Glossary
A
| Term used in UK annual report | US equivalent or definition |
| Acquisition accounting | Purchase accounting |
| Associates | Entities accounted for under the equity method |
| American Depositary Receipt (ADR) | Receipt evidencing ownership of an ADS |
| American Depositary Share (ADS) | Registered negotiable security, listed on the New York Stock Exchange, representing four Diageo plc ordinary shares of 28101⁄108 pence each |
C
| Term used in UK annual report | US equivalent or definition |
| Called up share capital | Common stock |
| Capital allowances | Tax depreciation |
| Capital redemption reserve | Other additional capital |
| Company | Diageo plc |
| Creditors | Accounts payable and accrued liabilities |
E
| Term used in UK annual report | US equivalent or definition |
| Employee share schemes | Employee stock benefit plans |
| Employment or staff costs | Payroll costs |
| Equivalent units | An equivalent unit represents one nine litre case of spirits, which is approximately 272 servings. A serving comprises 33ml of spirits, 165ml of wine, or 330ml of ready to drink or beer. To convert volume of products other than spirits to equivalent units: beer in hectolitres divide by 0.9, wine in nine litre cases divide by five, ready to drink in nine litre cases divide by 10, and certain pre-mixed products classified as ready to drink in nine litre cases divide by five. |
| Euro, €, ¢ | Euro currency |
| Exceptional items | Items that, in management’s judgement, need to be disclosed separately by virtue of their size or incidence |
| Excise duty | Tax charged by a sovereign territory on the production, manufacture, sale or distribution of selected goods (including imported goods) within that territory. It is generally based on the quantity or alcohol content of goods, rather than their value, and is typically applied to alcohol products and fuels. |
F
| Term used in UK annual report | US equivalent or definition |
| Finance lease | Capital lease |
| Financial year | Fiscal year |
| Fixed asset investments | Non-current investments |
| Free cash flow | Net cash flow from operating activities, and net purchase and disposal of investments and property, plant and equipment |
| Freehold | Ownership with absolute rights in perpetuity |
G
| Term used in UK annual report | US equivalent or definition |
| GAAP | Generally accepted accounting principles |
| Group and Diageo | Diageo plc and its consolidated subsidiaries |
I
| Term used in UK annual report | US equivalent or definition |
| IFRS | International Financial Reporting Standards as endorsed and adopted for use in the European Union and International Financial Reporting Standards as issued by the International Accounting Standards Board |
| Impact Databank | An international data resource for the beverage alcohol industry that is independent from industry participants |
M
| Term used in UK annual report | US equivalent or definition |
| Merger accounting | Pooling of interests |
N
| Term used in UK annual report | US equivalent or definition |
| Net asset value | Book value |
| Net sales | Sales after deducting excise duties |
| Noon buying rate | Buying rate at noon in New York City for cable transfers in pounds sterling as certified for customs purposes by the Federal Reserve Bank of New York |
O
| Term used in UK annual report | US equivalent or definition |
| Operating profit | Net operating income |
| Organic movement | At level foreign exchange rates and after adjusting for exceptional items, acquisitions and disposals for continuing operations |
| Own shares | Treasury stock |
P
| Term used in UK annual report | US equivalent or definition |
| Pound sterling, sterling, £, pence, p | UK currency |
| Profit | Earnings |
| Profit and loss account | Statement of income/accumulated earnings |
| Profit for the year | Net income |
| Provisions | Accruals for losses/contingencies |
R
| Term used in UK annual report | US equivalent or definition |
| Recognised income and expense | Comprehensive income |
| Redundancy charges | Early release scheme expenses |
| Reserves | Accumulated earnings, other comprehensive income and additional paid in capital |
| RPI | UK retail prices index |
S
| Term used in UK annual report | US equivalent or definition |
| Scrip dividend | Stock dividend |
| SEC | US Securities and Exchange Commission |
| Share premium | Additional paid in capital or paid in surplus |
| Shareholders’ funds | Shareholders’ equity |
| Shares | Common stock |
| Shares and ordinary shares | Diageo plc’s ordinary shares |
| Shares in issue | Shares issued and outstanding |
T
| Term used in UK annual report | US equivalent or definition |
| Trade and other payables | Accounts payable and accrued liabilities |
| Trade and other receivables | Accounts receivable |