 ) 343 (262 ) Current tax credit a 267 395 203 Deferred tax (expense) credit (1,159 ) (52 ) (465 ) (892 ) 343 (262 ) a Includes £271m ( 2018/19 : £391m , 2017/18 : £212m ) relating to cash contributions made to reduce retirement benefit obligations. |
Summary of Tax (Expense) Credit Recognised Directly in Equity | Tax (expense) credit recognised directly in equity 2020 2019 2018 Year ended 31 March £m £m £m Tax (expense) credit relating to share-based payments — — (2 ) |
Summary of Deferred Taxation | Deferred taxation Fixed asset temporary differences Retirement benefit obligations a Share- based payments Tax losses Other Jurisdictional offset Total £m £m £m £m £m £m £m At 1 April 2018 1,460 (1,166 ) (7 ) (183 ) (90 ) — 14 Expense (credit) recognised in the income statement (60 ) (59 ) 1 114 (1 ) — (5 ) Expense (credit) recognised in other comprehensive income — 15 — — 37 — 52 Expense (credit) recognised in equity — — (1 ) — — — (1 ) Exchange differences — — 1 (1 ) — — — At 1 April 2019 1,400 (1,210 ) (6 ) (70 ) (54 ) — 60 Non-current Deferred tax asset (27 ) (1,210 ) (6 ) (70 ) (54 ) 20 (1,347 ) Deferred tax liability 1,427 — — — — (20 ) 1,407 Tax on IFRS 16 opening balance adjustment (2 ) — — — — — (2 ) Deferred tax asset (29 ) (1,210 ) (6 ) (70 ) (54 ) 20 (1,349 ) Deferred tax liability 1,427 — — — — (20 ) 1,407 At 1 April 2019 1,398 (1,210 ) (6 ) (70 ) (54 ) — 58 Expense (credit) recognised in the income statement 191 (46 ) (1 ) 2 (40 ) — 106 Expense (credit) recognised in other comprehensive income — 1,079 — — 80 — 1,159 Exchange difference 1 1 — 2 (1 ) — 3 Transfer to held for sale (note 23) — — — — (4 ) — (4 ) Transfer from current tax — — — — (14 ) — (14 ) At 31 March 2020 1,590 (176 ) (7 ) (66 ) (33 ) — 1,308 Non-current Deferred tax asset (17 ) (176 ) (7 ) (66 ) (33 ) (1 ) (300 ) Deferred tax liability 1,607 — — — 1 1,608 At 31 March 2020 1,590 (176 ) (7 ) (66 ) (33 ) — 1,308 a Includes a deferred tax asset of £1m ( 2018/19 : £2m , 2017/18 : £2m ) arising on contributions payable to defined contribution pension plans. |
Summary of Restricted Loss | A summary of expiry dates for losses in respect of which restrictions apply is set out below: At 31 March 2020 £m Expiry Restricted losses Europe 1 2019-2038 Americas 256 2019-2038 Other 3 2019-2038 Total restricted losses 260 Unrestricted operating losses 3,827 No expiry Other temporary differences 98 No expiry Total 4,185 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Earnings per share [abstract] | |
Schedule of Calculation of the Total Diluted Number of Shares | Year ended 31 March 2020 2019 2018 Basic weighted average number of shares (millions) 9,885 9,912 9,911 Dilutive shares from share options (millions) — 6 2 Dilutive shares from executive share awards (millions) 80 57 48 Diluted weighted average number of shares (millions) 9,965 9,975 9,961 Basic earnings per share 17.5 p 21.8 p 20.5 p Diluted earnings per share 17.4 p 21.6 p 20.4 p |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Dividends [Abstract] | |
Summary of Final and Interim Dividend Per Share and Amount | 2020 2019 2018 Year ended 31 March pence per share £m pence per share £m pence per share £m Final dividend in respect of the prior year 10.78 1,064 10.55 1,045 10.55 1,044 Interim dividend in respect of the current year 4.62 457 4.62 458 4.85 480 15.40 1,521 15.17 1,503 15.40 1,524 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Intangible Assets [Abstract] | |
Summary of Estimated Economic Lives of Intangible Assets | Estimated useful economic lives The estimated useful economic lives assigned to the principal categories of intangible assets are as follows: – Computer software 2 to 10 years – Telecommunications licences 2 to 20 years – Customer relationships and brands 1 to 15 years |
Summary of Intangible Assets | Goodwill Customer relationships and brands Telecoms licences and other Internally developed software a Purchased software Total £m £m £m £m £m £m Cost At 1 April 2018 7,945 3,410 2,951 4,822 1,574 20,702 Additions — — 304 520 160 984 Disposals and adjustments b (2 ) — (3 ) (945 ) (141 ) (1,091 ) Transfers — — 4 120 (80 ) 44 Exchange differences 63 7 (4 ) 1 (8 ) 59 At 31 March 2019 8,006 3,417 3,252 4,518 1,505 20,698 Reclassification of assets held under finance leases c — — (185 ) — — (185 ) At 1 April 2019 8,006 3,417 3,067 4,518 1,505 20,513 Additions — — — 598 192 790 Disposals and adjustments b (30 ) (28 ) (34 ) (765 ) (541 ) (1,398 ) Transfers — — (2 ) 14 (3 ) 9 Exchange differences 52 8 1 2 10 73 Transfer to assets held for sale d (83 ) — — (13 ) (45 ) (141 ) At 31 March 2020 7,945 3,397 3,032 4,354 1,118 19,846 Accumulated amortisation At 1 April 2018 — 1,191 421 3,680 963 6,255 Charge for the year — 377 142 525 110 1,154 Disposals and adjustments b — — (3 ) (941 ) (147 ) (1,091 ) Transfers — — 3 (43 ) 43 3 Exchange differences — 3 (3 ) — (8 ) (8 ) At 31 March 2019 — 1,571 560 3,221 961 6,313 Reclassification of assets held under finance leases c — — (115 ) — — (115 ) At 1 April 2019 — 1,571 445 3,221 961 6,198 Charge for the year — 373 177 538 85 1,173 Disposals and adjustments b — (22 ) (49 ) (786 ) (529 ) (1,386 ) Transfers — — — (15 ) 15 — Exchange differences — 8 1 1 9 19 Transfer to assets held for sale d — — — (8 ) (39 ) (47 ) At 31 March 2020 — 1,930 574 2,951 502 5,957 Carrying amount At 31 March 2020 7,945 1,467 2,458 1,403 616 13,889 At 31 March 2019 8,006 1,846 2,692 1,297 544 14,385 a Includes a carrying amount of £538m (2018/19: £668m ) in respect of assets in course of construction, which are not yet amortised. b Fully depreciated assets in the group’s fixed asset registers were reviewed during the year, as part of the group’s annual asset verification exercise, and certain assets that were no longer in use have been written off, reducing cost and accumulated depreciation by £1.1b n ( 2018/19 : £1.0b n). c On adoption of IFRS 16 on 1 April 2019, assets held under finance leases were reclassified as right-of-use assets. See note 1 . d Assets transferred to held for sale during 2019/20 relate to our domestic operations in France, our domestic operations in Spain and selected domestic operations and infrastructure in 16 countries in Latin America. On reclassification to held for sale, goodwill associated with the France and Latin America disposals was impaired by £58m , and other intangible assets associated with these disposals were impaired by £1m . See note 23 . We tested our goodwill for impairment as at 31 March 2020. The carrying value of goodwill and the key assumptions used in performing the annual impairment assessment and sensitivities are disclosed below. Cost Legacy BT Consumer £m Legacy EE £m Enterprise £m Business and Public Sector Wholesale and Ventures Global £m Total £m At 1 April 2018 1,183 2,768 — 2,562 942 490 7,945 Transfer — — 3,504 (2,562 ) (942 ) — — Exchange differences — — 5 — — 58 63 Acquisitions and disposals — — — — — (2 ) (2 ) At 31 March 2019 1,183 2,768 3,509 — — 546 8,006 Exchange differences — — 4 — — 48 52 Acquisitions and disposals — — (30 ) — — — (30 ) Transfer to assets held for sale — — — — — (83 ) (83 ) At 31 March 2020 1,183 2,768 3,483 — — 511 7,945 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of Estimated Useful Lives Assigned to Principal Categories of Assets | Estimated useful economic lives The estimated useful lives assigned to principal categories of assets are as follows: Land and buildings – Freehold buildings 14 to 50 years – Short-term leasehold improvements Shorter of 10 years or lease term – Leasehold land and buildings Unexpired portion of lease or 40 years, whichever is the shorter Network infrastructure Transmission equipment – Duct 40 years – Cable 3 to 25 years – Fibre 5 to 20 years Exchange equipment 2 to 13 years Other network equipment 2 to 20 years Other assets – Motor vehicles 2 to 9 years – Computers and office equipment 3 to 7 years |
Summary of the Carrying Values of Software, Property, Plant and Equipment | Land and buildings a £m Network infrastructure £m Other b £m Assets in course of construction £m Total £m Cost At 31 March 2018 1,262 50,783 1,914 1,118 55,077 Additions c 12 97 119 3,034 3,262 Transfers 13 2,988 18 (3,063 ) (44 ) Disposals and adjustments (restated) d 4 (1,943 ) (333 ) 102 (2,170 ) Transfer to assets held for sale d (182 ) — — — (182 ) Exchange differences (2 ) (32 ) 4 — (30 ) At 31 March 2019 1,107 51,893 1,722 1,191 55,913 Reclassification of assets held under finance leases a (81 ) — — — (81 ) At 1 April 2019 1,026 51,893 1,722 1,191 55,832 Additions c 7 83 69 2,978 3,137 Transfers 25 3,244 17 (3,295 ) (9 ) Disposals and adjustments d (55 ) (1,132 ) (130 ) 42 (1,275 ) Transfer to assets held for sale e (69 ) (255 ) (24 ) — (348 ) Exchange differences 11 60 8 — 79 At 31 March 2020 945 53,893 1,662 916 57,416 Accumulated depreciation At 31 March 2018 773 35,790 1,558 — 38,121 Charge for the year 51 2,236 105 — 2,392 Transfers 1 (4 ) — — (3 ) Disposals and adjustments (restated) d (11 ) (1,940 ) (296 ) — (2,247 ) Transfer to assets held for sale d (93 ) — — — (93 ) Exchange differences (1 ) (30 ) 4 — (27 ) At 31 March 2019 720 36,052 1,371 — 38,143 Reclassification of assets held under finance leases a (47 ) — — — (47 ) At 1 April 2019 673 36,052 1,371 — 38,096 Charge for the year 49 2,318 85 — 2,452 Transfers 1 — (1 ) — — Disposals and adjustments d (68 ) (1,128 ) (91 ) — (1,287 ) Transfer to assets held for sale e (55 ) (216 ) (22 ) — (293 ) Exchange differences 10 54 8 — 72 At 31 March 2020 610 37,080 1,350 — 39,040 Carrying amount At 31 March 2020 335 16,813 312 916 18,376 Engineering stores — — — 98 98 Total at 31 March 2020 335 16,813 312 1,014 18,474 At 31 March 2019 387 15,841 351 1,191 17,770 Engineering stores — — — 65 65 Total at 31 March 2019 387 15,841 351 1,256 17,835 a The carrying amount of the land and buildings class of asset recognised at 31 March 2019 included £34m in respect of assets held under finance leases. The depreciation expense on those assets in 2018/19 was £2m . On adoption of IFRS 16 on 1 April 2019 these assets were reclassified to right-of-use assets. See note 1 b Other mainly comprises motor vehicles, computers and fixtures and fittings. c Net of grant deferral of £98m ( 2018/19 : £63m ). d Fully depreciated assets in the group’s fixed asset registers were reviewed during the year, as part of the group’s annual asset verification exercise, and certain assets that were no longer in use have been written off, reducing cost and accumulated depreciation by £0.7b n ( 2018/19 : £1.9b n). Disposals and adjustments include adjustments resulting from changes in assumptions used in calculating lease-end obligations where the corresponding asset is capitalised. The 2018/19 comparative has been re-presented to split out the reclassification of the carrying amount of BT Centre property to 'transfer to assets held for sale' ( £89m ) presented within 'disposals and adjustments' in the prior period. e Transfers to assets held for sale during 2019/20 relate to our domestic operations in France, our domestic operations in Spain and selected domestic operations and infrastructure in 16 countries in Latin America. On reclassification to held for sale, assets associated with the France and Latin America disposals were impaired by £18m . See note 23 . |
Summary of Property Plant and Equipment | At 31 March 2020 2019 £m £m The carrying amount of land and buildings, including leasehold improvements, comprised: Freehold 105 158 Leasehold 230 229 Total land and buildings 335 387 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of leases [Abstract] | |
Disclosure of Right-of-use Assets | Land and buildings Network infrastructure Other a Total £m £m £m £m At 1 April 2019 4,628 189 338 5,155 Additions b 942 59 475 1,476 Depreciation charge for the year (513 ) (37 ) (99 ) (649 ) Other movements c (203 ) (32 ) (356 ) (591 ) At 31 March 2020 4,854 179 358 5,391 a Other mainly comprises motor vehicles. b Additions comprise increases to right-of-use assets as a result of entering into new leases, and upwards remeasurement of existing leases arising from lease extensions or reassessments and increases to lease payments. c Other movements relate to terminated leases and downwards remeasurements of right-of-use assets arising from reductions or reassessments of lease terms and decreases in lease payments. Other movements in 2019/20 include reclassification of right-of-use assets with a carrying amount of £65m to held-for-sale, see note 23 . On reclassification to held for sale, assets associated with the France and Latin America disposals were impaired by £31m . |
Disclosure of Analysis of Remaining Cash Flows Associated With Operating Leases Receivable | The following table analyses payments to be received across the remaining term of operating lease arrangements where BT is lessor: To be recognised as revenue (note 5) To be recognised as other operating income (note 6) Total At 31 March 2020 £m £m £m Less than one year 310 52 362 One to two years 130 16 146 Two to three years 34 10 44 Three to four years 1 9 10 Four to five years — 7 7 More than five years — 11 11 Total undiscounted lease payments 475 105 580 |
Programme rights (Tables)
Programme rights (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Programme Rights [Abstract] | |
Summary of Programme Rights | Total £m At 1 April 2018 272 Additions 879 Amortisation (841 ) At 1 April 2019 310 Additions 870 Amortisation (870 ) At 31 March 2020 310 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other receivables [abstract] | |
Schedule of Trade and Other Receivables | At 31 March 2020 2019 2018 £m £m £m Current Trade receivables 1,375 1,732 1,741 Prepayments a 607 698 1,103 Accrued income 57 34 777 Deferred contract costs 422 417 — Other receivables 243 341 393 2,704 3,222 4,014 At 31 March 2020 2019 2018 £m £m £m Non-current Other assets b 222 173 317 Deferred contract costs 259 272 — 481 445 317 a 2017/18 includes £325 m in respect of the acquisition of Spectrum. b Other assets comprise prepayments and leasing debtors. Included in prior year comparatives are costs relating to the initial set-up, transition or transformation phase of long-term networked IT services contracts ( 2018/19 : £nil , 2017/18 : £145 m), which are presented within deferred contract costs following adoption of IFRS 15. |
Summary of Trade Receivables After Deducting Allowances for Doubtful Debts | Trade receivables are stated after deducting allowances for doubtful debts, as follows: 2020 2019 2018 £m £m £m At 1 April 299 375 303 Expense 213 95 129 Utilised (189 ) (165 ) (61 ) Exchange differences 6 (6 ) 4 At 31 March 329 299 375 |
Summary of Trade Receivables Past Due and Not Specifically Impaired | Trade receivables are due as follows: Past due and not specifically impaired Not past due Trade receivables specifically impaired net of provision Between 0 and 3 months Between 3 and 6 months Between 6 and 12 months Over 12 months Total At 31 March £m £m £m £m £m £m £m 2020 903 25 308 45 49 45 1,375 2019 1,229 34 371 42 40 16 1,732 2018 1,251 61 293 44 25 67 1,741 |
Schedule of Trade Receivables Not Past Due and Accrued Income | Trade receivables not past due and accrued income are analysed below by customer-facing unit. Trade receivables not past due Accrued income At 31 March 2020 2019 2018 2020 2019 2018 £m £m £m £m £m £m Consumer 353 457 — 1 32 — Enterprise 139 274 — 3 2 — Global 409 498 477 — — 222 Openreach — — 61 51 — 67 BT Consumer — — 157 — — 86 EE — — 206 — — 122 Business and Public Sector — — 253 — — 134 Wholesale and Ventures — — 92 — — 145 Other 2 — 5 2 — 1 Total 903 1,229 1,251 57 34 777 |
Summary of the Movement on Deferred Costs | The following table shows the movement on deferred costs: Deferred connection costs £m Deferred contract acquisition costs - commissions £m Deferred contract acquisition costs - dealer incentives £m Transition and transformation £m Total £m At 1 April 2019 31 86 432 140 689 Additions 10 86 451 21 568 Amortisation (9 ) (75 ) (426 ) (27 ) (537 ) Impairment (1 ) (4 ) (7 ) (21 ) (33 ) Other 1 1 (1 ) (7 ) (6 ) At 31 March 2020 32 94 449 106 681 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Trade and other payables [abstract] | |
Summary of Trade and Other Payables | At 31 March 2020 2019 2018 £m £m £m Current Trade payables 3,889 4,141 3,991 Other taxation and social security 562 564 704 Other payables 498 387 456 Accrued expenses 545 630 492 Deferred income a 300 68 1,525 5,794 5,790 7,168 At 31 March 2020 2019 2018 £m £m £m Non-current Other payables b 18 873 871 Deferred income a 736 606 455 754 1,479 1,326 a Deferred income recognised at 31 March 2020 includes connection fee income recognised on transition to IFRS 16 on 1 April 2019, see note 1. The amount recognised at 31 March 2018 was substantially reclassified to contract liabilities on adoption of IFRS 15 on 1 April 2018. Deferred income includes £94m ( 2018/19 : £51m , 2017/18 : £132m ) current and £525m ( 2018/19 : £586m , 2017/18 : £404m ) non-current liabilities relating to the Building Digital UK programme, for which grants received by the group may be subject to re-investment or repayment depending on the level of take-up. b Other payables recognised in prior years included accruals for rent inflation associated with operating leases. These were reclassified to right-of-use assets on transition to IFRS 16 on 1 April 2019, see note 1 . |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Provisions [abstract] | |
Details of Estimate of the Provisions | Restructuring £m Property £m Network ARO £m Network share £m Regulatory £m Litigation £m Other £m Total £m At 31 March 2018 12 294 71 33 320 64 261 1,055 Additions — 84 102 2 58 3 66 315 Unwind of discount — 11 2 1 — — — 14 Utilised or released — (71 ) (13 ) (9 ) (196 ) (9 ) (109 ) (407 ) Transfers (12 ) 21 — — — 27 (7 ) 29 Exchange differences — — — — — (1 ) 1 — At 31 March 2019 — 339 162 27 182 84 212 1,006 IFRS 16 adjustment a — (183 ) (14 ) (12 ) — — — (209 ) At 1 April 2019 156 148 15 182 84 212 797 Additions — 18 52 88 26 7 70 261 Unwind of discount — 1 1 — — — — 2 Utilised or released — (31 ) (22 ) (91 ) (129 ) (14 ) (77 ) (364 ) Transfers b — — — — — 11 11 22 Exchange differences — — — — — — 1 1 31 March 2020 — 144 179 12 79 88 217 719 a On transition to IFRS 16 on 1 April 2019, all onerous lease provisions were either reclassified to the corresponding right-of-use assets as a proxy for impairment, or were otherwise released to equity as a transition adjustment. See note 1 . b Transfers include £5m on provisions associated with held-for-sale assets during the period. See note 23. |
Details of Provisions | At 31 March 2020 2019 2018 £m £m £m Analysed as: Current 288 424 603 Non-current 431 582 452 719 1,006 1,055 |
Retirement benefit plans (Table
Retirement benefit plans (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Summary of Retirement Benefit Plans | Under the Scheme rules the determination of the rate of inflation for statutory minimum rates of revaluation and indexation for the majority of benefits is based upon either the Retail Price Index (RPI) or the Consumer Price Index (CPI) which apply to each category of member as shown below. Active members Deferred members Pensioners Section B a Benefits accrue on a CARE basis increasing at the lower of RPI or the individual’s actual pensionable pay increase Preserved benefits are revalued before Increases in benefits in payment are currently based upon CPI Section C Increases in benefits in payment are currently based upon RPI up to a maximum of 5% a Section A members have typically elected to take Section B benefits at retirement. What are they? How do they impact BT’s financial statements? Defined contribution plans Benefits in a defined contribution plan are linked to: – contributions paid – the performance of each individual’s chosen investments – the form in which individuals choose to take their benefits. Contributions are paid into an independently administered fund. The operating charge in respect of defined contribution plans represents the contribution payable by the group (usually a fixed percentage of each employee's pay). The group has no exposure to investment and other experience risks. Defined benefit plans Benefits in a defined benefit plan are: – determined by the plan rules, dependent on factors such as age, years of service and pensionable pay – not dependent upon actual contributions made by the company or members. The operating charge reflects the increase in the liability resulting from the pension benefit earned by active employees in the current period, the costs of administering the plans and any past service costs/credits such as those arising from curtailments or settlements. The group is exposed to investment and other experience risks and may need to make additional contributions where it is estimated that the benefits will not be met from regular contributions, expected investment income and assets held. |
Summary of Expense or Income from Retirement Benefit Arrangements Recognised in Income Statement | The expense or income arising from all group retirement benefit arrangements recognised in the group income statement is shown below. Year ended 31 March 2020 2019 2018 Recognised in the income statement before specific items – Service cost (including administration expenses and PPF levy): – defined benefit plans 86 135 376 – defined contribution plans 540 476 265 – Past service credit a — — (17 ) Subtotal 626 611 624 Recognised in the income statement as specific items (note 9) – Costs to close BT Pension Scheme and provide transition payments b for affected employees 22 23 — – Cost to equalise benefits between men and women c — 26 — – Net interest expense on pensions deficit included in specific items 145 139 218 Subtotal 167 188 218 Total recognised in the income statement 793 799 842 a Relates to the removal of future indexation obligations following changes to the benefits provided under certain pension plans operating outside the UK in 2017/18. b All employees impacted by the closure of the BTPS receive transition payments into their BTRSS pot for a period linked to the employee’s age. There was no past service cost or credit on closure due to the assumed past service benefit link as an active member being the same as that assumed for a deferred member. c In October 2018, a High Court judgement involving the Lloyds Banking Group’s defined benefit pension schemes was handed down, resulting in the group needing to recognise additional liability to equalise benefits between men and women due to GMPs, in common with most UK defined benefit schemes. |
Summary of Pension Obligation in Respect of Defined Benefit Plans Reported in Balance Sheet | The Retirement Benefit Obligations in respect of defined benefit plans reported in the group balance sheet are set out below. 2020 2019 At 31 March Assets £m Liabilities £m Deficit a £m Assets £m Liabilities £m Deficit a £m BTPS 52,240 (53,010 ) (770 ) 52,186 (58,855 ) (6,669 ) EEPS 820 (879 ) (59 ) 816 (997 ) (181 ) Other plans b 411 (722 ) (311 ) 362 (694 ) (332 ) Retirement Benefit Obligations (gross of tax) 53,471 (54,611 ) (1,140 ) 53,364 (60,546 ) (7,182 ) Deferred tax asset 175 1,208 Retirement Benefit Obligations (net of tax) (965 ) (5,974 ) a BT is not required to limit any pension surplus or recognise additional pensions liabilities in individual plans as economic benefits are available in the form of either future refunds or reductions to future contributions. This is on the basis that IFRIC 14 applies enabling a refund of surplus following the gradual settlement of the liabilities over time until there are no members remaining in the scheme. b Included in the liabilities of other plans is £150m (2018/19: £101m ) related to unfunded pension arrangements. As at 31 March 2020, £8m of pension liabilities in France have been classified as held for sale. Refer to note 23. |
Summary of Movements on Pension Assets and Liabilities | The table below shows the movements on the pension assets and liabilities and shows where they are reflected in the financial statements. Assets £m Liabilities £m Deficit £m At 31 March 2018 50,956 (57,803 ) (6,847 ) Service cost (including administration expenses and PPF levy) (49 ) (86 ) (135 ) Costs to close BT Pension Scheme (6 ) — (6 ) Cost to equalise benefits between men and women due to guaranteed minimum pension (GMP) — (26 ) (26 ) Interest on pension deficit 1,356 (1,495 ) (139 ) Included in the group income statement (306 ) Return on plan assets above the amount included in the group income statement 1,607 — 1,607 Actuarial loss arising from changes in financial assumptions a — (3,920 ) (3,920 ) Actuarial gain arising from changes in demographic assumptions a — 247 247 Actuarial loss arising from experience adjustments b — (36 ) (36 ) Included in the group statement of comprehensive income (2,102 ) Regular contributions by employer 43 — 43 Deficit contributions by employer 2,024 — 2,024 Included in the group cash flow statement 2,067 Contributions by employees 1 (1 ) — Benefits paid (2,564 ) 2,564 — Other (e.g. foreign exchange) (4 ) 10 6 Other movements 6 At 31 March 2019 53,364 (60,546 ) (7,182 ) Service cost (including administration expenses and PPF levy) (66 ) (20 ) (86 ) Interest on pension deficit 1,246 (1,391 ) (145 ) Included in the group income statement (231 ) Return on plan assets above the amount included in the group income statement 249 — 249 Actuarial gain arising from changes in financial assumptions a — 3,746 3,746 Actuarial gain arising from changes in demographic assumptions a — 498 498 Actuarial gain arising from experience adjustments b — 360 360 Included in the group statement of comprehensive income 4,853 Regular contributions by employer 160 — 160 Deficit contributions by employer 1,274 — 1,274 Included in the group cash flow statement 1,434 Contributions by employees — — — Benefits paid (2,764 ) 2,764 — Other (e.g. foreign exchange) 8 (22 ) (14 ) Other movements (14 ) At 31 March 2020 53,471 (54,611 ) (1,140 ) a The actuarial gain or loss arises from changes in the assumptions used to value the defined benefit liabilities at the end of the year compared with the assumptions used at the start of the year. This includes both financial assumptions, which are based on market conditions at the year end, and demographic assumptions such as life expectancy. b The actuarial loss or gain arising from experience adjustments on defined benefit liabilities represents the impact on the liabilities of differences between actual experience during the year compared with the assumptions made at the start of the year. Such differences might arise, for example, from members choosing different benefit options at retirement, actual salary increases being different from those assumed or actual benefit increases being different to the pension increase assumption. |
Summary of Analysis of Membership | The membership is analysed below. Analysis of BTPS Active members Deferred members Pensioners Total Sections A and B liabilities (£bn) a — 7.2 28.7 35.9 Section C liabilities (£bn) — 12.8 4.3 17.1 Total IAS 19 liabilities (£bn) — 20.0 33.0 53.0 Total number of members — b 81,000 205,000 286,000 a Sections A and B have been aggregated in this table as Section A members have typically elected to take Section B benefits at retirement. b At 30 June 2019 there are around 50 active members in the BTPS. |
Summary of Estimated Benefits Payable from the BTPS Forecast Using the IAS 19 Assumptions | The chart below illustrates the estimated benefits payable from the BTPS forecast using the IAS 19 assumptions. |
Summary of Fair Value of Assets of BTPS Analysed by Asset Category | The fair value of the assets of the BTPS analysed by asset category are shown below. These are subdivided by assets that have a quoted market price in an active market and those that do not (such as investment funds). 2020 a 2019 a Assets, prior to estimated adjustments £bn Total assets b £bn of which quoted c £bn Total % Total assets £bn of which quoted c £bn Total % Growth Equities UK 0.3 0.3 0.3 1 0.5 0.4 1 Overseas developed 6.7 6.7 5.6 13 7.7 7.3 15 Emerging markets 1.0 1.0 1.0 2 1.1 1.1 2 Private Equity 1.6 1.3 — 2 1.5 — 3 Property UK 3.5 3.5 — 7 3.5 — 7 Overseas 1.1 1.1 — 2 1.1 — 2 Other growth assets Absolute Return d 1.2 1.2 — 2 1.2 — 2 Non Core Credit e 4.4 4.2 1.0 8 3.8 1.1 7 Mature Infrastructure 1.5 1.5 — 3 1.4 — 3 Liability matching Government bonds UK 13.9 13.9 13.9 27 13.2 13.2 25 Investment grade credit Global 14.4 14.4 10.1 28 14.3 10.1 27 Cash, derivatives and other Cash balances 2.3 2.3 — 4 2.7 — 5 Longevity insurance contract f (0.8 ) (0.8 ) — (2 ) (0.7 ) — (1 ) Other g 1.6 1.6 — 3 0.9 — 2 Total 52.7 52.2 31.9 100 52.2 33.2 100 a At 31 March 2020 , the Scheme did not hold any equity issued by the group ( 2018/19 : nil ). The Scheme also held £1,867m ( 2018/19 : £2,154m ) of bonds issued by the group. b Includes an estimated adjustment to assets where the latest valuation precedes the negative impact of the Covid-19 pandemic on financial markets. The calculation of this estimated adjustment contains additional uncertainty over that of the formal valuation process for these assets c Assets with a quoted price in an active market. d This allocation seeks to generate returns irrespective of the direction of markets. Managers within this allocation will typically manage their portfolios without close regard to a specific market benchmark. e This allocation includes a range of credit investments, including emerging market, sub-investment grade and unrated credit. The allocation seeks to exploit investment opportunities within credit markets using the expertise of a range of specialist investment managers. f The Trustee has hedged some of the Scheme’s longevity risk through a longevity insurance contract which was entered into in 2014. The value reflects experience to date on the contract from higher than expected deaths. This amount partly offsets a reduction which has been recognised in the Scheme’s liabilities. g Includes collateral posted in relation to derivatives held by the Scheme. |
Summary of Key Financial Assumptions Used to Measure Liabilities of BTPS | The table below summarises the approach used to set the key IAS 19 assumptions for the BTPS. Approach to set the assumption Discount rate IAS 19 requires that the discount rate is determined by reference to market yields at the reporting date on high quality corporate bonds. The currency and term of these should be consistent with the currency and estimated term of the pension obligations. RPI and CPI inflation The RPI inflation assumption is set using an inflation curve derived from market yields on government bonds, weighted by projected BTPS benefit cash flows, and making an adjustment for an inflation risk premium (to reflect the extra premium paid by investors for inflation protection), which we currently assume to be 20bps. Pension increases Benefits are assumed to increase in line with the RPI or CPI inflation assumptions, based on the relevant index for increasing benefits, as prescribed by the rules of the BTPS and summarised above. Longevity The longevity assumption takes into account: The key financial assumptions used to measure the liabilities of the BTPS are shown below. Nominal rates (per year) Real rates (per year) a At 31 March 2020 2019 2018 2020 2019 2018 Rate used to discount liabilities 2.45 % 2.35 % 2.65 % (0.15 )% (0.87 )% (0.44 )% Inflation – increase in RPI 2.60 % 3.25 % 3.10 % — % — % — % Inflation – increase in CPI 2.10 % b 2.25 % c 2.00 % d (0.5 )% b (1.0 )% c (1.1 )% d a The real rate is calculated relative to RPI inflation. b Assumed to be 0.4% lower until 31 March 2030. c Assumed to be 0.1% lower until 31 March 2023. d Assumed to be 0.1% higher until 31 March 2023. |
Summary of Average Life Expectancies for Members Aged Sixty | Based on the IAS 19 longevity assumptions, the forecast life expectancies for BTPS members aged 60 are as follows: 2020 2019 At 31 March Number of years Number of years Male in lower pay bracket 25.4 25.7 Male in medium pay bracket 26.7 27.0 Male in higher pay bracket 28.1 28.5 Female in lower pay bracket 28.1 28.5 Female in higher pay bracket 28.4 28.7 Average improvement for a member retiring at age 60 in 10 years' time 0.7 0.7 The average life expectancy assumptions at the valuation dates, for members 60 years of age, are as follows. Number of years from valuation date June 2017 assumptions June 2014 assumptions Male in lower pay bracket 25.9 26.1 Male in medium pay bracket 27.2 27.5 Male in high pay bracket 28.6 29.0 Female in lower pay bracket 28.6 28.9 Female in high pay bracket 28.9 29.2 Average improvement for a member retiring at age 60 in 10 years’ time 0.9 1.3 |
Summary of Key Financial Risks and Mitigations for BTPS | Some of the key financial risks, and mitigations, for the BTPS are set out in the table below. Changes in corporate and government bond yields A fall in yields on AA-rated corporate bonds, used to set the IAS 19 discount rate, will lead to an increase in the IAS 19 liabilities. The BTPS’s assets include corporate bonds, government bonds and interest rate derivatives which are expected to partly offset the impact of movements in the discount rate. However, yields on these assets may diverge compared with the discount rate in some scenarios. Changes in inflation expectations A significant proportion of the benefits paid to members are currently increased in line with RPI or CPI inflation. An increase in long-term inflation expectations will lead to an increase in the IAS 19 liabilities. The BTPS’s assets include index-linked government bonds and inflation derivatives which are expected to largely offset the impact of movements in inflation expectations. Changes in growth assets A significant proportion of the BTPS assets are invested in growth assets, such as equities and property. Although the BTPS has temporary hedges in place to partly offset the impact of a fall in equity markets, a fall in these growth assets will lead to a worsening of the IAS 19 deficit. Changes in life expectancy An increase in the life expectancy of members will result in benefits being paid out for longer, leading to an increase in the BTPS liabilities. The BTPS holds a longevity insurance contract which covers around 25% of the BTPS’s total exposure to improvements in longevity, providing long-term protection and income to the BTPS in the event that members live longer than currently expected. The future of RPI If RPI is aligned with CPIH in the future it could lead to a fall in long-term RPI of around 1%. At 31 March 2020, we estimate that 60% of the impact of aligning RPI with CPIH from 2030 is reflected in the value of RPI-linked assets. Full alignment from 2030 would therefore reduce RPI inflation expectations from 2030 by 0.4%. |
