Tesco 2000 Annual Report Download - page 34

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TESCO PLC
32
notes to the financial statementscontinued
NOTE 19 Net debt
Group Company
2000 1999 2000 1999
£m £m £m £m
Due within one year: Bank and other loans 832 811 1,327 1,341
Finance leases 15 19 – –
Due within one to two years: Bank and other loans 266 137 127 127
Finance leases 13 4 – –
Due within two to five years: Bank and other loans 272 477 272 465
Finance leases 11 4 – –
Due wholly or in part by instalments after five years:
Finance leases 27 – – –
Due otherwise than by instalments after five years:
Bank and other loans 970 596 1,093 596
Gross debt 2,406 2,048 2,819 2,529
Less: Cash at bank and in hand 88 127 – –
Money market investments and deposits 258 201 21 2
Net debt 2,060 1,720 2,798 2,527
NOTE 20 Financial instruments
An explanation of the objectives and policies for holding and issuing financial instruments is set out in the Operating and Financial Review on
pages 2 to 6. Other than where these items have been included in the currency risk disclosures, short-term debtors and creditors have been
excluded from the following analyses.
Analysis of interest rate exposure and currency of financial liabilities
The interest rate exposure and currency profile of the financial liabilities of the Group at 26 February 2000 after taking into account the
effect of interest rate and currency swaps were:
Floating rate Fixed rate 2000 Floating rate Fixed rate 1999
liabilities liabilities Total liabilities liabilities Total
£m £m £m £m £m £m
Currency
Sterling 1,186 512 1,698 1,172 487 1,659
Euro 104 147 251 16 162 178
Thai baht 235 – 235 190 – 190
Other 222 – 222 21 – 21
Gross liabilities 1,747 659 2,406 1,399 649 2,048
Fixed rate financial liabilities
2000 1999
Weighted Weighted Weighted Weighted
average average time average average time
interest rate for which rate interest rate for which rate
26 Feb 2000 is fixed 27 Feb 1999 is fixed
% Years % Years
Currency
Sterling 6.7 15 9.0 6
Euro 5.8 3 5.9 4
Weighted average 6.7 12 8.2 5
Floating rate liabilities bear interest at rates based on relevant national LIBOR equivalents. Borrowing facilities are shown in the Operating and
Financial Review on pages 2 to 6. The interest rate profile of the Group has been further managed by the purchase of interest rate caps with
an aggregate notional principal of £100m (1999 – £100m), an average strike price of 8.3% and a two year maturity. The current value of these
contracts, if realised, is nil (1999 – nil).