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Notes 1-5

5. Investment income and financing costs


 		 2009
£m		 2008
£m		 2007
£m
Investment income:      
Available-for-sale investments:      
Dividends received 110 72 57
Other(1) − − 86
Loans and receivables at amortised cost(2) 339 451 452
Fair value through the income statement (held for trading):      
Derivatives – foreign exchange contracts 71 125 160
Other(3) 275 66 −
Equity put rights and similar arrangements(4) − − 34
  795 714 789
       
Financing costs:      
Items in hedge relationships:      
Other loans 782 612 548
Interest rate swaps (180) 61 (9)
Dividends on redeemable preference shares 53 42 45
Fair value hedging instrument (1,458) (635) 42
Fair value of hedged item 1,475 601 (47)
Other financial liabilities held at amortised cost:
Bank loans and overdrafts		 452 347 126
Other loans(5) 440 390 276
Potential interest on settlement of tax issues(6) (81) 399 406
Equity put rights and similar arrangements(4) 627 143 32
Finance leases 1 7 4
Fair value through the income statement (held for trading):
Derivatives – forward starting swaps and futures		 308 47 71
Other(7) − − 118
  2,419 2,014 1,612
Net financing costs 1,624 1,300 823

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 gains on certain intercompany balances and investments held following the disposal of Vodafone Japan to SoftBank.
(4)
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”.
(5)
Amount for 2009 includes £94 million (2008: £72 million) of foreign exchange losses arising from hedges of a net investment in a foreign operation.
(6)Amount for 2009 includes a reduction of the provision for potential interest on tax issues.
(7)
Amount for 2007 includes foreign exchange losses on certain intercompany balances and investments held following the disposal of Vodafone Japan to SoftBank.
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