Summary of Assessed Potential Negative Impact of Key Risk | The potential negative impact of the key risks is illustrated as the following five scenarios. These have been assessed by BT's independent actuary as scenarios that might occur no more than once in every 20 years . Scenario 1-in-20 events 2020 2019 1. Fall in bond yields a 1.1 % 1.1 % 2. Increase in credit spreads only 0.7 % N/A 3. Increase to inflation rate b 0.7 % 0.7 % 4. Fall in growth assets c 20.0 % N/A 5. Increase to life expectancy 1.25 years 1.25 years a Scenario assumes a fall in the yields on both government and corporate bonds. b Assuming RPI, CPI, pension increases and salary increases all increase by the same amount. c Impact includes the potential impact of temporary equity hedges held by the Scheme. |
Summary of Sensitivity Analysis of the Principal Assumptions to 1-in-20 Events Used to Measure BTPS IAS 19 Liabilities | The estimated impact of the scenarios illustrated on page 169 on the funding liabilities is shown in the chart below. |
Summary of Two Most Recent Triennial Valuations | The results of the two most recent triennial valuations are shown below. June 2017 valuation £bn June 2014 valuation £bn BTPS liabilities (60.4 ) (47.2 ) Market value of BTPS assets 49.1 40.2 Funding deficit (11.3 ) (7.0 ) Percentage of accrued benefits covered by BTPS assets at valuation date 81.3 % 85.2 % Percentage of accrued benefits on a solvency basis covered by the BTPS assets at the valuation date 62.2 % 63.0 % |
Summary of Prudent Long-Term Assumptions | These valuations were determined using the following prudent long-term assumptions. Nominal rates (per year) Real rates (per year) a June 2017 valuation % June 2014 valuation % June 2017 valuation % June 2014 valuation % Average single equivalent discount rate 2.6 4.5 (0.8 ) 1.0 Average long-term increase in RPI 3.4 3.5 — — Average long-term increase in CPI 2.4 2.5 (1.0 ) (1.0 ) a The real rate is calculated relative to RPI inflation and is shown as a comparator. |
Summary of Payments Made to BTPS | Payments made to the BTPS Year ended 31 March 2020 2019 £m £m Ordinary contributions 118 33 Deficit contributions 1,250 2,000 Total contributions in the year 1,368 2,033 |
Schedule of Future Deficit Payment to BTPS | BT is scheduled to make future deficit payments to the BTPS in line with the table below. Year to 31 March 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Deficit contribution (£m) 900 a 900 b 907 907 907 907 907 907 907 907 a £400m payable by 30 June 2020. b £200m payable by 30 June 2021. |
Summary of Other Protections | The 2017 funding agreement with the Trustee included additional features for BT to provide support to the BTPS. These include: Feature Detail Shareholder distributions BT will provide additional payments to the BTPS by the amount that shareholder distributions exceed a threshold. The threshold allows for 10% per year dividend per share growth plus £200m per year of share buybacks on a cumulative basis. Material corporate events In the event that BT generates net cash proceeds greater than £1.0bn from disposals (net of acquisitions) in any 12-month period ending 30 June, BT will make additional contributions to the BTPS equal to one third of those net cash proceeds. This obligation applies until the next valuation is signed. Negative pledge A negative pledge that future creditors will not be granted superior security to the BTPS in excess of a £1.5bn threshold, to cover both British Telecommunications plc and BT Group plc. In the highly unlikely event that the group were to become insolvent there are additional protections of BTPS members’ benefits: Feature Detail Crown Guarantee The Crown Guarantee was granted by the Government when the group was privatised in 1984 and would only come into effect upon the insolvency of BT. The Trustee brought court proceedings to clarify the scope and extent of the Crown Guarantee. The Court of Appeal judgement on 16 July 2014 established that: – the Crown Guarantee covers BT’s funding obligation in relation to the benefits of members of the BTPS who joined post-privatisation as well as those who joined pre-privatisation (subject to certain exceptions) – the funding obligation to which the Crown Guarantee relates is measured with reference to BT’s obligation to pay deficit contributions under the rules of the BTPS. The Crown Guarantee is not taken into account for the purposes of the actuarial valuation of the BTPS and is an entirely separate matter, only being relevant in the highly unlikely event that BT became insolvent. Pension Protection Fund (PPF) Further protection is also provided by the Pension Protection Fund which is the fund responsible for paying compensation in schemes where the employer becomes insolvent. |
Own shares (Tables)
Own shares (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Equity [abstract] | |
Summary of Own Shares | Treasury shares a Employee share ownership trust a Total millions £m millions £m millions £m At 31 March 2018 46 (145 ) 12 (41 ) 58 (186 ) Own shares purchased b — — 5 (9 ) 5 (9 ) Share options exercised b (1 ) 2 — — (1 ) 2 Executive share awards vested — — (8 ) 26 (8 ) 26 At 1 April 2019 45 (143 ) 9 (24 ) 54 (167 ) Own shares purchased b 41 (80 ) 3 (6 ) 44 (86 ) Share options exercised b — — — — — — Executive share awards vested — — (8 ) 22 (8 ) 22 Conversion of ADR shares c — — 3 (6 ) 3 (6 ) At 31 March 2020 86 (223 ) 7 (14 ) 93 (237 ) a At 31 March 2020 , 85,921,056 shares ( 2018/19 : 45,308,559 ) with an aggregate nominal value of £4m ( 2018/19 : £2m ) were held at cost as treasury shares and 7,255,789 shares ( 2018/19 : 9,021,714 ) with an aggregate nominal value of £nil ( 2018/19 : £nil ) were held in the Trust. b See group cash flow statement on page 128. The cash paid for the repurchase of ordinary shares was £86m ( 2018/19 : £9m ). The cash received for proceeds on the issue of treasury shares was £2m ( 2018/19 : £5m ). c Conversion of American depositary receipts to ordinary shares following delisting from the NYSE and termination of BT's ADR programme from the US Securities Exchange Commission registration. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Summary of Plans and Analysis of Total Charge by Type of Award | 2020 2019 2018 Year ended 31 March £m £m £m Employee Saveshare Plans 36 38 42 Executive Share Plans: Incentive Share Plan (ISP) 16 6 16 Deferred Bonus Plan (DBP) 7 6 4 Retention Share Plan (RSP) 9 17 21 Other plans 4 0 1 72 67 84 |
Movements in Employee Saveshare Options | Movements in Employee Saveshare options are shown below. Number of share options Weighted average exercise price 2020 2019 2018 2020 2019 2018 Year ended 31 March millions millions millions pence pence pence Outstanding at 1 April 190 175 189 254 306 313 Granted 107 80 69 168 175 250 Forfeited (50 ) (44 ) (41 ) 251 298 328 Exercised — (1 ) (30 ) 174 247 169 Expired (33 ) (20 ) (12 ) 318 294 353 Outstanding at 31 March 214 190 175 202 254 306 Exercisable at 31 March — — — 319 249 320 |
Summarises Information Relating to Options Outstanding and Exercisable Under Employee Saveshare Plans | The following table summarises information relating to options outstanding and exercisable under Employee Saveshare plans at 31 March 2020 . Normal dates of vesting and exercise (based on calendar years) Exercise price per share Weighted average exercise price Number of outstanding options millions Weighted average remaining contractual life 2020 243p – 397p 302 p 26 10 months 2021 170p – 376p 228 p 34 22 months 2022 164p – 353p 200 p 58 34 months 2023 170 p 170 p 35 46 months 2024 164 p 164 p 61 58 months Total 202 p 214 34 months |
Movements in Executive Share Plan Awards | Movements in executive share plan awards during 2019/20 are shown below: Number of shares (millions) ISP DBP RSP Total At 31 March 2019 74 8 11 93 Awards granted 34 5 8 47 Awards vested — (2 ) (6 ) (8 ) Awards lapsed (25 ) — (1 ) (26 ) Dividend shares reinvested 8 1 1 10 At 31 March 2020 91 12 13 116 |
Summary of Fair Values and Key Assumptions Used for Valuing Grants Made Under Employee Saveshare Plans and ISP | The following table summarises the fair values and key assumptions used for valuing grants made under the Employee Saveshare plans and ISP in 2019/20 , 2018/19 and 2017/18 . 2020 2019 2018 Year ended 31 March Employee Saveshare ISP Employee Saveshare ISP Employee Saveshare ISP Weighted average fair value 39 p 152 p 41 p 156 p 56 p 202 p Weighted average share price 206 p 202 p 208 p 211 p 296 p 281 p Weighted average exercise price of options granted 168 p n/a 175 p n/a 250 p n/a Expected dividend yield 4.16% – 5.01% n/a 3.47% – 3.83% n/a 3.12% – 3.21% n/a Risk free rates 0.55% – 0.63% 0.7 % 0.74% – 1.07% 0.7 % 0.1% – 0.2% 0.2 % Expected volatility 25.0% – 28.1% 24.3 % 23.3% – 25.8% 23.5 % 23.1% – 24.3% 23.6 % |
Assets and liabilities classi_2
Assets and liabilities classified as held for sale (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Assets And Liabilities Classified As Held For Sale [Abstract] | |
Summary of Assets and Liabilities Held for Sale | The disposal groups were stated at fair value less costs to sell and comprised the following assets and liabilities: At 31 March 2020 £m Assets Intangible assets 35 Property, plant and equipment 37 Right-of-use assets 34 Trade and other receivables 87 Contract assets 8 Deferred tax assets 4 Inventories 1 Current tax receivable 19 Cash and cash equivalents 43 Assets held for sale 268 Liabilities Trade and other payables 104 Contract liabilities 28 Lease liabilities 62 Current tax liabilities 4 Retirement benefit obligations 8 Provisions 5 Liabilities held for sale 211 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Summary of Investments | The current year and 2019 figures in the following tables reflect the classifications under IFRS 9, and the 2018 figures reflect the previous classifications under IAS 39. 2020 2019 2018 At 31 March £m £m £m Non-current assets Fair value through other comprehensive income 9 48 — Available-for-sale — — 46 Fair value through profit or loss 11 6 7 20 54 53 Current assets Available-for-sale — — 2,575 Investments held at amortised cost 5,092 3,214 — Loans and receivables — — 447 5,092 3,214 3,022 |
Fair Value Hierarchy of Investments | Fair value estimation Fair value hierarchy Level 1 Level 2 Level 3 Total held at fair value At 31 March 2020 £m £m £m £m Non-current and current investments Fair value through other comprehensive income — — 9 9 Fair value through profit or loss 11 — — 11 Total 11 — 9 20 At 31 March 2019 Level 1 £m Level 2 £m Level 3 £m Total held at fair value £m Non-current and current investments Fair value through other comprehensive income 38 — 10 48 Fair value through profit or loss 6 — — 6 Total 44 — 10 54 At 31 March 2018 Level 1 £m Level 2 £m Level 3 £m Total held at fair value £m Non-current and current investments Available-for-sale 32 2,575 14 2,621 Fair value through profit or loss 7 — — 7 Total 39 2,575 14 2,628 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Summary of Cash and Cash Equivalents | 2020 2019 2018 At 31 March £m £m £m Cash at bank and in hand 463 495 446 Cash equivalents UK deposits 1,043 1,132 31 US deposits 8 3 26 Other deposits 35 36 25 Total cash equivalents 1,086 1,171 82 Total cash and cash equivalents 1,549 1,666 528 Bank overdrafts (note 26) (183 ) (72 ) (29 ) Cash and cash equivalents classified as held for sale (note 23) 43 — — Cash and cash equivalents per the cash flow statement 1,409 1,594 499 |
Loans and other borrowings (Tab
Loans and other borrowings (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of detailed information about borrowings [abstract] | |
Summary of Components of Capital | Our capital structure consists of net debt and shareholders’ equity. The analysis below summarises the components which we manage as capital. 2020 2019 2018 At 31 March £m £m £m Net debt a 17,969 11,035 9,627 Total parent shareholders’ equity b 14,741 10,140 9,877 32,710 21,175 19,504 a Net debt at 31 March 2020 includes lease liabilities recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1 . b Excludes non-controlling interests of £22m ( 2018/19 : £27m , 2017/18 : £34m ). |
Summary of Detailed Information about Borrowings | The table below gives details of the listed bonds and other debt. 2020 2019 2018 At 31 March £m £m £m 3.25% €600m bond due August 2018 a — — 541 2.35% US$800m bond due February 2019 a — — 572 4.38% £450m bond due March 2019 — — 455 1.125% €1,000m bond due June 2019 a — 869 883 8.625% £300m bond due March 2020 — 300 300 0.625% €1,500m bond due March 2021 a 1,326 1,289 1,309 0.5% €575m bond due June 2022 a 509 495 502 1.125% €1,100m bond due March 2023 a 972 946 961 0.875% €500m bond due September 2023 a 442 430 — 4.5% US$675m bond due December 2023 a 551 524 — 1% €575m bond due June 2024 a 512 498 506 1% €1,100m bond due November 2024 a 970 943 959 3.50% £250m index linked bond due April 2025 445 433 419 0.5% €650m bond due September 2025 a 574 — — 1.75% €1,300m bond due March 2026 a 1,149 1,118 1,137 1.5% €1,150m bond due June 2027 a 1,020 993 1,009 2.125% €500m bond due September 2028 a 445 433 — 5.125% US$700m bond due December 2028 a 570 542 — 5.75% £600m bond due December 2028 700 710 721 1.125% €750m bond due September 2029 a 658 — — 3.25% US$1,000m bond due November 2029 a 807 — — 9.625% US$2,670m bond due December 2030 a (minimum 8.625% b ) 2,203 2,096 1,943 3.125% £500m bond due November 2031 502 502 502 3.64% £330m bond due June 2033 339 339 — 1.613% £330m index linked bond due June 2033 343 340 — 6.375% £500m bond due June 2037 a 522 522 522 3.883% £330m bond due June 2039 340 340 — 1.739% £330m index linked bond due June 2039 343 340 — 3.924% £340m bond due June 2042 350 350 — 1.774% £340m index linked bond due June 2042 354 351 — 3.625% £250m bond due November 2047 250 250 250 4.25% US$500m bond due November 2049 a 407 — — 1.874% €500m bond due August 2080 c 441 — — Total listed bonds 18,044 15,953 13,491 Finance leases d — 206 223 Other loans 1,107 645 532 Bank overdrafts (note 25) 183 72 29 Total other loans and borrowings 1,290 717 561 Total loans and other borrowings 19,334 16,876 14,275 a Designated in a cash flow hedge relationship. b The interest rate payable on this bond attracts an additional 0.25% for a downgrade by one credit rating by either Moody’s or Standard & Poor’s to the group’s senior unsecured debt below A3/A– respectively. In addition, if Moody’s or Standard & Poor’s subsequently increase the ratings then the interest rate will be decreased by 0.25% for each rating category upgrade by each rating agency. In no event will the interest rate be reduced below the minimum rate reflected in the above table. c I Includes put option at 5.5 years d On adoption of IFRS 16 on 1 April 2019 finance leases were reclassified to lease liabilities which are presented on the face of the balance sheet, refer to note 1 . A reconciliation from the most directly comparable IFRS measure to net debt is given below. 2020 2019 2018 At 31 March £m £m £m Loans and other borrowings 19,334 16,876 14,275 Lease liabilities a 6,560 — — Net liabilities classified as held for sale b 19 — — Less: Cash and cash equivalents (1,549 ) (1,666 ) (528 ) Current asset investments (5,092 ) (3,214 ) (3,022 ) 19,272 11,996 10,725 Adjustments: To retranslate debt balances at swap rates where hedged by currency swaps (1,049 ) (701 ) (874 ) To remove accrued interest applied to reflect the effective interest method and fair value adjustments (254 ) (260 ) (224 ) Net debt 17,969 11,035 9,627 a Lease liabilities recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1 . b Net liabilities classified as held for sale include lease liabilities of £62m less cash and cash equivalents of £43m , refer to note 23 . |
Summary of Key Components of Net Debt | The table below shows the key components of net debt and of the increase of £6,934m this year. At 31 March 2019 IFRS 16 lease liabilities a At 1 April 2019 Issuance/ (maturities) Net lease additions a Foreign exchange Transfer to within one year Other movements At 31 March 2020 £m £m £m £m £m £m £m £m £m Loans and other borrowings due within one year b 2,100 (16 ) 2,084 (629 ) — 33 1,326 28 2,842 Lease liabilities due within one year — 725 725 (791 ) — — 897 (19 ) 812 Loans and other borrowings due after one year 14,776 (190 ) 14,586 2,843 — 398 (1,326 ) (9 ) 16,492 Lease liabilities due after one year — 5,544 5,544 — 1,139 5 (897 ) (43 ) 5,748 Impact of cross-currency swaps c (701 ) — (701 ) 81 — (429 ) — — (1,049 ) Removal of the accrued interest and fair value adjustments d (263 ) — (263 ) — — — — 68 (195 ) Gross debt 15,912 6,063 21,975 1,504 1,139 7 — 25 24,650 Less: Cash and cash equivalents (1,666 ) — (1,666 ) 75 — (2 ) — 44 (1,549 ) Current asset investments (3,214 ) — (3,214 ) (1,877 ) — (1 ) — — (5,092 ) Removal of the accrued interest d 3 — 3 — — — — (43 ) (40 ) Net debt 11,035 6,063 17,098 (298 ) 1,139 4 — 26 17,969 a Lease liabilities recognised on adoption of IFRS 16 on 1 April 2019, refer to note 1 . £206m finance lease liabilities previously included in loans and other borrowings were reclassified to lease liabilities on adoption of IFRS16. Net lease additions comprise non-cash movements in lease liabilities during the period primarily new and terminated leases, and remeasurements of existing leases. b Including accrued interest and bank overdrafts. c Translation of debt balances at swap rates where hedged by cross currency swaps. d Other movements include removal of accrued interest applied to reflect the effective interest rate method, removal of fair value adjustments and inclusion of held for sale assets and liabilities (see note 23 ). |
Summary of Loans and Other Borrowings | Loans and other borrowings are analysed as follows: 2020 2019 2018 At 31 March £m £m £m Current liabilities Listed bonds 1,552 1,367 1,702 Finance leases a — 16 18 Other loans and bank overdrafts b 1,290 717 561 Total current liabilities 2,842 2,100 2,281 Non-current liabilities Listed bonds 16,492 14,586 11,789 Finance leases a — 190 205 Total non-current liabilities 16,492 14,776 11,994 Total 19,334 16,876 14,275 a On adoption of IFRS 16 on 1 April 2019 finance leases were reclassified to lease liabilities which are presented on the face of the balance sheet, refer to note 1 . b Includes collateral received on swaps of £1,091m ( 2018/19 : £638m , 2017/18 : £525m ). |
Summary of Principal Repayments of Loans and Other Borrowings | The principal repayments of loans and borrowings at hedged rates amounted to £18,028m ( 2018/19 : £15,912m , 2017/18 : £13,175m ) and repayments fall due as follows: 2020 2019 2018 At 31 March Carrying amount £m Effect of hedging and interest £m Principal repayments at hedged rates £m Carrying amount £m Effect of hedging and interest £m Principal repayments at hedged rates £m Carrying amount £m Effect of hedging and interest £m Principal repayments at hedged rates £m Within one year, or on demand 2,842 (406 ) 2,436 2,100 (264 ) 1,836 2,272 (291 ) 1,981 Between one and two years — — — 1,309 (133 ) 1,176 1,192 (66 ) 1,126 Between two and three years 1,482 (125 ) 1,357 15 — 15 1,332 (154 ) 1,178 Between three and four years 987 (9 ) 978 1,463 (89 ) 1,374 18 — 18 Between four and five years 1,482 9 1,491 964 33 997 1,489 (111 ) 1,378 After five years 12,536 (770 ) 11,766 10,975 (461 ) 10,514 7,899 (405 ) 7,494 Total due for repayment after more than one year 16,487 (895 ) 15,592 14,726 (650 ) 14,076 11,930 (736 ) 11,194 Total repayments 19,329 (1,301 ) 18,028 16,826 (914 ) 15,912 14,202 (1,027 ) 13,175 Fair value adjustments 5 50 73 Total loans and other borrowings 19,334 16,876 14,275 |
Finance expense (Tables)
Finance expense (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Finance Expense And Income [Abstract] | |
Summary of Finance Expense | 2020 2019 2018 Year ended 31 March £m £m £m Finance expense Interest on: Financial liabilities at amortised cost and associated derivatives 608 582 478 Lease liabilities a 140 — — Finance leases a — 13 16 Derivatives 3 — 14 Fair value movements on derivatives not in a designated hedge relationship (3 ) (3 ) 1 Reclassification of cash flow hedge from other comprehensive income 46 45 34 Unwinding of discount on provisions 2 14 15 Total finance expense before specific items 796 651 558 Specific items (note 9) 145 139 218 Total finance expense 941 790 776 a Lease liabilities were recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1. Finance lease liabilities recognised at this date were reclassified to lease liabilities. |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |
Summary of Currency and Interest Rate Profile of Loans and Borrowings | The table below reflects the currency and interest rate profile of our loans and borrowings after the impact of hedging. 2020 2019 2018 At 31 March Fixed rate interest £m Floating rate interest £m Total £m Fixed rate interest £m Floating rate interest £m Total £m Fixed rate interest £m Floating rate interest £m Total £m Sterling 15,289 1,757 17,046 13,556 1,767 15,323 11,990 676 12,666 Euro — 888 888 — 589 589 — 509 509 USD — 94 94 — — — — — — Total 15,289 2,739 18,028 13,556 2,356 15,912 11,990 1,185 13,175 Ratio of fixed to floating 85 % 15 % 100 % 85 % 15 % 100 % 91 % 9 % 100 % Weighted average effective fixed interest rate – sterling 3.9 % 4.0 % 4.4 % |
Summary of Impact on Equity, Before Tax, of a 1% Increase in Interest | The impact on equity, before tax and excluding any impact related to retirement benefit plans, of a 1% increase in interest rates and a 10% strengthening of sterling against other currencies is as detailed below: 2020 2019 2018 At 31 March £m Increase (reduce) £m Increase (reduce) £m Increase (reduce) Sterling interest rates 989 672 628 US dollar interest rates (610 ) (350 ) (267 ) Euro interest rates (451 ) (399 ) (401 ) Sterling strengthening (289 ) (219 ) (236 ) |
Summary of Credit Ratings | Our credit ratings were as detailed below: 2020 2019 2018 At 31 March Rating Outlook Rating Outlook Rating Outlook Rating agency Moody’s Baa2 Negative Baa2 Stable Baa2 Stable Standard & Poor’s BBB Stable BBB Stable BBB+ Negative |
Remaining Contractually-Agreed Cash Flows Including Interest Payable for Non-Derivative Financial Liabilities on Undiscounted Basis | The following table provides an analysis of the remaining cash flows including interest payable for our non-derivative financial liabilities on an undiscounted basis, which therefore differs from both the carrying value and fair value. Non-derivative financial liabilities Loans and other borrowings d £m Interest on loans and other borrowings d £m Trade and other payables £m Provisions £m Lease liabilities a £m Total £m At 31 March 2020 Due within one year 2,602 566 4,932 5 799 8,904 Between one and two years — 562 — 3 783 1,348 Between two and three years 1,482 562 — 3 762 2,809 Between three and four years 987 548 — 4 724 2,263 Between four and five years 1,482 520 — 2 664 2,668 After five years 12,536 3,740 — 0 3,752 20,028 19,089 6,498 4,932 17 7,484 38,020 Interest payments not yet accrued — (6,258 ) — — — (6,258 ) Fair value adjustment 5 — — — — 5 Impact of discounting — — — (1 ) (924 ) (925 ) Carrying value on the balance sheet b,c 19,094 240 4,932 16 6,560 30,842 Non-derivative financial liabilities Loans and other borrowings d £m Interest on loans and other borrowings d £m Trade and other payables £m Provisions £m Total £m At 31 March 2019 Due within one year 1,886 541 5,158 39 7,624 Between one and two years 1,309 505 — 33 1,847 Between two and three years 15 497 — 35 547 Between three and four years 1,463 496 — 14 1,973 Between four and five years 964 482 — 12 1,458 After five years 10,975 3,543 — 127 14,645 16,612 6,064 5,158 260 28,094 Interest payments not yet accrued — (5,850 ) — — (5,850 ) Fair value adjustment 50 — — — 50 Impact of discounting — — — (29 ) (29 ) Carrying value on the balance sheet b , c 16,662 214 5,158 231 22,265 Non-derivative financial liabilities Loans and other borrowings d £m Interest on loans and other borrowings d £m Trade and other payables £m Provisions £m Total £m At 31 March 2018 Due within one year 2,120 452 4,939 54 7,565 Between one and two years 1,192 404 — 34 1,630 Between two and three years 1,332 365 — 25 1,722 Between three and four years 18 357 — 43 418 Between four and five years 1,489 355 — 19 1,863 After five years 7,899 2,714 — 197 10,810 14,050 4,647 4,939 372 24,008 Interest payments not yet accrued — (4,495 ) — — (4,495 ) Fair value adjustment 73 — — — 73 Impact of discounting — — — (72 ) (72 ) Carrying value on the balance sheet b,c 14,123 152 4,939 300 19,514 a Lease liabilities were recognised following adoption of IFRS 16 on 1 April 2019, refer to note 1 . b Foreign currency-related cash flows were translated at closing rates as at the relevant reporting date. Future variable interest rate cash flows were calculated using the most recent rate applied at the relevant balance sheet date. c The carrying amount of trade and other payables excludes £754m ( 2018/19 : £1,479m , 2017/18 : £1,326m ) of non-current trade and other payables which relates to non-financial liabilities, and £862m ( 2018/19 : £632m , 2017/18 : £2,229m ) of other taxation and social security and deferred income. d The cash flows related to index-linked bonds have not been adjusted for inflation. |
Summary of Contractually Agreed Cash Flows in Respect of Derivative Financial Instruments | The following table provides an analysis of the contractually agreed cash flows in respect of the group’s derivative financial instruments. Cash flows are presented on a net or gross basis in accordance with the settlement arrangements of the instruments. Derivatives – Analysed by earliest payment date a Derivatives – Analysis based on holding instrument to maturity Derivative financial liabilities Net settled Gross settled outflows Gross settled inflows Total Net settled Gross settled outflows Gross settled inflows Total At 31 March 2020 £m £m £m £m £m £m £m £m Due within one year 80 671 (608 ) 143 80 671 (608 ) 143 Between one and two years 109 88 (36 ) 161 74 88 (36 ) 126 Between two and three years 240 171 (131 ) 280 74 171 (131 ) 114 Between three and four years 227 524 (476 ) 275 74 524 (476 ) 122 Between four and five years 21 1,054 (1,003 ) 72 75 1,054 (1,003 ) 126 After five years 110 1,842 (1,759 ) 193 410 1,842 (1,759 ) 493 Total b 787 4,350 (4,013 ) 1,124 787 4,350 (4,013 ) 1,124 Derivatives – Analysed by earliest payment date a Derivatives – Analysis based on holding instrument to maturity Derivative financial liabilities Net settled Gross settled outflows Gross settled inflows Total Net settled Gross settled outflows Gross settled inflows Total At 31 March 2019 £m £m £m £m £m £m £m £m Due within one year 167 1,007 (950 ) 224 82 1,007 (950 ) 139 Between one and two years 128 541 (489 ) 180 77 541 (489 ) 129 Between two and three years 131 131 (96 ) 166 71 131 (96 ) 106 Between three and four years 163 633 (591 ) 205 71 633 (591 ) 113 Between four and five years 207 1,095 (1,042 ) 260 71 1,095 (1,042 ) 124 After five years 43 3,790 (3,660 ) 173 467 3,790 (3,660 ) 597 Total b 839 7,197 (6,828 ) 1,208 839 7,197 (6,828 ) 1,208 Derivatives – Analysed by earliest payment date a Derivatives – Analysis based on holding instrument to maturity Derivative financial liabilities Net settled Gross settled outflows Gross settled inflows Total Net settled Gross settled outflows Gross settled inflows Total At 31 March 2018 £m £m £m £m £m £m £m £m Due within one year 140 587 (547 ) 180 91 587 (547 ) 131 Between one and two years 135 183 (166 ) 152 91 183 (166 ) 108 Between two and three years 156 442 (446 ) 152 85 69 (47 ) 107 Between three and four years 143 52 (29 ) 166 80 68 (47 ) 101 Between four and five years 161 52 (29 ) 184 80 68 (47 ) 101 After five years 291 2,234 (2,149 ) 376 599 2,575 (2,512 ) 662 Total b 1,026 3,550 (3,366 ) 1,210 1,026 3,550 (3,366 ) 1,210 a Certain derivative financial instruments contain break clauses whereby either the group or bank counterparty can terminate the swap on certain dates and the mark to market position is settled in cash. b Foreign currency-related cash flows were translated at closing rates as at the relevant reporting date. Future variable interest rate cash flows were calculated using the most recent rate applied at the relevant balance sheet date. |
Summary of Maximum Credit Risk Exposure of Financial Assets | The maximum credit risk exposure of the group’s financial assets at the balance sheet date is as follows: 2020 2019 2018 At 31 March Notes £m £m £m Derivative financial assets 2,489 1,592 1,509 Investments 24 5,112 3,268 3,075 Trade and other receivables a 17 1,432 1,766 2,518 Contract assets 5 1,721 1,602 — Cash and cash equivalents 25 1,549 1,666 528 12,303 9,894 7,630 a The carrying amount excludes £481m ( 2018/19 : £445m , 2017/18 : £317m ) of non-current trade and other receivables which relate to non-financial assets, and £1,272m ( 2018/19 : £1,456m , 2017/18 : £1,496m ) of prepayments, deferred contract costs and other receivables. |
Summary of Credit Quality and Credit Concentration of Cash Equivalents, Current Asset Investments and Derivative Financial Assets | The credit quality and credit concentration of cash equivalents, current asset investments and derivative financial assets are detailed in the tables below. Where the opinion of Moody’s and Standard & Poor’s (S&P) differ, the lower rating is used. 2020 2019 2018 Moody’s/S&P credit rating of counterparty £m £m £m Aa2/AA and above 4,210 2,522 2,575 Aa3/AA– 971 1,376 313 A1/A+ a 1,363 1,145 651 A2/A a 1,437 649 628 A3/A– a 0 50 180 Baa1/BBB+ a 100 75 59 Baa2/BBB and below a 585 160 207 8,666 5,977 4,613 a We hold cash collateral of £1,091m ( 2018/19 : £638m , 2017/18 : £492m ) in respect of derivative financial assets with certain counterparties. |
Summary of Offsetting of Financial Assets and Liabilities | The table below shows our financial assets and liabilities that are subject to offset in the group’s balance sheet and the impact of enforceable master netting or similar agreements. Related amounts not set off in the balance sheet Financial assets and liabilities Amounts presented in the balance sheet £m Right of set off with derivative counterparties £m Cash collateral £m Net amount £m At 31 March 2020 Derivative financial assets 2,489 (948 ) (1,091 ) 450 Derivative financial liabilities (1,012 ) 948 83 19 Total 1,477 — (1,008 ) 469 Related amounts not set off in the balance sheet Financial assets and liabilities Amounts presented in the balance sheet £m Right of set off with derivative counterparties £m Cash collateral £m Net amount £m At 31 March 2019 Derivative financial assets 1,592 (802 ) (638 ) 152 Derivative financial liabilities (940 ) 802 90 (48 ) Total 652 — (548 ) 104 Related amounts not set off in the balance sheet Financial assets and liabilities Amounts presented in the balance sheet £m Right of set off with derivative counterparties £m Cash collateral £m Net amount £m At 31 March 2018 Derivative financial assets 1,509 (754 ) (492 ) 263 Derivative financial liabilities (837 ) 754 60 (23 ) Total 672 — (432 ) 240 |
Summary of Derivative Financial Instruments are Held at Fair Value on Balance Sheet | At 31 March 2020 Current asset £m Non-current asset £m Current liability £m Non-current liability £m Designated in a cash flow hedge 250 1,954 36 740 Other 10 275 10 226 Total derivatives 260 2,229 46 966 At 31 March 2019 Current asset £m Non-current asset £m Current liability £m Non-current liability £m Designated in a cash flow hedge 102 1,228 40 689 Other 9 253 8 203 Total derivatives 111 1,481 48 892 At 31 March 2018 Current asset £m Non-current asset £m Current liability £m Non-current liability £m Designated in a cash flow hedge 187 1,061 41 587 Other 10 251 9 200 Total derivatives 197 1,312 50 787 |
