BT 2007 Annual Report Download - page 109

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17. LOANS AND OTHER BORROWINGS continued
The interest rates payable on loans and borrowings disclosed above reflect the coupons on underlying issued loans and borrowings
and not the interest rates achieved through applying associated currency and interest rate swaps in hedge arrangements.
The carrying values disclosed above for the current year reflect balances at amortised cost adjusted for deferred and current fair
value adjustments to the relevant loans or borrowings’ hedged risk in a fair value hedge. This does not reflect the final principal
repayment that will arise after taking account of the relevant derivatives in hedging relationships which is reflected in the table
below. Apart from finance leases all borrowings as at 31 March 2007 and 2006 are unsecured.
2007 2006
Carrying
amount
£m
Effect of hedging
and interesta
£m
Principal
repayments
at hedged rates
£m
Carrying
amount
£m
Effect of hedging
and interesta
£m
Principal
repayments
at hedged rates
£m
Repayments fall due as follows:
Within one year, or on demand 2,203 (132) 2,071 1,940 (190) 1,750
Between one and two years 330 1 331 1,182 (3) 1,179
Between two and three years 340 21 361 337 – 337
Between three and four years 2,250 271 2,521 369 8 377
Between four and five years 12 – 12 2,467 55 2,522
After five years 3,454 242 3,696 3,628 63 3,691
Total due for repayment after more than one
year 6,386 535 6,921 7,983 123 8,106
Total repayments 8,589 403 8,992 9,923 (67) 9,856
Fair value adjustments for hedged risk 112
Total loans and other borrowings 8,590 9,935
aAdjustment for hedging and interest reflects the impact of the currency element of derivatives and adjusts the repayments to exclude interest recognised in the carrying amount.
Minimum lease payments
Repayment of outstanding
lease obligations
2007 2006 2007 2006
£m £m £m £m
Amounts payable under finance leases:
Within one year 329 361 303 318
In the second to fifth years inclusive 123 391 56 316
After five years 415 430 208 211
867 1,182 567 845
Less: future finance charges (300) (337) ––
Total finance lease obligations 567 845 567 845
The group’s obligations under finance leases are secured by the lessors’ title to the leased assets.
18. DERIVATIVE FINANCIAL INSTRUMENTS
2007 2006
Assets
£m
Liabilities
£m
Assets
£m
Liabilities
£m
Interest rate swaps – cash flow hedge 15 234 – 405
Other interest rate swaps 11 240 49 304
Cross currency swaps – cash flow hedge 10 755 20 417
Cross currency swaps – fair value hedge –7812 16
Forward foreign exchange contracts – cash flow hedge 16 3 75
Other forward foreign exchange contracts –––3
Embedded derivatives – options –––2
52 1,310 88 1,152
Analysed as:
Current 27 318 69 332
Non current 25 992 19 820
52 1,310 88 1,152
Details of hedges in which the derivative financial instruments are utilised are disclosed in note 33.
Consolidated financial statements Notes to the consolidated financial statements
108 BT Group plc Annual Report & Form 20-F