Vodafone 2008 Annual Report Download - page 101

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5. Investment income and financing costs
2008 2007 2006
£m £m £m
Investment income:
Available-for-sale investments:
Dividends received 72 57 41
Other(1) − 86 −
Loans and receivables at amortised cost(2) 451 452 153
Fair value through the income statement (held for trading):
Derivatives – foreign exchange contracts 125 160 159
Other(3) 66 − −
Equity put rights and similar arrangements(5) − 34 −
714 789 353
Financing costs:
Items in hedge relationships:
Other loans 612 548 510
Interest rate swaps 61 (9) (118)
Dividends on redeemable preference shares 42 45 48
Fair value hedging instrument (635) 42 213
Fair value of hedged item 601 (47) (186)
Other financial liabilities held at amortised cost:
Bank loans and overdrafts 347 126 126
Other loans(4) 390 276 78
Potential interest charge on settlement of tax issues 399 406 329
Equity put rights and similar arrangements(5) 143 32 161
Finance leases 7 4 7
Fair value through the income statement (held for trading):
Derivatives – forward starting swaps and futures 47 71 (48)
Other(6) − 118 −
2,014 1,612 1,120
Net financing costs 1,300 823 767
Notes:
(1) Amount for 2007 includes a gain resulting from refinancing of SoftBank related investments received as part of the consideration for the disposal of Vodafone Japan on 27 April 2006.
(2) Amount for 2007 includes £77 million of foreign exchange gains arising from hedges of a net investment in a foreign operation.
(3) Includes foreign exchange gain on certain intercompany balances and investments held following the disposal of Vodafone Japan to SoftBank.
(4) Amount for 2008 includes £72 million of foreign exchange losses arising from hedges of a net investment in a foreign operation.
(5) Includes amounts in relation to the Group’s arrangements with its minority partners in India, its fixed line operations in Germany and, in respect of prior years, Telecom Egypt. Further information
is provided in “Option agreements and similar arrangements” on page 58.
(6) Amount for 2007 includes foreign exchange losses on certain intercompany balances and investments held following the disposal of Vodafone Japan to SoftBank.
Vodafone Group Plc Annual Report 2008 99