Aviva 2002 Annual Report Download - page 96

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Notes to the accounts continued
41 – Provisions for other risks and charges
Movements in provisions for other risks and charges were:
Restated
Pensions and Deferred tax Restated
similar obligations (note 14e) Other Total
£m £m £m £m
At 1 January 2002, as restated 70 1,309 183 1,562
Foreign exchange rate movements on opening provisions 37616
Movement during the year:
Additional provisions made in the year 172
Amounts utilised (46)
Amounts released unutilised (21)
Total movement (6) (851) 105 (752)
At 31 December 2002 67 465 294 826
“Other” provisions comprise many small provisions throughout the Group for obligations such as the costs of compensation, litigation,
staff entitlements and reorganisation.
42 – Debenture loans, amounts due to credit institutions and commercial paper
(a) The analysis by business segment is:
Amounts owed to
Debenture loans credit institutions Commercial paper Total
2002 2001 2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m £m £m
Long-term business –51 85 –––85 51
General business ––11 11 ––11 11
Other 431 785 169 180 1,453 1,686 2,053 2,651
Non-long-term business 431 785 180 191 1,453 1,686 2,064 2,662
431 836 265 191 1,453 1,686 2,149 2,713
“Other” comprises borrowings by holding companies within the Group which are not allocated to operating companies. The amounts
shown above are net of related derivative contracts.
(b) Debenture loans comprise:
Long-term business Other
2002 2001 2002 2001
£m £m £m £m
9.5% guaranteed bonds 2016 ––157 145
11.9% C$24 million mortgage 2005 ––68
8.625% guaranteed bonds 2005 ––155 145
1.5% FF2.8 billion exchangeable bonds 2003 –––281
10.75% guaranteed bonds 2002 –––100
2.5% subordinated perpetual loan notes ––113 106
Institutional borrowings (average rate 5%) –51 ––
–51 431 785
Repayable as follows:
One year or less –1–100
Between one and two years –6–281
Between two and five years –44 161 153
After five years ––270 251
–51 431 785
The interest charge for the year on the above loans was: –241 56
The 9.5% and the 8.625% guaranteed bonds were issued at a discount of £1.1 million and £0.2 million respectively. These amounts,
together with the issue expenses, are being amortised over the full term of the bonds. Although these bonds were issued in sterling, the
loans have been converted into euro liabilities through the use of financial instruments in a subsidiary undertaking.
82 Aviva plc
Annual report + accounts 2002