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113
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
OUR BUSINESSOUR PERFORMANCEGOVERNANCEFINANCIAL STATEMENTS
21 FINANCIAL INSTRUMENTS CONTINUED
Financial risk management continued
(a) Liquidity & funding risk continued
The contractual maturity of the Group’s non-derivative fi nancial liabilities (excluding trade and other payables (see note 19) and derivatives
is as follows:
Bank loans
and
overdrafts
£m
Syndicated
bank facility
£m
Medium-
term
notes
£m
Finance
lease
liabilities
£m
Partnership
liability to
the Marks &
Spencer
UK pension
£m
Total
borrowings
and other
fi nancial
liabilities
£m
Derivative
assets1
£m
Derivative
liabilities1
£m
Total
derivative
assets and
liabilities
£m
Tim ing of c ash fl ows
Within one year (54.0) (224.9) (97.2) (2.5) (71.9) (450.5) 2,214.0 (2,092.4) 121.6
Between one and two years (0.1) – (97.2) (2.4) (71.9) (171.6) 238.3 (224.5) 13.8
Between two and fi ve years – – (985.2) (7.2) (215.6) (1,208.0) 414.0 (390.0) 24.0
More than fi ve years – – (1,310.3) (180.5) (215.6) (1,706.4) 459.6 (440.8) 18.8
(54.1) (224.9) (2,489.9) (192.6) (575.0) (3,536.5) 3,325.9 (3,147.7) 178.2
E ect of discounting – – 792.2 144.0 62.1 998.3
At 28 March 2015 (54.1) (224.9) (1,697.7) (48.6) (512.9) (2,538.2)
Tim ing of c ash fl ows
Within one year (92.2) (205.1) (98.6) (2.4) (71.9) (470.2) 2,020.2 (1,965.5) 54.7
Between one and two years – – (448.1) (2.6) (71.9) (522.6) 562.7 (526.0) 36.7
Between two and fi ve years ––(605.9)(7.1)(215.6)(828.6)61.4(41.2)20.2
More than fi ve years – – (1,329.3) (176.9) (143.7) (1,649.9) 465.6 (427.0) 38.6
(92.2) (205.1) (2,481.9) (189.0) (503.1) (3,471.3) 3,109.9 (2,959.7) 150.2
E ect of discounting – – 755.6 140.4 47.4 943.4
At 2 April 2016 (92.2) (205.1) (1,726.3) (48.6) (455.7) (2,527.9)
1. Derivative assets and derivative liabilities amounts represent the fair value as at the balance sheet date of the foreign exchange forward contracts and the forecast interest payments
on the swap contracts together with the fi nal exchange of notional at the end of the contracts. Such cash fl ows were translated into GBP using spot rates as of balance sheet date for the
cross currency interest rate swaps.
The present value of fi nance lease liabilities is as follows:
2016
£m
2015
£m
Within one year (0.4) (0.5)
Later than one year and not later than fi ve years (1.6) (1.0)
Later than fi ve years (46.6) (47.1)
Total (48.6) (48.6)
(b) Counterparty risk
Counterparty risk exists where the Group can su er fi nancial loss through default or non-performance by fi nancial institutions with whom it
transacts.
Exposures are managed in accordance with the Group treasury policy which limits the value that can be placed with each approved
counterparty to minimise the risk of loss. The minimum long-term rating for all counterparties is long-term Standard & Poor's (A-)/Moody’s
(A3) (BBB+ for committed lending banks). In the event of a rating by one agency being di erent to the other, reference will be made to Fitch
to determine the casting vote of the rating group. In the absence of a Fitch rating the lower rating will prevail. Limits are reviewed regularly by
senior management. The credit risk of these fi nancial instruments is estimated as the fair value of the assets resulting from the contracts.