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84 Vodafone Group Plc Annual Report 2006
Notes to the Consolidated Financial Statements
continued
5. Investment income and financing costs 2006 2005
£m £m
Investment income
Available-for-sale investments:
Dividends received 41 19
Loans and receivables 153 201
Fair value adjustments recognised in the income statement:
Derivatives - foreign exchange contracts and interest rate futures 159 74
353 294
Financing costs
Items in hedge relationships:
Other loans 510 472
Interest rate swaps (118) (198)
Dividends on redeemable preference shares 48 –
Fair value hedging instrument 213 231
Fair value of hedged item (186) (213)
Other financial liabilities held at amortised cost:
Bank loans and overdrafts 126 129
Other loans 78 68
Dividends on redeemable preference shares –46
Potential interest charge on settlement of tax issues 329 245
Fair value adjustments recognised in the income statement:
Derivatives - forward starting swaps (48) 25
Equity put rights and similar arrangements(1) 161 67
Finance leases 78
1,120 880
Net financing costs 767 586
Note:
(1) The fair value adjustments for equity put rights and similar arrangements relates to the Group’s arrangements with Telecom Egypt and it’s minority partners in the Group’s other operations in Germany. Further information is provided in “Options
agreements and similar arrangements” on page 42.