BT 2009 Annual Report Download - page 100

ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
98 BT GROUP PLC ANNUAL REPORT & FORM 20-F
5. Finance expense and finance income 2009 2008 2007
£m £m £m
Finance expense
Interest on listed bonds, debentures and notesa,b 777 629 623
Interest on finance leasesa25 31 44
Interest on other borrowingsa130 159 58
Unwinding of discount on provisionsa333
Fair value loss on derivatives not in a designated hedge relationshipe29 41 4
Interest on pension scheme liabilities 2,308 2,028 1,872
Total finance expensec,d 3,272 2,891 2,604
aCalculated using the effective interest method unless otherwise stated below.
bIncludes a net charge of £25m (2008: £77m, 2007: £67m) relating to fair value movements on derivatives recycled from the cash flow reserve.
cIncludes a net charge of £39m (2008: net credit of £6m, 2007: net credit of £70m) relating to fair value movements arising on hedged items and a net credit of £39m (2008: net charge of £6m, 2007: net
charge of £70m) relating to fair value movements arising on derivatives designated as fair value hedges.
dIncludes a net charge of £2,161m (2008: net charge of £373m, 2007: net credit of £420m) relating to foreign exchange movements on loans and borrowings and a net credit of £2,161m (2008: net credit
of £373m, 2007: net charge of £420m) relating to fair value movements on derivatives recycled from the cash flow reserve. The items generating this foreign exchange are in designated hedge
relationships.
eIncludes a loss of £nil (2008: £2m, 2007: £nil) recycled from the cash flow reserve arising on de-designation of derivatives from a hedge relationship.
2009 2008 2007
£m £m £m
Finance income
Income from listed investments
Net gain on held for trading investments – – 6
Interest on available-for-sale investments – – 1
Other interest and similar income
Interest on held for trading investments – – 39
Interest on available-for-sale investments 14 25 16
Interest on loans and receivables 17 40 17
Other interest and similar incomea– – 139
Expected return on pension scheme assets 2,621 2,448 2,292
Total finance incomeb2,652 2,513 2,510
Net finance expense 620 378 94
a2007 includes £139m relating to interest on settlement of open tax matters disclosed as a specific item (see note 4).
bIncludes a net charge of £nil (2008: £nil, 2007: £123m) relating to foreign exchange movements on investments and a net credit of £nil (2008: £nil, 2007: £123m) relating to fair value movements on
derivatives recycled from the cash flow reserve. The items generating this foreign exchange are in designated hedge relationships.
6. Dividends
2009 2008 2007
pence pence pence
per share £m per share £m per share £m
Final dividend paid in respect of the prior year 10.40 804 10.00 810 7.60 631
Interim dividend paid in respect of the current year 5.40 418 5.40 431 5.10 422
15.80 1,222 15.40 1,241 12.70 1,053
The directors are proposing that a final dividend in respect of the year ended 31 March 2009 of 1.1p per share will be paid to shareholders
on 7 September 2009, taking the full year proposed dividend in respect of the 2009 financial year to 6.5p (2008:
15.8p, 2007: 15.1p). This dividend is subject to approval by shareholders at the Annual General Meeting and therefore the liability of
approximately £85m (2008: £805m) has not been included in these financial statements. The proposed dividend will be payable to all
shareholders on the Register of Members on 14 August 2009.
FINANCIAL STATEMENTS