G4S Annual Report and Accounts 2011

Overview Strategic review Performance
Notes to the consolidated financial statements continued
28 Cash, cash equivalents and bank overdrafts
A reconciliation of cash and cash equivalents reported within the consolidated cash flow statement to amounts reported within the consolidated statement
of financial position is presented below:
Cash and cash equivalents 433 351
Bank overdrafts (53) (45)
Cash, cash equivalents and bank overdrafts included within disposal groups classified as held for sale (10) –
Total cash, cash equivalents and bank overdrafts 370 306
2011
£m
2010
£m
Cash and cash equivalents comprise principally short-term money market deposits, current account balances and group-owned cash held in ATM machines
and at 31 December 2011 bore interest at a weighted average rate of 0.4% (2010: 0.9%). The credit risk on cash and cash equivalents is limited because the
counterparties are banks with high credit ratings assigned by international credit-rating agencies.
The group operates a multi-currency notional pooling cash management system which included over 140 group companies at 31 December 2011. It is
anticipated that the number of participants in the group will continue to grow. The group met the conditions of IAS 32 Financial Instruments: Presentation
allowing balances within this cash pool to be offset for reporting purposes. At 31 December 2011 £303m (2010 £230m) of the cash balances and the
equivalent amount of the overdraft balances were offset.
Cash and cash equivalents of £17m (2010: £26m) are held by the group’s wholly-owned captive insurance subsidiaries. Their use is restricted to the
settlement of claims against the group’s captive insurance subsidiaries.
29 Bank overdrafts, bank loans and loan notes
Bank overdrafts 53 45
Bank loans 932 687
Loan notes* 1,180 1,153
Total bank overdrafts, bank loans and loan notes 2,165 1,885
The borrowings are repayable as follows:
On demand or within one year 100 158
In the second year 53 551
In the third to fifth years inclusive 1,065 222
After five years 947 954
Total bank overdrafts, bank loans and loan notes 2,165 1,885
Less: Amount due for settlement within 12 months (shown under current liabilities):
– Bank overdrafts (53) (45)
– Bank loans (47) (113)
(100) (158)
Amount due for settlement after 12 months 2,065 1,727
*Loan notes includes £830m of private loan notes and £350m of public loan notes.
2011
£m
2010
£m
104
G4S plc
Annual Report and Accounts 2011