Summary of Designated Hedging Instruments | The amounts related to items designated as hedging instruments were as follows: Hedged items Notional principal £m Asset £m Liability £m Balance in cash flow hedge related reserves (gain)/loss £m Fair value (gain)/loss recognised in OCI £m Amount recycled from cash flow hedge related reserves to P&L £m At 31 March 2020 Sterling, euro and US dollar denominated borrowings a 13,464 2,142 (744 ) (490 ) (828 ) 386 US dollar step up interest on US denominated borrowings b 159 7 — (45 ) (11 ) 4 Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies c 2,480 55 (11 ) (57 ) (36 ) (8 ) Fallago Rigg Energy Contract — (21 ) 21 21 — Total cash flow hedges 16,103 2,204 (776 ) (571 ) (854 ) 382 Deferred tax — — 95 Derivatives not in a designated hedge relationship 285 (236 ) — Carrying value on the balance sheet 2,489 (1,012 ) (476 ) Hedged items Notional principal £m Asset £m Liability £m Balance in cash flow hedge related reserves (gain)/loss £m Fair value (gain)/loss recognised in OCI £m Amount recycled from cash flow hedge related reserves to P&L £m At 31 March 2019 Sterling, euro and US dollar denominated borrowings a,d 11,431 1,311 (702 ) (48 ) (130 ) (19 ) US dollar step up interest on US denominated borrowings b 145 3 (1 ) (38 ) (13 ) 4 Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies c 1,821 16 (26 ) (13 ) (33 ) 33 Total cash flow hedges 13,397 1,330 (729 ) (99 ) (176 ) 18 Deferred tax — — 15 Derivatives not in a designated hedge relationship 262 (211 ) — Carrying value on the balance sheet 1,592 (940 ) (84 ) Hedged items Notional principal £m Asset £m Liability £m Balance in cash flow hedge related reserves (gain)/loss £m Fair value (gain)/loss recognised in OCI £m Amount recycled from cash flow hedge related reserves to P&L £m At 31 March 2018 e Sterling, euro and US dollar denominated borrowings a,d 10,417 1,222 (608 ) 101 347 (333 ) US dollar step up interest on US denominated borrowings b 143 — (6 ) (29 ) 13 3 Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies c 1,989 26 (14 ) (13 ) 8 53 Total cash flow hedges 12,549 1,248 (628 ) 59 368 (277 ) Deferred tax — — (22 ) Derivatives not in a designated hedge relationship 261 (209 ) — Carrying value on the balance sheet 1,509 (837 ) 37 a Sterling, euro and US dollar denominated borrowings are hedged using cross currency swaps and interest rate swaps. Amounts recycled to profit and loss are presented within other operating costs and finance expense. b US dollar step up interest on US denominated borrowings are hedged using forward currency contracts. Amounts recycled to profit and loss are presented within finance expense. c Foreign currency purchases, principally denominated in US dollar, euro and Asia Pacific currencies are hedged using forward currency contracts. Amounts recycled to profit and loss in respect of these items are presented within cost of sales and other operating costs. d The notional principal for the 2017/18 and 2018/19 years has been re-presented to exclude £2,087m related to the notional principal of non-hedge accounted swaps previously included. e We have presented comparatives to this information, now required by IFRS 7 following the adoption of IFRS 9, for 31 March 2018. |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of reserves within equity [abstract] | |
Summary of Other Reserves | Other comprehensive income Capital redemption reserve £m Cash flow reserve a £m Fair value reserve b £m Cost of hedging reserve c £m Translation d Total £m At 1 April 2017 27 127 13 — 717 884 Exchange differences e — — — — (188 ) (188 ) Net fair value gain (loss) on cash flow hedges — (368 ) — — — (368 ) Movements in relation to cash flow hedges recognised in income and expense f — 277 — — — 277 Fair value movement on available-for-sale assets — — 11 — — 11 Tax recognised in other comprehensive income — 10 — — (9 ) 1 Transfer to realised profit — (83 ) — — — (83 ) At 31 March 2018 27 (37 ) 24 — 520 534 Transfer to cost of hedging reserve — 81 — (81 ) — — At 1 April 2018 27 44 24 (81 ) 520 534 Exchange differences e — — — — 64 64 Net fair value gain (loss) on cash flow hedges — 168 — 8 — 176 Movements in relation to cash flow hedges recognised in income and expense f — (31 ) — 13 — (18 ) Fair value movement on assets at fair value through other comprehensive income — — 3 — — 3 Tax recognised in other comprehensive income — (37 ) — — (4 ) (41 ) At 1 April 2019 27 144 27 (60 ) 580 718 Exchange differences e — — — — 40 40 Net fair value gain (loss) on cash flow hedges — 823 — 31 — 854 Movements in relation to cash flow hedges recognised in income and expense f — (411 ) — 29 — (382 ) Fair value movement on assets at fair value through other comprehensive income — — (5 ) — — (5 ) Tax recognised in other comprehensive income — (80 ) — — (4 ) (84 ) Transfer to realised profit — — (22 ) — — (22 ) At 31 March 2020 27 476 — — 616 1,119 a The cash flow reserve is used to record the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred. b The fair value reserve (2017/18: available-for-sale reserve) is used to record the cumulative fair value gains and losses on assets classified as fair value through other comprehensive income (2017/18: available-for-sale financial assets). The cumulative gains and losses are recycled to the income statement on disposal of the assets. Level 1 investments, classified as fair value through other comprehensive income, were sold in 2020. The fair value gain was reclassified from fair value reserve to profit and loss reserve after disposal. c The cost of hedging reserve reflects the gain or loss on the portion excluded from the designated hedging instrument that relates to the currency basis element of our cross currency swaps. It is initially recognised in other comprehensive income and accounted for similarly to gains or losses in the cash flow reserve. d The translation reserve is used to record cumulative translation differences on the net assets of foreign operations. The cumulative translation differences are recycled to the income statement on disposal of the foreign operation. e Excludes £1m ( 2018/19 : £(2)m , 2017/18 : £1m ) of exchange differences in relation to retained earnings attributed to non-controlling interests. f Movements in cash flow hedges recognised in income and expense include a net charge to other comprehensive income of £428m ( 2018/19 : charge of £63m , 2017/18 : credit of £243m ) which have been reclassified to operating costs, and a net credit to the cash flow reserve of £ 46 m ( 2018/19 : £ 45 m, 2017/18 : £ 34 m) which have been reclassified to finance expense (see note 27). |
Financial commitments and con_2
Financial commitments and contingent liabilities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Financial Commitments [Abstract] | |
Disclosure of Financial Commitments | Financial commitments were as follows: 2020 2019 At 31 March £m £m Operating lease commitments — 6,619 TV programme rights commitments 2,434 2,113 Capital commitments 1,234 1,432 Other commitments 228 253 Total 3,896 10,417 |
Basis of Preparation - Addition
Basis of Preparation - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2019 | |||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Lease liabilities | £ 6,560 | £ 6,269 | ||||
Right-of-use assets | 5,391 | [1] | 5,155 | |||
Increase (decrease) in segment/internal revenue | 22,905 | £ 23,428 | £ 23,723 | |||
Increase (decrease) in operating profit | 3,283 | 3,421 | 3,381 | |||
Increase (decrease) in capital expenditure | £ 3,960 | 3,963 | 3,522 | |||
IFRS 16 | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Lease liabilities | £ 6,063 | |||||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 2.20% | |||||
Right-of-use assets | [1] | £ 5,200 | ||||
IFRS 16 | Minimum | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Lease liabilities | 5,600 | |||||
IFRS 16 | Maximum | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Lease liabilities | 6,600 | |||||
Last mile arrangements | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Lease initial contractual period | 6 months | |||||
FTTP | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Lease initial contractual period | 12 months | |||||
Consumer | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | £ 948 | 944 | 814 | |||
Consumer | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | (104) | (64) | ||||
Increase (decrease) in adjusted EBITDA | (203) | (171) | ||||
Increase (decrease) in depreciation and amortisation | 6 | 21 | ||||
Increase (decrease) in operating profit | (209) | (192) | ||||
Openreach | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 2,108 | 2,081 | 1,699 | |||
Openreach | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in adjusted EBITDA | 321 | 318 | ||||
Increase (decrease) in depreciation and amortisation | (70) | (71) | ||||
Increase (decrease) in operating profit | 391 | 389 | ||||
Openreach | Transfer of Northern Ireland Networks business from Enterprise to Openreach and reclassification of Ventures businesses internal revenue | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | 155 | |||||
Increase (decrease) in adjusted EBITDA | 95 | |||||
Increase (decrease) in operating profit | 54 | |||||
Other | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 180 | 142 | 134 | |||
Other | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in adjusted EBITDA | 23 | (5) | ||||
Increase (decrease) in depreciation and amortisation | 1 | |||||
Increase (decrease) in operating profit | 23 | (6) | ||||
Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 501 | 551 | 597 | |||
Enterprise | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | 104 | 64 | ||||
Increase (decrease) in adjusted EBITDA | (80) | (82) | ||||
Increase (decrease) in depreciation and amortisation | 56 | 41 | ||||
Increase (decrease) in operating profit | (136) | (123) | ||||
Enterprise | Transfer of Northern Ireland Networks business from Enterprise to Openreach and reclassification of Ventures businesses internal revenue | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | (117) | |||||
Increase (decrease) in adjusted EBITDA | (95) | |||||
Increase (decrease) in operating profit | (54) | |||||
Enterprise | Reclassification of Ventures businesses internal revenue | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | 224 | |||||
Global | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 223 | 245 | 278 | |||
Global | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in adjusted EBITDA | (61) | (60) | ||||
Increase (decrease) in depreciation and amortisation | 8 | 8 | ||||
Increase (decrease) in operating profit | (69) | (68) | ||||
Intangible assets | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 790 | 680 | 642 | |||
Intangible assets | Consumer | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 291 | 272 | 224 | |||
Intangible assets | Consumer | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | (4) | (12) | ||||
Intangible assets | Openreach | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 103 | 82 | 70 | |||
Intangible assets | Other | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 55 | 49 | 64 | |||
Intangible assets | Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 218 | 184 | 192 | |||
Intangible assets | Enterprise | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 4 | 12 | ||||
Intangible assets | Global | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 123 | 93 | 92 | |||
Property, plant and equipment | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 3,170 | 3,283 | 2,880 | |||
Property, plant and equipment | Consumer | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 657 | 672 | 590 | |||
Property, plant and equipment | Consumer | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | (46) | (93) | ||||
Property, plant and equipment | Openreach | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 2,005 | 1,999 | 1,629 | |||
Property, plant and equipment | Openreach | Transfer of Northern Ireland Networks business from Enterprise to Openreach | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 41 | |||||
Property, plant and equipment | Other | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 125 | 93 | 70 | |||
Property, plant and equipment | Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 283 | 367 | 405 | |||
Property, plant and equipment | Enterprise | Overhead allocation change and transfer of Emergency Services Network contract from Consumer to Enterprise | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 46 | 93 | ||||
Property, plant and equipment | Enterprise | Transfer of Northern Ireland Networks business from Enterprise to Openreach | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | (41) | |||||
Property, plant and equipment | Global | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in capital expenditure | 100 | 152 | 186 | |||
Internal Revenue and Costs | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | 3,131 | 3,341 | 3,560 | |||
Enterprise | Internal Revenue and Costs | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | 276 | 359 | 441 | |||
Enterprise | Internal Revenue and Costs | Reclassification of Ventures businesses internal revenue | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | 224 | |||||
Openreach | Internal Revenue and Costs | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | £ 2,753 | £ 2,875 | 3,016 | |||
Openreach | Internal Revenue and Costs | Transfer of Northern Ireland Networks business from Enterprise to Openreach | ||||||
Disclosure Of Basis Of Preparation Of Financial Statements [Line Items] | ||||||
Increase (decrease) in segment/internal revenue | £ 38 | |||||
[1] | Right-of-use assets and lease liabilities arise following adoption of IFRS 16 on 1 April 2019. See note 1 to the consolidated financial statements. |
Basis of Preparation - Reconcil
Basis of Preparation - Reconciliation of Operating Lease Commitments Disclosed at 31 March 2019 to Lease Liabilities Recognised at 1 April 2019 (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of initial application of standards or interpretations [line items] | ||||
Operating lease commitments disclosed as at 31 March 2019 | £ 6,619 | |||
Additional lease liabilities recognised as a result of IFRS 16 | £ 6,560 | £ 6,269 | ||
Existing finance leases | 206 | £ 206 | £ 223 | |
Lease liabilities | £ 6,560 | 6,269 | ||
IFRS 16 | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Arrangements not considered to be a lease under IAS 17 & IFRIC 4 | 74 | |||
Adjustments as a result of different treatment of extension & termination options | 437 | |||
Short-term & low value leases recognised as an expense on a straight-line basis | (8) | |||
Effect of discounting under the group's incremental borrowing rate | (901) | |||
Other | (158) | |||
Additional lease liabilities recognised as a result of IFRS 16 | 6,063 | |||
Lease liabilities | £ 6,063 |
Basis of Preparation - Impact o
Basis of Preparation - Impact on the Balance Sheet of the Transition to IFRS 16 (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Non-current assets | |||||||
Right-of-use assets | £ 5,391 | [1] | £ 5,155 | ||||
Intangible assets | 13,889 | 14,315 | £ 14,385 | £ 14,447 | |||
Property, plant and equipment | 18,474 | 17,801 | 17,835 | 17,000 | |||
Deferred tax assets | 300 | 1,349 | 1,347 | 1,326 | |||
Other non-current assets | 2,276 | 2,276 | |||||
Non-current assets | 41,075 | 40,896 | 35,843 | 34,493 | |||
Current assets | |||||||
Trade and other receivables | 2,704 | 3,172 | 3,222 | 4,014 | |||
Other current assets | 7,222 | 7,222 | |||||
Current assets | 11,992 | 10,394 | 10,444 | 8,349 | |||
Current liabilities | |||||||
Lease liabilities | 812 | [1] | 725 | ||||
Loans and other borrowings | 2,842 | 2,084 | 2,100 | 2,281 | |||
Trade and other payables | 5,794 | 5,881 | 5,790 | 7,168 | |||
Contract liabilities | 972 | 1,191 | 1,225 | ||||
Provisions | 288 | 407 | 424 | 603 | |||
Other current liabilities | 63 | 63 | |||||
Current liabilities | 10,986 | 10,351 | 9,602 | 10,185 | |||
Total assets less current liabilities | 42,081 | 40,939 | 36,685 | 32,657 | |||
Non-current liabilities | |||||||
Lease liabilities | 5,748 | [1] | 5,544 | ||||
Loans and other borrowings | 16,492 | 14,586 | 14,776 | 11,994 | |||
Contract liabilities | 179 | 188 | 200 | ||||
Other payables | 754 | 654 | 1,479 | 1,326 | |||
Provisions | 431 | 390 | 582 | 452 | |||
Other non-current liabilities | 9,481 | 9,481 | |||||
Non-current liabilities | 27,318 | 30,843 | 26,518 | 22,746 | |||
Equity | |||||||
Retained earnings | 9,759 | 3,848 | 3,919 | 1,366 | |||
All other reserves and equity | 6,248 | 6,248 | |||||
Total equity | 14,763 | 10,096 | 10,167 | 9,911 | £ 8,335 | ||
Total equity and liabilities | £ 42,081 | 40,939 | £ 36,685 | £ 32,657 | |||
IFRS 16 opening balance adjustment | |||||||
Non-current assets | |||||||
Right-of-use assets | [1] | 5,200 | |||||
Adjustment | IFRS 16 opening balance adjustment | |||||||
Non-current assets | |||||||
Right-of-use assets | 5,155 | ||||||
Intangible assets | (70) | ||||||
Property, plant and equipment | (34) | ||||||
Deferred tax assets | 2 | ||||||
Other non-current assets | 0 | ||||||
Non-current assets | 5,053 | ||||||
Current assets | |||||||
Trade and other receivables | (50) | ||||||
Other current assets | 0 | ||||||
Current assets | (50) | ||||||
Current liabilities | |||||||
Lease liabilities | 725 | ||||||
Loans and other borrowings | (16) | ||||||
Trade and other payables | 91 | ||||||
Contract liabilities | (34) | ||||||
Provisions | (17) | ||||||
Other current liabilities | 0 | ||||||
Current liabilities | 749 | ||||||
Total assets less current liabilities | 4,254 | ||||||
Non-current liabilities | |||||||
Lease liabilities | 5,544 | ||||||
Loans and other borrowings | (190) | ||||||
Contract liabilities | (12) | ||||||
Other payables | (825) | ||||||
Provisions | (192) | ||||||
Other non-current liabilities | 0 | ||||||
Non-current liabilities | 4,325 | ||||||
Equity | |||||||
Retained earnings | (71) | ||||||
All other reserves and equity | 0 | ||||||
Total equity | (71) | ||||||
Total equity and liabilities | £ 4,254 | ||||||
[1] | Right-of-use assets and lease liabilities arise following adoption of IFRS 16 on 1 April 2019. See note 1 to the consolidated financial statements. |
Segment Information - Summary o
Segment Information - Summary of Results of Reportable Segments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Disclosure of operating segments [line items] | ||||
Revenue | £ 22,905 | £ 23,428 | £ 23,723 | |
Operating profit (loss) | 3,283 | 3,421 | 3,381 | |
Net finance expense | (897) | (756) | (764) | |
Share of post tax profit (loss) of associates and joint ventures | (33) | 1 | (1) | |
Profit (loss) before taxation | 2,353 | 2,666 | 2,616 | |
Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 22,824 | 23,459 | 23,746 | |
Adjusted EBITDA | 7,907 | 7,392 | 7,505 | |
Depreciation and amortisation | (4,296) | (3,546) | (3,514) | |
Operating profit (loss) | 3,611 | 3,846 | 3,991 | |
Net finance expense | (757) | (617) | (546) | |
Share of post tax profit (loss) of associates and joint ventures | 6 | 1 | (1) | |
Profit (loss) before taxation | 2,860 | 3,230 | 3,444 | |
Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | [1] | 81 | (31) | (23) |
Operating profit (loss) | [1] | (328) | (425) | (610) |
Net finance expense | [1] | (140) | (139) | (218) |
Share of post tax profit (loss) of associates and joint ventures | [1] | (39) | ||
Profit (loss) before taxation | [1] | (507) | (564) | (828) |
Segment revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 25,955 | 26,800 | 27,306 | |
Internal revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | (3,131) | (3,341) | (3,560) | |
Consumer | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 10,286 | 10,484 | 10,193 | |
Adjusted EBITDA | 2,426 | 2,331 | 2,205 | |
Depreciation and amortisation | (1,278) | (1,030) | (1,013) | |
Operating profit (loss) | 1,148 | 1,301 | 1,192 | |
Consumer | Segment revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 10,388 | 10,591 | 10,296 | |
Consumer | Internal revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | (102) | (107) | (103) | |
Enterprise | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 5,817 | 6,037 | 6,270 | |
Adjusted EBITDA | 1,965 | 1,910 | 1,995 | |
Depreciation and amortisation | (719) | (690) | (676) | |
Operating profit (loss) | 1,246 | 1,220 | 1,319 | |
Enterprise | Segment revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 6,093 | 6,396 | 6,711 | |
Enterprise | Internal revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | (276) | (359) | (441) | |
Global | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 4,361 | 4,735 | 5,013 | |
Adjusted EBITDA | 634 | 444 | 374 | |
Depreciation and amortisation | (479) | (378) | (432) | |
Operating profit (loss) | 155 | 66 | (58) | |
Global | Segment revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 4,361 | 4,735 | 5,013 | |
Global | Internal revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 0 | 0 | 0 | |
Openreach | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 2,359 | 2,200 | 2,262 | |
Adjusted EBITDA | 2,858 | 2,744 | 2,933 | |
Depreciation and amortisation | (1,712) | (1,398) | (1,330) | |
Operating profit (loss) | 1,146 | 1,346 | 1,603 | |
Openreach | Segment revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 5,112 | 5,075 | 5,278 | |
Openreach | Internal revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | (2,753) | (2,875) | (3,016) | |
Other | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1 | 3 | 8 | |
Adjusted EBITDA | 24 | (37) | (2) | |
Depreciation and amortisation | (108) | (50) | (63) | |
Operating profit (loss) | (84) | (87) | (65) | |
Other | Segment revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1 | 3 | 8 | |
Other | Internal revenue | Before Specific Items | ||||
Disclosure of operating segments [line items] | ||||
Revenue | £ 0 | £ 0 | £ 0 | |
[1] | For a definition of specific items, see page 204. An analysis of specific items is provided in note 9. |
Segment Information - Summary_2
Segment Information - Summary of Results of Internal Revenue and Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Internal revenue | £ 22,905 | £ 23,428 | £ 23,723 |
Internal cost | 19,622 | 20,007 | 20,342 |
Internal Revenue and Costs | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 3,131 | 3,341 | 3,560 |
Internal cost | 3,131 | 3,341 | 3,560 |
Internal Revenue and Costs | Consumer | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 910 | 983 | 1,026 |
Internal cost | 910 | 983 | 1,026 |
Internal Revenue and Costs | Enterprise | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 442 | 470 | 545 |
Internal cost | 442 | 470 | 545 |
Internal Revenue and Costs | Global | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 172 | 183 | 196 |
Internal cost | 172 | 183 | 196 |
Internal Revenue and Costs | Openreach | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 86 | 177 | 173 |
Internal cost | 86 | 177 | 173 |
Internal Revenue and Costs | Other Segment | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 1,521 | 1,528 | 1,620 |
Internal cost | 1,521 | 1,528 | 1,620 |
Internal Revenue and Costs | Consumer | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 102 | 107 | 103 |
Internal cost | 102 | 107 | 103 |
Internal Revenue and Costs | Consumer | Enterprise | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 63 | 69 | 65 |
Internal cost | 63 | 69 | 65 |
Internal Revenue and Costs | Consumer | Global | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 21 | 20 | 20 |
Internal cost | 21 | 20 | 20 |
Internal Revenue and Costs | Consumer | Openreach | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 0 | 0 | 0 |
Internal cost | 0 | 0 | 0 |
Internal Revenue and Costs | Consumer | Other Segment | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 18 | 18 | 18 |
Internal cost | 18 | 18 | 18 |
Internal Revenue and Costs | Enterprise | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 276 | 359 | 441 |
Internal cost | 276 | 359 | 441 |
Internal Revenue and Costs | Enterprise | Consumer | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 64 | 63 | 130 |
Internal cost | 64 | 63 | 130 |
Internal Revenue and Costs | Enterprise | Global | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 54 | 51 | 51 |
Internal cost | 54 | 51 | 51 |
Internal Revenue and Costs | Enterprise | Openreach | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 86 | 177 | 173 |
Internal cost | 86 | 177 | 173 |
Internal Revenue and Costs | Enterprise | Other Segment | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 72 | 68 | 87 |
Internal cost | 72 | 68 | 87 |
Internal Revenue and Costs | Global | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 0 | 0 | 0 |
Internal cost | 0 | 0 | 0 |
Internal Revenue and Costs | Global | Consumer | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 0 | 0 | 0 |
Internal cost | 0 | 0 | 0 |
Internal Revenue and Costs | Global | Enterprise | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 0 | 0 | 0 |
Internal cost | 0 | 0 | 0 |
Internal Revenue and Costs | Global | Openreach | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 0 | 0 | 0 |
Internal cost | 0 | 0 | 0 |
Internal Revenue and Costs | Global | Other Segment | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 0 | 0 | 0 |
Internal cost | 0 | 0 | 0 |
Internal Revenue and Costs | Openreach | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 2,753 | 2,875 | 3,016 |
Internal cost | 2,753 | 2,875 | 3,016 |
Internal Revenue and Costs | Openreach | Consumer | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 846 | 920 | 896 |
Internal cost | 846 | 920 | 896 |
Internal Revenue and Costs | Openreach | Enterprise | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 379 | 401 | 480 |
Internal cost | 379 | 401 | 480 |
Internal Revenue and Costs | Openreach | Global | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 97 | 112 | 125 |
Internal cost | 97 | 112 | 125 |
Internal Revenue and Costs | Openreach | Other Segment | |||
Disclosure of operating segments [line items] | |||
Internal revenue | 1,431 | 1,442 | 1,515 |
Internal cost | £ 1,431 | £ 1,442 | £ 1,515 |
Segment Information - Summary_3
Segment Information - Summary of Capital Expenditure (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Capital expenditure | £ 3,960 | £ 3,963 | £ 3,522 |
Acquisition of spectrum | 304 | ||
Capital expenditure including spectrum | 4,267 | ||
Consumer | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 948 | 944 | 814 |
Acquisition of spectrum | 0 | ||
Capital expenditure including spectrum | 944 | ||
Enterprise | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 501 | 551 | 597 |
Acquisition of spectrum | 0 | ||
Capital expenditure including spectrum | 551 | ||
Global | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 223 | 245 | 278 |
Acquisition of spectrum | 0 | ||
Capital expenditure including spectrum | 245 | ||
Openreach | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 2,108 | 2,081 | 1,699 |
Acquisition of spectrum | 0 | ||
Capital expenditure including spectrum | 2,081 | ||
Other | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 180 | 142 | 134 |
Acquisition of spectrum | 304 | ||
Capital expenditure including spectrum | 446 | ||
Intangible assets | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 790 | 680 | 642 |
Intangible assets | Consumer | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 291 | 272 | 224 |
Intangible assets | Enterprise | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 218 | 184 | 192 |
Intangible assets | Global | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 123 | 93 | 92 |
Intangible assets | Openreach | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 103 | 82 | 70 |
Intangible assets | Other | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 55 | 49 | 64 |
Property, plant and equipment | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 3,170 | 3,283 | 2,880 |
Property, plant and equipment | Consumer | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 657 | 672 | 590 |
Property, plant and equipment | Enterprise | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 283 | 367 | 405 |
Property, plant and equipment | Global | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 100 | 152 | 186 |
Property, plant and equipment | Openreach | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 2,005 | 1,999 | 1,629 |
Property, plant and equipment | Other | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | £ 125 | £ 93 | £ 70 |
Segment Information - Summary_4
Segment Information - Summary of Geographic Information by Revenue from External Customers and Non-Current Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of geographical areas [Line Items] | |||
Revenue | £ 22,905 | £ 23,428 | £ 23,723 |
Non-current assets | 38,526 | 32,961 | 31,802 |
Contract assets | 279 | 249 | |
Before Specific Items | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | 22,824 | 23,459 | 23,746 |
UK | |||
Disclosure of geographical areas [Line Items] | |||
Non-current assets | 35,597 | 30,295 | 28,835 |
UK | Before Specific Items | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | 19,401 | 19,683 | 19,687 |
Europe, Middle East and Africa, excluding the UK | |||
Disclosure of geographical areas [Line Items] | |||
Non-current assets | 2,347 | 2,218 | 2,527 |
Europe, Middle East and Africa, excluding the UK | Before Specific Items | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | 1,904 | 2,280 | 2,489 |
Americas | |||
Disclosure of geographical areas [Line Items] | |||
Non-current assets | 384 | 338 | 331 |
Americas | Before Specific Items | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | 924 | 936 | 996 |
Asia Pacific | |||
Disclosure of geographical areas [Line Items] | |||
Non-current assets | 198 | 110 | 109 |
Asia Pacific | Before Specific Items | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | £ 595 | £ 560 | £ 574 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue From Contracts With Customers (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | £ 22,905 | £ 23,428 | £ 23,723 |
Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 22,824 | 23,459 | 23,746 |
Specific Items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 81 | (31) | (23) |
Consumer | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 10,286 | 10,484 | |
Enterprise | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 5,817 | 6,037 | |
Global | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 4,361 | 4,735 | |
Openreach | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 2,359 | 2,200 | |
Other | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1 | 3 | |
ICT and managed networks | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 4,406 | 4,849 | 5,530 |
ICT and managed networks | Consumer | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 0 | 0 | |
ICT and managed networks | Enterprise | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 2,207 | 2,236 | |
ICT and managed networks | Global | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 2,199 | 2,613 | |
ICT and managed networks | Openreach | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 0 | 0 | |
ICT and managed networks | Other | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 0 | 0 | |
Fixed access subscriptions | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 9,095 | 9,242 | |
Fixed access subscriptions | Consumer | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 4,443 | 4,564 | |
Fixed access subscriptions | Enterprise | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 2,007 | 2,181 | |
Fixed access subscriptions | Global | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 352 | 362 | |
Fixed access subscriptions | Openreach | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 2,293 | 2,135 | |
Fixed access subscriptions | Other | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 0 | 0 | |
Mobile subscriptions | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 5,090 | 5,273 | |
Mobile subscriptions | Consumer | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 3,807 | 3,866 | |
Mobile subscriptions | Enterprise | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,199 | 1,277 | |
Mobile subscriptions | Global | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 84 | 130 | |
Mobile subscriptions | Openreach | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 0 | 0 | |
Mobile subscriptions | Other | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 0 | 0 | |
Equipment and other services | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 4,233 | 4,095 | |
Equipment and other services | Consumer | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 2,036 | 2,054 | |
Equipment and other services | Enterprise | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 404 | 343 | |
Equipment and other services | Global | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,726 | 1,630 | |
Equipment and other services | Openreach | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 66 | 65 | |
Equipment and other services | Other | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | £ 1 | £ 3 | |
Broadband and TV | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 4,655 | ||
Mobile | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 6,451 | ||
Calls, lines and connections | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 5,126 | ||
Transit | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 265 | ||
Other products and services | Revenue before specific items | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | £ 1,719 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue From Contract With Customers [Line Items] | ||
Revenue expected to be recognised in future periods | £ 13,750 | £ 14,296 |
Operating lease income | 2,297 | |
Income from subleasing right-of-use assets | 41 | |
Contract liability recognised as revenue | 1,094 | 1,216 |
Impairment losses on contract assets | 59 | 36 |
ICT and Managed Networks and Equipment and Other Services | ||
Revenue From Contract With Customers [Line Items] | ||
Revenue expected to be recognised in future periods | £ 8,191 | 9,425 |
Expected revenue recognition period | 3 years | |
Fixed Access and Mobile Subscription | ||
Revenue From Contract With Customers [Line Items] | ||
Revenue expected to be recognised in future periods | £ 5,559 | £ 4,871 |
Expected revenue recognition period | 2 years | |
Specific items related to COVID-19 | ||
Revenue From Contract With Customers [Line Items] | ||
Impairment losses on contract assets | £ 21 |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities Recognised (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 |
Contract assets | |||
Current | £ 1,442 | £ 1,353 | |
Non-current | 279 | 249 | |
Contract assets | 1,721 | 1,602 | |
Contract liabilities | |||
Current | 972 | £ 1,191 | 1,225 |
Non-current | 179 | £ 188 | 200 |
Contract liabilities | £ 1,151 | £ 1,425 |
Operating Costs - Summary of Op
Operating Costs - Summary of Operating Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Staff costs: | ||||
Share-based payment expense | £ 72 | £ 67 | £ 84 | |
Depreciation of right-of-use assets | 649 | |||
Total operating costs | 19,622 | 20,007 | 20,342 | |
Before Specific Items | ||||
Staff costs: | ||||
Wages and salaries | 4,203 | 4,264 | 4,229 | |
Social security costs | 426 | 440 | 461 | |
Other pension costs | 626 | 611 | 624 | |
