GSK Annual Report 2002

32 Financial instruments and related disclosures continued
Notes to the financial statements GlaxoSmithKline 111
Classification and fair values of financial assets and liabilities
The following table sets out the classification of financial assets and liabilities and provides a reconciliation to Group net debt in Note 25.
Short-term debtors and creditors have been excluded from financial assets and liabilities. Provisions have been included where there is a
contractual obligation to settle in cash.
2002 2001
Carrying Fair Carrying Fair
amount value amount value
£m £m £m £m
Net debt
Liquid investments 1,256 1,264 1,415 1,418
Cash at bank 1,052 1,052 716 716
Current asset financial instruments 2,308 2,316 2,131 2,134
Sterling notes and bonds (1,472) (1,559) (1,471) (1,534)
(1,472) (1,559) (1,471) (1,534)
US dollar notes, bonds and private financing (978) (1,018) (729) (752)
Notes and bonds swapped into US dollars (498) (507) (61) (53)
Currency swaps – 21 – (8)
Interest rate swaps – 7 – –
(1,476) (1,497) (790) (813)
Notes and bonds swapped into Yen (106) (114) (340) (346)
Currency swaps – 6 – 18
(106) (108) (340) (328)
Other medium-term borrowings (38) (38) (49) (49)
Other short-term loans and overdrafts (1,551) (1,551) (1,582) (1,582)
Total borrowings (4,643) (4,753) (4,232) (4,306)
Interest rate swaps – (1) – 10
Total net debt (2,335) (2,438) (2,101) (2,162)
Fixed asset equity investments 125 129 133 133
Current asset equity investments 161 232 185 531
Other debtors due after 1 year 308 308 329 329
Other creditors due after 1 year (206) (206) (110) (110)
Provisions (224) (224) (105) (105)
Other foreign exchange derivatives 133 133 (6) 1
Equity collar – 78 – –
Auction rate preference stock (248) (248) (276) (276)
Flexible auction market preferred stock (311) (316) (345) (355)
Total non-equity minority interests (559) (564) (621) (631)
Total financial assets and liabilities (2,597) (2,552) (2,296) (2,014)
Total financial assets 3,035 3,196 2,778 3,138
Total financial liabilities (5,632) (5,748) (5,074) (5,152)
Where appropriate currency and interest rate swaps have been presented alongside the underlying principal instrument. The carrying
amounts of these instruments have been adjusted for the effect of the currency and interest rate swaps acting as hedges.
The difference between the carrying amount and the fair value of equity (fixed and current assets) and liquid investments represents gross
unrealised gains of £75 million and £8 million, respectively.