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| Terms used in the Annual Report |
US equivalent or brief description |
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Accelerated capital allowances
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Tax allowance in excess of depreciation arising from the purchase
of fixed assets that delay the charging and payment of tax. The US equivalent of tax depreciation. |
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| Advance Corporation Tax (ACT) |
An advance payment of UK tax that was made when dividends are paid.
No direct US equivalent. |
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| American Depositary Receipt (ADR) |
Receipt evidencing title to an ADS. Each GlaxoSmithKline ADR represents
two ordinary shares. |
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| American Depositary Shares (ADSs) |
Ordinary Shares registered on the New York Stock Exchange. |
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| Called-up share capital |
Ordinary Shares, issued and fully paid. |
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| CER growth |
Growth at constant exchange rates. |
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| Combined Code |
Guidelines adopted by the London Stock Exchange to address the principle
aspects of Corporate Governance. |
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| The company |
GlaxoSmithKline plc. |
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| Creditors |
Accounts payable. |
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| Currency swap |
An exchange of two currencies, coupled with a subsequent re-exchange
of those currencies, at agreed exchange rates and dates. |
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| Debtors |
Accounts receivable. |
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| Defined benefit plan |
Pension plan with specific employee benefits, often called ‘final
salary scheme’. |
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| Defined contribution plan |
Pension plan with specific contributions and a level of pension dependent
upon the growth of the pension fund. |
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| Derivative financial instrument |
A financial instrument that derives its value from the price or rate
of some underlying item. |
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| Diluted earnings per Ordinary Share |
Diluted income per Ordinary Share. |
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| Dividend cover |
Profit attributable to shareholders/net income divided by dividends
payable to shareholders. |
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| Earnings per Ordinary Share |
Basic income per Ordinary Share. |
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| Employee Share Ownership Trusts |
Trusts established by the Group to satisfy share based employee
incentive plans. |
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| Equity shareholders’ funds |
The aggregation of shares and reserves owned by shareholders. The
US equivalent is shareholders’ equity. |
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| Finance lease |
Capital lease. |
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| Free cash flow |
Cash resources available for payment of dividends to shareholders
and for acquisitions. |
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| Freehold |
Ownership with absolute rights in perpetuity. |
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| Gearing ratio |
Net debt as a percentage of shareholders’ funds and minority
interests. |
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| The Group |
GlaxoSmithKline plc and its subsidiary undertakings. |
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| Hedging |
The reduction of risk, normally in relation to foreign currency or
interest rate movements, by making off-setting commitments. |
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| Intangible fixed assets |
Assets without physical substance, such as brands, licences, patents,
know-how and marketing rights purchased from outside parties. |
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| Interest cover |
The number of times profit before interest exceeds net interest payable. |
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| Interest payable |
Interest expense. |
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| Interest receivable |
Interest income. |
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| Non-equity minority interest |
Preference shares issued by a subsidiary to outside parties. |
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| Preference shares |
Shares issued at varying dividend rates that are treated as outside
interests. |
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| Profit |
Income. |
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| Profit and loss account reserve |
Retained earnings. |
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| Profit attributable to shareholders |
Net income. |
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| Share capital |
Ordinary Shares, capital stock or common stock issued and fully paid. |
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| Share option |
Stock option. |
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| Share premium account |
Additional paid-up capital or paid-in surplus (not distributable). |
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| Shares in issue |
Shares outstanding. |
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| Statement of total recognised gains and losses |
Statement of comprehensive income. |
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| Stocks |
Inventories. |
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| Subsidiary undertaking |
A company in which GlaxoSmithKline holds a majority shareholding
and/or exercises control. |
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| Tangible fixed assets |
Property, plant and equipment. |
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| Turnover |
Revenue. |
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