BT 2014 Annual Report Download - page 170

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167
Financial statements
Financial statements
24. Loans and other borrowings continued
Obligations under nance leases are analysed as follows
At 31 March
2014 2013 2014 2013
Minimum lease payments
Repayment of
outstanding
lease obligations
£m £m £m £m
Amounts payable under nance leases
Within one year 31 23 14 7
In the second to fth years inclusive 111 109 51 47
After ve years 307 342 199 218
449 474 264 272
Less future nance charges (185) (202) – –
Total Ƭnance lease obligations 264 272 264 272
Assets held under nance leases mainly consist of buildings and network assets. The group’s obligations under nance leases are secured by the
lessors’ title to the leased assets.
25. Finance expense
Year ended 31 March
2014
£m
2013
£m
2012
£m
Finance expense
Interest on
– Financial liabilities at amortised cost 560 623 644
– Finance leases 16 19 18
– Derivatives 13 5 16
Fair value movements
– Bonds designated as hedged items in fair value hedges (47) 31 81
– Derivatives designated as hedging instruments in fair value hedges 47 (31) (81)
– Derivatives not in a designated hedge relationship (2) 6 13
Reclassication of cash ow hedge from other comprehensive income 9 12 5
Unwinding of discount on provisions 865
Finance expense 604 671 701
Less interest capitalised at weighted average rate of 6.1% (2012/13 6.1%, 2011/12 7.3%) (1) (5) (9)
Total Ƭnance expense before speciƬc items 603 666 692
Specic items (note 8)a235 119 98
Total Ƭnance expensea838 785 790
a Restated. See note 1.
Reconciliation of net nance expense to net interest cash outow
Net interest cash outow of £608m (2012/13 £692m, 2011/12 £685m) is £17m higher (2012/13 £39m, 2011/12 £4m) than the net
nance expense in the income statement. This is mostly due to certain interest cash outows and inows being spread over a number of years in
the income statement.
Year ended 31 March
2014
£m
2013
£m
2012
£m
Net nance expense 591 653 681
Timing dierences
Derivative restructuring costs 14 16 (4)
Timing of coupon payments on bonds (5) 15 –
Deferred income 888
Net interest cash outƮow 608 692 685