registration document France Telecom 2009 - Orange.com

20 CONSOLIDATED
financial information concerning the issuer’s assets and liabilities, financial position and profits and losses
STATEMENTS
22.2 Net financial debt
Net fi nancial debt as defi ned and used by France Telecom
corresponds to fi nancial liabilities excluding operating payables
(translated at the year-end closing rate) less (i) all derivative
instruments carried in assets, (ii) cash collateral paid on
derivative instruments, (iii) cash, cash equivalents and fi nancial
assets at fair value, and (iv) certain deposits paid in connection
with fi nancing. Derivatives qualifying as cash fl ow hedge and
net investment hedge are set up to hedge items that are not
included in net fi nancial debt (future cash fl ows, net investments
in foreign currencies). However, the market value of these
derivatives is included in the calculation. The “ effective portion
of cash fl ow hedges” and the “ unrealized gain or loss on net
investment hedges” are added to net fi nancial debt to offset this
temporary difference.
Items in statement of financial position included in the calculation of net financial debt
December 31, 2009 December 31, 2008 December 31, 2007
(in millions of euros)
Balance in
statement
of financial
position
o/w included
in calculation
of net financial
debt
Balance in
statement
of financial
position
o/w included
in calculation
of net financial
debt
Balance in
statement
of financial
position
o/w included
in calculation
of net financial
debt
Retained earnings, o/w: (304) (4) 1,305 582 3,697 215
■ effective portion of cash fl ow
hedges 23 23 608 608 215 215
■ unrealized gain (loss) on net
investment hedges (27) (27) (26) (26) - -
Non-current fi nancial liabilities at
amortized cost, excluding trade payables 30,869 30,688 31,782 31,649 32,532 32,532
Non-current fi nancial liabilities at fair
value through profi t or loss 614 614 495 495 154 154
Non-current hedging derivatives liabilities 693 693 650 650 955 955
Current fi nancial liabilities at amortized
cost, excluding trade payables 6,333 6,161 (1) 8,236 8,236 8,694 8,694
Current fi nancial liabilities at fair value
through profi t or loss 1,155 1,155 913 913 730 730
Current hedging derivatives liabilities 1 1 2 2 353 353
Liabilities included in the calculation
of net financial debt (a) 39,308 42,527 43,633
Assets available for sale 221 87 203 90 518 105
Non-current loans and receivables 2,555 766 (2) 1,554 250 1,960 877
Non-current fi nancial assets at fair value
through profi t or loss 199 199 106 106 54 54
Non-current hedging derivatives assets 180 180 624 624 42 42
Current loans and other receivables 1,088 76 63 2 81 4
Current fi nancial assets at fair value
through profi t or loss, excluding cash
equivalents 92 92 721 721 534 534
Current hedging derivatives assets 18 18 75 75 12 12
Cash equivalents 2,911 2,911 3,766 3,766 2,722 2,722
Cash 1,038 1,038 1,034 1,034 1,303 1,303
Assets included in the calculation of
net financial debt (b) 5,367 6,668 5,653
External net financial debt (a) - (b) 33,941 35,859 37,980
(1) The 172 million euro liability representing cash generated since July 1, 2009 by assets held for sale and invested at France Telecom S.A. is not included in the external net fi nancial
debt of continuing operations (see Note 11, Discontinued Operations ).
(2) The 1,407 million euro receivable allocated to assets held for sale is not included in external net fi nancial debt (see Note 11, Discontinued Operations ). It will be reimbursed for
625 million of pounds sterling after the completion of the transaction.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM