Notes to the Consolidated Financial Statements
Notes 1-5
- 1. Basis of preparation
- 2. Significant accounting policies
- 3. Segment analysis
- 4. Operating profit/(loss)
- 5. Investment income and financing costs
5. Investment income and financing costs
2008 £m |
2007 £m |
2006 £m |
|
---|---|---|---|
Investment income: | |||
Available-for-sale investments: | |||
Dividends received | 72 | 57 | 41 |
Other(1) | – | 86 | – |
Loans and receivables at amortised cost(2) | 451 | 452 | 153 |
Fair value through the income statement (held for trading): | |||
Derivatives – foreign exchange contracts | 125 | 160 | 159 |
Other(3) | 66 | – | – |
Equity put rights and similar arrangements(5) | – | 34 | – |
714 | 789 | 353 | |
Financing costs: | |||
Items in hedge relationships: | |||
Other loans | 612 | 548 | 510 |
Interest rate swaps | 61 | (9) | (118) |
Dividends on redeemable preference shares | 42 | 45 | 48 |
Fair value hedging instrument | (635) | 42 | 213 |
Fair value of hedged item | 601 | (47) | (186) |
Other financial liabilities held at amortised cost: | |||
Bank loans and overdrafts | 347 | 126 | 126 |
Other loans(4) | 390 | 276 | 78 |
Potential interest charge on settlement of tax issues | 399 | 406 | 329 |
Equity put rights and similar arrangements(5) | 143 | 32 | 161 |
Finance leases | 7 | 4 | 7 |
Fair value through the income statement (held for trading): | |||
Derivatives – forward starting swaps and futures | 47 | 71 | (48) |
Other(6) | – | 118 | – |
2,014 | 1,612 | 1,120 | |
Net financing costs | 1,300 | 823 | 767 |
Notes: | |
---|---|
(1) | Amount for 2007 includes a gain resulting from refinancing of SoftBank related investments received as part of the consideration for the disposal of Vodafone Japan on 27 April 2006. |
(2) | Amount for 2007 includes £77 million of foreign exchange gains arising from hedges of a net investment in a foreign operation. |
(3) | Includes foreign exchange gain on certain intercompany balances and investments held following the disposal of Vodafone Japan to SoftBank. |
(4) | Amount for 2008 includes £72 million of foreign exchange losses arising from hedges of a net investment in a foreign operation. |
(5) | Includes amounts in relation to the Group’s arrangements with its minority partners in India, its fixed line operations in Germany and, in respect of prior years, Telecom Egypt. Further information is provided in “Option agreements and similar arrangements” in Financial Position and Resources. |
(6) | Amount for 2007 includes foreign exchange losses on certain intercompany balances and investments held following the disposal of Vodafone Japan to SoftBank. |