SAPPI LIMITED

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2010
4.3 Other operating expenses (income)
2010 2009
(US$ million)
2008
Included in other operating expenses are the following:
Asset (impairment reversals) impairments ............
Profit on sale and write-off of property, plant and
(10) 79 119
equipment .................................
Restructuring provisions raised (released) and closure
(5) (1) (5)
costs ..................................... 46 34 41
Alternative Fuel Mixture Credits .................... (51) (87) —
BEE Transaction Charge (refer to note 28) ............ 23 — —
—Unwinding of the 2006 BEE Transaction ............
—IFRS 2 costs on management and employee share
19 — —
option plans ................................ 4 — —
5. NET FINANCE COSTS
2010 2009
(US$ million)
2008
Gross interest and other finance costs on liabilities carried
at amortized cost ............................ 309 198 181
—Interest on bank overdrafts ...................... 1 6 4
—Interest on redeemable bonds and other loans ....... 303 190 174
—Interest cost on finance lease obligations ...........
Finance revenue received on assets carried at amortized
5 2 3
cost ...................................... (16) (61) (38)
—Interest on bank accounts ......................
—Discount on early redemption of redeemable bonds and
(6) (16) (22)
other loans ................................. (5) (41) —
—Interest revenue on other loans and investments ...... (5) (4) (16)
Interest capitalized to property, plant and equipment ..... — — (16)
Net foreign exchange gains ....................... (17) (17) (8)
Net fair value (gain) loss on financial instruments ....... (21) 25 7
—Realized loss on termination of interest rate swaps .... — 18 —
—(Gain) loss on non hedged swaps and loans ......... — (2) 2
—Amortization of (gain) cost of de-designated hedges . . .
—Hedge ineffectiveness
(21) — 5
—gain on hedging instrument (derivative) ........... — (41) (30)
—loss on hedged item ........................ — 50 30
255 145 126
F-29