Annual report 2010 - Imperial Tobacco Group

Notes to the Financial Statements continued16 Borrowings and Derivative Financial Instruments continuedStrategy Performance Governance FinancialsThe impact of interest rate swaps and cross currency swaps to manage the resultant interest rate risk arising is shown insection (iv) below.The currency denomination, maturities (defined as the remaining period at the balance sheet date to the contractualmaturity date) and weighted average interest rates of the Group’s financial assets and liabilities (excluding derivatives)at 30 September 2009 are as follows:Less than1 yearBetween1 and 2 yearsMaturityBetween2 and 5 yearsMore than5 yearsTotal£mWeightedaverage%£m % £m % £m % £m %Assets/(liabilities) (beforethe impact of crosscurrency swaps andinterest rate swaps)Cash and cashequivalentsSterling 253 0.3 – – – – – – 253 0.3Euro 345 3.1 – – – – – – 345 3.1US dollars 15 0.2 – – – – – – 15 0.2Other 423 3.7 – – – – – – 423 3.7Total cash andcash equivalents 1,036 – – – 1,036Weighted averagereceivable interest rate 2.6 – – – 2.6Trade receivablesSterling 512 – – – – – – – 512 –Euro 1,920 – – – – – – – 1,920 –US dollars 126 – – – – – – – 126 –Other 172 – – – – – – – 172 –Total trade receivables 2,730 – – – 2,730Trade payablesSterling (48) – – – – – – – (48) –Euro (996) – – – – – – – (996) –US dollars (110) – – – – – – – (110) –Other (93) – – – – – – – (93) –Total trade payables (1,247) – – – (1,247)Borrowings –by currencySterling – – – – (357) 6.8 (2,867) 7.8 (3,224) 7.7Euro (1,237) 1.3 – – (4,381) 4.4 (1,871) 7.0 (7,489) 4.5US dollars (1,222) 1.1 (29) 2.9 – – – – (1,251) 1.1Other (101) 4.8 (2) 4.8 – – – – (103) 4.8Total borrowings (2,560) (31) (4,738) (4,738) (12,067)Borrowings – by classof instrumentBank borrowings (2,560) 1.3 (31) 3.0 (926) 1.3 – – (3,517) 1.4Capital market issuance – – – – (3,812) 5.4 (4,738) 7.5 (8,550) 6.5Total borrowings (2,560) (31) (4,738) (4,738) (12,067)Weighted averagepayable interest rate 1.3 3.0 4.6 7.5 5.0The effective interest rates shown in the table above have been calculated excluding the accrued interest balances.The bank borrowings are floating rate liabilities. The majority bear interest at rates set in advance by reference to LIBOR inthe case of sterling and US dollars and to EURIBOR in the case of euro borrowings. The capital market issuances in placeat 30 September 2009 bear interest (pre interest rate swaps) at a fixed rate throughout their life.The impact of interest rate swaps and cross currency swaps to manage the resultant interest rate risk arising is shown insection (iv) below.130