Share-based payment expense | 72 | 67 | 84 | |
Total staff costs | 5,327 | 5,382 | 5,398 | |
Own work capitalised | (903) | (834) | (798) | |
Net staff costs | 4,424 | 4,548 | 4,600 | |
Net indirect labour costs | 354 | 267 | 315 | |
Net labour costs | 4,778 | 4,815 | 4,915 | |
Product costs and sales commissions | 4,440 | 4,464 | 4,429 | |
Payments to telecommunications operators | 1,749 | 2,059 | 2,306 | |
Property and energy costs | 1,004 | 1,325 | 1,285 | |
Network operating and IT costs | 898 | 1,026 | 963 | |
TV programme rights charges | 870 | 841 | 763 | |
Provision and installation | 604 | 624 | 657 | |
Marketing and sales | 303 | 322 | 317 | |
Other operating costs | 494 | 831 | 830 | |
Other operating income | (223) | (240) | (224) | |
Depreciation of right-of-use assets | 671 | |||
Amortisation of intangible assets | 1,173 | 1,154 | 1,123 | |
Total operating costs | 19,213 | 19,613 | 19,755 | |
Operating costs before specific items include the following: | ||||
Leaver costs | 15 | 17 | 50 | |
Research and development expenditure | 662 | 643 | 632 | |
Operating lease charges | 0 | 801 | 732 | |
Foreign currency gains | (12) | (11) | 0 | |
Inventories recognised as an expense | 2,447 | 2,388 | 2,588 | |
Government grants | 0 | (3) | (3) | |
Specific Items | ||||
Staff costs: | ||||
Total operating costs | [1] | 409 | 394 | 587 |
Owned assets | Before Specific Items | ||||
Staff costs: | ||||
Depreciation of owned assets/Held under finance lease | £ 2,452 | 2,390 | 2,381 | |
Held under finance leases | Before Specific Items | ||||
Staff costs: | ||||
Depreciation of owned assets/Held under finance lease | £ 2 | £ 10 | ||
[1] | For a definition of specific items, see page 204. An analysis of specific items is provided in note 9. |
Operating Costs - Summary of _2
Operating Costs - Summary of Operating Costs, Footnotes (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Before Specific Items | |||
Disclosure Of Operating Costs [Line Items] | |||
Net of capitalised indirect labour costs | £ 675 | £ 672 | £ 612 |
Research and development expenditure | 662 | 643 | 632 |
Before Specific Items | Capitalised Development Costs | |||
Disclosure Of Operating Costs [Line Items] | |||
Research and development expenditure | 599 | 581 | 573 |
Before Specific Items | Operating expenses | |||
Disclosure Of Operating Costs [Line Items] | |||
Research and development expenditure | 63 | 62 | 59 |
Before Specific Items | Software Development Costs | |||
Disclosure Of Operating Costs [Line Items] | |||
Capitalised software development costs | 476 | 472 | 450 |
Specific Items | |||
Disclosure Of Operating Costs [Line Items] | |||
Restructuring charges | 322 | 386 | 287 |
Specific Items | Leaver Costs Associated With Restructuring and Integration | |||
Disclosure Of Operating Costs [Line Items] | |||
Restructuring charges | 197 | £ 257 | £ 168 |
Right-of-use assets | Specific Items | |||
Disclosure Of Operating Costs [Line Items] | |||
Reversal of impairment | £ 22 |
Operating Costs - Summary of Co
Operating Costs - Summary of Compensation of Key Management Personnel (Detail) - GBP (£) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Operating Costs [Abstract] | |||
Short-term employee benefits | £ 9,600,000 | £ 13,500,000 | £ 11,800,000 |
Post employment benefits | 1,000,000 | 1,200,000 | 1,300,000 |
Share-based payments | 7,100,000 | 5,000,000 | 6,200,000 |
Termination benefits | 0 | 600,000 | 2,200,000 |
Compensation of key management personnel | 17,700,000 | 20,300,000 | 21,500,000 |
Cash bonuses | £ 0 | £ 3,800,000 | £ 3,200,000 |
Employees - Summary of Number o
Employees - Summary of Number of Employees in the Group (Detail) - employee | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 105,300 | 106,700 | 105,800 |
Average | 105,400 | 106,500 | 106,200 |
Consumer | |||
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 19,600 | 19,700 | 18,200 |
Average | 19,700 | 19,000 | 18,000 |
Enterprise | |||
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 12,200 | 13,400 | 13,200 |
Average | 12,800 | 13,800 | 13,500 |
Global | |||
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 16,300 | 16,600 | 16,900 |
Average | 16,500 | 16,800 | 17,300 |
Openreach | |||
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 35,000 | 33,200 | 31,200 |
Average | 34,100 | 31,900 | 31,100 |
Other | |||
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 22,200 | 23,800 | 26,300 |
Average | 22,300 | 25,000 | 26,300 |
UK | |||
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 82,600 | 84,300 | 82,200 |
Average | 82,800 | 83,400 | 82,500 |
Non-UK | |||
Disclosure Of Number And Average Number Of Employees [Line Items] | |||
Year end | 22,700 | 22,400 | 23,600 |
Average | 22,600 | 23,100 | 23,700 |
Audit, Audit Related and Othe_3
Audit, Audit Related and Other Non-Audit Services - Summary of Fees Paid or Payable to Company's Auditors (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Auditor Remuneration [Line Items] | |||
Fees payable to the company's auditors and its associates for audit services | £ 16,861 | £ 14,226 | £ 11,295 |
Other non-audit services fees | 475 | 958 | 803 |
Total services | 19,752 | 17,420 | 13,869 |
The audit of the parent company and the consolidated financial statements | |||
Auditor Remuneration [Line Items] | |||
Fees payable to the company's auditors and its associates for audit services | 10,546 | 8,165 | 5,418 |
The audit of the company’s subsidiaries | |||
Auditor Remuneration [Line Items] | |||
Fees payable to the company's auditors and its associates for audit services | 6,315 | 6,061 | 5,877 |
Audit related assurance services | |||
Auditor Remuneration [Line Items] | |||
Audit related assurance services | 2,416 | 2,236 | 1,771 |
All other assurance services | |||
Auditor Remuneration [Line Items] | |||
Other non-audit services fees | 228 | 748 | 211 |
All other services | |||
Auditor Remuneration [Line Items] | |||
Other non-audit services fees | £ 247 | £ 210 | £ 592 |
Audit, Audit Related and Othe_4
Audit, Audit Related and Other Non-Audit Services - Summary of Fees Paid or Payable to Company's Auditors, Footnotes (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Audit services fees | £ 16,861 | £ 14,226 | £ 11,295 |
Amounts for Audit of BT Group Employee Share Ownership Trust and Ilford Trustees (Jersey) Limited | |||
Disclosure of transactions between related parties [line items] | |||
Audit services fees | £ 20 | £ 32 |
Audit, Audit Related and Othe_5
Audit, Audit Related and Other Non-Audit Services - Additional Information (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Auditor Remuneration [Line Items] | |||
Total fees paid to auditors | £ 19,752 | £ 17,420 | £ 13,869 |
BTPS | |||
Auditor Remuneration [Line Items] | |||
Total fees paid to auditors | £ 830 | £ 1,120 | £ 2,137 |
Audit, Audit Related and Othe_6
Audit, Audit Related and Other Non-Audit Services - Summary of Total Fees Received by Company's Auditors from the BT Pension Scheme (Detail) - GBP (£) £ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Auditor Remuneration [Line Items] | |||
Audit services fees | £ 16,861 | £ 14,226 | £ 11,295 |
Audit-related assurance services | 475 | 958 | 803 |
Total services | 19,752 | 17,420 | 13,869 |
BTPS | |||
Auditor Remuneration [Line Items] | |||
Total services | 830 | 1,120 | 2,137 |
BTPS | Audit of financial statements of associates | |||
Auditor Remuneration [Line Items] | |||
Audit services fees | 819 | 1,005 | 345 |
Audit-related assurance services | BTPS | |||
Auditor Remuneration [Line Items] | |||
Audit-related assurance services | 9 | 53 | 0 |
Taxation compliance services | BTPS | |||
Auditor Remuneration [Line Items] | |||
Other non-audit tax services fees | 0 | 0 | 153 |
Taxation advisory services | BTPS | |||
Auditor Remuneration [Line Items] | |||
Other non-audit tax services fees | 0 | 0 | 1,074 |
Other non-audit services | |||
Auditor Remuneration [Line Items] | |||
Audit-related assurance services | 247 | 210 | 592 |
Other non-audit services | BTPS | |||
Auditor Remuneration [Line Items] | |||
Audit-related assurance services | £ 2 | £ 62 | £ 565 |
Specific Items - Summary of Spe
Specific Items - Summary of Specific Items (Detail) - GBP (£) | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenue | ||||
Total revenue | £ (22,905,000,000) | £ (23,428,000,000) | £ (23,723,000,000) | |
Operating costs | ||||
Total operating costs | 19,622,000,000 | 20,007,000,000 | 20,342,000,000 | |
Operating loss | (3,283,000,000) | (3,421,000,000) | (3,381,000,000) | |
Net finance expense | ||||
Net finance expense before specific items | 897,000,000 | 756,000,000 | 764,000,000 | |
Net specific items charge before tax | (2,353,000,000) | (2,666,000,000) | (2,616,000,000) | |
Taxation | ||||
Total taxation | 619,000,000 | 507,000,000 | 584,000,000 | |
Net specific items charge after tax | (1,734,000,000) | (2,159,000,000) | (2,032,000,000) | |
Specific Items | ||||
Revenue | ||||
Retrospective regulatory matters | (81,000,000) | 31,000,000 | 23,000,000 | |
Total revenue | [1] | (81,000,000) | 31,000,000 | 23,000,000 |
Operating costs | ||||
Restructuring charges | 322,000,000 | 386,000,000 | 287,000,000 | |
Divestment-related items | 199,000,000 | 5,000,000 | (1,000,000) | |
Covid-19 | 95,000,000 | |||
Property rationalisation | (131,000,000) | 36,000,000 | 28,000,000 | |
Spectrum annual licence fee refund | (82,000,000) | 0 | 0 | |
Retrospective regulatory matters | 9,000,000 | (4,000,000) | 26,000,000 | |
Italian business investigation | 2,000,000 | (55,000,000) | 22,000,000 | |
Provision for claims | (5,000,000) | 0 | 0 | |
Pension equalisation costs | 0 | 26,000,000 | 0 | |
EE acquisition warranty claims | 0 | 0 | 225,000,000 | |
Total operating costs | [1] | 409,000,000 | 394,000,000 | 587,000,000 |
Operating loss | [1] | 328,000,000 | 425,000,000 | 610,000,000 |
Net finance expense | ||||
Interest expense on retirement benefit obligation | 145,000,000 | 139,000,000 | 218,000,000 | |
Interest on spectrum annual license fee refund | (5,000,000) | 0 | 0 | |
Net finance expense before specific items | [1] | 140,000,000 | 139,000,000 | 218,000,000 |
Associates and joint ventures | 39,000,000 | 0 | 0 | |
Net specific items charge before tax | [1] | 507,000,000 | 564,000,000 | 828,000,000 |
Taxation | ||||
Tax credit on specific items above | (73,000,000) | (112,000,000) | (87,000,000) | |
Tax charge on re-measurement of deferred tax | 156,000,000 | 0 | 0 | |
Total taxation | [1] | 83,000,000 | (112,000,000) | (87,000,000) |
Net specific items charge after tax | [1] | £ 590,000,000 | £ 452,000,000 | £ 741,000,000 |
[1] | For a definition of specific items, see page 204. An analysis of specific items is provided in note 9. |
Specific Items - Additional Inf
Specific Items - Additional Information (Detail) - GBP (£) | May 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Specific Items [Line Items] | |||||
Increase in expected credit losses on receivables due from customers | £ 213,000,000 | £ 95,000,000 | £ 129,000,000 | ||
Contract loss provisions | 10,000,000 | 25,000,000 | |||
Net tax charge (credit) | 619,000,000 | 507,000,000 | 584,000,000 | ||
Specific Items | |||||
Disclosure Of Specific Items [Line Items] | |||||
Restructuring charges | 322,000,000 | 386,000,000 | 287,000,000 | ||
Divestment-related costs | 199,000,000 | 5,000,000 | (1,000,000) | ||
COVID-19-related costs | 95,000,000 | ||||
Increase in expected credit losses on receivables due from customers | 67,000,000 | ||||
Property rationalisation | (131,000,000) | 36,000,000 | 28,000,000 | ||
Interest on spectrum annual license fee refund | 5,000,000 | 0 | 0 | ||
Regulatory matters net charge(credit) | (72,000,000) | 27,000,000 | 49,000,000 | ||
Retrospective regulatory matters revenue | (81,000,000) | 31,000,000 | 23,000,000 | ||
Retrospective regulatory matters operating costs | 9,000,000 | (4,000,000) | 26,000,000 | ||
Italian business investigation | 2,000,000 | (55,000,000) | 22,000,000 | ||
Release of provision for claims | 5,000,000 | 0 | 0 | ||
Pension equalisation costs | 0 | 26,000,000 | 0 | ||
EE acquisition warranty claims | 0 | 0 | 225,000,000 | ||
Interest expense on retirement benefit obligation | 145,000,000 | 139,000,000 | 218,000,000 | ||
Impairment on receivable from associate | 39,000,000 | 0 | 0 | ||
Net tax charge (credit) | [1] | 83,000,000 | (112,000,000) | (87,000,000) | |
Tax charge on re-measurement of deferred tax | 156,000,000 | 0 | 0 | ||
Specific Items, EE integration costs | |||||
Disclosure Of Specific Items [Line Items] | |||||
Restructuring charges | 8,000,000 | 29,000,000 | 46,000,000 | ||
Specific items related to COVID-19 | |||||
Disclosure Of Specific Items [Line Items] | |||||
Increase in expected credit losses on receivables due from customers | 88,000,000 | ||||
Contract loss provisions | 7,000,000 | ||||
Specific items, Spectrum license refund | |||||
Disclosure Of Specific Items [Line Items] | |||||
Reimbursement of regulatory fee overpayment | £ 87,000,000 | ||||
France and Latin America divestments | Disposal groups classified as held for sale | Specific Items | |||||
Disclosure Of Specific Items [Line Items] | |||||
Impairment loss recognised in profit or loss | 127,000,000 | ||||
BT Fleet Solutions and Tikit | Specific Items | |||||
Disclosure Of Specific Items [Line Items] | |||||
Losses on disposals of investments | 36,000,000 | 5,000,000 | |||
Ongoing divestment projects | Specific Items | |||||
Disclosure Of Specific Items [Line Items] | |||||
Divestment-related costs | 36,000,000 | ||||
BT Centre | Specific items, property rationalisation | |||||
Disclosure Of Specific Items [Line Items] | |||||
Gains on disposals of property, plant and equipment | 115,000,000 | ||||
BTPS | Specific Items | |||||
Disclosure Of Specific Items [Line Items] | |||||
Restructuring charges | £ 22,000,000 | £ 23,000,000 | £ 0 | ||
[1] | For a definition of specific items, see page 204. An analysis of specific items is provided in note 9. |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2019 | |
Disclosure Of Income Tax Expense [Line Items] | ||||
Approximate percentage of provision under tax authority examination | 82.00% | |||
Provision for tax uncertainties included in current tax liabilities | £ 191 | £ 252 | ||
Downside tax sensitivity | 556 | |||
Deferred tax expense relating to tax rate changes | 156 | 0 | £ 0 | |
Decrease in accumulated deferred tax recognised in other comprehensive income due to change in tax rate | 110 | |||
Unused tax losses for which no deferred tax asset recognised | 4,200 | 4,200 | ||
Undistributed earnings | 9,759 | 3,919 | £ 1,366 | £ 3,848 |
UK | ||||
Disclosure Of Income Tax Expense [Line Items] | ||||
Unused tax losses for which no deferred tax asset recognised | 16,900 | 16,900 | ||
Additional tax that would be incurred if earnings were to be repatriated | 19.9 | 18.2 | ||
Non-UK | ||||
Disclosure Of Income Tax Expense [Line Items] | ||||
Undistributed earnings | 2,500 | £ 2,500 | ||
European Union | ||||
Disclosure Of Income Tax Expense [Line Items] | ||||
Undistributed earnings | 878 | |||
Additional income tax | 23.1 | |||
EE | ||||
Disclosure Of Income Tax Expense [Line Items] | ||||
Downside tax sensitivity | £ 474 |
Taxation - Analysis of Our Taxa
Taxation - Analysis of Our Taxation Expenses (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Income Tax Expense [Line Items] | |||
Total current tax expense | £ (513) | £ (502) | £ (584) |
Origination and reversal of temporary differences | 55 | (20) | 46 |
Adjustments in respect of earlier years | 0 | 2 | (57) |
Impact of change in UK corporation tax rate to 19% (2018/19: 17%, 2017/18: 17%) | (156) | 0 | 0 |
Remeasurement of temporary differences | (5) | 13 | 11 |
Total deferred taxation (expense) credit | (106) | (5) | 0 |
Total taxation expense | (619) | (507) | (584) |
UK | |||
Disclosure Of Income Tax Expense [Line Items] | |||
Corporation tax at 19% (2018/19: 19%, 2017/18: 19%) / Current | (495) | (434) | (578) |
Adjustments in respect of earlier years | 41 | (9) | 37 |
Non-UK | |||
Disclosure Of Income Tax Expense [Line Items] | |||
Corporation tax at 19% (2018/19: 19%, 2017/18: 19%) / Current | (58) | (74) | (66) |
Adjustments in respect of earlier years | £ (1) | £ 15 | £ 23 |
Taxation - Summary of Factors A
Taxation - Summary of Factors Affecting Our Taxation Expense for the Year (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Disclosure Of Factors Affecting Our Taxation Expense For The Year [Line Items] | ||||
Profit before taxation | £ 2,353 | £ 2,666 | £ 2,616 | |
Expected taxation expense at UK rate of 19% (2018/19: 19%, 2017/18: 19%) | (447) | (506) | (497) | |
Effects of: | ||||
(Higher) lower taxes on non-UK profits | (5) | (7) | (8) | |
Net permanent differences between tax and accounting | (40) | (36) | (100) | |
Adjustments in respect of earlier years | 40 | 8 | 3 | |
Prior year non-UK losses used against current year profits | 11 | 21 | 16 | |
Non-UK losses not recognised | (17) | 0 | (9) | |
Other deferred tax assets not recognised | 0 | 0 | 0 | |
Lower taxes on profit on disposal of business | 0 | 0 | 0 | |
Re-measurement of deferred tax balances | (161) | 13 | 11 | |
Other non-recurring items | 0 | 0 | 0 | |
Total taxation expense | (619) | (507) | (584) | |
Specific Items | ||||
Disclosure Of Factors Affecting Our Taxation Expense For The Year [Line Items] | ||||
Profit before taxation | [1] | (507) | (564) | (828) |
Effects of: | ||||
Total taxation expense | [1] | (83) | 112 | 87 |
Exclude specific items (note 9) | 83 | (112) | (87) | |
Before Specific Items | ||||
Disclosure Of Factors Affecting Our Taxation Expense For The Year [Line Items] | ||||
Profit before taxation | 2,860 | 3,230 | 3,444 | |
Effects of: | ||||
Total taxation expense | (536) | (619) | (671) | |
Total taxation expense before specific items | £ (536) | £ (619) | £ (671) | |
[1] | For a definition of specific items, see page 204. An analysis of specific items is provided in note 9. |
Taxation - Summary of Tax Compo
Taxation - Summary of Tax Components of Other Comprehensive Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Tax on items that will not be reclassified to the income statement | |||
Pension remeasurements | £ (808) | £ 384 | £ (263) |
Tax on items that have been or may be reclassified subsequently to the income statement | |||
Exchange differences on translation of foreign operations | (4) | (4) | (9) |
Fair value movements on cash flow hedges - net fair value gains or losses | (80) | (37) | 57 |
Fair value movements on cash flow hedges - recognised in income and expense | 0 | 0 | (47) |
Income tax relating to components of other comprehensive income | (892) | 343 | (262) |
Current tax credit | 267 | 395 | 203 |
Deferred tax (expense) credit | (1,159) | (52) | (465) |
Tax on other comprehensive income (loss) | £ (892) | £ 343 | £ (262) |
Taxation - Summary of Tax Com_2
Taxation - Summary of Tax Components of Other Comprehensive Income, Footnotes (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income tax relating to components of other comprehensive income [abstract] | |||
Current tax credit includes cash contributions made to reduce retirement benefit obligations | £ 271 | £ 391 | £ 212 |
Taxation - Summary of Tax (Expe
Taxation - Summary of Tax (Expense) Credit Recognised Directly in Equity (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Tax Expense Credit Recognised Directly In Equity [Abstract] | |||
Tax (expense) credit relating to share-based payments | £ 0 | £ 0 | £ (2) |
Taxation - Summary of Deferred
Taxation - Summary of Deferred Taxation (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||||
Beginning balance | £ 60 | £ 14 | ||
Expense (credit) recognised in the income statement | 106 | (5) | ||
Expense (credit) recognised in other comprehensive income | 1,159 | 52 | ||
Expense (credit) recognised in equity | (1) | |||
Exchange differences | 3 | 0 | ||
Transfer to held for sale (note 23) | (4) | |||
Transfer from current tax | (14) | |||
Ending balance | 1,308 | 60 | ||
Non-current | ||||
Deferred tax asset | (300) | (1,347) | £ (1,349) | £ (1,326) |
Deferred tax liability | 1,608 | 1,407 | 1,407 | £ 1,340 |
Tax on IFRS 16 opening balance adjustment | (2) | |||
Fixed asset temporary differences | ||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||||
Beginning balance | 1,400 | 1,460 | ||
Expense (credit) recognised in the income statement | 191 | (60) | ||
Expense (credit) recognised in other comprehensive income | 0 | 0 | ||
Expense (credit) recognised in equity | 0 | |||
Exchange differences | 1 | 0 | ||
Transfer to held for sale (note 23) | 0 | |||
Transfer from current tax | 0 | |||
Ending balance | 1,590 | 1,400 | ||
Non-current | ||||
Deferred tax asset | (17) | (27) | (29) | |
Deferred tax liability | 1,607 | 1,427 | 1,427 | |
Tax on IFRS 16 opening balance adjustment | (2) | |||
Retirement benefit obligations | ||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||||
Beginning balance | (1,210) | (1,166) | ||
Expense (credit) recognised in the income statement | (46) | (59) | ||
Expense (credit) recognised in other comprehensive income | 1,079 | 15 | ||
Expense (credit) recognised in equity | 0 | |||
Exchange differences | 1 | 0 | ||
Transfer to held for sale (note 23) | 0 | |||
Transfer from current tax | 0 | |||
Ending balance | (176) | (1,210) | ||
Non-current | ||||
Deferred tax asset | (176) | (1,210) | (1,210) | |
Deferred tax liability | 0 | 0 | 0 | |
Tax on IFRS 16 opening balance adjustment | 0 | |||
Share- based payments | ||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||||
Beginning balance | (6) | (7) | ||
Expense (credit) recognised in the income statement | (1) | 1 | ||
Expense (credit) recognised in other comprehensive income | 0 | 0 | ||
Expense (credit) recognised in equity | (1) | |||
Exchange differences | 0 | 1 | ||
Transfer to held for sale (note 23) | 0 | |||
Transfer from current tax | 0 | |||
Ending balance | (7) | (6) | ||
Non-current | ||||
Deferred tax asset | (7) | (6) | (6) | |
Deferred tax liability | 0 | 0 | 0 | |
Tax on IFRS 16 opening balance adjustment | 0 | |||
Tax losses | ||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||||
Beginning balance | (70) | (183) | ||
Expense (credit) recognised in the income statement | 2 | 114 | ||
Expense (credit) recognised in other comprehensive income | 0 | 0 | ||
Expense (credit) recognised in equity | 0 | |||
Exchange differences | 2 | (1) | ||
Transfer to held for sale (note 23) | 0 | |||
Transfer from current tax | 0 | |||
Ending balance | (66) | (70) | ||
Non-current | ||||
Deferred tax asset | (66) | (70) | (70) | |
Deferred tax liability | 0 | 0 | 0 | |
Tax on IFRS 16 opening balance adjustment | 0 | |||
Other | ||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||||
Beginning balance | (54) | (90) | ||
Expense (credit) recognised in the income statement | (40) | (1) | ||
Expense (credit) recognised in other comprehensive income | 80 | 37 | ||
Expense (credit) recognised in equity | 0 | |||
Exchange differences | (1) | 0 | ||
Transfer to held for sale (note 23) | (4) | |||
Transfer from current tax | (14) | |||
Ending balance | (33) | (54) | ||
Non-current | ||||
Deferred tax asset | (33) | (54) | (54) | |
Deferred tax liability | 0 | 0 | ||
Tax on IFRS 16 opening balance adjustment | 0 | |||
Jurisdictional offset | ||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||||
Beginning balance | 0 | 0 | ||
Expense (credit) recognised in the income statement | 0 | 0 | ||
Expense (credit) recognised in other comprehensive income | 0 | 0 | ||
Expense (credit) recognised in equity | 0 | |||
Exchange differences | 0 | 0 | ||
Transfer to held for sale (note 23) | 0 | |||
Transfer from current tax | 0 | |||
Ending balance | 0 | 0 | ||
Non-current | ||||
Deferred tax asset | (1) | 20 | 20 | |
Deferred tax liability | £ 1 | £ (20) | (20) | |
Tax on IFRS 16 opening balance adjustment | £ 0 |
Taxation - Summary of Deferre_2
Taxation - Summary of Deferred Taxation, Footnotes (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||||
Net deferred tax asset | £ (1,308) | £ (58) | £ (60) | £ (14) |
Defined Contribution Plan | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||||
Net deferred tax asset | £ 1 | £ 2 | £ 2 |
Taxation - Summary of Restricte
Taxation - Summary of Restricted Loss (Detail) £ in Millions | Mar. 31, 2020GBP (£) |
Disclosure Of Unrecognised Tax Losses And Other Temporary Differences [Line Items] | |
Total restricted losses | £ 260 |
Unrestricted operating losses | 3,827 |
Other temporary differences | 98 |
Total | 4,185 |
Europe | |
Disclosure Of Unrecognised Tax Losses And Other Temporary Differences [Line Items] | |
Total restricted losses | 1 |
Americas | |
Disclosure Of Unrecognised Tax Losses And Other Temporary Differences [Line Items] | |
Total restricted losses | 256 |
Other | |
Disclosure Of Unrecognised Tax Losses And Other Temporary Differences [Line Items] | |
Total restricted losses | £ 3 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - GBP (£) £ in Millions, shares in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings per share [abstract] | |||
Diluted earnings per share, share options (shares) | 36 | 36 | 23 |
Profit for the year | £ 1,734 | £ 2,159 | £ 2,032 |
Profit (loss), attributable to non-controlling interests | £ 2 | £ 3 | £ 4 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Calculation of the Total Diluted Number of Shares (Detail) - £ / shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings per share [abstract] | |||
Basic weighted average number of shares (shares) | 9,885 | 9,912 | 9,911 |
Dilutive shares from share options (shares) | 0 | 6 | 2 |
Dilutive shares from executive share awards (shares) | 80 | 57 | 48 |
Diluted weighted average number of shares (shares) | 9,965 | 9,975 | 9,961 |
Basic earnings per share (in GBP per share) | £ 0.175 | £ 0.218 | £ 0.205 |
Diluted earnings per share (in GBP per share) | £ 0.174 | £ 0.216 | £ 0.204 |
Dividends - Additional Informat
Dividends - Additional Information (Detail) - GBP (£) £ / shares in Units, £ in Millions | Feb. 03, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure Of Dividends [Abstract] | ||||
Final dividend proposed (in GBP per share) | £ 0 | £ 0.1078 | ||
Interim dividend paid (in GBP per share) | £ 0.0462 | £ 0.154 | £ 0.1517 | £ 0.154 |
Interim dividend paid | £ 457 | £ 1,521 | £ 1,503 | £ 1,524 |
Proposed dividend payable (in GBP per share) | £ 0.154 | £ 0.154 | ||
Proposed full year dividend | £ 1,527 | £ 1,524 | ||
Total dividend paid amount | £ 1,521 | £ 1,503 | £ 1,524 |
Dividends - Summary of Final an
Dividends - Summary of Final and Interim Dividend Per Share and Amount (Detail) - GBP (£) £ / shares in Units, £ in Millions | Feb. 03, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure Of Dividends [Abstract] | ||||
Final dividend in respect of the prior year, per share | £ 0.1078 | £ 0.1055 | £ 0.1055 | |
Interim dividend in respect of the current year, per share | 0.0462 | 0.0462 | 0.0485 | |
Total dividend per share | £ 0.0462 | £ 0.154 | £ 0.1517 | £ 0.154 |
Final dividend in respect of the prior year, amount | £ 1,064 | £ 1,045 | £ 1,044 | |
Interim dividend in respect of the current year, amount | 457 | 458 | 480 | |
Total dividend paid amount | £ 1,521 | £ 1,503 | £ 1,524 |
Intangible assets - Summary of
Intangible assets - Summary of Estimated Useful Economic Lives Assigned to Principal Categories of Intangible Assets (Detail) | 12 Months Ended |
Mar. 31, 2020 | |
Minimum | Computer software | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of intangible assets other than goodwill | 2 years |
Minimum | Telecommunications licences | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of intangible assets other than goodwill | 2 years |
Minimum | Customer relationships and brands | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of intangible assets other than goodwill | 1 year |
Maximum | Computer software | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of intangible assets other than goodwill | 10 years |
Maximum | Telecommunications licences | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of intangible assets other than goodwill | 20 years |
Maximum | Customer relationships and brands | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of intangible assets other than goodwill | 15 years |
Intangible assets - Summary o_2
Intangible assets - Summary of Intangible Assets (Detail) - GBP (£) £ in Millions | Apr. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | £ 14,385 | £ 14,385 | £ 14,447 |
Ending balance | 14,315 | 13,889 | 14,385 |
Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 20,698 | 20,698 | 20,702 |
Reclassification of assets held under finance leases | 185 | ||
Additions | 790 | 984 | |
Disposals and adjustments | 1,398 | 1,091 | |
Transfers | 9 | 44 | |
Exchange differences | 73 | 59 | |
Transfer to assets held for sale | 141 | ||
Ending balance | 20,513 | 19,846 | 20,698 |
Accumulated amortisation | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (6,313) | (6,313) | (6,255) |
Reclassification of assets held under finance leases | (115) | ||
Charge for the year | 1,173 | 1,154 | |
Disposals and adjustments | (1,386) | (1,091) | |
Transfers | 0 | (3) | |
Exchange differences | (19) | 8 | |
Transfer to assets held for sale | (47) | ||
Ending balance | (6,198) | (5,957) | (6,313) |
Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 8,006 | 8,006 | 7,945 |
Transfers | 0 | ||
Exchange differences | 52 | 63 | |
Transfer to assets held for sale | 83 | ||
Ending balance | 7,945 | 8,006 | |
Goodwill | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 8,006 | 8,006 | 7,945 |
Reclassification of assets held under finance leases | 0 | ||
Additions | 0 | 0 | |
Disposals and adjustments | 30 | 2 | |
Transfers | 0 | 0 | |
Exchange differences | 52 | 63 | |
Transfer to assets held for sale | 83 | ||
Ending balance | 8,006 | 7,945 | 8,006 |
Customer relationships and brands | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 1,846 | 1,846 | |
Ending balance | 1,467 | 1,846 | |
Customer relationships and brands | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 3,417 | 3,417 | 3,410 |
Reclassification of assets held under finance leases | 0 | ||
Additions | 0 | 0 | |
Disposals and adjustments | 28 | 0 | |
Transfers | 0 | 0 | |
Exchange differences | 8 | 7 | |
Transfer to assets held for sale | 0 | ||
Ending balance | 3,417 | 3,397 | 3,417 |
Customer relationships and brands | Accumulated amortisation | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (1,571) | (1,571) | (1,191) |
Reclassification of assets held under finance leases | 0 | ||
Charge for the year | 373 | 377 | |
Disposals and adjustments | (22) | 0 | |
Transfers | 0 | 0 | |
Exchange differences | (8) | (3) | |
Transfer to assets held for sale | 0 | ||
Ending balance | (1,571) | (1,930) | (1,571) |
Telecoms licences and other | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 2,692 | 2,692 | |
Ending balance | 2,458 | 2,692 | |
Telecoms licences and other | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 3,252 | 3,252 | 2,951 |
Reclassification of assets held under finance leases | 185 | ||
Additions | 0 | 304 | |
Disposals and adjustments | 34 | 3 | |
Transfers | (2) | 4 | |
Exchange differences | 1 | (4) | |
Transfer to assets held for sale | 0 | ||
Ending balance | 3,067 | 3,032 | 3,252 |
Telecoms licences and other | Accumulated amortisation | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (560) | (560) | (421) |
Reclassification of assets held under finance leases | (115) | ||
Charge for the year | 177 | 142 | |
Disposals and adjustments | (49) | (3) | |
Transfers | 0 | (3) | |
Exchange differences | (1) | 3 | |
Transfer to assets held for sale | 0 | ||
Ending balance | (445) | (574) | (560) |
Internally developed software | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 1,297 | 1,297 | |
Ending balance | 1,403 | 1,297 | |
Internally developed software | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 4,518 | 4,518 | 4,822 |
Reclassification of assets held under finance leases | 0 | ||
Additions | 598 | 520 | |
Disposals and adjustments | 765 | 945 | |
Transfers | 14 | 120 | |
Exchange differences | 2 | 1 | |
Transfer to assets held for sale | 13 | ||
Ending balance | 4,518 | 4,354 | 4,518 |
Internally developed software | Accumulated amortisation | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (3,221) | (3,221) | (3,680) |
Reclassification of assets held under finance leases | 0 | ||
Charge for the year | 538 | 525 | |
Disposals and adjustments | (786) | (941) | |
Transfers | 15 | 43 | |
Exchange differences | (1) | 0 | |
Transfer to assets held for sale | (8) | ||
Ending balance | (3,221) | (2,951) | (3,221) |
Purchased software | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 544 | 544 | |
Ending balance | 616 | 544 | |
Purchased software | Cost | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | 1,505 | 1,505 | 1,574 |
Reclassification of assets held under finance leases | 0 | ||
Additions | 192 | 160 | |
Disposals and adjustments | 541 | 141 | |
Transfers | (3) | (80) | |
Exchange differences | 10 | (8) | |
Transfer to assets held for sale | 45 | ||
Ending balance | 1,505 | 1,118 | 1,505 |
Purchased software | Accumulated amortisation | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Beginning balance | (961) | (961) | (963) |
Reclassification of assets held under finance leases | 0 | ||
Charge for the year | 85 | 110 | |
Disposals and adjustments | (529) | (147) | |
Transfers | (15) | (43) | |
Exchange differences | (9) | 8 | |
Transfer to assets held for sale | (39) | ||
Ending balance | £ (961) | £ (502) | £ (961) |
Intangible assets - Summary o_3
Intangible assets - Summary of Intangible Assets, Footnotes (Detail) £ in Millions | 12 Months Ended | |
Mar. 31, 2020GBP (£)country | Mar. 31, 2019GBP (£) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Reduction in cost and accumulated depreciation due to disposal of fixed assets | £ 1,100 | £ 1,000 |
