BT 2009 Annual Report Download - page 117

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ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
115BT GROUP PLC ANNUAL REPORT & FORM 20-F
FINANCIAL STATEMENTS
23. Share capital
Number Share capitalaShare premiumb
of shares £m £m
At 1 April 2007 8,640,654,852 432 31
Arising on share issues 10,572,177 1 31
Cancelledc(250,000,000) (13) –
At 1 April 2008 8,401,227,029 420 62
Cancelledc(250,000,000) (12) –
At 31 March 2009 8,151,227,029 408 62
aThe authorised share capital of the company throughout 2009 and 2008 was £13,463m, representing 269,260,253,468 ordinary shares of 5p each. The allotted, called up and fully paid ordinary share
capital of the company at 31 March 2009 was £408m (2008: £420m), representing 8,151,227,029 (2008: 8,401,227,029) ordinary shares of 5p each. Of the authorised but unissued share capital at 31
March 2009, nil ordinary shares (2008: 21m) were reserved to meet options granted under employee share option schemes.
bThe share premium account, representing the premium on allotment of shares, is not available for distribution. The movement in share premium arose, in 2008, from shares issued in consideration for the
acquisition of Net 2S SA (a company which changed its name to BT Services SA on 1 April 2009), and from the excess of proceeds received on the exercise of share options versus the cost of treasury shares
issued to satisfy those exercises.
cIn 2009, the group cancelled 250,000,000 treasury shares (2008: 250,000,000) with a nominal value of £12m (2008: £13m).
24. Other reserves
Treasury Cash flow Available-for- Translation Merger Total other
sharesareservebsale reservecreservedreserveereserves
£m £m £m £m £m £m
At 1 April 2006 (600) (78) – 44 998 364
Exchange differences – – – (93) – (93)
Net purchase of treasury shares (284) ––––(284)
Net fair value loss on cash flow hedges – (201) – – – (201)
Recognised in income and expense in the year – 364–––364
Tax on items taken directly to equity – (62) – – – (62)
At 1 April 2007 (884) 23 – (49) 998 88
Exchange differences – – – 210 – 210
Net purchase of treasury shares (1,529) ––––(1,529)
Cancellation of treasury shares 570––––570
Net fair value gain on cash flow hedges – 446–––446
Recognised in income and expense in the year – (294) – – – (294)
Reclassified and reported in non current assets – 11–––11
Tax on items taken directly to equity – (29) – – – (29)
At 1 April 2008 (1,843) 157 – 161 998 (527)
Exchange differences – – – 683 – 683
Net purchase of treasury shares (63) ––––(63)
Cancellation of treasury shares 797––––797
Net fair value gain on cash flow hedges – 2,719–––2,719
Recognised in income and expense in the year – (2,144) – – – (2,144)
Reclassified and reported in non current assets – (5) – – – (5)
Gains on available-for-sale investments – – 5 – – 5
Tax on items taken directly to equity – (164) – – – (164)
At 31 March 2009 (1,109) 563 5 844 998 1,301
aThe treasury shares reserve is used to hold BT Group plc shares purchased by the group. During 2009, the company repurchased 142,608,225 (2008: 539,657,691, 2007: 147,550,000) of its own shares of
5p each, representing 2% (2008: 6%, 2007: 2%) of the called-up share capital, for consideration (including transaction costs) of £189m (2008: £1,626m, 2007: £404m). In addition, 90,626,518 shares
(2008: 53,250,144, 2007: 66,719,600) were issued from treasury to satisfy obligations under employee share schemes and executive share awards at a cost of £126m (2008: £97m, 2007: £120m), and
250,000,000 treasury shares (2008: 250,000,000, 2007: nil) were cancelled at a cost of £797m (2008: £570m, 2007: £nil). At 31 March 2009, 409,226,885 shares (2008: 607,285,178, 2007:
290,047,231) with an aggregate nominal value of £20m (2008: £30m, 2007: £19m) were held as treasury shares at cost.
bThe cash flow reserve is used to record the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
cThe available-for-sale reserve is used to record the cumulative fair value gains and losses on available-for-sale financial assets. The cumulative gains and losses are recycled to the income statement on
disposal of the assets. The gross gain in the year amounted to £5m (2008 and 2007: £nil).
dThe translation reserve is used to record cumulative translation differences on the assets and liabilities of foreign operations. The cumulative translation differences are recycled to the income statement on
disposal of the foreign operation.
eThe merger reserve arose on the group reorganisation that occurred in November 2001 and represents the difference between the nominal value of shares in the new parent company, BT Group plc, and the
aggregate of the share capital, share premium account and capital redemption reserve of the prior parent company, British Telecommunications plc.