Notes to the Group financial statements

2009


US$m

2008
(Restated)
(Note 2)
US$m

(a) Net financing costs

Interest income:

Bank deposits and money market funds

16

19

Interest differentials on derivatives

12

1

Expected return on pension plan assets

69

76

Interest income

97

96

Financing fair value gains:

Gains on interest rate swaps – fair value hedges

53

34

Ineffective portion of net investment hedges

–

7

Foreign exchange transaction gains

11

–

Movement in fair value of Serasa put option

21

69

Financing fair value gains

85

110

Finance income

182

206

Interest expense:

Bank loans and overdrafts

41

71

Eurobonds and notes

61

90

Commitment and facility utilisation fees

1

1

Unwind of discounts on provisions

6

4

Interest differentials on derivatives

30

–

Finance lease interest expense

2

2

Interest expense on pension plan liabilities

52

53

Interest expense

193

221

Financing fair value losses:

Fair value losses on borrowings attributable to interest rate risk

51

35

Fair value losses on non-hedging derivatives

15

98

Foreign exchange transaction losses

–

6

Financing fair value losses

66

139

Finance expense

259

360

Net financing costs

77

154

(b) Net interest expense included in Benchmark PBT

Net financing costs

77

154

Financing fair value remeasurements

19

(29)

Net interest expense included in Benchmark PBT

96

125

(c) Financing fair value remeasurements included in net financing costs

Financing fair value gains

85

110

Financing fair value losses

(66)

(139)

Credit/(charge) in respect of financing fair value remeasurements

19

(29)