2009 Annual Report - CRH

8. Finance Costs and Finance Revenue
2009 2008
€m €m
Finance costs
Interest payable on bank loans and overdrafts repayable wholly within five years:
- by instalments 4 11
- not by instalments 223 275
Interest payable under finance leases and hire purchase contracts 1 2
Interest payable on other borrowings 149 123
Total interest payable 377 411
Unwinding of discount element of provisions for liabilities (note 26) 15 16
Unwinding of discount applicable to deferred and contingent acquisition consideration 4 5
Income on interest rate and currency swaps
Mark-to-market of derivatives and related fixed rate debt:
(77) (34)
- interest rate swaps (i) 133 (283)
- currency swaps and forward contracts 7 3
- fixed rate debt (i) (135) 287
Interest cost on defined benefit pension scheme liabilities 95 98
Total finance costs 419 503
Finance revenue
Interest receivable on loans to joint ventures and associates (3) (4)
Interest receivable on liquid investments (4) (8)
Interest receivable on cash and cash equivalents (28) (35)
(35) (47)
Expected return on defined benefit pension scheme assets (87) (113)
Total finance revenue (122) (160)
Finance costs (net) 297 343
(i) The Group uses interest rate swaps to convert fixed rate debt to floating rate. Fixed rate debt, which has been converted to floating rate through the use of interest
rate swaps, is stated in the Consolidated Balance Sheet at adjusted fair value to reflect movements in underlying fixed rates. The movement on this adjustment,
together with the offsetting movement in the fair value of the related interest rate swaps, is included in finance costs in each reporting period.
9. Group Share of Associates’ Profit after Tax
The Group’s share of associates’ profit after tax is equity-accounted and is presented as a single-line item in the Consolidated Income Statement. The Group’s share
of profit after tax generated by associates is analysed as follows between the principal Consolidated Income Statement captions:
2009 2008
€m €m
Group share of:
Revenue 1,029 1,006
Profit before finance costs 64 86
Finance costs (net) (5) (3)
Profit before tax 59 83
Income tax expense (11) (22)
Profit after tax 48 61
An analysis of the profit after tax by operating segment is presented in note 1. The aggregated balance sheet data (analysed between current and non-current assets
and liabilities) in respect of the Group’s investment in associates is presented in note 15.
CRH 81