Latin America divestment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Number of countries included in divestment | country | 16 | |
Disposal groups classified as held for sale | France and Latin America divestments | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Goodwill impairment | £ 58 | |
Other intangible assets impairment | 1 | |
Internally developed software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Assets in the course of construction | £ 538 | £ 668 |
Intangible assets - Summary o_4
Intangible assets - Summary of Carrying Value of Goodwill and the Key Assumptions (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | £ 14,385 | £ 14,447 |
Ending balance | 13,889 | 14,385 |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 8,006 | 7,945 |
Transfer | 0 | |
Exchange differences | 52 | 63 |
Acquisitions and disposals | (30) | (2) |
Transfer to assets held for sale | (83) | |
Ending balance | 7,945 | 8,006 |
Goodwill | Legacy BT Consumer | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 1,183 | 1,183 |
Transfer | 0 | |
Exchange differences | 0 | 0 |
Acquisitions and disposals | 0 | 0 |
Transfer to assets held for sale | 0 | |
Ending balance | 1,183 | 1,183 |
Goodwill | Legacy EE | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 2,768 | 2,768 |
Transfer | 0 | |
Exchange differences | 0 | 0 |
Acquisitions and disposals | 0 | 0 |
Transfer to assets held for sale | 0 | |
Ending balance | 2,768 | 2,768 |
Goodwill | Enterprise | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 3,509 | 0 |
Transfer | 3,504 | |
Exchange differences | 4 | 5 |
Acquisitions and disposals | (30) | 0 |
Transfer to assets held for sale | 0 | |
Ending balance | 3,483 | 3,509 |
Goodwill | Business and Public Sector | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 0 | 2,562 |
Transfer | (2,562) | |
Exchange differences | 0 | 0 |
Acquisitions and disposals | 0 | 0 |
Transfer to assets held for sale | 0 | |
Ending balance | 0 | 0 |
Goodwill | Wholesale and Ventures | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 0 | 942 |
Transfer | (942) | |
Exchange differences | 0 | 0 |
Acquisitions and disposals | 0 | 0 |
Transfer to assets held for sale | 0 | |
Ending balance | 0 | 0 |
Goodwill | Global | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 546 | 490 |
Transfer | 0 | |
Exchange differences | 48 | 58 |
Acquisitions and disposals | 0 | (2) |
Transfer to assets held for sale | (83) | |
Ending balance | £ 511 | £ 546 |
Intangible assets - Additional
Intangible assets - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of information for cash-generating units [Line Items] | ||
Board approved financial plans, period | 5 years | |
Pre-tax discount rate | 8.00% | 8.20% |
Global | ||
Disclosure of information for cash-generating units [Line Items] | ||
Pre-tax discount rate | 8.60% | 8.70% |
Perpetuity growth rate | 2.40% | 2.40% |
Enterprise | ||
Disclosure of information for cash-generating units [Line Items] | ||
Perpetuity growth rate | 2.00% | 2.00% |
Legacy BT Consumer | ||
Disclosure of information for cash-generating units [Line Items] | ||
Perpetuity growth rate | 2.00% | 2.00% |
Legacy EE | ||
Disclosure of information for cash-generating units [Line Items] | ||
Perpetuity growth rate | 2.00% | 2.00% |
Goodwill | ||
Disclosure of information for cash-generating units [Line Items] | ||
Transfer to assets held for sale | £ 83 | |
Goodwill | Global | ||
Disclosure of information for cash-generating units [Line Items] | ||
Transfer to assets held for sale | 83 | |
Goodwill | Enterprise | ||
Disclosure of information for cash-generating units [Line Items] | ||
Transfer to assets held for sale | 0 | |
Goodwill | Legacy BT Consumer | ||
Disclosure of information for cash-generating units [Line Items] | ||
Transfer to assets held for sale | 0 | |
Goodwill | Legacy EE | ||
Disclosure of information for cash-generating units [Line Items] | ||
Transfer to assets held for sale | 0 | |
BT Fleet Solutions and Tikit | Goodwill | Enterprise | ||
Disclosure of information for cash-generating units [Line Items] | ||
Elimination of Goodwill | 30 | |
Spain divestment | Goodwill | Global | ||
Disclosure of information for cash-generating units [Line Items] | ||
Transfer to assets held for sale | 25 | |
Disposal groups classified as held for sale | France and Latin America divestments | ||
Disclosure of information for cash-generating units [Line Items] | ||
Goodwill impairment | £ 58 |
Property, plant and equipment -
Property, plant and equipment - Summary of Estimated Useful Lives Assigned to Principal Categories of Assets (Detail) | 12 Months Ended |
Mar. 31, 2020 | |
Short-term leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 10 years |
Leasehold | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 40 years |
Transmission equipment - Duct | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 40 years |
Minimum | Freehold buildings | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 14 years |
Minimum | Transmission equipment - Cable | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 3 years |
Minimum | Transmission equipment - Fibre | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Minimum | Exchange equipment | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 2 years |
Minimum | Other network equipment | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 2 years |
Minimum | Motor vehicles | Other assets | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 2 years |
Minimum | Computers and office equipment | Other assets | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 3 years |
Maximum | Freehold buildings | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 50 years |
Maximum | Transmission equipment - Cable | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 25 years |
Maximum | Transmission equipment - Fibre | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 20 years |
Maximum | Exchange equipment | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 13 years |
Maximum | Other network equipment | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 20 years |
Maximum | Motor vehicles | Other assets | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 9 years |
Maximum | Computers and office equipment | Other assets | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 7 years |
Property, plant and equipment_2
Property, plant and equipment - Summary of the Carrying Values of Software, Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | Apr. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | £ 17,835 | £ 17,835 | £ 17,000 |
Opening balance | 17,770 | 17,770 | |
Ending balance | 18,376 | 17,770 | |
Ending balance | 17,801 | 18,474 | 17,835 |
Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 55,913 | 55,913 | 55,077 |
Reclassification of assets held under finance leases | 81 | ||
Additions | 3,137 | 3,262 | |
Transfers | (9) | (44) | |
Disposals and adjustments | 1,275 | 2,170 | |
Transfer to assets held for sale | 348 | 182 | |
Exchange differences | 79 | (30) | |
Ending balance | 55,832 | 57,416 | 55,913 |
Accumulated depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | (38,143) | (38,143) | (38,121) |
Reclassification of assets held under finance leases | (47) | ||
Charge for the year | 2,452 | 2,392 | |
Transfers | 0 | 3 | |
Disposals and adjustments | (1,287) | (2,247) | |
Transfer to assets held for sale | (293) | (93) | |
Exchange differences | (72) | 27 | |
Ending balance | (38,096) | (39,040) | (38,143) |
Engineering stores | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Engineering stores | 98 | 65 | |
Land and buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 387 | 387 | |
Opening balance | 387 | 387 | |
Ending balance | 335 | 387 | |
Ending balance | 335 | 387 | |
Land and buildings | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 1,107 | 1,107 | 1,262 |
Reclassification of assets held under finance leases | 81 | ||
Additions | 7 | 12 | |
Transfers | 25 | 13 | |
Disposals and adjustments | 55 | (4) | |
Transfer to assets held for sale | 69 | 182 | |
Exchange differences | 11 | (2) | |
Ending balance | 1,026 | 945 | 1,107 |
Land and buildings | Accumulated depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | (720) | (720) | (773) |
Reclassification of assets held under finance leases | (47) | ||
Charge for the year | 49 | 51 | |
Transfers | (1) | (1) | |
Disposals and adjustments | (68) | (11) | |
Transfer to assets held for sale | (55) | (93) | |
Exchange differences | (10) | 1 | |
Ending balance | (673) | (610) | (720) |
Land and buildings | Engineering stores | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Engineering stores | 0 | 0 | |
Network infrastructure | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 15,841 | 15,841 | |
Opening balance | 15,841 | 15,841 | |
Ending balance | 16,813 | 15,841 | |
Ending balance | 16,813 | 15,841 | |
Network infrastructure | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 51,893 | 51,893 | 50,783 |
Reclassification of assets held under finance leases | 0 | ||
Additions | 83 | 97 | |
Transfers | 3,244 | 2,988 | |
Disposals and adjustments | 1,132 | 1,943 | |
Transfer to assets held for sale | 255 | 0 | |
Exchange differences | 60 | (32) | |
Ending balance | 51,893 | 53,893 | 51,893 |
Network infrastructure | Accumulated depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | (36,052) | (36,052) | (35,790) |
Reclassification of assets held under finance leases | 0 | ||
Charge for the year | 2,318 | 2,236 | |
Transfers | 0 | 4 | |
Disposals and adjustments | (1,128) | (1,940) | |
Transfer to assets held for sale | (216) | 0 | |
Exchange differences | (54) | 30 | |
Ending balance | (36,052) | (37,080) | (36,052) |
Network infrastructure | Engineering stores | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Engineering stores | 0 | 0 | |
Other | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 351 | 351 | |
Opening balance | 351 | 351 | |
Ending balance | 312 | 351 | |
Ending balance | 312 | 351 | |
Other | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 1,722 | 1,722 | 1,914 |
Reclassification of assets held under finance leases | 0 | ||
Additions | 69 | 119 | |
Transfers | 17 | 18 | |
Disposals and adjustments | 130 | 333 | |
Transfer to assets held for sale | 24 | 0 | |
Exchange differences | 8 | 4 | |
Ending balance | 1,722 | 1,662 | 1,722 |
Other | Accumulated depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | (1,371) | (1,371) | (1,558) |
Reclassification of assets held under finance leases | 0 | ||
Charge for the year | 85 | 105 | |
Transfers | 1 | 0 | |
Disposals and adjustments | (91) | (296) | |
Transfer to assets held for sale | (22) | 0 | |
Exchange differences | (8) | (4) | |
Ending balance | (1,371) | (1,350) | (1,371) |
Other | Engineering stores | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Engineering stores | 0 | 0 | |
Assets in course of construction | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 1,256 | 1,256 | |
Opening balance | 1,191 | 1,191 | |
Ending balance | 916 | 1,191 | |
Ending balance | 1,014 | 1,256 | |
Assets in course of construction | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 1,191 | 1,191 | 1,118 |
Reclassification of assets held under finance leases | 0 | ||
Additions | 2,978 | 3,034 | |
Transfers | (3,295) | (3,063) | |
Disposals and adjustments | (42) | (102) | |
Transfer to assets held for sale | 0 | 0 | |
Exchange differences | 0 | 0 | |
Ending balance | 1,191 | 916 | 1,191 |
Assets in course of construction | Accumulated depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening balance | 0 | 0 | 0 |
Reclassification of assets held under finance leases | 0 | ||
Charge for the year | 0 | 0 | |
Transfers | 0 | 0 | |
Disposals and adjustments | 0 | 0 | |
Transfer to assets held for sale | 0 | 0 | |
Exchange differences | 0 | 0 | |
Ending balance | £ 0 | 0 | 0 |
Assets in course of construction | Engineering stores | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Engineering stores | £ 98 | £ 65 |
Property, plant and equipment_3
Property, plant and equipment - Summary of the Carrying Values of Software, Property, Plant and Equipment, Footnotes (Detail) £ in Millions | 12 Months Ended | |
Mar. 31, 2020GBP (£)country | Mar. 31, 2019GBP (£) | |
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Grant deferral | £ 98 | £ 63 |
Write off of fully depreciated assets | £ 700 | 1,900 |
Land and buildings | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Carrying amount of assets held under finance leases | 34 | |
Depreciation on assets held under finance leases | 2 | |
BT Centre | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Transfer to assets held for sale | £ 89 | |
Latin America divestment | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Number of countries included in divestment | country | 16 | |
Disposal groups classified as held for sale | France and Latin America divestments | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Impairment loss recognised in profit or loss, property, plant and equipment | £ 18 |
Property, plant and equipment_4
Property, plant and equipment - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Property, plant and equipment | £ 18,474 | £ 17,801 | £ 17,835 | £ 17,000 |
Network infrastructure | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Property, plant and equipment | 16,813 | 15,841 | ||
Net book value of share of assets owned by joint ventures | 600 | 584 | ||
Value of share of assets owned | 112 | 125 | ||
Net book value of assets | £ 10,000 | 9,000 | ||
Estimated useful lives of property, plant and equipment (more than) | 18 years | |||
Land and buildings | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Property, plant and equipment | £ 335 | £ 387 | ||
Property, plant and equipment subject to operating leases | Other assets | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Property, plant and equipment | 33 | |||
Property, plant and equipment subject to operating leases | Openreach | Network infrastructure | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Property, plant and equipment | £ 12,284 |
Property, plant and equipment_5
Property, plant and equipment - Summary of Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Total land and buildings | £ 335 | £ 387 |
Freehold | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Total land and buildings | 105 | 158 |
Leasehold | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Total land and buildings | £ 230 | £ 229 |
Leases - Right-of-use Assets (D
Leases - Right-of-use Assets (Detail) £ in Millions | 12 Months Ended | |
Mar. 31, 2020GBP (£) | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Additions | £ 1,476 | |
Depreciation charge for the year | (649) | |
Other movements | (591) | |
Ending balance | 5,391 | [1] |
Land and buildings | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Additions | 942 | |
Depreciation charge for the year | (513) | |
Other movements | (203) | |
Ending balance | 4,854 | |
Network infrastructure | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Additions | 59 | |
Depreciation charge for the year | (37) | |
Other movements | (32) | |
Ending balance | 179 | |
Other | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Additions | 475 | |
Depreciation charge for the year | (99) | |
Other movements | (356) | |
Ending balance | £ 358 | |
[1] | Right-of-use assets and lease liabilities arise following adoption of IFRS 16 on 1 April 2019. See note 1 to the consolidated financial statements. |
Leases - Right-of-use Assets, F
Leases - Right-of-use Assets, Footnotes (Detail) £ in Millions | 12 Months Ended |
Mar. 31, 2020GBP (£) | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |
Reclassification of right-of-use assets to held-for-sale | £ 65 |
Disposal groups classified as held for sale | France and Latin America divestments | Right-of-use assets | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |
Impairment loss recognised in profit or loss | £ 31 |
Leases - Additional Information
Leases - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Apr. 01, 2019 | ||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||
Lease liabilities | £ 6,560 | £ 6,269 | |
Current lease liabilities | 812 | [1] | 725 |
Non-current lease liabilities | 5,748 | [1] | £ 5,544 |
Interest accrued on lease liabilities | 140 | ||
Variable lease payments not dependent on an index or rate and which have not been included in measurement of lease liabilities | 29 | ||
Cash outflow for leases | 791 | ||
Gains from sale and leaseback transactions | 115 | ||
Amount committed to future minimum lease payments for leases not yet commenced and for which no lease liability has been recognised | 274 | ||
Disposal groups classified as held for sale | |||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||
Lease liabilities | £ 62 | ||
[1] | Right-of-use assets and lease liabilities arise following adoption of IFRS 16 on 1 April 2019. See note 1 to the consolidated financial statements. |
Leases - Analysis of Remaining
Leases - Analysis of Remaining Cash Flows Associated With Operating Leases Receivable (Detail) £ in Millions | Mar. 31, 2020GBP (£) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | £ 580 |
Less than one year | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 362 |
One to two years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 146 |
Two to three years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 44 |
Three to four years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 10 |
Four to five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 7 |
After five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 11 |
To be recognised as revenue (note 5) | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 475 |
To be recognised as revenue (note 5) | Less than one year | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 310 |
To be recognised as revenue (note 5) | One to two years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 130 |
To be recognised as revenue (note 5) | Two to three years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 34 |
To be recognised as revenue (note 5) | Three to four years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 1 |
To be recognised as revenue (note 5) | Four to five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 0 |
To be recognised as revenue (note 5) | After five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 0 |
To be recognised as other operating income (note 6) | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 105 |
To be recognised as other operating income (note 6) | Less than one year | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 52 |
To be recognised as other operating income (note 6) | One to two years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 16 |
To be recognised as other operating income (note 6) | Two to three years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 10 |
To be recognised as other operating income (note 6) | Three to four years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 9 |
To be recognised as other operating income (note 6) | Four to five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 7 |
To be recognised as other operating income (note 6) | After five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | £ 11 |
Programme rights - Summary of P
Programme rights - Summary of Programme Rights (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | £ 310 | £ 272 |
Ending balance | 310 | 310 |
Programme Rights | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 310 | 272 |
Additions | 870 | 879 |
Amortisation | (870) | (841) |
Ending balance | £ 310 | £ 310 |
Programme rights Programme righ
Programme rights Programme rights - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Programme rights | £ 310 | £ 310 | £ 272 |
Prepayments for commissioned or acquired programming | £ 110 | ||
Programme Rights | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful lives of intangible assets other than goodwill | 12 months | ||
Programme rights | £ 310 | £ 310 | £ 272 |
Programme Rights | Sporting events affected by COVID-19 | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful lives of intangible assets other than goodwill | 12 months | ||
Programme rights | £ 310 |
Trade and other receivables - S
Trade and other receivables - Schedule of Trade and Other Receivables (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Current | ||||
Trade receivables | £ 1,375 | £ 1,732 | £ 1,741 | |
Prepayments | 607 | 698 | 1,103 | |
Accrued income | 57 | 34 | 777 | |
Deferred contract costs | 422 | 417 | 0 | |
Other receivables | 243 | 341 | 393 | |
Trade and other receivable current | 2,704 | £ 3,172 | 3,222 | 4,014 |
Non-current | ||||
Other assets | 222 | 173 | 317 | |
Deferred contract costs | 259 | 272 | 0 | |
Trade and other receivables | £ 481 | £ 445 | £ 317 |
Trade and other receivables -_2
Trade and other receivables - Schedule of Trade and Other Receivables, Footnotes (Detail) - GBP (£) | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure Of Trade And Other Receivables [Line Items] | |||
Prepayments in respect of acquisition of intangible assets | £ 0 | £ 0 | £ 325,000,000 |
Other assets relating to initial set-up, transition or transformation phase of long-term networked IT services contracts | £ 222,000,000 | 173,000,000 | 317,000,000 |
Long-Term Networked IT Services Contracts | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Other assets relating to initial set-up, transition or transformation phase of long-term networked IT services contracts | £ 0 | £ 145,000,000 |
Trade and other receivables -_3
Trade and other receivables - Summary of Trade Receivables After Deducting Allowances for Doubtful Debts (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in allowance account for credit losses of financial assets [abstract] | |||
Beginning balance | £ 299 | £ 375 | £ 303 |
Expense | 213 | 95 | 129 |
Utilised | (189) | (165) | (61) |
Exchange differences | 6 | (6) | 4 |
Ending balance | £ 329 | £ 299 | £ 375 |
Trade and other receivables -_4
Trade and other receivables - Summary of Trade Receivables Past Due and Not Specifically Impaired (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | £ 1,375 | £ 1,732 | £ 1,741 |
Trade receivables specifically impaired net of provision | 25 | 34 | 61 |
Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | 903 | 1,229 | 1,251 |
Between 0 and 3 months | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | 308 | 371 | 293 |
Between 3 and 6 months | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | 45 | 42 | 44 |
Between 6 and 12 months | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | 49 | 40 | 25 |
Over 12 months | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | £ 45 | £ 16 | £ 67 |
Trade and other receivables - A
Trade and other receivables - Additional Information (Detail) - GBP (£) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Trade And Other Receivables [Line Items] | |||
Increase in expected credit losses on receivables due from customers | £ 213,000,000 | £ 95,000,000 | £ 129,000,000 |
Cash collateral held against trade and other receivables | 0 | 9,000,000 | 6,000,000 |
Financial assets impaired | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Gross trade receivables specifically impaired | 34,000,000 | £ 57,000,000 | £ 124,000,000 |
Specific Items | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Increase in expected credit losses on receivables due from customers | £ 67,000,000 |
Trade and other receivables -_5
Trade and other receivables - Schedule of Trade Receivables Not Past Due and Accrued Income (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | £ 57 | £ 34 | £ 777 |
Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 903 | 1,229 | 1,251 |
Consumer | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 1 | 32 | 0 |
Consumer | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 353 | 457 | 0 |
Enterprise | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 3 | 2 | 0 |
Enterprise | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 139 | 274 | 0 |
Global | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 0 | 0 | 222 |
Global | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 409 | 498 | 477 |
Openreach | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 51 | 0 | 67 |
Openreach | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 0 | 0 | 61 |
BT Consumer | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 0 | 0 | 86 |
BT Consumer | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 0 | 0 | 157 |
EE | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 0 | 0 | 122 |
EE | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 0 | 0 | 206 |
Business and Public Sector | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 0 | 0 | 134 |
Business and Public Sector | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 0 | 0 | 253 |
Wholesale and Ventures | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 0 | 0 | 145 |
Wholesale and Ventures | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | 0 | 0 | 92 |
Other | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Accrued income | 2 | 0 | 1 |
Other | Not past due | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables not past due | £ 2 | £ 0 | £ 5 |
Trade and other receivables -_6
Trade and other receivables - Summary of Movement on Deferred Costs (Detail) £ in Millions | 12 Months Ended |
Mar. 31, 2020GBP (£) | |
Disclosure Of Trade And Other Receivables [Line Items] | |
Beginning balance | £ 689 |
Additions | 568 |
Amortisation | (537) |
Impairment | (33) |
Other | (6) |
Ending balance | 681 |
Deferred connection costs | |
Disclosure Of Trade And Other Receivables [Line Items] | |
Beginning balance | 31 |
Additions | 10 |
Amortisation | (9) |
Impairment | (1) |
Other | 1 |
Ending balance | 32 |
Deferred contract acquisition costs - commissions | |
Disclosure Of Trade And Other Receivables [Line Items] | |
Beginning balance | 86 |
Additions | 86 |
Amortisation | (75) |
Impairment | (4) |
Other | 1 |
Ending balance | 94 |
Deferred contract acquisition costs - dealer incentives | |
Disclosure Of Trade And Other Receivables [Line Items] | |
Beginning balance | 432 |
Additions | 451 |
Amortisation | (426) |
Impairment | (7) |
Other | (1) |
Ending balance | 449 |
Transition and transformation | |
Disclosure Of Trade And Other Receivables [Line Items] | |
Beginning balance | 140 |
Additions | 21 |
Amortisation | (27) |
Impairment | (21) |
Other | (7) |
Ending balance | £ 106 |
Trade and other payables - Summ
Trade and other payables - Summary of Trade and Other Payables (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Current | ||||
Trade payables | £ 3,889 | £ 4,141 | £ 3,991 | |
Other taxation and social security | 562 | 564 | 704 | |
Other payables | 498 | 387 | 456 | |
Accrued expenses | 545 | 630 | 492 | |
Deferred income | 300 | 68 | 1,525 | |
Total current trade and other payables | 5,794 | £ 5,881 | 5,790 | 7,168 |
Non-current | ||||
Other payables | 18 | 873 | 871 | |
Deferred income | 736 | 606 | 455 | |
Total non-current trade and other payables | £ 754 | £ 654 | £ 1,479 | £ 1,326 |
Trade and other payables - Su_2
Trade and other payables - Summary of Trade and Other Payables, Footnotes (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of trade and other payables [Line Items] | |||
Deferred income current | £ 300 | £ 68 | £ 1,525 |
Deferred income non-current | 736 | 606 | 455 |
Building Digital UK Programme | |||
Disclosure of trade and other payables [Line Items] | |||
Deferred income current | 94 | 51 | 132 |
Deferred income non-current | £ 525 | £ 586 | £ 404 |
Provisions - Details of Estimat
Provisions - Details of Estimate of the Provisions (Detail) - GBP (£) £ in Millions | Apr. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | £ 1,006 | £ 1,006 | £ 1,055 |
IFRS 16 adjustment | (209) | ||
Additions | 261 | 315 | |
Unwind of discount | 2 | 14 | |
Utilised or released | (364) | (407) | |
Transfers | 22 | 29 | |
Exchange differences | 1 | 0 | |
Ending balance | 797 | 719 | 1,006 |
Restructuring | |||
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | 0 | 0 | 12 |
IFRS 16 adjustment | 0 | ||
Additions | 0 | 0 | |
Unwind of discount | 0 | 0 | |
Utilised or released | 0 | 0 | |
Transfers | 0 | (12) | |
Exchange differences | 0 | 0 | |
Ending balance | 0 | 0 | |
Property | |||
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | 339 | 339 | 294 |
IFRS 16 adjustment | (183) | ||
Additions | 18 | 84 | |
Unwind of discount | 1 | 11 | |
Utilised or released | (31) | (71) | |
Transfers | 0 | 21 | |
Exchange differences | 0 | 0 | |
Ending balance | 156 | 144 | 339 |
Network ARO | |||
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | 162 | 162 | 71 |
IFRS 16 adjustment | (14) | ||
Additions | 52 | 102 | |
Unwind of discount | 1 | 2 | |
Utilised or released | (22) | (13) | |
Transfers | 0 | 0 | |
Exchange differences | 0 | 0 | |
Ending balance | 148 | 179 | 162 |
Network share | |||
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | 27 | 27 | 33 |
IFRS 16 adjustment | (12) | ||
Additions | 88 | 2 | |
Unwind of discount | 0 | 1 | |
Utilised or released | (91) | (9) | |
Transfers | 0 | 0 | |
Exchange differences | 0 | 0 | |
Ending balance | 15 | 12 | 27 |
Regulatory | |||
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | 182 | 182 | 320 |
IFRS 16 adjustment | 0 | ||
Additions | 26 | 58 | |
Unwind of discount | 0 | 0 | |
Utilised or released | (129) | (196) | |
Transfers | 0 | 0 | |
Exchange differences | 0 | 0 | |
Ending balance | 182 | 79 | 182 |
Litigation | |||
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | 84 | 84 | 64 |
IFRS 16 adjustment | 0 | ||
Additions | 7 | 3 | |
Unwind of discount | 0 | 0 | |
Utilised or released | (14) | (9) | |
Transfers | 11 | 27 | |
Exchange differences | 0 | (1) | |
Ending balance | 84 | 88 | 84 |
Other | |||
Reconciliation of changes in other provisions [abstract] | |||
Opening balance | 212 | 212 | 261 |
IFRS 16 adjustment | 0 | ||
Additions | 70 | 66 | |
Unwind of discount | 0 | 0 | |
Utilised or released | (77) | (109) | |
Transfers | 11 | (7) | |
Exchange differences | 1 | 1 | |
Ending balance | £ 212 | 217 | £ 212 |
Disposal groups classified as held for sale | |||
Reconciliation of changes in other provisions [abstract] | |||
Ending balance | £ 5 |
Provisions - Details of Provisi
Provisions - Details of Provisions (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Provisions [abstract] | ||||
Current | £ 288 | £ 407 | £ 424 | £ 603 |
Non-current | 431 | 390 | 582 | 452 |
Total | £ 719 | £ 797 | £ 1,006 | £ 1,055 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of other provisions [line items] | ||
Contract loss provisions | £ 10 | £ 25 |
Specific items related to COVID-19 | ||
Disclosure of other provisions [line items] | ||
Contract loss provisions | £ 7 | |
Network share | ||
Disclosure of other provisions [line items] | ||
Expected period of costs incurred | 20 years |
Retirement benefit plans - Addi
Retirement benefit plans - Additional Information (Detail) member in Thousands | Apr. 01, 2009 | Mar. 31, 2020GBP (£)membertrustee_directorvaluation | Mar. 31, 2019GBP (£) | Mar. 31, 2018GBP (£) | Jun. 30, 2019member | Dec. 31, 2018GBP (£) | Jun. 30, 2017GBP (£) |
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Weighted average term of liabilities | 15 years | ||||||
Length of time over which payments will be made to all retirees from the fund | 70 years | ||||||
Estimated % decrease in long-term RPI with alignment of RPI with CPIH | 1.00% | ||||||
Estimated % impact of aligning RPI with CPIH reflected in the value of RPI-linked assets | 60.00% | ||||||
Estimated % decrease in long-term RPI inflation expectations from 2030 with alignment of RPI with CPIH | 0.40% | ||||||
Maximum period of addressing deficit | 20 years | ||||||
Number of recent triennial valuations | valuation | 2 | ||||||
Percentage of investment in growth asset | 45.00% | ||||||
De-risking to low risk investment approach year | 2034 | ||||||
Flat discount rate | 1.00% | ||||||
Group contributions based on funding valuation agreement | £ 960,000,000 | ||||||
Shareholder distribution threshold dividend per share | 10.00% | ||||||
Shareholder distribution threshold share buybacks | £ 200,000,000 | ||||||
Share buybacks in excess per year | 200,000,000 | ||||||
Threshold for BTPS | 1,500,000,000 | ||||||
Deficit threshold level for application for provision | 2,000,000,000 | ||||||
Contribution to plan | £ 1,274,000,000 | £ 2,024,000,000 | £ 872,000,000 | ||||
BTRSS | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Number of active members | member | 67 | ||||||
Contribution to plan | £ 460,000,000 | ||||||
Liabilities | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Estimated increase (decrease) in retail price index-linked defined benefit liability (asset) with alignment of retail price index and consumer price index | (400,000,000) | ||||||
Assets | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Estimated increase (decrease) in retail price index-linked defined benefit liability (asset) with alignment of retail price index and consumer price index | 1,400,000,000 | ||||||
Deficit | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Estimated increase (decrease) in retail price index-linked defined benefit liability (asset) with alignment of retail price index and consumer price index | (1,000,000,000) | ||||||
Maximum | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Prudent discount rate | 1.40% | ||||||
Net proceeds consideration under material corporate events | 1,000,000,000 | ||||||
Acquisition Consideration | 1,000,000,000 | ||||||
Disposal Consideration | 1,000,000,000 | ||||||
Minimum | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Prudent discount rate | 0.70% | ||||||
Trade and Other Payables | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Present value of liabilities | £ 43,000,000 | £ 42,000,000 | |||||
BTPS | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Percentage of section B and C members in BTPS | 99.00% | ||||||
