Annual Report and Accounts 2006 - DCC plc

80 notes to the financial statements12. Finance costs and finance revenue2006 2005€’000 €’000Finance costsOn bank loans, overdrafts and Unsecured Notes due 2008 to 2016- repayable within 5 years, not by instalments (11,144) (10,585)- repayable within 5 years, by instalments (35) -- repayable wholly or partly in more than 5 years (7,618) (7,113)On loan notes- repayable within 5 years, not by instalments (16) (30)On finance leases (845) (1,122)Other interest (242) (494)(19,900) (19,344)Other finance costs:Interest on defined benefit pension scheme liabilities (3,804) (3,940)Unwinding of discount applicable to deferred acquisition consideration (298) -Net foreign exchange transaction gains 297 -Mark-to-market of swaps and related debt- interest rate swaps designated as fair value hedges* (3,644) -- cross currency interest rate swaps designated as fair value hedges* 3,786 -- adjusted hedged fixed rate debt* (10,996) -- currency swaps not designated as hedges 11,569 -- interest rate swaps not designated as hedges 43 -(22,947) (23,284)Finance revenueInterest on cash and term deposits 12,381 14,064Other interest and similar income receivable 46 9Expected return on defined benefit pension scheme assets 3,479 3,51715,906 17,590Net finance cost before exceptional item (7,041) (5,694)Net finance cost - exceptional item (note 11) (1,145) (4,809)* The Group has adopted fair value hedge accounting under IAS 39 (note 29) in relation to fixed rate debt and relatedinterest rate and cross currency interest rate swaps.13. Foreign currencyThe exchange rates used in translating sterling Balance Sheets and Income Statement amounts were as follows:2006 2005€1=Stg£ €1=Stg£Balance Sheet (closing rate) 0.697 0.689Income Statement (average rate)* 0.682 0.672* The average exchange rate for the year ended 31 March 2005 has been adjusted for the impact of forward foreignexchange contracts used to hedge sterling profits for that year.