Barclays 2010 Annual Report Download - page 236

Notes to the financial statements
For the year ended 31st December 2010 continued
29 Ordinary shares, share premium, and other equity
Called up share capital, allotted and fully paid Number of
shares
m
Ordinary
shares
£m
Share
premium
£m
Total
£m
As at 1st January 2010 11,412 2,853 7,951 10,804
Issued to staff under share incentive plans 12 2 33 35
Issue of new ordinary shares 758 190 1,310 1,500
As at 31st December 2010 12,182 3,045 9,294 12,339
As at 1st January 2009 8,372 2,0934,045 6,138
Issued to staff under share incentive plans 19 5 30 35
Issue of new ordinary shares 379 94 655 749
Conversion of Mandatorily Convertible Notes 2,642 661 3,221 3,882
As at 31st December 2009 11,412 2,853 7,951 10,804
Warrants
On 31st October 2008, Barclays PLC issued warrants to subscribe for up to 1,516.9 million new ordinary shares at a price of £1.97775, in conjunction
with a simultaneous issue by Barclays Bank PLC of Reserve Capital Instruments. A total of 758.4 million (2009: 379.2 million) of these warrants were
exercised during the year, resulting in a credit to share capital of £190m (2009: £94m) and to the share premium account of £1,310m (2009: £655m).
As at 31st December 2010 there were unexercised warrants to subscribe for 379.2 million shares (2009: 1,137.7 million).
Conversion of Mandatorily Convertible Notes
The Mandatorily Convertible Notes (MCNs), issued by Barclays Bank PLC on 27th November 2008, were converted into 2,642 million ordinary shares
in Barclays PLC during 2009 at the conversion price of £1.53276. £661m was credited to share capital and the remaining £3,221m net of issuance costs
was credited to the share premium account.
Share repurchase
At the 2010 AGM on 30th April 2010, Barclays PLC was authorised to repurchase 1,203,988,028 of its ordinary shares of 25p. The authorisation is
effective until the AGM in 2011. No share repurchases were made during either 2010 or 2009.
30 Reserves
Available for sale reserve
The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition.
The available for sale reserve movement of £1,236m was driven by the decrease in the fair value of the Group’s investment in BlackRock, Inc. of £764m,
partially offset by increases in the fair value of other available for sale assets as markets recovered.
The movement also includes the net gains transferred to net profit on disposal that arose on the disposal of the structural hedge portfolio, sovereign
positions that were no longer eligible for liquidity purposes and excess Euro, US Dollar and Japanese Yen government securities.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the
income statement when the hedged transactions affect profit or loss.
Movements in the cash flow hedge reserve principally reflected increases in the fair value of interest rate swaps held for hedging purposes more than
offset by related gains transferred to net profit.
Currency translation reserve
The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group’s net investment in foreign operations, net
of the effects of hedging. Currency translation differences of £1,184m, including £442m associated with non-controlling interests, is largely due to the
appreciation in the Rand and US Dollar, offset by the depreciation in the Euro.
During the year, £279m of the currency translation reserve was recognised in the income statement, principally as a result of the restructuring of group
entities based in the US and repatriation of capital from overseas.
Other reserves and treasury shares
Other reserves represent the excess of the repurchase price over the nominal of redeemed ordinary and preference shares issues by the Group.
Treasury shares are deducted from shareholders’ equity within other reserves and treasury shares. A transfer is made to retained earnings in line with
the vesting of treasury shares held for the purposes of share based payments.
The treasury shares primarily relate to Barclays PLC shares held by employee benefit trusts in relation to the Group’s various share schemes. These schemes
are described in Note 39.
234 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10