Number of members in pension scheme | member | 286 | ||||||
Normal pensionable age | 60 years | ||||||
Number of Trustee directors | trustee_director | 9 | ||||||
Trustee directors, appointment term | 3 years | ||||||
Percentage of group's retirement benefit obligation | 97.00% | ||||||
Percentage retirement benefit obligation are rounded | 0.05% | ||||||
Percentage of exposure covered by longevity insurance | 25.00% | ||||||
Funding deficit | £ 11,300,000,000 | ||||||
Funding deficit term | 13 years | ||||||
BTPS | IAS 19 Section C Liabilities | Pensioners | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Increases in benefits in payment based upon RPI, maximum percentage | 5.00% | ||||||
Section B and C under BTPS | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Normal pensionable age | 65 years | ||||||
Expense and Future Accrual | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Group contributions based on funding valuation agreement | £ 60,000,000 | ||||||
Deficit Contributions | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Group contributions based on funding valuation agreement | 900,000,000 | ||||||
EEPS | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Funding deficit | £ 161,000,000 | ||||||
Defined benefit liabilities | £ 900,000,000 | ||||||
Number of active members | member | 9 | ||||||
EEPS | Each month between 1 January 2019 and 31 July 2022 | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Monthly payments to bridge funding deficit | £ 3,300,000 | ||||||
EEPS | Global Equities | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Percentage of assets of benefit plan | 20.00% | ||||||
EEPS | Property and Illiquid Alternatives | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Percentage of assets of benefit plan | 25.00% | ||||||
EEPS | Absolute Return Portfolio | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Percentage of assets of benefit plan | 23.00% | ||||||
EEPS | Liability Driven Investment Portfolio | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Percentage of assets of benefit plan | 32.00% | ||||||
BTHS | |||||||
Disclosure Of Retirement Benefit Plans [Line Items] | |||||||
Defined benefit and defined contribution liabilities | £ 12,000,000 |
Retirement benefit plans - Summ
Retirement benefit plans - Summary of Expense or Income from Retirement Benefit Arrangements Recognised in Income Statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Total recognised in the income statement | £ 793 | £ 799 | £ 842 |
Before Specific Items | |||
Disclosure of defined benefit plans [line items] | |||
Past service credit | 0 | 0 | (17) |
Subtotal | 626 | 611 | 624 |
Specific Items | |||
Disclosure of defined benefit plans [line items] | |||
– Costs to close BT Pension Scheme and provide transition payments for affected employees | 22 | 23 | 0 |
– Cost to equalise benefits between men and women | 0 | 26 | 0 |
Interest expense on retirement benefit obligation | 145 | 139 | 218 |
Subtotal | 167 | 188 | 218 |
Defined benefit plans | Before Specific Items | |||
Disclosure of defined benefit plans [line items] | |||
Service cost | 86 | 135 | 376 |
Defined contribution plans | Before Specific Items | |||
Disclosure of defined benefit plans [line items] | |||
Service cost | £ 540 | £ 476 | £ 265 |
Retirement benefit plans - Su_2
Retirement benefit plans - Summary of Retirement Benefit Obligation in Respect of Defined Benefit Plans Reported in Balance Sheet (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Disclosure of defined benefit plans [line items] | ||
Deficit | £ (965) | £ (5,974) |
Retirement Benefit Obligations (gross of tax) | ||
Disclosure of defined benefit plans [line items] | ||
Assets | 53,471 | 53,364 |
Liabilities | (54,611) | (60,546) |
Deficit | (1,140) | (7,182) |
Retirement Benefit Obligations (gross of tax) | BTPS | ||
Disclosure of defined benefit plans [line items] | ||
Assets | 52,240 | 52,186 |
Liabilities | (53,010) | (58,855) |
Deficit | (770) | (6,669) |
Retirement Benefit Obligations (gross of tax) | EEPS | ||
Disclosure of defined benefit plans [line items] | ||
Assets | 820 | 816 |
Liabilities | (879) | (997) |
Deficit | (59) | (181) |
Retirement Benefit Obligations (gross of tax) | Other plans | ||
Disclosure of defined benefit plans [line items] | ||
Assets | 411 | 362 |
Liabilities | (722) | (694) |
Deficit | (311) | (332) |
Deferred tax asset | ||
Disclosure of defined benefit plans [line items] | ||
Deficit | £ 175 | £ 1,208 |
Retirement benefit plans - Su_3
Retirement benefit plans - Summary of Retirement Benefit Obligation in Respect of Defined Benefit Plans Reported in Balance Sheet, Footnotes (Detail) - Retirement Benefit Obligation (gross of tax) - Other plans - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Unfunded Pension Arrangements | ||
Disclosure of defined benefit plans [line items] | ||
Present value of liabilities | £ 150 | £ 101 |
Disposal groups classified as held for sale | France divestment | ||
Disclosure of defined benefit plans [line items] | ||
Present value of liabilities | £ 8 |
Retirement benefit plans - Su_4
Retirement benefit plans - Summary of Movements on Pension Assets and Liabilities (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Assets | ||
Disclosure of defined benefit plans [line items] | ||
Beginning balance | £ 53,364 | £ 50,956 |
Service cost (including administration expenses and PPF levy) | (66) | (49) |
Costs to close BT Pension Scheme | (6) | |
Cost to equalise benefits between men and women due to guaranteed minimum pension (GMP) | 0 | |
Interest on pension deficit | 1,246 | 1,356 |
Return on plan assets above the amount included in the group income statement | 249 | 1,607 |
Actuarial gain (loss) arising from changes in financial assumptions | 0 | 0 |
Actuarial gain (loss) arising from changes in demographic assumptions | 0 | 0 |
Actuarial gain (loss) arising from experience adjustments | 0 | 0 |
Regular contributions by employer | 160 | 43 |
Deficit contributions by employer | 1,274 | 2,024 |
Contributions by employees | 0 | 1 |
Benefits paid | (2,764) | (2,564) |
Other (e.g. foreign exchange) | 8 | (4) |
Ending balance | 53,471 | 53,364 |
Liabilities | ||
Disclosure of defined benefit plans [line items] | ||
Beginning balance | (60,546) | (57,803) |
Service cost (including administration expenses and PPF levy) | (20) | (86) |
Costs to close BT Pension Scheme | 0 | |
Cost to equalise benefits between men and women due to guaranteed minimum pension (GMP) | (26) | |
Interest on pension deficit | (1,391) | (1,495) |
Return on plan assets above the amount included in the group income statement | 0 | 0 |
Actuarial gain (loss) arising from changes in financial assumptions | 3,746 | (3,920) |
Actuarial gain (loss) arising from changes in demographic assumptions | 498 | 247 |
Actuarial gain (loss) arising from experience adjustments | 360 | (36) |
Regular contributions by employer | 0 | 0 |
Deficit contributions by employer | 0 | 0 |
Contributions by employees | 0 | (1) |
Benefits paid | 2,764 | 2,564 |
Other (e.g. foreign exchange) | (22) | 10 |
Ending balance | (54,611) | (60,546) |
Deficit | ||
Disclosure of defined benefit plans [line items] | ||
Beginning balance | (7,182) | (6,847) |
Service cost (including administration expenses and PPF levy) | (86) | (135) |
Costs to close BT Pension Scheme | (6) | |
Cost to equalise benefits between men and women due to guaranteed minimum pension (GMP) | (26) | |
Interest on pension deficit | (145) | (139) |
Included in the group income statement | (231) | (306) |
Return on plan assets above the amount included in the group income statement | 249 | 1,607 |
Actuarial gain (loss) arising from changes in financial assumptions | 3,746 | (3,920) |
Actuarial gain (loss) arising from changes in demographic assumptions | 498 | 247 |
Actuarial gain (loss) arising from experience adjustments | 360 | (36) |
Included in the group statement of comprehensive income | 4,853 | (2,102) |
Regular contributions by employer | 160 | 43 |
Deficit contributions by employer | 1,274 | 2,024 |
Included in the group cash flow statement | 1,434 | 2,067 |
Contributions by employees | 0 | 0 |
Benefits paid | 0 | 0 |
Other (e.g. foreign exchange) | (14) | 6 |
Other movements | (14) | 6 |
Ending balance | £ (1,140) | £ (7,182) |
Retirement benefit plans - Su_5
Retirement benefit plans - Summary of Analysis of Membership (Detail) - BTPS member in Thousands, £ in Billions | Mar. 31, 2020GBP (£)member |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 53 |
Total number of members | member | 286 |
IAS 19 Sections A and B Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 35.9 |
IAS 19 Section C Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | 17.1 |
Active members | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 0 |
Total number of members | member | 0 |
Active members | IAS 19 Sections A and B Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 0 |
Active members | IAS 19 Section C Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | 0 |
Deferred members | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 20 |
Total number of members | member | 81 |
Deferred members | IAS 19 Sections A and B Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 7.2 |
Deferred members | IAS 19 Section C Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | 12.8 |
Pensioners | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 33 |
Total number of members | member | 205 |
Pensioners | IAS 19 Sections A and B Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 28.7 |
Pensioners | IAS 19 Section C Liabilities | |
Disclosure of defined benefit plans [line items] | |
IAS 19 liabilities | £ 4.3 |
Retirement benefit plans - Su_6
Retirement benefit plans - Summary of Analysis of Membership, Footnotes (Detail) | 3 Months Ended |
Jun. 30, 2019member | |
BTPS | |
Disclosure of defined benefit plans [line items] | |
Number of members in pension plan | 50 |
Retirement benefit plans - Su_7
Retirement benefit plans - Summary of Fair Value of Assets of BTPS Analysed by Asset Category (Detail) - BTPS - GBP (£) £ in Billions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
At fair value | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 52.7 | |
Total assets | 52.2 | £ 52.2 |
Total assets of which quoted | £ 31.9 | £ 33.2 |
Total (percent) | 100.00% | 100.00% |
At fair value | UK Equities | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 0.3 | |
Total assets | 0.3 | £ 0.5 |
Total assets of which quoted | £ 0.3 | £ 0.4 |
Total (percent) | 1.00% | 1.00% |
At fair value | Overseas developed Equities | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 6.7 | |
Total assets | 6.7 | £ 7.7 |
Total assets of which quoted | £ 5.6 | £ 7.3 |
Total (percent) | 13.00% | 15.00% |
At fair value | Emerging markets Equities | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 1 | |
Total assets | 1 | £ 1.1 |
Total assets of which quoted | £ 1 | £ 1.1 |
Total (percent) | 2.00% | 2.00% |
At fair value | Private Equity | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 1.6 | |
Total assets | 1.3 | £ 1.5 |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | 2.00% | 3.00% |
At fair value | UK Property | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 3.5 | |
Total assets | 3.5 | £ 3.5 |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | 7.00% | 7.00% |
At fair value | Overseas Property | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 1.1 | |
Total assets | 1.1 | £ 1.1 |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | 2.00% | 2.00% |
At fair value | Absolute Return | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 1.2 | |
Total assets | 1.2 | £ 1.2 |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | 2.00% | 2.00% |
At fair value | Non Core Credit | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 4.4 | |
Total assets | 4.2 | £ 3.8 |
Total assets of which quoted | £ 1 | £ 1.1 |
Total (percent) | 8.00% | 7.00% |
At fair value | Mature Infrastructure | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 1.5 | |
Total assets | 1.5 | £ 1.4 |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | 3.00% | 3.00% |
At fair value | UK Government Bonds | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 13.9 | |
Total assets | 13.9 | £ 13.2 |
Total assets of which quoted | £ 13.9 | £ 13.2 |
Total (percent) | 27.00% | 25.00% |
At fair value | Global Investment Grade Credit | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 14.4 | |
Total assets | 14.4 | £ 14.3 |
Total assets of which quoted | £ 10.1 | £ 10.1 |
Total (percent) | 28.00% | 27.00% |
At fair value | Cash Balances | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 2.3 | |
Total assets | 2.3 | £ 2.7 |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | 4.00% | 5.00% |
At fair value | Longevity Insurance Contract | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ (0.8) | |
Total assets | (0.8) | £ (0.7) |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | (2.00%) | (1.00%) |
At fair value | Other | ||
Disclosure of defined benefit plans [line items] | ||
Assets, prior to estimated adjustments | £ 1.6 | |
Total assets | 1.6 | £ 0.9 |
Total assets of which quoted | £ 0 | £ 0 |
Total (percent) | 3.00% | 2.00% |
COVID-19 | ||
Disclosure of defined benefit plans [line items] | ||
Unquoted assets with updated valuation | £ 6 | |
Decrease in valuation of illiquid investments | 0.5 | |
COVID-19 | UK Property | ||
Disclosure of defined benefit plans [line items] | ||
Unquoted asset valuations with material uncertainty clause | £ 2 |
Retirement benefit plans - Su_8
Retirement benefit plans - Summary of Fair Value of Assets of BTPS Analysed by Asset Category, Footnotes (Detail) - BTPS - GBP (£) | Mar. 31, 2020 | Mar. 31, 2019 |
Disclosure of defined benefit plans [line items] | ||
Ordinary shares held under scheme | £ 0 | |
Index-linked bonds held under scheme | £ 1,867,000,000 | £ 2,154,000,000 |
Retirement benefit plans - Su_9
Retirement benefit plans - Summary of Approach Used to Set the Key IAS 19 Assumptions, Footnotes (Detail) | 12 Months Ended |
Mar. 31, 2020 | |
Disclosure of defined benefit plans [line items] | |
Estimated % impact of aligning RPI with CPIH reflected in the value of RPI-linked assets | 60.00% |
Mortality Projections model, long-term improvement parameter, per year | 1.25% |
BTPS | Retail Price Index | |
Disclosure of defined benefit plans [line items] | |
Inflation risk premium | 0.02% |
Retirement benefit plans - S_10
Retirement benefit plans - Summary of Key Financial Assumptions Used to Measure Liabilities of BTPS (Detail) - BTPS | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Nominal Rates | |||
Disclosure of defined benefit plans [line items] | |||
Rate used to discount liabilities | 2.45% | 2.35% | 2.65% |
Nominal Rates | Retail Price Index | |||
Disclosure of defined benefit plans [line items] | |||
Inflation – increase | 2.60% | 3.25% | 3.10% |
Nominal Rates | Consumer Price Index | |||
Disclosure of defined benefit plans [line items] | |||
Inflation – increase | 2.10% | 2.25% | 2.00% |
Real Rates | |||
Disclosure of defined benefit plans [line items] | |||
Rate used to discount liabilities | (0.15%) | (0.87%) | (0.44%) |
Real Rates | Retail Price Index | |||
Disclosure of defined benefit plans [line items] | |||
Inflation – increase | 0.00% | 0.00% | 0.00% |
Real Rates | Consumer Price Index | |||
Disclosure of defined benefit plans [line items] | |||
Inflation – increase | (0.50%) | (1.00%) | (1.10%) |
Retirement benefit plans - S_11
Retirement benefit plans - Summary of Key Financial Assumptions Used to Measure Liabilities of BTPS, Footnotes (Detail) - BTPS | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Minimum assumed real rate, percent lower until 31 March 2030 | 0.40% | ||
Maximum assumed real rate, percent lower until 31 March 2023 | 0.10% | ||
Maximum assumed real rate, percent higher until 31 March 2023 | 0.10% |
Retirement benefit plans - S_12
Retirement benefit plans - Summary of Forecast Life Expectancies for BTPS Members Aged 60 (Detail) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Male in lower pay bracket | ||
Disclosure of defined benefit plans [line items] | ||
Number of years | 25 years 4 months 24 days | 25 years 8 months 12 days |
Male in medium pay bracket | ||
Disclosure of defined benefit plans [line items] | ||
Number of years | 26 years 8 months 12 days | 27 years |
Male in higher pay bracket | ||
Disclosure of defined benefit plans [line items] | ||
Number of years | 28 years 1 month 6 days | 28 years 6 months |
Female in lower pay bracket | ||
Disclosure of defined benefit plans [line items] | ||
Number of years | 28 years 1 month 6 days | 28 years 6 months |
Female in higher pay bracket | ||
Disclosure of defined benefit plans [line items] | ||
Number of years | 28 years 4 months 24 days | 28 years 8 months 12 days |
Average improvement for a female retiring at age 60 in 10 years' time | ||
Disclosure of defined benefit plans [line items] | ||
Number of years | 8 months 12 days | 8 months 12 days |
Retirement benefit plans - S_13
Retirement benefit plans - Summary of Assessed Potential Negative Impact of Key Risk (Detail) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of defined benefit plans [abstract] | ||
Fall in bond yields | 1.10% | 1.10% |
Increase In credit spreads only | 0.70% | |
Increase to inflation rate | 0.70% | 0.70% |
Fall in growth assets | 20.00% | |
Increase to life expectancy | 1 year 2 months 30 days | 1 year 2 months 30 days |
Retirement benefit plans Retire
Retirement benefit plans Retirement benefit plans - Summary of Impact of Illustrative Scenarios Which Might Occur No More Than Once in Every 20 Years (Detail) - BTPS £ in Billions | 12 Months Ended |
Mar. 31, 2020GBP (£) | |
1.1 percentage point fall in bond yields | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ 9.2 |
Increase/(decrease) in assets | £ 11.8 |
Percentage point fall in bond yields | 1.10% |
Actuarial Assumption Of Corporate Bond Yields [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ (4.8) |
Increase/(decrease) in assets | £ (0.8) |
Sensitivity Analysis, Principal Assumptions In One-In-Twenty Years Used To Measure IAS 19 Liabilities, Percentage Increase In Corporate Bond Yields | 0.70% |
0.7 percentage point increase to inflation rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ 4.4 |
Increase/(decrease) in assets | £ 4.9 |
Percentage point increase to inflation rate | 0.70% |
20% fall in growth assets | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ 0 |
Increase/(decrease) in assets | £ (3.6) |
Percentage fall in growth assets | 20.00% |
1.25 year increase to life expectancy | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ 2.7 |
Increase/(decrease) in assets | £ 0.6 |
Increase to life expectancy | 1 year 3 months |
Retirement benefit plans - S_14
Retirement benefit plans - Summary of Two Most Recent Triennial Valuations (Detail) - BTPS Triennial Funding Valuation - GBP (£) £ in Billions | Jun. 30, 2017 | Jun. 30, 2014 |
Disclosure of defined benefit plans [line items] | ||
BTPS liabilities | £ (60.4) | £ (47.2) |
Market value of BTPS assets | 49.1 | 40.2 |
Funding deficit | £ (11.3) | £ (7) |
Percentage of accrued benefits covered by BTPS assets at valuation date | 81.30% | 85.20% |
Percentage of accrued benefits on a solvency basis covered by the BTPS assets at the valuation date | 62.20% | 63.00% |
Retirement benefit plans - S_15
Retirement benefit plans - Summary of Prudent Long-Term Assumptions (Detail) - BTPS Triennial Funding Valuation | Jun. 30, 2017 | Jun. 30, 2014 |
Nominal Rates | ||
Disclosure of defined benefit plans [line items] | ||
Average single equivalent discount rate | 2.60% | 4.50% |
Average long-term increase in RPI | 3.40% | 3.50% |
Average long-term increase in CPI | 2.40% | 2.50% |
Real Rates | ||
Disclosure of defined benefit plans [line items] | ||
Average single equivalent discount rate | (0.80%) | 1.00% |
Average long-term increase in RPI | 0.00% | 0.00% |
Average long-term increase in CPI | (1.00%) | (1.00%) |
Retirement benefit plans - S_16
Retirement benefit plans - Summary of Average Life Expectancies for Members Aged 60 (Detail) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2014 | Mar. 31, 2020 | Mar. 31, 2019 | |
Male in lower pay bracket | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 25 years 4 months 24 days | 25 years 8 months 12 days | ||
Male in lower pay bracket | BTPS Triennial Funding Valuation | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 25 years 10 months 25 days | 26 years 1 month 6 days | ||
Male in medium pay bracket | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 26 years 8 months 12 days | 27 years | ||
Male in medium pay bracket | BTPS Triennial Funding Valuation | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 27 years 2 months 12 days | 27 years 6 months | ||
Male in higher pay bracket | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 28 years 1 month 6 days | 28 years 6 months | ||
Male in higher pay bracket | BTPS Triennial Funding Valuation | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 28 years 7 months 6 days | 29 years | ||
Female in lower pay bracket | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 28 years 1 month 6 days | 28 years 6 months | ||
Female in lower pay bracket | BTPS Triennial Funding Valuation | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 28 years 7 months 6 days | 28 years 10 months 24 days | ||
Female in higher pay bracket | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 28 years 4 months 24 days | 28 years 8 months 12 days | ||
Female in higher pay bracket | BTPS Triennial Funding Valuation | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 28 years 10 months 25 days | 29 years 2 months 12 days | ||
Average improvement for a female retiring at age 60 in 10 years' time | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 8 months 12 days | 8 months 12 days | ||
Average improvement for a female retiring at age 60 in 10 years' time | BTPS Triennial Funding Valuation | ||||
Disclosure of defined benefit plans [line items] | ||||
Assumptions | 10 months 25 days | 1 year 3 months 18 days |
Retirement benefit plans - S_17
Retirement benefit plans - Summary of Sensitivity Analysis of Market Conditions on Funding Liabilities (Detail) - BTPS £ in Billions | 12 Months Ended |
Mar. 31, 2020GBP (£) | |
1.1 percentage point fall in discount rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ 13.1 |
Percentage fall in discount rate | 1.10% |
0.7 percentage point increase to inflation rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ 7.1 |
Percentage point increase in inflation rate | 0.70% |
1.25 year increase to life expectancy | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in liabilities | £ 3.1 |
Increase to life expectancy | 1 year 3 months |
Retirement benefit plans - S_18
Retirement benefit plans - Summary of Payments Made to BTPS (Detail) - BTPS - GBP (£) £ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Ordinary contributions | £ 118 | £ 33 |
Deficit contributions | 1,250 | 2,000 |
Total contributions in the year | £ 1,368 | £ 2,033 |
Retirement benefit plans - Sche
Retirement benefit plans - Schedule of Future Deficit Payments (Detail) - BTPS Triennial Funding Valuation £ in Millions | 12 Months Ended |
Mar. 31, 2020GBP (£) | |
2021 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | £ 900 |
2022 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 900 |
2023 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 907 |
2024 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 907 |
2025 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 907 |
2026 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 907 |
2027 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 907 |
2028 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 907 |
2029 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | 907 |
2030 | |
Disclosure of deficit contribution plans [Line Items] | |
Deficit contribution | £ 907 |
Retirement benefit plans - Sc_2
Retirement benefit plans - Schedule of Future Deficit Payments, Footnotes (Detail) - BTPS £ in Millions | 12 Months Ended |
Mar. 31, 2020GBP (£) | |
Payable by 30 June 2020 | |
Disclosure of deficit contribution plans [Line Items] | |
Contribution payable | £ 400 |
Payable by 30 June 2021 | |
Disclosure of deficit contribution plans [Line Items] | |
Contribution payable | £ 200 |
Own shares - Summary of Own Sha
Own shares - Summary of Own Shares (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Changes in equity [abstract] | ||||
Beginning balance | £ 10,167 | £ 9,911 | £ 8,335 | |
Executive share awards vested (shares) | (8,000,000) | |||
Ending balance | £ 14,763 | £ 10,167 | £ 9,911 | |
Treasury shares | ||||
Changes in equity [abstract] | ||||
Beginning balance (shares) | 45,308,559 | 46,000,000 | ||
Beginning balance | £ (143) | £ (145) | ||
Own shares purchased (shares) | 41,000,000 | 0 | ||
Own shares purchased | £ (80) | £ 0 | ||
Share options exercised (shares) | 0 | (1,000,000) | ||
Share options exercised | £ 0 | £ 2 | ||
Executive share awards vested (shares) | 0 | 0 | ||
Executive share awards vested | £ 0 | £ 0 | ||
Conversion of ADR shares (shares) | 0 | |||
Conversion of ADR shares | £ 0 | |||
Ending balance (shares) | 85,921,056 | 45,308,559 | 46,000,000 | |
Ending balance | £ (223) | £ (143) | £ (145) | |
Employee share ownership trust | ||||
Changes in equity [abstract] | ||||
Beginning balance (shares) | 9,021,714 | 12,000,000 | ||
Beginning balance | £ (24) | £ (41) | ||
Own shares purchased (shares) | 3,000,000 | 5,000,000 | ||
Own shares purchased | £ (6) | £ (9) | ||
Share options exercised (shares) | 0 | 0 | ||
Share options exercised | £ 0 | £ 0 | ||
Executive share awards vested (shares) | (8,000,000) | (8,000,000) | ||
Executive share awards vested | £ 22 | £ 26 | ||
Conversion of ADR shares (shares) | 3,000,000 | |||
Conversion of ADR shares | £ (6) | |||
Ending balance (shares) | 7,255,789 | 9,021,714 | 12,000,000 | |
Ending balance | £ (14) | £ (24) | £ (41) | |
Own Shares | ||||
Changes in equity [abstract] | ||||
Beginning balance (shares) | 54,000,000 | 58,000,000 | ||
Beginning balance | [1] | £ (167) | £ (186) | £ (96) |
Own shares purchased (shares) | 44,000,000 | 5,000,000 | ||
Own shares purchased | £ (86) | £ (9) | ||
Share options exercised (shares) | 0 | (1,000,000) | ||
Share options exercised | £ 0 | £ 2 | ||
Executive share awards vested (shares) | (8,000,000) | (8,000,000) | ||
Executive share awards vested | £ 22 | £ 26 | ||
Conversion of ADR shares (shares) | 3,000,000 | |||
Conversion of ADR shares | £ (6) | |||
Ending balance (shares) | 93,000,000 | 54,000,000 | 58,000,000 | |
Ending balance | [1] | £ (237) | £ (167) | £ (186) |
[1] | For further analysis of own shares, see note 21. |
Own shares - Summary of Own S_2
Own shares - Summary of Own Shares, Footnotes (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Aggregate nominal value of treasury shares held at cost | £ 4 | £ 2 | |
Aggregate nominal value of shares held in employee share ownership trust | 0 | 0 | |
Repurchase of ordinary share capital | 86 | 9 | £ 221 |
Proceeds from issue of own shares | £ 2 | £ 5 | £ 53 |
Treasury shares | |||
Own shares held (in shares) | 85,921,056 | 45,308,559 | 46,000,000 |
Employee share ownership trust | |||
Own shares held (in shares) | 7,255,789 | 9,021,714 | 12,000,000 |
Share-based payments - Summary
Share-based payments - Summary of Plans and Analysis of Total Charge by Type of Award (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share/Save Plans | £ 72 | £ 67 | £ 84 |
Employee Saveshare Plans | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share/Save Plans | 36 | 38 | 42 |
Incentive Share Plan (ISP) | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share/Save Plans | 16 | 6 | 16 |
Deferred Bonus Plan (DBP) | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share/Save Plans | 7 | 6 | 4 |
Retention Share Plan (RSP) | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share/Save Plans | 9 | 17 | 21 |
Other plans | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share/Save Plans | £ 4 | £ 0 | £ 1 |
Share-based payments - Addition
Share-based payments - Additional Information (Detail) | 12 Months Ended | ||
Mar. 31, 2020GBP (£)year | Mar. 31, 2019GBP (£) | Mar. 31, 2018GBP (£) | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share-based awards, performance period | 3 years | ||
Share-based awards, expected life after vesting date | 6 months | ||
Employee Saveshare Plans | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share-based awards, exercise period | 6 months | ||
Weighted average share price (in GBP per share) | £ 2.03 | £ 2.49 | £ 3.11 |
Employee Saveshare Plans | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share-based arrangements, term | year | 3 | ||
Employee Saveshare Plans | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share-based arrangements, term | year | 5 | ||
Employee Saveshare Plans | Five Year Plans | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Percentage of discount set to market price | 20.00% | ||
Employee Saveshare Plans | Three Year Plans | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Percentage of discount set to market price | 10.00% | ||
Yourshare | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Award amount per employee | £ 500 | ||
Vesting period | 3 years | ||
Incentive Share Plan (ISP) | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share-based payment arrangements, entitlement period | 3 years | ||
Percentage of each award linked to total shareholder return | 40.00% | ||
Percentage of each award linked to three-year cumulative free cash flow measure | 40.00% | ||
Cumulative period for free cash flow measure | 3 years | ||
Percentage of growth in underlying revenue excluding transit | 20.00% | ||
Deferred Bonus Plan (DBP) | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Share-based arrangements, term | year | 3 | ||
Weighted average share price (in GBP per share) | £ 1.95 | 2.09 | 2.82 |
RSP | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Weighted average share price (in GBP per share) | £ 1.77 | £ 2.17 | £ 2.82 |
Share-based payments - Summar_2
Share-based payments - Summary of Movements in Employee Saveshare Options (Detail) - Employee Saveshare Plans option in Millions | 12 Months Ended | ||
Mar. 31, 2020GBP (£)option | Mar. 31, 2019GBP (£)option | Mar. 31, 2018GBP (£)option | |
Number of share options | |||
Outstanding at 1 April (shares) | option | 190 | 175 | 189 |
Granted (shares) | option | 107 | 80 | 69 |
Forfeited (shares) | option | (50) | (44) | (41) |
Exercised (shares) | option | 0 | (1) | (30) |
Expired (shares) | option | (33) | (20) | (12) |
Outstanding at 31 March (shares) | option | 214 | 190 | 175 |
Exercisable at 31 March (shares) | option | 0 | 0 | 0 |
Weighted average exercise price | |||
Outstanding at 1 April (in gbp per share) | £ | £ 2.54 | £ 3.06 | £ 3.13 |
Granted (in gbp per share) | £ | 1.68 | 1.75 | 2.50 |
Forfeited (in gbp per share) | £ | 2.51 | 2.98 | 3.28 |
Exercised (in gbp per share) | £ | 1.74 | 2.47 | 1.69 |
Expired (in gbp per share) | £ | 3.18 | 2.94 | 3.53 |
Outstanding at 31 March (in gbp per share) | £ | 2.02 | 2.54 | 3.06 |
Exercisable at 31 March (in gbp per share) | £ | £ 3.19 | £ 2.49 | £ 3.20 |
Share-based payments - Summaris
Share-based payments - Summarises Information Relating to Options Outstanding and Exercisable Under Employee Saveshare Plans (Detail) - Employee Saveshare Plans option in Millions | Mar. 31, 2020GBP (£)mooption | Mar. 31, 2019option | Mar. 31, 2018option | Mar. 31, 2017option |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 2.02 | |||
Number of outstanding options (shares) | option | 214 | 190 | 175 | 189 |
Weighted average remaining contractual life (in months) | mo | 34 | |||
Due within one year | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 3.02 | |||
Number of outstanding options (shares) | option | 26 | |||
Weighted average remaining contractual life (in months) | mo | 10 | |||
Between one and two years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 2.28 | |||
Number of outstanding options (shares) | option | 34 | |||
Weighted average remaining contractual life (in months) | mo | 22 | |||
Between two and three years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 2 | |||
Number of outstanding options (shares) | option | 58 | |||
Weighted average remaining contractual life (in months) | mo | 34 | |||
Between three and four years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 1.70 | |||
Number of outstanding options (shares) | option | 35 | |||
Weighted average remaining contractual life (in months) | mo | 46 | |||
Between four and five years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 1.64 | |||
Number of outstanding options (shares) | option | 61 | |||
Weighted average remaining contractual life (in months) | mo | 58 | |||
Minimum | Due within one year | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 2.43 | |||
Minimum | Between one and two years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | 1.70 | |||
Minimum | Between two and three years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | 1.64 | |||
Maximum | Due within one year | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | 3.97 | |||
Maximum | Between one and two years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | 3.76 | |||
Maximum | Between two and three years | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Exercise price of outstanding share options (in gbp per share) | £ 3.53 |
Share-based payments - Summar_3
Share-based payments - Summary of Movements in Executive Share Plan Awards (Detail) shares in Millions | 12 Months Ended |
Mar. 31, 2020shares | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
At 31 March 2019 (shares) | 93 |
Awards granted (shares) | 47 |
Awards vested (shares) | (8) |
Awards lapsed (shares) | (26) |
Dividend shares reinvested (shares) | 10 |
At 31 March 2020 (shares) | 116 |
