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Impaired (net of valuation allowance) 91 73
Not impaired and past due in the following periods
Within 30 days 808 1,323
31 to 60 days 151 489
61 to 90 days 76 596
Over 90 days
The movement in the valuation allowance for trade receivables is set out below.
(c) Liquidity risk
464 1,170
31,016 29,489
$ million
Trade and other receivables at December 31 2009 2008
At January 1 391 406
Exchange adjustments 12 (32)
Charge for the year 157 191
Utilization (130) (174)
At December 31 430 391
Liquidity risk is the risk that suitable sources of funding for the group’s business activities may not be available. The group’s liquidity is managed centrally with
operating units forecasting their cash and currency requirements to the central treasury function. Unless restricted by local regulations, subsidiaries pool their
cash surpluses to treasury, which will then arrange to fund other subsidiaries’ requirements, or invest any net surplus in the market or arrange for necessary
external borrowings, while managing the group’s overall net currency positions.
In managing its liquidity risk, the group has access to a wide range of funding at competitive rates through capital markets and banks. The group’s treasury
function centrally coordinates relationships with banks, borrowing requirements, foreign exchange requirements and cash management. The group believes it
has access to sufficient funding through the commercial paper markets and by using undrawn committed borrowing facilities to meet foreseeable borrowing
requirements. At December 31, 2009, the group had substantial amounts of undrawn borrowing facilities available, including committed facilities of $4,950
million, of which $4,550 million are in place through to the fourth quarter of 2011, unchanged from the position as at December 31, 2008. These facilities are
with a number of international banks and borrowings under them would be at preagreed rates.
The group has in place a European Debt Issuance Program (DIP) under which the group may raise $20 billion of debt for maturities of one month or longer. At
December 31, 2009, the amount drawn down against the DIP was $11,403 million (2008: $10,334 million). In addition, the group has in place an unlimited
US Shelf Registration under which it may raise debt with maturities of one month or longer.
The group has long-term debt ratings of Aa1 (stable outlook) and AA (stable outlook), assigned respectively by Moody’s and Standard and Poor’s, unchanged
from 2008.
Despite recent increased uncertainty in the financial markets, including a lack of liquidity for some borrowers, we have been able to issue $11 billion of longterm
debt during 2009 and issue short-term commercial paper at competitive rates, as and when required. As an additional precautionary measure, we have
increased and maintained the cash and cash equivalents held by the group to $8.3 billion at the end of 2009 and $8.2 billion at the end of 2008, compared with
$3.6 billion at the end of 2007.
The amounts shown for finance debt in the table below include expected interest payments on borrowings and future minimum lease payments with respect to
finance leases.
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