Consolidated statement of changes in equity for the year ended 31 March

Share
capital
£m
Share
premium
account
£m
Other
reserve
£m
Cumulative
exchange
reserve
£m
Merger
reserve
£m
Retained
earnings
£m
Total
£m
At 1 April 2015499.82.9(8.7)329.71,610.72,434.4
Profit after tax397.5397.5
Other comprehensive income
Remeasurement gains on defined benefit pension schemes (see note 18)160.1160.1
Tax on items taken directly to equity (see note 6)(26.5)(26.5)
Foreign exchange adjustments3.03.0
Total comprehensive income3.0531.1534.1
Dividends (see note 8)(258.7)(258.7)
Transfer of other reserve
Equity-settled share-based payments (see note 2)2.32.3
Exercise of share options – purchase of shares(6.6)(6.6)
At 31 March 2016499.82.9(5.7)329.71,878.82,705.5
Share
capital
£m
Share
premium
account
£m
Other
reserve
£m
Cumulative
exchange
reserve
£m
Merger
reserve
£m
Retained
earnings
£m
Total
£m
At 1 April 2014499.82.9158.8(5.6)329.71,230.32,215.9
Profit after tax271.2271.2
Other comprehensive (expense)/income
Remeasurement gains on defined benefit pension schemes (see note 18)250.5250.5
Tax on items taken directly to equity (see note 6)(50.1)(50.1)
Foreign exchange adjustments(3.1)(3.1)
Total comprehensive (expense)/income(3.1)471.6468.5
Dividends (see note 8)(249.4)(249.4)
Transfer of other reserve(158.8)158.8
Equity-settled share-based payments (see note 2)2.92.9
Exercise of share options – purchase of shares(3.5)(3.5)
At 31 March 2015499.82.9(8.7)329.71,610.72,434.4

On the group's transition to IFRS in the year ended 31 March 2006, the other reserve arose from the uplift to fair value of the infrastructure assets. This reserve is a component of retained earnings and, as such, has been transferred and presented within retained earnings during the year ended 31 March 2015.

The merger reserve arose in the year ended 31 March 2009 on consolidation and represents the capital adjustment to reserves required to effect the reverse acquisition of United Utilities PLC by United Utilities Group PLC.