ISP | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
At 31 March 2019 (shares) | 74 |
Awards granted (shares) | 34 |
Awards vested (shares) | 0 |
Awards lapsed (shares) | (25) |
Dividend shares reinvested (shares) | 8 |
At 31 March 2020 (shares) | 91 |
DBP | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
At 31 March 2019 (shares) | 8 |
Awards granted (shares) | 5 |
Awards vested (shares) | (2) |
Awards lapsed (shares) | 0 |
Dividend shares reinvested (shares) | 1 |
At 31 March 2020 (shares) | 12 |
RSP | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
At 31 March 2019 (shares) | 11 |
Awards granted (shares) | 8 |
Awards vested (shares) | (6) |
Awards lapsed (shares) | (1) |
Dividend shares reinvested (shares) | 1 |
At 31 March 2020 (shares) | 13 |
Share-based payments - Summar_4
Share-based payments - Summary of Fair Values and Key Assumptions Used for Valuing Grants Made Under Employee Saveshare Plans and ISP (Detail) - GBP (£) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Saveshare Plans | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Weighted average fair value (in GBP per share) | £ 0.39 | £ 0.41 | £ 0.56 |
Weighted average share price (in GBP per share) | 2.06 | 2.08 | 2.96 |
Weighted average exercise price of options granted (in GBP per share) | £ 1.68 | £ 1.75 | £ 2.50 |
Employee Saveshare Plans | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Expected dividend yield (percent) | 4.16% | 3.47% | 3.12% |
Risk free rates (percent) | 0.55% | 0.74% | 0.10% |
Expected volatility (percent) | 25.00% | 23.30% | 23.10% |
Employee Saveshare Plans | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Expected dividend yield (percent) | 5.01% | 3.83% | 3.21% |
Risk free rates (percent) | 0.63% | 1.07% | 0.20% |
Expected volatility (percent) | 28.10% | 25.80% | 24.30% |
ISP | |||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||
Weighted average fair value (in GBP per share) | £ 1.52 | £ 1.56 | £ 2.02 |
Weighted average share price (in GBP per share) | £ 2.02 | £ 2.11 | £ 2.81 |
Risk free rates (percent) | 0.70% | 0.70% | 0.20% |
Expected volatility (percent) | 24.30% | 23.50% | 23.60% |
Assets and liabilities classi_3
Assets and liabilities classified as held for sale - Summary of Assets and Liabilities Held for Sale (Detail) £ in Millions | 12 Months Ended | ||||
Mar. 31, 2020GBP (£)country | Apr. 01, 2019GBP (£) | Mar. 31, 2019GBP (£) | Mar. 31, 2018GBP (£) | ||
Assets [abstract] | |||||
Intangible assets | £ 13,889 | £ 14,315 | £ 14,385 | £ 14,447 | |
Property, plant and equipment | 18,474 | 17,801 | 17,835 | 17,000 | |
Right-of-use assets | 5,391 | [1] | 5,155 | ||
Contract assets | 1,721 | 1,602 | |||
Deferred tax assets | 300 | 1,349 | 1,347 | 1,326 | |
Current tax receivable | 67 | 110 | 77 | ||
Cash and cash equivalents | 1,549 | 1,666 | 528 | ||
Liabilities [abstract] | |||||
Contract liabilities | 1,151 | 1,425 | |||
Lease liabilities | 6,560 | 6,269 | |||
Current tax liabilities | 21 | 15 | 83 | ||
Retirement benefit obligations | 1,140 | 7,182 | 6,847 | ||
Provisions | 719 | £ 797 | £ 1,006 | £ 1,055 | |
Disposal groups classified as held for sale | |||||
Assets [abstract] | |||||
Intangible assets | 35 | ||||
Property, plant and equipment | 37 | ||||
Right-of-use assets | 34 | ||||
Trade and other receivables | 87 | ||||
Contract assets | 8 | ||||
Deferred tax assets | 4 | ||||
Inventories | 1 | ||||
Current tax receivable | 19 | ||||
Cash and cash equivalents | 43 | ||||
Assets held for sale | 268 | ||||
Liabilities [abstract] | |||||
Trade and other payables | 104 | ||||
Contract liabilities | 28 | ||||
Lease liabilities | 62 | ||||
Current tax liabilities | 4 | ||||
Retirement benefit obligations | 8 | ||||
Provisions | 5 | ||||
Liabilities held for sale | £ 211 | ||||
Latin America divestment | |||||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||||
Number of countries included in divestment | country | 16 | ||||
Latin America divestment | Specific Items | Disposal groups classified as held for sale | |||||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||||
Impairment loss recognised in profit or loss | £ 90 | ||||
France divestment | Specific Items | Disposal groups classified as held for sale | |||||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | |||||
Impairment loss recognised in profit or loss | £ 37 | ||||
[1] | Right-of-use assets and lease liabilities arise following adoption of IFRS 16 on 1 April 2019. See note 1 to the consolidated financial statements. |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Non-current assets | |||
Fair value through other comprehensive income | £ 9 | £ 48 | £ 0 |
Available-for-sale | 46 | ||
Fair value through profit or loss | 11 | 6 | 7 |
Non-current assets | 20 | 54 | 53 |
Current assets | |||
Available-for-sale | 2,575 | ||
Investments held at amortised cost | 5,092 | 3,214 | 0 |
Loans and receivables | 447 | ||
Current financial assets | £ 5,092 | £ 3,214 | £ 3,022 |
Investments - Additional Inform
Investments - Additional Information (Detail) - GBP (£) | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of investment [line items] | |||
Fair value through other comprehensive income | £ 9,000,000 | £ 48,000,000 | |
Available-for-sale | £ 2,621,000,000 | ||
Level 2 | |||
Disclosure of investment [line items] | |||
Fair value through other comprehensive income | 0 | 0 | |
Available-for-sale | 2,575,000,000 | ||
Level 3 | |||
Disclosure of investment [line items] | |||
Fair value through other comprehensive income | 9,000,000 | 10,000,000 | |
Available-for-sale | 14,000,000 | ||
Investments held at amortised cost | |||
Disclosure of investment [line items] | |||
Investment in liquidity funds | 4,209,000,000 | 2,522,000,000 | |
Available-for-sale | |||
Disclosure of investment [line items] | |||
Investment in liquidity funds | 2,575,000,000 | ||
Sterling | Level 2 | |||
Disclosure of investment [line items] | |||
Available-for-sale investments | 2,180,000,000 | ||
Sterling | Investments held at amortised cost | |||
Disclosure of investment [line items] | |||
Investments in term deposits denominated in currencies | 4,181,000,000 | 2,687,000,000 | 416,000,000 |
US Dollars | Investments held at amortised cost | |||
Disclosure of investment [line items] | |||
Investments in term deposits denominated in currencies | 29,000,000 | 26,000,000 | 27,000,000 |
Euro | Level 2 | |||
Disclosure of investment [line items] | |||
Available-for-sale investments | 395,000,000 | ||
Euro | Investments held at amortised cost | |||
Disclosure of investment [line items] | |||
Investments in term deposits denominated in currencies | 882,000,000 | 499,000,000 | 0 |
Other Currencies | Investments held at amortised cost | |||
Disclosure of investment [line items] | |||
Investments in term deposits denominated in currencies | £ 0 | £ 2,000,000 | £ 4,000,000 |
Investments - Fair Value Hierar
Investments - Fair Value Hierarchy of Investments (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Non-current and current investments | |||
Fair value through other comprehensive income | £ 9 | £ 48 | |
Available-for-sale | £ 2,621 | ||
Fair value through profit or loss | 11 | 6 | 7 |
Total | 20 | 54 | 2,628 |
Level 1 | |||
Non-current and current investments | |||
Fair value through other comprehensive income | 0 | 38 | |
Available-for-sale | 32 | ||
Fair value through profit or loss | 11 | 6 | 7 |
Total | 11 | 44 | 39 |
Level 2 | |||
Non-current and current investments | |||
Fair value through other comprehensive income | 0 | 0 | |
Available-for-sale | 2,575 | ||
Fair value through profit or loss | 0 | 0 | 0 |
Total | 0 | 0 | 2,575 |
Level 3 | |||
Non-current and current investments | |||
Fair value through other comprehensive income | 9 | 10 | |
Available-for-sale | 14 | ||
Fair value through profit or loss | 0 | 0 | |
Total | £ 9 | £ 10 | £ 14 |
Cash and cash equivalents - Sum
Cash and cash equivalents - Summary of Cash and Cash Equivalents (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash equivalents | |||||
Total cash and cash equivalents | £ 1,549 | £ 1,666 | £ 528 | ||
Bank overdrafts (note 26) | (183) | (72) | (29) | ||
Cash and cash equivalents per the cash flow statement | [1] | 1,409 | 1,594 | 499 | £ 511 |
Financial assets at amortised cost, category | |||||
Disclosure of cash and cash equivalents [line items] | |||||
Cash at bank and in hand | 463 | 495 | |||
Cash equivalents | |||||
Total cash equivalents | 1,086 | 1,171 | |||
Total cash and cash equivalents | 1,549 | 1,666 | |||
Bank overdrafts (note 26) | (183) | (72) | |||
Cash and cash equivalents classified as held for sale (note 23) | 43 | 0 | |||
Cash and cash equivalents per the cash flow statement | 1,409 | 1,594 | |||
Loans and receivables, category | |||||
Disclosure of cash and cash equivalents [line items] | |||||
Cash at bank and in hand | 446 | ||||
Cash equivalents | |||||
Total cash equivalents | 82 | ||||
Total cash and cash equivalents | 528 | ||||
Bank overdrafts (note 26) | (29) | ||||
Cash and cash equivalents classified as held for sale (note 23) | 0 | ||||
Cash and cash equivalents per the cash flow statement | 499 | ||||
UK deposits | Financial assets at amortised cost, category | |||||
Cash equivalents | |||||
Deposits | 1,043 | 1,132 | |||
UK deposits | Loans and receivables, category | |||||
Cash equivalents | |||||
Deposits | 31 | ||||
US deposits | Financial assets at amortised cost, category | |||||
Cash equivalents | |||||
Deposits | 8 | 3 | |||
US deposits | Loans and receivables, category | |||||
Cash equivalents | |||||
Deposits | 26 | ||||
Other deposits | Financial assets at amortised cost, category | |||||
Cash equivalents | |||||
Deposits | £ 35 | £ 36 | |||
Other deposits | Loans and receivables, category | |||||
Cash equivalents | |||||
Deposits | £ 25 | ||||
[1] | Net of bank overdrafts of £183m (2018/19: £72m, 2017/18: £29m). |
Cash and cash equivalents - Add
Cash and cash equivalents - Additional Information (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | £ 42 | £ 44 | £ 32 |
Held In Countries Prevent From Accessing Cash Balance | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | 29 | 40 | 29 |
Held in Escrow Accounts or in Commercial Arrangements | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | £ 13 | £ 4 | £ 3 |
Loans and Other Borrowings - Su
Loans and Other Borrowings - Summary of Components of Capital (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of detailed information about borrowings [abstract] | ||||
Net debt | £ 17,969 | £ 17,098 | £ 11,035 | £ 9,627 |
Total parent shareholders’ equity | 14,741 | 10,140 | 9,877 | |
Total | 32,710 | 21,175 | 19,504 | |
Non-controlling interests | £ 22 | £ 27 | £ 34 |
Loans and Other Borrowings - _2
Loans and Other Borrowings - Summary of Reconciliation From Most Directly Comparable IFRS Measure to Net Debt (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of detailed information about borrowings [abstract] | ||||
Loans and other borrowings | £ 19,334 | £ 16,876 | £ 14,275 | |
Lease liabilities | 6,560 | £ 6,269 | ||
Net Liabilities Classified As Held For Sale | 19 | 0 | 0 | |
Cash and cash equivalents | (1,549) | (1,666) | (528) | |
Current asset investments | (5,092) | (3,214) | (3,022) | |
Total | 19,272 | 11,996 | 10,725 | |
To retranslate debt balances at swap rates where hedged by currency swaps | (1,049) | (701) | (874) | |
To remove accrued interest applied to reflect the effective interest method and fair value adjustments | (254) | (260) | (224) | |
Net debt | £ 17,969 | £ 17,098 | £ 11,035 | £ 9,627 |
Loans and Other Borrowings - _3
Loans and Other Borrowings - Summary of Reconciliation From Most Directly Comparable IFRS Measure to Net Debt, Footnotes (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | ||||
Lease liabilities | £ 6,560 | £ 6,269 | ||
Cash and cash equivalents | 1,549 | £ 1,666 | £ 528 | |
Disposal groups classified as held for sale | ||||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | ||||
Lease liabilities | 62 | |||
Cash and cash equivalents | £ 43 |
Loans and Other Borrowings - _4
Loans and Other Borrowings - Summary of Key Components of Net Debt (Detail) - GBP (£) £ in Millions | Apr. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of detailed information about borrowings [Line Items] | ||||
Increase in net debt during the year | £ 6,934 | |||
Debt at beginning balance | £ 11,035 | 11,035 | ||
IFRS 16 lease liabilities | 6,063 | |||
Issuance/ (maturities) | (298) | |||
Net lease additions | 1,139 | |||
Foreign exchange | 4 | |||
Other movements | 26 | |||
Debt at ending balance | 17,098 | 17,969 | ||
Finance lease liabilities | 206 | £ 206 | £ 223 | |
Removal of the accrued interest and fair value adjustments | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | 3 | 3 | ||
Other movements | (43) | |||
Debt at ending balance | 3 | (40) | ||
Gross carrying amount | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | 15,912 | 15,912 | ||
IFRS 16 lease liabilities | 6,063 | |||
Issuance/ (maturities) | 1,504 | |||
Net lease additions | 1,139 | |||
Foreign exchange | 7 | |||
Other movements | 25 | |||
Debt at ending balance | 21,975 | 24,650 | ||
Gross carrying amount | Due within one year | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | 2,100 | 2,100 | ||
IFRS 16 lease liabilities | (16) | |||
Issuance/ (maturities) | (629) | |||
Foreign exchange | 33 | |||
Transfer to within one year | 1,326 | |||
Other movements | 28 | |||
Debt at ending balance | 2,084 | 2,842 | ||
Gross carrying amount | Over 12 months | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | 14,776 | 14,776 | ||
IFRS 16 lease liabilities | (190) | |||
Issuance/ (maturities) | 2,843 | |||
Foreign exchange | 398 | |||
Transfer to within one year | (1,326) | |||
Other movements | (9) | |||
Debt at ending balance | 14,586 | 16,492 | ||
Gross carrying amount | Lease liabilities | Due within one year | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
IFRS 16 lease liabilities | 725 | |||
Issuance/ (maturities) | (791) | |||
Transfer to within one year | 897 | |||
Other movements | (19) | |||
Debt at ending balance | 725 | 812 | ||
Gross carrying amount | Lease liabilities | Over 12 months | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
IFRS 16 lease liabilities | 5,544 | |||
Net lease additions | 1,139 | |||
Foreign exchange | 5 | |||
Transfer to within one year | (897) | |||
Other movements | (43) | |||
Debt at ending balance | 5,544 | 5,748 | ||
Gross carrying amount | Impact of cross-currency swaps | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | (701) | (701) | ||
Issuance/ (maturities) | 81 | |||
Foreign exchange | (429) | |||
Debt at ending balance | (701) | (1,049) | ||
Gross carrying amount | Removal of the accrued interest and fair value adjustments | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | (263) | (263) | ||
Other movements | 68 | |||
Debt at ending balance | (263) | (195) | ||
Cash and cash equivalents | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | (1,666) | (1,666) | ||
Issuance/ (maturities) | 75 | |||
Foreign exchange | (2) | |||
Other movements | 44 | |||
Debt at ending balance | (1,666) | (1,549) | ||
Current asset investments | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Debt at beginning balance | (3,214) | (3,214) | ||
Issuance/ (maturities) | (1,877) | |||
Foreign exchange | (1) | |||
Debt at ending balance | £ (3,214) | £ (5,092) |
Loans and Other Borrowings - _5
Loans and Other Borrowings - Summary of Listed Bonds and Other Debt (Detail) | 12 Months Ended | |||||||||
Mar. 31, 2020GBP (£) | Mar. 31, 2020EUR (€) | Mar. 31, 2020USD ($) | Apr. 01, 2019GBP (£) | Mar. 31, 2019GBP (£) | Mar. 31, 2019EUR (€) | Mar. 27, 2019GBP (£) | Mar. 31, 2018GBP (£) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Total listed bonds | £ 18,044,000,000 | £ 15,953,000,000 | £ 13,491,000,000 | |||||||
Finance lease liabilities | £ 206,000,000 | 206,000,000 | 223,000,000 | |||||||
Other loans | 1,107,000,000 | 645,000,000 | 532,000,000 | |||||||
Bank overdrafts | 183,000,000 | 72,000,000 | 29,000,000 | |||||||
Other borrowings | 1,290,000,000 | 717,000,000 | 561,000,000 | |||||||
Total loans and other borrowings | 19,334,000,000 | £ 16,876,000,000 | £ 14,275,000,000 | |||||||
3.25% €600m bond due August 2018 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 600,000,000 | |||||||||
Loans and borrowings, interest rate | 3.25% | 3.25% | 3.25% | |||||||
Total listed bonds | £ 541,000,000 | |||||||||
2.35% US$800m bond due February 2019 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | $ | $ 800,000,000 | |||||||||
Loans and borrowings, interest rate | 2.35% | 2.35% | 2.35% | |||||||
Total listed bonds | £ 572,000,000 | |||||||||
4.38% £450m bond due March 2019 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 450,000,000 | |||||||||
Loans and borrowings, interest rate | 4.38% | 4.38% | 4.38% | |||||||
Total listed bonds | £ 455,000,000 | |||||||||
1.125% €1,000m bond due June 2019 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 1,000,000,000 | |||||||||
Loans and borrowings, interest rate | 1.125% | 1.125% | ||||||||
Total listed bonds | £ 869,000,000 | 883,000,000 | ||||||||
8.625% £300m bond due March 2020 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 300,000,000 | |||||||||
Loans and borrowings, interest rate | 8.625% | 8.625% | 8.625% | |||||||
Total listed bonds | 300,000,000 | 300,000,000 | ||||||||
0.625% €1,500m bond due March 2021 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 1,500,000,000 | |||||||||
Loans and borrowings, interest rate | 0.625% | 0.625% | 0.625% | |||||||
Total listed bonds | £ 1,326,000,000 | 1,289,000,000 | 1,309,000,000 | |||||||
0.5% €575m bond due June 2022 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 575,000,000 | |||||||||
Loans and borrowings, interest rate | 0.50% | 0.50% | 0.50% | |||||||
Total listed bonds | £ 509,000,000 | 495,000,000 | 502,000,000 | |||||||
1.125% €1,100m bond due March 2023 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 1,100,000,000 | |||||||||
Loans and borrowings, interest rate | 1.125% | 1.125% | 1.125% | |||||||
Total listed bonds | £ 972,000,000 | 946,000,000 | 961,000,000 | |||||||
0.875% €500m bond due September 2023 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 500,000,000 | |||||||||
Loans and borrowings, interest rate | 0.875% | 0.875% | 0.875% | |||||||
Total listed bonds | £ 442,000,000 | 430,000,000 | ||||||||
4.5% US$675m bond due December 2023 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | $ | $ 675,000,000 | |||||||||
Loans and borrowings, interest rate | 4.50% | 4.50% | 4.50% | |||||||
Total listed bonds | £ 551,000,000 | 524,000,000 | ||||||||
1% €575m bond due June 2024 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 575,000,000 | |||||||||
Loans and borrowings, interest rate | 1.00% | 1.00% | 1.00% | |||||||
Total listed bonds | £ 512,000,000 | 498,000,000 | 506,000,000 | |||||||
1% €1,100m bond due November 2024 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 1,100,000,000 | |||||||||
Loans and borrowings, interest rate | 1.00% | 1.00% | 1.00% | |||||||
Total listed bonds | £ 970,000,000 | 943,000,000 | 959,000,000 | |||||||
3.50% £250m index linked bond due April 2025 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 250,000,000 | |||||||||
Loans and borrowings, interest rate | 3.50% | 3.50% | 3.50% | |||||||
Total listed bonds | £ 445,000,000 | 433,000,000 | 419,000,000 | |||||||
0.5% €650m bond due September 2025 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 650,000,000 | |||||||||
Loans and borrowings, interest rate | 0.50% | 0.50% | 0.50% | |||||||
Total listed bonds | £ 574,000,000 | |||||||||
1.75% €1,300m bond due March 2026 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 1,300,000,000 | |||||||||
Loans and borrowings, interest rate | 1.75% | 1.75% | 1.75% | |||||||
Total listed bonds | £ 1,149,000,000 | 1,118,000,000 | 1,137,000,000 | |||||||
1.5% €1,150m bond due June 2027 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 1,150,000,000 | |||||||||
Loans and borrowings, interest rate | 1.50% | 1.50% | 1.50% | |||||||
Total listed bonds | £ 1,020,000,000 | 993,000,000 | 1,009,000,000 | |||||||
2.125% €500m bond due September 2028 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 500,000,000 | |||||||||
Loans and borrowings, interest rate | 2.125% | 2.125% | 2.125% | |||||||
Total listed bonds | £ 445,000,000 | 433,000,000 | ||||||||
5.125% US$700m bond due December 2028 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | $ | $ 700,000,000 | |||||||||
Loans and borrowings, interest rate | 5.125% | 5.125% | 5.125% | |||||||
Total listed bonds | £ 570,000,000 | 542,000,000 | ||||||||
5.75% £600m bond due December 2028 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 600,000,000 | £ 600,000,000 | ||||||||
Loans and borrowings, interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||||||
Total listed bonds | £ 700,000,000 | 710,000,000 | 721,000,000 | |||||||
1.125% €750m bond due September 2029 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 750,000,000 | |||||||||
Loans and borrowings, interest rate | 1.25% | 1.25% | 1.25% | |||||||
Total listed bonds | £ 658,000,000 | |||||||||
3.25% US$1,000m bond due November 2029 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | $ | $ 1,000,000,000 | |||||||||
Loans and borrowings, interest rate | 3.25% | 3.25% | 3.25% | |||||||
Total listed bonds | £ 807,000,000 | |||||||||
9.625% US$2,670m bond due December 2030a (minimum 8.625%) | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | $ | $ 2,670,000,000 | |||||||||
Loans and borrowings, interest rate | 9.625% | 9.625% | 9.625% | |||||||
Total listed bonds | £ 2,203,000,000 | 2,096,000,000 | 1,943,000,000 | |||||||
Percentage of interest accrued if rating downgrade | 0.25% | 0.25% | 0.25% | |||||||
Percentage of interest accrued if rating upgrade | (0.25%) | (0.25%) | (0.25%) | |||||||
3.125% £500m bond due November 2031 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 500,000,000 | |||||||||
Loans and borrowings, interest rate | 3.125% | 3.125% | 3.125% | |||||||
Total listed bonds | £ 502,000,000 | 502,000,000 | 502,000,000 | |||||||
3.64% £330m bond due June 2033 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 330,000,000 | |||||||||
Loans and borrowings, interest rate | 3.64% | 3.64% | 3.64% | |||||||
Total listed bonds | £ 339,000,000 | 339,000,000 | ||||||||
1.613% £330m index linked bond due June 2033 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 330,000,000 | |||||||||
Loans and borrowings, interest rate | 1.613% | 1.613% | 1.613% | |||||||
Total listed bonds | £ 343,000,000 | 340,000,000 | ||||||||
6.375% £500m bond due June 2037 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 500,000,000 | |||||||||
Loans and borrowings, interest rate | 6.375% | 6.375% | 6.375% | |||||||
Total listed bonds | £ 522,000,000 | 522,000,000 | 522,000,000 | |||||||
3.883% £330m bond due June 2039 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 330,000,000 | |||||||||
Loans and borrowings, interest rate | 3.883% | 3.883% | 3.883% | |||||||
Total listed bonds | £ 340,000,000 | 340,000,000 | ||||||||
1.739% £330m index linked bond due June 2039 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 330,000,000 | |||||||||
Loans and borrowings, interest rate | 1.739% | 1.739% | 1.739% | |||||||
Total listed bonds | £ 343,000,000 | 340,000,000 | ||||||||
3.924% £340m bond due June 2042 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 340,000,000 | |||||||||
Loans and borrowings, interest rate | 3.924% | 3.924% | 3.924% | |||||||
Total listed bonds | £ 350,000,000 | 350,000,000 | ||||||||
1.774% £340m index linked bond due June 2042 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 340,000,000 | |||||||||
Loans and borrowings, interest rate | 1.774% | 1.774% | 1.774% | |||||||
Total listed bonds | £ 354,000,000 | 351,000,000 | ||||||||
3.625% £250m bond due November 2047 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | £ 250,000,000 | |||||||||
Loans and borrowings, interest rate | 3.625% | 3.625% | 3.625% | |||||||
Total listed bonds | £ 250,000,000 | £ 250,000,000 | £ 250,000,000 | |||||||
4.25% US$500m bond due November 2049 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | $ | $ 500,000,000 | |||||||||
Loans and borrowings, interest rate | 4.25% | 4.25% | 4.25% | |||||||
Total listed bonds | £ 407,000,000 | |||||||||
1.874% €500m bond due August 2080 | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, face amount | € | € 500,000,000 | |||||||||
Loans and borrowings, interest rate | 1.874% | 1.874% | 1.874% | |||||||
Total listed bonds | £ 441,000,000 | |||||||||
Put option, expiration period | 5 years 6 months | |||||||||
Minimum | 9.625% US$2,670m bond due December 2030a (minimum 8.625%) | ||||||||||
Disclosure of detailed information about borrowings [Line Items] | ||||||||||
Loans and borrowings, interest rate | 8.625% | 8.625% | 8.625% |
Loans and Other Borrowings - Ad
Loans and Other Borrowings - Additional Information (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of detailed information about borrowings [Line Items] | ||||
Total loans and other borrowings | £ 19,334 | £ 16,876 | £ 14,275 | |
Fair value of finance leases | £ 206 | 206 | 223 | |
Principal Repayment at Hedged Rates | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Principal repayments of loans and borrowings at hedged rate | 18,028 | 15,912 | 13,175 | |
At fair value | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total loans and other borrowings | £ 20,088 | 17,785 | 14,878 | |
Fair value of finance leases | £ 251 | £ 253 |
Loans and Other Borrowings - _6
Loans and Other Borrowings - Summary of Loans and Other Borrowings (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2019 | |
Current liabilities | ||||
Listed bonds | £ 1,552 | £ 1,367 | £ 1,702 | |
Finance leases | 16 | 18 | ||
Other loans and bank overdrafts | 1,290 | 717 | 561 | |
Total current liabilities | 2,842 | 2,100 | 2,281 | £ 2,084 |
Non-current liabilities | ||||
Listed bonds | 16,492 | 14,586 | 11,789 | |
Finance leases | 190 | 205 | ||
Total non-current liabilities | 16,492 | 14,776 | 11,994 | £ 14,586 |
Total loans and other borrowings | 19,334 | 16,876 | 14,275 | |
Collateral received on swaps | £ 1,091 | £ 638 | £ 525 |
Loans and Other Borrowings - _7
Loans and Other Borrowings - Summary of Principal Repayments of Loans and Other Borrowings (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2019 | |
Disclosure of detailed information about borrowings [Line Items] | ||||
Within one year, or on demand | £ 2,842 | £ 2,100 | £ 2,281 | £ 2,084 |
Total due for repayment after more than one year | 16,492 | 14,776 | 11,994 | £ 14,586 |
Total loans and other borrowings | 19,334 | 16,876 | 14,275 | |
Gross carrying amount | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Within one year, or on demand | 2,842 | 2,100 | 2,272 | |
Total due for repayment after more than one year | 16,487 | 14,726 | 11,930 | |
Total loans and other borrowings | 19,329 | 16,826 | 14,202 | |
Fair value adjustments | 5 | 50 | 73 | |
Total loans and other borrowings | 19,334 | 16,876 | 14,275 | |
Gross carrying amount | Between one and two years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 0 | 1,309 | 1,192 | |
Gross carrying amount | Between two and three years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 1,482 | 15 | 1,332 | |
Gross carrying amount | Between three and four years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 987 | 1,463 | 18 | |
Gross carrying amount | Between four and five years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 1,482 | 964 | 1,489 | |
Gross carrying amount | After five years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 12,536 | 10,975 | 7,899 | |
Effect of hedging and interest | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Within one year, or on demand | (406) | (264) | (291) | |
Total due for repayment after more than one year | (895) | (650) | (736) | |
Total loans and other borrowings | (1,301) | (914) | (1,027) | |
Effect of hedging and interest | Between one and two years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 0 | (133) | (66) | |
Effect of hedging and interest | Between two and three years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | (125) | 0 | (154) | |
Effect of hedging and interest | Between three and four years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | (9) | (89) | 0 | |
Effect of hedging and interest | Between four and five years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 9 | 33 | (111) | |
Effect of hedging and interest | After five years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | (770) | (461) | (405) | |
Principal repayments at hedged rates | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Within one year, or on demand | 2,436 | 1,836 | 1,981 | |
Total due for repayment after more than one year | 15,592 | 14,076 | 11,194 | |
Total loans and other borrowings | 18,028 | 15,912 | 13,175 | |
Principal repayments at hedged rates | Between one and two years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 0 | 1,176 | 1,126 | |
Principal repayments at hedged rates | Between two and three years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 1,357 | 15 | 1,178 | |
Principal repayments at hedged rates | Between three and four years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 978 | 1,374 | 18 | |
Principal repayments at hedged rates | Between four and five years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | 1,491 | 997 | 1,378 | |
Principal repayments at hedged rates | After five years | ||||
Disclosure of detailed information about borrowings [Line Items] | ||||
Total due for repayment after more than one year | £ 11,766 | £ 10,514 | £ 7,494 |
Finance expense - Summary of Fi
Finance expense - Summary of Finance Expense (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Interest on: | ||||
Lease liabilities | £ 140 | |||
Unwinding of discount on provisions | 2 | £ 14 | ||
Total finance expense | 941 | 790 | £ 776 | |
Before Specific Items | ||||
Interest on: | ||||
Financial liabilities at amortised cost and associated derivatives | 608 | 582 | 478 | |
Lease liabilities | 140 | |||
Finance leases | 13 | 16 | ||
Derivatives | 3 | 0 | 14 | |
Fair value movements on derivatives not in a designated hedge relationship | (3) | (3) | 1 | |
Reclassification of cash flow hedge from other comprehensive income | 46 | 45 | 34 | |
Unwinding of discount on provisions | 2 | 14 | 15 | |
Total finance expense | 796 | 651 | 558 | |
Specific Items | ||||
Interest on: | ||||
Total finance expense | [1] | £ 145 | £ 139 | £ 218 |
[1] | For a definition of specific items, see page 204. An analysis of specific items is provided in note 9. |
Financial instruments and ris_3
Financial instruments and risk management - Additional Information (Detail) | 12 Months Ended | |||
Mar. 31, 2020GBP (£) | Mar. 31, 2019GBP (£) | Mar. 31, 2018GBP (£) | Mar. 31, 2020USD ($) | |
Disclosure of Nature and Extent of Risks Arising From Financial Instruments [Line Items] | ||||
Minimum percentage of fixed rate debt on total debt | 70.00% | 70.00% | ||
Total listed bonds | £ 18,044,000,000 | £ 15,953,000,000 | £ 13,491,000,000 | |
Currency Swap Contract and Interest Rate Swap | Credit Support Agreements | ||||
Disclosure of Nature and Extent of Risks Arising From Financial Instruments [Line Items] | ||||
Notional amount | 2,836,000,000 | |||
Net cash inflow (outflow) from netting and credit support agreements | £ 460,000,000 | 129,000,000 | (220,000,000) | |
9.625% US$2,670m bond due December 2030a (minimum 8.625%) | ||||
Disclosure of Nature and Extent of Risks Arising From Financial Instruments [Line Items] | ||||
Percentage of interest accrued if rating downgrade | 0.25% | 0.25% | ||
Total listed bonds | £ 2,203,000,000 | 2,096,000,000 | 1,943,000,000 | |
Expected change in financial expenses | 11,000,000 | |||
Notional amount | $ | $ 2,670,000,000 | |||
Debt maturing in March 2025 | ||||
Disclosure of Nature and Extent of Risks Arising From Financial Instruments [Line Items] | ||||
Undrawn committed borrowing facilities | 2,100,000,000 | £ 2,100,000,000 | £ 2,100,000,000 | |
Due within one year | ||||
Disclosure of Nature and Extent of Risks Arising From Financial Instruments [Line Items] | ||||
Term debt | £ 1,300,000,000 | |||
Interest rate risk | ||||
Disclosure of Nature and Extent of Risks Arising From Financial Instruments [Line Items] | ||||
Reasonably possible increase in risk variable, percent | 1.00% | |||
Reasonably possible decrease in risk variable, percent | 1.00% | |||
Reasonably possible change in risk variable, percent | 1.00% | |||
Currency risk | ||||
Disclosure of Nature and Extent of Risks Arising From Financial Instruments [Line Items] | ||||
Reasonably possible increase in risk variable, percent | 10.00% | |||
Reasonably possible decrease in risk variable, percent | 10.00% |
Financial instruments and ris_4
Financial instruments and risk management - Summary of Currency and Interest Rate Profile of Loans and Borrowings (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of credit risk exposure [Line Items] | |||
Ratio of fixed to floating (percent) | 100.00% | 100.00% | 100.00% |
Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | £ 18,028 | £ 15,912 | £ 13,175 |
Sterling | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | 17,046 | 15,323 | 12,666 |
Euro | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | 888 | £ 589 | £ 509 |
USD | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | £ 94 | ||
Fixed interest rate | |||
Disclosure of credit risk exposure [Line Items] | |||
Ratio of fixed to floating (percent) | 85.00% | 85.00% | 91.00% |
Weighted average effective fixed interest rate – sterling | 3.90% | 4.00% | 4.40% |
Fixed interest rate | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | £ 15,289 | £ 13,556 | £ 11,990 |
Fixed interest rate | Sterling | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | £ 15,289 | £ 13,556 | £ 11,990 |
Floating interest rate | |||
