Telstra 2009 Annual Report Download - page 156

Telstra Corporation Limited and controlled entities
141
Notes to the Financial Statements (continued)
(c) Net position on a contractual face value basis
The amounts disclosed in Table F represent the net contractual face
values of our financial assets and financial liabilities on a post hedge
basis. The objective of this table is to represent our economic residual
position after netting offsetting risks of our derivative and non-
derivative financial instruments in a hedge relationship.
Accordingly, consistent with our policy to swap foreign currency
borrowings into Australian dollars, only our Australian dollar end
positions are included in the table below, except for a small
proportion of foreign currency borrowings / cross currency swaps used
to hedge translation foreign exchange risk associated with our
offshore investments and some cash balances / finance leases held in
foreign currencies by our foreign controlled entities. These foreign
currency amounts are reported in Australian dollars based on the
applicable exchange rate as at 30 June.
Total net debt in Table F agrees to the face value of our financial assets
and financial liabilities included in net debt in Table C and Table D.
The face values of our financial instruments in a hedge relationship
included in the table below represents the end hedge position as
described in our hedge relationships in note 18. The face values differ
from the statement of financial position carrying amounts. The
carrying amounts reflect a part of our borrowing portfolio at fair
value with the remaining part at amortised cost, whereas the face
values represent the undiscounted contractual liability at maturity
date.
(i) Used to hedge net foreign investments.
17. Capital management, financial assets and financial liabilities (continued)
Table F Telstra Group Telstra Entity
As at 30 June As at 30 June
Face values Face values
2009 2008 2009 2008
Currency $m $m $m $m
Interest bearing financial assets included in net debt
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . Floating Australian dollar 970 527 953 482
Cash and cash equivalents held in foreign currencies . . . . . Floating Various 334 312 --
Bank deposits with maturity greater than 90 days. . . . . . . Floating Chinese renminbi 16 20 --
Forward contract asset. . . . . . . . . . . . . . . . . . . . . Floating Australian dollar 940 421 940 421
2,260 1,280 1,893 903
Interest bearing financial liabilities included in net debt
Cross currency & interest rate swap payable . . . . . . . . . . Fixed Australian dollar (6,020) (5,672) (6,020) (5,672)
Cross currency swap payable . . . . . . . . . . . . . . . . . . . . Floating Australian dollar (5,467) (4,930) (5,467) (4,930)
Cross currency swap payable (i) . . . . . . . . . . . . . . . . . . Floating Hong Kong dollar (668) (559) (668) (559)
Promissory notes . . . . . . . . . . . . . . . . . . . . . . . . . . . Floating Australian dollar -(207) -(207)
Finance lease payable . . . . . . . . . . . . . . . . . . . . . . . . Fixed Australian dollar (77) (90) (77) (90)
Finance lease payable . . . . . . . . . . . . . . . . . . . . . . . . Fixed Foreign (51) (55) --
Loans from wholly owned controlled entities. . . . . . . . . . Floating Foreign --(221) (176)
Loans from wholly owned controlled entities. . . . . . . . . . Floating Australian dollar --(8) (8)
Telstra bonds and domestic loans . . . . . . . . . . . . . . . . . Floating Australian dollar (2,785) (1,500) (2,785) (1,500)
Telstra bonds and domestic loans . . . . . . . . . . . . . . . . . Fixed Australian dollar (1,749) (2,249) (1,749) (2,249)
Forward contract liability . . . . . . . . . . . . . . . . . . . . . . Floating Australian dollar (1,049) (1,400) (1,049) (1,400)
Offshore loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Floating Australian dollar (272) -(272) -
Offshore loans (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed New Zealand dollar (205) (158) (205) (158)
Promissory notes (i) . . . . . . . . . . . . . . . . . . . . . . . . . . Floating New Zealand dollar (287) (328) (287) (328)
(18,630) (17,148) (18,808) (17,277)
Net interest bearing debt . . . . . . . . . . . . . . . . . . . . . . (16,370) (15,868) (16,915) (16,374)
Non-interest bearing cash included in net debt. . . . . . . . . Various 84 60 70 60
Net debt - based on contractual face values . . . . . . . . . . (16,286) (15,808) (16,845) (16,314)