Registration Document - Pernod Ricard

4 Notes
90
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS
to the annual consolidated fi nancial statements
NOTE 6 Interest (expense) income
In euro million 30.06.2008 30.06.2009
Net financing costs (316) (581)
Structuring and placement fees (11) (15)
Net financial impact of pensions and other long-term employee benefits 3 (19)
Other net current financial income (expense ) (9) (4)
Interest income (expenses) from recurring operations (333) (619)
Foreign c urrency gains (loss) (15) (22)
Other non-current financial income (expense ) (1) (50)
TOTAL INTEREST (EXPENSE) INCOME (349) (691)
At 30 June 2009, the main items making up net financing costs were
financial expenses on the syndicated loan of €322 million, bond
payments of €115 million, commercial paper payments of €6 million,
interest rate and currency hedges of €127 million and local debt
totalling €30 million. Net financing costs also include €19 million of
interest income.
At 30 June 2009, other non-current financial income (expense )
includes bank fees and changes in the time value of options.
PERNOD RICARD
Weighted average cost of debt
NOTE 7 Other operating income and expenses
Other operating income and expenses are broken down as follows:
The Group’s weighted average cost of debt was 4.8% at 30 June 2009
compared with 5.1% at 30 June 2008. Weighted average cost of debt is
defined as net financing costs plus structuring and placement fees as
a proportion of average net debt outstanding.
In euro million 30.06.2008 30.06.2009
Net restructuring expenses (26) (103)
Capital gains (losses) on asset disposals 4 225
Impairment of property, plant and equipment and intangible assets - (147)
Other non-current income and expenses (58) (65)
OTHER OPERATING INCOME AND EXPENSES (81) (89)
At 30 June 2009, other operating income and expenses included:
◆ restructuring expenses: these mainly related to the reorganisations
launched after the acquisition of V&S;
◆ net gains on disposal: these mainly related to the profit from the
sale of the Wild Turkey brand for $581 million;
◆ impairment of property, plant and equipment and intangible assets,
notably impairment tests on the value of brands (particularly some
Spanish wines);
other
◆ operating income and expenses including the costs of early
termination of the V&S distribution agreements. Also, as part
of the V&S acquisition, inventories of finished goods acquired
were restated at fair value with a non-recurrent impact booked
under other operating income and expenses at 30 June 2009, the
inventories being considered as sold as of this date.
I REFERENCE DOCUMENT 2008/2009 I