Disclosure of credit risk exposure [Line Items] | |||
Ratio of fixed to floating (percent) | 15.00% | 15.00% | 9.00% |
Floating interest rate | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | £ 2,739 | £ 2,356 | £ 1,185 |
Floating interest rate | Sterling | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | 1,757 | 1,767 | 676 |
Floating interest rate | Euro | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | 888 | £ 589 | £ 509 |
Floating interest rate | USD | Principal Repayment at Hedged Rates | |||
Disclosure of credit risk exposure [Line Items] | |||
Principal repayments of loans and borrowings at hedged rate | £ 94 |
Financial instruments and ris_5
Financial instruments and risk management - Summary of Impact on Equity, Before Tax, of a 1% Increase in Interest (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Sterling interest rates | |||
Disclosure Of Foreign Currency Exchange Exposure [Line Items] | |||
Interest rate increase (reduce) | £ 989 | £ 672 | £ 628 |
US dollar interest rates | |||
Disclosure Of Foreign Currency Exchange Exposure [Line Items] | |||
Interest rate increase (reduce) | (610) | (350) | (267) |
Euro interest rates | |||
Disclosure Of Foreign Currency Exchange Exposure [Line Items] | |||
Interest rate increase (reduce) | (451) | (399) | (401) |
Sterling strengthening | |||
Disclosure Of Foreign Currency Exchange Exposure [Line Items] | |||
Interest rate increase (reduce) | £ (289) | £ (219) | £ (236) |
Financial instruments and ris_6
Financial instruments and risk management - Summary of Remaining Contractually-Agreed Cash Flows Including Interest Payable for Non-Derivative Financial Liabilities on Undiscounted Basis (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Loans and other borrowings, undiscounted | £ 19,089 | £ 16,612 | £ 14,050 | |
Fair value adjustment | 5 | 50 | 73 | |
Loans and other borrowings | 19,094 | 16,662 | 14,123 | |
Interest on loans and other borrowings, undiscounted | 6,498 | 6,064 | 4,647 | |
Interest payments not yet accrued | (6,258) | (5,850) | (4,495) | |
Interest on loans and other borrowings | 240 | 214 | 152 | |
Trade and other payables, undiscounted | 4,932 | 5,158 | 4,939 | |
Trade and other payables | 4,932 | 5,158 | 4,939 | |
Provisions, undiscounted | 17 | 260 | 372 | |
Impact of discounting | (1) | (29) | (72) | |
Provisions | 16 | 231 | 300 | |
Lease liabilities, undiscounted | 7,484 | |||
Impact of discounting | (924) | |||
Lease liabilities | 6,560 | £ 6,269 | ||
Non-derivative financial liabilities, undiscounted cash flows | 38,020 | 28,094 | 24,008 | |
Total, Interest payments not yet accrued | (6,258) | (5,850) | (4,495) | |
Total, Fair value adjustment | 5 | 50 | 73 | |
Total, Impact of discounting | (925) | (29) | (72) | |
Total, Non-derivative financial liabilities | 30,842 | 22,265 | 19,514 | |
Due within one year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Loans and other borrowings, undiscounted | 2,602 | 1,886 | 2,120 | |
Interest on loans and other borrowings, undiscounted | 566 | 541 | 452 | |
Trade and other payables, undiscounted | 4,932 | 5,158 | 4,939 | |
Provisions, undiscounted | 5 | 39 | 54 | |
Lease liabilities, undiscounted | 799 | |||
Non-derivative financial liabilities, undiscounted cash flows | 8,904 | 7,624 | 7,565 | |
Between one and two years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Loans and other borrowings, undiscounted | 0 | 1,309 | 1,192 | |
Interest on loans and other borrowings, undiscounted | 562 | 505 | 404 | |
Provisions, undiscounted | 3 | 33 | 34 | |
Lease liabilities, undiscounted | 783 | |||
Non-derivative financial liabilities, undiscounted cash flows | 1,348 | 1,847 | 1,630 | |
Between two and three years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Loans and other borrowings, undiscounted | 1,482 | 15 | 1,332 | |
Interest on loans and other borrowings, undiscounted | 562 | 497 | 365 | |
Provisions, undiscounted | 3 | 35 | 25 | |
Lease liabilities, undiscounted | 762 | |||
Non-derivative financial liabilities, undiscounted cash flows | 2,809 | 547 | 1,722 | |
Between three and four years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Loans and other borrowings, undiscounted | 987 | 1,463 | 18 | |
Interest on loans and other borrowings, undiscounted | 548 | 496 | 357 | |
Provisions, undiscounted | 4 | 14 | 43 | |
Lease liabilities, undiscounted | 724 | |||
Non-derivative financial liabilities, undiscounted cash flows | 2,263 | 1,973 | 418 | |
Between four and five years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Loans and other borrowings, undiscounted | 1,482 | 964 | 1,489 | |
Interest on loans and other borrowings, undiscounted | 520 | 482 | 355 | |
Provisions, undiscounted | 2 | 12 | 19 | |
Lease liabilities, undiscounted | 664 | |||
Non-derivative financial liabilities, undiscounted cash flows | 2,668 | 1,458 | 1,863 | |
After five years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Loans and other borrowings, undiscounted | 12,536 | 10,975 | 7,899 | |
Interest on loans and other borrowings, undiscounted | 3,740 | 3,543 | 2,714 | |
Provisions, undiscounted | 0 | 127 | 197 | |
Lease liabilities, undiscounted | 3,752 | |||
Non-derivative financial liabilities, undiscounted cash flows | £ 20,028 | £ 14,645 | £ 10,810 |
Financial instruments and ris_7
Financial instruments and risk management - Summary of Remaining Contractually-Agreed Cash Flows Including Interest Payable for Non-Derivative Financial Liabilities on Undiscounted Basis, Footnotes (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Other payables | £ 754 | £ 654 | £ 1,479 | £ 1,326 |
Non-Financial Liabilities | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Other payables | 754 | 1,479 | 1,326 | |
Other Taxation and Social Security and Deferred Income | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Other payables | £ 862 | £ 632 | £ 2,229 |
Financial instruments and ris_8
Financial instruments and risk management - Summary of Contractually Agreed Cash Flows in Respect of Derivative Financial Instruments (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Derivatives – Analysed by earliest payment date | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | £ 1,124 | £ 1,208 | £ 1,210 |
Derivatives – Analysed by earliest payment date | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 787 | 839 | 1,026 |
Derivatives – Analysed by earliest payment date | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 4,350 | 7,197 | 3,550 |
Derivatives – Analysed by earliest payment date | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (4,013) | (6,828) | (3,366) |
Derivatives – Analysed by earliest payment date | Due within one year | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 143 | 224 | 180 |
Derivatives – Analysed by earliest payment date | Due within one year | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 80 | 167 | 140 |
Derivatives – Analysed by earliest payment date | Due within one year | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 671 | 1,007 | 587 |
Derivatives – Analysed by earliest payment date | Due within one year | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (608) | (950) | (547) |
Derivatives – Analysed by earliest payment date | Between one and two years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 161 | 180 | 152 |
Derivatives – Analysed by earliest payment date | Between one and two years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 109 | 128 | 135 |
Derivatives – Analysed by earliest payment date | Between one and two years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 88 | 541 | 183 |
Derivatives – Analysed by earliest payment date | Between one and two years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (36) | (489) | (166) |
Derivatives – Analysed by earliest payment date | Between two and three years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 280 | 166 | 152 |
Derivatives – Analysed by earliest payment date | Between two and three years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 240 | 131 | 156 |
Derivatives – Analysed by earliest payment date | Between two and three years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 171 | 131 | 442 |
Derivatives – Analysed by earliest payment date | Between two and three years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (131) | (96) | (446) |
Derivatives – Analysed by earliest payment date | Between three and four years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 275 | 205 | 166 |
Derivatives – Analysed by earliest payment date | Between three and four years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 227 | 163 | 143 |
Derivatives – Analysed by earliest payment date | Between three and four years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 524 | 633 | 52 |
Derivatives – Analysed by earliest payment date | Between three and four years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (476) | (591) | (29) |
Derivatives – Analysed by earliest payment date | Between four and five years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 72 | 260 | 184 |
Derivatives – Analysed by earliest payment date | Between four and five years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 21 | 207 | 161 |
Derivatives – Analysed by earliest payment date | Between four and five years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 1,054 | 1,095 | 52 |
Derivatives – Analysed by earliest payment date | Between four and five years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (1,003) | (1,042) | (29) |
Derivatives – Analysed by earliest payment date | After five years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 193 | 173 | 376 |
Derivatives – Analysed by earliest payment date | After five years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 110 | 43 | 291 |
Derivatives – Analysed by earliest payment date | After five years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 1,842 | 3,790 | 2,234 |
Derivatives – Analysed by earliest payment date | After five years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (1,759) | (3,660) | (2,149) |
Derivatives – Analysis based on holding instrument to maturity | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 1,124 | 1,208 | 1,210 |
Derivatives – Analysis based on holding instrument to maturity | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 787 | 839 | 1,026 |
Derivatives – Analysis based on holding instrument to maturity | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 4,350 | 7,197 | 3,550 |
Derivatives – Analysis based on holding instrument to maturity | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (4,013) | (6,828) | (3,366) |
Derivatives – Analysis based on holding instrument to maturity | Due within one year | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 143 | 139 | 131 |
Derivatives – Analysis based on holding instrument to maturity | Due within one year | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 80 | 82 | 91 |
Derivatives – Analysis based on holding instrument to maturity | Due within one year | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 671 | 1,007 | 587 |
Derivatives – Analysis based on holding instrument to maturity | Due within one year | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (608) | (950) | (547) |
Derivatives – Analysis based on holding instrument to maturity | Between one and two years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 126 | 129 | 108 |
Derivatives – Analysis based on holding instrument to maturity | Between one and two years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 74 | 77 | 91 |
Derivatives – Analysis based on holding instrument to maturity | Between one and two years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 88 | 541 | 183 |
Derivatives – Analysis based on holding instrument to maturity | Between one and two years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (36) | (489) | (166) |
Derivatives – Analysis based on holding instrument to maturity | Between two and three years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 114 | 106 | 107 |
Derivatives – Analysis based on holding instrument to maturity | Between two and three years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 74 | 71 | 85 |
Derivatives – Analysis based on holding instrument to maturity | Between two and three years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 171 | 131 | 69 |
Derivatives – Analysis based on holding instrument to maturity | Between two and three years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (131) | (96) | (47) |
Derivatives – Analysis based on holding instrument to maturity | Between three and four years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 122 | 113 | 101 |
Derivatives – Analysis based on holding instrument to maturity | Between three and four years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 74 | 71 | 80 |
Derivatives – Analysis based on holding instrument to maturity | Between three and four years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 524 | 633 | 68 |
Derivatives – Analysis based on holding instrument to maturity | Between three and four years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (476) | (591) | (47) |
Derivatives – Analysis based on holding instrument to maturity | Between four and five years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 126 | 124 | 101 |
Derivatives – Analysis based on holding instrument to maturity | Between four and five years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 75 | 71 | 80 |
Derivatives – Analysis based on holding instrument to maturity | Between four and five years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 1,054 | 1,095 | 68 |
Derivatives – Analysis based on holding instrument to maturity | Between four and five years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | (1,003) | (1,042) | (47) |
Derivatives – Analysis based on holding instrument to maturity | After five years | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 493 | 597 | 662 |
Derivatives – Analysis based on holding instrument to maturity | After five years | Net settled | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 410 | 467 | 599 |
Derivatives – Analysis based on holding instrument to maturity | After five years | Gross settled outflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | 1,842 | 3,790 | 2,575 |
Derivatives – Analysis based on holding instrument to maturity | After five years | Gross settled inflows | |||
Disclosure of maturity analysis for derivative financial liabilities [Line Items] | |||
Derivative financial liabilities net settled | £ (1,759) | £ (3,660) | £ (2,512) |
Financial instruments and ris_9
Financial instruments and risk management - Summary of Maximum Credit Risk Exposure of Financial Assets (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of credit risk exposure [Line Items] | |||
Maximum credit risk exposure | £ 12,303 | £ 9,894 | £ 7,630 |
Derivative financial assets | |||
Disclosure of credit risk exposure [Line Items] | |||
Maximum credit risk exposure | 2,489 | 1,592 | 1,509 |
Investments | |||
Disclosure of credit risk exposure [Line Items] | |||
Maximum credit risk exposure | 5,112 | 3,268 | 3,075 |
Trade and other receivables | |||
Disclosure of credit risk exposure [Line Items] | |||
Maximum credit risk exposure | 1,432 | 1,766 | 2,518 |
Contract assets | |||
Disclosure of credit risk exposure [Line Items] | |||
Maximum credit risk exposure | 1,721 | 1,602 | 0 |
Cash and cash equivalents | |||
Disclosure of credit risk exposure [Line Items] | |||
Maximum credit risk exposure | £ 1,549 | £ 1,666 | £ 528 |
Financial instruments and ri_10
Financial instruments and risk management Financial instruments and risk management - Summary of Maximum Credit Risk Exposure of Financial Assets, Footnotes (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other receivables | £ 481 | £ 445 | £ 317 |
Non Financial Asset | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other receivables | 481 | 445 | 317 |
Prepayments, deferred contract costs and other receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other receivables | £ 1,272 | £ 1,456 | £ 1,496 |
Financial instruments and ri_11
Financial instruments and risk management - Summary of Credit Quality and Credit Concentration of Cash Equivalents, Current Asset Investments and Derivative Financial Assets (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of external credit grades [Line Items] | |||
Credit exposure | £ 8,666 | £ 5,977 | £ 4,613 |
Aa2/AA and above | |||
Disclosure of external credit grades [Line Items] | |||
Credit exposure | 4,210 | 2,522 | 2,575 |
Aa3/AA– | |||
Disclosure of external credit grades [Line Items] | |||
Credit exposure | 971 | 1,376 | 313 |
A1/A | |||
Disclosure of external credit grades [Line Items] | |||
Credit exposure | 1,363 | 1,145 | 651 |
A2/A | |||
Disclosure of external credit grades [Line Items] | |||
Credit exposure | 1,437 | 649 | 628 |
A3/A- | |||
Disclosure of external credit grades [Line Items] | |||
Credit exposure | 0 | 50 | 180 |
Baa1/BBB | |||
Disclosure of external credit grades [Line Items] | |||
Credit exposure | 100 | 75 | 59 |
Baa2/BBB and below | |||
Disclosure of external credit grades [Line Items] | |||
Credit exposure | £ 585 | £ 160 | £ 207 |
Financial instruments and ri_12
Financial instruments and risk management Financial instruments and risk management - Summary of Credit Quality and Credit Concentration of Cash Equivalents, Current Asset Investments and Derivative Financial Assets, Footnotes (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of detailed information about financial instruments [abstract] | |||
Cash collateral held | £ 1,091 | £ 638 | £ 492 |
Financial instruments and ri_13
Financial instruments and risk management - Summary of Offsetting of Financial Assets and Liabilities (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | |||
Amounts presented in the balance sheet, derivative financial assets | £ 2,489 | £ 1,592 | £ 1,509 |
Right of set off with derivative counterparties, derivative financial assets | (948) | (802) | (754) |
Cash collateral, derivative financial assets | (1,091) | (638) | (492) |
Net amount, derivative financial assets | 450 | 152 | 263 |
Amounts presented in the balance sheet, derivative financial liabilities | (1,012) | (940) | (837) |
Rights of set off with derivative counterparties, derivative financial liabilities | 948 | 802 | 754 |
Cash collateral, derivative financial liabilities | 83 | 90 | 60 |
Net amount, derivative financial liabilities | 19 | (48) | (23) |
Amounts presented in the balance sheet | 1,477 | 652 | 672 |
Right of set off with derivative counterparties | 0 | 0 | 0 |
Cash collateral | (1,008) | (548) | (432) |
Net amount | £ 469 | £ 104 | £ 240 |
Financial instruments and ri_14
Financial instruments and risk management - Summary of Derivative Financial Instruments are Held at Fair Value on Balance Sheet (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Current asset | £ 260 | £ 111 | £ 197 |
Non-current asset | 2,229 | 1,481 | 1,312 |
Current liability | 46 | 48 | 50 |
Non-current liability | 966 | 892 | 787 |
Designated in a cash flow hedge | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Current asset | 250 | 102 | 187 |
Non-current asset | 1,954 | 1,228 | 1,061 |
Current liability | 36 | 40 | 41 |
Non-current liability | 740 | 689 | 587 |
Other | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Current asset | 10 | 9 | 10 |
Non-current asset | 275 | 253 | 251 |
Current liability | 10 | 8 | 9 |
Non-current liability | £ 226 | £ 203 | £ 200 |
Financial instruments and ri_15
Financial instruments and risk management - Summary of Amounts Related to Items Designated as Hedging Instruments (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of detailed information about hedged items [line items] | |||
Fair value (gain)/loss recognised in OCI | £ (854) | £ (176) | £ 368 |
Amount recycled from cash flow hedge related reserves to P&L | 382 | 18 | (277) |
Designated in a cash flow hedge | Derivatives Designated as Hedging Instrument | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional principal | 16,103 | 13,397 | 12,549 |
Asset | 2,204 | 1,330 | 1,248 |
Liability | (776) | (729) | (628) |
Balance in cash flow hedge related reserves (gain)/loss | (571) | (99) | 59 |
Fair value (gain)/loss recognised in OCI | (854) | (176) | 368 |
Amount recycled from cash flow hedge related reserves to P&L | 382 | 18 | (277) |
Designated in a cash flow hedge | Derivatives Designated as Hedging Instrument | Sterling, Euro and US Dollar Denominated Borrowings | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional principal | 13,464 | 11,431 | 10,417 |
Asset | 2,142 | 1,311 | 1,222 |
Liability | (744) | (702) | (608) |
Balance in cash flow hedge related reserves (gain)/loss | (490) | (48) | 101 |
Fair value (gain)/loss recognised in OCI | (828) | (130) | 347 |
Amount recycled from cash flow hedge related reserves to P&L | 386 | (19) | (333) |
Designated in a cash flow hedge | Derivatives Designated as Hedging Instrument | US Dollar Step up Interest on US Denominated Borrowings | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional principal | 159 | 145 | 143 |
Asset | 7 | 3 | 0 |
Liability | 0 | (1) | (6) |
Balance in cash flow hedge related reserves (gain)/loss | (45) | (38) | (29) |
Fair value (gain)/loss recognised in OCI | (11) | (13) | 13 |
Amount recycled from cash flow hedge related reserves to P&L | 4 | 4 | 3 |
Designated in a cash flow hedge | Derivatives Designated as Hedging Instrument | Foreign Currency Purchases, Principally Denominated in Us Dollar, Euro and Asia Pacific Currencies | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional principal | 2,480 | 1,821 | 1,989 |
Asset | 55 | 16 | 26 |
Liability | (11) | (26) | (14) |
Balance in cash flow hedge related reserves (gain)/loss | (57) | (13) | (13) |
Fair value (gain)/loss recognised in OCI | (36) | (33) | 8 |
Amount recycled from cash flow hedge related reserves to P&L | (8) | 33 | 53 |
Designated in a cash flow hedge | Derivatives Designated as Hedging Instrument | Fallago Rigg Energy Contract | |||
Disclosure of detailed information about hedged items [line items] | |||
Asset | 0 | ||
Liability | (21) | ||
Balance in cash flow hedge related reserves (gain)/loss | 21 | ||
Fair value (gain)/loss recognised in OCI | 21 | ||
Amount recycled from cash flow hedge related reserves to P&L | 0 | ||
Deferred tax | Derivatives Designated as Hedging Instrument | |||
Disclosure of detailed information about hedged items [line items] | |||
Balance in cash flow hedge related reserves (gain)/loss | 95 | 15 | (22) |
Derivatives not in a designated hedge relationship | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional principal | 2,087 | 2,087 | |
Asset | 285 | 262 | 261 |
Liability | (236) | (211) | (209) |
Cash Flow Hedges Net Of Deferred Tax And Derivatives Not In A Designated Hedge Relationship | |||
Disclosure of detailed information about hedged items [line items] | |||
Asset | 2,489 | 1,592 | 1,509 |
Liability | (1,012) | (940) | (837) |
Balance in cash flow hedge related reserves (gain)/loss | £ (476) | £ (84) | £ 37 |
Other reserves - Summary of Oth
Other reserves - Summary of Other Reserves (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 01, 2018 | ||
Disclosure of reserves within equity [Line Items] | |||||
Beginning balance | £ 10,167 | £ 9,911 | £ 8,335 | ||
Exchange differences on translation of foreign operations | 40 | 64 | (188) | ||
Movements in relation to cash flow hedges recognised in income and expense | (382) | (18) | 277 | ||
Fair value movements on available-for-sale assets | 11 | ||||
Fair value movements on assets at fair value through other comprehensive income | (5) | 3 | |||
Tax recognised in other comprehensive income | (84) | (41) | 1 | ||
Ending balance | 14,763 | 10,167 | 9,911 | ||
Other reserves | |||||
Disclosure of reserves within equity [Line Items] | |||||
Beginning balance | [1] | 718 | 534 | 884 | |
Adjusted equity | £ 534 | ||||
Exchange differences on translation of foreign operations | 40 | 64 | (188) | ||
Net fair value gain (loss) on cash flow hedges | 854 | 176 | (368) | ||
Movements in relation to cash flow hedges recognised in income and expense | [1] | (382) | (18) | 277 | |
Fair value movements on available-for-sale assets | 11 | ||||
Fair value movements on assets at fair value through other comprehensive income | (5) | 3 | |||
Tax recognised in other comprehensive income | (84) | (41) | 1 | ||
Transfer to realised profit | [1] | (22) | (83) | ||
Transfer to cost of hedging reserve | 0 | ||||
Ending balance | [1] | 1,119 | 718 | 534 | |
Capital redemption reserve | |||||
Disclosure of reserves within equity [Line Items] | |||||
Beginning balance | 27 | 27 | 27 | ||
Adjusted equity | 27 | ||||
Ending balance | 27 | 27 | 27 | ||
Cash flow reserve | |||||
Disclosure of reserves within equity [Line Items] | |||||
Beginning balance | 144 | (37) | 127 | ||
Adjusted equity | 44 | ||||
Net fair value gain (loss) on cash flow hedges | 823 | 168 | (368) | ||
Movements in relation to cash flow hedges recognised in income and expense | (411) | (31) | 277 | ||
Tax recognised in other comprehensive income | (80) | (37) | 10 | ||
Transfer to realised profit | (83) | ||||
Transfer to cost of hedging reserve | 81 | ||||
Ending balance | 476 | 144 | (37) | ||
Fair value reserve | |||||
Disclosure of reserves within equity [Line Items] | |||||
Beginning balance | 27 | 24 | 13 | ||
Adjusted equity | 24 | ||||
Fair value movements on available-for-sale assets | 11 | ||||
Fair value movements on assets at fair value through other comprehensive income | (5) | 3 | |||
Transfer to realised profit | (22) | ||||
Ending balance | 0 | 27 | 24 | ||
Cost of hedging reserve | |||||
Disclosure of reserves within equity [Line Items] | |||||
Beginning balance | (60) | ||||
Adjusted equity | (81) | ||||
Net fair value gain (loss) on cash flow hedges | 31 | 8 | |||
Movements in relation to cash flow hedges recognised in income and expense | 29 | 13 | |||
Transfer to cost of hedging reserve | (81) | ||||
Ending balance | 0 | (60) | |||
Translation reserve | |||||
Disclosure of reserves within equity [Line Items] | |||||
Beginning balance | 580 | 520 | 717 | ||
Adjusted equity | £ 520 | ||||
Exchange differences on translation of foreign operations | 40 | 64 | (188) | ||
Tax recognised in other comprehensive income | (4) | (4) | (9) | ||
Ending balance | £ 616 | £ 580 | £ 520 | ||
[1] | For further analysis of other reserves, see note 29. |
Other reserves - Summary of O_2
Other reserves - Summary of Other Reserves, Footnotes (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of reserves within equity [Line Items] | |||
– recognised in income and expense | £ (382) | £ (18) | £ 277 |
Non-controlling interests | |||
Disclosure of reserves within equity [Line Items] | |||
Exchange differences in relation to retained earnings attributed to non-controlling interests | 1 | (2) | 1 |
Operating costs | |||
Disclosure of reserves within equity [Line Items] | |||
– recognised in income and expense | (428) | (63) | 243 |
Finance expense | |||
Disclosure of reserves within equity [Line Items] | |||
– recognised in income and expense | £ 46 | £ 45 | £ 34 |
Financial commitments and con_3
Financial commitments and contingent liabilities - Disclosure of Financial Commitments (Detail) - GBP (£) £ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Financial Commitments [Abstract] | ||
Operating lease commitments | £ 0 | £ 6,619 |
TV programme rights commitments | 2,434 | 2,113 |
Capital commitments | 1,234 | 1,432 |
Other commitments | 228 | 253 |
Total | £ 3,896 | £ 10,417 |
Financial commitments and con_4
Financial commitments and contingent liabilities - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2020GBP (£) | Mar. 31, 2020GBP (£)claims | Mar. 27, 2019GBP (£) | Feb. 11, 2019defendant | |
Milan Public Prosecutor prosecutions | ||||
Disclosure of Financial Commitments [Line Items] | ||||
Number of named defendants | defendant | 23 | |||
ICMS | Brazil | ||||
Disclosure of Financial Commitments [Line Items] | ||||
Number of cases filed | claims | 33 | |||
Value of claim | £ 147,000,000 | |||
Assessment cancelled | £ 25,000,000 | |||
Current value of cases for retained business | £ 14,000,000 | |||
ICMS | Minas Gerais | ||||
Disclosure of Financial Commitments [Line Items] | ||||
Number outlier cases filed | claims | 1 | |||
FUST/FUNTTEL | Brazil | ||||
Disclosure of Financial Commitments [Line Items] | ||||
Overall liability | £ 18,000,000 | |||
Number of pending cases | claims | 62 | |||
Current value of cases for retained business | £ 6,000,000 | |||
8.625 Percentage Bond Due 2020 | ||||
Disclosure of Financial Commitments [Line Items] | ||||
Loans and borrowings, face amount | £ 300,000,000 | |||
Loans and borrowings, interest rate | 8.625% | |||
5.75% Bond Due December 2028 | ||||
Disclosure of Financial Commitments [Line Items] | ||||
Loans and borrowings, face amount | £ 600,000,000 | £ 600,000,000 | ||
Loans and borrowings, interest rate | 5.75% | 5.75% |
Uncategorized Items - bt-202003
Label | Element | Value | |
Tax Effect On Adjustment To Retained Earnings Due To IFRS Adoption | bt_TaxEffectOnAdjustmentToRetainedEarningsDueToIFRSAdoption | £ 248,000,000 | [1] |
Tax Effect On Adjustment To Retained Earnings Due To IFRS Adoption | bt_TaxEffectOnAdjustmentToRetainedEarningsDueToIFRSAdoption | (16,000,000) | [1] |
Adjustment To Retained Earnings On Adoption Of New IFRS Standards | bt_AdjustmentToRetainedEarningsOnAdoptionOfNewIFRSStandards | 1,308,000,000 | [1] |
Adjustment To Retained Earnings On Adoption Of New IFRS Standards | bt_AdjustmentToRetainedEarningsOnAdoptionOfNewIFRSStandards | (87,000,000) | [1] |
Adjusted Equity | bt_AdjustedEquity | 10,971,000,000 | |
Adjusted Equity | bt_AdjustedEquity | 10,096,000,000 | |
Jurisdictional Offset [Member] | |||
Deferred tax liability (asset) | ifrs-full_DeferredTaxLiabilityAsset | 0 | |
Sharebased Payments [Member] | |||
Deferred tax liability (asset) | ifrs-full_DeferredTaxLiabilityAsset | (6,000,000) | |
Other [Member] | |||
Deferred tax liability (asset) | ifrs-full_DeferredTaxLiabilityAsset | (54,000,000) | |
Tax Losses [Member] | |||
Deferred tax liability (asset) | ifrs-full_DeferredTaxLiabilityAsset | (70,000,000) | |
Fixed Asset Temporary Differences [Member] | |||
Deferred tax liability (asset) | ifrs-full_DeferredTaxLiabilityAsset | 1,398,000,000 | |
Retirement Benefit Obligations [Member] | |||
Deferred tax liability (asset) | ifrs-full_DeferredTaxLiabilityAsset | (1,210,000,000) | |
Merger reserve [member] | |||
Adjusted Equity | bt_AdjustedEquity | 6,647,000,000 | [2] |
Adjusted Equity | bt_AdjustedEquity | 4,147,000,000 | [2] |
Retained earnings [member] | |||
Tax Effect On Adjustment To Retained Earnings Due To IFRS Adoption | bt_TaxEffectOnAdjustmentToRetainedEarningsDueToIFRSAdoption | 248,000,000 | [1] |
Tax Effect On Adjustment To Retained Earnings Due To IFRS Adoption | bt_TaxEffectOnAdjustmentToRetainedEarningsDueToIFRSAdoption | (16,000,000) | [1] |
Adjustment To Retained Earnings On Adoption Of New IFRS Standards | bt_AdjustmentToRetainedEarningsOnAdoptionOfNewIFRSStandards | 1,308,000,000 | [1] |
Adjustment To Retained Earnings On Adoption Of New IFRS Standards | bt_AdjustmentToRetainedEarningsOnAdoptionOfNewIFRSStandards | (87,000,000) | [1] |
Adjusted Equity | bt_AdjustedEquity | 2,426,000,000 | |
Adjusted Equity | bt_AdjustedEquity | 3,848,000,000 | |
Treasury shares [member] | |||
Adjusted Equity | bt_AdjustedEquity | (186,000,000) | [3] |
Adjusted Equity | bt_AdjustedEquity | (167,000,000) | [3] |
Issued capital [member] | |||
Adjusted Equity | bt_AdjustedEquity | 499,000,000 | [4] |
Adjusted Equity | bt_AdjustedEquity | 499,000,000 | [4] |
Share premium [member] | |||
Adjusted Equity | bt_AdjustedEquity | 1,051,000,000 | [5] |
Adjusted Equity | bt_AdjustedEquity | 1,051,000,000 | [5] |
Other reserves [member] | |||
Adjusted Equity | bt_AdjustedEquity | 534,000,000 | [6] |
Adjusted Equity | bt_AdjustedEquity | 718,000,000 | [6] |
Land and buildings [member] | |||
Right-of-use assets | ifrs-full_RightofuseAssets | 4,628,000,000 | |
Motor vehicles [member] | |||
Right-of-use assets | ifrs-full_RightofuseAssets | 338,000,000 | |
Network infrastructure [member] | |||
Right-of-use assets | ifrs-full_RightofuseAssets | £ 189,000,000 | |
[1] | Opening retained earnings adjusted following adoption of IFRS 15 & 9 on 1 April 2018 and IFRS 16 on 1 April 2019. See note 1 to the consolidated financial statements for further detail on the impact of adopting IFRS 16. | ||
[2] | The merger reserve balance at 1 April 2017 includes £998m related to the group reorganisation that occurred in November 2001 and represented the difference between the nominal value of shares in the new parent company, BT Group plc, and the aggregate of the share capital, share premium account and capital redemption reserve of the prior parent company, British Telecommunications plc. In addition, on 29 January 2016, the company issued 1,594,900,429 ordinary shares of 5p at 470.7p per share. These shares were used as part consideration for the acquisition of EE. As a result of this transaction the merger reserve was credited with £7,424m net of £3m issue costs. Following settlement of intercompany loans by qualifying consideration of £1,575m and (2018/19: £2,500m), equivalent balances were transferred from merger reserve to realised profit. | ||
[3] | For further analysis of own shares, see note 21. | ||
[4] | The allotted, called up, and fully paid ordinary share capital of BT Group plc at 31 March 2020 was £499m comprising 9,968,127,681 ordinary shares of 5p each (2019: £499m comprising 9,968,127,681 ordinary shares of 5p each). | ||
[5] | The share premium account, comprising the premium on allotment of shares, is not available for distribution. | ||
[6] | For further analysis of other reserves, see note 29. |